Key takeaways

  • College Ave is Bankrate's winner for best graduate school student loans and offers a lower starting fixed annual percentage rate (APR).
  • Sallie Mae gives you more time to pay certain loans off and flexibility if you do not attend college full-time.
  • Both lenders have no origination fees and offer forbearance options.

College Ave and Sallie Mae are student loan lenders offering many private student loan options. Each offers competitive student loan rate options with flexible terms to help you finance various educational paths.

College Ave offers short terms if you want to pay your balance off quickly. Sallie Mae provides more specialized education financing products than College Ave.

The best choice depends on your career and educational goals and how quickly you want to pay off your balance once you graduate.

Sallie Mae vs. College Ave at a glance

Sallie Mae College Ave
Interest rates 5.37% to 15.70% Variable APR; 4.25% to 15.49% Fixed APR (with autopay) 5.59%-17.99% Variable APR; 3.69%-17.99% Fixed APR (with autopay)
Repayment terms 10 to 15 years 5 to 15 years
Loan amounts $1,000 to full cost of attendance $1,000 to full cost of attendance ($150,000 maximum for some degrees)
Benefits Scholarship search tool; college-focused financial tools; quarterly FICO credit score; loans for students studying less than half time Extended deferment during fellowship or residency; four in-school repayment options; low minimum APRs
Drawbacks Poor customer reviews; few repayment term options; unclear eligibility requirements Poor customer reviews; $150,000 loan limit for some graduate degrees; few eligibility requirements disclosed

Sallie Mae student loans

Best for part-time students

Bankrate view

Sallie Mae is a well-known private student loan lender and one of very few to offer loan options to students who need funds for part-time education costs. That makes it a valuable tool for paying for summer, online, study abroad, or even professional certification courses.

  • You don’t have to be a full-time student to qualify: Sallie Mae loan funds can be used to pay for school expenses even if you don’t meet the half-time standard most lenders require.
  • 20-year term for residency loans: If you’re entering a medical or dental career, you can stretch your loan payments up to 20 years.
  • Co-signer release: Sallie Mae lets you apply for a co-signer release after as few as 12 on-time payments. Not all lenders offer this option, and 12 payments is a smaller requirement than most set.

Cons

  • Very little qualifying information on the website:  You won’t find much information about getting requirements to get approved for a Sallie Mae loan because the site doesn’t list things like minimum credit score or other requirements online.
  • Unclear forbearance policy: Sallie Mae’s website doesn’t explain this in detail, which could make it difficult to understand your options if you need extra time or help repaying your loan.
  • No short repayment term options: If you want a repayment term of less than 10 years, you’ll need to find a different lender because Sallie’s minimum is a decade. However, there is no penalty for repaying your loans early if you wish.

College Ave student loan

Better for graduate student loan options

Bankrate’s view

College Ave’s loans are fairly customizable, with options for both traditional and career schools. That flexibility and competitive student loan interest rates earned it Bankrate’s award for best student loans for graduate students. If rates drop or you want to change your repayment term, College Ave offers a student loan refinance option with terms of up to 15 years.

  • You don’t have to be a full-time student to qualify: Sallie Mae loan funds can be used to pay for school expenses even if you don’t meet the half-time standard most lenders require.
  • 20-year term for residency loans: If you’re entering a medical or dental career, you can stretch your loan payments up to 20 years.
  • Co-signer release: Sallie Mae lets you apply for a co-signer release after as few as 12 on-time payments. Not all lenders offer this option, and 12 payments is a smaller requirement than most set.

Cons

  • Very little qualifying information on the website:  You won’t find much information about getting requirements to get approved for a Sallie Mae loan because the site doesn’t list things like minimum credit score or other requirements online.
  • Unclear forbearance policy: Sallie Mae’s website doesn’t explain this in detail, which could make it difficult to understand your options if you need extra time or help repaying your loan.
  • No short repayment term options: If you want a repayment term of less than 10 years, you’ll need to find a different lender because Sallie’s minimum is a decade. However, there is no penalty for repaying your loans early if you wish.

How to choose between College Ave and Sallie Mae

Sallie Mae and College Ave are solid student loan lending companies with a long track record of financing higher education. However, there are some differences in the nuts and bolts of each lender’s loan offerings that you should know to make the right choice for you.

APR range

College Ave and Sallie Mae have nearly identical starting rates for their basic undergraduate student loans. Sallie Mae’s fixed and variable rates are capped slightly lower than College Ave’s, so it may be a better option for borrowers and co-signers with weaker credit scores.

Minimum credit score

Neither lender published minimum credit scores. Since borrowers may be as young as 16, they typically haven’t established a credit history or score. However, regarding co-signers, College Ave has a strict 600 minimum credit score requirement.

Repayment terms

We’ve prepared the following information so you can get a quick look at the various repayment options available at each lender. Pay special attention to deferment and grace period options to get an idea of how much time you’ll have before payments are due.

Terms Sallie Mae College Ave
Private student loans 10 or 15 for undergraduate
  • 5, 8, 10 or 15 years for undergrad, grad, MBA and career
  • 5 to 15 year for parents loans
Graduate loans
  • 15 for MBA, law, health professionals, general graduate
  • 20 for medical and dental
20 years for dental, law and medical school
Refinance loans No 5 to 15 years
Repayment options
In-school interest and principal payments No Yes
Interest only Yes Yes
Fixed in-school payment Yes, $25 per month while in school and during grace period Yes, $25 per month while in school
Deferment Yes while in school half time Yes, while in school
Grace period 
  • 6 months for undergrad, grad, MBA and health professionals
  • 12 months for law and dental school
  • 36 months dental school
6 to 36 months, depending on type of loan

If you have the income, you can request a student loan term of as little as five years with College Ave — half of the minimum required for a Sallie Mae loan. But with no prepayment penalty, there’s no downside to repaying a Sallie Mae loan early.

Both cap loan terms at 15 years for most degrees, though Sallie Mae offers 20-year terms if you’re financing a medical or dental residency. Law students get a little more time to repay at College Ave with 20 years terms available compared to Sallie Mae’s 15-year minimum.

Unlike College Ave, Sallie Mae doesn’t offer the option to make full loan payments while you’re still enrolled.

Loan amount

Both lenders let you finance as little as $1,000 up to the total cost of attendance (minus other financial aid) for most degrees.

However, College Ave caps certain degree programs at $150,000, including dental, law, medical and business schools. It also caps refinancing loans at $150,000 for non-graduate, professional, medical, dental, pharmacy and veterinary doctorate degrees.

Fees

Neither lender charges origination fees, and each charges late fees of 5 percent of the past-due amount up to $25. Sallie Mae also charges a $20 fee for a returned check.

The bottom line: Which lender is better?

Both lenders offer competitive rates and flexible repayment terms to help you pay for your education. College Ave may be the better choice for graduate school programs and if you plan to make payments while in school. Sallie Mae can help you finance part-time attendance.

Compare more lenders before applying

If Sallie Mae and College Ave don’t quite meet your needs, check out a few more student loan lenders.