College Ave vs SoFi: Private student loans compared
College Ave offers more flexibility for students needing customized terms and smaller loan amounts, while SoFi appeals to borrowers with strong credit seeking competitive rates and extensive member benefits. Families need to cover funding gaps without straining budgets, while students want manageable payments and favorable terms. This guide compares both lenders to help you choose the right financial path.
You’ll learn how these lenders compare on rates, terms, eligibility, and benefits—plus which borrower profiles each serves best. By the end, you’ll be able to: (1) compare College Ave and SoFi on rates, terms, and borrower benefits; (2) determine which lender fits your credit profile and borrowing needs; and (3) pre-qualify with both lenders without impacting your credit score.
Context: When private loans make sense (and what to compare)
Before comparing private lenders, it is crucial to understand where they fit in the broader financial aid landscape. Private student loans are designed to fill the gap between the cost of attendance and the financial aid you have already received. They should generally be considered only after you have exhausted all scholarships, grants, and federal student loan options.
Federal loans, such as Direct Subsidized and Unsubsidized Loans, typically offer lower fixed interest rates and more flexible repayment plans than private options. We recommend reading our guide to federal student loans and completing the FAFSA before applying for private credit. However, federal limits are often lower than the total cost of tuition and room and board, leaving families with a funding gap.
According to Betsy Mayotte, student loan expert, “In general, federal loans should be your first stop, but private loans can be appropriate when you’ve maxed out your federal eligibility.”
When comparing private lenders like College Ave and SoFi, the Annual Percentage Rate (APR) is often the deciding factor. Your specific rate is driven by credit score, income, debt-to-income ratio, and the strength of your cosigner. Since most undergraduate borrowers have limited credit history, securing a creditworthy cosigner is often necessary to qualify or receive competitive rates. Beyond the APR, you should compare repayment terms, fees, and borrower protections to ensure the loan aligns with your long-term financial goals.
College Ave vs SoFi at a glance: Quick comparison table
To help you make a quick assessment, we have compiled the key features of both lenders below. While both offer competitive products with no origination fees, their approach to repayment terms and borrower benefits differs significantly.
| Feature | College Ave | SoFi |
|---|---|---|
| APR Range (Fixed & Variable) | Competitive rates based on creditworthiness | Competitive rates; often lowest for excellent credit |
| Loan Amounts | $1,000 up to 100% of school-certified cost | $5,000 up to 100% of school-certified cost |
| Repayment Terms | 5, 8, 10, 15 years (highly customizable) | 5, 7, 10, 15 years |
| In-School Payments | Immediate, Interest-Only, Flat $25, or Deferment | Immediate, Interest-Only, Partial, or Deferment |
| Origination Fees | $0 | $0 |
| Late Fees | 5% of unpaid amount or $25 (whichever is less) | $0 (no late fees) |
| Autopay Discount | 0.25% rate reduction | 0.25% rate reduction |
| Cosigner Release | After half of original repayment term is paid | After 24 months of on-time principal + interest payments |
| Unique Benefits | Customizable terms; Multi-Year Peace of Mind | Unemployment protection; Career coaching; Member events |
Source: College Ave and SoFi official websites (as of January 2025). Rates and terms are subject to change.
As shown above, College Ave stands out for its lower minimum loan amount and highly flexible repayment terms, allowing borrowers to fine-tune their monthly budget. SoFi distinguishes itself with a lack of late fees and a faster path to cosigner release, appealing to those who prioritize long-term flexibility and member perks.
Interest rates: How College Ave and SoFi compare
The interest rate is the most significant factor in the total cost of your loan. Both College Ave and SoFi offer fixed and variable interest rate options. Understanding the difference between these types is essential for managing risk and predicting future costs.
- Fixed rates remain the same for the life of the loan, providing predictable monthly payments regardless of market changes.
- Variable rates may start lower than fixed rates but can fluctuate with the market (tied to an index like SOFR), potentially increasing your monthly payment significantly over time.
The advertised rates for both lenders represent a range. The lowest rates are reserved for borrowers (or cosigners) with excellent credit scores, stable income, and a strong financial history. If you or your cosigner have average credit, your offered rate will likely fall toward the middle or higher end of the spectrum.
College Ave is known for offering a wide variety of rate options depending on the repayment term you choose. Generally, shorter repayment terms come with lower interest rates. SoFi is highly competitive at the top end of the market; borrowers with excellent credit profiles often find SoFi’s rates to be among the lowest available. To know exactly where you stand, we recommend using the pre-qualification tools offered by both lenders, which allows you to check your potential rates without affecting your credit score.
Loan terms and repayment options
Choosing the right loan term and repayment plan affects both your monthly cash flow and the total amount of interest you will pay over the life of the loan. College Ave and SoFi offer distinct approaches to repayment flexibility.
According to College Ave’s official website, they provide exceptional customization with terms of 5, 8, 10, and 15 years, and in some cases, allow borrowers to select a specific number of years to dial in a precise monthly payment amount. This level of granularity is helpful for families trying to fit a loan payment into a strict monthly budget. Additionally, College Ave offers four in-school repayment options: full principal and interest payments (immediate), interest-only payments, a flat $25 monthly payment, or full deferment until after graduation.
As reported by SoFi, they offer standard terms of 5, 7, 10, and 15 years. While slightly less granular than College Ave, these terms cover the needs of most borrowers. SoFi also provides flexible in-school options, including deferment and interest-only payments. Both lenders typically offer a six-month grace period after graduation before full principal and interest payments are required.
- Longer terms (e.g., 15 years) lower your monthly payment but increase the total interest paid over the life of the loan.
- Shorter terms (e.g., 5 years) cost less overall but require higher monthly cash flow immediately.
- Making even small payments while in school reduces capitalization, saving you money in the long run.
Eligibility requirements and cosigner policies
Determining eligibility is the first hurdle in the application process. Both lenders require borrowers to be U.S. citizens or permanent residents (or have a cosigner who is) and meet specific credit and income criteria. However, the nuances of their requirements can make one a better fit than the other depending on your situation.
Most undergraduate students have thin credit files and limited income, making it difficult to qualify for private loans independently. Consequently, the vast majority of private undergraduate loans utilize a creditworthy cosigner. A cosigner with a strong credit score and low debt-to-income ratio can significantly improve your chances of approval and help secure a lower interest rate.
This is a critical feature for students who want to eventually take financial responsibility for the loan and relieve their parents or guardians of the obligation.
- SoFi: According to SoFi’s official website, borrowers can apply to release their cosigner after making 24 consecutive, on-time principal and interest payments, provided they meet credit and income requirements on their own.
- College Ave: As reported by College Ave, the path is longer—borrowers can apply for cosigner release after more than half of the original repayment term has elapsed. For example, on a 10-year loan, you would need to wait over 5 years to apply for release.
According to Mark Kantrowitz, financial aid expert, “Cosigner release is a valuable feature offered by some private lenders, rewarding responsible repayment.” If removing the cosigner quickly is a priority for your family, this policy difference is a major factor to consider.
Loan amounts and fees
Beyond interest rates, it is vital to understand borrowing limits and fee structures to calculate the true cost of the loan. Both College Ave and SoFi are “fee-friendly” lenders compared to some competitors and even federal Parent PLUS loans, which carry origination fees.
According to College Ave, they have a lower minimum borrowing amount of $1,000, making it an excellent choice for students who need to cover a small funding gap—such as books, a laptop, or a single semester’s remaining balance. As reported by SoFi, they typically require a minimum of $5,000, which is better suited for larger tuition gaps.
Both lenders allow you to borrow up to 100% of the school-certified cost of attendance, which includes tuition, fees, room and board, books, and transportation, minus other financial aid received.
As noted in the comparison table earlier, neither lender charges an origination fee. This is a significant advantage over federal Parent PLUS loans, which according to StudentAid.gov charge an origination fee of 4.228% as of January 2025. This means 100% of the money you borrow from College Ave or SoFi goes directly to your educational expenses.
According to SoFi’s official website, they take this a step further by charging no late fees and no insufficient fund fees, although interest will still accrue if payments are late. As reported by College Ave, they charge a late fee of 5% of the unpaid amount or $25, whichever is less, if a payment is missed. Neither lender charges a penalty for paying off your loan early.
Borrower benefits and unique perks
When rates are similar, borrower benefits can be the tie-breaker. College Ave focuses on the loan experience itself, while SoFi focuses on broader financial wellness and community.
According to College Ave’s official website, their primary benefit is the “Multi-Year Peace of Mind” policy—in many cases, roughly 90% of undergraduate borrowers are approved for future academic years if they were approved initially, simplifying the annual application process. Their platform also features robust calculator tools that clarify exactly how different terms and payment choices affect your total cost, empowering you to build a loan that fits your budget perfectly.
As reported by SoFi, they treat borrowers as “members,” unlocking access to a suite of benefits that extend beyond the loan. These include:
- Unemployment Protection: If you lose your job through no fault of your own, you may be eligible to temporarily pause payments while you look for work.
- Career Coaching: Members get access to personalized career advice and resume reviews.
- Financial Planning: Complimentary access to financial planners to help with budgeting and long-term goals.
- Member Events: Networking events and community gatherings.
If you value a transactional relationship where you simply want a flexible loan, College Ave excels. If you want a lender that acts as a partner in your early career and financial life, SoFi offers more value.
Application process and customer experience
Both lenders are fintech-forward, meaning their application processes are fully digital, streamlined, and fast. You can typically complete an application in under 15 minutes if you have your documentation ready.
The process for both lenders begins with a pre-qualification step. You (and your cosigner) provide basic information to see estimated rates. Crucially, this step involves a soft credit check, which does not impact your credit score. This allows you to shop around risk-free. Once you select a loan offer and proceed to the full application, a hard credit inquiry will occur.
SoFi offers support via phone, chat, and email, and their member-centric focus often translates to high customer satisfaction ratings. College Ave is also highly rated for customer service, with a reputation for helping borrowers understand the nuances of their loan terms during the setup process.
Once approved, the lender sends the loan details to your school for certification. The school confirms your enrollment and the loan amount. Funds are then disbursed directly to the school according to their payment schedule.
Which lender is right for you?
Choosing between College Ave and SoFi ultimately depends on your specific financial profile and what you value most in a lending partner.
College Ave is likely the better choice if you:
- Need a smaller loan: You only need to borrow between $1,000 and $5,000 to cover a small gap.
- Need budget flexibility: You want to choose a specific loan term (e.g., 8 years) to hit an exact monthly payment number.
- Want a straightforward experience: You prefer a lender focused solely on student loans with a simple, customizable interface.
SoFi is likely the better choice if you:
- Have excellent credit: You or your cosigner have a high credit score and want to compete for the lowest possible rates.
- Value membership perks: You want access to career coaching, financial planning, and networking opportunities.
- Plan to release a cosigner: You want the option to release your cosigner after just 24 months of on-time payments.
- Need a safety net: You value features like unemployment protection and the absence of late fees.
Before applying, remember the golden rule of student finance: exhaust federal options first. If you proceed with a private loan, leverage the pre-qualification tools. Since both lenders use soft credit checks for initial rate estimates, there is no downside to checking rates with both. Be mindful that variable rates carry risk if market rates rise, so consider your tolerance for payment fluctuations before signing.
Pre-qualify with College Ave and SoFi in minutes—no impact to your credit score. Trusted by thousands of students and families.
Frequently asked questions
Can I get a College Ave or SoFi student loan without a cosigner?
It is possible, but difficult for most undergraduates. Both lenders require a strong credit history and sufficient income to qualify alone. Since most students haven’t established this yet, applying with a creditworthy cosigner significantly improves approval odds and interest rates.
Does pre-qualifying affect my credit score?
No. Both College Ave and SoFi use a “soft” credit inquiry for pre-qualification, which does not impact your credit score. A “hard” inquiry, which can temporarily lower your score by a few points, only occurs if you accept an offer and submit a full application.
Can I refinance my loans with College Ave or SoFi later?
Yes, both lenders offer student loan refinancing products. If you graduate, secure a good job, and improve your credit score, you may be able to refinance your private and federal loans into a new loan with a lower rate. Learn more in our guide to student loan refinancing.
How quickly can I receive loan funds?
Once you are approved and sign your documents, the lender sends the loan to your school for certification. This school-dependent step can take a few days to a few weeks. Once certified, funds are typically disbursed around the start of the semester.
What happens if I can’t make a payment?
If you anticipate missing a payment, contact your lender immediately. SoFi offers unemployment protection which may pause payments temporarily. College Ave grants forbearance on a case-by-case basis. While SoFi does not charge late fees, missed payments with either lender will damage your credit score.
Investing in education is a significant financial commitment, but choosing the right loan can make repayment manageable and stress-free. Both College Ave and SoFi are reputable lenders that offer safe, transparent alternatives to high-interest credit cards or personal loans for covering tuition gaps.
Key takeaways:
- College Ave offers superior flexibility for students who need customized loan terms or smaller loan amounts ($1,000+).
- SoFi provides extensive member benefits (like career coaching) and a faster path to cosigner release (24 months), often appealing to borrowers with strong credit.
- Both lenders charge $0 origination fees, a major cost-saving advantage over federal Parent PLUS loans.
- Always pre-qualify with both: Since checking rates doesn’t hurt your credit score, comparing actual offers is the only way to know which lender is cheaper for you.
- Federal first: Ensure you have maximized federal Direct Loans before signing a private loan agreement.
If you still have funding gaps after maximizing federal aid and applying for scholarships, comparing private rates is your next best step.
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