Custom Choice is a student loan company that gives out private loans with various special features. Custom Choice Student Loans Review
It is never straightforward to pay for college in the United States. It is harder to figure out how to pay for college if you are not a U.S. citizen.
Anyone who is a US citizen who fills out the Free Application for Federal Student Aid (FAFSA) can get financial help from the US Department of Education. This help can come in the form of loans.
Custom Choice may be able to help people who don’t qualify for Federal student loans get a private student loan instead. These loans are “full coverage” loans that can help students pay for school even if they can’t get support from the government. This review of Custom Choice Student Loans tells you everything you need to know, including the most important features, fees, and pros and downsides. Custom Choice Student Loans Review
One of the lenders on the Credible platform is Custom Choice student loans. Here on Credible, you can easily compare your options.
What Is Custom Choice?
Custom Choice is a subsidiary of Boston-based Cognition Financial Corporation. Custom Choice focuses on issuing private student loans to undergraduate students who are permanent legal residents, DACA residents, or U.S. citizens. These loans offer unique repayment plans and some protections that can make repayment more feasible for most borrowers. Custom Choice Student Loans Review
Most private student lenders offer “supplemental” loans designed to cover expenses that you can’t borrow directly from the US Department of Education. But Custom Choice offers “full coverage” loans. These loans can cover your entire tuition, books, room, and board.
The company doesn’t just issue loans, it is building loan products with pathways to repayment. It offers up to two months of loan forbearance for people affected by job loss or natural disasters. Loan co-signers can request release after just 36 months of successful on-time payments.
What Does It Offer?
Custom Choice offers private student loans for undergraduates. These are a few of the unique features of the loans. Custom Choice Student Loans Review
Private Student Loans For Undergraduate Students
Many private lenders focus on student loan refinancing or lending to graduate students. Custom Choice focuses primarily on lending to undergraduate students including people who may not qualify for Federal student loans. Custom Choice’s loans may help many first-generation college students finance a higher education that they may not be able to afford. Custom Choice Student Loans Review
Co-signers Required For Most Loans
Most students can’t qualify for a Custom Choice loan based on their income and credit history, so Custom Choice usually requires a co-signer. A co-signer agrees to make payments on the loan, if the primary borrower cannot or will not make payments as agreed. Co-signers dramatically reduce the riskiness of the loan in the eyes of the bank. Custom Choice Student Loans Review
Co-signer Release Program
Custom Choice typically requires a co-signer to take out a loan, but co-signers can request a release from the loan if the primary borrower makes 36 on-time payments on their loan.
This ensures that grandparents and others on limited budgets don’t have to drain their Social Security payments to cover a grandchild’s student loan payments. Custom Choice Student Loans Review
Multiple Repayment Terms
Custom Choice offers loan repayment terms of 7, 10, and 15 years. On top of that, borrowers can choose between fixed interest rate or variable rate loans.
In addition to the basic repayment terms, Custom Choice allows borrowers to customise their repayment schedule during school. It offers four repayment options.
- Fully deferred. Borrowers don’t make any monthly loan payments until 6 months after quitting school or graduating.
- $25 per month payments during school. The $25 per month payment won’t be enough to offset interest payments, but it can keep the overall balance of the loans from growing too fast.
- Interest-only payments during school. Borrowers don’t pay down the principal during their schooling, but they make interest-only payments each month. By doing this, the loan balance remains steady throughout college.
- Immediate repayment. Repayment of both principal and interest begins immediately. Custom Choice Student Loans Review
Up To Two Months Of Forbearance
Borrowers who face a job loss or a natural disaster can take up to 2 months of forbearance every 12 months (with limits on the total amount every five years). During the two-month deferment, you won’t make payments on your loan.
Interest continues to accrue on the loan and is “capitalised” when repayment resumes. For each month you take forbearance, your loan period will extend by exactly one month. Custom Choice Student Loans Review
Are There Any Fees?
Custom Choice doesn’t charge loan origination fees or late fees. However, you must repay the loan you borrowed with interest. Right now, Custom Choice’s interest rates range from 3.24% to 15.71% for fixed-rate loans or 4.18% to 16.38% for variable-rate loans.
How Does Custom Choice Compare?
Custom Choice offers some of the lowest interest rates for private student loans for undergraduates. But this may be because of the rigorous cosigning requirements. If you lack a great co-signer, expect a less favourable rate from Custom Choice.
Before you take out a loan with a private lender like Custom Choice, we recommend exhausting your other options. Apply for scholarships and grants. If you’re eligible, consider Federal student loans. Even if these have a higher interest rate, Federal loans have more protections than the loans offered by Custom Choice. Custom Choice Student Loans Review
Private loans should be your last option for financing college. Make sure to compare rates and terms at two or three lenders before choosing the right option for you. We track the ten best private student loan lenders to ensure you can choose from a quality list.
How Do I Open A Custom Choice Account?
To apply for a Custom Choice loan you’ll need several financial details. Borrowers need a Social Security Number, school information, the amount they want to borrow, and proof of income. Co-signers will provide their Social Security Number, proof of income, and a government-issued ID for identity verification. Custom Choice Student Loans Review
While the online application may take just a few minutes, Custom Choice sends the loan to your school for verification before funding it. This process can take several days.
You can start and get a quote from Custom Choice on Credible here >>
Is It Safe And Secure?
Custom Choice collects personal identifiable information (PII) on its loan applications. The loan applications are encrypted and Custom Choice limits the number of people who can see this information. It uses bank-level security processes for holding data, transferring money, and accepting payments. Overall, the company has excellent security practices. Custom Choice Student Loans Review
Like all online lenders, Custom Choice exposes borrowers and their co-signers to the risk of information theft and misuse. Custom Choice has partnered with large banks (including Citizen’s Bank) to ensure it can serve customers with high-quality technology. However, the risk of a hack is real with Custom Choice and other online lenders.
How Do I Contact Custom Choice?
Custom Choice prominently displays all its contact options on its Contact Us page. Call 866-232-3889 to speak to a loan specialist or email [email protected] if you have more general questions. Custom Choice Student Loans Review
Why Should You Trust Us?
We have been writing and reviewing student loan lenders and companies for over 10 years. Our editor-in-chief, Robert Farrington is America’s Student Loan Debt Expert™ and is one of the most knowledgeable experts about student loans in the United States.
When we look at student loan lenders, we look at the various loan types they offer, how competitive their rates are in the marketplace, and what types of repayment plans they offer. You can; we’ve reviewed substantially all of the lenders in the student loan marketplace here.
Furthermore, our compliance team audits the posted rates every weekday to ensure that our rates accurately reflect the best available information. Custom Choice Student Loans Review
Who’s this for, and is it worth it?
Taking on student loan debt is never our first recommendation, and private student loans are our least favorite way to finance an education. That said, Custom Choice offers a reasonable student loan for people who have a co-signer. The interest rates on these loans are modest, and the company offers various repayment terms to suit every budget. That said, we advocate shopping around for private loans before settling on one company. Custom Choice Student Loans Review
