Earnest vs College Ave: Which private student loan lender is right for you?

Choose Earnest if you want flexible repayment customization and skip-a-payment options; choose College Ave if you need broader school coverage, multi-year approval, or flexible in-school payment choices. Both lenders offer competitive rates and no origination fees, but they serve slightly different borrower needs.

For many families and students, federal student loans are the first line of defense against college costs. However, federal lending limits often fall short of the total cost of attendance, leaving a funding gap that must be closed to keep enrollment secure. This is where private student loans play a critical role. When navigating this decision, finding a lender that balances competitive interest rates with terms that fit your family’s financial reality is essential.

In this guide, you will learn how Earnest and College Ave compare on critical factors like interest rates, eligibility requirements, repayment flexibility, and borrower protections. We will move beyond marketing slogans to analyze the specific features—from Earnest’s precision pricing to College Ave’s multi-year approval—that can make a tangible difference in the total cost of the loan and the monthly budget after graduation. By the end, you will have the information needed to confidently select the option that best supports your educational investment without overextending your future finances.

Context: When private student loans make sense

Before comparing specific lenders, it is vital to understand where private loans fit into the broader financial aid landscape. Private student loans should generally be considered only after maximizing all available grants, scholarships, and federal student loans. Federal loans offer standardized protections, such as income-driven repayment plans and potential forgiveness programs, that private lenders rarely match.

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.”

Once federal limits are reached, private loans help bridge the gap for tuition, room, board, and other certified educational expenses. In this space, Earnest and College Ave stand out as two of the most reputable lenders, though they approach lending differently. Earnest is a technology-forward lender known for “precision pricing” and unique repayment tools that allow borrowers to customize their loan terms to fit a specific budget. They cater heavily to borrowers with strong credit profiles who value flexibility.

College Ave, by contrast, specializes exclusively in student lending. They are known for their “multi-year approval” feature, which simplifies the process for returning students, and for offering a wide variety of in-school payment options to reduce interest accrual. While Earnest focuses on customization, College Ave focuses on accessibility and process efficiency. Understanding these core philosophies helps clarify why one might offer a better experience for your specific situation than the other. For a refresher on federal options, review our guide to federal student loans.

Earnest vs College Ave at a glance: Quick comparison

To help you make a quick assessment, the table below outlines the key features, rates, and terms for both lenders. This side-by-side view highlights the primary differences in loan limits, repayment options, and borrower benefits.

Source: Earnest.com and CollegeAve.com (Rates and terms current as of October 2024. Rates include autopay discount where applicable.)

Both lenders offer competitive rates and cover up to the full cost of attendance, but the differences lie in the details. Earnest offers a slightly wider range of term options (including a 7-year and 12-year term), while College Ave provides a structured path to cosigner release. Both eliminate origination fees, which saves families money upfront compared to federal Parent PLUS loans.

Earnest vs College Ave: Interest rates and fees

Interest rates are often the deciding factor for families and students, but understanding how these rates are determined is equally important. Both lenders offer competitive fixed and variable APRs, with Earnest offering fixed rates of 2.99% - 12.78% and variable rates of 0.94% - 11.44%, while College Ave offers fixed rates of 3.49% - 12.99%^{2 and variable rates of 1.19% - 11.98%2 .}

Earnest utilizes a “precision pricing” model. Rather than fitting borrowers into broad credit tiers, they analyze a wider range of financial data—including savings patterns, education, and employment history—alongside credit scores. This can result in highly personalized rates that reward financially responsible applicants who might not have the longest credit history. Furthermore, Earnest allows borrowers to pick their exact monthly payment, which then determines the loan term and interest rate, offering a level of customization rarely seen in the market.

College Ave generally follows a more traditional underwriting approach, focusing heavily on credit scores and debt-to-income ratios. They are known for providing clear, competitive rates that are easy to understand. According to College Ave’s website, borrowers who enroll in automatic payments receive a 0.25% interest rate reduction as of October 2024. This discount is standard across the industry but remains a simple way to lower the total cost of borrowing.

Regarding fees, both lenders are consumer-friendly. Neither charges origination fees, prepayment penalties, or application fees. However, late fees and returned payment fees may apply if payments are missed, so maintaining good standing is essential to keeping costs low. When choosing between fixed and variable rates, remember that fixed rates provide stability, while variable rates may start lower but carry the risk of increasing over time.

Eligibility requirements: Who can qualify?

Qualifying for a private student loan typically requires a solid financial profile. Since many undergraduate students have limited credit history and income, applying with a creditworthy cosigner is standard practice. Both Earnest and College Ave have specific criteria that applicants must meet to be approved.

Earnest generally targets borrowers with good to excellent credit. To qualify, the primary borrower or cosigner must be a U.S. citizen or permanent resident. A key distinction is that Earnest loans are typically available only to students attending Title IV-eligible schools (schools eligible for federal financial aid). Their underwriting is rigorous, looking for a history of on-time payments and sufficient income to manage the debt.

College Ave also requires U.S. citizenship or permanent residency for the primary borrower or cosigner. However, international students can apply if they have a qualifying U.S. cosigner. College Ave tends to have slightly broader school eligibility and may be an option for students attending certain career training programs or bootcamps that Earnest might not cover. While they also require good credit, the presence of a strong cosigner can significantly improve approval odds for students with thinner credit files.

According to Mark Kantrowitz, financial aid expert, “Most students will need a cosigner to qualify for a private student loan.” This reality makes the cosigner’s credit health just as important as the student’s. For more details on how this partnership works, read our guide to cosigner requirements.

Cosigner requirements and release policies

Since the vast majority of private undergraduate loans involve a cosigner, the ability to eventually release that cosigner from the loan obligation is a major consideration for families. Cosigner release allows the primary borrower (the student) to take full responsibility for the loan once they have graduated, secured income, and demonstrated a history of on-time payments.

Earnest offers a cosigner release option, but the requirements are specific. Borrowers must typically graduate, be making principal and interest payments, and meet Earnest’s credit and income underwriting criteria on their own. The exact timeline can vary, so it is crucial to check the specific terms in your loan agreement. This feature ensures that parents aren’t tied to the debt indefinitely, provided the student becomes financially independent.

According to College Ave’s website, their cosigner release policy typically requires that more than half of the scheduled repayment period has elapsed as of October 2024. For example, if you have a 10-year repayment term, you may be eligible to apply for release after 5 years of payments. The borrower must also document sufficient income and pass a credit review. While the timeline might be longer than some other lenders, having a clear, defined path to release provides peace of mind for parents concerned about their debt-to-income ratio in the long term.

If a cosigner release application is denied by either lender, the cosigner remains responsible for the loan. This underscores the importance of the student building a strong financial profile immediately after graduation.

Loan amounts and coverage

Both Earnest and College Ave offer substantial borrowing power, allowing students to cover up to 100% of the school-certified cost of attendance. This includes tuition, fees, room and board, books, and other authorized educational expenses, minus any other financial aid received. The minimum loan amount for both is generally $1,000, making them suitable for covering small funding gaps as well as larger tuition bills.

A significant differentiator in this category is College Ave’s “Multi-Year Peace of Mind” feature. According to College Ave, this allows reliable borrowers to get pre-approved for future academic years when they apply for their first loan. While you still need to request the funds each year, roughly 90% of borrowers who are approved initially are approved for subsequent years as of October 2024. This reduces the stress of wondering if you will be able to secure funding for your sophomore, junior, or senior years.

Earnest does not explicitly market a multi-year approval feature, meaning borrowers typically undergo a full approval process each academic year. Both lenders require the school to certify the loan amount to ensure the funds do not exceed the total cost of attendance, preventing over-borrowing.

Repayment terms and in-school options

How you handle the loan while in school and the term length you choose significantly impacts your monthly payment and total interest cost. Both lenders offer flexibility, but they package it differently.

College Ave is known for its variety of in-school repayment options. Borrowers can choose to make full payments, interest-only payments, a flat $25 monthly payment, or defer all payments until after graduation. Making even small payments like $25 a month helps keep the balance from growing as quickly. Furthermore, College Ave offers a wide selection of repayment terms—5, 8, 10, and 15 years—allowing families to dial in a monthly payment that fits their budget.

Earnest offers similar in-school options (deferred, fixed, interest-only, and full principal and interest). However, their standout feature is “Precision Pricing” regarding terms. While they offer standard terms like 5, 7, 10, 12, and 15 years, borrowers can actually adjust their desired monthly payment in the dashboard, and Earnest will calculate the exact term needed to meet that payment. This level of customization is unique.

Additionally, according to Earnest’s website, they offer a “Skip-A-Payment” benefit as of October 2024. Eligible borrowers can request to skip one payment every 12 months without penalty (though interest continues to accrue). This provides a safety net for unexpected expenses that College Ave does not currently match.

Forbearance, hardship options, and borrower protections

Life is unpredictable, and knowing what happens if you face financial difficulty is essential. It is important to state clearly that private student loans, including those from Earnest and College Ave, do not offer the same extensive protections as federal loans. Federal options like income-driven repayment plans and Public Service Loan Forgiveness are not available here.

That said, both lenders offer forbearance options for borrowers facing temporary financial hardship, such as job loss or medical emergencies. Typically, forbearance is granted in 3-month increments, with a cap on the total number of months allowed over the life of the loan (often 12 months). During forbearance, payments are paused, but interest usually continues to accrue, increasing the total loan balance.

Both lenders also offer standard discharge policies in the unfortunate event of the primary borrower’s death or total and permanent disability. In these cases, the loan is forgiven, and the cosigner is released from the obligation. While these protections are robust for the private market, they underscore why maximizing federal loans first—as detailed in our federal loans guide—is always the safest financial strategy.

Application process and customer experience

The application experience for both lenders is fully digital, streamlined, and designed to be completed in minutes. Both Earnest and College Ave allow you to check your eligibility and view potential interest rates with a “soft credit pull.” This is a crucial feature because it means you can compare rates without hurting your credit score.

Earnest’s platform is highly regarded for its user-friendly interface and mobile experience. The dashboard is intuitive, making it easy to upload documents, track application status, and eventually manage payments. Their process is often praised for its speed, with many decisions rendered almost instantly upon completing the application.

College Ave also offers a seamless online application optimized for mobile devices. They provide robust customer service options, including chat, email, and phone support, which can be helpful for families navigating the process for the first time. Once approved, both lenders handle the certification process directly with the school and disburse funds according to the school’s timeline. The emphasis for both is on reducing the administrative burden on students and families.

Which borrowers should choose Earnest?

Earnest is often the better choice for borrowers who have strong credit profiles and prioritize flexibility and customization. If you want the ability to fine-tune your monthly payment to an exact dollar amount or value the safety net of a skip-a-payment feature, Earnest stands out. It is also ideal for tech-savvy users who want a best-in-class digital dashboard for managing their debt.

Additionally, because Earnest uses alternative data in their underwriting, applicants with a short but positive financial history might find competitive rates here that traditional lenders miss. If you are attending a Title IV school and want a loan that adapts to your life, Earnest is a strong contender.

Remember, checking your rate is risk-free. Compare rates from 8+ lenders in 2 minutes—it’s a soft credit pull that won’t impact your credit score.

Which borrowers should choose College Ave?

College Ave is an excellent fit for borrowers who value a specialized, straightforward lending experience with broad eligibility. If you are looking for the security of multi-year approval to simplify funding for future semesters, College Ave is the clear winner. Their wide variety of repayment terms (including the 8-year option) and in-school payment choices make them highly adaptable to different family budgets.

This lender is also a strong option for students who may have fair credit but a strong cosigner, or for those attending schools that might fall outside of strict Title IV requirements. If you want a lender that focuses 100% on student loans and offers a clear path to cosigner release, College Ave is a reliable choice.

See what rates you qualify for today. Find your best private student loan option—fast, free, and no impact to your credit score.

Frequently asked questions: Earnest vs College Ave

Both lenders offer very competitive rates that fluctuate with the market. Generally, Earnest and College Ave have similar rate ranges. The “lowest” rate for you depends entirely on your specific credit profile and cosigner. Earnest’s precision pricing may offer an edge for borrowers with excellent financial habits.

Both offer cosigner release, but the terms differ. College Ave typically allows release after more than half the repayment term has passed. Earnest’s requirements are based on specific payment milestones and credit criteria. Review the specific terms in your loan agreement to see which timeline fits your goals.

College Ave generally has broader eligibility and may cover certain career training programs and non-degree paths that Earnest does not. Earnest typically requires attendance at a Title IV-eligible degree-granting institution.

With College Ave, you submit one application and, if eligible, receive approval for your current year plus a pre-approval for future years. This means you don’t have to undergo a hard credit inquiry or full application process every single year, simplifying the path to graduation.

Both lenders offer forbearance options for financial hardship, typically in 3-month increments up to 12 months total. Earnest also offers a unique “Skip-A-Payment” feature allowing you to skip one payment every 12 months without being in forbearance, though interest will still accrue.

Choosing between Earnest and College Ave ultimately comes down to your specific priorities. Earnest excels in customization, offering precision pricing and unique repayment flexibility like the skip-a-payment feature. College Ave shines with its multi-year approval process and broad range of in-school payment options, making it a reliable partner for the long haul of a degree program.

Key takeaways:

• Maximize federal aid first: Always exhaust federal grants and loans before turning to private lenders.
• Check both rates: Since prequalification is a soft credit pull, there is no downside to checking rates with both lenders to see who offers the better deal.
• Consider the cosigner: Discuss cosigner release policies with your family to ensure the long-term plan protects everyone’s credit.
• Look beyond the rate: Consider repayment flexibility and total loan cost, not just the starting APR.

Remember to complete the FAFSA first to access federal aid. You can learn more in our comprehensive FAFSA guide. If you determine private loans are necessary, compare your options carefully to ensure you are getting the best possible terms for your education.

References and resources

For further research and to verify the details of these loan programs, consult the following resources:

• Earnest: Official website for loan products, eligibility, and rate calculators.
• College Ave: Official website for student loan products, multi-year approval details, and tools.
• StudentAid.gov: The official source for all federal student loan information and FAFSA applications.
• College Finance Federal Loans Guide: Our internal guide comparing federal and private options.
• College Finance Cosigner Guide: Detailed information on rights, responsibilities, and release policies.