Effective November 22, 2008, U.S. Bank has raised their interest rates on their No Fee Education Loan, a private loan product, from 195 basis points to 400 basis points dependent on loan tier. Here is a summary of their current and previous rates:
|(as of 11/22/08)|
|Tier 1||Prime + 1.95%||Prime + 0.00%|
|Tier 2||Prime + 4.95%||Prime + 2.95%|
|Tier 3||Prime + 8.95%||Prime + 4.95%|
U.S. Bank adjusts their interest rate index (Prime Rate) on a monthly basis. For the month of November, the Prime Rate index is 4.5% so interest rate ranges are 6.45% to 13.45% for their No Fee Education Loan. U.S. Bank's price increase follows similar moves by Sallie Mae, Chase and Citibank made within the past month.