U.S. Bank has lowered the interest rate ranges on their private student loans effective as of November 1, 2010. The new range of interest rates offered by U.S. Bank now stands at 3.45% to 10.95%, compared to their previous range of 4.20% to 12.20%. As a result of this change, SLA has upgraded the rating on the U.S. Bank product to 3 1/2 stars. U.S. Bank's last pricing change occured in April when they lowered their minimum rate from 5.20% to 4.20% while leaving their maximum rate unchanged.
Here are the details provided in a recent email:
Effective November 1, 2010, interest rate tiers are as follows1:
• Prime + .20% (3.39% APR)1
• Prime + 1.95% (5.05% APR)1
• Prime + 3.75% (6.71% APR)1
• Prime + 7.70% (10.21% APR)1
----------------------------------------------------------------------------------
1. Subject to normal credit approval. Loan approval subject to program guidelines. APR may increase or decrease after consummation. Consummation occurs upon disbursement of loan proceeds. The Variable Rate shall be equal to the highest Prime Rate as published in The Wall Street Journal in the Money Rates section plus a margin of .20% to 7.70%, rounded to the nearest one-tenth of one percent (0.10%). The Variable Rate can change, and will be effective for the first day of any calendar month for a change in the Current Index that took place on the 15th day of the previous month. This interest rate is effective as of 11/01/2010, and assumes a Prime Rate value of 3.25%. The interest rate is variable and can therefore increase and/or decrease over the life of the loan.
Comments