Bank of America once offered both federal and private student loans, but the company hasn’t offered education loans for more than a decade. The bank cut its private student loans program in 2008, and it stopped issuing federal loans through the Federal Family Education Loan program in 2010.
Though you can no longer borrow for college from Bank of America, there are other alternatives available. And if you already have a loan originally issued by the bank, you may consider refinancing your Bank of America student loans.
Does Bank of America offer student loans?
After selling off its student loan portfolio in 2017, Bank of America no longer offers or services student loans after .
“Since the sale, it’s quite possible for the loans to be sold multiple times, so you may have a different servicer than you did last year or five years ago,” says Kat Tretina, a certified student loan counselor.
If you aren’t sure who your loan servicer is, you can request copies of your credit reports by visiting AnnualCreditReport.com. You can also log in to your StudentAid.gov account to view a list of your current federal loans and who services them.
Best private student loans
Bank of America doesn’t offer student loans, but there are other lenders to consider if you need to borrow money to cover your college expenses. It’s important to compare your options when looking for a private student loan that meets your needs.
The companies in the table below are Credible’s approved partner lenders.
Advertiser DisclosureLoan Amounts
$1,000 up to 100% of the school-certified cost of attendance
Overview
College Ave offers a wide range of in-school loans for nearly every type of degree. There are a number of repayment options, and borrowers can choose a unique eight-year repayment term. Plus, graduate, dental, and medical students receive extended grace periods.
You may get easy funding for multiple years — 90% of undergraduates are approved for additional student loans when they apply with a cosigner. However, it can be difficult to remove a cosigner for your loan later on, as you must complete at least half of your repayment term before becoming eligible. That’s significantly longer than some lenders, which may only require one to two years of payments before releasing a cosigner.
Loan terms
5, 8, 10, or 15 years for most borrowers (law, dental, medical, and other health profession students have up to 20 years)
Loan amounts
$1,000 minimum up to your school’s annual cost of attendance; lifetime limits depend on your degree and credit profile
Cosigner release
After half of the scheduled repayment period has elapsed
Eligibility
Must be a U.S. citizen or permanent resident at an eligible institution. International students with a Social Security number and a qualified cosigner may also qualify. Applicants who can’t meet financial, credit, or other requirements may qualify with a cosigner.
Overview
Ascent offers several unique borrowing options that you don’t typically see with private lenders. In addition to traditional student loans for undergraduate, graduate, and medical programs, college juniors and seniors may qualify for its Outcomes-Based Loan — which doesn’t require established credit or a cosigner. Instead, Ascent reviews alternate factors such as your school, major, and GPA to determine your eligibility.
Ascent also offers a wide range of loan terms and repayment plans to choose from. You may even qualify for its Progressive Repayment plan, which allows you to start with small payments that gradually increase over time. Borrowers who use a cosigner can release them after as few as 12 payments, though international students don’t qualify for this option.
Loan terms
5, 7, 10, 12, 15, or 20 years
Loan amounts
$2,001 minimum up to your school’s annual cost of attendance; lifetime limits of $200,000 for undergrads and $400,000 for graduates
Eligibility
Must be a U.S. citizen or DACA student enrolled at least half time at an eligible institution. International students with a qualified cosigner may also qualify. Applicants who can’t meet financial, credit, or other requirements may qualify with a cosigner.
Loan Amounts
$1,000 to $99,999 annually ($180,000 aggregate limit)
Overview
Powered by Cognition Financial, Custom Choice offers student loans for undergraduate and graduate students starting at $1,000. You can borrow up to $99,999 per year with a total aggregate limit of $180,000.
If you apply with a cosigner, you may be able to release them from your loan after 36 on-time payments. You can also receive a 0.25 percentage point discount on your interest rate by setting up autopay, as well as a 2% reduction of your principal balance after graduating.
Custom Choice doesn’t charge application, origination, prepayment, or late fees. It also lets you pause payments through forbearance if you qualify for its natural disaster or unemployment protection programs.
Loan amounts
$1,000 to $99,999 per year (lifetime limit of $180,000)
Eligibility
Must be a U.S. citizen or permanent resident at an eligible institution. You must also meet Custom Choice’s underwriting criteria for income and credit, or apply with a cosigner who does. Eligible noncitizens such as DACA residents can also qualify by applying with a cosigner who’s a U.S. citizen or permanent resident.
Loan Amounts
$1,000 up to 100% of school-certified cost of attendance
Overview
Sallie Mae offers the Smart Option Student Loan to undergraduate and graduate students. You can borrow up to your school-certified cost of attendance and apply just once annually to get the funds you need for the entire academic year. Plus, it may be easy to get reapproved for your future years of study — undergraduates have a 97% approval rate when they return to Sallie Mae with a cosigner.
Through Sallie Mae, you can find a variety of loans designed for specific needs, including loans for MBA programs, law school, bar study, medical school, medical residency, dental programs, dental residency, and other health profession programs. However, this lender no longer offers a career training loan.
Loan terms
10 to 15 years for Smart Option Student Loan; up to 15 years for law school and bar study loans; up to 20 years for medical school, medical residency, dental school, dental residency, and health professions loans
Loan amounts
$1,000 up to school-certified cost of attendance
Eligibility
Must be a U.S. citizen or permanent resident enrolled in an eligible program. Noncitizens may qualify by applying with a cosigner who’s a U.S. citizen or permanent resident.
Loan Amounts
$1,001 up to 100% of school certified cost of attendance
Overview
INvested is an Indiana company that offers affordable student loans exclusively to state residents. Loans are available to Indiana students and parents who can meet income and credit requirements, or who have an eligible cosigner. Borrowers can borrow as little as $1,001 or as much as the school-certified cost of attendance minus other aid.
INvested provides detailed information on eligibility so borrowers can quickly determine whether to apply for a loan — however, there’s no option to prequalify with a soft credit check. Cosigner release is also available after just 12 on-time payments, considerably shorter than many other lenders.
Loan amounts
$1,001 minimum, up to the school certified cost of attendance
Eligibility
Loans are available to Indiana residents only. Borrowers must have a FICO score of 670 or higher, a 30% maximum debt-to-income ratio or minimum monthly income of $3,333, continuous employment over two years, and no major collections or defaults in recent years. Borrowers who do not meet income or credit requirements can apply with a cosigner.
Loan Amounts
$1,500 up to school’s certified cost of attendance less aid
Overview
Massachusetts Educational Financing Authority (MEFA) is a not-for-profit lender that offers low-cost undergraduate and graduate school loans to students nationwide. While only fixed-rate loans are available, interest costs may be lower than what you see with other private loans.
While you can apply with a cosigner to lock in the best rate possible, removing that cosigner later may be tough. Only one repayment plan allows cosigner release, and you must make four years of consecutive on-time payments and meet other credit and income requirements to qualify.
Loan amounts
$1,500 minimum up to school-certified cost of attendance
Eligibility
Must be a U.S. citizen or permanent resident, enrolled at least half time at a degree-granting, nonprofit institution, and must maintain satisfactory academic progress. Must have no history of default on an education loan and no history of bankruptcy or foreclosure in the past 60 months. Applicants who can’t meet the minimum credit and income requirements may apply with a cosigner.
Loan Amounts
$1,000 to $350,000 (depending on degree)
Overview
Citizens offers a variety of student loan types, including loans for undergraduates, graduate students, and parents. Perhaps the most unique feature of Citizens student loans is the option for multiyear approval. If you qualify, you can apply once and borrow for future years with a more streamlined process that only involves a soft credit inquiry.
Student borrowers can defer payments while in school and for six months after graduating. You can also score a 0.25 percentage point reduction on your interest rate for setting up autopay, as well as an additional 0.25 percentage point loyalty discount if you or your cosigner already have a qualifying account with Citizens.
Loan terms
5, 10, or 15 years for student loans; 5 or 10 years for parent loans
Loan amounts
$1,000 minimum, up to a maximum of $150,000 for undergraduate and graduate degrees; $250,000 for MBA and law; and $180,000 or $350,000 for health care student loans, depending on the degree type
Eligibility
Must be a U.S. citizen or permanent resident enrolled at least half-time in a degree-granting program at an eligible institution. International students can apply with a cosigner who’s a U.S. citizen or permanent resident.
Loan Amounts
$1,000 up to cost of attendance
Overview
Education Loan Finance (ELFI) is a division of Tennessee-based SouthEast Bank owned by Education Loan Finance, Inc., a non-profit whose mandate is to provide access to higher education. ELFI launched in 2015 and offers undergraduate, graduate, and parent private student loans as well as student loan refinancing.
ELFI student loans and refinance loans are available to residents in all U.S. states including Puerto Rico. Borrowers can benefit from no application, origination, or prepayment fees. ELFI also offers flexible repayment terms and competitive rates, however there’s no cosigner release option and the lender doesn’t offer any discounts.
Loan amounts
$1,000 - Cost of attendance
Cosigner release
A cosigner may not be taken off a loan, but the borrower can apply for a new loan without their cosigner.
Eligibility
All 50 states as well as Washington DC and Puerto Rico.
Methodology
Credible evaluated private student loan lenders in 10 different categories to determine the best alternatives to Bank of America student loans. This included interest rates, repayment options, terms, fees, discounts, customer service availability, as well as eligibility requirements and cosigner release options.
Can I refinance my BofA student loans to change lenders?
“If a borrower has outstanding BofA loans and is unhappy with their existing loan servicer, they can refinance their debt to get another servicer,” says Tretina. “However, Bank of America did handle federal FFEL loans, so keep in mind that refinancing those loans will cause you to lose out on federal loan benefits.”
Still, refinancing may make sense if you want to lower your loan’s interest rate and save money. Follow these steps to refinance your student loan:
1. Check your credit
Since your credit score is a significant factor in determining your eligibility, consider reviewing your credit report and credit score before you apply for a student loan refinance. Your lender may require you to have a minimum credit score. Generally, the higher your credit score, the better your odds of qualifying for a loan and receiving a favorable interest rate. If your credit score falls short of the minimum requirement, you may want to apply with a cosigner who has good credit or take some time to improve your credit before applying.
2. Pay down debt
Another eligibility factor for private student loans is your debt-to-income (DTI) ratio, which is the amount of debt you carry compared to your gross income. The maximum debt-to-income ratio when refinancing a student loan varies by lender but generally speaking, the lower, the better.
Keep in mind:
You can lower your DTI ratio by paying off debt or increasing your income.
3. Compare rates with multiple lenders
Researching student loan refinancing rates and comparing multiple lenders can be an effective strategy for finding the best student loan offer. While finding loan offers with the lowest interest rate is important, you should also consider other factors such as the repayment terms, monthly payment, fees, and eligibility requirements.
4. Choose a lender and loan offer
Review any loan offers you receive and choose the loan with the best interest rate and terms. You can enter the loan terms into a student loan refinancing calculator to see how much money you might save with your new interest rate.
Running the numbers can help you determine the best loan term for you, such as a five-year, 10-year, or longer repayment term. While a shorter term may help you snag a lower interest rate and pay off your debt faster, your monthly payment may be higher.
By contrast, a longer repayment term could lower your monthly payments, but you’d pay more interest over the loan term and it would take longer to wipe out the debt.
5. Fill out a loan application
You must complete a full application to lock in your new interest rate. Your lender will typically run a hard credit inquiry and request supporting documents, such as:
- Government-issued ID or driver’s license
- Social Security number
- Paperwork on your existing Bank of America loans
- Proof of income
- Proof of graduation
6. Sign your new loan documents
Once your lender approves your new loan, you’ll sign the loan documents. But don’t stop making payments on your old loans just yet, since it may take the new lender a few weeks to process your refinance loan. Avoid late fees and negative credit marks on your credit report by making payments on your old debt until the account is closed for good.
Can I consolidate my federal student loans from Bank of America?
Bank of America doesn’t issue federal student loans anymore. Still, borrowers with FFEL loans from Bank of America or another lender might take advantage of Direct Consolidation Loans to combine multiple federal loans into one.
You don’t need good credit to qualify for a Direct Consolidation Loan, but you won’t receive a lower interest rate either. Instead, you’ll receive a fixed rate that’s the weighted average of your current loans’ rates, rounded up to the nearest one-eighth of 1%.
With only a single monthly payment to remember, federal student loan consolidation can make managing your student loan debt easier without sacrificing access to federal repayment options and forgiveness programs.
Check Out: How to Consolidate Your Student Loans
Meet the expert:
Tim Maxwell
Tim Maxwell is a financial writer with over two decades of experience. Tim’s work has appeared in USA Today, Washington Post, Bankrate, LendingTree, Fox Business, Credible and more. He also publishes Incomist, a personal finance site that focuses on paying off debt by earning extra income in creative ways.
