Bank of America Student Loans 2026: What Borrowers Need to Know

What Are Bank of America Student Loans?

Until 2020, Bank of America issued private student loans and served as a lender for federal student loans through the Federal Family Education Loan (FFEL) Program. In January 2020, the bank announced it would stop accepting new student loan applications, citing a strategic shift toward other consumer lending products.

Existing borrowers retained their loans, but the bank sold or transferred the servicing. As of 2022, Firstmark Services handles all Bank of America student loan accounts, both private and FFEL loans. Borrowers no longer make payments to Bank of America or interact with its online portal for student loans.

Key facts for current borrowers:

• All new originations stopped as of January 2020
• Servicing transferred to Firstmark Services in 2022
• FFEL loans may still qualify for certain federal forgiveness programs
• Private loans are not eligible for income-driven repayment (IDR) or Public Service Loan Forgiveness (PSLF)

The distinction between federal and private loans matters enormously for repayment strategy, especially in 2026 as the on-ramp period ends and payments resume for all borrowers.

How to Repay Bank of America Student Loans in 2026

Repayment options differ sharply depending on whether you have a federal FFEL loan or a private loan. Here is how to approach each type:

Federal FFEL Loans (owned by Bank of America): These loans are eligible for some, but not all, federal repayment plans and forgiveness programs. FFEL loans are eligible for Extended Repayment (up to 25 years) and Graduated Repayment, but not SAVE or other new income-driven plans as of 2026. You can consolidate FFEL loans into a Direct Consolidation Loan to access IDR and PSLF. That step must be completed before October 2026 to count past payments under the IDR Account Adjustment.

Private Loans: Bank of America's private student loans are not eligible for any federal programs. Repayment options are limited to what the lender offers: standard fixed-term repayment, deferment in limited cases (death, disability, school enrollment), and forbearance at the lender's discretion. Interest continues to accrue during any forbearance period.

Step-by-step checklist for Bank of America borrowers:

1. Log in to your Firstmark Services account (firstmarkservices.com) to confirm your current loan type and balance.
2. If you have an FFEL loan, submit a Direct Consolidation Loan application at StudentAid.gov before the October 2026 IDR account adjustment deadline.
3. If you have a private loan, request a payoff quote and EXPLORE OUR GUIDE3+ refinancing lenders.
4. Enroll in autopay to get a 0.25% interest rate reduction with most servicers.
5. Check if your employer offers student loan repayment benefits, contributions up to $5,250 are tax-free through 2026.

Forgiveness Eligibility for Bank of America Student Loans

The answer depends entirely on whether the loan is a federal FFEL loan or a private loan. Private Bank of America student loans are not eligible for any federal forgiveness program. Federal FFEL loans may qualify, but only after consolidation into a Direct Loan.

Caveat: Borrowers with FFEL loans who consolidate before the October 2026 IDR adjustment cutoff may also receive credit toward forgiveness for past repayment periods. The adjustment applies to Direct Loans only, so consolidation is the necessary first step.

Private loan borrowers have no forgiveness path through the federal government. The only option is to pay down the balance or refinance to a lower rate. Some states offer limited assistance for private student loan borrowers in distress, but these are rare and income-restricted.

For private Bank of America loan borrowers, refinancing is the primary tool to lower your interest rate or monthly payment. Federal FFEL borrowers should evaluate whether refinancing with a private lender is worthwhile, doing so forfeits access to federal protections and forgiveness options.

Here are three well-regarded refinancing lenders for 2026, based on competitive rates and customer service reviews:

• SoFi: Offers fixed rates from 4.49% APR (with autopay) as of February 2026. No origination fees. Requires a credit score of 650+ and income documentation.
• Earnest: Customizable repayment terms (5–20 years) and the ability to skip one payment every 12 months. Rates from 4.99% APR fixed. Requires 660+ credit score.
• Splash Financial: Works with a network of lenders to find competitive rates, may be a better fit for borrowers with less-common loan profiles. Rates from 4.79% APR fixed.

When refinancing makes sense: You have a stable income, a credit score above 680, and you can lower your rate by at least 1.5 percentage points. If you are pursuing PSLF or IDR forgiveness, do not refinance federal loans, it permanently disqualifies you from those programs.

Expert Tips

• Check your credit report at AnnualCreditReport.com before applying, correct errors to improve your offered rate.
• Request personalized rate quotes from 3–4 lenders within a 14-day window to minimize the credit score impact.
• Look for lenders that offer unemployment protection, SoFi and Earnest both allow forbearance in defined hardship cases.
• Private loan co-signers may request a co-signer release after 36–48 months of on-time payments.
• Federal FFEL borrowers should consolidate to a Direct Loan before refinancing private student loans, do not consolidate federal and private loans together.

Mistakes to Avoid

• Refinancing federal loans without understanding the loss of PSLF, IDR, and deferment options, this is the most common and costly mistake.
• Ignoring the tax consequences of student loan forgiveness, canceled debt may be taxable income in some cases.
• Assuming Bank of America still holds your loan, many are now serviced by Firstmark and require a different login and contact approach.

Pros and Cons

Pros: Lower interest rates, single monthly payment, shorter loan terms, potential to remove a co-signer.

Cons: Loss of federal protections (for FFEL loans), credit score requirements, variable rates can rise, origination fees at some lenders.

Bottom Line

Bank of America student loans represent a legacy portfolio, no new borrowers, and limited options for existing ones. Private loan borrowers should seriously consider refinancing in 2026 while rates remain historically moderate. Federal FFEL borrowers should consolidate to a Direct Loan before the October 2026 deadline to preserve access to forgiveness and repayment flexibility. This article is informational and does not constitute financial or legal advice.