U.S. Bank Student Loans: What You Should Know
U.S. Bank no longer offers student loans. However, you can still refinance existing U.S. Bank loans. This guide will show you your options.
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In March of 2012, U.S. Bancorp announced that it was pulling out of the private student lending business, and no longer offering U.S. Bank student loans.
“It’s a very small business for the bank, and we’ve decided to make a strategic shift and move resources” said U.S. Bank spokesman Thomas Joyce.
Although U.S. Bank no longer offers student loans, there are alternatives available to pay for college and you can refinance existing U.S. Bank loans.
In this review:
U.S. Bank Student Loan Alternatives
Although U.S. Bank no longer offers private student loans, there are some great alternatives that allow students to afford the cost of higher education.
The first step is to complete the FAFSA. The FAFSA allows you to see if you qualify for federal financial aid, including federal student loans, scholarships and grants.
If you have drained all available federal financial aid options, the next step would be to turn to private student loans. Eligibility for private student loans is dependent on a variety of factors, including credit score, consistent income, and a low debt-to-income ratio.
If you do not meet the requirements, finding a co-signer can greatly increase your chances of being approved. Alternatively, you could look into student loans that don’t require a co-signer.
Check out some alternative private student loan lenders below.
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 our top-rated private student loan partner, making it a great U.S. Bank student loan alternative. The lender offers loans for undergraduates, graduate programs (including health professions), career training, and parents of students attending college with low rates and no origination fees.
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: 4.8/5
Earnest is an online lender offering private student loans and student loan refinancing and is another great alternative to U.S. Bank. The company offers loans for both undergrads and graduate students.
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
Can I Refinance My U.S. Bank Student Loans?
If you are currently in the process of repaying your U.S. Bank student loans, then your loans are eligible for refinancing. However, as the borrower, there are eligibility requirements that you must meet before you can refinance, such as a strong credit history and employment.
You can refinance your student loans like you would refinance your mortgage. During the refinancing process, a new lender will pay off your original loans with U.S. Bank and issue you a new loan with different terms.
How does this benefit me?
If your debt, income, and credit have improved since you took out your original loan, a new student loan refinance lender may be willing to offer lower interest rates and more flexible term lengths.
By obtaining a lower interest rate, the borrower stands to save a lot of money over the life of their loan.
By extending their repayment term, they could also lower their monthly payments. However, this would increase the amount of interest paid, so we don’t recommend choosing a long repayment term unless necessary.
Check out our guide to the best places to refinance student loans to see your options or consider our top-rated partner, Earnest.
Rates (APR)
3.21% – 8.77%
Terms
5 – 20 years
Loan Amounts
$5,000 – $500,000
Final Thoughts
U.S. Bank was never a major player in the private student loan industry, however, if you have outstanding student loan debt with U.S. Bank then it must be repaid.
For those with private student loans from U.S. Bank, refinancing is a great way to lower your interest rate and save money.
If you are seeking a new student loan to finance your college education, there are still a handful of great lenders who are willing to help you out.
