# Rates & Terms

Interest Rate = Index + Margin

Annual Percentage Rate (APR) = Interest Rate adjusted for applicable fees and discounts

Term Fee Rate Reduction Index Interest Rate
10 years
(120 months)
2.5% 0.25% rate reduction when signed up
for automatic ACH payments.
Variable, based on 3-Month LIBOR and
may increase after loan consummation,
subject to floor rate of 2.75%.
4.57% - 10.82%
(4.80% APR - 10.34% APR)

### Loan Cost Example

Assuming a \$10,000 loan amount, a 4.80% APR, and a 10-year term, you would make 54 (48 months in school + 6 month grace period) monthly payments of \$25 while enrolled in school followed by 120 monthly payments of \$114.54 to repay this loan. If the APR is 10.34% and the loan amount remains \$10,000 you would make 54 monthly payments of \$25 while you are enrolled in school followed by 120 monthly payments of \$190.06 to repay this loan. The APR may increase during the life of the loan and can result in higher monthly payments.

### Annual Percentage Rate (APR)

The Annual Percentage Rate (APR) represents the total amount a loan will cost over a one-year period. Expressed as a single percentage, the APR gives borrowers a clear understanding of a loan's true overall cost, as it accounts for the interest rate, together with any and all fees.The APR also considers how the loan is paid back, including the amount of monthly payments and the length of any deferment period and the repayment period. The APR may be lower than the interest rate as a result of automatic rate reductions that are to occur at a future date or because the loan has a deferment period during which full payments of principal and/or interest are not required.

### Minimum Monthly Payment

The monthly minimum payment during the Repayment Period is your calculated monthly payment or \$50.00, whichever is greater.

### LIBOR Index

The London Interbank Offered Rate (or LIBOR) is a daily reference rate based on the interest rates at which banks borrow unsecured funds from other banks. This offered rate is the funding cost to a bank and is commonly used as a benchmark for the bank's lending rate.

The Base Rate adjusts quarterly on the first day of January, April, July and October. We use the average of the 3-Month LIBOR, as reported by the Wall Street Journal on the 1st of each month, for the last three months preceding the adjustment date. If the 1st of the month is not a business day, the last business day in the previous month will be used.

### Upfront Fee

The Upfront Fee is charged one time at loan disbursement. The Upfront Fee is added to your principal balance, so you do not pay anything out of pocket when you take the loan.