Does Bank of America Offer Student Loans for 2025?

Student Finance & Loan Expert

Several large financial institutions in the United States (US) offer student loans. However, Bank of America, along with other firms, has not been one of them for many years now. Notably, student loans account for a massive portion of consumer debt, following mortgages. In the academic year 2022–2023, parents and students in the US amassed $98.2 billion in federal and private student loans to be able to afford postsecondary education (CollegeBoard, 2023). Considering these facts, you may benefit from other valid sources of academic funding. To help you as you venture into college life, I, a career-planning expert with over a decade of professional experience, created this in-depth guide to alternatives to Bank of America student loans.

Key Things You Should Know About Bank of America Student Loans for 2025

Bank of America currently does not offer student loans.
The company stopped offering private student loans in 2008 and the government-guaranteed Federal Family Education Loan (FFEL) program in 2010.
Alternatives to Bank of America student loans include federal student loans and private student loans, such as those from College Ave, Sallie Mae, LendKey, and Citizens.

Does Bank of America currently offer student loans?
When did Bank of America stop offering student loans?
What are the best alternatives to Bank of America for student loans?
Does Bank of America offer student loan refinancing?
What alternatives to student loans does Bank of America provide?
How can Bank of America help me save for college?
How does Bank of America’s 529 plan work?
What scholarships does Bank of America offer for students?
Can you get a student loan for past due tuition?
Does Bank of America offer advanced digital banking features for students?
What student banking services does Bank of America offer?
Can international students open an account in Bank of America?
What financial advice does Bank of America provide for students managing debt?
Are there flexible student loan options for part-time study?
What are the risks of misallocating student loan funds for living expenses?
Does Bank of America offer guidance on using student loans for living expenses?
How can I build credit while using Bank of America's financial products?
How can professional certifications impact financial success?
Should I consider alternative education paths to reduce reliance on loans?
What factors should you consider when exploring alternative education funding options?
Can scholarships and grants effectively reduce dependence on student loans?
Other Things You Should Know about Bank of America Student Loans

Does Bank of America currently offer student loans?

Bank of America currently does not offer student loans. Founded in 1904, Bank of America provides banking, investing, and other financial management services to individual consumers as well as small, medium, and large businesses. The financial firm used to be a player in the student loan landscape. But it stopped giving out private student loans in 2008. Notably, Bank of America also used to offer the Federal Family Education Loan (FFEL) program, a government-backed loan program that was established through the Higher Education Act of 1965 and was managed by private lending companies. However, the program was shut down in 2010.

Moreover, in 2015, Bank of America chief financial officer Bruce Thompson reported that it shifted a portfolio of consumer loans worth $2.7 billion to held-for-sale status. Some sources speculated that it was the firm’s student loan portfolio.

When did Bank of America stop offering student loans?

Bank of America has been out of the student loan business for more than a decade now. The company stopped offering private student loan options in 2008, in the middle of the 2007–2008 global financial crisis. And in 2010, the government-guaranteed FFEL program ended, leaving Bank of America without student loan products to offer.

By the time the FFEL program was shut down in 2010, borrowers across the US collectively had $860 billion in federal student loans (Hanson, 2024). By June 2023, federal student loan debt amounted to $1.64 trillion, held by 43.6 million individuals (Federal Student Aid, 2023).

What are the best alternatives to Bank of America for student loans?

Several financial firms cater to parents' and students’ needs through different types of student loans. Explore the following to learn more about alternatives to Bank of America student loans:

1. Federal Student Loans

Federal student loans are funds given by the government to qualified individuals or parents for education-related expenses at the undergraduate or graduate levels. They are required to be paid back with interest at fixed rates. Federal student loan programs include Federal Direct Subsidized Loans, Federal Direct Unsubsidized Loans, Direct Parent Loans for Undergraduate Students, and Grad PLUS Loans.

Federal Direct Undergraduate Rate: 6.53%

Graduate Rate: 8.08%

Plus Loans Rate: 9.08%

2. College Ave

Launched in 2014, College Ave offers private student loans for students in undergraduate and graduate programs, covering tuition, course materials, transportation, food, and housing. It also has loans for field-specific programs, including dentistry, business, law, and medicine. Moreover, College Ave enables parents and sponsors to apply and borrow for students.

Variable Rates: 5.59% to 16.85%

Fixed Rates: 4.17% to 16.69%

Loan Amount: Minimum of $1,000

3. Sallie Mae

Sallie Mae is an education solutions company that provides loans for undergraduate, graduate, and trade school students. The company also offers the $2,000 Sallie Mae Scholarship as well as resources on scholarships available to high school seniors and college students.

Variable Rates: 5.37% to 15.7%

Fixed Rates: 4.25% to 15.49%

Loan Amount: Minimum of $1,000

4. LendKey

LendKey is a financial technology firm established in 2007 and caters to borrowers and lenders. It offers its services to credit unions, community banks, and individuals. LendKey has a loan trading marketplace called ALIRO, which is used by financial institutions to sell or buy loans. Borrowers can get up to 100% of their school-certified cost of attendance, including tuition, housing, and course materials.

Variable Rates: 6%

Fixed Rates: 3.99%

Loan Amount: Contact the company for more information.

5. Citizens

Citizens is a large Rhode Island-based financial institution that provides a variety of retail and commercial banking products. It has student loan packages for parents, undergraduate students, and graduate students. Repayment plans include full, interest, and deferred payments while students are in school.

Variable Rates: 5.97% to 16.47%

Fixed Rates: 4.39% to 15.45%

Loan Amount: $1,000 to $350,000

The chart below provides a visualization of the current student loan rates (minimum and fixed) offered by the federal government and private lending companies, based on current data from their official websites.

Does Bank of America offer student loan refinancing?

Bank of America does not offer student loan refinancing, just as the financial institution does not offer private student loans and the FFEL program anymore. It is a good thing that other financial firms enable you to refinance your old Bank of America student loans as well as the educational loans you received from other lending companies. Refinancing options that you may explore for federal vs private student loans include Earnest, SoFi, LendKey, Splash, and Navient.

What alternatives to student loans does Bank of America provide?

Despite no longer offering student loans, Bank of America still offers a few products and services that can benefit the average American.

1. 529 Plans

In 2008, the same year that Bank of America halted its private student loans program, the financial company acquired Merrill Lynch & Co., Inc. Today, Bank of America manages 529 plans through Merrill Edge, an online investment and trading platform that was formed after the acquisition. Offered across the US, 529 plans are tax-advantaged financial plans that enable individuals to save and grow money through investments, with the aim of funding college and K-12 education as well as repaying student loans, among other qualified costs. Account owners have several 529 portfolio options: year-of-enrollment portfolios, diversified portfolios, single fund portfolios, and stable principal portfolios.

2. Student Banking

Bank of America also guides young individuals through their financial products and services, including checking accounts, savings accounts, and credit cards. For instance, Bank of America offers SafeBalance Banking®, a checkless account without monthly maintenance fees for account owners below 25 years old, with a minimum daily balance of $500, or those enrolled in Bank of America’s Preferred Rewards. Moreover, students can also opt to open a Bank of America Savings account with its own benefits, such as the waived monthly maintenance fee for the first 6 months.

How can Bank of America help me save for college?

In the academic year 2023–2024, 37% of college costs in the US were covered by parent income and savings, which accounts for the largest share among available funding sources. Scholarships and grants follow with 27%, and then student loans taken out by students themselves with 12%. College loans for parents and student income and savings cover 11% each. Meanwhile, relatives and friends account for 2% of college expenses (Sallie Mae, 2024).

These data points show that other college funding sources may be available to you, other than student loans. These alternatives to Bank of America student loans may also save you from accumulating more debt in the future. As I discussed in the previous section, Bank of America provides students with financial tools and services that can assist them in saving for college. The following are three effective ways the bank can help you:

529 Plans. Bank of America provides access to 529 college savings plans, which allow individuals to save for education expenses in a tax-advantaged account. Contributions to a 529 plan grow tax-free, and withdrawals for qualified education expenses are also tax-free.
Savings Accounts. Bank of America offers several types of savings accounts, including those specifically designed for educational purposes. These accounts often come with competitive interest rates and easy access. Automatic transfer features can help ensure regular contributions to these accounts.
Cash Rewards Credit Card. The Bank of America® Customized Cash Rewards credit card enables users to earn cash back on everyday purchases. By strategically using this card and directing the cash rewards into a savings account or 529 plan, individuals can boost their college savings efforts. This method provides a way to earn extra money for college expenses without altering regular spending habits.

How does Bank of America’s 529 plan work?

Through Merrill Edge, Bank of America manages its 529 Plans, a tax-advantaged savings and investment program designed to cover education-related expenses, such as college and K-12 education costs. Named after Section 529 of the Internal Revenue Code, these plans are available in all 50 states and the District of Columbia.

One of the benefits that 529 plans offer is that you can set it up and contribute for yourself, your child, or your grandchild, among other qualified beneficiaries. Withdrawals are also tax-free for qualified expenses. Moreover, you may wonder, “How much can I contribute to 529 plans?” These plans have account balance limits that depend on the state where account owners live. Because of these advantages, over 16 million American families have already created 529 plans, and the amount of contributions across the US in 2023 totaled approximately $450.5 billion (Hanson, 2024).

Moreover, account owners can tailor their investments by choosing among a diverse range of portfolio options:

Year of Enrollment Portfolios. These require account owners to contribute aggressively to their accounts at the start of the program. Contributions become more conservative when near the enrollment year.
Diversified Portfolios. These require a specific objective for investing, including growth or income.
Single Fund Portfolios. These enable account owners to choose the investment vehicles that they want and how much they want to allocate for each.
Stable Principal Portfolios. These are for individuals who have a low risk tolerance or those who need educational funds soon.

What scholarships does Bank of America offer for students?

Bank of America does not have a scholarship program as of the moment but offers internship and leadership opportunities for student leaders. Released in 2004, Bank of America’s Student Leaders® has been providing high school juniors and seniors with the chance to go on 8-week paid internships at local nonprofit organizations in the US. The program also enables students to join a week-long Student Leaders Summit. Student Leaders® aims to give students the immersive firsthand experience of understanding and helping address community needs. Through the leadership summit, students will develop their civic and leadership skills.

Can you get a student loan for past due tuition?

Although Bank of America no longer provides student loans, students encountering immediate tuition shortfalls may still explore alternative financing options. Evaluating emergency relief programs or private lending avenues can offer critical support when facing past due tuition challenges. For further guidance on assessing eligibility and navigating available funding sources, please review this comprehensive guide on how can you get a student loan for past due tuition.

Does Bank of America offer advanced digital banking features for students?

Bank of America’s digital solutions are designed to streamline financial management for students. The bank’s mobile and online platforms enable secure, 24/7 access to account details, transaction histories, and budgeting tools, allowing students to monitor spending and set savings goals effectively. Enhanced security measures, including multi-factor authentication and real-time fraud alerts, support safe digital banking. These features, when combined with user-friendly interfaces, help students optimize their financial routines while accessing innovative tools to plan academic investments, such as exploring cheapest online masters degrees.

What student banking services does Bank of America offer?

Bank of America offers banking services tailored to students' needs. The SafeBalance Banking® account is a standout option to help students avoid overdraft fees. This account comes with a low monthly maintenance fee, which can be waived for eligible students, and provides essential banking services without the risk of overspending.

Moreover, Bank of America supports long-term education savings through its 529 plans. These plans allow families to save for future college expenses in a tax-advantaged account, with the potential for tax-free growth and withdrawals when used for qualified education costs. By combining everyday banking solutions with strategic savings options, Bank of America helps students and their families plan and save for a successful educational journey.

Can international students open an account in Bank of America?

International students can open an account in Bank of America. If you are a foreign student, you will be required to provide the bank with the following requirements if you decide to open an account:

Two forms of identification
Tax identification number
Proof of a foreign and US address

For your forms of identification, you can choose among the allowable primary and secondary IDs:

Primary ID: Foreign passport with photo; US Non-immigrant Visa and Border Crossing Card-DSP-150 with photo; Mexican, Guatemalan, Dominican, Colombian Consular ID with photo
Secondary ID: Foreign driver’s license or US driver’s license with photo; US student ID validated for current term or school year with photo; debit or major credit card from a nationally well-known company; US Department of State Diplomat ID; Mexican Voter Registration Card with photo

What financial advice does Bank of America provide for students managing debt?

Bank of America is committed to equipping students with financial literacy tools essential for navigating debt and achieving financial independence. While it no longer offers student loans, the bank provides resources focused on budgeting, saving strategies, and understanding the fundamentals of debt management. These resources can be instrumental in educating students on how to plan, prioritize, and allocate their finances effectively.

For students looking to manage existing loans, leveraging external expertise can be vital. For example, those struggling with poor credit scores can explore tailored solutions such as student loans for bad credit. These student loan options often provide flexibility for students facing credit challenges, ensuring they can access the funds necessary for education without overwhelming financial strain.

Additionally, Bank of America encourages students to embrace practical saving habits while balancing educational and living expenses. By integrating advice from seminars, online resources, and personalized consultations, students are better positioned to make informed decisions about borrowing and repayment. Learning these skills early can build a foundation for long-term financial stability as they transition into their professional lives.

Are there flexible student loan options for part-time study?

For students enrolled part time, choosing a loan that aligns with reduced course loads and potentially lower income is essential. Evaluating options such as the student loan for part-time study can offer tailored borrowing limits, flexible disbursement timings, and repayment structures that accommodate part time enrollment. Analyzing these factors helps ensure that the selected financing matches both academic schedules and financial commitments without overextending debt.

What are the risks of misallocating student loan funds for living expenses?

Improper allocation of student loan funds can create long-term financial challenges. When student loans are diverted to non-essential expenditures rather than covering core living costs, borrowers may encounter increased repayment burdens and limited financial flexibility. It's important to differentiate between immediate necessities such as housing and food, and discretionary spending, ensuring a sustainable budget that mitigates the risk of future debt accumulation. For a detailed evaluation of responsible fund usage and budgeting strategies, please review the comprehensive guide Can you use student loans for living expenses?

Does Bank of America offer guidance on using student loans for living expenses?

While Bank of America no longer provides student loans, students who utilize loans from other institutions can benefit from strategic planning to maximize these funds. Bank of America offers financial literacy resources that support students in managing their budgets and making informed decisions about balancing education and daily expenses.

If you're navigating how to allocate student loans effectively, prioritizing living expenses like housing, food, and transportation is crucial. To make the most of your funds, explore comprehensive financial advice, such as this detailed guide on using student loans for living expenses. Integrating such strategic insights into your financial plan can help ensure that you maintain financial stability while focusing on your academic journey.

How can I build credit while using Bank of America's financial products?

Establishing a strong credit profile early is vital for long-term financial health. Students can leverage Bank of America's financial products—such as secured or monitored accounts—to begin building credit through consistent, responsible usage. Utilizing digital banking tools for budgeting and monitoring spending further supports efforts to improve credit scores. This strategic approach not only aids in building creditworthiness but also prepares students for broader financial opportunities, including further education and certification. For additional education-driven career advancement, consider the best online graduate certificate programs.

How can professional certifications impact financial success?

Professional certifications can offer industry-specific expertise that complements academic qualifications, often leading to enhanced job opportunities and increased earning potential. They provide focused, up-to-date training and skills that can help professionals bridge the gap between formal education and real-world demands. For targeted insights into high-demand certifications, review What certificates make the most money?.

Should I consider alternative education paths to reduce reliance on loans?

Exploring alternative education paths can offer a cost-effective route to acquiring valuable skills while minimizing debt exposure. Certificate programs, vocational training, and short-term courses can provide targeted expertise that aligns with industry needs and improves employability. For instance, many students benefit from the accelerated learning and lower tuition fees offered by online vocational schools, which can lead to quicker entry into the workforce and a faster return on investment. This strategic approach not only reduces reliance on traditional loans but also positions students to respond agilely to evolving job market demands.

What factors should you consider when exploring alternative education funding options?

When evaluating alternative financing strategies, prioritize criteria such as total cost of financing, repayment flexibility, and return on investment. Compare interest rates, fees, and repayment schedules across options, and analyze how different funding choices align with your short- and long-term career goals. Consider program accreditation, curriculum quality, and potential career support services as part of your evaluation. Additionally, cost-effective education alternatives—such as those offered by cheapest online schools—can help balance immediate living expenses with future earning potential.

Can scholarships and grants effectively reduce dependence on student loans?

Explore comprehensive scholarship and grant opportunities to diversify your education funding strategy. Focus on identifying programs that align with your academic achievements and career objectives, as these awards can significantly offset tuition expenses. Engage with institutional financial aid offices and trusted scholarship directories to uncover awards tailored to your profile and educational path. Additionally, researching cost-effective higher education options, such as the most affordable online universities for working adults, can further lower your financial burden and enhance eligibility for targeted funding.

Key Findings

Bank of America currently manages 529 plans through Merrill Edge, an online investment and trading platform formed after the acquisition.
37% of college costs in the US were covered by parent income and savings.
Scholarships and grants are also popular funding sources at 27%. Following this is student loans, which are taken at 12%.
Over 16 million American families have 529 plans
The amount of contributions to 529 plans across the US totaled $450.5 billion in 2023.

Other Things You Should Know about Bank of America Student Loans

Can I get a student loan through my bank?

You can get a student loan from your bank if it is available in their product lineup. Some banks do not offer private and government-backed student loans. For instance, Bank of America used to offer private student loans and the Federal Family Education Loan (FFEL) program but stopped providing these products over a decade ago. If your bank does not have student loans, you must explore other private lenders or federal student loan options to secure financing for your education.

Does Bank of America pay for college?

Bank of America does not directly pay for college tuition. But it offers financial tools, such as 529 plans and savings accounts, to help students manage and save for their education expenses. Moreover, they provide various financial resources and advice to assist with college planning and funding.

Which bank is good for students in the US?

Chase Bank is a popular choice for students due to its student-friendly terms for monthly service fees. For instance, Chase College Checking℠ does not require students to pay monthly service fees until graduation or for 5 years starting at account opening. Bank of America also offers Advantage SafeBalance Banking®, motivating students to save without monthly maintenance fees. Moreover, Capital One has MONEY, which is a free bank account that comes with a debit card and a mobile application, targeted at young individuals.

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