Custom Choice Student Loan Snapshot
The Custom Choice Loan® is funded by Citizens. The Custom Choice Loan offers borrowers competitive rates, flexible repayment terms, and strong customer service. The loan is available for undergraduate and graduate students. It’s best if you want competitive interest rates, are seeking a flexible repayment term, and want strong borrower benefits.
Pros
Competitive interest rates and zero fees for qualified borrowers- Offers a variety of repayment options
- Offers a 2% principal reduction with proof of graduation
- Offers an autopay discount
- Offers a 6-month grace period with flexible extension options
- Strong customer experience
Cons
No repayment plan shorter than 7 years or longer than 15 years
Best Features of the Custom Choice Student Loan
Competitive interest rates and zero fees for qualified borrowers
When looking for a student loan, finding a low interest rate is typically a top priority. If you qualify for the Custom Choice Loan, you’ll have access to some of the best rates in the industry. The Custom Choice Loan’s variable and fixed interest rates are typically lower than competing student lenders. In addition, you won’t have to pay origination fees, application fees, prepayment penalties, late fees, or insufficient funds fees.
Offers a variety of repayment options
While still in school, the Custom Choice Loan offers four repayment options, with terms ranging from 7, 10, or 15 years. If possible, it’s beneficial to make in-school loan payments in order to reduce the amount of interest you pay over time.
Repayment Option
Terms
Pros
Cons
Immediate Repayment
Make full payments as soon as the loan is disbursed, while you’re still in school.
You will minimize the interest you pay, resulting in the greatest savings. Because you’re paying down both interest and principal while you’re still in school, you’ll already have made a good start on repaying your loan by the time you graduate.
For many students, it’s not realistic to make full monthly payments while still enrolled in college.
Interest-Only Repayment
Pay only interest while you’re in school.
Your monthly payments will be more manageable, and your loan balance won’t grow while you’re in school.
You won’t make any progress paying down your loan balance while you’re a student. But at least you won’t owe more than you borrowed when it’s time to start making full payments.
Flat Repayment
Pay $25 per month while you’re in school and during the grace period to reduce accrued interest.
You can keep your loan balance in check, and reduce the total amount repaid.
You’ll still owe more than you borrowed when you graduate, but your loan balance won’t grow as quickly.
Deferred Repayment
Don’t make any payments while you’re in school.
You won’t have to make payments while you’re in school.
You will likely pay the highest overall cost since unpaid interest will be added to your principal amount at the end of your grace period.
Offers a 2% principal reduction with proof of graduation
The Custom Choice Loan offers a unique 2% principal reduction for borrowers who are able to provide proof of graduation. The principal reduction is based on the total dollar amount of all disbursements made, excluding any amounts that were reduced, returned, or canceled. To receive the principal reduction, borrowers must request it with proof of graduation from a bachelor’s degree program or higher.
So, for example, if you borrowed a $30,000 loan and were eligible for the principal reduction, your balance would be lowered to $29,400. This is a unique borrower perk that competing lenders do not offer.
>> MORE: Compare best private student loans
Offers an autopay discount
On top of its generous principal reduction offer, the Custom Choice Loan provides borrowers with a 0.25% interest rate discount for opting into autopay. Autopay requires borrowers to agree to make scheduled monthly principal and interest payments by an automatic monthly deduction (ACH) from a savings or checking account. This interest rate discount is in addition to other discounts offered to Custom Choice borrowers.
Offers a 6-month grace period with flexible extension options
After you are no longer in school at least halftime, you have a grace period before you begin making full principal and interest monthly payments. The grace period is six months for Custom Choice undergraduate and graduate loans. The loan also provides borrowers with flexible extension options, allowing you to extend one month at a time for an additional 6 months.
>> MORE: What is a student loan grace period?
Strong customer experience
From loan application to loan disbursement and beyond, Monogram’s borrowing experience is done entirely online. The lender also offers excellent customer service that is available through email, chat, and phone. If you’re comfortable with an entirely virtual experience, Monogram’s seamless online borrowing process is a huge benefit.
Drawbacks of the Custom Choice Student Loan
No repayment plan shorter than 7 years or longer than 15 years
While the Custom Choice Loan offers 7-, 10-, and 15-year repayment terms, it could improve by offering repayment plans that are shorter and longer. Although the three repayment term options provide a decent selection for borrowers, it would be helpful to offer 5- and 20-year repayment options for borrowers who are looking to either pay off their loan faster or over a longer timeframe.
>> MORE: Compare your personalized student loan rates in just 2 minutes
Custom Choice Eligibility Criteria, Repayment Options & More
Fees and Terms
Loan Terms
7, 10, or 15 years
Loan Amounts
$1,000 up to 100% of the school-certified cost of attendance minus other aid; cannot exceed $99,999
Application or Origination Fee
No.
Prepayment Penalty
No.
Late Fees
No.
Eligibility Requirements (Financial)
Minimum Credit Score
660 without a cosigner; On a cosigned loan, 625 for the cosigner and 600 (or no score) for the student borrower
Minimum Income
Borrowers must demonstrate at least $1 income.
Typical Credit Score of Approved Borrowers or Cosigners
Did not disclose.
Typical Income of Approved Borrower
Did not disclose.
Typical Income of Approved Cosigner
Did not disclose.
Maximum Debt-to-Income Ratio
Less than or equal to 85%.
Ability to qualify if you’ve filed for bankruptcy
Yes, but not if you filed in the last 10 years.
Eligibility Requirements (Personal)
Citizenship
Must be a U.S. citizen or permanent resident.
Location
Available to borrowers in all 50 states.
Must be enrolled half-time or more
No. The Custom Choice Loan is available to students enrolled less than half time/part time during a given loan period. Only the Immediate Repayment option is offered for students enrolled less than half time
Percentage of borrowers who have a cosigner
Over 80%.
Repayment Options
In-school Repayment Options
Immediate Repayment: Make full payments as soon as the loan is disbursed, while you’re in school.
Interest-only repayment: Only pay interest while you’re in school.
Flat repayment: Pay $25 a month during school and the grace period. This repayment option is only available for loans with a balance of $5,000 or more.
Deferred repayment: Wait to make payments until you’re out of school.
Grace Period
6 months with an option to extend month-to-month for an additional 6 months.
Grace Period Extension
Yes, up to 6 additional months.
In-school Deferment
Yes, up to 48 months.
Military Deferment
Yes, up to 48 months if the borrower and cosigner cannot repay the loan while the borrower or cosigner is on active duty.
Disability Deferment
Did not disclose.
Forbearance
Up to 12 months available, in 2-month increments.
Cosigner Release
Yes, after 36 months of on-time payments.
Death or Disability Discharge
Yes, if the borrower dies or suffers a permanent disability.
Loan discharge if cosigner dies or becomes disabled
No.
Autopay
Allows for surplus payments via autopay: Yes.
Allows for biweekly payments via autopay: Yes.
Customer Service
Loan Servicer
American Education Services.
In-house Customer Service Team
Yes.
Process for Escalating Concerns
Yes.
Borrowers get assigned a personal customer service representative
No.
Average time from application to approval
Prequalifying takes less than a minute
The latest rates from Sparrow’s partners
If you want to skip pre-qualification and apply directly with a lender, you can do so by clicking Apply below.
Custom Choice FAQs
Is Custom Choice a legitimate lender?
The Custom Choice Loan is funded by Citizens. Citizens is a legitimate lender that has been around for over 190 years. The company provides student loans to undergraduate and graduate students through the Custom Choice Loan.
Is Custom Choice available in all 50 states?
Yes, as of 6/1/2022, the Custom Choice Loan is available in all 50 states.
How long does it take to get a Custom Choice Loan?
Submitting an application for a Custom Choice Loan takes a few minutes. Once you’ve submitted your loan application, Monogram will instantaneously return a decision about your eligibility. If you qualify, you will receive the rate and terms of your loan.
It may take some time for your school to receive the proceeds of your loan. Monogram estimates that the entire process from the school certification request to receiving the funds takes around 19 days.
What happens if I don’t qualify for the Custom Choice Loan?
If you don’t qualify for the Custom Choice Loan, Monogram will inform you why. Depending on the reason, you may consider applying with a qualified cosigner or try with a different lender. To check your rates across multiple lenders at once, try using Sparrow’s free search engine. In just two minutes, you can receive real, personalized offers from over 15 different lenders all ready to support you.
Is the Custom Choice Loan federal or private?
The Custom Choice Loan is a private loan. Before you take on a private loan, we recommend that you exhaust your federal loan options.
Does applying for the Custom Choice Student Loan hurt my credit score?
In order to estimate what rate you qualify for, Monogram conducts a “soft credit check” — this does not affect your credit score. If you choose to accept the Custom Choice Loan, the company will conduct a hard credit check to verify your information. A hard credit check may temporarily impact your credit score.
>> MORE: Compare real student loan rates without affecting your credit score