Private Loan Information - Marymount University



Private Loan Information

Listed below are some sources for private loans that are available to students to assist in covering expenses that are above what traditional financial aid can cover. Inclusion on this list does not constitute an endorsement of either the lender or the loan program. Confirm all information with the lender before making your final decision.

The private loans listed in the first group require school certification before being approved. These loan products are intended to cover educational related expenses.

The private loans listed in the second group do not require school certification and may be used for various living expenses above and beyond typical educational expenses. Please contact the individual lender to get specific information on what exact expenses the loan can be used for.

Lender List

|I. |Private loans that |pay educational |expenses |

|Sallie Mae |Signature Loan |1-800-695-3317 | |

|Nellie Mae |Excel Education Loan |1-800-for-tuition | |

|Citibank |CitiAssist Loan |1-800-394-7580 | |

| |*Eligible also for: | | |

| |Non-degree student | | |

| |Less than half-time | | |

|Access Group |Grad Students Only |1-800-282-1550 | |

|Bank of America |Private Loan |1-800-344-8382 | |

|Key Education Resources |Key Alternative Loans |1-800-539-5363 | |

|PNC Bank |Resource Loan |1-800-851-2892 |eduloans. |

|Wells Fargo |Collegiate Loan |1-800-658-3567 | |

| | | | |

|II. |Private loans that |can also include |living expenses |

|Bank One |Education One Campus Loan |1-888-663-3992 | |

|Sallie Mae |Tuition Answer Loan |1-888-272-5543 | |

|Sun Trust |EMax Loan |1-800-552-3006 | |

| |*Eligible also for: | | |

| |Non-degree student | | |

| |Less than half-time | | |

|Wells Fargo |Education Connection/Plato |1-800-467-5286 | |

| |Education Loan | | |

STUDENTS SEEKING PRIVATE EDUCATIONAL LOANS SHOULD CONSIDER SEVERAL FACTORS WHEN COMPARING PRIVATE LOAN PROGRAMS

Interest rates: Rates are usually variable, tied to the prime rate or three-month Treasury bill rate.

Accrual terms: The frequency of interest capitalization while in school or in grace periods can significantly affect total interest costs. More frequent capitalization accelerates the growth of the principal balance, in effect requiring the borrower to pay interest. The best deals accrue interest on a simple basis and capitalize on a lump-sum basis at the end of the deferral period.

Fees: Fees vary widely. Typically charged as a percentage of the loan balance, they can range from as low as 0% to 8% or higher. Fees may be disconnected from the loan amount or added to the amount borrowed. In addition, some lenders may opt to charge a fee when the loan is disbursed or collect a fee when the loan enters repayment.

In school deferment and grace period: Some loans allow borrowers to defer payments while they are in school and during a post-school grace period.

Borrower benefits: A number of loan programs reward borrowers for consistently making their payments on time. These benefits may take effect after a period of one to four years. The benefits may take the form of reductions in the interest rate or a rebate of origination fees. Some lenders have begun offering up-front benefits, such as preferential interest rates from the outset. The borrower keeps this as long as he/she makes on time payments. A late payment causes the rate to rise under a specified formula. Borrowers should understand the importance of always making on time payments. Borrower benefits are theirs to use or lose.

Quality of loan servicing: Borrowers want good service in the form of accurate billing, electronic fund transfer (EFT), payment capability, friendly customer support provided via toll-free phone lines, repayment counseling and online account inquiry capability.

Repayment terms: How long does a borrower have to repay: 10 years, 15 years or longer? Does the private loan lender offer repayment options for the borrower to select from?

Deferment or forbearance options: An important feature for many graduate students is the ability to defer principal and interest payments during a post-school residency or internship. Private loans can vary in the length of deferment and forbearance periods.

Cosigner terms: Does the loan allow a borrower to qualify for better interest rates by obtaining a cosigner? This is important because many young people simply don’t have a strong enough credit record to qualify on their own. Some lenders allow cosigners to be dropped from the loan after a specified period of on time payments, provided the borrower is deemed sufficiently credit worthy.

Credit Criteria: Virtually all private loan providers check the credit record of a borrower. The terms of the loan may be different depending on how a student meets the lender’s credit criteria. For example, “credit-worthy” borrowers might have a documented credit history, while “credit-ready” borrowers simply do not have a credit record to review. For some private loans, credit-worthy borrowers may be required to have a three-year employment history and a debt-to-income ratio of 40% or less. Credit-ready borrowers do not have to meet these criteria.

Late charges: Penalties and rules for imposing late charges can vary widely among lenders. This key detail in fine print should not be overlooked.

Consolidation: At times, borrowers have more than one loan through several lenders. Consolidation is the process of having the granting company buy all of your student loans. This makes re-payment easier because you pay one monthly amount, write out only one check and send it to just one place. Will the private loan allow you to consider consolidation in later years?

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