1. How do I know if I should apply for an Academic Private Loan?
2. How do I know if I am eligible for an Academic Private Loan?
3. How do I know if my school is eligible?
4. How much am I allowed to borrow?
5. What are the interest rates and will there be any fees?
6. What is the benefit of seeking a co-borrower?
7. What borrower benefits are available?
8. Why is a credit check necessary?
9. What items on my credit history would prevent me from getting a loan?
10. If I am approved, when will I get my money?
11. When will I start repaying the loan?
12. What type of documentation is required when applying for a loan?

1. How do I know if I should apply for an Academic Private Loan?

We strongly encourage students to maximize their funding under federal programs before considering a private loan. After you have completed the Free Application for Federal Student Aid (FAFSA) and you have received your financial aid award information, you then may want to consider private loans to cover any financial need that was not met with federal funds. You should receive your aid award information from your school in the spring or early in the summer.

2. How do I know if I am eligible for an Academic Private Loan?

To be eligible, you must be:

• An undergraduate, graduate or professional student enrolled at least half-time in a degree-granting program at a college or university that participates in the federal education loan programs
• Making satisfactory academic progress
• The age of majority in your state of permanent residency (18 in most states)
• A U.S. citizen or permanent resident (international students may apply with an eligible co-borrower who is a U.S. citizen or permanent resident)
• Able to meet minimum credit criteria

3. How do I know if my school is eligible?

Your school must be a degree-granting college or university that participates in the federal education loan programs. During the application process, a list of eligible schools will be presented to you.

4. How much am I allowed to borrow?

The minimum and maximum amount you may borrow varies by school, academic program and grade level. We offer generous loan maximums and you will be made aware of these limits at the start of your application process.

5. What are the interest rates and will there be any fees?

Interest rates and any fees associated with these loan programs will vary by school, academic program and grade level. Interest rates are variable and will fluctuate based on changes to the Prime or LIBOR index. Many of our products offer zero fees. Both the product interest rate and fees, if any, will be presented to you during the application process and again with your Truth in Lending disclosure.

6. What is the benefit of seeking a co-borrower?

Applying with a co-borrower could be helpful in reducing your interest rate and saving you money over the life of your loan. If you lack sufficient credit history or currently have limited earnings, utilizing a co-borrower is always a good idea. A co-borrower with a good credit history may positively affect your interest rate and any fees you may pay.

A co-borrower can be anyone you know, although typically parents, grandparents, or legal guardians have more established credit histories that can help lower your interest rate and fees.

7. What borrower benefits are available?

Borrower benefits will vary by school, academic program and grade level. They may include:

• Interest rate reductions to qualified borrowers who make on-time payments
• Interest rate reductions for utilizing auto-debit payments
• Co-borrower release to qualified borrowers who make on-time payments

8. Why is a credit check necessary?

A credit check is used for most consumer loans to determine your ability (and your co-borrower’s ability, if applicable) to repay your debt obligation.

9. What items on my credit history would prevent me from getting a loan?

Below are some items in your credit history that may prevent you from qualifying for a private loan:

• Student loan default
• Delinquent payments on consumer loan account(s)
• Significant judgments, charge-offs, or unpaid tax liens unless payment arrangements have been made
• A bankruptcy
• A low credit score or an insufficient credit history
• Inability to pass a debt-to-income test

Student borrowers with adverse credit history may still be eligible for a private loan, but they must apply with a creditworthy co-borrower.

10. If I am approved, when will I get my money?

Typically, your loan will be funded as early as one business day after the date your completed application, including all required documentation, is approved.

11. When will I start repaying the loan?

Full deferral of principal and interest is available on the majority of private loans. If your loan is fully deferred, then repayment will start 180 days after your graduation date or school separation date.

Repayment terms will vary by school, academic program and grade level. Your repayment terms will be presented to you during the application process and with your Truth in Lending disclosure.

12. What type of documentation is required when applying for a loan?

a) What is acceptable Proof of Income documentation?

• A pay stub dated within thirty days of application signed date (Preferred)
• Signed letter from employer indicating still employed
• Signed copy of the first and second page of prior year Federal tax return
• W-2

• Prior year Statement of Annuity Paid (Form 1099)
• Year-end account brokerage house statement
• Signed copy of the first and second page of prior year Federal tax return

• Signed copy of the first and second page of prior year Federal tax return

• Signed copy of the first and second page of prior year Federal tax return
• Benefits summary statement

• Prior year Statement of Annuity Paid (Form 1099), or
• Signed copy of the first and second page of prior year Federal tax return
• Benefits summary statement

Alimony/Child Support
(Provide one)

Important note: Alimony, child support, or separate maintenance income need not be revealed if you do not wish to have it considered as a basis for repaying this obligation.

• Signed copy of the first and second page of prior year Federal tax return
• Copy of divorce decree, separation or child support agreement specifying the amount and duration of the payments
• Six consecutive months of bank statements with the corresponding deposits clearly identified
• Six consecutive months of cancelled checks
• Affidavit from the co-borrower’s counsel that payments have been received for six consecutive months

Note:
A previous year's tax return is acceptable with proper documents showing an extension for the next year's tax return and proof of payment to the IRS for the estimated tax liability. One extension is valid through August 15th, and the second extension is valid until October 15th. After October 15th the new tax return must be received. E-filed tax returns are acceptable.

b) What is acceptable CIS Documentation?
U.S. Permanent residents and other eligible aliens must submit a copy of the front and back of their current Citizenship and Immigration Services Form I-551 (Resident Alien Card); this form cannot be marked “waived”. Cards that are marked “waived” or that have expired will not be accepted.

If the student borrower does not have a current I-551 form, we will accept a temporary CIS Form I-551, a passport stamped “Temporary 551, or Form I-90 (Application to Replace Alien Registration Card), and a copy of the student’s passport.

Foreign students must submit a copy of one the following:

• Student VISA (type F1 or J1). If the student is already in the U.S., and the expiration date on the student visa has occurred, we require an I-20 with USCIS admission number.
• Copy of a valid passport with photo and Current CIS Form I-20 with USCIS admission number designated with any of the following classifications:
  • F-1 and D/S; J-1 and D/S; M-1 and D/S; or H1B,
  • Public Interest Parolee (PIP)
  • Asylum status granted indefinitely
  • Refugee status granted indefinitely
• Foreign students must also apply with a credit-worthy co-borrower who is a U.S. citizen or permanent resident. Co-borrowers must provide proof of income.