Best Bank of America Student Loan Alternatives for 2025

by Alex Hillsberg , MA

Student Finance & Loan Expert

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Are you looking for alternatives to a Bank of America student loan? If so, you might face the challenge of finding a suitable lender since Bank of America no longer offers new student loans. This article will showcase some of the best private student loan options available today. We’ll cover top lenders like College Ave, Sallie Mae, and SoFi, highlighting their competitive rates, flexible repayment terms, and unique benefits to help you make an informed decision. With student loan debt totaling $1.727 trillion, finding the right loan can significantly ease your financial burden.

Key Things You Should Know About Bank of America Student Loan

• Bank of America no longer offers new student loans. However, existing loans can still be managed through the bank or refinanced with other lenders.
• College Ave offers fixed rates from 4.29% to 16.39% and variable rates from 5.59% to 16.85%. They also provide loans covering up to 100% of the school-certified cost of attendance.
• Sallie Mae provides a 36-month grace period for medical students and allows cosigner release after 12 months of on-time payments.
• SoFi offers no origination fees or late fees and provides member benefits like career coaching and financial planning.
• Ascent offers a 1% cash-back graduation reward and flexible repayment options, making it accessible for students without a creditworthy cosigner.

Table of Contents

1. Best Bank of America Student Loan Alternatives for 2025 
2. Can I refinance my BofA student loans to change lenders?
3. Can I consolidate my federal student loans from Bank of America?
4. Is a private student loan a good option?
5. How do I decide which private student loan is the best for me?
6. How do private student loans and federal student loans differ?
7. How to Apply for a Private Student Loan
8. How do I qualify for a private student loan?
9. Should I choose a fixed or variable interest rate for my private student loan?
10. How do student loan interest rates work?
11. Do private student loans have fees?
12. How Can I Effectively Manage My Private Student Loan Repayments?
13. Choosing a Private Loan for Graduate and Professional Degrees
14. What to Know About Using Private Student Loans for Past-Due Tuition
15. How Can I Secure the Fastest Student Loan Approval?
16. Can Online Education Offer a More Affordable Path Than Private Student Loans?
17. Can Attending a Nonprofit Accredited Online University Lower My Private Student Loan Costs?
18. Can professional certifications offer a better return on investment than private student loans?
19. How Will Private Student Loans Impact My Credit Score?
20. Are There Viable Alternatives to Private Student Loans?
21. How Can I Compare Private Student Loan Offers Effectively?
22. Other Things You Should Know About Bank of America Student Loan

Best Bank of America Student Loan Alternatives for 2025 

If you're looking for alternatives to a Bank of America student loan, you're not alone. With the current student loan debt continuing to rise, finding the right private loan can make a significant difference in managing your education expenses. Here are five top private student loan options to consider, each offering unique benefits, competitive rates, and flexible terms.

1. College Ave

College Ave offers a variety of loan options tailored to meet different student needs. They provide loans for undergraduates, graduates, parents, and career training programs.

• Rates: Fixed rates from 4.29% to 16.39% and variable rates from 5.59% to 16.85%.
• Loan Amount: Up to 100% of the school-certified cost of attendance.
• Repayment Terms: Flexible terms ranging from 5 to 15 years, with multiple repayment options available.
• Notable Features: College Ave stands out with its multi-year approval option and extended grace period for graduate students.

2. Sallie Mae

Sallie Mae is well-known for its broad range of loan products, catering to undergraduates, graduates, and career training students.

• Rates: Fixed rates from 4.50% to 15.49% and variable rates from 5.37% to 15.70%.
• Loan Amount: Up to 100% of the school-certified cost of attendance.
• Repayment Terms: Terms range from 10 to 15 years, with various in-school repayment options.
• Notable Features: Sallie Mae offers a generous 36-month grace period for medical students and cosigner release after 12 months of on-time payments.

3. Earnest

Earnest provides flexible private student loans with customizable repayment options, making it ideal for those who want control over their loan terms.

• Rates: Fixed rates from 4.64% to 16.74% and variable rates from 5.87% to 18.51%.
• Loan Amount: Up to 100% of the school-certified cost of attendance.
• Repayment Terms: Terms range from 5 to 15 years, with the ability to choose your payment amount and date.
• Notable Features: Earnest allows borrowers to skip one payment a year and offers a rate match guarantee.

4. SoFi

SoFi is a great choice for borrowers looking for a loan with no fees and member benefits like career coaching and financial planning.

• Rates: Fixed rates from 4.19% to 14.30% and variable rates from 5.74% to 14.30%.
• Loan Amount: Up to 100% of the school-certified cost of attendance.
• Repayment Terms: Flexible terms of 5 to 15 years, with options for in-school deferment.
• Notable Features: SoFi offers no origination fees, no late fees, and cosigner release after 24 months of on-time payments.

5. Ascent

Ascent provides both cosigned and non-cosigned loans, making it accessible for students who may not have a creditworthy cosigner.

• Rates: Fixed rates from 4.29% to 15.96% and variable rates from 6.23% to 16.34%.
• Loan Amount: Up to $200,000 over the borrower's lifetime.
• Repayment Terms: Terms range from 5 to 15 years, with various in-school repayment options.
• Notable Features: Ascent offers a 1% cash-back graduation reward and flexible repayment options tailored to different borrower needs.

Here's What Graduates Have to Say About Their Bank of America Student Loan

• Thanks to my Bank of America student loan, I was able to focus fully on my studies without financial stress. The flexible repayment terms made it easy to manage my budget post-graduation. It truly set me up for success. -Angela
• Studying online with a Bank of America student loan was a seamless experience. The loan covered all my tuition and materials, allowing me to excel in my program without financial worries. I felt supported every step of the way. -Damian
• The application process for my Bank of America student loan was straightforward, and the customer service was exceptional. This loan enabled me to pursue my dreams and achieve my academic goals without compromising my financial stability. -Lisa

Can I refinance my BofA student loans to change lenders?

Yes, you can refinance your Bank of America student loan to change lenders, potentially securing better interest rates and repayment terms. Refinancing involves taking out a new loan from a different lender to pay off your existing one. This option is viable if your credit score has improved or current interest rates are lower than when you initially took out the loan. It’s essential to compare multiple lenders to find the best deal, as the new loan's terms depend on your creditworthiness and financial situation.

Remember that private loans, including those refinancing from a Bank of America student loan, do not offer federal benefits like income-driven repayment plans or loan forgiveness. This is a crucial consideration because federal student loan debt, which stands at over $1.7 trillion (see chart below), offers more borrower protections than private loans. If you decide to refinance, ensure the potential savings outweigh the loss of these federal benefits.

Can I consolidate my federal student loans from Bank of America?

Yes, you can consolidate your federal student loans originally serviced by Bank of America into a Direct Consolidation Loan. This process allows you to combine multiple federal loans into one, simplifying repayment and potentially lowering your monthly payments by extending the loan term. The interest rate for a consolidation loan is fixed and based on the weighted average of your current loans' rates, rounded up to the nearest one-eighth percent.

While consolidation can streamline your payments, it doesn’t reduce the interest rate or overall cost. It’s important to note that about 33.3% of federal student loan debt is in direct consolidated loans, highlighting the popularity of this option. However, extending the loan term means paying more interest over time. Before consolidating, consider if the benefits of a single payment and potentially lower monthly payments outweigh the increased interest costs.

Is a private student loan a good option?

Private student loans can be a good option if you’ve maxed out federal loan limits and still need funds for education. Private loans offer higher loan limits, often up to the total cost of attendance, and can provide competitive interest rates for creditworthy borrowers. This can be particularly beneficial for students attending expensive schools where federal loans fall short. The national private student loan balance is $128.8 billion, indicating significant reliance on these loans.

However, private student loans come with drawbacks, such as higher interest rates for those without excellent credit and fewer repayment options. Private loans also lack federal protections like income-driven repayment plans and loan forgiveness. According to the Education Data Initiative, less than 2% of private student loans entered default as of 2021 Q4, suggesting that borrowers generally manage these loans well. Weigh the pros and cons carefully before committing to a private loan.

How do I decide which private student loan is the best for me?

Choosing the best private student loan involves comparing different lenders according to

• interest rates, 
• loan terms, and 
• borrower benefits. 

Start by researching lenders offering competitive rates and flexible repayment options. Prequalify with multiple lenders to see the rates you qualify for without affecting your credit score. This step is crucial because the terms can vary significantly based on your credit history and financial profile.

When selecting a loan, consider additional factors such as 

• fees, 
• deferment or forbearance options, 
• benefits like interest rate discounts for autopay, and 
• average time to repay student loans.

The total student loan debt exceeds $1.7 trillion, with private loans constituting 7.2% of this amount. Thus, choosing the right lender can impact your financial well-being significantly. Look for lenders that align with your financial goals and offer terms you can comfortably manage.

How do private student loans and federal student loans differ?

Private student loans and federal student loans differ in several key aspects, including funding sources, eligibility requirements, and borrower protections. The government funds federal student loans and come with fixed interest rates, income-driven repayment plans, and loan forgiveness programs, making them more flexible and forgiving for borrowers. In contrast, banks and other lenders offer private student loans, with interest rates that vary based on creditworthiness.

Private loans typically require a credit check and may need a co-signer, especially for undergraduates with limited credit history. About one in five Americans has student debt and many face challenges in repayment. So remember that private loans, while offering higher loan limits and sometimes lower rates for creditworthy borrowers, lack federal protections, making them riskier if financial difficulties arise. The repayment could be more challenging over time. Understanding these differences is crucial for making informed borrowing decisions.

How to Apply for a Private Student Loan

Applying for a private student loan involves several important steps. Here’s a step-by-step guide to help you through the process:

1. Research and Compare Lenders: Start by researching the best private lenders. Look for competitive interest rates, flexible repayment options, and any borrower benefits offered. Comparing multiple lenders ensures you find the best offer. Make a list of three to five lenders that meet your criteria.
2. Prequalify with Multiple Lenders: Many lenders allow you to prequalify without a hard credit check. This step helps you see what interest rates and terms you might qualify for. Prequalifying is crucial to determine if you need a co-signer to secure better loan terms.
3. Gather Necessary Documents: Collect your Social Security number, financial details, employment information, and the desired loan amount. If you have a co-signer, gather their personal and financial details as well.
4. Complete the Application: Fill out applications for the selected lenders. Ensure all information is accurate and complete. Submit your applications early enough to get approved in time for the upcoming semester.
5. Compare Offers: Once approved, compare the offers you receive. Look at interest rates, repayment terms, and any additional perks or fees. Choose the offer with the best terms that you can comfortably manage.
6. Finalize the Loan: After selecting the best loan offer, finalize the agreement with your chosen lender. Ensure you understand all terms and conditions, including when repayment begins and any potential fees.

Remember to also consider that you or your family could have other debt. Note that the average credit card debt is at $6,501, so adding a loan on top of other debt could be challenging in terms of repayment. Explore as many options as possible to find the best one for you.

How do I qualify for a private student loan?

Qualifying for a private student loan typically requires 

• a good credit score 
• a stable income or 
• a co-signer who meets these criteria. 

Lenders evaluate your credit history to determine your loan repayment ability. Most undergraduate students may need a co-signer to secure favorable terms. A solid financial profile or a reliable co-signer can help you get lower interest rates and better loan conditions.

Each lender has specific eligibility criteria, so comparing different options is important. Prequalifying with multiple lenders can give you an idea of what terms you might qualify for without impacting your credit score. According to the Education Data Initiative, The outstanding federal loan balance is $1.602 trillion, with about 43.2 million borrowers  Ensuring you meet the lender's requirements can help you secure a loan that fits your needs and financial situation.

Should I choose a fixed or variable interest rate for my private student loan?

When evaluating interest rate options, it is essential to assess how each choice affects your long-term financial commitments. Fixed rates offer consistency in repayment amounts, reducing uncertainty over the life of the loan, while variable rates may start lower but can fluctuate based on market conditions, potentially increasing costs over time. Consider your risk tolerance, loan duration, and overall financial strategy when making this decision. For a detailed comparison and analysis, review guidelines on fixed interest rate student loans to determine which option best aligns with your needs.

How do student loan interest rates work?

Student loan interest rates can be fixed or variable. Fixed interest rates remain unchanged throughout the loan's life, providing predictable monthly payments. Variable rates, on the other hand, can change based on market conditions, potentially increasing your monthly payments over time. Private student loan rates vary depending on your creditworthiness, with higher rates typically for those with lower credit scores.

Interest starts accruing as soon as the loan is disbursed. Understanding how interest accrues and compounds is crucial. Deferring payments while in school means interest will accumulate and be added to the principal balance, increasing the total amount owed. While there was a notable 2.09% decrease in national student loan debt in the fourth quarter of 2023, one must still be cautious in taking out a loan. Choosing the right type of interest rate can significantly impact your repayment plan and overall costs.

Do private student loans have fees?

Yes, private student loans often come with various fees, including origination fees, late payment fees, and sometimes prepayment penalties. The lender charges origination fees for processing the loan, typically a percentage of the loan amount. These fees add to the overall cost of borrowing and should be considered when comparing loan options.

While some lenders offer loans with no origination fees, reading the fine print for hidden costs is essential. Late payment fees can accrue if you miss a payment, and prepayment penalties might be charged if you pay off your loan early. Given that the national private student loan balance is $128.8 billion, understanding the fee structures of different loans can help you make a more informed decision and avoid unnecessary expenses.

How Can I Effectively Manage My Private Student Loan Repayments?

A robust repayment plan is essential to minimize interest expenses and maintain long-term financial stability. Identify strategies such as setting up automatic payments to prevent late fees, exploring opportunities for refinancing if market rates drop, and evaluating early repayment options to reduce overall costs. Additionally, regularly revisiting your budget to adjust for changes in income or expenses can help ensure consistent progress toward loan payoff. Consider career paths that offer higher earning potential, as pursuing the best degree programs that lead to 100k salary may improve your capacity to manage and retire your private student loan effectively.

Choosing a Private Loan for Graduate and Professional Degrees

Graduate and professional degrees, such as an MBA, often come with higher tuition costs that exceed federal loan limits. Private student loans tailored for advanced degrees can bridge this gap by offering higher borrowing limits and competitive rates. When evaluating private loans for your graduate studies, focus on lenders specializing in programs designed for professionals seeking advanced qualifications.

One type of private loan to consider for MBA programs is an "MBA loan." These loans typically provide flexible repayment options and may even include deferment periods while you’re enrolled. Given the significant investment required for an MBA, it is critical to compare multiple lenders and prioritize those offering low rates, transparent fee structures, and flexible terms. For more details on selecting the best private loans for MBA programs, explore this comprehensive guide to MBA loans.

Additionally, securing a private loan for graduate studies often necessitates a strong credit profile or a co-signer. Lenders may provide discounted rates to borrowers with excellent credit, while others offer customized loan options for specific professional pathways. Leverage any borrower perks such as interest rate reductions for autopay or networking opportunities provided by lenders with graduate-focused loan programs.

Ultimately, choosing the right private loan for your graduate education involves balancing costs, repayment flexibility, and loan features to align with your career goals and financial circumstances. By conducting thorough research and comparing offers from varied lenders, you can better manage the financial commitment of pursuing an advanced degree.

What to Know About Using Private Student Loans for Past-Due Tuition

If you’re struggling with paying off past-due tuition and considering a private student loan, it’s important to weigh your options carefully. Private student loans can sometimes be used to cover unpaid tuition balances when other forms of financial aid or savings fall short. However, be aware that these loans come with specific eligibility criteria and repayment obligations that differ from federal loans.

Not all lenders allow their loans to be used for past-due tuition, and terms may vary widely between providers. It’s critical to verify this usage with potential lenders before proceeding. Additionally, interest rates on private student loans—while potentially competitive for those with strong credit—may be higher if your financial profile isn’t robust. Make sure to calculate how the added interest costs could affect your long-term financial health.

If you’re asking, "can you get a student loan for past due tuition," take time to explore your options, including specific lenders who cater to this need. For a more detailed guide, visit https://research.com/student-loans/how-to-get-student-loans-for-past-due-tuition to learn strategies and alternatives for addressing past-due tuition payments.

Lastly, when considering private student loans for past-due balances, assess whether pursuing a repayment plan directly with your school might be a feasible alternative. Some institutions may offer payment arrangements that eliminate the need for taking on additional debt. Conduct thorough research to identify the solution that aligns best with your financial situation and long-term goals.

How Can I Secure the Fastest Student Loan Approval?

To expedite your private student loan process, verify that your application is complete with all required documentation, including income statements, credit details, and enrollment verification. Prioritize lenders that offer prequalification without impacting your credit score, and review eligibility criteria carefully to reduce processing delays. Maintain an updated credit profile and be prepared to address additional documentation requests promptly. For guidance on expediting your application, refer to the fastest student loan approval strategies provided by expert resources.

Can Online Education Offer a More Affordable Path Than Private Student Loans?

For working professionals, online degree programs can serve as a cost-effective alternative that minimizes reliance on private student loans. Many accredited online programs offer lower tuition fees, flexible scheduling, and reduced commuting expenses, all of which lessen the overall financial burden. Additionally, targeted programs available at the best colleges for working adults may provide competitive credentials while allowing students to maintain their professional commitments. Evaluating the total cost of education—including tuition, fees, and opportunity cost—against potential incremental earnings is essential for assessing the long-term benefits of online education compared to borrowing through private student loans.

Can Attending a Nonprofit Accredited Online University Lower My Private Student Loan Costs?

Choosing a cost-effective educational model can significantly reduce overall borrowing needs. Institutions such as a nonprofit accredited online university typically offer lower tuition and reduced ancillary costs compared to traditional brick-and-mortar schools. This reduction in tuition expenses decreases the total amount required in private student loans and minimizes long-term interest obligations. Additionally, online programs often provide flexible scheduling and accelerated pathways, allowing students to re-enter the workforce sooner, thus offsetting potential debt accumulation through earlier income generation.

Can professional certifications offer a better return on investment than private student loans?

In certain cases, targeted certification programs provide a faster pathway to enhanced earnings while mitigating long-term financial risks. Analyzing the overall cost of private student loan repayment against the potential salary boost from professionally recognized certifications can reveal a more advantageous investment in your career. Evaluate program accreditation, industry demand, and completion time to ensure the credential aligns with your career goals. For additional insights, review what certifications make the most money.

How Will Private Student Loans Impact My Credit Score?

When obtaining a private student loan, a lender’s credit assessment and score inquiry are critical factors that can affect your overall credit profile. Prompt and consistent repayments can enhance your credit history, whereas delays or defaults may lead to long-term negative impacts. It is important to regularly review your credit report and manage your debt-to-income ratio to maintain financial stability. Additionally, evaluating alternative financing options—such as educational programs that require less financial commitment, like the 6 month master's degree online programs—can offer a balanced approach to managing both educational advancement and credit health.

Are There Viable Alternatives to Private Student Loans?

Evaluate non-loan funding strategies such as merit-based scholarships, need-based grants, work-study programs, and employer tuition assistance to reduce overall borrowing. Consider lower-cost education pathways and programs that help manage future repayment burdens. For instance, assessing programs like which bachelor degree is easiest may offer a more economical route to completing an undergraduate education. Comparing total costs and long-term career outcomes across these alternatives can provide clearer insights into reducing financial risk while meeting educational goals.

How Can I Compare Private Student Loan Offers Effectively?

When evaluating private student loan options, focus on key factors such as interest rates, fee structures, repayment flexibility, and any borrower benefits. Review lenders’ disclosure statements to ensure all associated costs—like origination fees, late payment charges, and prepayment penalties—are transparent. Compare the annual percentage rates alongside variable or fixed rate details to understand the long-term financial commitment. Utilize comprehensive lender comparisons, including in-depth analyses like the Sallie Mae vs Discover student loan overview, to make a well-informed decision tailored to your financial profile and academic needs.

Key Findings

• The total student loan debt in the U.S. is $1.727 trillion as of 2023 Q4, with federal loans making up $1.602 trillion or 92.8% of this total.
• There are 43.2 million borrowers with federal student loan debt, and the average federal student loan debt balance is $37,088.
• In 2023, the national student loan debt saw its first-ever annual decline, decreasing by 2.09% year-over-year in Q4.
• Private student loans account for 7.2% of the outstanding student loan debt, totaling $128.8 billion.
• As of April 2024, the Biden administration has canceled a total of $153 billion in student debt for over four million borrowers.

Other Things You Should Know About Bank of America Student Loan

Does America do student loans?

Yes, America offers student loans. The federal government and private lenders provide these loans to help students pay for college. Federal loans usually have lower interest rates and more flexible repayment options compared to private loans. Students can apply for federal loans through the Free Application for Federal Student Aid (FAFSA) process.

Private student loans are another option, typically used to cover costs not met by federal loans. These loans often require a credit check and may have higher interest rates. It’s important to compare different loan options and understand the terms before borrowing.

Can I get a student loan to study in America?

Yes, you can get a student loan to study in America. International students can apply for private student loans if they have a co-signer who is a U.S. citizen or permanent resident. These loans help cover tuition and other educational expenses.

Federal student loans are generally not available to international students. However, some schools offer their own financial aid packages and scholarships. It’s a good idea to check with the university’s financial aid office for more information on available options.

How much are student loans in America?

The amount of student loans in America varies widely. For federal loans, undergraduates can borrow up to $12,500 per year, depending on their year in school and dependency status. Graduate students can borrow more, up to $20,500 annually with additional funding available through Grad PLUS loans.

Private loan amounts depend on the lender and the borrower’s creditworthiness. Some lenders allow students to borrow up to the full cost of attendance, which includes tuition, fees, room, board, and other expenses. It’s crucial to borrow only what is necessary to avoid excessive debt.

Are student loans interest-free in America?

No, student loans in America are not interest-free. Both federal and private student loans accrue interest. Federal loans generally offer lower interest rates and fixed rates for the life of the loan. Some federal loans also provide a grace period where interest may be subsidized, meaning the government pays the interest while the student is in school.

Private loans often have higher interest rates and may have variable rates that change over time. It’s important to understand the terms of any loan, including interest rates and repayment options, before borrowing.

References:

• CFR.org Editors. (2024, April 16). Is rising student debt harming the U.S. economy? Council on Foreign Relations  
• Fowers, A., & Douglas-Gabriel, D. (2024, January 19). Who has student loan debt in America? Washington Post.
• Hanson, M. (2024b, March 3). Student Loan Debt Statistics [2024]: Average + total debt. Education Data Initiative.
• Streaks, J. (2024, June 11). Average American debt in 2024: Household debt statistics. Business Insider.