My last post on Sallie Mae's recent increase in interest rates on their private loans got me thinking, I wonder what the other lenders are charging on their private loans. I turn to the SLA Private Loan Options, which lists the ten lenders that showed up most frequently based on an SLA analysis of over 700 school financial aid websites. We update the information on this chart based on pricing checks that we complete regularly through numerous calls to customer service (numerous since the reps. often contradict one another by providing differing rates) as well as website checks.
Since over 50% of the blog's subscribers are employees of student lending organizations, I imagine that I will be notified quickly if the data below does not match their expectations. I will update the information, if necessary, but be aware that SLA has made best efforts to accurately collect the information posted below (list sorted based on combination of maximum interest rate, spread between minimum and maximum interest rates and maximum fees):
| Lender | Description | Index | Min | Max | Fees | |
| Discover | Prime - 0.5% to 4.75% | 5.00% | 4.50% | 9.75% | None | |
| U.S. Bank | Prime + 0% to 4.95% | 5.00% | 5.00% | 9.95% | None | |
| Wells Fargo | Prime + 0% to 6.99% | 5.00% | 5.00% | 11.99% | None | |
| Chase | Prime - 1% to 8.0% (co-signer) | 5.00% | 4.00% | 13.00% | None | |
| SunTrust Bank | LIBOR + 2.5% to 8.0% | 2.95% | 5.45% | 10.95% | Up to 4% | |
| Citibank | Prime - 0.5% to 6.75% | 5.00% | 4.50% | 11.75% | Up to 5% | |
| PNC Bank | LIBOR + 2.25% to 8.00% | 3.38% | 5.63% | 11.38% | Up to 8% | |
| Edamerica | LIBOR + 5.5% to 8.0% | 3.38% | 8.88% | 11.38% | 4% - 7% | |
| Citizen's Bank | LIBOR + 2.5% to 9.5% | 3.38% | 5.88% | 12.88% | Up to 3% | |
| Sallie Mae | LIBOR + 4.0% to 14.0% | 3.38% | 7.38% | 17.38% | Up to 6% |
Note: Prime Rate loans will be reduced by at least 0.5% in November as rates that were reduced in early October will be reflected in November rates. Some believe that Federal Reserve will cut rates again this week following their meeting on October 29th which would lower cost of Prime-based loans further. LIBOR index based on 1 month LIBOR rate on October 24, 2008, except for SunTrust which listed index on their website as 2.95%. Fees include origination and repayment fees ONLY. Lenders may charge other miscellaneous fees.
Important: The list above does not include information about approval rates and borrower benefits, both of which should be considered when evaluating private lenders.
Good info. Same comments from before should apply here.
See:
http://studentlendinganalytics.typepad.com/student_lending_analytics/2008/10/looking-for-a-student-loan.html#comments
Posted by: Scott Patterson | October 27, 2008 at 09:24 AM