#low interest rate loans
Student Loan Interest Rates
(for new applications)
We provide the choice of fixed or variable interest rates. Interest rates for private student loans are credit based. Unlike federal student loans, the interest rate is not the same for every borrower. Students with better credit or students applying with a creditworthy cosigner may receive a better interest rate. Learn more about interest rates.
When evaluating student loan options, there are lots of factors to consider. We encourage you to consider fees, interest rate, monthly payment and total loan cost. Learn more about evaluating student loans.
If your application was submitted prior to June 1, 2014, your interest rate is based on the Prime Index. Applications submitted on or after June 1, 2014, will have an interest rate based on the 3-Month LIBOR.
- A fixed interest rate is set at the time of application and does not change during the life of the loan
- A variable interest rate may change quarterly during the life of the loan, if the 3-Month LIBOR changes. This may cause the monthly payment to increase, the number of payments to increase or both.
APR and Loan Cost Examples
For the range of interest rates effective on new applications as of July 8, 2015
- The following examples depict the APR, monthly payment and total payments during the life of a $10,000 private loan with a single disbursement.
- For variable rate loans, the 3-Month LIBOR is currently 0.375% and may change quarterly. This may cause the monthly payment to increase, the number of payments to increase or both.
- Your actual student loan interest rate may be different than the rates in these examples and will be based on your credit history, which repayment option you choose and other factors, including your cosigner’s (if any) credit history.
- The deferment period is an example of the number of months a student is not required to make any payments of principal or interest, unless a student elects, during the application process, to make $25 in-school, fixed payments. It includes the amount of time the student is enrolled in school at least half-time and a grace period. The repayment period is the number of months over which the loan will be repaid.
- Interest rates and APR examples are rounded up to the nearest hundredth of one percent.
There are two examples represented below.
- The Deferred Payment examples assume no payments are made during the deferment period. Although you are not required to make payments until your loan enters repayment, you can make payments ahead of schedule at any time without penalty. By making payments ahead of schedule, you can reduce the total cost of your loan.
- The In-School Payment examples assume you elected, during the application process, to make fixed payments of $25 each month while you are in-school and during your grace period. By selecting this option, you can reduce the amount of accrued interest capitalized when you finish your in-school and grace periods, thereby reducing the total cost of your loan.