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Interest Rates: Private Student Loans

Private Student Loan Interest Rates

Most private student loans are variable-rate loans, with interest rates varying by lender. Your interest rate may adjust monthly, quarterly, annually, or at some other interval as designated by your lender.

The interest rate on a private student loan is generally determined by adding a variable index (such as LIBOR or T-bill) to a fixed margin. The margin used to determine your student loan interest rate can vary depending on your creditworthiness. Borrowers who are deemed more creditworthy typically qualify for lower margins and thus lower interest rates.

Fees, like interest rates, will also vary by lender. The types of fees assessed, as well as the amounts charged, will depend on the lender and may also depend on your creditworthiness.

Here are some common lender fees you may run into, but keep in mind that not all lenders will charge all these fees:

  • Application Fees: Fee charged in order for you to apply for a private student loan. Paying an application fee doesn’t guarantee approval of your application.
  • Origination Fees: Fee charged in order for a lender to issue you (“originate”) your private student loan. Origination fees are often added into your loan amount. The origination fee you pay may vary depending on your creditworthiness — borrowers with stronger credit may pay lower origination fees than those borrowers with weaker credit.
  • Repayment Fees: Depending on your creditworthiness, some lenders may assess a repayment finance charge at the time that your private student loan goes into repayment.


e-Student Loans Program Features:

  • Loans amounts from $2,000.00 up to the Cost of Attendance per year.
  • Loans up to $120,000.00 for undergraduate debt.
  • Loans up to $160,000.00 for graduate debt.
  • Variable Interest loan based upon 3-month LIBOR index plus margin. (Recent rates for approved loans range from 2.99%-8.99%)
  • Interest paid on loans may be tax deductible.  Please consult a tax advisor.
  • Borrowers can choose to make an interest only payment or pay a $25.00 Proactive Payment towards the loan while in enrolled in school. 
  • Funds can be utilized for any qualified expense, including past due tuition.
  • No prepayment penalties
  • 30 day cancellation policy
  • Fast Pre-Approval

Borrower Benefits:

  • Credit + Academic based underwriting:  Underwriting is based on the FACS Grade, which bases each borrowers qualifying rate on credit history as well as the students academic standing.  Good academics along with getting  closer to graduation means qualifying for lower interest rates
  • 1% Interest Rate Reduction:  After entering the full repayment period and 10% of the loan principal is paid back, borrowers qualify for rate reduction
  • 30 Day No-Fee Cancellation:  Borrowers can cancel a loan within 30 days of disbursement and owe no interest or penalties.
  • Cosigner Release:  Upon 24 consecutive on-time principal and interest payments, credit worthy borrowers can apply to have the co-signer released.


Eligibility Requirements:

  • Borrower must be enrolled in an eligible school and be pursuing a degree program.
  • Borrower must be a member or join a participating credit union during the application process.
  • Borrower must be a U.S. Citizen or permanent resident.
  • Creditworthy student borrowers can apply without a cosigner

 Applying with a cosigner is highly recommended to ensure the lowest qualifying rates!

Supporting Documentation:

  • Identification: Government issued ID (passport, drivers license, or state issued ID card)
  • Proof of Enrollment: Copy of unofficial transcript (not required for incoming freshman)
  • Proof of Income: Two recent pay stubs within 60 days for both borrowers and cosigners.