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Business Insider's personal finance team compared Custom Choice Student Loans to the best private student loans and found it to be an industry leader thanks to low rates and no fees.
Custom Choice Undergraduate Student Loans On Custom Choice's website Insider’s Rating A five pointed starA five pointed star
A five pointed star
A five pointed star
A five pointed star
Icon of check mark inside a promo stamp It indicates a confirmed selection. Perks 0.25% discount on regular rates with auto pay Regular Annual Percentage Rate (APR) 5.39% - 15.57% variable and 4.43% - 14.04% fixed Fees Recommended Credit Undisclosed Loan Amount Range $1,000 - $99,999Custom Choice has competitively low rates compared to similar student loan lenders. The lender also will knock off 2% of your loan balance after you graduate.
Custom Choice has competitively low rates compared to similar student loan lenders. The lender will also deduct 2% of your loan balance after you graduate. Custom Choice is a great option for borrowers who want to avoid fees and pay competitive rates.
Custom Choice offers both fixed-rate and variable-rate undergraduate and graduate loans. Custom Choice allows you to apply with a cosigner, which may reduce your interest rate and the overall cost of your loan. Loans have a term length of seven, 10, or 15 years.
If you choose to make automatic payments from a checking or savings account, you'll receive a 25 basis-point discount on your rate. Additionally, Custom Choice offers a 2% reduction on your loan's principal after you graduate.
Custom Choice will perform a soft credit inquiry when showing you your rates, which does not impact your credit score. After you choose your loan options and send in your application, the lender will conduct a hard credit inquiry, giving the company a comprehensive look at your credit history, but also potentially dinging your score simultaneously.
Be sure to pursue federal student loan options before considering private student loans, including a Custom Choice loan, as you can often get better terms and protections through the government.
To contact Custom Choice's customer support, call the lender, email, or reach them via physical mail.
Custom Choice offers student loans for only a couple of types of degrees, including undergraduate and graduate loans.
Custom Choice offers variable-rate and fixed-rate undergraduate loans, and the interest rates on these loans are comparable to or lower than competing lenders' rates.
A special feature Custom Choice offers is a 2% reduction of your loan's principal after you graduate. This may not seem like much, but will save you some on the overall cost of your loan.
Custom Choice's graduate student loans have the same features as its undergraduate loan offerings — three options for repayment term lengths, competitive APRs, and a $1,000 loan minimum.
To be eligible for a Custom Choice student loan, you must meet the following requirements:
1. Gather the required information. This includes your Social Security number, your school of enrollment, your enrollment status, the loan amount you need, your address, and other financial documents.
2. Fill in the details of your online application. It will take just a few minutes to complete, and then you'll get your rates.
3. Send the required supplementary documents. Custom Choice may require certain financial documents, including proof of income and residency.
4. Accept your loan offer. After you get all your documents in order, Choice Choice will send you a formal loan agreement. Then it will fund your loan after you sign on the dotted line.
To apply for a student loan with Custom Choice, you'll need to provide your Social Security Number, proof of income, proof of acceptance to an accredited institution, and the loan amount you'll need. You'll also need to supply a recent pay stub, monthly housing cost, and your anticipated graduation date. If applying with a cosigner, they'll need to provide their Social Security Number, proof of income, as well as a government-issued ID.
Borrowers can choose whether they want a fixed interest rate for the life of the loan or a rate that changes with the market. For fixed-rate loans, interest rates range from 4.25% with a 0.25% AutoPay discount, up to 14.02%. Variable rate loans start at 5.46% with the AutoPay discount and reach up to 14.92%
There are no fees associated with Custom Choice student loans. This includes no origination fees, no prepayment fees, or late fees. You can take out a loan with a term of either seven, 10, or 15 years.
Custom Choice offers several options to repay your loans: deferred, flat, interest-only, and immediate payments. The best repayment plan for you depends on your situation.
Deferred and flat payments will cost more than interest-only or immediate payments because interest will accrue while you're in school and during your grace period. This interest will then capitalize, meaning it will be added onto your loan balance after periods of nonpayment, including forbearance, deferment, and after your grace period. This will increase your overall loan principal, and you'll later pay interest on that higher amount, upping the total cost of your loan.
Earnest Undergraduate Student Loans offers six repayment term length options, while Custom Choice has only three options.
Custom Choice has the lowest maximum interest rate on both fixed-rate and variable-rate loans for undergraduates and graduate students — which could mean it's a good choice if your credit isn't in the best shape. Earnest offers the lowest minimum interest rates on these types of loans, so if your credit score is excellent, Earnest may be a good choice.
Custom Choice and Sallie Mae both have three repayment term options. However, Sallie Mae Undergraduate Student Loans determines your repayment term length for you, so another lender will be better if you want to choose your own length.
Neither lender charges origination fees or prepayment penalties, but Sallie Mae does charge a late payment of 5% of the amount due, capped at $25.
What are the interest rates for Custom Choice student loans? Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.
Custom Choice offers competitive interest rates, which vary based on the type of loan and the borrower's credit profile. Check its website for the latest rates.
How do I apply for a Custom Choice student loan? Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.
To apply for a Custom Choice student loan, complete your application online through the Custom Choice website. Follow the step-by-step process and submit the necessary documents.
Can I refinance my existing student loans with Custom Choice? Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.
Yes, you can refinance existing student loans with Custom Choice. It offers refinancing options for both federal and private student loans.
What repayment options are available with Custom Choice student loans? Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.
There are various repayment options available with Custom Choice. It provides various repayment plans, including standard, interest-only, and deferred repayment options.
Are there any fees associated with Custom Choice student loans? Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.
With Custom Choice, there are typically no origination fees or prepayment penalties. Review the loan terms for any additional charges.
We rate all student loan products in our reviews and guides on a 1-5 scale. The overall rating is a weighted average considering seven different categories, some of which are judged more heavily than others. They are:
Each category's weighting is determined based on its importance in the overall experience of taking out a student loan. For instance, rates and fees have the most significant impact on the total cost of your loan, so we weigh those the most heavily.
Ryan Wangman was a reporter at Personal Finance Insider reporting on personal loans, student loans, student loan refinancing, debt consolidation, auto loans, RV loans, and boat loans. He is also a Certified Educator in Personal Finance (CEPF). In his past experience writing about personal finance, he has written about credit scores, financial literacy, and homeownership. He graduated from Northwestern University and has previously written for The Boston Globe.
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