The US Bank is one of a number of providers of private student loans. Students who require additional funding to pay their way through college should comparison shop between private lenders if there is no other way to meet costs after scholarships, grants and federal loan options have been utilized. As competition grows in the market of private student loans it is imperative to compare products, bearing in mind that a loan can be carried through college and for up to an additional 15 years.
There are both variable and fixed rate student loans on offer from US bank. The variable rate loan which is based on the prime rate is advertised as the no fee loan. This means that the loan does not add an origination fee or prepayment penalty fees. Thus the monthly repayment amount is based on the interest rate alone.
Variable rates can go up or down based on the movement of the prime rate. Interest rates on the no fee loan can be as low as 3.39% ARP, ranging up to 10.22% APR. Rates are assigned based on credit worthiness, often something that students have not yet acquired in their own right. Unless a student has already established an excellent credit history then a co-signer will be required to stand as guarantor for the loan. The interest rate assigned will be dependent on the credit history of the co-signer as well as that of the student.
Co-signers are equally responsible for the loan being repaid in a timely fashion and their credit rating can be negatively affected if the student mismanages the loan. US Bank has options for co-signer release but the loan information does not disclose what they are so this should be inquired about at before a commitment is made to the loan. Some lenders are now offering co-signer release after 24 months of consecutive payments.
An interest rate reduction of 0.50% is available to students who sign up with US Bank Autopay. Loan repayments begin six months after college graduation and students have the option to make monthly interest payments whilst in college. If this is an affordable option it is recommended to do so to reduce the overall amount of interest repaid over the term of the loan.
Students that prefer the certainty of a fixed rate loan, where the payments remain the same throughout the term of the loan, can consider the US Bank fixed rate private student loan. Although initially more expensive due to a higher interest rate plus reserve fees of between 2% – 9%, it is could work out cheaper in the long term if interest rates rise considerably from their current level.