Business

Custom Choice Student Loans Review 2022


Personal Finance Insider writes about products, strategies, and tips to help you make smart decisions with your money. We may receive a small commission from our partners, like American Express, but our reporting and recommendations are always independent and objective. Terms apply to offers listed on this page. Read our editorial standards.

Pros and cons of Custom Choice student loans

Custom Choice undergraduate student loans

Regular APR

Variable: 1.03% – 9.67%, Fixed: 3.20% – 10.76%

  • Pros & Cons
  • Details

  • Pros
    • No origination fees, prepayment penalties, or late fees
    • Competitive APR
    • Get your rates within a few minutes
    • Low loan minimum
    • Graduation discount available
    Cons
    • Credit check
    • May need a cosigner
    • $1,000 loan minimum, up to $180,000 lifetime loan limit
    • 2% principal reduction upon graduation
    • 7, 10, or 15-year repayment terms available
    • Customer service available by phone, email, or standard mail
    • Loans are made by Citizens Bank, Member FDIC

    Custom Choice has both variable-rate and fixed-rate undergraduate loans, and the interest rates on these loans are comparable to or lower than competing lenders’ rates. 

    A special feature Custom Choice offers is a 2% reduction of your loan’s principal after you graduate. This may not seem like much, but will save you some on the overall cost of your loan. 

    Custom Choice graduate student loans

    Regular APR

    Variable: 1.03% – 9.67%, Fixed: 3.20% – 10.76%

  • Pros & Cons
  • Details

  • Pros
    • Great APR
    • No origination fees, prepayment penalties, or late fees
    • Can receive graduation discount
    • Get your rates within a few minutes
    • Low minimum loan amount
    Cons
    • Credit check
    • May need a cosigner
    • 7, 10, or 15-year repayment terms available
    • Customer service available by phone, email, or standard mail
    • $1,000 loan minimum, up to $180,000 lifetime loan limit
    • 2% principal reduction upon graduation
    • Loans are made by Citizens Bank, Member FDIC

    Custom Choice’s graduate student loans have the same features as its undergraduate loan offerings — three options for repayment term lengths, competitive APRs, and a $1,000 loan minimum. 

    How Custom Choice student loans compare 

    Custom Choice offers competitive APRs on both its undergraduate and graduate loans. Here’s how Custom Choice stacks up to the competition:

    Earnest offers the most options for repayment term lengths with six, while Custom Choice and Sallie Mae both have three options. However, Sallie Mae determines your repayment term length for you, so another lender will be better if you want to choose your own length.  

    Custom Choice has the lowest maximum interest rate on both fixed-rate and variable-rate loans for undergraduates and graduate students — which could mean it’s a good choice if your credit isn’t in the best shape. Earnest offers the lowest minimum interest rates on these types of loans, so if your credit score is excellent, Earnest may be a good choice.

    None of the three lenders charge origination fees or prepayment penalties, but Sallie Mae does charge a late fee of 5% of the amount due, capped at $25. 

    How Custom Choice student loans work

    Custom Choice offers both fixed-rate and variable-rate undergraduate and graduate loans. Custom Choice allows you to apply with a cosigner, which may reduce your interest rate and the overall cost of your loan. Loans come with a term length of seven, 10, or 15 years. 

    Pursue federal student loan options before considering private student loans, including a Custom Choice loan, as you can often get better terms and protections through the government.

    You’ll get a .25% rate discount if you choose to make automatic payments from a checking or savings account. Additionally, Custom Choice offers a 2% reduction on your loan’s principal after you graduate. 

    To contact Custom Choice’s customer support, call the lender, send an email, or reach them via physical mail. 

    Custom Choice will perform a soft credit inquiry when showing you your rates, which has no impact on your credit score. After you choose your loan options and send in your application, the lender will conduct a hard credit inquiry, giving the company a comprehensive look at your credit history but also potentially dinging your score. 

    What options do I have to repay my Custom Choice student loans?

    Custom Choice offers several options to repay your loans: deferred, flat, interest-only, and immediate payments. The best repayment plan for you depends on your situation.

    Deferred and flat payments will cost more than interest-only or immediate payments because interest will accrue while you’re in school and during your grace period. This interest will then capitalize, meaning it will be added onto your loan balance after periods of nonpayment, including forbearance, deferment, and after your grace period. This will increase your overall loan principal, and you’ll later pay interest on that higher amount, upping the total cost of your loan. 

    Is Custom Choice trustworthy?

    The Better Business Bureau, a non-profit organization focused on consumer protection and trust, gives Custom Choice an A+ rating. The BBB measures companies by evaluating replies to consumer complaints, truthfulness in advertising, and clarity about business practices. 

    You aren’t guaranteed to have a positive relationship with Custom Choice just because the business has a great BBB rating. Ask with your friends and family about their experiences with the lender and read what other customers are saying about the company online. 

    Custom Choice hasn’t been involved in any scandals or controversies, so you may be comfortable borrowing from the lender. 



    Source link

    Leave a Reply

    Your email address will not be published. Required fields are marked *

    close