College Ave graduate loans review and guide

College Ave graduate loans provide competitive fixed and variable interest rates with flexible in-school repayment options. They are best suited for borrowers with strong credit histories or those with creditworthy cosigners. While parents gain clarity on cosigner obligations, students can customize loan terms to fit their budget, though they will forgo federal protections like income-driven repayment.

Founded in 2014, College Ave Student Loans has established itself as a leading fintech lender dedicated exclusively to student financing. Unlike traditional banks that manage a wide array of financial products, College Ave specializes solely in education loans. This focus allows them to offer a streamlined, digital-first experience known for speed and transparency, often providing credit decisions in under three minutes.

According to Betsy Mayotte, President of The Institute of Student Loan Advisors, “Private loans can make sense for students who have strong credit or a creditworthy cosigner.” This guide examines whether College Ave is the right fit for your specific financial profile. The lender supports a broad range of advanced degrees, offering general graduate loans as well as specialized products for MBA, law, medical, and dental students. Each program features distinct loan limits and repayment terms designed to match the typical career trajectory of graduates in those fields.

In the following sections, you will learn about current interest rates, borrowing limits, specific eligibility requirements, and the nuances of the application process. We will also compare these private options against federal Grad PLUS loans to help you determine the most cost-effective path for funding your graduate education.

Interest rates and loan terms

Understanding the cost of borrowing is the most critical step in evaluating a private student loan. College Ave offers both fixed and variable interest rate options, allowing borrowers to choose a structure that matches their financial risk tolerance. As of January 2025, College Ave’s rates remain competitive with the broader private lending market, often starting lower than federal options for highly qualified applicants.

For borrowers who prefer stability, fixed rates ensure your monthly payment never changes, regardless of market fluctuations. Variable rates, conversely, may start lower but can increase or decrease monthly based on the Secured Overnight Financing Rate (SOFR). According to Mark Kantrowitz, financial aid expert, “Private loans can offer variable interest rates, which may be lower than federal fixed rates initially.” This potential for savings makes private loans attractive for those with aggressive repayment plans who can pay off the debt before rates potentially rise.

Unlike federal loans, where every borrower receives the same standardized rate regardless of credit history, College Ave uses risk-based pricing. The interest rate you are offered depends heavily on:

• Creditworthiness: Your (or your cosigner’s) FICO score and credit history.
• Income and Debt-to-Income Ratio: A measure of your ability to repay the loan alongside existing obligations.
• Repayment Term: Shorter terms (e.g., 5 years) typically carry lower interest rates than longer terms (e.g., 15 years).
• Degree Type: Specific programs like medical, dental, or law school may have specialized rate structures.

Borrowers can further reduce their interest rate by 0.25% by enrolling in automatic payments during the repayment period. This simple step reduces the total interest paid over the life of the loan.

For many graduate students, the decision comes down to College Ave versus the Federal Direct Grad PLUS loan. While Grad PLUS loans offer easier approval standards, they often come with higher costs for borrowers with good credit. According to StudentAid.gov, the Federal Direct Grad PLUS loan carries a fixed interest rate of 9.08% for the 2024-2025 academic year and an origination fee of 4.228% for disbursements between October 1, 2024 and September 30, 2025.

Source: StudentAid.gov (Federal rates and fees effective July 1, 2024–June 30, 2025); College Ave (as of January 2025).

The lack of an origination fee is a significant advantage for College Ave. On a $20,000 Grad PLUS loan, the 4.228% fee immediately deducts over $845 from the disbursement, meaning you have to borrow more to cover the same tuition amount. With College Ave, 100% of the loan amount goes toward your educational expenses.

You can choose repayment terms of 5, 8, 10, or 15 years. Selecting a shorter term increases your monthly payment but drastically reduces the total interest paid. Conversely, a 15-year term lowers the monthly obligation, providing breathing room for new graduates starting their careers, though it costs more in the long run.

To see exactly where you stand, you can check your eligibility without affecting your credit score.

Check your rate (soft credit pull, no impact to score)

Borrowing limits and amounts

While interest rates determine the cost of your loan, borrowing limits determine its utility. One of the primary reasons graduate students turn to private lenders is to bridge the gap between federal loan caps and the actual price of their degree. College Ave offers high borrowing limits designed to cover the total financial requirement of your program, ensuring you do not fall short on tuition or living expenses.

For the 2025-2026 academic year, you can borrow as little as $1,000 up to 100% of the school-certified cost of attendance. According to StudentAid.gov, the Federal Direct Unsubsidized Loan caps annual borrowing at $20,500 for most graduate programs for the 2025-2026 academic year. If your program costs exceed that federal limit—which is common for medical, law, and MBA degrees—a private loan can fund the remainder without requiring you to navigate the more expensive Grad PLUS origination fees.

According to Mark Kantrowitz, financial aid expert, “Private loans can be a good option when federal loans don’t cover the full cost of attendance.” This makes them a strategic tool for students attending high-cost institutions or those living in cities with high costs of living.

The “cost of attendance” (COA) is a figure determined by your university’s financial aid office, not the lender. It includes significantly more than just tuition. When calculating how much to borrow, you can include:

• Tuition and mandatory fees
• Room and board (on-campus or off-campus housing)
• Books, supplies, and equipment (including laptops)
• Transportation and personal expenses

However, you cannot borrow an unlimited amount. The maximum you can receive is the school’s official COA minus any other financial aid you have received, such as scholarships, grants, or federal loans. For a deeper dive into how schools calculate these figures, read our comprehensive guide on understanding your total educational expenses and financial planning strategies.

While annual limits are flexible, College Ave does enforce an aggregate (lifetime) borrowing limit. This cap varies by degree type but generally sits around $150,000 for standard graduate degrees, with higher caps for medical, dental, and law school students. This aggregate limit typically includes all outstanding student loan debt, both federal and private.

Once you apply, College Ave sends your application to your school for certification. The school confirms your enrollment and verifies that the loan amount fits within your COA. Upon approval, the funds are not sent to your personal bank account; they are disbursed directly to the school. If you have applied for a loan to cover the full academic year, the funds are typically split and disbursed at the start of each semester or quarter.

Eligibility requirements and application process

Qualifying for a College Ave graduate loan differs significantly from the federal process. While federal Direct Unsubsidized loans are available to almost any graduate student regardless of financial history, College Ave evaluates your application based on creditworthiness and income stability. Understanding these requirements beforehand can help you determine if you should apply alone or with a cosigner.

The most critical factor in your application is your credit profile. To qualify independently, you typically need a FICO score of at least mid-600s (often cited as 650 or higher) and a history free of recent bankruptcies or delinquencies. However, meeting the minimum score does not guarantee approval or the lowest advertised interest rates; the best terms are generally reserved for applicants with scores in the high 700s.

In addition to your credit score, College Ave assesses your debt-to-income (DTI) ratio to ensure you can manage the monthly payments. If you are a full-time student without a steady income, meeting these income requirements on your own is difficult. According to Mark Kantrowitz, financial aid expert, “Most students will need a cosigner to qualify for a private student loan.” Adding a creditworthy cosigner—such as a parent, guardian, or spouse—can not only increase your chances of approval but also significantly lower your interest rate.

If your credit score is on the borderline, you may want to review strategies for strengthening your credit profile before submitting a formal application.

Beyond financial criteria, you must meet specific demographic and academic requirements:

• Citizenship: You must be a U.S. citizen or a permanent resident with a valid Social Security number. International students can apply if they have a creditworthy cosigner who is a U.S. citizen or permanent resident.
• Enrollment: You must be enrolled at least half-time in an eligible degree-granting graduate program.
• School Eligibility: The school must be a Title IV eligible institution that College Ave works with (which covers most major universities).

College Ave utilizes a “fintech” approach, meaning their application process is designed to be digital, fast, and user-friendly. Here is what to expect:

1. Prequalification (3 Minutes): You can check your eligibility and view potential interest rates using a “soft” credit pull. This step allows you to see your options without impacting your credit score.
2. Formal Application: Once you select your rate and term, you (and your cosigner, if applicable) will complete the full application. This triggers a “hard” credit inquiry, which may temporarily dip your credit score by a few points.
3. Document Upload: You may need to upload proof of income (pay stubs or tax returns), proof of identity (driver’s license), and proof of address.
4. School Certification (1–2 Weeks): After you sign the loan agreement, College Ave sends the request to your university’s financial aid office. The school must certify your enrollment and confirm the loan amount does not exceed your cost of attendance.
5. Disbursement: Once certified, the funds are sent directly to the school to cover tuition and fees. Any remaining balance for living expenses is typically refunded to you by the school.

Because the school certification step relies on your university’s administrative timeline, it is wise to apply at least 30 days before your tuition is due, even though the initial approval from College Ave is often instant.

Check your rate (soft credit pull, no impact to score)

Once your application is approved and certified, the next major decision involves selecting how you want to handle payments while you are still in school. Your choice here will have a lasting impact on your total loan balance after graduation.

Repayment options and flexibility

One of the most significant advantages of choosing a private lender like College Ave is the ability to customize how you handle the loan while you are still studying. Unlike federal loans, which often place students in automatic deferment, College Ave requires you to select a repayment plan during the application process. This choice has a direct impact on your total debt burden after graduation.

Because interest on private student loans begins accruing the moment the funds are disbursed to your school, waiting until graduation to make payments can be costly. College Ave offers four distinct in-school repayment options, allowing you to balance monthly affordability with long-term savings.

Your selection determines how much interest capitalizes (gets added to your principal balance) at the end of your grace period. The more you pay now, the less you pay later.

• Full Deferment: You pay nothing while in school and during the grace period. This provides maximum cash flow flexibility now, but interest accrues daily and is added to your loan balance when repayment begins. This is the most expensive option long-term.
• Flat Pay ($25): You pay a fixed $25 per month while enrolled. This small payment offsets some accruing interest and keeps you in the habit of making monthly payments, slightly reducing the amount that capitalizes later.
• Interest-Only: You pay the full amount of interest that accrues each month. This ensures that your loan balance does not grow while you are in school. When you graduate, you will owe the exact amount you originally borrowed.
• Full Principal & Interest: You begin making full standard payments immediately. This is the most aggressive strategy and results in the lowest total cost, though it is often difficult for full-time students to manage.

According to Mark Kantrowitz, financial aid expert, “Every dollar you save is a dollar less you have to borrow.” Even small payments made during school prevent interest from compounding, which can save you thousands over the life of the loan.

To illustrate the financial impact of these choices, consider a graduate student borrowing $30,000 at an 8% fixed interest rate. Assuming a 30-month period (2 years in school plus a 6-month grace period) before full repayment begins, here is how the costs stack up:

Source: College Finance calculations based on standard amortization formulas (as of January 2025). Examples are for illustrative purposes only.

Regardless of the in-school plan you choose, College Ave provides a 6-month grace period after you graduate or drop below half-time enrollment. During this time, you are not required to make full principal and interest payments (though continuing your in-school payments is highly recommended to keep interest in check).

Once the grace period ends, your loan enters full repayment. If you encounter financial difficulties, College Ave offers options to help you stay current. Borrowers may be eligible for up to 18 months of forbearance over the life of the loan, typically granted in 3-month or 6-month increments. This is intended for temporary hardship, such as job loss or medical emergencies. However, unlike federal loans, interest continues to accrue during forbearance, and unpaid interest may capitalize at the end of the period.

If you are unsure which strategy fits your budget, you can explore different payment scenarios and calculate the long-term impact of various repayment approaches.

Cosigner requirements and release policy

While many graduate students are independent adults with rental histories and employment records, qualifying for a private loan solely on a student income remains difficult. Consequently, the majority of private graduate loans still involve a cosigner. Understanding the dynamics of this partnership is essential for both the student borrower and the family member stepping in to help.

Adding a cosigner does more than just improve approval odds; it often secures a significantly lower interest rate. However, this arrangement carries legal weight. For the cosigner—often a parent or partner—the loan appears on their credit report as if it were their own debt. This increases their debt-to-income ratio, which could impact their ability to qualify for other financing, such as a mortgage or auto loan, until the debt is paid or released.

For the student, a cosigner provides access to funding but also creates a shared financial obligation. If the student misses a payment, the cosigner’s credit score suffers alongside the student’s. Before signing, both parties should have a candid conversation about repayment expectations and understand the full implications of cosigning financial obligations.

Unlike many lenders that require 36 or 48 months of payments before a cosigner can be removed, College Ave offers a relatively fast track to independence. Borrowers can apply to release their cosigner after making just 24 consecutive, on-time, full principal and interest payments.

According to Mark Kantrowitz, financial aid expert, “Cosigner release is a valuable feature offered by some private lenders, rewarding responsible repayment.” This feature protects the cosigner’s long-term financial health by providing an exit strategy once the graduate has established their career.

To qualify for the release, the student borrower must meet specific criteria at the time of the request:

• Payment History: You cannot have any late payments during the 24-month period.
• Income Verification: You must provide proof of income showing that yours is sufficient to repay the loan solo (typically requiring a gross monthly income at least twice the total of your monthly debt obligations).
• Credit Check: A new credit review is conducted to ensure the student meets College Ave’s underwriting criteria independently.

If approved, the cosigner is fully removed from the loan agreement, relieving them of all future liability. This possibility makes the initial commitment less daunting for parents concerned about long-term exposure.

With the roles and responsibilities of borrowing defined, it is important to look at the specific costs associated with finalizing the loan, particularly regarding fees.

Fees and additional costs

When evaluating the total cost of a graduate degree, many families focus exclusively on the interest rate. However, loan fees can add significantly to the balance before the first class even begins. College Ave distinguishes itself in the private lending market with a transparent, low-fee structure designed to minimize upfront costs for borrowers.

The most significant financial advantage College Ave offers over federal options is the complete absence of origination fees. An origination fee is a percentage of the loan amount charged by the lender for processing the loan, which is deducted from the funds before they are sent to the school.

According to StudentAid.gov, for the 2024-2025 academic year, the Federal Direct Grad PLUS loan carries an origination fee of 4.228% for disbursements between October 1, 2024 and September 30, 2025. This means for every $10,000 you borrow, the government keeps approximately $422, sending only $9,578 to your university. To get the full $10,000 needed for tuition, you would have to borrow—and pay interest on—a higher amount.

In contrast, College Ave charges $0 in origination fees. If you are approved for $10,000, the full $10,000 is disbursed to your school. For graduate students borrowing large sums for medical, law, or business school, this difference can save thousands of dollars immediately.

While College Ave saves borrowers money on upfront costs, they maintain strict policies regarding repayment discipline. Unlike federal loans, which can be more flexible regarding missed payments, private lenders enforce penalties to ensure timely repayment.

• Late Payment Fee: If you fail to make a payment on time, College Ave charges a late fee. As of January 2025, this is typically structured as $5 or 6% of the unpaid monthly payment amount, depending on the specific terms of your loan agreement.
• Returned Payment Fee: If a payment is returned due to insufficient funds, a fee (typically $25) will be assessed.
• Prepayment Penalty: There is no penalty for paying off your loan early. Borrowers are encouraged to make extra payments whenever possible to reduce total interest costs.

It is important to note that private lenders generally offer less leeway than the federal government when payments are missed. According to Jason Delisle, a higher education finance expert, “Federal loans are more lenient … no late fees, unlike private loans.” This makes setting up autopay essential not just for the interest rate discount, but to avoid unnecessary penalties.

Understanding these costs helps frame the overall value of the loan. With a clear picture of the fee structure, you can better evaluate the standout features that make College Ave a popular choice for graduate students.

Key benefits and standout features

While low interest rates and zero fees are the primary financial drivers for choosing a lender, the borrowing experience itself plays a significant role in managing student stress. College Ave distinguishes itself from traditional banks through a suite of features designed to simplify the logistics of funding a graduate education and supporting the transition into the workforce.

One of the most stressful aspects of graduate school is the annual uncertainty of financial aid. Most private lenders require borrowers to undergo a full application and credit check every single year, risking denial if their credit profile changes slightly. College Ave addresses this with its “Multi-Year Peace of Mind” policy.

Under this program, qualified borrowers can secure funding for their entire degree plan with a single initial application. While you must still request the specific funds needed for subsequent academic years, the heavy lifting of credit approval is largely handled upfront. This feature provides significant reassurance that you will not be left without funding midway through your degree program, allowing you to focus on your studies rather than your financing.

Recognizing that the ultimate goal of a graduate degree is career advancement, College Ave provides borrowers with free access to career coaching services. This benefit extends beyond the loan itself, offering tools to help students maximize their return on investment. Through a partnership with career services platforms, borrowers can access resources such as:

• Resume reviews and interview preparation tools.
• Personalized career coaching sessions.
• Networking advice and job search strategies.

For graduate students entering competitive fields, these value-added services can be a differentiating factor, effectively reducing the “net cost” of the loan by providing services you might otherwise pay for out of pocket.

As a fintech lender, College Ave prioritizes speed and digital accessibility. The application process is designed to deliver a credit decision in as little as three minutes, a crucial feature for students who need to secure funding quickly before tuition deadlines. Once the loan is active, the College Ave mobile app allows borrowers to manage their account from their phone, making it easier to schedule payments, check balances, and update personal information without navigating complex web portals.

However, while these features offer convenience and peace of mind, they do not eliminate the inherent risks associated with private student lending. Before committing, it is essential to weigh these benefits against the limitations that come with foregoing federal loan options.

Limitations and important considerations

While College Ave offers competitive rates and a streamlined digital experience, these benefits come with specific trade-offs. Choosing a private lender means opting out of the federal student loan system, which provides unique safety nets designed to protect borrowers during periods of financial instability. Before signing a loan agreement, it is essential to understand exactly what protections you are giving up.

The most significant drawback of any private student loan is the ineligibility for federal repayment programs. When you choose a private lender, you lose access to:

• Income-Driven Repayment (IDR) Plans: Federal plans can cap your monthly payments at a percentage of your discretionary income and offer loan forgiveness after 20 or 25 years. College Ave requires full repayment based on the term you selected, regardless of your income level after graduation.
• Public Service Loan Forgiveness (PSLF): If you plan to work for a non-profit, government agency, or public service organization, federal loans can be forgiven tax-free after 10 years of qualifying payments. Private loans are never eligible for PSLF.

According to Betsy Mayotte, President of The Institute of Student Loan Advisors, “In general, federal loans should be your first stop, but private loans can be appropriate when you’ve maxed out your federal eligibility.” This is particularly true for students entering lower-paying fields where federal protections are most valuable.

While College Ave’s variable rates can start lower than federal fixed rates, they carry the risk of increasing over time. If market rates rise significantly, your monthly payment could increase, potentially disrupting your budget. Federal Direct Loans, by contrast, always carry fixed rates that remain static for the life of the loan.

Additionally, accessibility is stricter with private lenders. The Federal Direct Unsubsidized Loan requires no credit check, and the Grad PLUS loan checks only for adverse credit history. College Ave requires a comprehensive credit review. Students with thin credit files or lower scores may be denied coverage entirely or offered rates higher than the federal cap.

Finally, while College Ave offers up to 18 months of forbearance for hardship, this is discretionary and limited compared to federal options. Federal loans offer up to three years of unemployment deferment and generous forbearance policies for economic hardship. Understanding these differences is vital for determining if you fit the ideal borrower profile for a private graduate loan.

Who College Ave graduate loans are best for

Deciding between College Ave and federal options ultimately comes down to balancing immediate cost savings against long-term safety nets. College Ave is designed for borrowers who prioritize lower interest costs and efficiency over the flexible repayment protections offered by the government.

According to Betsy Mayotte, President of The Institute of Student Loan Advisors, “Private loans can make sense for students who have strong credit or a creditworthy cosigner.” This is the core of the ideal borrower profile: someone with a high credit score (typically 700+) and a stable financial outlook who can qualify for a rate lower than the federal Grad PLUS benchmark.

College Ave is likely the right choice for your situation if:

• You have maxed out Federal Direct Unsubsidized Loans: You need gap financing to cover the remainder of your tuition or living expenses.
• You want to avoid origination fees: You are borrowing a significant amount and want to avoid the ~4% fee charged on federal Grad PLUS loans.
• Your career path is high-income corporate: You are pursuing an MBA, law degree, or medical degree and plan to work in the private sector, making Public Service Loan Forgiveness (PSLF) irrelevant to your strategy.
• You have a strong cosigner: A parent or partner with excellent credit is willing to sign, potentially unlocking the lowest advertised rates.

Conversely, you should prioritize federal Grad PLUS loans if you intend to work in public service, education, or non-profit sectors where loan forgiveness is a possibility. Additionally, if your projected starting salary is low relative to your debt load, the safety of federal income-driven repayment plans is far more valuable than a slightly lower interest rate.

If you are still weighing the pros and cons, you can compare the specific trade-offs between different loan types. If you have determined that College Ave fits your needs, the following answers to common questions can help clarify the final details.

Frequently asked questions

To help you make the final decision on whether College Ave is the right partner for your graduate education, here are answers to the most common questions borrowers ask regarding approval, repayment, and specific degree programs.

Yes, it is possible, but it is challenging. To qualify independently, you generally need a strong credit score (typically mid-to-high 600s or better), a stable income history, and a debt-to-income ratio that supports the new loan payments. Since many full-time graduate students do not have substantial income while enrolled, applying with a creditworthy cosigner is often necessary to secure approval and unlock the lowest interest rates.

The primary difference is cost versus protection. College Ave offers the potential for lower interest rates and charges $0 in origination fees, whereas according to StudentAid.gov, Grad PLUS loans charge a 4.228% fee as of the 2024-2025 academic year. However, Grad PLUS loans include federal protections like income-driven repayment and Public Service Loan Forgiveness (PSLF), which College Ave does not. If you have excellent credit and do not need federal forgiveness programs, College Ave is often the cheaper option.

Yes. College Ave offers specialized loan products for MBA, Law, Medical, and Dental students. These specific loans often come with higher aggregate borrowing limits to match the higher cost of attendance for these programs. Additionally, medical and dental school loans may offer extended grace periods or residency deferral options (up to 48 months for medical residents) to accommodate the longer path to full-time income.

If you face financial difficulty, you should contact College Ave immediately. They offer a hardship forbearance program that can pause payments for up to 12 months (typically granted in 3-month increments) over the life of the loan. However, unlike federal deferment, interest continues to accrue during this time. It is important to remember that private lenders are generally less flexible than the federal government, so maintaining an emergency fund is highly recommended.

Yes. College Ave charges no prepayment penalties, meaning you can pay off your loan as quickly as you like to save on interest. Furthermore, if interest rates drop in the future or your credit score improves significantly after graduation, you can refinance your College Ave loan with another lender to secure better terms.

While College Ave often provides a credit decision in minutes, the school certification process takes time. It is best to apply at least 30 days before your tuition deadline. This ensures your school’s financial aid office has enough time to certify your enrollment and schedule the disbursement of funds.

College Ave stands out as a top-tier option for graduate students seeking to minimize borrowing costs. By eliminating origination fees and offering competitive interest rates, it provides a financially efficient alternative to federal Grad PLUS loans for borrowers with strong credit or qualified cosigners. The platform’s focus on flexibility allows you to tailor your repayment timeline and in-school payments to match your future income trajectory.

However, private financing should always be a calculated decision. According to StudentAid.gov, before applying, verify that you have maximized your Federal Direct Unsubsidized Loan eligibility ($20,500 annually for most programs for the 2025-2026 academic year). If you anticipate needing Public Service Loan Forgiveness (PSLF) or income-driven repayment plans, sticking with federal options is the safer path. For those focused on the lowest total cost of borrowing, College Ave offers a compelling solution.

• Zero Fees: No origination or application fees mean 100% of your loan goes toward your degree, unlike the ~4% fee on Grad PLUS loans.
• Customizable Repayment: Choose from terms ranging from 5 to 15 years to balance monthly affordability with total interest savings.
• Cosigner Release: A clear path to financial independence allows cosigners to be released after just 24 on-time payments.

If you are ready to fund your graduate degree, you can check your eligibility in minutes to see if you qualify for a rate that beats federal options.

Trusted by 50,000+ students and families

Compare graduate loan rates from College Ave and 7+ other lenders (soft credit check, no impact to score)

References and resources

To further evaluate your graduate school financing options, consult these official sources and detailed guides:

• College Ave Official Site: View current rates and application details.
• Federal Student Aid: Review Grad PLUS loan terms and limits.
• Federal vs. Private Loans: An in-depth comparison of protections.
• Graduate School Financing Guide: Comprehensive funding strategies.