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) | ||
Current | Previous | |
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.
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