College Ave is the choice if you want to refinance your loan.
Marianne Ayala/Insider
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The bottom line: While both Sallie Mae Undergraduate Student Loans and College Ave Undergraduate Student Loans are good options for student loan borrowers, College Ave offers better rates and more repayment options while borrowers are in school. Additionally, you can refinance your student loans with College Ave, but you can’t with Sallie Mae.
Sallie Mae vs. College Ave summary
Sallie Mae and College Ave have the same minimum and maximum loan amounts, so no matter what amount of money you’re looking to borrow, you should be able to do so with both companies.
If you want to refinance your loans, you must choose College Ave, as Sallie Mae doesn’t offer student loan refinancing. Both lenders offer new undergraduate and graduate loans.
Sallie Mae
College Ave Student Loans
Undergraduate interest ratesSallie Mae Undergraduate Student LoansCollege Ave Undergraduate Student LoansGraduate interest ratesSallie Mae Graduate Student LoanCollege Ave Graduate Student LoansRefinancing interest ratesN/ACollege Ave student loan refinancingLoan amounts$1,000 minimum, up to 100% cost of attendance$1,000 minimum, up to 100% cost of attendanceTerm lengths
Five, 10, or 15 years, assigned by Sallie Mae
Five, eight, 10, or 15 years
Repayment options available
Deferred, interest only, fixed
Deferred, interest only, partial payments, full repayment immediatelyOffers refinancing?NoYes
Pros and cons of Sallie Mae
ProsCons
Four months of Chegg included with undergraduate loans
No origination fee
No prepayment penalty
Part-time students are eligible
Higher APRs than College AveOnly one term length for graduate loans (15 years)Term length assigned for undergraduate loansLate payment penaltyCustomer service unavailable on Saturday and SundayDoesn’t offer refinancing
While Sallie Mae doesn’t charge origination fees or prepayment penalties, there are some significant drawbacks that come with the lender.
The lender charges a 5% late payment fee, up to $25. You won’t be able to decide your repayment term length — the company chooses your repayment term. Sallie Mae will also perform a hard credit inquiry to give you an approval decision, which may hurt your credit score. Most lenders only do a soft inquiry during this process, then a hard pull before you receive your funds.
Pros and cons of College Ave
ProsCons
Lower APRs than Sallie Mae
Can choose repayment term length
No origination fee
No prepayment penalty
Several customer support options
Late payment penaltyNo signup perks like competitors
College Ave’s undergraduate student loan rates are some of the best out there.
To get your rate, College Ave tells you whether you’ve been approved for a loan via a soft credit check, which will have no impact on your credit score. With Sallie Mae, the lender will perform a hard credit inquiry to determine your eligibility, which might negatively affect your credit score.
College Ave offers 11 repayment term lengths when you refinance. You’re able to take out a loan for five to 15 years. Many other lenders limit your selection to four or five options — though some others do offer 20-year term lengths (which College Ave does not).
How to choose between Sallie Mae and College Ave
If you want to refinance a student loan, go with College Ave. Sallie Mae doesn’t offer refinancing on student loans, so if you’re comparing the two companies, College Ave is your choice.
If you want to begin repaying your loan in full while in school, consider College Ave. If you make payments on your balance and interest during your time in school, the overall cost of your loan will be less — an option only College Ave offers. Both lenders allow you to defer your payments completely until you finish school or pay just the interest on your loan during that timeframe. You can also make a fixed $25 monthly payment with both lenders.
If you want to choose your term length, consider College Ave. Sallie Mae assigns term lengths to its undergraduate borrowers, while College Ave allows you to choose the term length.
If you want complimentary educational assistance, consider Sallie Mae. Sallie Mae offers four months of the study service Chegg for free with its loans. Chegg offers expert Q&A, and students can submit up to 20 questions per month.
If you want a highly reviewed and well-liked mobile app, consider Sallie Mae. There are thousands of reviews for Sallie Mae’s app on both the Google Play and Apple Store, and its Apple app is rated 4.6 stars out of 5. In contrast, College Ave’s mobile apps have few reviews on the Google Play and Apple Store.
Sallie Mae vs. College Ave trustworthiness and BBB ratings
Both Sallie Mae and College Ave have an A+ rating from the Better Business Bureau, a nonprofit organization focused on consumer protection and trust. The BBB rates companies by looking at their response to customer complaints, truthfulness in advertising, and openness about business practices.
However, just because a company has a good BBB rating doesn’t guarantee that you’ll have a good relationship with the business. Ask friends or family who have had firsthand experience with the lender before deciding to go with them.
Neither company has been involved in any recent scandals. You may feel comfortable borrowing from either company due to their clean history.
Frequently asked questions
Is College Ave the same as Sallie Mae?
No, College Ave is a separate company from Sallie Mae with separate loan offerings.
Does College Ave affect your credit score?
Yes, your payments on your student loans impact your credit score. If you miss or are late on payments, your score may go down. However, if you make on time and reliable payments, your score may improve.
Is Sallie Mae a good place to get a loan?
There’s no one answer to this question — this depends on your individual situation and what you’re looking to get out of your borrowing experience. As we’ve listed above, there are pros and cons to choosing Sallie Mae as a lender.