Rates and Terms

The interest rate on NextStudent Private Loans varies quarterly, based on the London Interbank Offered Rate (LIBOR), plus a margin.

	Rate index2 & Margin Origination Fees3 APR4 Private K-12 Private Education Loan LIBOR + 3.75% 6.0% 5.81%

For NextStudent Private Loans, the LIBOR rate is averaged over the previous three months. The LIBOR is listed daily in the Wall Street Journal and at www.bloomberg.com.

The LIBOR Rate for quarter January 1–March 31, 2005 = 2.04%.

Terms

Repayment begins 30 – 45 days after loan funds are disbursed.

²The LIBOR (London Interbank Offered Rate) Index is equal to the average of the one-month LIBOR rates as published in the “Money Rates” section of the Wall Street Journal on the first business day of each of the three (3) calendar months immediately preceding each quarterly adjustment date. Charter One Bank, N.A. is the lender for the NextStudent K-12 Private Education Loan.

³The origination fee is computed as a percentage of the sum of the loan amount and the origination fee.

⁴Annual Percentage Rate (APR) computations assume student requests $10,000; repayment begins immediately and the LIBOR Index equals 2.04%. If the LIBOR Index increases, the APR will increase. The LIBOR Index changes quarterly.

Repayment

Repayment normally begins six months after the student leaves college, with a minimum monthly payment of $50 (actual payment depends on the amount borrowed). There is no prepayment penalty and the repayment periods are initially set at 10 years.
The student may choose alternate repayment options such as Deferment, Forbearance, and Income-sensitive repayment to reduce or postpone repayment. Some sort of hardship usually has to occur for such options to be granted.

All Stafford debt is forgiven in the event of death or permanent disability of the borrower.

	Quick Links » Apply Online » Teen Esteem Overview » Eligibility » Loan Amounts