Bank of America Student Loans: What Happened

At one point, Bank of America (BoA) was one of the nation’s largest issuers of private and federal student loans. But in 2008, the company stopped offering private student loans altogether. Between 2014 and 2017, BoA sold off its entire $3.9 billion student loan portfolio.

Bank of America still offers resources for learning about student loans, but it is no longer issuing new loans to borrowers. Here’s everything you need to know about Bank of America student loans, plus alternative financing options to consider.

Table of Contents

Does Bank of America offer student loans?
What if I already have a Bank of America student loan?
Alternatives to Bank of America student loans

Does Bank of America offer student loans?

No, Bank of America no longer offers student loans. In 2008, it announced it would stop offering private student loans. The company began selling off its private loan portfolio and instead focused solely on student loans backed by the federal government.

Like many lenders, Bank of America made the switch after deciding the student loan market was unprofitable due to the 2008 financial crisis. After leaving the private student loan business, BoA transitioned into offering federal loans in partnership with the U.S. Department of Education.

These included Stafford Loans, Parent PLUS Loans, and others offered under the Federal Family Education Loan Program (FFELP). This was a safer move for banks during a period of financial instability.

However, in early 2015, Bank of America announced it was selling its $2.7 billion federally backed student loan portfolio. So BoA is no longer originating new loans—but because it once offered federal and private student loans, many borrowers are still repaying their BoA loans.

What if I already have a Bank of America student loan?

If you have a Bank of America student loan, it might have been sold off to a new provider. You can find out your new lender in the following ways.

Look through your personal files: Loan servicers are required to send a notice when the servicing company changes. So you likely got a letter from Bank of America with an update. If you keep old correspondence, look through your files to locate the latest servicing details.
Check your credit report: Visit AnnualCreditReport to get a free copy of your three credit reports. All your outstanding loans should be listed, each tagged with a loan type. Look for “student loan,” and the servicer is listed under “company.”
Search the National Student Loan Data System: The NSLDS database is strictly for federal student loans. You can log in and search for your outstanding loans using your Federal Student Aid ID.

Once you find the servicer that took over your Bank of America student loan, review the loan terms. You may consider refinancing your student loan with a new lender, which can save you money if you find a lower interest rate. Just know that you can only refinance with a private lender, so federal student loans that are refinanced will lose their federal benefits.

Alternatives to Bank of America student loans

If you qualify for federal student loans, you should start there when seeking alternatives to BoA. Federal loans offer income-driven repayment plans, loan forgiveness options, and longer forbearance programs than private loans.

However, you can take out a private loan if you don’t qualify for federal loans or if you max out the amount available to you in federal loans. Because Bank of America no longer offers student loans, you’ll have to apply with another lender. The student loan companies listed below are popular alternatives worth considering.

Lender	Rates (APR)	Grace period
College Ave	4.07% – 16.69%	6 months
Sallie Mae	4.50% – 16.70%	6 months
Earnest	4.11% – 16.20%	9 months
SoFi	4.44% – 14.30%	6 months

Comparison of undergraduate student loans

College Ave

Best Overall

5.0 _/5

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Why College Ave is a good alternative to Bank of America

College Ave offers flexibility and convenience that closely align with what Bank of America once provided. Like BoA, College Ave allows you to borrow up to the full cost of attendance, ensuring you can cover your educational expenses entirely.

It stands out with its ability to let borrowers choose their repayment terms, similar to BoA’s previously customizable loan options. The fast decision-making process, where you can find out if you qualify within three minutes, mirrors the efficiency BoA was known for.

Additionally, College Ave’s partnership with Payce Rewards adds an extra layer of financial flexibility, akin to BoA’s past rewards programs.

You choose your repayment terms
Cover up to 100% of your cost of attendance
Get a decision in just 3 minutes

Sallie Mae

Best for Cosigners

4.8 _/5

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Why Sallie Mae a good alternative to Bank of America

Sallie Mae, one of the largest private student loan lenders, offers a range of loans and benefits that make it a strong alternative to Bank of America. Its Multi-Year Advantage program, ensuring that 90% of borrowers qualify for future funding, provides continuity that BoA customers once relied on.

Sallie Mae’s fast approval process—within 10 minutes—and its short cosigner release period of just 12 on-time payments offer a level of convenience and borrower protection that rivals what BoA offered with its federal loan products.

The ability to borrow up to 100% of school-certified costs directly parallels the comprehensive coverage BoA provided.

Shortest cosigner release period
Loans for undergraduates, graduates, and career training
Get a decision within 10 minutes

Earnest

Best for No Fees

4.7 _/5

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Why Earnest is a good alternative to Bank of America

Earnest offers student loans to undergraduates and graduates with several repayment terms and in-school payment options. You can find out whether you’re eligible for an Earnest student loan in two minutes without affecting your credit.

Borrow between $1,000 and 100% of the cost of attendance, and choose to pay off your loan over five to 15 years. You have several repayment options while still in school. One drawback with Earnest is that it doesn’t offer cosigner release.

Earnest lets borrowers set up biweekly payments, which may be easier to align with their paychecks. Also, you have nine months after leaving school to start making payments. The ability to skip one payment each year may come in handy if you lose your job or have an emergency.

No origination, late payment, or prepayment fees
Ability to skip one payment per year
Check your rate without affecting your credit

SoFi

Best Member Benefits

4.7 _/5

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Why SoFi is a good alternative to Bank of America

SoFi is a strong alternative to Bank of America due to its comprehensive suite of financial services and borrower-friendly benefits.

Like BoA, SoFi offers competitive rates and allows borrowers to finance up to the full cost of attendance. SoFi stands out with its member benefits, such as career coaching and networking events, which go beyond traditional loan offerings and mirror BoA’s history of providing added value to its customers.

Additionally, SoFi’s flexible repayment options, including the ability to refinance existing student loans, offer a level of customization and financial management similar to what BoA once provided.

The absence of fees and access to unemployment protection further position SoFi as a borrower-centric lender, making it a compelling alternative for those who valued BoA’s blend of financial stability and customer care.

Member benefits such as networking events and financial planning
Flexible repayment options with multiple terms
Ability to refinance existing loans

Recap: Bank of America alternatives

Lender	Rates (APR)	Grace period
College Ave	4.07% – 16.69%	6 months
Sallie Mae	4.50% – 16.70%	6 months
Earnest	4.11% – 16.20%	9 months
SoFi	4.44% – 14.30%	6 months

Comparison of undergraduate student loans