Study Abroad Loans for US Citizens

Loan Program Information

Our private student loan interest rate is calculated based on the Prime rate, plus a margin for borrower and co-signer credit. The prime rate is a "reference or base rate" (currently 3.25%) that banks and lending institutions use.

You and your cosigner must pass a credit check, and your interest rate is determined by your credit worthiness. Because the interest rate is variable, it can fluctuate as Prime does every 3 months. Interest begins accruing when the loan is disbursed.

* Variable interest rates from Prime (currently 3.25%) minus 0.50% to Prime plus 4.75%, based on credit evaluation

Borrowers can receive a 0.25% repayment interest rate credit when payments are set up for automatic debit from a checking or bank account. This can translate into significant savings over the course of repayment.

Some private student loans are not based on the Prime index - instead they utilize the LIBOR index. LIBOR is an interest rate index used to determine the interest rate at which banks borrow funds from each other in the London Interbank market. It stands for the London Interbank Offered Rate.

Interest Rate and Repayment

There are three different repayment options available including deferment, repayment of interest only or immediate interest and principle repayment.

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.