Astrive student loans offer one strategy for financing your education, and are an alternative to high-interest credit cards or a personal loan that can have an impact on your credit score.
Astrive student loans are designed for students of 17 years of age or higher, and primarily for undergraduates enrolled in a four-year college degree program. The competitive interest rates and flexible repayment plans are attractive, but are Astrive student loans really worth it?
Who is eligible for Astrive student loans, and what are the actual interest rates? Here’s an overview of Astrive student loans for any student or parent looking for a ways to finance a college education:
Who Qualifies for Astrive Student Loans?
the first step in qualifying for an Astrive student loan is finding out if your school is approved to accept financing from Astrive. Not every college or university in the U.S. is approved, and you can call Astrive directly to find out, or just check the Astrive Student Loans website for current listings.
You have to be a U.S. citizen or permanent resident (in the country for at least 2 years) in order to qualify for an Astrive student loan. Most loan applications require a co-signer for review, and you must be at least 17 years of age when you fill out the application.
You will also need to show proof of two years of employment, along with almost two years of solid credit history. If you’re right out of high school and have been working throughout, you should be able to qualify with a qualified cosigner.
Astrive Student Loans Repayment Plans and Interest Rates
Astrive student loans offer three repayment plans for undergraduates:
- Immediate repayment
- Interest-only monthly payments
- Deferred repayment
Choosing the right repayment plan is important for your future credit and ability to take on other loans or financing you may need if you decide to go to graduate school.
The best choice is to pay as much as possible during school so you don’t start collecting interest on a deferred loan. The interest-only and deferred repayment plans do give you an advantage to avoid higher payments during school, but you may have difficulty keeping up if you have other expenses after graduation.
Interest rates range from 9.10% – 9.18% depending on the type of repayment plan, and you can knock off an extra 0.5% if you sign up for automated payments.
Astrive Student Loans vs. Financial Aid
Astrive student loans can only be used for ‘education-related’ expenses. Instead of getting a personal check, you’ll be given a loan for monies toward specific purchase only; this includes tuition, room and board, lab fees, traveling home, computer equipment, and even studying abroad.
Items that you can’t purchase with the loan money include car payment, doctor’s visits, or even dorm furniture. Astrive encourages students to use the loans to fill the gap between financial aid and personal credit cards during college – consider Astrive student loans as a convenient personal loan solely used for school-related fees.
Bottom Line: If you have at least two years of continuous employment and strong credit history, Astride student loans may offer a better loan program than taking out a personal loan or maxing out your credit cards.
The loan rates are competitive, and if you can afford to, you do have an option to pay off your Astrive student loan completely without incurring extra fees as soon as you graduate.
Astrive Student Loans – Choosing the Right Repayment Plan
If you’ve selected Astrive student loans to pay for a portion or all of your educational expenses, you’ll need to choose the right repayment plan to maximize your investment.
Astrive student loans offer competitive rates and convenient payment plans, but you do need to be aware of origination fees and the actually amounts you’ll be paying each month during the repayment period.
At first glance, the deferred payment plan with Astrive student loans may seem like the best choice as you continue your studies as an undergraduate student; however, the total finance charges you can accumulate with this strategy are over double the value of the loan.
Choosing the right repayment plan with Astrive student loans means looking at the pros and cons of each; here’s an overview of each plan, and tips on making the right decision:
Astrive Student Loan Repayment Plans
You have three choices for repayment with Astrive student loans: immediate repayment, interest-only repayment, and deferred repayment. Deferred repayment is often seems to be the most attractive to college students, because you don’t have to worry about paying back any part of the loan for up to 4 years after graduation.
However, the delay can cost you over $21,000 in finance charges on a $10,000 loan – almost triple the value – so the other two options are a much better choice if you don’t want to accumulate an extensive amount of debt as you enter the work world.
Pros and Cons of Immediate Repayment with Astrive Student Loans
The immediate repayment option with Astrive Student loans requires you to pay a 3% origination fee (about $300), so you’re borrowing $10,309.28 in sum.
You’ll be making payments during school at a rate of $91.04 per month for the next 240 months at an APR of 9.17%. This equates to $11,849.60 in finance charges over the course of repayment, and you can make larger payments along the way.
The biggest benefit of this plan is the low origination fee, and freedom to save yourself from a large debt right after you graduate. This is the best plan for you if you’re working part-time and have some extra money – a little less than $25 per week – to make a reasonable payment towards your loan.
Pros and Cons of Interest-Only Repayment with Astrive Student Loans
The interest-only repayment plan with Astrive student loans also offers a 3% origination fee, but your loan is deferred for 48 months. You are responsible for paying $75.09 per month during school, and $91.04 after the deferral period is over.
This also extends out to 240 months at an APR of 9.10%. This plan equates to $15,453.92 in finance charges, so you will have student loan debt for a few years after graduation; however, the interest payments will help you pay off the balance much faster.
Pros and Cons of Deferred Repayment with Astrive Student Loans
The Deferred Repayment plan is the most expensive of the three, and includes a 5% origination fee and a deferment period of 48 months.
You won’t be paying any money while you’re in school, but the total monthly payment will be $131.44 after graduation. You’ll be paying this for the next 240 months at an APR of 9.18%; however, the total finance charges with this plan are $21,545.60.
The best option with Astrive Student loans is the Immediate Repayment option if you can afford to make payments during college. If not, the interest-only repayment will at least give you an advantage of paying off some of the debt before graduation, and you’ll only incur about $5,500 in finance charges on top of you loan.
Making the right choice with your Astrive student loan repayment plan will help you manage your finances with ease after graduation, and having solid credit can help you take on other loans, credit cards, and financing you need.