Bank of America Student Loans Application Guide and Requirements 2024

Filed in Loan, Student Loan by on January 16, 2024

Bank of America Student Loans – The financial market has suffered instability in recent years, and your student loans could be caught in the middle. Some lenders, such as Bank of America, once rendered student loans but not anymore.

Bank of America Student Loans

When student loans are sold to a different servicer, borrowers can be left with questions about how to handle their loans. Here’s everything you need to know if you have a Bank of America student loan or are looking to get a new loan from the bank.

Bank of America Student Loans

Bank of America is one of the largest banks in the United States based on assets. It once offered private student loans and federal student loans, including Stafford Loans, PLUS Loans, and other loans under the Federal Family Education Loan Program (FFELP).

Applying for a new Bank of America student loan is no longer possible, but there are other options you can consider, which we have also discussed on this page.

Does Bank of America Still Offer Student Loans?

Bank of America stopped offering and servicing student loans in 2017 after selling off its portfolio of student loans.

According to certified student loan counselor Kat Tretina, “it’s quite possible that the loans have been sold multiple times since the sale, so you might have a different service than you did last year or five years ago.”

You can get copies of your credit reports by going to AnnualCreditReport.com if you’re unsure of who your loan servicer is. To get a list of your current federal loans along with the people who service them, you can also log into your StudentAid.gov account.

What Happened to Existing Bank of America Student Loans?

If you already have a student loan initially issued by Bank of America, you can check the status of the loan using the National Student Loan Data System (NSLDS), which is the U.S. Department of Education’s central database for Title IV loans and grants.

You should be able to log in if you already have an FSA ID. If you don’t have an FSA ID, you can create a new one online.

Bank of America Student Loan Options

Once you know the current status of your student loan and servicer, you can continue making loan payments through your servicer or look into refinancing or direct consolidation options.

Refinancing Bank of America Student Loans

Even if you refinance your original lender, when you refinance, a new lender will pay off the amount owed and issue you a new loan with new terms. This process might help you get lower interest rates or monthly payments.

Different services have different eligibility requirements, interest rates, and terms, which is why it’s important to compare your options. Since Bank of America no longer refinances student loans, you could consider some other lenders.

What are the Other Options to Consider?

Before you survey other private student loan lenders, it’s important to ensure you’ve completed some key financial aid steps:

1. Fill out the Free Application for Federal Student Aid (FAFSA). The FAFSA will determine the federal financial aid you’re qualified for, such as grants, work-study, and federal loans.

2. Identify your financial gap. After you receive your financial aid award, determine if you need additional funds. If you do, private student loans might be an option. Eligibility for private student loans is determined by the lender and based on factors such as income and credit score.

Bank of America’s Private Loans

The Bank of America announced in 2008 that it would no longer extend private loans. Shortly after, they started cutting their private loan portfolio.

When the loans were sold to a new servicer, borrowers received the information. But even though the loans were sold, the borrowers still owe the money on them.

If you don’t know who owns your loan, you can find that information on your credit report. You can check your credit report for free through AnnualCreditReport.com.

Bank of America’s Federal Loans

Bank of America continued to issue federal student loans such as Stafford Loans, PLUS loans, and FFEL loans in 2010. The loans stayed on Bank of America’s books for a full four years before Bank of America started selling them off.

In 2015, Bank of America announced that it had $2.7 billion worth of student loans for sale. It sold all of these loans for over two years.

Not sure who bought your loan? You can learn more through the National Student Loan Data System. All loans you find in NSLDS are eligible for income-driven repayment plans, federal loan consolidation, or private refinancing.

Compare all your options to be sure you’re taking advantage of the programs that suit your needs.

How to Search and Compare Student Loan Options

Every borrower has different requirements for financial aid. Here are some pointers to assist you in finding a loan, regardless of whether you currently have a Bank of America student loan or need one to finish your education:

Maximize federal student loans

When it comes to interest rates, repayment plans, and other features, federal loans provide the greatest advantages and safety. If you’re seeking student aid, your first option should be government-backed loans.

Check your budget

To find out how much you can afford on a prospective refinanced loan, look over your monthly spending plan.

Compare interest rates

To get the best deal, compare the rates on at least three private student loans or refinance loans. Variable or fixed rates may affect the amount of interest you pay.

CSN Team.

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