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 is no longer accepting student loan applications, any outstanding student loan debt with the bank must be repaid. However, there are alternative repayment plans available.
In this review:
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 student loan refinance lenders to see your options and learn more.
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 a good 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.
Check out our recommended private student loan lenders below.
Citizens Bank Student Loans
Citizens Bank is a U.S Regional Bank headquartered in Providence, Rhode Island. Citizens Bank allows prospective students to borrower anywhere from $1,000 to $175,000.
Citizens Bank’s private student loan products also offer very competitive interest rates (starting at 5.25% variable and 4.47% fixed). Additionally, student loan borrowers can choose between 5, 10, and 15-year term lengths.
Best of all, Citizens Bank lets student borrowers choose if they want to defer payments, make full payments, or make interest-only payments while they are still in school.
You can learn more in our full Citizens Bank student loan review.
College Ave Student Loans
College Ave is headquartered in Milwaukee, Wisconsin. In 2015, College Ave partnered with Liberty Bank to originate their private student loan products. Similar to Citizens Bank, they offer private student loans ranging from $1,000 to $175,000.
College Ave’s starting interest rates are slightly lower than Citizens Bank, starting at 4.20% variable and 5.29% fixed. College Ave offers unique term lengths, including 8, 10, 12, and 15-year loan term lengths.
College Ave also allows student loan borrowers to defer payments until after they graduate.
You can learn more in our full College Ave student loan review.
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.
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