Certified Private Loan Rates And Repayment
Private Loan Benefits:
- Borrow up to the true cost of your education
- Fast eSignature process
Certified Private Loan Interest Rates
Private certified student loan interest rates are calculated based on a published index such as the Prime Rate or LIBOR (London Inter Bank Offering Rate), plus a margin for borrower and cosigner credit.
Prime and LIBOR are "reference or base rates" that banks use to set the price or interest rate on many of their commercial loans and some of their consumer loan products.
- Variable interest rates from Prime or LIBOR plus or minus a margin based on credit
- 0.25% repayment interest rate credit when payments are set up for automatic debit from a bank account
The primary borrower and the cosigner must pass a credit check, and the additional margin added to the base rate is by your credit worthiness. The interest rate is variable and can fluctuate as Prime does every 3 months. Interest begins accruing when the loan is disbursed to the school.
Certified Private Loan Repayment Terms
The school certified private student loan has a repayment term of 15-20 years, and does not begin until 6 months after graduation or enrollment in school is less than half-time.
You have three options including deferment, repayment of interest only or interest and principle payment.
Full Deferral: No principal or interest payments due while enrolled in school (up to four consecutive years). Payment of principal and interest will begin 6 months after graduation or if no longer enrolled at least half time. Interest will continue to accrue during the deferment period and will be capitalized (added to the loan balance) at the time of repayment.
Interest Only: Pay only accrued interest while enrolled in school (up to four consecutive years). Payment of principal and interest will begin either 45 days after graduation or withdrawal from school.
Immediate Repayment: Payment of principal and interest will begin after loan is fully disbursed.