Student Loan Interest Rates
The variable Annual Percentage Rate (APR) on our private student loan is currently as low as %.
The APR is calculated based on the 3-Month LIBOR Index plus a spread. The spread is determined based on the borrower's credit rating. The 3-Month LIBOR Index in effect for the second quarter 2008 (04/01/08 - 06/30/08) is 2.61%. The lowest possible APR for this period is %, assuming principal and interest payments begin immediately and there are no fees. The interest rate/APR is variable and may increase over the life of the loan.
LIBOR vs. Prime Rate
Education Finance Partners has chosen to use the 3-Month LIBOR Index to ensure that our borrowers have the most stable and lowest rate over the life of the loan. Over the past ten years, LIBOR has been less volatile and an average of four points lower than the prime rate.
A loan based on the prime rate can cost more. How much more?
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When Interest Rate is The Interest Rate Is
Additional Cost to Borrowers Is*
Based On LIBOR |
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When Interest Rate is The Interest Rate Is
Additional Cost to Borrowers Is
Based On Prime |
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| *Additional cost over the life of the loan compared to interest rate based on 3-Month LIBOR + 2.50%. Example is based on a loan amount of $10,000 with a 20-year repayment term and payments deferred for five years. | |||||||||||||||||||
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| You can download our LIBOR vs. Prime Rate PDF for more information. |
You may or may not have fees (e.g., an origination fee) associated with a private loan from Education Finance Partners. Fees are determined by your credit history at the time you apply and by the repayment option you choose.
It's important to note that the repayment option you choose also affects the total cost of your loan. If you elect to defer payments while still in school or studying, the interest accrued while in deferment will be added to your loan balance. This is known as interest capitalization. It increases both the principal balance and the monthly payment amounts.
When in repayment, if you elect to have your payments automatically deducted from a checking or savings account, you will receive a 0.25% interest rate discount.
Tax deductions are available to any borrower with a "qualified" student loan-that's a student loan used to cover the cost of attendance at an eligible college, university, vocational school, or other post-secondary educational institution. Students enrolled at least half time in a program leading to a degree, certificate, or other recognized educational credential are eligible. To qualify your Education Finance Partners Private Loan, send us a completed W-9S form, an IRS form that serves as your certification that the funds were used solely for education expenses. You should also seek advice from a qualified tax advisor regarding your specific situation.
For more information about interest rates and fees, visit the Private Student Loan FAQs.
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