College Ave vs. SoFi: Which offers better student loans?
Key takeaways
- College Ave is better for graduate students seeking generous repayment options.
- SoFi offers lower maximum rates along with discounts and membership perks.
- When comparing College Ave and SoFi, consider whether you need funding for a graduate or professional degree, multi-year approval or loans with no borrowing cap.
College Ave and SoFi are among the best-known private student loan lenders, offering loans for both undergraduates and graduates. They each offer a range of loan amounts and repayment terms, and both offer a quick prequalification process that will show you exactly what each lender is willing to offer you without impacting your credit score. However, their unique features will appeal to borrowers with different needs.
College Ave vs. SoFi at a glance
| College Ave | SoFi | |
|---|---|---|
| Bankrate score | 4.5/5 Refi: 4.3/5 |
4.8/5 Refi: 4.8/5 |
| Better for |
|
|
| Loan amounts | $1,000 to 100% total cost of attendance ($150,000 maximum for some graduate degrees) | $1,000 to 100% total cost of attendance |
| APRs | 4.54% to 17.99% Variable; 3.47% to 17.99% Fixed (with Autopay) | 4.64% to 15.99% Variable; 3.54% to 15.99% Fixed (with Autopay) |
| Loan term lengths | 5 to 15 years (for most degrees)Refi: 5 to 20 years | 5 to 15 yearsRefi: 5 to 20 years |
| Fees | No fees | No fees |
| Minimum credit score | Not Specified | 640 |
| Cosigners required? | No | No |
College Ave student loans
College Ave
-
College Ave’s student loan portfolio includes undergraduate and graduate loans, plus loans tailored toward specific professions, including dentistry and law. This wide range means that almost every type of student can find a suitable loan with College Ave.
SoFi student loans
SoFi
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SoFi offers student loans for undergraduates and graduate students, as well as specific loans for MBA programs and law school. SoFi prioritizes discounts over repayment flexibility, making it a good option for students who maintain good grades or use other SoFi products. SoFi could also be a good option for repeat customers or parents paying college costs for multiple students.
How to choose between College Ave and SoFi
APR range
At its low end, College Ave offers one of the best student loan rates at 3.47 percent fixed APR, but its maximum rate of 17.99 percent (for both fixed and variable rates) is high compared to competitors’ rates. SoFi caps its interest rates lower than College Ave, at 15.99 (fixed or variable) and offers significantly lower refinancing rates.
Minimum credit score
College Ave requires cosigners to have a minimum score in the mid-600s. This is comparable to SoFi, which requires a minimum score of 640 for approval.
Credit scores in the mid-600s fall into the fair to good credit range. This is a realistic range for young college students, given that the average credit score for Gen Z is 681.
Both lenders state they evaluate borrowers based on creditworthiness and other unspecified factors.
Repayment terms and grace periods
| College Ave | SoFi | |
|---|---|---|
| Terms | ||
| Private student loans | 5 to 15 years | 5 to 15 years |
| Graduate loans | 5 to 15 years(Up to 20 years for medical school) | 5 to 15 years |
| Refinance loans | 5 to 20 years | 5 to 20 years |
| Repayment options | ||
| In-school interest and principal payments | Yes | Yes |
| Interest only | Yes | Yes |
| Fixed in-school payment | Yes | Yes |
| Deferment | Yes | Yes |
| Grace period (private student loans) | 6 months for most borrowers | 6 months for most borrowers |
College Ave’s terms particularly favor students borrowing for law, medical, dental and health professions. They also benefit borrowers who need to keep their monthly payments small while managing other expenses. Their more generous grace periods for dental school and medical school (12 and 36 months, respectively) give borrowers with the heaviest debt load more time to get on their feet.
SoFi does not offer extended terms for any borrowers and its extended grace period for medical professionals is just nine months.
Loan amount
For most students, College Ave covers up to 100 percent of certified college costs minus any financial aid received. However, there is a $150,000 loan cap for MBA, law and medical loans. This should be sufficient for most students, but it’s a lower limit than most lenders impose.
SoFi will cover 100 percent of certified college costs minus any financial aid. There are no borrowing caps.
Fees
Neither SoFi nor College Ave charges fees when you apply for a loan or receive funding. College Ave’s disclosures state it may charge a late fee if your payment is over 15 days late; however, a company representative told Bankrate in late 2024 that these fees are not currently being charged. SoFi explicitly states it does not charge late fees.
The bottom line: Which lender is better?
SoFi and College Ave offer very similar loan products with multiple repayment options and a wide range of loan amounts.
College Ave is likely the better fit if you’re attending a specialized graduate program, such as medical or dental school. Its longer repayment terms and grace periods mean easier monthly payments on large amounts of debt.
If you’re looking to bundle your loans with other financial products or want access to financial and career planning programs, SoFi is probably the way to go. Using SoFi’s other products may even net you discounts.
Both companies boast a three-minute prequalification process that allows you to compare offers quickly with no impact on your credit score. So, if you still can’t decide between College Ave and SoFi, see what rates both lenders offer.
Compare more lenders before applying
Comparison shopping can save you hundreds of dollars on your student loans by helping you find the lender that offers the best combination of rate and term options for you.
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