Private Education Loan Questions
Why can't I borrow more than the cost of tuition?
Our private student loan allows you to pay for education related expenses up to 100% of the Cost of Attendance minus any other aid you are receiving, as determined by your school.
What proof of enrollment do I need to provide?
You do not need to show proof of enrollment. Your school verifies your enrollment when we contact them regarding your loan application.
What are the different repayment options?
You have three options including deferment or repayment of interest only or interest and principle.
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). Principal and interest payments will begin 6 months after graduation or withdrawal.
Immediate Repayment: Payment of principal and interest will begin after the loan is fully disbursed.
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Are the funds from the loan sent directly to me?
No, a check will be sent directly to your school. If you have questions about what you can use the funds for, you should check with the financial aid department at your college.
How soon will I receive my funds?
Once you receive conditional approval, you will complete a promissory note and be required to submit documentation to verify the information on your application. If you return the requested documents quickly, your school will receive the funds soon afterwards. You can check with your school for specific disbursement dates for each semester.
What is my interest rate?
The interest rate may vary and is indexed to the Prime Rate plus or minus a margin for credit, which is determined after you submit your loan application.
Can I defer my payments while I'm in school?
Yes, you can defer your payments for up to 60 months as an undergrad student. Graduate students can defer their loans as long as they maintain a half time status.
How is the interest rate calculated for the private education loan?
The interest rate may vary and is indexed to the Prime Rate plus or minus a margin for credit (determined by you and your cosigner's credit worthiness).
Are there fees associated with the private education loan?
A loan fee may be added to your principal balance. Adding a creditworthy cosigner can help to reduce or eliminate this fee.
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How much can I borrow with the private education loan?
The loan offers an annual maximum of 100% of the Cost of Attendance minus any other aid you receive. The annual Cost of Attendance is determined by your college.
What expenses can the private education loan cover?
The private student loan can be used to cover education-related expenses including tuition, fees, books, living expenses, a new computer, etc.
Do I have to be enrolled at least half-time to receive a private education loan?
Yes. Borrowers must be enrolled at least half-time in an eligible and participating school in order to receive a private student loan.
Does your private education loan offer any discounts?
Yes! You will receive a 0.25% interest rate deduction for setting up automatic payments from a bank account during repayment.
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Is the interest tax-deductible?
Interest on student loans may be tax deductible. Please consult your tax advisor or visit irs.gov for more information.
How long are repayment terms for the private education loan?
The standard repayment term is typically 15-20 years.
What are the benefits of the private education loan?
- Principal and interest payments can be deferred while you are in school. Although payments are not required during this period, you can make payments to reduce the total amount on interest that you pay on your loan.
- You are not required to make payments while you are enrolled at least half-time in school.
- You will receive a 0.25% interest rate deduction for setting up automatic payments from a bank account during repayment.
