Private Student Loan Program from Bank of America
Bank of America, like many other student loan companies, offers student loans to help finance your college career. It may seem as though all loans are the same, but this is definitely not true. Education loans are very different from your run of the mill loan, and they offer unique benefits to borrowers.
However, it is important to make the distinction between the types of loans Bank of America offers in order for you to make an informed decision.
CampusOne Student Loans
One type of Bank of America student loan is the federal loan. Of course, federal loans are diverse and varied as well and it would take many, many pages to go into detail about them; however, it is important to note that Bank of America offers some of the most common federal loans such as the Stafford Loan, the PLUS loan, the Graduate PLUS loan and even consolidation loans. Each of these federal loans has some sort of government tie to them. Whether that tie be they are guaranteed, subsidized or have fixed rates depends on the specific loan.
Private BofA Student Loans
Private loans from Bank of America, on the other hand, have no federal ties whatsoever. They are very similar to a standard loan you would get at your bank. However, being that these private loans are for educational purposes, there are some important factors of their terms you should be aware of. Bank of America offers two types of private student loans: those that are certified by your school and those that are not.
School Certified Loans
There are two basic types of certified loans offered by Bank of America, which are the Bank of America Private Loans and the Bank of America TERI Loans. The private loans are a great way to fill in the gaps your other financial aid options leave and are available for all sorts of students, both undergraduate and graduate. These have flexible repayment plans and your minimum amount due each month is only $50, regardless of your loan amount.
The Bank of America TERI Loans, which stands for The Educational Resources Institute, are based on your creditworthiness or credit-readiness. You can get this loan for any educational purpose, so long as you are enrolled at least half-time.
Non-Certified Loans
The other type of private loan Bank of America offers does not need to be certified by your school. An example of this type of loan is the CampusEdge Student Loan, which acts as a great supplement to other federal financial aid. It can also be used to pay for education expenses besides tuition such as books, dorm fees and cafeteria fees.
Another non-certified loan is the Education Maximizer Loan, which also acts as a supplement to federal loans and grants. You can use the money for anything education related and you can borrow up to $40,000 a year. Payments can also be postponed until you have graduated from college.