We encourage all students to consider using their maximum Subsidized and Unsubsidized Stafford eligibility prior to seeking any alternative loan, as there are many benefits associated with this federal loan program.
Due to the variable rates of Private Loans, the Federal PLUS loan may be a better option because of fixed rates.
There are a variety of banks and private lenders who offer alternative loans for financing education costs for undergraduate students and their families. Eastern Nazarene College has a process to review the loan offerings of most of the major lenders. Based on this review, we have chosen the lenders who offer competitive rates and borrower benefits as well as superior customer service. Be assured that Eastern Nazarene College receives no benefits, financial or other, from these lenders for being chosen to be on our preferred lender list.
You are under no obligation to borrow from one of these lenders. If you would like to borrow from a lender who is not on this list, you can simply select the lender of your choice and apply directly with that lender. The lender will be responsible for getting your loan information to us.
Lenders below are in no particular order and do not reflect any preference by ENC to these lenders.
Private Loan Lenders
| Lender |
Interest Rate*
|
Fees/Benefits
|
Repayment Options
|
Citizens Bank
|
Available until June 30th, 2009
†Variable from 1 month LIBOR +4% to 10.5%
|
0 to 3%
|
Interest only payments while enrolled. Repayment begins 6 months after student graduates
|
Contact Info
800.708.6684
|
www.citizensbank.com/edu
|
Citizens Bank
TruFit Student Loan
|
Available starting July 1,2009
Variable with rates as low as one-month LIBOR plus 3%
|
As low as 0% fees
|
Choice of repayment (immediate, interest only and deferred).
A 0.50% interest rate reduction for automating payments from any eligible Citizens Bank account
|
Contact Info
800.708.6684
|
www.citizensbank.com/edu
|
Sallie Mae-Smart Option Student Loan
|
†Variable from 1 month LIBOR +5.75% to 11.5%
|
0 to 3%
|
Interest only payments while enrolled. Repayment begins 6 months after student graduates
|
Contact Info
888-2-SALLIE
|
Sallie Mae Smart Option
|
Nellie Mae
|
†Variable from 1 month LIBOR +4% to 10.5%
|
0 to 3%
|
Interest only payments while enrolled. Repayment begins 6 months after student graduates
|
Contact Info
888-2-SALLIE
|
www.NellieMae.com
|
Discover
Student
|
Variable interest rates from Prime plus 1% to Prime plus 7.75%, based on credit evaluation
|
No Fees
|
Zero payments until 6 months after graduation or enrollment in school less than half-time
15 year repayment period
|
Contact Info
877.728.3030
|
www.discoverstudentloans.com/
|
Chase
Select
|
Variable from
LIBOR + 4.0% to LIBOR + 9.25%
|
No Fees
|
Borrower can choose
immediate or
deferred repayment
|
Contact Info
800.487.4404
|
www.chaseselectloans.com/
|
MEFA
Undergraduate Loan
|
Immediate Repayment: 7.75% fixed
Deferred Repayment:
8.89% fixed.
|
4.00% origination fee
|
Zero payments until 6 months after graduation or enrollment in school less than half-time
15 year repayment period
|
Contact Info
1.800.449.6332
|
www.mefa.org/
|
*Definitions for Items on Private Loan Lender List
LIBOR is an acronym for the Londer InterBank Offered Rate, and is also known as Eurodollar deposits. It is the average interest rate paid on deposits of US dollars in the London market. It is the interest rate at which lenders can borrow money from other banks. As such, it measures the cost of capital for a bank. Private student loans typically are based on either a 1-month or 3-month average of the LIBOR index. As of July 2010, the 1-month LIBOR rate is 0.35%.
PRIME is the Prime Lending Rate as published in the Wall Street Journal. This is the rate banks charge their most creditworthy customers. It is commonly used in setting the interest rates on credit cards.
The spread between two indices is the difference between the interest rates. As of May 2009, PRIME rate is 3.25%.
†Interest rate on your loan will be variable and will change based on the one-month LIBOR rate. Your interest rate and monthly payment may increase if the one-month LIBOR rate increases During the period in which you are enrolled in school (the "school period") and for 6 months thereafter (the "separation period"), consecutive monthly payments of interest will be due. Thereafter, your monthly payments will consist of both principal and interest.