The Educated Borrower® Health Professional Loan Repayment Example1
| Amount Requested |
$10,000 |
| Origination Fee2 |
(4.00%) $400 |
| Principal Amount of Loan at Disbursement |
$10,400 |
| Deferment Period |
54 Months |
| Principal Amount of Loan at Repayment3 |
$17,968.73 |
| Monthly Principal & Interest payment(after deferral period)4 |
$221.12 |
| Repayment Period |
180 Months |
| APR(Interim Period)5 |
12.76% |
| APR(Repayment Period)5 |
12.47% |
| Total Finance Charges6 |
$29,801.21 |
THE REPAYMENT EXAMPLE ABOVE IS FOR ILLUSTRATION PURPOSES ONLY. THE ACTUAL AMOUNT OF THE LOAN, ORIGINATION FEE, ANNUAL PERCENTAGE RATE AND TOTAL FINANCE CHARGES WILL VARY DEPENDING ON THE BORROWER.
1This repayment example assumes the variable interest rate for The Educated Borrower® Health Profession Loan is equal to the LIBOR Index plus a margin of 10.0%. The interest rate used in this example and in effect as of 11/14/08 is 12.47%. The interest rates for The Educated Borrower® Health Professional Loan to a credit tested borrower or cosigner vary from 12.47% to 12.97% depending on the credit-worthiness of the borrower, or cosigner, if any. LIBOR means London Interbank Offered Rate. The 1-Month LIBOR Index is equal to the average of the one-month London Interbank Offered Rate as made available by the British Banker’s Association 11:00 am London Daily Posting on the first business day of each of the calendar months immediately preceding each quarterly adjustment date. The LIBOR index may change quarterly. The loan terms described here are subject to change.
2The repayment example assumes an origination fee of 4.0%. The origination fees for the Educated Borrower Health Professional Loan to a credit tested borrower or co-signer vary from 4.0% to 6.0% of the total loan amount depending on the creditworthiness of the borrower or cosigner, if any The origination fee, if any, will be added to and financed with the requested loan amount at disbursement.
3Principal at repayment is the principal amount of the loan at disbursement plus interest that accrues during the deferment term which is assumed to be 54 months.
4Monthly payments of principal and interest will be computed based on the interest rate applicable at the time repayment begins. Monthly payments of principal and interest may change quarterly, based on changes in the LIBOR rate. The minimum payment amount per account will be $50.00 per month. If multiple loans are combined into one account this minimum will apply to the account, not to each loan within the account. Notwithstanding this provision, all loans must be amortized within the maximum repayment term per the promissory note.
5Annual Percentage Rate (APR) is a measure of what a loan will cost. It takes into account the rate, fees, repayment length of the loan and the timing of all payments. The APR will increase if the LIBOR Index increases. The Interim Period APR is calculated as of the date the loan finds are disbursed and will not change. The Repayment Period APR is an estimate of what the APR would be at the time repayment begins after any deferment and grace period. For this example, the deferment term is assumed to be 54 months and the LIBOR Index is assumed not to change during the deferment term.
6Finance Charge interest paid over the life of the loan, plus the origination fee, if any.
Currently, the Annual Percentage Rate (APR) based upon a 15-year repayment period and a 54 month deferment period would be between 12.76% and 13.45%. The repayment example below assumes a $10,000 Educated Borrower® Health Professional Loan.
Origination fees range between 4.00% and 6.00% depending upon your individual credit or the credit of a qualified co-signer. Fees are due at loan closing and are capitalized, which increases the amount borrowed but avoids any out-of-pocket expenses at loan closing.
Click to see current APRs and an example for the student loan rates and fees associated with The Health Professional student loan, please click here (example will open in a new window).
Important Note: Loan terms are subject to change at any time and funds cannot be guaranteed prior to final credit approval and the return of a completed application (including a signed application and promissory note and acceptable supporting documents)