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Private Student Loans

Private student loan volume is growing much more rapidly than federal student loan volume (e.g., 25% per year versus 8% per year). If current trends continue, annual private education loan volume will surpass federal student loan volume by around 2025. Accordingly, it is important that students have tools they can use to compare different private student loans. (Private student loan volume dropped in half in 2008-09, according to the College Board's Trends in Student Aid 2009. The Ensuring Continued Access to Student Loans Act of 2008 increased annual and aggregate loan limits for the federal Stafford loan starting July 1, 2008. This was the first increase in the aggregate loan limits since 1992. The introduction of the Grad PLUS loan on July 1, 2006 and the increases in the annual but not aggregate limits had only a modest impact on the growth of private student loan volume. Whenever the federal government increases loan limits or expands the availability of federal student loans, it shifts borrowing from private loans to federal. The subprime mortgage credit crisis of 2007-2010 also limited lender access to the capital needed to make new loans, reining in growth of the private student loan marketplace. The proposed expansion of the Perkins Loan program from $1.5 billion a year to $6.0 billion a year would likely shift $4.5 billion in borrowing from private student loans to federal. But so long as federal loan limits do not increase every year, private student loan volume will continue to grow at double-digit rates.)

This page provides a basic comparison chart that highlights the key characteristics of the major private education loans. There is a separate list of private consolidation loans that can be used to consolidate private education loans.

For other sites that compare student loans, see FinAid's list of Student Loan Comparison Sites.

Best Private Student Loans

As a general rule, students should only consider obtaining a private education loan if they have maxed out the Federal Stafford Loan. They should also file the Free Application for Federal Student Aid (FAFSA), which may qualify them for grants, work-study and other forms of student aid. Undergraduate students should also compare costs with the Federal PLUS Loan, as the PLUS loan is usually much less expensive and has better repayment terms.

The fees charged by some lenders can significantly increase the cost of the loan. A loan with a relatively low interest rate but high fees can ultimately cost more than a loan with a somewhat higher interest rate and no fees. (The lenders that do not charge fees often roll the difference into the interest rate.) A good rule of thumb is that 3% to 4% in fees is about the same as a 1% higher interest rate.

Be wary of comparing loans with different repayment terms according to APR, as a longer loan term reduces the APR despite increasing the total amount of interest paid. FinAid's Loan Analyzer Calculator may be used to generate an apples-to-apples comparison of different loan programs.

The best private student loans will have interest rates of LIBOR + 2.0% or PRIME - 0.50% with no fees. Such loans will be competitive with the Federal PLUS Loan. Unfortunately, these rates often will be available only to borrowers with great credit who also have a creditworthy cosigner. It is unclear how many borrowers qualify for the best rates, although the top credit tier typically encompasses about 20% of borrowers.

Generally, borrowers should prefer loans that are pegged to the LIBOR index over loans that are pegged to the Prime Lending Rate, all else being equal, as the spread between the Prime Lending Rate and LIBOR has been increasing over time. Over the long term a loan with interest rates based on LIBOR will be less expensive than a loan based on the Prime Lending Rate. About half of lenders peg their private student loans to the LIBOR index and about 2/5 to the Prime lending rate.

Some lenders use the LIBOR rate because it reflects their cost of capital. Other lenders use the Prime Lending Rate because PRIME + 0.0% sounds better to consumers than LIBOR + 2.80% even when the rates are the same.

It is not uncommon for lenders to advertise a lower rate for the in-school and grace period, with a higher rate in effect when the loan enters repayment.

Federal student loans are not available for expenses incurred by law, medical and dental students after they graduate, such as expenses associated with study for the bar or finding a residency. There are two types of private student loans for these expenses:

  • A Bar Study Loan helps finance bar exam costs such as bar review course fees, bar exam fees, as well as living expenses while you are studying for the bar.
  • A Residency and Relocation Loan helps medical and dental students with the expenses associated with finding a residency, including interview travel expenses and relocation costs, as well as board exam expenses.

Private Student Loan Comparison Chart

The following table provides information about the annual and cumulative loan limits, interest rates, fees, and loan term for the most popular private student loan programs. Often the interest rates, fees and loan limits depend on the credit history of the borrower and co-signer, if any, and on loan options chosen by the borrower such as in-school deferment and repayment schedule. Loan term often depends on the total amount of debt.

Most lenders that require school certification (approval) will cap the annual loan amount at cost of education less aid received (COA-Aid). They may also have an annual dollar limit as well.

Lenders rarely give complete details of the terms of the private student loan until after the student submits an application, in part because this helps prevent comparisons based on cost. For example, many lenders will only advertise the lowest interest rate they charge (for good credit borrowers). Borrowers with bad credit can expect interest rates that are as much as 6% higher, loan fees that are as much as 9% higher, and loan limits that are two-thirds lower than the advertised figures.

The information presented in this table is based on lender literature and a survey of rates charged to actual students. Actual rates and fees may be higher. If only one rate is listed, it is the best rate offered by the lender, and actual rates for borrowers with inferior credit scores will be much higher. If only two rates are listed, they are the best and worst rates offered by the lender (min/max).

The lenders are listed in alphabetical order. No significance should be inferred from the order in which the lenders are listed.

Lender Loan Limits Rates (Min/Avg/Max) Fees Term
Charter One
0.50% interest rate reduction for auto-pay from a Charter One Bank account. Cosigner release after initial 36 consecutive on-time payments. Rates effective 6/8/10. Rates and other product features are subject to change at any time.
TruFit Student Loan (School Certified) COA-Aid
$120,000 cumulative (includes federal and private)
1-month LIBOR + 3.00%
1-month LIBOR + 11.25%
0.0% 15 years
Chase Student Loans
0.25% interest rate reduction for auto-debit. Cosigner release available after 36 consecutive on-time payments of principal and interest any time after repayment begins. Rates effective as of 7/1/2010. Rates and other product features are subject to change.
Chase Select Undergraduate Loan COA-Aid
$120,000 cumulative
3M LIBOR + 3.60%
3M LIBOR + 9.25%
None Up to 25 years
Chase Select Graduate Loan COA-Aid
$180,000 cumulative
3M LIBOR + 3.60%
3M LIBOR + 9.25%
None Up to 25 years
Chase Select Graduate Health Professions Loan COA-Aid
$250,000 cumulative
3M LIBOR + 3.60%
3M LIBOR + 9.25%
None Up to 25 years
Citi Student Loans
0.25% interest rate reduction for auto-debit. Cosigner release after 24 consecutive on-time monthly payments if borrower is creditworthy and a US citizen or permanent resident.

No payments required while in school or during a grace period.

Available to students enrolled full-time, half-time or less as well as international students.

Rates effective as of 6/19/2010. Private student loans are originated by Citibank, N.A. and assigned to The Student Loan Corporation.

CitiAssist Undergraduate Loans COA-Aid
$120,000 cumulative
3M LIBOR + 3.25%
3M LIBOR + 11.00%
0% or 3% up to 15 years with 6 month grace period
CitiAssist Graduate Loans COA-Aid
$150,000 cumulative
3M LIBOR + 3.25%
3M LIBOR + 11.00%
0% or 3% up to 20 years with 6 month grace period
CitiAssist Health Professions Loans COA-Aid
$275,000 cumulative
3M LIBOR + 3.25%
3M LIBOR + 11.00%
0% or 3% up to 25 years with 9 month grace period
CitiAssist Residency, Relocation and Review Loans $18,000 3M LIBOR + 3.25%
3M LIBOR + 11.00%
0% or 3% up to 25 years with 9 month grace period
CitiAssist Law Loans $180,000 cumulative 3M LIBOR + 3.25%
3M LIBOR + 11.00%
0% or 3.0% up to 20 years with 9 month grace period
CitiAssist Bar Exam Loans $15,000 3M LIBOR + 3.25%
3M LIBOR + 11.00%
0% or 3% up to 20 years with 6 month grace period
Citizens Bank
0.50% interest rate reduction for auto-pay from a Citizens Bank account. Cosigner release after initial 36 consecutive on-time payments. Rates effective 6/8/10. Rates and other product features are subject to change at any time.
TruFit Student Loan (School Certified) COA-Aid
$120,000 cumulative (includes federal and private)
1-month LIBOR + 3.00%
1-month LIBOR + 11.25%
0.0% 15 years
Commerce Bank
Funded by Sallie Mae Bank.
Lender ID 900917.

Borrowers may apply for cosigner release after successful completion of their education and 12 months of on-time payments of principal and interest.

0.25% interest rate reduction for auto-debit.

2% "Smart Reward" rebate on on-time in-school monthly interest payments.

The interest rates may be up to 0.50% better for borrowers who apply with a creditworthy cosigner.

Rates effective as of 5/10/2010. The Sallie Mae web site provides additional details concerning the Smart Option loan terms and APR information.

Smart Option Student Loan for Undergraduate, Graduate and Professional School Students (School Certified) COA-Aid 1-month LIBOR + 2.5%
1-month LIBOR + 9.875%
No disbursement or repayment fees. 5-15 years based on loan balance and year in school.
Career Training Smart Option Student Loan for Students attending Career and Vocational Training Schools (School Certified) COA-Aid 1-month LIBOR + 9.5%
1-month LIBOR + 13.5%
0% - 5% disbursement fee. No repayment fees. 5-15 years based on loan balance and year in school.
Discover Student Loans
0.25% interest rate reduction for auto debit, 2% cash back at graduation. Rates effective as of 6/1/09.
Undergraduate Loan
School Certified
COA-Aid PRIME + 1.0%
PRIME + 7.75%
no fees 15 years
Graduate Loan
School Certified
COA-Aid PRIME + 1.0%
PRIME + 7.75%
no fees 20 years
Fifth Third Bank
Funded by Fifth Third Bank. Lender code 508780. Private loans are serviced by Sallie Mae.

Borrowers may apply for cosigner release after successful completion of their education and 12 months of on-time payments of principal and interest.

A 0.25% percentage point interest rate reduction is available for automatic debit. 2% "Smart Reward" rebate on on-time in-school interest payments. The interest rates may be up to 0.50% better for borrowers who apply with a creditworthy cosigner.

Rates effective as of 6/28/2010.

The Fifth Third web site provides additional details concerning the Smart Option loan terms and APR information.

Smart Option Student Loan funded by Fifth Third Bank for Undergraduate, Graduate and Professional School Students (School Certified) COA-Aid ($1,000 minimum) 1-month LIBOR + 2.5%
1-month LIBOR + 10.875%

Borrowers may choose either fixed payments of $25/month or full interest payments while in school and for six months thereafter. Payments of full principal and interest begin following the last day of the separation period and continue during the remainder of the term.

No disbursement fee. No repayment fee. 5-15 years based on loan balance and year in school.
Bar Study Loan funded by Fifth Third Bank $1,000 (min)
$15,000 (max)
1-month LIBOR + 5.0%
1-month LIBOR + 14.0%
0% to 5% at disbursement. No repayment fee. Up to 15 years.
Residency and Relocation Loan funded by Fifth Third Bank $1,000 (min)
$15,000 (max)
1-month LIBOR + 5.0%
1-month LIBOR + 14.0%
0% to 4% at disbursement. No repayment fee. Up to 20 years.
First Marblehead Various Lenders, including Charter One, Citizens Bank, Education Services Foundation, Laurel Collegiate Loans, Monticello Student Loans, Student Loan Financial Group (Quick-to-Learn Student Loan), TuitionWise Student Loans and NextStudent. Terms may vary by lender. COA-Aid
$30,000/year (with cosigner)
$10,000/year (without cosigner)
$120,000 cumulative ($130,000 for law and osteopathy, $225,000 for medical and dental programs)
LIBOR + 4.30%
LIBOR + 9.20%
0% to 10.85% Up to 20 years
Graduate Leverage

0.25% interest rate reduction for auto-debit (ACH) for all loan programs.

School-certified Private Loans (Undergraduate Students) COA-Aid
$25,000/year
1-month LIBOR + 1.75%
1-month LIBOR + 10.0%
0% to 6% Up to 20 years, depending on loan balance
School-certified Private Loans (Graduate Students) COA-Aid
$25,000/year
1-month LIBOR + 1.75%
1-month LIBOR + 10.0%
0% to 6% Up to 20 years, depending on loan balance
Medical Residency & Relocation Loan Program $20,000 1-month LIBOR + 5.0%
1-month LIBOR + 8.0%
1% interest rate reduction upon entering repayment
0% to 6% Up to 15 years, depending on loan balance
Dental Residency & Relocation Loan Program $20,000 1-month LIBOR + 5.0%
1-month LIBOR + 9.0%
1% interest rate reduction upon entering repayment
0% to 6% Up to 15 years, depending on loan balance
Veterinary Internship & Relocation Loan Program $20,000 1-month LIBOR + 5.0%
1-month LIBOR + 9.0%
1% interest rate reduction upon entering repayment
0% to 6% Up to 15 years, depending on loan balance
Bar Study Loan $17,500 1-month LIBOR + 3.0%
1-month LIBOR + 12.0%
1% interest rate reduction upon entering repayment
0% to 6% Up to 15 years, depending on loan balance
Maine Educational Loan Authority (MELA)

Rates effective June 1, 2009.

Must be a Maine resident or attending a Maine college to apply for this loan.

The Maine Loan COA-Aid 8.43% for all borrowers, regardless of credit. Requires interest-only payments during the in-school and six-month grace periods. 4% fee added to loan balance at disbursement. 4 to 20 years, depending on amount borrowed
The Maine Medical Loan COA-Aid 8.43% for all borrowers, regardless of credit. Option to defer principal and interest during the in-school period and for up to four years of residency and internship. 4% fee added to loan balance at disbursement. 4 to 25 years, depending on amount borrowed
MEFA
Borrower or co-borrower or student must live in Massachusetts or the student must be attending a Massachusetts college or university.
MEFA Undergraduate Loan
(cosigned)
COA-Aid 7.75% fixed (immediate repayment)
8.89% fixed (defer repayments until up to 6 months after graduation; 5 year deferment limit)
4% 15 years
MEFA Graduate Loan COA-Aid 8.89% fixed (repayment deferred until up to 6 months after graduation, 36 month deferment limit) 4% (with cosigner)
7% (without cosigner)
15 years
NYHELPs
Student borrower, non-student borrower and cosigner (required for student borrowers) must be New York residents.

Student must be matriculated in an eligible program at least half time at a participating New York college.

0.25% interest rate reduction for auto-debit.

Cosigner release option available for borrowers who satisfy credit criteria (at time of release) after 48 consecutive on-time payments after graduation. Only borrowers who pay at least the interest during the in-school period are eligible for cosigner release.

NYHELPs Principal & Interest Payments During In-School/Grace Period (required for non-student borrowers) $10,000 annual (freshmen)
$15,000 annual (sophomores)
$20,000 annual (juniors, seniors and graduate students)

$20,000 cumulative (2-year undergraduate)
$50,000 cumulative (4-year undergraduate)
$70,000 cumulative (undergraduate and graduate combined)

7.55% fixed 4% to 6% (with cosigner)
4% or 8% (non-student borrower without cosigner)
10 to 20 years, depending on amount borrowed
NYHELPs Interest-Only Payments During In-School/Grace Period (student borrowers only) 8.25% fixed 5% to 7% (with cosigner)
NYHELPs Full Deferment of Principal and Interest During In-School/Grace Period (student borrowers only) 8.75% fixed 7% (with cosigner)
PNC Education Lending
0.50% interest rate reduction for auto-debit. Co-signer release option after 48 consecutive on-time payments.
PNC Solution Loan for Undergraduates COA-Aid LIBOR + 4.0%
LIBOR + 10.75%
0% to 6% 15 years
PNC Solution Loan for Graduates $65,000/year
$225,000 cumulative
LIBOR + 4.0%
LIBOR + 10.75%
0% to 6% 15 years
PNC Solution Loan for Health Professions $65,000/year
$225,000 cumulative
Up to $15,000 residency relocation loan
LIBOR + 4.0%
LIBOR + 10.75%
0% to 6% 15 years
PNC Solution Loan for Bar Study Up to $15,000 LIBOR + 4.0%
LIBOR + 10.75%
0% to 6% 15 years
Regions Bank
Funded by Sallie Mae Bank.
Lender ID 900902.

Borrowers may apply for cosigner release after successful completion of their education and 12 months of on-time payments of principal and interest.

0.25% interest rate reduction for auto-debit.

2% "Smart Reward" rebate on on-time in-school monthly interest payments.

The interest rates may be up to 0.50% better for borrowers who apply with a creditworthy cosigner.

Rates effective as of 5/10/2010. The Regions web site provides additional details concerning the Smart Option terms and APR information.

The Sallie Mae Smart Option Student Loan for Regions Bank is for Undergraduate, Graduate and Professional School Students (School Certified) COA-Aid 1-month LIBOR + 2.5%
1-month LIBOR + 9.875%
No disbursement or repayment fees. 5-15 years based on loan balance and year in school.
The Sallie Mae Career Training Smart Option Student Loan for Regions Bank is for Students attending Career and Vocational Training Schools (School Certified) COA-Aid 1-month LIBOR + 9.5%
1-month LIBOR + 13.5%
0%-5% disbursement fee. No repayment fees. 5-15 years based on loan balance and year in school.
Rhode Island Student Loan Authority (RISLA)
Loans are available for Rhode Island residents attending schools in and out-of-state and non-Rhode Island residents enrolled at an eligible Rhode Island college or university.

Rates are effective for the 2010-2011 academic year.

Rhode Island Family Education Loan (RIFEL) COA-Aid
$175,000 cumulative
7.25% fixed (immediate repayment) with a 10-year repayment term
7.76% fixed (immediate repayment) with a 15-year repayment term
8.49% fixed (defer repayments until up to 6 months after graduation; 54 months deferment limit unless borrower enrolled fulltime in a 5 year program or graduate school) with a 15-year repayment term
4% 10-15 years
Sallie Mae
Funded by Sallie Mae Bank.
Lender ID 900905.

2% Smart RewardSM rebate on on-time in-school monthly interest payments.

0.25% interest rate reduction for auto-debit.

The interest rates may be up to 0.50% better for borrowers who apply with a creditworthy cosigner.

Borrowers may apply for cosigner release after successful completion of their education and 12 months of on-time payments of principal and interest.

Rates effective as of 6/28/2010. Additional terms, conditions and limitations apply. Sallie Mae reserves the right to modify or discontinue products, services and benefits at any time without notice. The Sallie Mae web site provides additional details concerning the Smart Option loan terms and APR information. Check the Sallie Mae web site to obtain the most up-to-date information.

Smart Option Student Loan — Fixed Repayment Option

Fixed payments of $25/month while in school and for six months thereafter. Payments of full principal and interest begin following the last day of the separation period and continue during the remainder of the term.

For Undergraduate, Graduate and Professional School Students attending degree-granting institutions only. (School Certified)

COA-Aid 1-month LIBOR + 3.5%
1-month LIBOR + 10.875%
No disbursement or repayment fees. 5-15 years based on loan balance and year in school.
Smart Option Student Loan — Interest Repayment Option

Full interest payments while in school and for six months thereafter. Payments of full principal and interest begin following the last day of the separation period and continue during the remainder of the term.

For Undergraduate, Graduate and Professional School Students attending degree-granting institutions only. (School Certified)

COA-Aid 1-month LIBOR + 2.5%
1-month LIBOR + 9.875%
No disbursement or repayment fees. 5-15 years based on loan balance and year in school.
Career Training Smart Option Student Loan — Fixed Repayment Option

Fixed payments of $25/month while in school and for six months thereafter. Payments of full principal and interest begin following the last day of the separation period and continue during the remainder of the term.

For students attending Career and Vocational Training Schools (School Certified)

COA-Aid 1-month LIBOR + 8.5%
1-month LIBOR + 12.5%
0%-5% disbursement fee. No repayment fees. 5-15 years based on loan balance and year in school.
Career Training Smart Option Student Loan — Interest Repayment Option

Full interest payments while in school and for six months thereafter. Payments of full principal and interest begin following the last day of the separation period and continue during the remainder of the term.

For students attending Career and Vocational Training Schools (School Certified)

COA-Aid 1-month LIBOR + 7.75%
1-month LIBOR + 11.75%
0%-5% disbursement fee. No repayment fees. 5-15 years based on loan balance and year in school.
South Carolina Student Loan Corporation Palmetto Assistance Loan COA-Aid
$100,000 cumulative
7.15% to 9.15% (fixed) 1% to 3% based on credit 10-15 years
Student Loan Network
0.25% interest rate reduction for auto-debit. 0.25% interest rate reduction for first 36 consecutive on-time payments (48 months for international).
Act Education Loan for Undergraduate Students COA-Aid
$40,000/year
$130,000 cumulative
LIBOR + 3.5%
LIBOR + 7.75%
3% to 10.5% 20 years
Act Education Loan for Graduate Students COA-Aid
$40,000/year
$130,000 cumulative
LIBOR + 3.5%
LIBOR + 7.75%
4.5% to 10.5% 20 years
Act Education Loan for K-12 Students COA-Aid
$30,000/year
$130,000 cumulative
LIBOR + 4.95% (min & max) 6% (min & max) 20 years
Act Education Loan for Continuing Education Students COA-Aid
$15,000/year
$30,000 cumulative
LIBOR + 3.75%
LIBOR + 8%
4.5% to 10.5% 20 years
GradLoans.com Graduate Student Loan COA-Aid
$50,000/year
$120,000 cumulative
LIBOR + 4.95%
LIBOR + 7.75%
Rates may differ according to repayment option. Rates during repayment may be higher than rates during the in-school period.
0% to 8% 15 years
GradLoans.com Medical School Loan COA-Aid
$70,000/year
$225,000 cumulative
20 years
GradLoans.com Dental School Loan COA-Aid
$70,000/year
$225,000 cumulative
20 years
GradLoans.com Law School Loan COA-Aid
$70,000/year
$130,000 cumulative
15 years
GradLoans.com MBA Student Loan COA-Aid
$70,000/year
$120,000 cumulative
15 years
GradLoans.com Bar Exam Loan $1,500 - $15,000 (one time loan) 15 years
GradLoans.com Medical Boards Exam Loan $1,500 - $15,000 (one time loan) 15 years
GradLoans.com Medical Residency/Relocation Loan $1,500 - $15,000 (one time loan) 15 years
GradLoans.com Dental Boards Exam Loan $1,500 - $15,000 (one time loan) 15 years
GradLoans.com Dental Residency/Relocation Loan $1,500 - $15,000 (one time loan) 15 years
InternationalStudentLoan.com - Undergradute Internationals in the U.S.
(TERI schools. Requires US citizen or permanent resident cosigner.)
COA-Aid
$40,000/year
$130,000 cumulative
LIBOR + 3.5%
LIBOR + 7.75%
3% to 10.5% 20 years
InternationalStudentLoan.com - Gradute Internationals in the U.S.
(TERI schools. Requires US citizen or permanent resident cosigner.)
COA-Aid
$40,000/year
$130,000 cumulative
LIBOR + 3.5%
LIBOR + 7.75%
4.5% to 10.5% 20 years
StudyAbroadLoans.com - Undergraduate Students Studying Abroad COA-Aid
$50,000/year
$120,000 cumulative
LIBOR + 4.95%
LIBOR + 7.75%
Rates may differ according to repayment option. Rates during repayment may be higher than rates during the in-school period.
0% to 8% 15 years
StudyAbroadLoans.com Graduate Students Studying Abroad COA-Aid
$70,000/year
$120,000 cumulative ($130,000 for law or osteopathic, $225,000 for medical or dental)
15-20 years
StudentLoans.com
(A Brazos company.)
Undergraduate Private Loan
Graduate Private Loan
Elementary / Middle School Private Loan
High School Private Loan
Continuing Education Private Loan
COA-Aid or $30,000 ($40,000 where COA > $30,000) whichever is less
No cumulative limit
LIBOR + 1.8%
LIBOR + 7.5%
0% to 9% 20 years
SunTrust Education Loans
0.25% interest rate reduction for auto-debit. $300 principal reduction upon graduation.

Rates effective 6/3/2010.

SunTrust Academic Answer Loan - Undergraduate COA-Aid
$100,000 cumulative (includes federal and private student loan debt)
1-month LIBOR + 3.75%
1-month LIBOR + 11.25%
None Up to 15 years
SunTrust Academic Answer Loan - Graduate COA-Aid
$150,000 cumulative (includes undergraduate and graduate federal and private student loan debt)
1-month LIBOR + 3.75%
1-month LIBOR + 11.25%
None Up to 15 years
Think Student Loans
(Think Financial)
0.25% interest rate reduction for auto-debit. 0.25% interest rate reduction for first 36 consecutive on-time payments.
Undergraduate Students $40,000/year
$130,000 cumulative
LIBOR + 3.50%
LIBOR + 7.75%
3.0% to 10.5% Up to 20 years
Graduate Students $40,000/year
$130,000 cumulative
LIBOR + 3.50%
LIBOR + 7.75%
4.5% to 10.5% Up to 20 years
Continuing Education Loan $30,000/year
$130,000 cumulative
LIBOR + 3.75%
LIBOR + 8.00%
4.5% to 10.5% Up to 20 years
K-12 Loan $30,000/year
$130,000 cumulative
LIBOR + 4.95% 6.0% Up to 20 years
U.S. Bank
0.50% interest rate reduction for auto-pay
Rates effective 4/1/2010
U.S. Bank No Fee Education Loan Up to $20,000 annually (per grade level)/$50,000 cumulative PRIME + 0.95%
PRIME + 1.95%
PRIME + 5.75%
PRIME + 8.95%
None Up to 15 years
Wells Fargo Private Student Loans
0.25% interest rate reduction for auto-debit from a personal checking or savings account. 0.5% interest rate reduction upon validation of graduation. Benefits listed may vary and are subject to change. Variable rate has a floor rate of 3.25%.
Wells Fargo Collegiate Loan COA-Aid
$120,000 cumulative
PRIME + 1.0%
PRIME + 7.99%
0% 15 years
MedCAP Alternative Loan COA-Aid
$120,000 to $250,000 cumulative, depending on program
PRIME + 1.50%
PRIME + 4.0%
0% 15-20 years
MedCAP XTRA $12,500 for medical boards and clinical exams, $15,000 for residency interview and relocation, $5,000 for internships. Subject to same aggregate limits as MedCAP Alternative Loan. PRIME + 4.5% 0% 15-20 years
Wells Fargo Graduate Loan COA-Aid
$120,000 to $180,000 cumulative, depending on program
PRIME + 1.50%
PRIME + 5.00%
0% 15 years
Wells Fargo Bar Exam Loan $12,000
$180,000 aggregate
PRIME + 4.5% 0% 15 years
Wells Fargo Education Connection Loan $25,000/year
$100,000 cumulative
PRIME + 2.50%
PRIME + 9.49%
2% 15 years
Wells Fargo Private Student Loan for Parents $25,000/year
$100,000 cumulative
PRIME + 1.0%
PRIME + 7.49%
No fees. 15 years

Special Uses

Loans which can be used for purchase of a computer include:

  • U.S. Bank No Fee Education Loan

Loans which can be used for study abroad include:

  • U.S. Bank No Fee Education Loan

Loans which do not require school certification include:

  • Chase Private Student Loans
  • Wells Fargo Education Connection Loan

Loans which can be used for previous school charges include:

  • Charter One TruFit Loan
  • Citizens Bank TruFit Loan
  • Chase Select Loans
  • Discover Student Loans
  • First Marblehead
  • PNC Solution Loan
  • Sallie Mae Smart Option Loans
  • The Maine Loan and The Maine Medical Loan
  • Think Financial
  • U.S. Bank No Fee Education Loan
  • Wells Fargo Education Connection Loan

Most are available for up to six months after the end of the semester. Some are available for 60 days and some for up to a year.

Loans which do not require the borrower to be enrolled in a degree-seeking program include:

  • Sallie Mae Career Training Smart Option Student Loan
  • U.S. Bank No Fee Education Loan

Loans which do not require the borrower to be enrolled at least half-time include:

  • Chase Select Loans
  • Sallie Mae Smart Option Student Loan
  • U.S. Bank No Fee Education Loan
  • Wells Fargo Education Connection Loan
Also, some continuing education loans do not require at least half-time enrollment.

Loans which are discharged upon the death or total and permanent disability of the primary borrower include:

  • New York NYHELPs
  • Sallie Mae Smart Option Loans

Definitions

  • LIBOR is the 3-month average of the London Interbank Offered Rate. LIBOR is the average interest rate paid on deposits of US dollars in the London market.
  • PRIME is the Prime Lending Rate as published in the Wall Street Journal. This is the rate banks charge their most creditworthy customers.
  • COA-Aid is the Cost of Attendance minus all other student aid received.
  • APR is the Annual Percentage Rate, a rate that factors in the interest rate, fees, and other terms.

Current LIBOR and Prime Lending rates can be found in the Federal Reserve's Statistical Release. The LIBOR rate appears in the London Eurodollar Deposits lines (1, 3 and 6 month figures) and the Prime Lending Rate appears in the Bank Prime Loan line.

The current (weekly) interest rates are:

  • Prime Lending Rate: 3.25%
  • LIBOR (1 month): 0.45%
  • LIBOR (3 months): 0.60%
  • 91-day T-Bill: 0.16%

The current spread between the Prime Lending Rate and the 3-month LIBOR is 2.65%. The current spread between the Prime Lending Rate and the 1-month LIBOR is 2.80%.

 

 
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