Student Loans from Bank of America
Bank of America’s Student Banking division is focused on addressing the needs of cash-starved college students who are pulling together higher education financing. Most modern students draw from several sources to assemble college funding, so private financial aid alternatives fill valuable roles for a large percentage of college students.
Scholarships and grants provide preferred aid; because these forms of financial assistance do not require repayment, but loans are used to cover costs that exceed gift-aid awards. As students transition from high school into higher education roles, they face unusual financial circumstances. Emancipated on one hand, but generally without lengthy credit histories. Bank of America responds with a number of unique products, tailored to college-aged consumers.
Student Products and Services
College students need certain features from their money management providers, and they are not always the same account characteristics favored by mom and dad. College years are a time of credit-building, so Bank of America provides opportunities for college students to get off on the right foot.
“Solutions for Students” is a convenient banking resource for college students. The service includes:
- Ebanking with no minimum balance
- Mobile Banking
- Financial education resources
- Savings Accounts
- Enhanced security options
- Budgeting Tools
- Online Statements
- Text alerts
In addition to student-friendly banking options, BOA puts forth a number of credit cards, like The Bank of America Student Platinum Plus Visa Card, that are designed with college students in mind. The card includes 4 years of free identity theft protection and no annual fees. A competitive interest rate and a host of student-friendly services help you build your own credit, as you attend school.
Additional credit-building opportunities include cards that earn rewards, like the Bank Americard Travel Rewards for Students Card and the Bank Americard Cash Rewards For Students Card.
Providing Federal Loans
Important Update: Until recently, Bank of America administered Federal Student Loans. Currently, these loans are issued exclusively through the U.S. Department of Education William D. Ford Federal Direct Loans Program.
Additional privately funded student financing options have also been a part of Bank of America’s lending portfolio, but these student loans programs have also been suspended until further notice.
The following entry is maintained as a historical reference, and to serve as a resource; should Bank of America initiate student loans at a future date. For specific information, contact Bank of America directly at 1-800-344-8382
Bank of America is a student loan originator that works with the government to provide college loans. If you are awarded student loans, as part of your federal financial aid package, you choose your own lender. Bank of America can provide loans in this area.
Bank of America handles most federal loans, including Stafford Loans, PLUS loans (for parents), Graduate Student PLUS loans and Federal Consolidation Loans. Note that Stafford Loans are issued as ‘dependent’ loans or as ‘independent’ loans. When determining financial aid needs for dependent
students, the Department of Education considers parental income, as part of the financial aid application. Independent student need relates only to the income and assets of the individual student. As a result, student loan borrowing limits are higher for independent students.
Providing Alternative Loans
Additional private loans offered by Bank of America do not need to be certified by your school; they are issued independently. For example, the CampusEdge Student Loan, which acts as a supplement to federal financial aid. It helps with higher education expenses like textbooks, transportation, dorm fees and meal plans.
Another non-certified BofA loan is called the Education Maximizer Loan, which also supplements federal loans and grants. Borrowers use the money for any education-related expenses that exceed federal awards. The loans carry generous borrowing limits of up to $40,000 a year. Payments can be deferred until after borrowers graduate from college.
Bank of America student loans are used by undergraduates and graduate students enrolled in diverse educational programs like medical school, law school, MBA tracks and a host of other disciplines. The advantage of private loans, is that they are allowed to exceed college expense, giving borrowers the ability to allocate loan funds as they see fit. This convenience carries a price; private loans do have higher interest rates.
Student loan consolidations from Bank of America provides a credit-saving option for students with more than one outstanding loan. The option allows borrowers to roll all their education loans into one single loan, which can be structured for repayment, with affordable terms. Repayment periods are extended by consolidating, but the importance of avaoiding default cannot be understated.
Bank of America Scholarships
Although student lending has been suspended, Bank of America is still active in educational philanthropy. The company puts forth two distinct scholarship programs for assisting undergraduate students.
Dependents of Bank of America employees enjoy access to the Joe Martin Scholarship Program. Students transitioning into vocational schools and traditional four-year universities are considered for the scholarships – dependants of deceased, retired and disabled employees are also eligible for Martin Scholarships.
Each award is valued at $2500, and students may renew for three additional years. Awards are disbursed based on each applicant’s evaluation in these personal categories:
- Financial Need
- Academic Achievement
- Leadership Potential
- Community Involvement
- Extra-curricular Participation
Qualified applicants are:
- 23 years old or younger
- Undergraduate degree candidates
- Seniors or recent high school graduates
- Enrolled at 2 or 4 year institutions of higher education
- Subject to satisfactory academic progress requirements to remain eligible
In addition to programs reserved for employees, Bank of American partners with diverse organizations, to provide scholarships. Most are administered by partnering entities, like The United Negro College Fund, Native American Scholarship Fund and National Hispanic Scholarship Fund. The efforts distribute over one-million dollars annually, to students enrolled in business, technology, and education degree programs. Additionally, Bank of America recently launched the Abilities Fund, which provides funding for college students with disabilities.
Category: Bank loan