Our experts answer readers’ student loan questions and write unbiased product reviews (here’s how we assess student loans). In some cases, we receive a commission from our partners; however, our opinions are our own.
The bottom line: Custom Choice Undergraduate Student Loans has competitively low rates compared to similar student loan lenders. The lender also will knock off 2% of your loan balance after you graduate.
Read more about Insider’s picks for the best private student loans >>
Who is Custom Choice Best For?
Custom Choice is a great option for borrowers who want to avoid fees and pay competitive rates.
Types of Student Loans Offered by Custom Choice
Custom Choice offers student loans for only a couple of types of degrees, including:
UndergraduateGraduate
Custom Choice Student Loans Details
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 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 basis-point discount on your rate 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.
Custom Choice Undergraduate Student Loans
Custom Choice Undergraduate Student Loans 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
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.
Pros and Cons of Custom Choice Student Loans
Pros
No origination fee, prepayment penalty, or late fee. You won’t 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.
Cons
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.
How to Apply for Custom Choice Student Loans
1. Gather 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. You’re apply to complete the application in just a few minutes, and after doing so 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.
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.
DeferredFlatInterest-onlyImmediate
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
Pay $25 per month while in school and during a six-month grace periodUnpaid interest accruesInterest is capitalized at the end of grace periodLow in-school paymentsPay loan’s interest monthly while in school and during a six-month grace periodHigher in-school paymentsMake payments on the loan’s principal and interest right awayHighest in-school paymentsLowest total cost
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.
Custom Choice Student Loans Frequently Asked Questions
Does Custom Choice require a cosigner?
No, Custom Choice does not require a cosigner — though adding one can boost your approval chances.
Does Custom Choice have any fees?
There are no fees on Custom Choice loans.
How long does it take to apply with Custom Choice?
You can fill out an application and get your rates within minutes.
Custom Choice Trustworthiness
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.
Custom Choice Student Loans Competitors
Custom Choice vs. Earnest
Earnest 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 vs. Sallie Mae
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.
Neither lender charges origination fees or prepayment penalties, but Sallie Mae does charge a Sallie Mae Undergraduate Student Loans – Fees Display.
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 that takes into account 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 to your borrowing experience. Rates and fees have the most significant impact on the total cost of your loan, so we weigh those the most heavily. Customer support and ethics are still crucial parts of the borrowing experience, but do not directly tie to a student loan’s terms, so they have less of an impact on the overall rating.