The interest rate for an Edamerica Private Loan is the Prime Rate, adjusted as and when it changes (5.25% as of Apr 2008), plus a margin depending on your credit history.
APR (Annual Percentage Rate) is the effective interest rate when the origination fee and interest charges are included. Based on your selected deferment option, the term of the loan and your credit history at the time of application, your APR may vary.
An origination fee of 0% to 10.00%, depending on the loan type, repayment option, credit history and whether a creditworthy co-signer is included, will be added to and financed with the loan amount.
The principal amount of your loan ("loan amount") includes the total amount disbursed plus the origination fee.
We offer three repayment options:
1) Start making payments of principal and interest immediately
2) Make interest-only payments while enrolled in school
3) Make no payments while enrolled in school
You can select the option that best fits your family's lifestyle and student's post-graduation income expectations.
Payments will vary depending upon if payments consist of interest only or principal and interest and depending on changes in the Prime Rate or the margin. The maximum repayment term is 20 years. Your loan amount determines your repayment term.
$3,000 - $50,000 240 months (20 years)
Loan Amount: $10,000
Loan Term: 20 Years
Loan Purpose: Undergraduate/Career Education and Graduate/Professional Education
If a student borrows $10,000 and chooses to defer principal repayment and has a 4-year deferment period (48 months), and the variable interest rate remains constant at 8.75% over both the 4-year deferment period and the 16-year repayment period, and the origination fee is 4.0%, the monthly payment would be $72.92 while in-school and $96.95 in repayment, the APR would be 9.28% and the total finance charge would be $12,514.83.
Note: Example is based on Prime Rate of 5.25% as of Apr 2008. Interest rate and origination fee may vary based on loan type, repayment option, credit history and whether a co-signer is included.
