Custom Choice Loans Review: A Private Loan With a Generous Graduation Reward

What you need to know:

• Custom Choice has competitive interest rates and flexible repayment terms for undergraduate and graduate students.
• Upperclass students who are on track for graduation can take advantage of Custom Choice’s 2% Grad Reward.
• Custom Choice offers more ways to lower your interest rate with an autopay discount of .25%

Custom Choice Loans, powered by Cognition Financial, offers borrowers competitive loan products that can be tailored to fit their needs while in school and after graduation.

Cognition Financial was founded in 1991 with “the goal of helping students reach their educational goals through access to funding”. Since then, it facilitated more than $23 billion in private student loans and helped more than 1 million families pay for education costs.

It previously partnered with SunTrust Bank to provide private student loans, but that lender has since halted its student loan program.

As of July 2020, Cognition Financial partners with Citizens

to serve as the funding source for its Custom Choice student loan program.

Read on for our Custom Choice Loan review which includes a breakdown of its rates, terms, and application process.

Custom Choice Loans review

Custom Loans are available to undergraduate and graduate students enrolled at least half-time at an eligible school.

Here’s a brief overview of what to expect with Custom Choice Loans.

Custom Choice student loan products
Fixed APR	3.20 – 10.76%
Variable APR	1.60 – 10.21%
Terms	7, 10 or 15 years
Loan amount	$1,000 up to 100% of cost of attendance ($99,999 annual cap and $180,000 cumulative cap)
Cosigner option	Yes

Pros of using Custom Choice Loans

Custom Choice Loans offers some unique borrower benefits. These perks include:

• All loans include a 2% interest rate reduction with proof of graduation.
• Autopay interest rate discount of 0.25% available.
• You can check your rate within minutes with a soft credit pull.
• No fees for borrower or cosigner, including no late or prepayment penalties.
• Cosigner release available after 36 on-time payments.
• In-school repayment options: deferred until six months after graduation, $25 fixed monthly payment, interest-only payments or make immediate payments.

Disadvantages of Custom Choice Loan program

The Custom Choice Loan program is now available to residents in all 50 states. But your school must be on its approved list to qualify for a loan.

Most lenders require you to attend a Title IV accredited college to be eligible for lending. But the Custom Choice Loan program uses an approved institution list that’s based on its on-going relationships with each individual school.

If your school doesn’t appear on the approved list during the application stage, you can request that your financial aid office reach out to the Custom Choice Loan program to build a relationship.

However, according to a Custom Choice representative, it could take up to a year to see any progress. So, you’ll likely need to look at other private student loan lenders to help finance your immediate education needs.

Custom Loan eligibility requirements

Custom Choice encourages borrowers to add a cosigner to their application to increase the likelihood of approval. The website states, “adding a parent or another adult with good financial standing makes approval 4X more likely” and can help secure a lower rate.

To be eligible for a Custom Loan, the applicant must:

• Be a U.S. citizen or permanent resident
• Be an undergraduate or graduate student enrolled at least half-time at an eligible school.
• Be of legal age, depending on their state of residence.
• Provide proof of income, and have 18 months of good credit history or have a creditworthy cosigner with these financial credentials.

A 17-year-old student may apply with a creditworthy cosigner. Otherwise, the borrower must be 18 years old, with a few exceptions.

Residents of Nebraska (wards of state only) and Alabama must be 19 years old. And residents of Puerto Rico must be 21 years old to apply.

Application process for Custom Choice Loans

The Custom Choice Loan application is an easy all-online application process.

To complete your application, you’ll need to provide your personal information (e.g. social security number, date of birth and address) and school information.

You’ll enter detailed information, including the formal name of your school and major. Be prepared to input your academic period, expected graduation date and requested loan amount.

If you’re applying on your own, you’re required to provide income information (e.g. source and amount). Otherwise, only the cosigner needs to show proof of income, along with their personal information details.

Should you take out a Custom Choice Loan?

Private student loans should only be used to fill any financial gaps that are left after exhausting grants, scholarships and other financial aid opportunities.

If you still need private student loans, we recommend shopping around with at least three private student loan lenders. Start by reviewing the top private student loan lenders. And check your rates with Custom Choice since it won’t affect your credit.

Custom Choice Loans already offers competitive rates. But you might get a better deal if you add a cosigner and take advantage of the lender’s multiple interest rate discount programs.

This is especially true for upperclassmen that feel confident in their graduation date since they can earn a full 2% reduction — on top of any other autopay or promotional discounts.