FINANCIAL AID
CONSUMER INFORMATION

(j)  For each type of educational loan, including but not limited to consolidation loans, a covered institution’s preferred lender list shall disclose the following information:

(1)  the interest rate of each loan and whether such interest rate is fixed or variable; and for variable interest rate loans, a statement as to when the interest rate may change, how much the interest rate may increase, whether there is a cap on any change in the interest rate and the annual percentage rate (APR) computed in the manner required under section 107 of the Truth in Lending Act (15 U.S.C. 1606) on the basis of the actual net disbursed amount of the loan;

Information regarding the interest rate for the Education Finance Partners Private Loan is as follows:

• Tied to the 3-Month LIBOR index plus a margin based on the credit profile of each borrower
• The margin ranges from 2.50% - 12.50%
• Is variable
• Adjusted quarterly, January 1, April 1, July 1, October 1. The interest rate is reset based on the 3-Month LIBOR rate published in the Money Rates section of the Wall Street Journal five business days prior to the last day of the previous month.
• Is not capped
• For the second quarter 2008, April 1 through June 30,  The 3-Month LIBOR Index was set at 2.61%
• The APR based on the best case scenario, lowest rate, no fee, 60 months deferment and a 0.25% interest rate discount for ACH auto debit and 240 monthly payments (20 years) is 4.70%
• The APR based on the worst scenario, highest rate, highest fee, no deferment, no ACH discount and 240 monthly payments (20 years) is 16.40%

(2)  any fees associated with each type of loan;

A fee may be assessed depending on the credit worthiness of the borrower (s). The fee may range from 0.00% to 10.00%.

(3)  the repayment terms available for each loan;

The repayment period is 240 months (20 years).

(4)  any additional terms and conditions applied to the loan;

None Applicable.
 
(5) any benefits that may be applied to each loan and if any benefits may apply, an explanation of such benefits that is understandable by the general public, the percentage of borrowers that have benefited from such discount with such lending institution and whether such benefits would still apply if the loan were consolidated;

A 0.25% interest rate reduction is available to borrowers who sign-up to have payments automatically deducted from a checking or savings account. Upon confirmation of enrollment, the borrower will automatically receive the 0.25% discount.

Currently 13% of borrowers choose to utilize this benefit.

If the borrower chooses to consolidate the loan, they must re-enroll in the auto-debit (ACH) program to receive the 0.25% interest rate discount.

(6)  the opportunity for deferment or forbearance in repayment of the loan, including a definition of deferment and forbearance and whether the loan payments can be deferred if the student is in school;

Education Finance Partners offers both deferment and forbearance options.

Full deferment of principal and interest is available to borrowers who are enrolled in school at least half-time, as determined by the school, for up to 54 months and for 6 months after leaving school or dropping below half-time status.

Borrowers may request forbearance during periods of financial hardship. Forbearance may be granted for up to six months per calendar year and up to 12 months over the life of the loan. Requests for forbearance are processed in as little as five days. Military forbearance is also available while on active duty.

Deferment
A period of time during which the borrower, having met certain criteria determined by the lender or loan servicer on behalf of the lender, is not required to make regular monthly payments.

Forbearance
Temporary postponement or reduction of loan payments, based on financial hardship during the repayment period. Forbearance is awarded on a case-by-case basis through the lender, or through the loan servicer on behalf of the lender.

(7)  the definition of loan consolidation and whether there is a penalty for early repayment;

Loan consolidation 
Combining one or more loans into one new loan.

There is no penalty or fee for early repayment.

(8)  examples of a borrower’s estimated monthly payments and the total payment using the interest rate being offered and, if the interest rate offered is variable, the list shall contain examples of estimated monthly payments and the total loan payment utilizing both the initial interest rate and the maximum potential interest rate for loans of five thousand dollars, ten thousand dollars and twenty thousand dollars, for loans taken out for both ten and fifteen years; and

Click here to review the 08-09 RFI Graduate/Professional Alternative Loan Models

(9) the average amount borrowed from the lending institution by students enrolled in such covered institution for the preceding academic year;

$10,730. per borrower for the 2007/08 academic year  
 
(10)  whether such lending institution anticipates selling such loans to another lending institution;

No. Education Finance Partners does not anticipate selling its loans

(9)  late payment penalties, if any;

$25.00 per occurrence  

(12)  whether, and under what conditions, early repayment may be available without penalty and;
 
Anytime without penalty

(13)  the preferred lender list shall contain a statement that students are not limited to, or required, to select any of the listed lending institutions and that the covered institution is required to process the documents required to obtain a loan from any eligible lending institution that the student selects.