USAA Student Loans Alternatives
USAA’s student loan program was canceled in 2016, but borrowers can continue to repay their loans or refinance through another lender. If you need to take out additional private loans, there are many USAA alternatives you can consider.
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USAA is a major financial institution that offers financial products, such as loans, mortgages, and credit cards, to former and active-duty members of the U.S. Military.
In partnership with Wells Fargo, USAA issued private student loans until December 2016. Through this program, USAA members got a 0.25% interest rate discount on all Wells Fargo student loans.
If you’re a USAA member with an outstanding USAA student loan, this guide will show you how to refinance or repay your existing loan. And if you’re looking for alternatives to USAA student loans, we’ll help you explore your options.
In this guide:
Repaying Existing USAA Student Loans
Existing USAA student loan borrowers can continue to repay their loans as usual. The company didn’t issue any changes to current student loan borrowers; it simply isn’t issuing any new loans.
Your repayment terms, interest rate, and everything else should remain the same even though USAA stopped offering student loans.
Unless you have refinanced your student loan, it should still be managed by Wells Fargo. You can contact Wells Fargo Education Financial Services at 800-658-3567 regarding any issues with your loan such is if you are having trouble making payments or need to change your repayment plan.
Refinancing USAA Student Loans
If you have USAA student loans, you can refinance them to a lower interest rate and/or monthly payment if you are eligible. There is no cost to do this and most lenders don’t charge any fees.
To qualify, you will need a good credit score or a creditworthy cosigner. You should only refinance if you qualify for a lower rate than you are currently paying.
If you are considering extending your repayment term through refinancing your USAA student loans, you should know that your total loan cost could still increase even if you receive a lower rate.
USAA Student Loan Alternatives
There are many good alternatives to USAA student loans to pay for college. Before taking out a private student loan, you should exhaust all of your federal financial aid options first.
However, it’s common for students to require financial assistance beyond what federal lenders offer. If you’re looking for a private student loan alternative to USAA, you can check out our guide to the best private student loans or check out a few of the following options:
College Ave provides student loans to undergraduate students, graduate students, and parents. Plus, borrowers can choose from four different flexible repayment plans. The application process takes three minutes or less and there are never any fees to apply.
Here is a breakdown of their rates and terms for their undergraduate loan:
- Fixed Rates (APR): 4.72% – 12.94%
- Variable Rates (APR): 3.96% – 11.98%
- Loan Terms: 5, 8, 10, or 15 years
- Loan Amounts: $1,000 – 100% of the school-certified cost of attendance
Read our full review: College Ave Student Loans Review
Earnest provides private student loans for undergraduate and graduate students. To be eligible, students must be enrolled at least half-time in a qualifying school.
One of the great parts about Earnest is that they give you a lot of flexibility in repayment. You have the option to skip one payment a year, can defer payments if you go back to school or enter the military, and can put your loans in forbearance should you ever run into financial hardship.
Here is a breakdown of their rates and terms for Earnest’s student loan:
- Fixed Rates (APR): 4.39% – 12.78%
- Variable Rates (APR): 2.74% – 11.44%
- Loan Terms: 5, 7, 10, 12, 15
- Loan Amounts: $1,000 – Cost of Attendance
Read our full review: Earnest Student Loans Review
Citizens Bank offers a variety of student loan products including undergraduate loans, graduate loans, parent loans, and student loan refinancing. It offers competitive interest rates and borrowers with limited credit history have the option to apply with a cosigner.
Here is a breakdown of their rates and terms for the undergraduate loan:
- Fixed Rates (APR): 4.90% – 12.04%
- Variable Rates (APR): 3.99% – 11.64%
- Loan Terms: 5, 10, or 15 years
- Loan Amounts: $1,000 – $100,000
Read our full review: Citizens Bank Student Loans Review
To find other options, check out our list of student loan companies.
Author: Jamie Johnson