# 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)
0% N/A Variable, based on Prime and
may increase after loan consummation,
subject to floor rate of 4.00%.
7.75% - 10.75%
(7.39% APR - 9.97% APR)

### Loan Cost Example

Assuming a \$10,000 loan amount, a 7.39% 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 \$145.66 to repay this loan. If the APR is 9.97% 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 \$183.89 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.

### Prime Index

The Prime Rate is a rate index commonly used by financial institutions for pricing various loan products. The Prime Rate typically shifts in accordance with changes made to the federal funds rate.

The Base Rate adjusts quarterly on the first day of January, April, July and October. We use the Prime Rate, as reported by the Wall Street Journal on the 1st of each month 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.