Capital One Student Loans: Alternatives to Consider
Capital One doesn’t offer student loans, although it does offer other forms of financing. For those trying to fund their college education, these other financial products are viable alternatives to Capital One student loans.
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.
Capital One is one of the largest banks in the U.S. in terms of deposits. It offers various financial products to borrowers, and many people assume they offer student loans. However, this bank does not provide that type of loan.
Capital One does offer home equity loans, credit cards, and personal loans that some people might consider to help cover the cost of school. However, that’s not what these products are specifically intended for.
Since Capital One doesn’t offer loans specifically for college students, consider alternative student loans.
Alternative Private Student Loans
Here are some alternative private student loan companies to consider.
College Ave Student Loans
Fixed Rates
4.39% – 11.98% (APR)
Variable Rates
1.79% – 10.97% (APR)
Loan Amounts
$1,000 – 100% of school-certified cost of attendance
LendEDU Rating: 5/5
College Ave is a private student loan lender with options for undergraduates and graduate students. Student loans from College Ave can be used to cover up to 100% of school-certified cost of attendance, which includes tuition, fees, books, housing, and other costs.
Here are some highlights of the undergraduate student loan:
- Repayment Terms: 5, 8, 10, or 15 years
- In-school repayment options: Full deferment, $25 monthly, interest-only, full principal & interest
- Grace Period: 6 months + option to apply for 6 more
- Cosigner Release: Yes; after 24 on-time monthly payments
- Unique benefits: You can apply and receive a credit decision within 3 minutes
Earnest
Fixed Rates
4.39% – 12.78% (APR)
Variable Rates
2.74% – 11.44% (APR)
Loan Amounts
$1,000 – 100% of school-certified cost of attendance
LendEDU Rating: 4.77/5
Earnest is an online lender offering private student loans with competitive rates. They hope to provide more flexibility and better user experience to borrowers who need to supplement federal student loans to fully fund their education.
Here are some highlights of Earnest’s undergraduate student loans:
- Soft-Credit Check: No but there is an eligibility check
- Repayment Terms: 5, 7, 10, 12, or 15 years
- In-school repayment options: Options include full deferment, flat payments, interest-only payments, and full principal & interest payments
- Grace Period: 9 months
- Cosigner Release: No, but you can release your cosigner if you refinance
- Unique benefits: Skip one payment per year, biweekly autopay
Ascent
Fixed Rates
3.82 – 14.50 (APR)
Variable Rates
2.71 – 12.99 (APR)
Loan Amounts
$1,000 – $200,000
The information above is for the Ascent Cosigned Credit-Based Loan.
LendEDU Rating: 4.38/5
Ascent is unique in that it offers student loans to borrowers with limited credit histories and no cosigners, as well as borrowers with cosigners. Borrowers may be able to save money with Ascent by taking advantage of the 1% Cash Back Graduation Reward.
The card above is for the cosigned loan. If you are interested in Ascent’s non-cosigned loan, click here.
- Soft-Credit Check: Yes
- Repayment Terms: 5, 10, or 15 years
- In-school repayment options: Interest-only, $25 flat, or deferred payment
- Grace period: 9 months
- Cosigner release: After 24 on-time payments
- Unique Benefits: Opportunity to earn 1% back upon graduation
Alternative Federal Student Loans
While the above loans are private, federal student loans are also an option. Federal student loans have several advantages over private loans, so explore all federal loan options before going with a private loan.
Federal student loans usually have lower interest rates. They don’t require a credit check and they aren’t based on your credit score. They also have more flexible repayment options compared to private loans.
There are four types of Direct Loans available under the U.S. Department of Education’s federal student loan program. These include the Direct Subsidized Loan, the Direct Unsubsidized Loan, the Direct PLUS Loan, and the Direct Consolidation Loan.
Specific benefits of federal loans over private loans include:
- Fixed interest rates
- No minimum credit score
- No co-signer required
- Possibility of student loan forgiveness If a borrower goes into certain in-demand career fields
- Possibility of postponing payments if borrower experiences financial hardship
Bottom Line
If you’re a borrower looking for funding for your undergraduate or graduate education, you’re out of luck with Capital One. There are alternatives available, however, including both federal student aid and private student loan options.
Private student loans would be the most similar to what Capital One, a private lender, would offer. Federal loans have advantages over private loans, and private loans typically should only be used when a student has exhausted their federal funding and other financial aid options.
