College Loan Frequently Asked Questions

Why can't I borrow more than the cost of tuition?

Our private student loan allows you to pay for education related expenses up to 100% of the Cost of Attendance minus any other aid you are receiving, as determined by your school.

What proof of enrollment do I need to provide?

You do not need to show proof of enrollment. Your school verifies your enrollment when we contact them regarding your loan application.

What are the different repayment options?

You have three options including deferment or repayment of interest only or interest and principle.

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 either 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 the loan is fully disbursed.

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Are the funds from the loan sent directly to me?

No, a check will be sent directly to your school. If you have questions about what you can use the funds for, you should check with the financial aid department at your college.

How soon will I receive my funds?

Once you receive conditional approval, you will complete a promissory note and be required to submit documentation to verify the information on your application. If you return the requested documents quickly, your school will receive your money soon afterward — it typically takes about 14 days but can take longer depending on the time of year and how quickly your paperwork is turned in.

What is my interest rate?

The Interest rate is a combination of the Prime rate plus or minus a margin. The rate will fluctuate as the Prime rate changes every three months.

Can I defer my payments while I'm in school?

Yes, you can defer your payments for up to 60 months as an undergrad student as long as you are a half time student.

How is the interest rate calculated for the private student loan?

The variable interest rate is calculated by adding the current Prime rate to a margin (determined by you and your cosigner's credit worthiness). If you have exceptional credit your interest rate could be Prime rate minus a margin.

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How much can I borrow with the private student loan?

The loan offers an annual maximum of 100% of the Cost of Attendance minus any other aid you receive. The annual Cost of Attendance is determined by your college.

Is there a grace period?

Yes. If you choose full deferment, payments do not have to start on the private student loan until six months after graduation or dropping below half-time status.

Is there a minimum monthly payment?

Yes. Once principle and interest payments begin, the minimum monthly payment is $50.

What expenses can the private student loan cover?

The private student loan can be used to cover education-related expenses including tuition, fees, books, living expenses, a new computer, etc.

Do I have to be enrolled at least half-time to receive a private student loan?

Yes. Borrowers must be enrolled at least half-time in an eligible and participating school in order to receive a private student loan.

Does your private student loan offer any discounts?

Yes! You will receive a 0.25% interest rate deduction for setting up automatic payments from a bank account during repayment.

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Is the interest tax-deductible?

Interest on student loans may be tax deductible. Please consult your tax advisor or visit irs.gov for more information.

How long are repayment terms for the private student loan?

The standard repayment term is 15-20 years subject to a $50 minimum monthly repayment amount.

What are the benefits of the private student loan?

1. If you choose full deferment, payments do not have to start on the private student loan until six months after graduation or dropping below half-time status.
2. You are not required to make payments while you are enrolled at least half-time in school.
3. Up to $2,500 in interest may be tax deductible – you should consult a tax advisor for details.
4. You will receive a 0.25% interest rate deduction for setting up automatic payments from a bank account during repayment.