The Bank of America used to be the largest student loan lender for many years. It used to provide student loans such as Graduate PLUS loans, Stafford Loans, PLUS loans, Federal Consolidation Loans, and the Federal Family Education Loan Program (FFELP). As we speak, federal loans are now issued by the US Department of Education’s Direct Loans Program. However, that has changed, and the bank does not directly offer Bank of America student loans refinance.
Bank of America also used to offer private student loans for education. However, student loans have been suspended until further notice. Maybe one of these coming days, the bank will resume student loan services. It could give both those certified by the school and that which were not. The private student Loans and Bank of America TERI loans were the certified loans, while the Campus Edge Student Loan and the Education Maximizer Loan were the uncertified ones.
While Bank of America stays mute on student loans, some institutions are still offering private student loans no cosigner no credit check and thus serving as alternatives to the Bank of America. Ascent gives out non-consigned student loans for undergraduate students. You must be a college junior to graduate in 9 months’ time, be a U.S. citizen or have U.S. permanent resident status, the academic performance of at least 2.9 GPA and be at least 18 years old.
What is the Bank of America student loan refinancing options?
We have noted that the Bank of America is not currently offering student loans. However, all is not lost as there are other options to help you. I just highlighted Ascent above. If you do not qualify for a student loan with Ascent, you can apply it for their future income-based loan.
The following products can assist you greatly in terms of student refinancing or consolidating. Let us see them.
i) Cash-out refinance
The option comes about if you have equity in your home. You can use home equity to get a loan. The bank allows you to pay your first mortgage loan and take the remaining equity in cash so that you can use it to pay off your student loan. The option is useful if your mortgage has signs of improvement soon. The option is also suitable for personal loans for students with no income.
One can borrow up to 85% of your home value whereby the interest rates may be variable, fixed, or fixed and then variable. A loan secured by your house is better than the loan unsecured since it has low-interest rates. Unsecured loans have high-interest rates because they are risky to the banks. However, loans secured by your house may put your home at risk for foreclosure.
ii) Home equity line of credit (HELOC)
The home equity line of credit allows a student to keep your existing mortgage and take the loan in addition to it. You can borrow up to 90% of your home value. There are draw periods with HELOC, of which they mostly occur after ten years, whereby you can withdraw from your line of credit.
The principal and interest payments begin during the draw period. Once your line of credit expires, you will not be able to withdraw funds, and you will have 20 years to repay the balance.
iii) Balance transfer credit card
The Bank Americard card is a good option for balance transfer credit cards. The card has no balance transfer fee during the introductory period. It also has no annual fees. The Purchase APR for the card is 22.99%, while the balance transfer APR is 22.99%. The card requires a credit score of 700 – 850.
Which are the alternatives to the Bank of America Student Loans Refinance?
Now that the Bank of America stopped the issuance of student loans, the following are the alternative student loans to keep you going with your studies.
LendKey is an online platform that links borrowers to various lenders, such as credit unions and community banks. Here, students can get personal loans for fair credit. Interest rates are low as well, and their terms and conditions are friendly.
LendKey has a fixed APR that ranges from 3.39% – 7.75%. The variable APR ranges from 2.7% – 5.25% while the loan amount is $5K – $300K. The loan term is 5 – 20 years. See more.
Another option will be CommonBond that has a fixed APR of between 3.2% and 7.25%. The variable APR ranges from 2.72% – 7.4% while the loan amount is $5K – $500K. The payment duration is 5-20 years. See more.
3) College Ave Student Loans Refinance
College Ave Student Loans Refinance is a great for student loan refinancing. It has a fixed APR of 4.64% – 8.99% and a Variable APR of 3.64% – 8.99%. The loan amount ranges from $5K – $300K and requires you to repay within 5 – 20 years. See more.
4) SoFi Student Loan Refinancing
SoFi Student Loan Refinancing is popular for financing students with equality. The company is donating $1 million to organizations geared to fighting racism as well as supporting colors. The company offers fixed rates from as low as 3.20% APR (with AutoPay) to 6.69% APR (without AutoPay). It also has a variable APR from 2.99%- 6.69%.
People with a good credit history are charged low rates while those with high poor credit history receive high-interest rates. The rates may be lower in some states due to legal requirements.
SoFi has various products for student loans, including undergraduate student loans, graduate loans, and parent loans. Each of them has its terms and conditions.
There are other companies for credit finance apart from the above. Students can benefit from credit cards from various financial institutions to help them in their studies. Although the Bank of America currently does not have loans for students, it still has various products such as credit cards to benefit the students.
Can you get a student credit card from the bank of America?
The Bank of America offers credit cards to students. The most common credit cards for students at the bank of America include the following.
Bank of America Cash Rewards Credit Card for Students
The card offers 3% cash back in the category of your choice, which may include online shopping for your favorite goods, off-campus dining, and many more. The card does not charge any annual fee.
Moreover, you get 2% cash back at grocery stores and wholesale clubs. In addition, you will benefit from 1% cash back on all other purchases. In detail, you earn 3% and 2% cash back for the first $2,500 in the combined choice category, grocery store, or wholesale club purchases each quarter of the year.
The card is suitable for students because it offers you an opportunity to check your FICO score, has overdraft protection, 0$ liability guarantee, and supports mobile banking. See more details.
Bank Americard Travel Rewards for Students
The card has an introductory APR of 0% for 12 billing cycles. It has a variable standard APR of 14.99% – 22.99%. Again, the annual fee is $0 when the balance Transfer Fee is 3% of each transaction (minimum $10). The card earns you unlimited 1.5 points for every $1 you spend on all purchases. The points have no expiration dates. You also benefit from alerts about your repayment if you use mobile banking.
Again, earn 25,000 online bonus points upon making at least $1,000 in purchases in the first 90 days of your account opening. You can redeem the points for a $250 statement credit for travel purchases. See more.
How else is the Bank of America useful to students?
The Bank of America is also beneficial to students in other ways, such as sending and receiving money. If you are a student who studies in America and need people back home to send you money, you can use the Bank of America to receive the money. You have to provide the routing number for Bank of America to ensure that the funds come directly to your account.
Moreover, if you are working part-time and need to send money to people at home, you have to understand the guidelines for sending money internationally. You need to know how to transfer money using the routing numbers and account number. You should also ensure that you confirm all details before sending money.
Apart from using the bank to send and receive money, you can save your part-time job earnings. Also, you can borrow other kinds of loans from the bank and finance your needs.
The Bank of America is no longer offering student loans. If you are a student looking for student loan refinance, then the other alternatives will help you. However, the Bank of America remains relevant to students since you can send and receive money. You can also benefit from student credit cards. Above all, note that the Bank of America just suspended the student loans and will probably resume in the near future.