Custom Choice Student Loan Review 2025: Pros, Cons, and Alternatives

Business Insider's personal finance team compared Custom Choice Student Loans to the best private student loans and found it to be an industry leader thanks to low rates and no fees.

The lender will also deduct 2% of your loan balance after you graduate and offers flexible repayment terms, cosigner release options, and temporary forbearance for financial hardship.

Here's what to know about Custom Choice student loans and who may be eligible for them.

Custom Choice Undergraduate Student Loans

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On Custom Choice's website

Insider’s Rating

4/5

Perks

0.25% discount on regular rates with auto pay

Regular Annual Percentage Rate (APR)

4.45% - 14.08% variable and 4.24% - 14.02% fixed

Fees

N/A

Recommended Credit

Undisclosed

Loan Amount Range

$1,000 - $99,999

Pros

• No origination fees, prepayment penalties, or late fees
• Competitive APR
• Get your rates within a few minutes
• Low loan minimum
• Graduation discount available

Cons

• Credit check
• May need a cosigner

Insider’s Take

Custom Choice has competitively low rates compared to similar student loan lenders. The lender also will knock off 2% of your loan balance after you graduate.

Product Details

• 2% principal reduction upon graduation
• 7, 10, or 15-year repayment terms available
• Customer service available by phone, email, or standard mail
• Loan amounts available: $1,000 loan minimum, up to $180,000 lifetime loan limit
• Repayment options available:
• Deferred: No payments for up to six months after leaving school
• Interest only: Only make payments on the loan's interest while in school and during six month grace period
• Flat payments: Pay $25 per month while in school and during grace period
• Immediate repayment: Start making full payments while still in school
• Loans are made by Citizens Bank, Member FDIC

Show Pros, Cons, and More

Custom Choice Student Loans Overview

origination fees, no prepayment fees, or late fees. You can take out a loan with a term of either seven, 10, or 15 years.

Custom Choice Repayment Options and Flexibility

Available Repayment Plans

Custom Choice offers several options to repay your loans: deferred, flat, interest-only, and immediate payments. The best repayment plan for you depends on your situation.

Deferred Repayment

• Make no payments while in school or during a six-month grace period
• Unpaid interest accrues
• Interest is capitalized at the end of grace period
• Highest total cost

Flat Repayment

• Pay $25 per month while in school and during a six-month grace period
• Unpaid interest accrues
• Interest is capitalized at the end of the grace period
• Low in-school payments

Interest-only Repayment

• Pay the loan's interest monthly while in school and during a six-month grace period
• Higher in-school payments

Immediate Repayment

• Make payments on the loan's principal and interest right away
• Highest in-school payments
• Lowest total cost

Deferment and Forbearance Options

Deferred and flat payments will cost more than interest-only or immediate payments because interest will accrue while you're in school and during your grace period. best student loan refinance companies and best private student loans using the tool below.

Alternatives to Custom Choice Loans

Custom Choice Student Loans vs. Earnest Student Loans

Read more about how we rate student loans >>

Custom Choice Student Loan FAQs

Ryan Wangman

Loans Reporter

Ryan Wangman reports on personal loans, student loans, student loan refinancing, debt consolidation, auto loans, RV loans, and boat loans. In his past experience writing about personal finance, he has written about credit scores, financial literacy, and homeownership, and obtained his CEPF. He graduated from Northwestern University and has previously written for The Boston Globe. 

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Layla Melendez

Personal Finance Editing Fellow

Layla Melendez is a personal finance editing fellow based in New York City, specializing in optimizing content to help readers navigate financial decisions with ease and confidence. With over a year of experience in student journalism, she has developed expertise in copyediting, content creation, and digital media management, including working with CMS platforms to organize, upload, and manage digital archives. She joined the team at Business Insider in January 2025, where she works on enhancing the accessibility and visibility of personal finance content for a global audience.ExperienceLayla is passionate about making financial literacy approachable and practical. In her role, she focuses on optimizing personal finance articles, with a focus on student loans, personal loans, and mortgages.Before joining Business Insider, Layla gained experience in communication, journalism, and media through a variety of roles:

• At Relentless Awareness, she developed press materials and advocacy campaigns, including efforts that contributed to a $50 million funding boost for upstate NY cities.
• As a World News Intern for GBH’s The World, she edited and published digital stories, designed social media posts, and contributed to newsletter production.
• During her time with the NYC Comptroller’s Office, she managed social media accounts, created engaging IG Reels, and captured event photography featured in outlets like Politico and City & State NY.

ExpertiseLayla’s growing expertise includes:

• SEO strategy and content optimization
• Financial literacy education for beginners
• Digital storytelling, copywriting, and social media management
• Multimedia content creation using tools like Canva, Adobe Creative Suite, and WordPress

EducationLayla holds a degree in Communication and Journalism from the University at Albany, SUNY, where she has been recognized for academic excellence with awards such as the Spellman Academic Achievement Award and the Summa Cum Laude distinction.When she’s not working, Layla enjoys travel, listening to music, reading, and seeking out new experiences across the city.

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