Searching for private student loans can be a hassle. With so many variables to weigh and options to consider, it’s understandable that you’d want to stick with a financial institution you already know and trust—like TD Bank.
Unfortunately, TD Bank doesn’t offer private student loans in the U.S. So, whether you are a current TD Bank customer or just reviewing different banks and lenders, you’ll need to consider alternative options.
To help you in your private student loan search, we’ve compiled a list of popular student loan lenders below.
In this guide:
- Alternatives to TD Bank Student Loans
- What’s the difference between federal and private student loans?
- Which TD Bank student loan alternative is best?
Alternatives to TD Bank Student Loans
TD Bank is one of the largest banks in North America, providing mortgages, personal loans, bank accounts, credit cards, and small business banking options. Unfortunately, they do not offer student loans in the US. In Canada, TD Bank provides a student line of credit that students can use to cover tuition and living expenses.
Use federal aid first
If you’re looking for a TD Bank student loan, chances are you’ve already exhausted all of your federal student loan options. But if you haven’t, you absolutely should.
Federal student loans are available through the U.S. Department of Education. To apply, fill out the FAFSA to see what aid you can qualify for: subsidized and unsubsidized loans, grants, and work-study programs.
Even if you only qualify for unsubsidized loans, they offer benefits like low interest rates, various repayment options, and loan deferment and forbearance in situations where you’re unable to make loan payments.
Plus, your credit score isn’t a consideration in deciding your eligibility, so you can qualify for a federal loan without a cosigner even if you have bad or no credit.
Use private student loans to fill the gap
If you’ve maxed out the amount you can borrow in federal student loans and still need more money, then private student loans can be used to fill the gap. Since TD Bank is a private bank, the private student loan companies below likely offer student loans that are more in line with what you were looking for from the start.
Editorial Rating: 4.8 out of 5
- Cover up to 100% of your cost of attendance, including tuition, fees, books, housing, and more
- You choose your repayment terms
- 90% of undergraduate borrowers are approved for additional loans when applying with a cosigner
College Ave is a private lender that provides student loans for undergraduate and graduate students. The interest rate for undergraduate students ranges from 3.49% to 12.99% APR for fixed-rate loans and from 1.19% to 11.98% APR for variable-rate loans.
College Ave lets borrowers choose a repayment term of five, eight, 10, or 15 years. In addition to choosing your repayment term, you’ll also get to choose your repayment plan. Your options include:
- Deferred payment: You won’t be required to make any payments while enrolled. This will result in paying the most interest over the life of the loan.
- Flat payment: You’ll only have to pay $25 every month while in school. This will result in you accruing less interest than if you completely deferred your payments.
- Interest-only payment: You’ll pay the interest that accrues on the loan while in school. This will result in you paying the second-least amount of total interest.
- Full principal and interest payment: You’ll pay the full principal and interest while in school and after you leave. This will result in you paying the least amount of interest over the life of the loan.
College Ave does not charge any origination, application, or prepayment penalties. Borrowers are not required to have a cosigner, but most students, especially undergraduates, will not qualify for a loan without one. The maximum annual loan amount is the cost of attendance minus other financial aid. The aggregate loan limit depends on the student.
Editorial Rating: 4.7 out of 5
- Student loans for undergraduates, graduates, and career training
- Offers the shortest cosigner release period
Sallie Mae is one of the biggest private lenders and offers loans for undergraduate and graduate students. Fixed interest rates for undergraduate loans range from 3.50% to 12.60% APR, and variable interest rates range from 1.37% to 11.48% APR.
Sallie Mae does not charge any application, origination, or prepayment penalties. Most borrowers will have to add a cosigner to qualify for the loan. However, if borrowers make 12 consecutive on-time monthly payments, Sallie Mae will allow the cosigner to be released from the loan. This is the shortest cosigner release period of any private lender we reviewed. The maximum loan amount is the annual cost of attendance.
Editorial Rating: 4.7 out of 5
- Undergraduates can apply for free access to an exclusive coaching program
- Upon proof of graduation, borrowers will receive 1% cash back
- Checking your rate will not impact your credit score
Ascent offers student loans for undergraduate and graduate students. Unlike other lenders, Ascent has two loans specifically for borrowers who don’t have a cosigner. The first loan is credit-based; however, if the borrower doesn’t qualify for that loan, they are then considered for the outcomes-based loan, which uses their GPA and projected income to determine eligibility. This loan is only available to juniors and seniors.
Ascent provides five, seven, 10, 12, or 15-year repayment terms. After leaving school, there is a nine-month grace period, while most private lenders only offer a six-month grace period. The minimum loan amount is $2,001, and the maximum loan amount is $200,000.
The rates for cosigned loans range from 1.64% to 12.76% APR, while the no-cosigned loans range from 4.23% to 14.52% APR.
Ascent provides a 1% cash back bonus when students graduate, and students can use this bonus towards repayment or other purchases.
Editorial Rating: 4.3 out of 5
- Get a cash reward for good grades on each new student loan
- There are no application, origination, or late fees
- All student loan specialists are based out of the U.S.
Discover offers student loans for undergraduate and graduate students. The maximum loan amount is the annual cost of attendance minus other financial aid. The aggregate loan limit depends on the borrower.
Discover does not charge any application, origination, prepayment, or late payment penalties.
Discover currently only offers a 15-year term for students, while other lenders offer a variety of repayment terms. The interest rate for undergraduate student loans ranges from 3.99% to 11.59% APR for fixed-rate loans and from 1.79% to 11.09% APR for variable-rate loans.
Students who earn a 3.0 GPA or higher can get a special cashback bonus from Discover, worth 1% of the loan amount. When students graduate, they will also be eligible for a bonus worth 2% of the loan amount.
What’s the difference between federal and private student loans?
Unlike the federal government, private lenders will run a credit check to determine if you qualify. Students who don’t have a good credit history or stable income will need to add a cosigner to their loan, which is an individual who agrees to take responsibility for the loan if the student can’t keep up with repayment.
Private student loans have fewer repayment options than federal loans. While federal loans offer extended or income-driven repayment plans, private loans are more restrictive. In most cases, the only way to change your private monthly payment is to refinance with a different lender.
Some private lenders will even require that you make payments while you’re still enrolled in college, while all federal loans allow you to defer payments until after you leave school. Some federal loans will not charge interest during deferment, while all private loans will charge interest.
Federal loans also offer more forgiveness programs than private student loans. It’s challenging to get your private loans forgiven unless you qualify for a specific loan repayment program, which is usually only available for medical or legal professionals.
Forbearance and deferment programs are also much more extensive with federal loans. Many private student loan companies offer limited forbearance programs, and you often have to meet specific circumstances to qualify for forbearance with a private lender.
Which TD Bank student loan alternative is best?
Comparing private student loan providers is crucial before finalizing a loan. One of the most important factors to consider is the interest rate, which is a significant factor in determining how much your monthly payments are and how much total interest you pay.
Each lender has its own interest rate range, and the exact rate you qualify for will depend on your credit score, requested loan amount, income, and other factors.
You should also compare the different repayment terms that lenders offer. Longer terms have lower monthly payments and higher interest rates, while shorter terms have higher monthly payments and lower interest rates. Some lenders offer a wider variety of terms, while others only offer a single term.
Some lenders allow you to check your rate without a hard credit check, which means your credit score won’t be impacted. Take advantage of this benefit to help you compare actual rates offered to you rather than the ranges advertised by the lender. By doing this, you can ensure that you take out the most affordable loan available to you.