Rates and Fees*
* Please be aware that due to current conditions in the student loan market in particular and in the financial sector in general, NextStudent is not currently able to accept any new applications for NextStudent Private Loans. However, you may be able to apply for a private student loan from one of our trusted partners. Click here for more information.
The examples in the table below are for illustrative purposes only but should help you understand how much a NextStudent Private Student Loan may cost. The actual rates and fees of your loan may vary from the examples below depending upon your credit history and other underwriting criteria. For all of the examples below, the loan fees are included in the loan amount. The Prime Rate on July 1, 2008, was 5.00%.
Interest Rate
Loan Fee
Repayment Fee
APR
Monthly Payment
Prime – 0.5%
0%
0%
4.53%
$63.13
Prime + 3.9%
5%
0%
9.43%
$106.86
Prime + 4.9%
5%
0%
10.45%
$119.01
Prime + 4.9%
7%
0%
10.66%
$119.01
Prime + 5.9%
9%
0%
11.92%
$132.00
Prime + 7.9%
9%
0%
14.00%
$160.61
Please note that the examples above are based on the following assumptions:
- You borrow $10,000, which includes your loan fee
- Your loan is disbursed in a single disbursement on Jan. 1, 2008
- You graduate 22 months later on Nov. 1, 2009
- Interest capitalizes quarterly
- Your first payment isn’t due until Nov. 1, 2010
- You request a repayment period of 300 months (25 years)
- The Prime Rate remains constant at 5.00% (as of July 1, 2008)
Please also note that a change in the interest rate may result in a change in your monthly payments. This means that if the Prime Rate increases, the Annual Percentage Rate for your loan will increase and would result in higher monthly payments and/or an increase in the number of scheduled payments.
This information is strictly for illustrative purposes. Your Student Loan Promissory Note and Truth-in-Lending Disclosure Statement will contain the actual terms and conditions of your loan. Upon receipt of your Disclosure Statement, it is up to you to decide whether or not to accept the loan. If you do not accept the proceeds of the loan, you will owe nothing. If you do accept the proceeds of the loan, you are responsible to repay the full amount of all disbursements and applicable interest in accordance with the terms of the Student Loan Promissory Note.
The repayment examples on this page apply only to those NextStudent Private Loans for which the Lender was Lehman Brothers Bank, FSB. Some of our borrowers may have qualified for our alternate Private Student Loan program with a different Lender. To view repayment examples and the rates, fees, and terms for our previously offered alternate Private Student Loans, please click here.
Important Information:
Since federal student loans generally offer more attractive terms than private student loans, you should always use your federal financing options first. You should only consider taking out a private student loan if you find that, even after your federal loans and grants, your school costs still exceed your available scholarships and financial aid. In that case, a private student loan could provide the remaining money you need.
In order to provide you with a student loan, it will be necessary for us to share the information you’re providing here with certain third parties, such as a lender or servicer. Any personal information you provide to us on this form may be shared with a third party as outlined in our privacy policy, for the purposes of providing you either with a student loan or with other products or services.
All loans are subject to credit approval. The lender for the NextStudent Private Loan program described above was Lehman Brothers Bank, FSB, Equal Opportunity Lender. NextStudent was compensated for the referral of Private Loan customers to the Lender.
Lehman Brothers Bank, FSB, is no longer a Lender for any NextStudent Private Loan program.
* Based on the annual cost of attendance at your school. The lifetime aggregate maximum loan limit is $250,000