Start with federal loans. Every private student loan review should say that first, and it matters more in 2026 than it did a year ago. Federal Direct loans come with fixed rates set by Congress, income-driven repayment, deferment and forgiveness programs that no private lender matches. File the FAFSA, take the subsidized and unsubsidized loans you are offered, and use a private lender like College Ave only for the gap that remains.
That gap got bigger for many families on July 1, 2026. Under the One Big Beautiful Bill Act, new graduate borrowers can no longer get Grad PLUS loans. Federal Direct Unsubsidized borrowing for graduate students is now capped at $20,500 a year and $100,000 in total, and students in professional programs such as medicine or law can borrow up to $50,000 a year and $200,000 in total. Parent PLUS loans now top out at $20,000 a year and $65,000 per dependent student. Borrowers already enrolled with an existing loan may keep the old limits for a limited transition period. Check your own numbers on studentaid.gov, because the caps decide how much private borrowing you actually need.
Once federal options are used up, College Ave is one of the more flexible places to fill the rest. Here is what it offers and where it falls short.
Rates by loan type
College Ave lends through partner banks (Firstrust Bank, First Citizens Community Bank and BTG Pactual Bank) and services the loans itself. All rates below include a 0.25% autopay discount and were posted as valid on October 15, 2026. They change often.
| Loan | Fixed APR | Variable APR |
|---|---|---|
| Undergraduate | 2.05% – 17.99% | 3.89% – 17.99% |
| Graduate (most programs) | 2.05% – 16.49% | 3.89% – 15.99% |
| Parent loan | 3.99% – 17.99% | 4.89% – 17.99% |
| Refinance | 6.99% – 13.99% | 6.99% – 13.99% |
The bottom of each range is reserved for the strongest applicants who also pick the shortest term and an in-school payment plan. Most borrowers will land somewhere in the middle, so use the soft-pull prequalification to see your actual offer before you apply.
The four ways to repay while in school
This is where College Ave earns its reputation. Students choose one of four in-school options for undergraduate and graduate loans:
- Full principal and interest. The cheapest path overall if the family can afford it.
- Interest only. Keeps the balance from growing while the student is enrolled.
- Flat $25 a month. A small payment that trims accrued interest without straining a student budget.
- Deferred. Nothing due in school, but interest builds and the loan costs more.
The difference is real. College Ave’s own disclosure for a $10,000 freshman loan shows a total cost of about $18,266 on the flat $25 plan with an 8-year term at 7.78% APR, versus about $21,502 on the deferred plan with a 10-year term at 8.35%. The rates differ because deferred loans price higher, so choosing to pay something during school helps twice.
Undergraduate borrowers can pick repayment terms of 5, 8, 10 or 15 years, and the full principal-and-interest payment is never less than $50 a month. Parent loans offer interest-only or full payments while the student is in school, with terms from 5 to 15 years.
Grace periods and training deferment for grad students
Graduate loans come with grace periods matched to the degree: 9 months for most master’s, MBA, law and health professions programs, 12 months for dental and 36 months for medical. College Ave also offers deferment during residency, fellowship or clerkship. With Grad PLUS closed to new borrowers, these program-specific features matter more for future doctors and lawyers who now need private loans for part of their cost of attendance.
Cosigners and approval odds
College Ave says 97% of its undergraduate loans are cosigned, which tells you how hard it is for a typical 18-year-old to qualify alone. The cosigner shares full legal responsibility for the debt. College Ave does allow a request to release the cosigner after the borrower builds credit and makes consistent on-time payments; the exact requirements are in the loan agreement, so read them before signing.
A new application is required each school year. College Ave’s Multi-Year Peace of Mind feature points to a 90% approval rate for returning undergraduates who reapplied with a cosigner in the 2020 to 2023 academic years. That is not a guarantee, but it eases the worry of being approved as a freshman and denied as a junior.
Loans can cover up to 100% of the school-certified cost of attendance minus other aid, with a $1,000 minimum. College Ave does not charge application or origination fees.
Where College Ave falls short
- No federal-style safety net. There is no income-driven repayment and no forgiveness tied to public service.
- High ceiling on rates. A borrower or cosigner with fair credit can see APRs near 18%, which is more expensive than the federal undergraduate rate.
- Yearly reapplication. Each new loan is a fresh credit decision, with a hard pull when you complete the application.
- Refinancing is not its strength. Its 6.99% refinance floor is higher than what some dedicated refinancers publish.
College Ave vs. Ascent
Ascent is the better fit for students without a cosigner, because it offers a non-cosigned credit-based loan and an outcomes-based loan for juniors and seniors with a 3.0 GPA or better. College Ave has more in-school repayment choices and longer grace periods for medical and dental students. If a parent is cosigning, prequalify with both: they use soft pulls, and the gap between offers can be a full percentage point or more.
For graduates who later want to refinance, a lender focused on high earners in healthcare, such as Laurel Road (now KeyBank), may beat College Ave’s refinance pricing.
Frequently asked questions
Does prequalifying with College Ave affect my credit?
No. Prequalification uses a soft inquiry. A hard credit check happens only when you submit the full application.
Can parents borrow from College Ave instead of using Parent PLUS?
Yes. College Ave’s parent loan lets a parent borrow in their own name, with approval based on the parent’s credit. Compare the offer with Parent PLUS carefully, since federal parent loans keep some discharge and repayment options that private loans lack.
What happens to grad students who already had Grad PLUS before July 2026?
Federal rules include a transition window that lets existing borrowers keep borrowing under the old rules for a limited period, generally up to three academic years or the end of the program, whichever comes first. Your school’s financial aid office can confirm your status.
Is a fixed or variable rate better?
Fixed is the safer default for loans you will carry for a decade. Variable rates can rise after you sign, and College Ave’s fixed starting rates are currently lower than its variable starting rates anyway.
Borrowing responsibly
A sound rule of thumb is to keep total student debt below the graduate’s expected first-year salary, and to borrow privately only after scholarships, grants, work-study and federal loans are exhausted. The CFPB’s paying-for-college tools can help compare aid offers side by side.
If private borrowing is still needed, College Ave makes it easier to keep costs down by paying something during school, and its program-specific grace periods are a good match for long training paths. Families with good credit should prequalify on the College Ave student loans page and compare the result with at least one other lender. Rates and terms can change at any time.
JustMobs rating: 4.4/5. Strong flexibility and transparent repayment examples, held back by a high rate ceiling and the usual private-loan limits.
