Rate Information

So that you can make an informed decision prior to application, we are pleased to provide the following rate information regarding our private education line of credit. Please note the following is a summary and the documents and disclosures you receive will provide your actual interest rate.

Index + Margin = Your Rate

Undergraduate: The rates for our Undergraduate private education line of credit are determined by using the Prime index plus a margin.

As of April 1st, 2013, the Prime rate used will be 3.25% through June 30th, 2013. *

The margin for the undergraduate line of credit currently ranges between 2.25% and 5.25% depending on the borrower/co-borrower's credit score at the time of application.** This margin is added to the index rate to determine the interest rate (subject to the floor rate.) Please note that the index rate* may adjust on a quarterly basis, which would then affect the interest rate for your line of credit.

There is a 'floor' rate for the line of credit; meaning that your interest rate will never fall below the stated floor rate as disclosed upon approval. The 'floor' rate for the undergraduate private education line of credit is currently 5.00%, is subject to change at any time, and will be rounded up to the nearest 1/8th% in servicing.

Graduate Business: The rates for our Graduate Business private education line of credit are determined by using the Prime index plus a margin.

As of April 1st, 2013, the Prime rate used will be 3.25% through June 30th, 2013. *

The margin for the graduate business line of credit currently ranges between 1.75% and 4.75% depending on the borrower/co-borrower's credit score at the time of application.** This margin is added to the index rate to determine the interest rate (subject to the floor rate.) Please note that the index rate* may adjust on a quarterly basis, which would then affect the interest rate for your line of credit.

There is a 'floor' rate for the line of credit; meaning that your interest rate will never fall below the stated floor rate as disclosed upon approval. The 'floor' rate for the undergraduate private education line of credit is currently 5.00%, is subject to change at any time, and will be rounded up to the nearest 1/8th% in servicing.

We are very proud of the value we are creating for our members with our private education line of credit, as compared to the typical private or 'alternative' student loans found in today's market. As always, we encourage you to shop around and compare private loan product terms and rates. Remember, the Student Choice program has no origination fees, and there is no obligation to take the line of credit once you apply and have been approved.

*All loans subject to approval. Interest rate is variable and may fluctuate based on changes to the index. The index (as published in The Wall Street Journal) is chosen by your credit union and is adjusted quarterly. You will be given at least forty-five (45) days written notice of any quarterly adjustment. Once your line of credit is disbursed, the current Index + margin is used for the purpose of assessing and tracking accruing interest. Please note that the interest rate, and any subsequent rate change, applies to the entire balance on the line of credit.

**Star One Credit Union reserves the right to change rates for new applications at any time and without notice.