Interest Rate As Low As 7.9%
Private student loan consolidation offers borrowers the benefit of a first year introductory interest rate equal to 3-Month LIBOR (London Interbank Offered Rate) plus 5% to 8.5%.
Origination fees range between 1% and 5% depending upon your individual credit or the credit of a co-signer. Fees are due at loan closing and are capitalized (added to the loan), which increases the amount borrowed but avoids any out-of-pocket expenses at loan closing.
Undergraduate Private Consolidation Program Description:
Based upon a $45,000 principal balance, a 300 month term and a LIBOR rate of 2.8% (as of 7/22/08); the Annual Percentage Rate (APR) would be 7.9% for a borrower with excellent credit who received a rate of LIBOR plus 5% and was assessed a fee of 1% of the loan amount.
Benefits of Private Student Loan Consolidation:
* Lower Monthly Payments: Most borrowers can reduce their monthly payment by extending the repayment term of their private student loan debt.
* Conditional pre-approval decision within minutes online or by phone.
* Reduced Interest Rates: Borrowers with improved credit may often lower their interest rate. Existing loan holders will not reduce your interest rate if your credit has improved.
* Rate Reductions: Borrowers may apply on their own or with a credit-worthy co-signer. Borrower and Co-signers with superior credit may receive lower APR loans.
* Internship/Residency & Military Deferment: A 48 month deferment for medical/dental residents and a 36 month deferment for all active-duty military personnel is available through the Graduate Leverage Private Consolidation Loan Program.
* Up to 25 Year Repayment Term: Borrowers may receive up to a 25 year repayment term which offers the lowest possible monthly payment.
* No Prepayment Penalties: All payments in excess of scheduled payments go directly to principal.
