All loan programs offered by StudyAbroadLoans.com (Study Abroad Loans, Foreign Enrolled Loans and International Student Loans) share the following characteristics and requirements.
Loan Index
A loan index is how banks determine interest rates. The loan index used for all of our loan programs is the 3-month LIBOR Index. LIBOR stands for London Interbank Offered Rate, and is published by the British Banker's Association in the "Money Rates" section of The Wall Street Journal on the first business day of each month.
The interest rates on loans from StudyAbroadLoans.com are variable, and are based on the 3-month LIBOR plus the margin. The margin is determined by the terms of the loan, and is generally based on the credit history of the borrower or the co-borrower. The margin for our loans range from 3.75% to 6%.
Origination Fee
Our loans carry origination fees of as low as 0% up to 6% depending on the credit of the borrower or co-borrower. The origination fee will be added to and financed with the requested loan amount at disbursement.
Finance Charge
The finance charge on a loan is the cost of the loan over and above the principal, or original amount borrowed. The finance charge depends on the interest rate, the origination fee, the terms of the loan, and the timing of all payments.
APR stands for Annual Percentage Rate, and is a measure of what a loan will cost. It takes into account the rate, fees, terms of the loan, and timing of all payments.
Repayment
You have three different repayment options – immediate repayment, interest-only repayment, and deferred repayment.
• Immediate Repayment: Make both principal and interest payments beginning one month after receiving your loan. This option has the lowest interest rate.
• Interest-Only Repayment: Make only monthly interest payments while in school. Six months after you graduate, begin making monthly principal and interest payments. The interest rate for this option may be higher than the Traditional repayment option.
• Deferred Repayment: Make no payments while in school. The interest is accrued and added quarterly to the principal balance. Six months after you graduate, begin making both principal and interest payments monthly. This option may have a higher interest rate than the immediate and interest only repayment options.
Term Length
The repayment term for all loans from StudyAbroadLoans.com is fifteen years for undergraduate, graduate, law, and business school students, and twenty years for medical and dental students. The minimum repayment amount is $50 per month. So if you have a very small loan, your repayment term may be shortened because you still must pay $50 per month.
Deferral & Forbearance
During repayment, upon meeting certain conditions, you may be able to make reduced payments or no payments for a period of time. This can be described as a deferral or forbearance depending on the circumstances. Interest will continue to accrue during the deferment period and is added to the loan balance when payments resume. You may be eligible for:
- In-school deferment should you return to school
- Internship and residency deferments
- Unemployment deferment
- Economic hardship deferment
- Military deferment
- Administrative forbearances
Disbursement
All loans from StudyAbroadLoans.com are disbursed directly to you. This gives you flexibility to cover a range of direct and indirect costs, such as tuition, books, transportation, and housing. If you prefer, the funds can be disbursed directly to your school.
Benefits
Once you have received a loan, you can get .25% off for electronic payments (Automated Clearing House, or ACH) OR .25% off for 48 on-time consecutive payments.
