Pave Student Loans Review: Student Loan Refinancing

Note: Pave stopped lending in June 2017. If you’re looking to refinance your student loans, look at our guide to the best places to refinance your student loans.

A student loan should be a sound investment in your future, not a necessary burden. Many online lenders see the need for a new type of student loan and attempt to reinvent the process. Pave is an exclusively online lender that seeks to revamp student lending to provide affordable funding to young people.

Pave offers personal loans up to $25,000 you can use for educational expenses such as college tuition, fees for trade programs or other educational pursuits. Its ability to deliver personalized options to its borrowers makes them a great lender to use because it has flexibility many lenders cannot offer. For instance, they offer flexible start dates for loan repayment and a unique underwriting process, which takes into account a wide variety of factors including your education and earning potential.

Remember, Pave is one of the companies you can compare loans at with Credible. See how Pave compares, and find the best rate and fees using Credible. It takes minutes, and College Investor readers can get a $200 bonus when they refinance with Credible.

A Closer Look at Pave’s Loans

Pave offers unsecured personal loans with interest rates beginning as low as 6.00% APR (as of December 2015); this makes them a much better option than some private lenders, who can offer you student loans that might come with a much higher interest rate. Pave also offers repayment terms of two or three years on its loans. While this will equate to higher monthly payments, you’ll also pay off your loan quicker and, with its lower interest rates, you’ll save significantly by doing so.

Fees Associated with Pave Student Loans

Pave does charge an origination fee on its loans that varies from one to six percent of the loan amount. While this might seem like a steep fee on the surface, the lower interest rates it offers will more than offset the original fee through the life of the loan.

How to Apply

Applying is simple through Pave’s website or our Student Loan Refinancing Tool. You can fill out the “Find My Rate” form and learn, within minutes, if you qualify for a loan. If you receive approval, you’ll complete the application and onboarding process, where you will submit documents such as paystubs electronically sign the loan documentation and complete the onboarding phone call.

From there, Pave will send your funds electronically to your bank account. To repay the loan, you can set up automatic payments or mail a paper check (if you elect to do this option there’s a $2 processing fee).

Pave’s Loan Qualifications

To be eligible for a Pave loan you must meet the follow requirements:

• You have to be at least 18 years of age and be a U.S. citizen.
• You should have a FICO score of at least 660. (Click here to check your credit score for free)
• You must have a way to repay the loan through a job or documentation of a job offer.
• In addition, Pave isn’t available in all states. You can check here to see if you live in a state that they service.

Benefits to Using Pave

Pave’s underwriting and onboarding process is excellent, because it provides you with the flexibility you need to receive funding for educational expenses. Adding to this is the fact you’ll have a helpful member of Pave to assist you every step of the way, making the lender an excellent choice to consider.

Drawbacks to Using Pave

The minimum credit score of 660 and residency restrictions means not everyone will have access to Pave’s services, especially since younger applicants may not have built much credit. Additionally, due to the shorter repayment terms, its loans might not be right for tight monthly budgets.

Final Word

Pave is a unique lender that tailors its loans to meet your needs through its easy application process, helpful onboarding and low interest rates assessed. While the shorter repayment terms are not beneficial for all budgets, it does encourage you to pay off the debt quicker, which saves you money in the long run.

Remember, make sure you compare your options with Credible. And take advantage of the $200 bonus that College Investor readers can receive.

We give Pave a 2 out of 5 stars, because their interest rates are higher, their loan limits are lower, and their origination fees are higher than other lenders. You can compare almost all student loan refinancing companies using our free Student Loan Refinancing Tool.