Abe Review: Private Student Loans

Abe student loans are the latest private student loan offerings through a partnership between Monogram and DR Bank. Abe offers student loan terms in five increments ranging from 5 to 20 years.

Abe student loans serve undergraduate and graduate students, including those seeking a graduate certificate. Upon completing school, borrowers receive a 2% principal reduction with proof of graduation.

Abe student loans may be a good fit for borrowers with strong credit and low income.

Abe student loans at a glance

• No late payment fees.

• Flexible post-graduation repayment options like interest-only repayments and deferment.

• Borrowers can see their interest rate offer without a hard credit pull.

• Interest rate reduction for making six consecutive monthly payments of principal and interest on time.

How Abe could improve

• Provide a dedicated banker, advisor or representative to assist you.

Abe private student loan details

Interest rates, fees and terms

• Soft credit check to qualify and see what rate you’ll get: Yes.

• Loan terms: 5, 7, 10, 15 or 20 years.

• Loan amounts: $1,000 up to school certified amount.

• Application or origination fee: None.

• Prepayment penalty: No.

• Late fees: None.

Compare Abe’s range of interest rates with other private student lenders. Your actual rate will depend on factors including your — or your co-signer’s — credit history and financial situation. To see what rate Abe will offer you, apply on its website.

Requirements

Financial

• Minimum credit score: 660 without a co-signer; if the co-signer's credit score is 625-699, borrowers must have a credit score of greater than or equal to 600, or have no score; if the co-signer's credit score is greater than or equal to 700, there is no credit score minimum for the borrower.

• Minimum income: monthly income requirement of $1 to $3,000.

• Typical credit score of approved borrowers or co-signers: Not disclosed.

• Typical income of approved borrowers: based on historical experiences, the median income is expected to be approximately $80,000.

• Maximum debt-to-income ratio: There is no DTI requirement on the program.

• Can qualify if you’ve filed for bankruptcy: After 10 years.

Other

• Citizenship: Must be a U.S. citizen, permanent resident or an international student with a U.S. co-signer.

• DACA borrowers: Eligible with a co-signer who is a U.S. citizen or permanent resident alien.

• Location: Not available in NE or WV.

• Must be enrolled half-time or more: No.

• Loans can be used for past due tuition: Yes, for balances up to 18 months past graduation date or academic period end date.

• Types of schools served: Borrowers must attend Title IV-certified school that offers bachelor’s degrees or higher. Graduate certificate programs are applicable. Students attending community colleges that are on the eligible school list may apply.

• Percentage of borrowers who have a co-signer: 50%

Repayment options

In-school repayment options

• Immediate repayment: Make full payments within 60 days of loan disbursement, while you’re still in school.

• Deferred repayment: Don’t make any payments while you’re in school, but interest accrues.

• Fixed repayment: Pay $25 every month while enrolled in school and during the grace period.

• Interest-only repayment: Pay interest every month you’re in school and during the grace period.

Post-school repayment options

• Grace period: 6 months.

• Income-based repayment option: No.

• In-school deferment: Yes, borrowers can request to defer payments when returning to school or going to graduate school for up to 48 months. This option extends the repayment term.

• Military deferment: Yes, up to a maximum of 48 months while Borrower or Cosigner is in an active-duty status.

• Alternative repayment option: For a period of up to 12 months, the interest rate on the Loan is reduced to 2% and the monthly payment for the first 6 months is reduced to 50% of the regularly monthly payment and then increased to 75% of the regular monthly payment for the final 6 months.

• Forbearance: Borrowers are eligible for 12 months of forbearance, in three-month increments. Once you use all 12-months of forbearance, you can earn 3-month increments of forbearance, for up to a total of another 12 months, after making 12 consecutive on-time payments between each additional 3-month increment.

• Co-signer release available: Yes, after 12 months of on-time principal and interest payments.

• Death or disability discharge available: Yes.

• Loan discharge if co-signer dies or becomes disabled: No.

Repayment preferences

• Allows greater-than-minimum payments via autopay: Yes.

• Allows biweekly payments via autopay: Yes.

Customer service

• Loan servicer: Pennsylvania Higher Education Assistance Agency/American Education Services.

• In-house customer service team: Yes.

• Process for escalating concerns: Yes, provides a team with legal, compliance, loan operations and client services personnel that review and respond to complaints daily, as needed.

• Borrowers get assigned a dedicated banker, advisor or representative: No.

• Average time from application to approval: a pre-qualification decision is rendered in minutes.

Extras

• 2% principal reduction with proof of graduation.

• 0.05% interest rate reduction for every six consecutive months of on-time payments, with a max interest rate reduction of 0.25%.

Before applying for an Abe student loan

Before taking out an Abe loan or any other private student loan, exhaust your federal loan options first. Submit the Free Application for Federal Student Aid, known as the FAFSA, to apply.

Compare your private student loan options to make sure you’re getting the best rate you qualify for. In addition to interest rates, look at lenders’ repayment alternatives and the flexibility they offer to borrowers who struggle to make payments.

If you aren’t eligible for an Abe student loan

If Abe denies your student loan application, the lender will let you know why. Depending on the reason, you may want to consider other lenders or, if you haven’t already, try applying with a co-signer.

If you don’t have access to a co-signer or still aren’t eligible with one, consider lenders that don’t require co-signers or specialize in bad or no credit student loans.

Student loan ratings methodology

Our survey of more than 26 banks, credit unions and online lenders offering student loans and student loan refinancing includes the top 10 lenders by market share and top 10 lenders by online search volume, as well as lenders that serve specialty or nontraditional markets.

We consider 40 features and data points for each financial institution. Depending on the category, these include the availability of biweekly payments through autopay, minimum credit score and income requirement disclosures, availability to borrowers in all states, extended grace periods and in-house customer service.