Custom Choice Review Private Student Loans: 2026 Review
Custom Choice offers student loans with flexible repayment options, no late fees and competitive interest rates.
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- 19 student loans lenders reviewed and rated by our team of experts.
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- Objective, comprehensive star-rating system assessing 40 categories and more than 50 data points across student loan origination and student loan refinance.
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Our Take
Custom Choice offers a 2% principal balance reduction with proof of graduation, and a 0.25% rate discount when borrowers use monthly electronic payments. There are no fees — including late fees — associated with a Custom Choice loan.
Pros
- No late fees.
- Prospective borrowers can see what interest rate they can get without a hard credit check.
- A 2% reduction in principal once students graduate (upon borrower request).
- A .05% rate reduction for every six months of consecutive on-time principal and interest payments (up to 0.25%).
- Wide variety of loan repayment options, allowing flexibility for borrowers.
- A rate discount of 0.25% when borrowers pay via monthly electronic payments.
Cons
- Extra payments are not automatically applied to the principal.
- No dedicated advisor or banker for borrowers.
- Does not offer rehabilitation programs for defaulted borrowers.
Lender | Fixed APR | Min. credit score | Variable APR | |
|---|---|---|---|---|
 Check Rate on Sallie Mae's website | 2.49-17.49% | Mid-600s | 3.75-16.95% | Check Rate on Sallie Mae's website |
 Check Rate on College Ave's website | 2.49-17.99% | Mid-600s | 3.89-17.99% | Check Rate on College Ave's website |
 Check Rate on Ascent's website | 2.69-16.86% | Low-Mid 600s | 3.65-16.06% | Check Rate on Ascent's website |
Check Rate on Monogram's website | 3.35-17.17% | Mid-600s | 3.53-17.23% | Check Rate on Monogram's website |
 Check Rate on ELFI's website | 2.99-12.85% | 680 | 6.75-13.05% | Check Rate on ELFI's website |
Full Review
Full Custom Choice Review
Undergraduate and graduate programs are eligible for loans. Co-signers are allowed, but not required for all borrowers. Students in graduate certificate programs may apply for loans. International students with a citizen or resident co-signer may also be eligible for Custom Choice student loans. Borrowers must be attending a school eligible for federal student aid funding. Custom Choice offers the following in-school repayment options: full payment, interest only, flat payment of $25, and full deferment.
Borrowers interested in a Custom Choice student loan can see their interest rate without a hard credit check, which can be beneficial for borrowers deciding between lenders. Custom Choice also sets itself apart with offers of a 2% principal reduction to borrowers who provide proof of graduation, and a 0.25% rate discount when borrowers sign up for monthly electronic payments.
Custom Choice loans scored well because of its customization and flexibility options for borrowers. This includes the breadth of in-school payment options, potential for hardship forbearance and length of that forbearance.
On the flip side, Custom Choice scored lower than competitors due to having a fixed interest rate higher than some competitors, and not having extra payments automatically applied to the principal. It also scored low for customer service, by not having a dedicated advisor or banker for borrowers, and not offering rehabilitation programs for defaulted borrowers.
More about Custom Choice
Loan and borrower requirements
Loan terms: 5, 7, 10, 15, and 20 years.
Loan amounts: $1,000 to $300,000 for undergraduate or $350,000 for graduate loans.
Minimum credit score: mid 600s.
Minimum income: At least $1.
Maximum debt-to-income (DTI) ratio: No DTI threshold required for approval.
Time requirement after filing for bankruptcy: Not publicly disclosed.
Co-signer: Allowed but not required. 70% of approved borrowers have a co-signer.
Payment and repayment
Allows greater-than-minimum payments via autopay: Yes.
Allows biweekly payments via autopay: Yes.
Grace period following graduation: 6+ months with extension option.
In-school repayment options: Deferred, flat fee of $25, interest-only and full payment.
Post-school repayment options: Interest-only payments, internship deferment (not counted against other deferment options), residency deferment (not counted against other deferment options), administrative forbearance (not counted against other forbearance options), natural disaster forbearance (not counted against other forbearance or deferment options), temporary interest rate reduction, temporary lower payments, military deferment (not counted against other deferment options).
Customer experience
Customer service: In-house customer service that can be reached via phone, e-mail, mail, and live chat.
Typical time for application approval: Once all documents have been delivered and verified, final approval can be done within minutes.
Loan servicer: AES/PHEAA.
Custom Choice extras
2% principal reduction to borrowers who provide proof of graduation.
0.25% rate discount when borrowers sign up for monthly payments.
Borrowers don’t need to meet Satisfactory Academic Process requirements to be eligible for Custom Choice loans.
Custom Choice offers $1,500 scholarships sweepstakes.
Before applying for an Custom Choice student loan
Before taking out a Custom Choice student loan, or any other private student loan, exhaust your federal student loan options first. To apply you’ll need to submit the Free Application for Federal Student Aid, known as the FAFSA.
» MORE: NerdWallet’s FAFSA Guide
Compare your private student loan options to make sure you’re getting the best rate you qualify for. In addition to interest rates, look at lenders’ repayment alternatives and the flexibility they offer to borrowers who struggle to make payments.
If you aren't eligible for a Custom Choice student loan
If Custom Choice denies your student loan application, the lender will let you know why. Depending on the reason, you may want to consider other lenders or, if you haven’t already, try applying with a co-signer.
If you don’t have access to a co-signer — or still aren’t eligible with one — consider lenders that don’t require co-signers or lenders that specialize in bad or no credit student loans.
STUDENT LOAN RATINGS METHODOLOGY
Our student loans editorial team surveyed 20 banks, credit unions and online lenders that offer student loans and student loan refinancing. These include the top lenders by market share and online search volume, as well as some lenders that serve specialty or nontraditional markets.
We considered and scored more than 60 features and data points for each financial institution in the categories of loan flexibility, affordability, transparency, customer experience and variety of borrowers served.
The stars represent ratings from poor (one star) to excellent (five stars). Ratings are rounded to the nearest half-star.
Read more about our ratings methodology for student loans and our editorial guidelines.