Business Insider's personal finance team compared Custom Choice Student Loans to the best private student loans and found it to be an industry leader thanks to low rates and no fees.
The lender will also deduct 2% of your loan balance after you graduate and offers flexible repayment terms, cosigner release options, and temporary forbearance for financial hardship.
Here's what to know about Custom Choice student loans and who may be eligible for them.
4.45% - 14.08% variable and 4.24% - 14.02% fixed
N/A
Undisclosed
$1,000 - $99,999
- No origination fees, prepayment penalties, or late fees
- Competitive APR
- Get your rates within a few minutes
- Low loan minimum
- Graduation discount available
- Credit check
- May need a cosigner
Custom Choice has competitively low rates compared to similar student loan lenders. The lender also will knock off 2% of your loan balance after you graduate.
- 2% principal reduction upon graduation
- 7, 10, or 15-year repayment terms available
- Customer service available by phone, email, or standard mail
- Loan amounts available: $1,000 loan minimum, up to $180,000 lifetime loan limit
- Repayment options available:
- Deferred: No payments for up to six months after leaving school
- Interest only: Only make payments on the loan's interest while in school and during six month grace period
- Flat payments: Pay $25 per month while in school and during grace period
- Immediate repayment: Start making full payments while still in school
- Loans are made by Citizens Bank, Member FDIC
Custom Choice Student Loans Overview
Custom Choice Undergraduate Student Loans 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 have a term length of seven, 10, or 15 years.
If you choose to make automatic payments from a checking or savings account, you'll receive a 25 basis-point discount on your rate. Additionally, Custom Choice offers a 2% Grad Reward reduction on your loan's principal after you complete your degree.
Custom Choice will perform a soft credit inquiry when showing you your rates, which does not impact 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 simultaneously.
Be sure to 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.
To contact Custom Choice's customer support, call the lender, email, or reach them via physical mail.
Types of Custom Choice Student Loans
Custom Choice offers student loans for only a couple of types of degrees, including undergraduate and graduate loans.
Custom Choice Undergraduate Student Loans
Custom Choice Undergraduate Student Loans offers 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
Custom Choice Custom Choice Graduate Student Loans 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 to Apply for Custom Choice Student Loan
Custom Choice Student Loans Eligibility Requirements
To be eligible for a Custom Choice student loan, you must meet the following requirements:
- You're a U.S. citizen or permanent resident, or an eligible non-citizen with valid documentation
- You're at least 18 years old, or the legal age of majority in your state if your cosigner meets the age requirements
- You're enrolled at least 50% of the time in a degree-granting program at an accredited or approved college
- You meet the school's academic requirements
- You have a minimum credit score of 625
- You have a minimum annual income of $1
- You have at least 18 months of good credit history or have a good cosigner
Custom Choice Student Loans Application Process
1. Gather the required information. This includes your Social Security number, your school of enrollment, your enrollment status, the loan amount you need, your address, and other financial documents.
2. Fill in the details of your online application. It will take just a few minutes to complete, and then you'll get your rates.
3. Send the required supplementary documents. Custom Choice may require certain financial documents, including proof of income and residency.
4. Accept your loan offer. After you get all your documents in order, Choice Choice will send you a formal loan agreement. Then it will fund your loan after you sign on the dotted line.
Required Documentation at Custom Choice
To apply for a student loan with Custom Choice, you'll need to provide your Social Security Number, proof of income, proof of acceptance to an accredited institution, and the loan amount you'll need. You'll also need to supply a recent pay stub, monthly housing cost, and your anticipated graduation date. If applying with a cosigner, they'll need to provide their Social Security Number, proof of income, as well as a government-issued ID.
Custom Choice Interest Rates and Fees
Current Interest Rates
Custom Choice student loan interest rates range from 4.45% - 14.08% variable and 4.24% - 14.02% fixed.
Borrowers can choose whether they want a fixed interest rate for the life of the loan or a rate that changes with the market.
Fee Structure and Loan Terms
There are no fees associated with Custom Choice student loans. This includes no origination fees, no prepayment fees, or late fees. You can take out a loan with a term of either seven, 10, or 15 years.
Custom Choice Repayment Options and Flexibility
Available Repayment Plans
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 Repayment
- Make no payments while in school or during a six-month grace period
- Unpaid interest accrues
- Interest is capitalized at the end of grace period
- Highest total cost
Flat Repayment
- Pay $25 per month while in school and during a six-month grace period
- Unpaid interest accrues
- Interest is capitalized at the end of the grace period
- Low in-school payments
Interest-only Repayment
- Pay the loan's interest monthly while in school and during a six-month grace period
- Higher in-school payments
Immediate Repayment
- Make payments on the loan's principal and interest right away
- Highest in-school payments
- Lowest total cost
Deferment and Forbearance Options
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.
Pros and Cons of Custom Choice Student Loans
Custom Choice Advantages
- No origination fee, prepayment penalty, or late fee. You won't pay fees on Custom Choice's student loans, saving you on the overall cost of borrowing.
- Low minimum loan amount. You can borrow as little as $1,000 from Custom Choice, a great option if you only need a little money to tide you over.
- Loan balance reduction after graduation. Custom Choice will reduce your overall loan balance by 2% after you graduate.
- Flexible repayment terms. Choose from 7, 10, or 15-year repayment plans to best fit your financial situation.
- Cosigner release available. Borrowers can apply to remove their cosigner after making 36 consecutive on-time principal and interest payments.
Custom Choice Disadvantages
- Rates on graduate loans are more competitive than on undergraduate loans. Borrowers who want an undergraduate loan might find a better deal elsewhere.
- No mobile app. If you want to manage your loans on the go, you won't be able to do so with Custom Choice.
Get Rates
Today's student loan rates will vary by loan issuer, and even small differences in interest rates will add up over time. Compare rates from the best student loan refinance companies and best private student loans using the tool below.
Alternatives to Custom Choice Loans
Custom Choice Student Loans vs. Earnest Student Loans
Earnest Undergraduate Student Loans offers six repayment term length options, while Custom Choice has only three options.
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.
Custom Choice Student Loans vs. Sallie Mae Student Loans
Custom Choice and Sallie Mae both have three repayment term options. However, Sallie Mae Undergraduate Student Loans determines your repayment term length for you, so another lender will be better if you want to choose your own length.
Neither lender charges origination fees or prepayment penalties, but Sallie Mae does charge a late payment of 5% of the amount due, capped at $25.
Sallie Mae Student Loan Review
Custom Choice Student Loans Customer Experience
We include a bank's Better Business Bureau rating to help you decide whether a bank is trustworthy or not. BBB ratings are based on how many customer complaints a bank has, how quickly the bank responds to and resolves complaints, whether government action has been taken against the bank, and how long the bank has been opened, among other factors.
Custom Choice Student Loans doesn't have a BBB page. However, the Customer Choice Loan is made by Citizens Bank, which currently has an A rating from the BBB.
It's also worth noting that in May 2023, the Consumer Financial Protection Bureau (CFPB) reached a settlement with Citizens Bank over allegations that it violated consumer financial protection laws related to credit card dispute resolution.
Why You Should Trust Us: How We Rated Custom Choice Student Loans
We rate all student loan products in our reviews and guides on a 1-5 scale. The overall rating is a weighted average considering seven different categories, some of which are judged more heavily than others. They are:
- Interest rate (20% of rating)
- Fees (20% of rating)
- Term lengths (15% of rating)
- Repayment options while in school (15% of rating)
- Borrower accessibility (15% of rating)
- Customer support (7.5% of rating)
- Ethics (7.5% of rating)
Each category's weighting is determined based on its importance in the overall experience of taking out a student loan. For instance, rates and fees have the most significant impact on the total cost of your loan, so we weigh those the most heavily.
Read more about how we rate student loans >>
Custom Choice Student Loan FAQs
Custom Choice student loan fixed interest rates range from 4.45% - 14.08% variable and 4.24% - 14.02% fixed.
Custom Choice offers competitive interest rates, which vary based on the type of loan and the borrower's credit profile.
To apply for a Custom Choice student loan, complete your application online through the Custom Choice website. Follow the step-by-step process and submit the necessary documents.
Yes, you can refinance existing student loans with Custom Choice. It offers refinancing options for both federal and private student loans.
There are various repayment options available with Custom Choice, including standard, interest-only, and deferred repayment options.
No, Custom Choice student loans typically carry no origination fees or prepayment penalties. Review your loan terms for any additional charges.
