Abe Private Student Loans Review

Abe is a new private student loan lender launched in June 2024 by Monogram, with loans issued through DR Bank. Monogram has supported 1.5 million borrowers with student loan financing across thousands of schools across the U.S. In this review, we'll cover everything you need to know about Abe's student loans, including eligibility criteria, repayment options, and the benefits they offer.

Best for: Payment relief

Abe stands out for its student loan relief options for borrowers struggling with repayment. Abe helps its borrowers navigate the unexpected with six repayment protection programs that offer a runway of financial breathing room.

The In-School Default Protection program prevents default if you're unable to make interest or partial payments while enrolled. Additionally, Abe extends an extra year of in-school deferment, allowing you more time to complete your degree if needed.

All borrowers benefit from a six-month grace period after graduation before payments begin. However, Abe goes a step further by offering an additional six-month extension, giving you a total of 12 months to start repayment. Special deferment options are also available for those in medical internships or residencies, along with forbearance programs for those facing unique medical, family, or financial hardships.

Eligibility requirements

• Age: You must be at least 17 years old or the legal age of majority in your state.
• Credit check: Abe doesn't disclose specific minimum credit score or income requirements, but your credit will be checked during the application process.
• Enrollment: You must be enrolled in a degree- or certificate-granting program at an eligible school. Abe allows borrowing even if you're enrolled less than half-time, making it an option for students taking only a few credits.
• Citizenship: Applicants must be U.S. citizens, permanent residents, or eligible non-citizens. Eligible non-citizens and international students can apply with a U.S. cosigner.

How much can I borrow?

Abe student loans allow you to borrow between $1,000 and your school's certified cost of attendance, minus any financial aid you've already received, with a maximum of $99,999 per year. The lifetime borrowing limit is capped at $225,000. For residents of Iowa, the minimum loan amount is $1,001, while Massachusetts residents must borrow at least $6,001.

Check out: How much can I borrow in student loans?

Repayment options

Abe lets you choose between multiple loan terms of 5, 7, 10, 15 or 20 years to match your long-term repayment goals.

You can select from several repayment options to make managing your loan during or after school more feasible:

• Immediate repayment: Start making full payments as soon as the loan is disbursed. This option can save you money in the long run but may not be realistic for every student.
• Flat payments: Make low, flat payments of $25 per month while you're in school. This keeps your loan active without the burden of full payments.
• Interest-only payments: Pay only the accrued interest while enrolled. This helps you avoid a larger balance later on.
• Deferred payments: Postpone all payments until six months after graduation, with the option to extend this deferment for another six months if needed. Be aware, though, that deferred payments result in capitalized interest, increasing your overall loan balance.

Notable benefits

No fees

With Abe student loans, there are no fees to worry about. The lender doesn't charge application or origination fees, and you won't be penalized for making payments by debit, paying late, or requesting forbearance.

Rate discounts

Borrowers can earn a 0.25 percentage point rate discount by enrolling in automatic payments. Additionally, you can reduce your rate by an extra 0.05 percentage points (up to 0.25) every six months by consistently making on-time principal and interest payments. Altogether, you could benefit from a total rate discount of 0.50 percentage points over the life of the loan.

Borrower rewards

Abe offers a unique 2% graduation reward, reducing your principal loan balance by 2% when you provide proof of completing your degree or certificate program. This reward is a one-time benefit, even if you earn multiple degrees during the loan term.

Flexible repayment and relief programs

Abe supports borrowers with flexible loan terms and repayment options, including a rare grace period extension. The lender's extensive relief programs stand out, offering up to five years of in-school deferment and up to 12 months of medical or hardship forbearance-features that are not always common among private lenders.

Consider borrowing with Abe if:

• You have a past-due tuition balance. Abe student loans can help you finance past-due tuition balances for up to 18 months from the date of your enrollment or after graduation, easing the burden of unpaid tuition.
• You're attending school less than half-time: Unlike most private lenders, Abe allows you to borrow even if you're enrolled less than half-time, making it a viable option if you just need a few credits to complete your degree.
• You're pursuing a certificate program: Abe supports borrowers who are enrolled in certificate or trade programs, not just four-year degrees, making it an option for a wider range of educational paths.
• You expect to need repayment support: Abe's extensive relief programs and graduation reward make it a strong choice for borrowers who may anticipate challenges in repaying their loans after graduation.

How to apply

If you decide that Abe is the right financing solution for your upcoming academic year, you can submit a formal loan application online. Prepare to include your personal information, details about your income, school, expected graduation date, and desired loan amount. You'll also need to submit your cosigner's personal information if you're applying with one.

Upon submitting your application, a credit check will be conducted for you or your cosigner, which may temporarily lower your credit score. You'll then wait to receive your loan decision.

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FAQ

Does Abe refinance student loans?

No, Abe currently does not offer a student loan refinancing option. It provides new private education loans for students enrolled in undergraduate, graduate, or certificate programs, including those enrolled less than half-time.

Is Abe a reputable company?

Yes, Abe is a subsidiary of Monogram LLC, which has over 30 years of experience in student loan management. Monogram has originated more than $23 billion in student loans, and Abe's loans are made by DR Bank, a Member FDIC.

Is it hard to get approved for an Abe student loan?

Approval for an Abe student loan requires established credit. Applicants without a credit history or with weak credit are encouraged to apply with a creditworthy cosigner.

What credit score do you need for a student loan from Abe?

Abe doesn't publicly disclose a minimum credit score requirement. However, if you have limited credit history, applying with a cosigner who has good credit is recommended. According to Abe, a cosigner can boost your chances of approval by four times and help you secure a more competitive rate.

How long does approval for an Abe student loan take?

Abe allows prospective borrowers to check if they prequalify for a student loan online. You can see your rate in minutes before formally submitting an application.