Our Loan Rates
While most private student lenders require you to apply before you can see a rate, your credit union wants to be as transparent as possible so that you have a better idea before applying if this loan makes sense for your needs.
1-month LIBOR + Margin = Your Rate
Affinity Plus Federal Credit Union's private student loan rates* are determined by using the 1-month LIBOR market index plus a margin. As of July 1, 2010, the 1-month LIBOR index rate used will be 0.35% through September 30th.
The margin rate currently ranges between 2.85% and 7.45% depending on the borrower/co-borrower's credit score at the time of application. The 'floor' rate for the loan will be 3.50%, meaning that your interest rate will never fall below this 'floor' rate.
For example, if the index is 1% and your quoted margin is 4.0%, then your rate will be the higher of 5% or the stated rate floor. It is important to understand that the index rate* will reset quarterly.
We're very proud of the value we are creating for our members with this loan, 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 our private loan product terms and rates to other lenders. Remember, our loans have zero origination fees, are structured as a line of credit to help you through multiple semesters, and there is no obligation to take the loan once you apply and have been approved.
Don't forget to try our loan comparison calculator to see just how much a lower rate & zero fee loan can save you over the life of the loan.
* The index rate is variable and will adjust quarterly (January, April, July, October) on the first of the month using the 1-month LIBOR Rate as published in the Money section of the Wall Street Journal on the first business day of the preceding month. Once your draw request is disbursed, we will use the current 1-month LIBOR + Margin for the purpose of assessing and tracking accruing interest. While the margin will never change on your line of credit, the 1-month LIBOR index is a variable rate that can fluctuate through the life of the loan. Please note that your interest rate, and any subsequent rate change, applies to the entire balance on your line of credit.
All rates listed above are as of July 1, 2010. Affinity Plus Federal Credit Union reserves the right to change rates for new applications at any time and without notice.
