What is the Custom Choice student loan and who offers it?

The Custom Choice Loan® is a private undergraduate and graduate student loan made by DR Bank (Member FDIC) and administered by Monogram (formerly known as Cognition Financial). It is a current, active product available at customchoice.com. Key features: no fees, a 2% principal reduction upon graduation, and in-school payment flexibility. Like all private student loans, it lacks the federal protections that come with federal student aid.

The Custom Choice Loan® is a private student loan product for undergraduate and graduate borrowers enrolled at Title IV-eligible schools. As of late 2025, the loan is made by DR Bank (Member FDIC) and administered by Monogram, the company formerly known as Cognition Financial. The product is available at customchoice.com.

Who makes the Custom Choice loan now?

Cognition Financial — the company originally behind the Custom Choice Loan — rebranded as Monogram in 2025. The loan itself is originated by DR Bank, an FDIC-insured depository institution. Monogram handles the administration, servicing infrastructure, and the customchoice.com platform. This type of arrangement — a fintech or specialty company administering a loan product funded through a bank partner — is common in the private student lending market. The FDIC insurance covers deposits at DR Bank; it does not cover loan performance or borrower outcomes.

Key product features (verified at customchoice.com, May 2026)

No fees. No origination fee, no late fee, no prepayment penalty.
Graduation reward. Borrowers who request the benefit upon graduation receive a 2% reduction of their outstanding principal balance.
Auto-pay discount. 0.25% interest rate reduction for enrolling in automatic payments.
On-time payment discount. 0.05% rate reduction for every six consecutive months of on-time principal and interest payments, up to an additional 0.25%.
In-school payment flexibility. Borrowers can choose: interest-only payments, fixed $25/month payments, full payments during school, or full deferral until after graduation.
Repayment terms. 5, 7, 10, 15, or 20 years.
Credit requirement. Borrowers without a co-signer typically need a mid-600s credit score. Co-signers must have 625+ FICO. Approximately 80% of Custom Choice borrowers use a co-signer.
Availability. All 50 states. School must be a Title IV-eligible institution offering 2-year or 4-year degrees.

Private loan vs. federal loan: the trade-off that matters most

Before borrowing any private student loan — including Custom Choice — exhaust your federal student aid options first. Federal loans carry protections that private loans do not:

Income-driven repayment (IDR): Federal loans can be repaid under plans that cap your monthly payment at a percentage of your discretionary income. Custom Choice and other private loans do not offer IDR.
Public Service Loan Forgiveness (PSLF): Federal loans qualify for forgiveness after 10 years of qualifying public service employment. Private loans do not.
Federal deferment and forbearance: Federal loans have broad deferment rights for economic hardship, unemployment, and other qualifying circumstances. Private lenders offer their own hardship programs, which vary and are not guaranteed.
Discharge in certain circumstances: Federal loans may be discharged if your school closes or in cases of total and permanent disability. Private loan discharge policies are lender-specific.

The Department of Education's studentaid.gov explains the federal vs. private loan comparison in detail. Check your financial aid award letter — specifically the types of loans offered — before turning to a private loan to fill any gap.

Verified facts about the Custom Choice loan

The Custom Choice Loan® is made by DR Bank, Member FDIC, and administered by Monogram (formerly Cognition Financial). The product is active and available at customchoice.com. — Custom Choice
Custom Choice loan features include no fees, a 2% principal reduction upon graduation, a 0.25% auto-pay rate discount, and repayment terms of 5, 7, 10, 15, or 20 years. — Custom Choice
Federal student loans offer protections private loans do not — including income-driven repayment, Public Service Loan Forgiveness, and federal deferment and forbearance. Studentaid.gov explains each option. — Federal Student Aid
The CFPB's student loan resources provide guidance on choosing between federal and private loans and understanding your repayment options. — CFPB

Key takeaways

Custom Choice Loan® is a current, live private student loan made by DR Bank (FDIC-insured) and administered by Monogram (formerly Cognition Financial).
Key features: no fees, 2% graduation principal reduction, auto-pay and on-time payment rate discounts, flexible in-school payment options.
Co-signers are common — about 80% of borrowers use one. Without a co-signer, mid-600s credit score typically required.
Before borrowing: exhaust federal student aid first. Federal loans offer income-driven repayment, PSLF, and federal deferment — private loans do not.
ClearValue Lending is not a student loan lender or financial advisor. This is editorial content only.