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 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.
“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.
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.
Compare student loan rates from top lenders
Compare now4. 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, 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
