Capital One Student Loans: Alternatives to Consider

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

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 the cost of attendance, which includes tuition, fees, books, housing, and other costs.

Currently, the variable interest rates range from 3.94% to 11.19% APR. Fixed rates range from 5.29% to 12.78% APR. There are different repayment options and varying loan terms.

Sallie Mae Student Loans

Sallie Mae is a private student loan company offering undergraduate and parent loans, among other education loan products. The Smart Option Student Loan for undergraduate students has complete coverage available up to all school-certified costs.

Sallie Mae does not charge an origination fee on student loans, and when a borrower makes payments with auto debit, they are eligible for a 0.25 percentage point interest-rate reduction. The starting variable interest rate ranges from 4.37% to 11.23%. The fixed interest rate can be anywhere from 5.74% to 11.85%.

PNC Student Loans

PNC Financial Services Group offers the PNC Solution Undergraduate Loan. This loan has variable rates starting at 5.19% and fixed rates starting at 6.03%. There are flexible repayment terms of up to 15 years, and a co-signer release is available after making 48 consecutive monthly payments on time.

There is a 0.50% interest-rate reduction with automated payments made from a checking or savings account. As with other private loans, a co-signer is usually required for undergraduate students.

Citizens Bank

Citizens Bank offers private student loans with multi-year approval. The Citizens Bank Student Loan is for undergraduate students, and the bank advertises it as an alternative to the Federal Direct PLUS Loan. Loan amounts are available from $1,000 to $170,000, depending on the applicant’s education level.

If a borrower sets up automatic payments, they may receive a 0.25% point interest-rate reduction. If the borrower also has an account with Citizens, they may receive another 0.25% points off the interest rate.

Interest rates are fixed or variable with the Citizens Bank Student Loan and fixed for the Citizens Bank Student Loan for Parents. Terms for these loans range from five to 15 years. 

Commonbond

Commonbond is a student loan company that offers undergraduate and graduate loans as well as student loan refinancing. Fixed interest rates for undergraduate Commonbond loans range from 5.30 % to 9.82% with terms of 5, 10, or 15 years.

Variable interest rates currently range from 3.93% to 9.81%, also with terms of five, 10, or 15 years. Commonbond offers forbearance so borrowers can postpone payments for up to 12 months throughout the life of their loan, and they have co-signer release options after two years of on-time monthly payments.

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.

>> Read More: Differences between federal and private student loans

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.

If you’re an undergraduate student, you can borrow from $5,500 to $12,500 per year in Direct Subsidized and Direct Unsubsidized Loans. If you’re a graduate student, you can get a larger 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.