Does Bank Of America Offer Student Loans?

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While Bank of America used to offer both private student loans and federal student loan servicing, the bank left behind all student loans in 2010. You can still find other student banking services through Bank of America.

Some of these options may help with education expenses, but it’s always a good idea to start by exploring your federal student loan options. If you find you need additional funding from private student loans, many other national banks, credit unions and online lenders still offer these options.

Bank of America no longer offers student loans

Currently, Bank of America isn’t offering any student loan products. If you previously had a student loan with Bank of America, it is now serviced by other loan servicers.

Up until 2008, Bank of America serviced both private and federal student loans. The lender stopped offering private student loans due to the 2008 financial crisis, which affected the student loan industry. Bank of America continued servicing federal student loans under the Federal Family Education Loan (FFEL) Program, but the government ended the program in 2010.

If Bank of America was your servicer for federal student loans, you can see who currently services your loan by logging in to the Federal Student Aid website using your Federal Student Aid ID (FSA ID). You can also call the Federal Student Aid Information Center at 800-433-3243.

You can also see who currently services your loans by checking your credit report. Check each credit bureau for free once a week or get a free credit report from AnnualCreditReport.com.

Alternatives for private student loans

Generally federal student loans are the best option since they come with various helpful programs, which include forbearance and income-driven repayment plans, but if federal loans are not enough, private loans may be a beneficial alternative.

Private loans can be used to cover the cost of tuition, room, board, fees and more. These loans are available from banks, online lenders and credit unions. When searching for a loan, compare interest rates, grace periods and fees to decide on the best option.

Some of the best-known private loan options include:

Alternative student services Bank of America provides

While Bank of America no longer offers student loans, they do have a number of financial products specifically for students. While these options aren’t student loans, they can be helpful ways to save for or cover college expenses.

These are services students can find at Bank of America:

• 529 plans: A 529 savings plan is a state-sponsored way to save for education expenses, without paying taxes on deposits or withdrawals. Bank of America offers 529 plans through Merrill.
• Student banking: Bank of America student banking accounts allow anyone over 16 to be the sole account owner. With a SafeBalance account from Bank of America, you can get a debit card, deposit and withdraw money and have access to online banking. This account won’t allow you to have paper checks.
• Student reward credit cards: You’ll find multiple options for student credit cards at Bank of America. The bank offers options for both cash rewards credit cards and travel rewards credit cards. All four student credit card options have no annual fee.

What to do with old Bank of America student loans

If you took out student loans with Bank of America before 2010, you still have the option to refinance or consolidate them.

• Refinance student loans
  

  When you refinance your student loans, you pay off existing private or federal student loans using a new private loan with a fixed monthly payment. This can help you organize your payments into a single loan and give you a lower interest rate. Remember that if your loans are federally owned, there are some downsides, such as losing federal protections and benefits, by refinancing.

  Before choosing a lender, shop around with at least three companies to look for competitive rates and terms. You can look at both traditional lenders and online lenders.

• Consolidate student loans
  

  Consolidating means taking multiple federal student loans and wrapping them into one Direct Consolidation Loan with one monthly fixed payment. Consolidation has its downsides. For instance, unlike refinancing, consolidating won’t change your interest rate — in fact, you may end up paying more in interest over the life of your loan.

  With this caveat in mind, consolidation does preserve your federal protections, including the options to pause your payments through deferment or forbearance and access income-driven repayment plans. If you’re interested in consolidation, you can apply for a Direct Consolidation Loan on the Federal Student Aid website or contact your loan servicer with questions.

Bottom line

Bank of America exited the student loan business well over a decade ago, but there are many other private student loans available for those who may need additional funding for college-related expenses. The options include other banks, credit unions and online lenders.

For those of you who may still have a student loan with Bank of America that was taken out before 2010, you also have the option to refinance or consolidate your loan with a different lender.