 | Is information kept confidential?
 | Yes. All information given to a loan
officer is kept highly confidential. Information required on
the loan application is shared only with the loan officer and the
lending institution. |
|
| Why is a K-12 Private Education loan a
better choice than a home mortgage loan?
| A K-12 loan is a non-collateralized loan.
It also has a tax-deductible interest rate that is based on LIBOR,
which is at least
1-1.5% lower than that of a home mortgage. |
|
| What is LIBOR?
| LIBOR stands for the London InterBank
Offered Rate; the average interest rate paid on deposits of U.S.
dollars in the London Market and the financial index used in the
U.S. capital markets. For the current daily rate check The
Wall Street Journal or
www.bloomberg.com.
Over the past 10 years, LIBOR has been a lower and less volatile
rate than the Prime rate. |
|
| Does the loan cover anything more than
the monthly tuition?
| Yes, the loan can include most anything
that is education-related, such as enrollment, ancillary or testing
fees, books, computers, etc. Depending on the school, it may
be possible to also include other out-of-pocket expenses such as an
educational consultant, escort/travel fees, parent workshops, etc. |
|
| How long is the loan process?
| Once we receive the simple loan
application, most applicants will have a pre-approval within 24
hours. The loan disbursement to the school is generally
within seven to twelve business days. |
|
| What else is important to know about the
K-12 education loan?
| K-12 loans are amortized over 20 years,
making monthly payments affordable and easier to fit into a family's
budget. |
| There are no cancellation fees or
pre-payment penalties. |
| Depending on the lending institution,
there is an origination fee of 2% or 5% which is added to the
loan principal and repaid in the regular monthly payments. |
|
