Bank of America Student Loan Alternatives
Bank of America student loans are no longer offered. However, you can compare the lenders below to find student loans from highly-rated lenders.
Many or all of the companies featured provide compensation to LendEDU. These commissions are how we maintain our free service for consumers. Compensation, along with hours of in-depth editorial research, determines where & how companies appear on our site.
Bank of America was at one point one of the largest issuers of student loans in the nation—offering private loans, federal loans, and even student loans like the Education Maximizer Loan and the Campus Edge student loan.
But this changed in 2008 when the company stopped offering private loans altogether. Between 2014 and 2017, the company sold off its entire $3.9 billion student loan portfolio.
Bank of America still has a portal for borrowers who need to repay their loans, but they are no longer issuing new student loans to borrowers. As a result, many people are looking for alternative lenders. The options below can be a good place to start your search.
On this page:
- Alternative to Bank of America Student Loans
- Options If You Still Have Bank of America Student Loans
- History of Bank of America Student Loans
- Compare Bank of America Student Loan Alternatives
Alternatives to Bank of America Student Loans
If you were looking to take out a student loan from Bank of America, the companies below are alternatives worth considering.
Student Loans for Attending School
College Ave
Rates (APR)
1.49% – 12.99%
Loan Amounts
$1,000 – 100% of school-certified cost of attendance
Repayment Terms
5, 8, 10, or 15 years
College Ave is our top-rated partner and offers student loans to undergraduates, graduates, and parents. If approved, you get to choose the loan term that meets your repayment needs.
- Variables rates: 1.49% – 11.98%
- Fixed rates: 4.39% – 12.99%
- Rate reduction: 0.25% automatic payment discount
- Fees: Late payment fee of 5% of the unpaid amount or $25, whichever is less
- Cosigner release: After 24 on-time payments
- In-school repayment: Full principal & interest, interest-only, flat $25, or deferred payment
- Grace period: 6 months, but can apply for up to 6 more months
Earnest
Rates (APR)
2.74% – 12.78%
Loan Amounts
$1,000 – 100% of school-certified cost of attendance
Repayment Terms
5, 7, 10, 12, or 15 years
Earnest offers student loans to undergraduates and graduates. Your eligibility can be checked in two minutes, with no commitment or effect on your credit. Once repayment has started, borrowers can skip a payment once per year.
- Variables rates: 2.74% – 11.44%
- Fixed rates: 4.39% – 12.78%
- Rate reduction: 0.25% automatic payment discount
- Fees: None
- Cosigner release: Not available unless you refinance with the company
- In-school repayment: Principal & interest, interest-only, fixed $25, or deferred payment
- Grace period: 9 months
Sallie Mae
Rates (APR)
1.25% – 12.59%
Loan Amounts
$1,000 – 100% of school-certified cost of attendance
Repayment Terms
5 – 15 years
Sallie Mae is one of the largest private student loan lenders in the industry. Some benefits of borrowing with the company include four months of free Chegg (valued at $100) and Multi-Year Advantage. Multi-Year Advantage allows students to get the money they need year after year.
- Variables rates: 1.25% – 11.35%
- Fixed rates: 4.25% – 12.59%
- Rate reduction: 0.25% automatic payment discount
- Fees: Late payment fee of 5% of the past due amount or $25; whichever is less
- Cosigner release: After 12 on-time payments
- In-school repayment: Interest-only, fixed $25, or deferred payments
- Grace period: 6 months
>>Read More: Best Private Student Loans
Student Loans for Refinancing
Earnest
Rates (APR)
2.39% – 6.67%
Loan Amounts
$5,000 – $500,000
Repayment Terms
5 – 20 years
Earnest is our top-rated student loan refinance partner due to its low rates and flexible repayment terms. Borrowers can skip one payment per year without penalty, and you can set up biweekly automatic payments.
Earnest offers a unique application and approval process in which they consider a variety of factors instead of just your credit score.
- Minimum credit score: 650
- Minimum income: $35,000
- Variable rates: 2.39% – 6.67%
- Fixed rates: 3.20% – 6.67%
- Rate reduction: 0.25% for autopay
- Fees: None
ELFI
Rates (APR)
2.39% – 6.69%
Loan Amounts
$15,000 – Total outstanding loan balance
Repayment Terms
5, 7, 10, 15, or 20 years
ELFI is a great option for borrowers looking to refinance their student loans. This lender offers competitive rates, a number of repayment terms to choose from, and has no application or origination fees.
- Minimum credit score: 680
- Minimum annual income: $35,000
- Variables rates: 2.39% – 6.01%
- Fixed rates: 3.21% – 6.69%
- Rate reduction: Not available
- Fees: Late fee of 5% or $50, whichever is less
Citizens Bank
Rates (APR)
2.72% – 8.63%
Loan Amounts
$10,000 – $500,000
Repayment Terms
5, 7, 10, 15, or 20 years
Citizens Bank is a national bank that offers student loan refinancing. If you prefer a large bank with brick-and-mortar locations, Citizens Bank is one of your best options.
- Minimum credit score: Not disclosed
- Minimum income: Not disclosed
- Variable rates: 2.72% – 8.38%
- Fixed rates: 3.49% – 8.63%
- Rate reduction: 0.25% automatic payment discount and 0.25% discount for having a bank account with Citizens Bank
- Fees: None
>> Read More: Best Student Loan Refinance Companies
Options If You Still Have Bank of America Student Loans
Due to Bank of America’s shift away from student lending, it has not been a primary focus for the company. This has led many borrowers to feel unhappy with the service they are receiving and wonder if they could receive better rates elsewhere.
Fortunately, borrowers who meet certain eligibility requirements should be able to refinance their student loans to get a new lender and possibly a better interest rate. If you are interested in this option, you can check out our guide to see our picks for the best student loan refinance companies.
The History of Bank of America Student Loans
In 2008, Bank of America announced it would stop offering private student loans and other student loan options to borrowers to cover education expenses. The company began to sell off its private loan portfolio and began focusing on student loans sponsored by the federal government.
Like many lenders, Bank of America made the switch after deciding the student loan market was unprofitable due to the ongoing financial crisis. After leaving the private student loan business, Bank of America transitioned into offering federal loans in partnership with the U.S. Department of Education.
This included Stafford Loans, Parent PLUS Loans, and other loans offered under the Federal Family Education Loan Program (FFELP). This was a safer move for banks during a period of financial instability.
Then in early 2015, Bank of America announced it was selling its federally-backed student loan portfolio. They placed their $2.7 billion loan portfolio for sale.
Since Bank of America once offered both federal and private student loans, there are still many borrowers repaying loans they took out from Bank of America.
Bottom line
The 2008 financial crisis affected many banks, including Bank of America. The company used to offer a competitive product and was one of the largest companies in the student loan industry.
If you still have Bank of America student loans and are unhappy with the service you’ve been receiving, there are other options available. By refinancing them through another lender, you could be saving yourself money in the long run. And if you’re looking to take out a new loan entirely, there are many good lenders who can help you.
Recap of Alternatives to Bank of America Student Loans
| Lender | Product | Rates (APR) | Loan Amounts |
| College Ave | In-school | 1.49% – 12.99% | $1,000+ |
| Earnest | In-school | 1.78% – 12.78% | $1,000+ |
| Sallie Mae | In-school | 1.25% – 12.59% | $1,000+ |
| Earnest | Refinance | 2.39% – 6.67% | $5,000 – $500,000 |
| ELFI | Refinance | 2.39% – 6.69% | $15,000+ |
| Citizens Bank | Refinance | 2.72% – 8.63% | $10,000 – $500,000 |
