Private Loan Comparison (co-Borrower)

Recommended Alternative Loans

Chase Select (Lender Code: 503000)

Interest Rate Prime-1.0
Prime -0.50
Prime+1.5%
Prime+2.50
Prime+4.00
Prime+5.50

Credit Score or TIER 1
2
3
4
5
6

Loan Fees Paid by Student None

Student Benefits 0.25% ACH

Condition Required to Achieve Benefit Auto Debit from bank Account

Under What Conditions are Benefits Lost? none

Under What Conditions can Benefits be Reinstated? none

Loan Term up to 25 years

Deferment Options in school; 6 month Grace Period; up to 10.5 years from first disbursement

Sallie Mae Education Trust (Lender Code: 802218)

Interest Rate Both student borrower and cosigner are credit approved 1-Month LIBOR + 2.5% to 1-Month LIBOR + 8.5%

Credit Score or TIER Students can borrow based on their own credit history (no minimum income required). As with other lenders, Sallie Mae’s credit criteria are proprietary. In general, students must have sufficiently established good credit to be approved on their own. Student borrowers have the option of applying with a creditworthy cosigner. In AY 2008-2009, Sallie Mae will use a sliding scale model that reflects an individual borrower’s creditworthiness.

Loan Fees Paid by Student The Signature Student Loan program does not have any disbursement or repayment fees. A late fee of $5.00 or 5% of the installment, whichever is greater, is assessed when a payment has not been received within 15 days of the payment due date.

Student Benefits Signature Student Loan 2008-2009 Borrower Benefit:
Direct Repay – Borrowers who authorize the automatic debit of funds from their checking or savings accounts to cover their monthly education loan payments will receive a 0.50 percentage point interest rate reduction on their eligible Signature Student Loans. This benefit remains available during active repayment for as long as the borrower’s monthly payment is successfully deducted from the borrower’s account.

Condition Required to Achieve Benefit Signature Student Loan 2008-2009 Borrower Benefit:
Direct Repay – Borrowers who authorize the automatic debit of funds from their checking or savings accounts to cover their monthly education loan payments will receive a 0.50 percentage point interest rate reduction on their eligible Signature Student Loans. This benefit remains available during active repayment for as long as the borrower’s monthly payment is successfully deducted from the borrower’s account.

Under What Conditions are Benefits Lost? The auto-debit benefit remains available during active repayment for as long as the borrower’s monthly payment is successfully deducted from the borrower’s account. Once a borrower consolidates, the benefit is discontinued.

Under What Conditions can Benefits be Reinstated? If a borrower ceases to earn the automatic debit benefit solely because he or she un-enrolls in the auto-debit program, the borrower can earn the benefit again by re-enrolling in the automatic debit program.

Loan Term The Signature Student Loan standard repayment term is up to 15 years with an option to increase repayment time up to 30 years, based on the student’s loan balance.

Deferment Options In-school deferment: Students are not required to make payments while they remain enrolled in school at least half-time. Students who experience financial difficulty or return to school may postpone payments with forbearance. Students must complete a form to postpone payments. Financial Difficulty – Payments may be postponed in increments of up to six months and cannot exceed 24 months total. Interest will capitalize at the end of the forbearance period. A $50 fee per loan, with a cap of $150, may be assessed per forbearance request. Return to School – An in-school forbearance is processed only for the enrollment dates and cannot exceed 48 months total. Interest will capitalize every six months. There is no fee for this type of forbearance.

Student Funding Group, LLC (Lender Code: 834312)

Interest Rate From Prime minus .50% to Prime plus 6.99%

Credit Score or TIER N/A

Loan Fees Paid by Student From 0% to 9%

Student Benefits
1. Borrower will receive a 0.5% interest rate reduction for automatic payments.
2. Borrower will receive a 0.5% reduction after the first 48 months of consecutive on-time payments.
3. A cosigner may be released from the loan after the borrower makes the first 36 consecutive on-time payments of the required amount.
4. Borrowers may prepay the principal on their loan without penalty at any time.

Condition Required to Achieve Benefit
1. Borrower must make payments using auto-debit method.
2. Borrower must make 48 months of consecutive on-time payments.
3. Borrower must make the first 36 consecutive on-time payments of the required amount.
4. None

Under What Conditions are Benefits Lost?
1. The benefit will be discontinued if the servicer receives three rejections for automatic transfer of funds from the account in any single 12-month period.
2. The rate reduction will be canceled and the interest rate will revert to the original rate if a late payment is posted 1 day or more after the due date.
3. N/A
4. N/A

Under What Conditions can Benefits be Reinstated?
1. None.
2. None.
3. N/A
4. N/A

Loan Term Up to 25 years, depending on loan balance

Deferment Options Our borrowers enjoy a repayment grace period of up to 12 months after graduation, or 6 months after the student is no longer enrolled at least half-time. Interest continues to accrue during this grace period. Repayment must start immediately following the applicable grace period. Borrowers will be eligible for deferment options at the lender’s discretion. An in-school deferment will be offered to students returning to at least half-time status at a department of education approved school. Maximum deferment time is 3 years in no more than 6-month inc

Wachovia Graduate Loan

Interest Rate As low as the one-month Prime Rate minus 0.50% and as high as Prime plus 4.0%.

Credit Score or TIER Interest rates are disclosed to the borrower as part of the application process, prior to the borrower accepting the loan. Rates are disclosed again at disbursement and repayment. The FICO information we use for determining credit on our private loans is proprietary information and we are not able to share the specifics outside of Wachovia. But the FICO cut-off is well below the average FICO score in the U.S.

There is no minimum income requirement or debt-to- income consideration for graduate students. Adverse credit for the purposes of these loan products includes a bankruptcy or foreclosure filed within the past 60 months, unpaid judgment, charge-offs, collections or repossessions with an aggregate amount greater than $2,500 within the last 24 months, a mortgage or installment loan more than 30 days past due, or a student loan default.

Loan Fees Paid by Student There are ZERO fees for Wachovia private loan products.

Student Benefits An interest rate reduction of 0.50% with auto-debit payments

Condition Required to Achieve Benefit Student must be enrolled in autodebit.

Under What Conditions are Benefits Lost? If student is not enrolled in autodebit, they will not receive the 0.50% interest rate reduction. If borrowers have more than two NSF events in one year, they may no longer be eligible to participate in auto debit and the reduced interest rate is lost.

Under What Conditions can Benefits be Reinstated? Once a borrower is determined ineligible for the auto-debit incentive, the incentive cannot be regained.

Loan Term Must repay within 25 years

Deferment Options 10-year in-school deferment

PNC Bank Solution Loan for Undergraduates, Graduates and Continuing Education Students (Lender Code: 809921)

Interest Rate 3-Month LIBOR + 2.25% to 8.00%

Credit Score or TIER Annual Percentage Rate and Loan Fees will be disclosed during application process.

Loan Fees Paid by Student 0% - 6%

Student Benefits
1 .0.25% interest rate reduction for automatic payments for as long as payments are automatically deducted.

2. Co-signer release option available after 48 months.

3. Student may borrow from $1,000 up to the cost of education, less any financial aid received. Continuing Education borrowers may borrow up to $20,000 annually.

Condition Required to Achieve Benefit
1. For authorizing auto-debit from ANY bank account.

2. 48 consecutive, on-time payments and successful credit approval.

Under What Conditions are Benefits Lost? 1. Insufficient Funds or Withdrawal from the ACH program.

Under What Conditions can Benefits be Reinstated? 1. Re-enrollment in the ACH program.

Loan Term Up to 25 years

Deferment Options
1. Defer payments until 6 months after student graduates or leaves school. Armed Forces Deferment (up to 36 months).

2. Hardship Forbearance Available.

Unlike Federal Stafford and Parent PLUS Loans, interest rates and origination fees on private educational loans are tiered based on your credit score. Students with the highest credit scores will receive the lowest interest rates and fees. We have displayed ranges for interest rates and fees in the chart. Note: It may be beneficial to request a free credit report at http://www.annualcreditreport.com/ and resolve any issues before applying for an alternative loan.

Unfortunately, UArts has no way of advising you up front under which lender tier you would be approved. Applicants have the option of applying for multiple loans, to ascertain which tier they would place for different lenders. It is important to note that the number of credit checks generated by such applications may adversely impact an applicant’s credit score, unless done within a 14 day period.

Alternative loan interest rates are variable, and are tied either to Prime Lending Rate or LIBOR. (For information on these, please visit http://www.finaid.org/loans/prime_libor.phtml). These interest rates generally change quarterly, with the interest rate set as many as 30 days prior to the start of the quarter.

As with Stafford and Parent PLUS Loan products, lenders may offer automatic or conditional benefits with alternative loans. If benefits factor into your decision, contact your prospective lender to make sure you understand all conditions for obtaining and/or maintaining those benefits.

Also displayed within this list are specific provisions that may be important to your individual situation. These include provisions for students enrolled less than half time, using these loans to cover balances for prior academic years, aggregate borrowing limits, maximum repayment length, and information on cosigners. Students not able to borrow through their own credit or those with poor credit may receive a more favorable rate by using a cosigner. In most cases, the lender will release the cosigner from his or her repayment obligation after a certain number of on-time payments, provided you have established an appropriate level of credit in the meantime.

You may apply for an alternative loan through the websites of the lenders listed above. If you prefer to select a lender not on the list, visit your lender's website for application procedures.

How Lenders Were Ranked

The University of the Arts submitted a request for information to lenders who have established reputations in the student lending business and those with whom current and past UArts students have had student lending relationships. The chart above represents the results of this lender survey, along with follow up requests for changes in terms and benefits. All lenders are listed alphabetically.

Please note you are not required to use any of the listed lenders and will not be penalized or disadvantaged if you choose to borrow from another lender. Be sure to compare the fees and terms of all student loan products to determine which are best suited to your needs. If you choose a lender not on this list, please contact your lender for application procedures.

Disclaimer: The information presented here regarding each lender’s alternative loan is based on responses provided by the lenders to the UArts request for information, as of May 15, 2008. Carefully read the disclosure statement provided by your lender to confirm that the lender’s Benefits and terms are consistent with the information they provided UArts, and to verify that the Benefits and terms have not changed.

Chase Select (Lender Code: 503000)
Interest Rate	Prime-1.0 Prime -0.50 Prime+1.5% Prime+2.50 Prime+4.00 Prime+5.50
Credit Score or TIER	1 2 3 4 5 6
Loan Fees Paid by Student	None
Student Benefits	0.25% ACH
Condition Required to Achieve Benefit	Auto Debit from bank Account
Under What Conditions are Benefits Lost?	none
Under What Conditions can Benefits be Reinstated?	none
Loan Term	up to 25 years
Deferment Options	in school; 6 month Grace Period; up to 10.5 years from first disbursement

Sallie Mae Education Trust (Lender Code: 802218)
Interest Rate	Both student borrower and cosigner are credit approved 1-Month LIBOR + 2.5% to 1-Month LIBOR + 8.5%
Credit Score or TIER	Students can borrow based on their own credit history (no minimum income required). As with other lenders, Sallie Mae’s credit criteria are proprietary. In general, students must have sufficiently established good credit to be approved on their own. Student borrowers have the option of applying with a creditworthy cosigner. In AY 2008-2009, Sallie Mae will use a sliding scale model that reflects an individual borrower’s creditworthiness.
Loan Fees Paid by Student	The Signature Student Loan program does not have any disbursement or repayment fees. A late fee of $5.00 or 5% of the installment, whichever is greater, is assessed when a payment has not been received within 15 days of the payment due date.
Student Benefits	Signature Student Loan 2008-2009 Borrower Benefit: Direct Repay – Borrowers who authorize the automatic debit of funds from their checking or savings accounts to cover their monthly education loan payments will receive a 0.50 percentage point interest rate reduction on their eligible Signature Student Loans. This benefit remains available during active repayment for as long as the borrower’s monthly payment is successfully deducted from the borrower’s account.
Condition Required to Achieve Benefit	Signature Student Loan 2008-2009 Borrower Benefit: Direct Repay – Borrowers who authorize the automatic debit of funds from their checking or savings accounts to cover their monthly education loan payments will receive a 0.50 percentage point interest rate reduction on their eligible Signature Student Loans. This benefit remains available during active repayment for as long as the borrower’s monthly payment is successfully deducted from the borrower’s account.
Under What Conditions are Benefits Lost?	The auto-debit benefit remains available during active repayment for as long as the borrower’s monthly payment is successfully deducted from the borrower’s account. Once a borrower consolidates, the benefit is discontinued.
Under What Conditions can Benefits be Reinstated?	If a borrower ceases to earn the automatic debit benefit solely because he or she un-enrolls in the auto-debit program, the borrower can earn the benefit again by re-enrolling in the automatic debit program.
Loan Term	The Signature Student Loan standard repayment term is up to 15 years with an option to increase repayment time up to 30 years, based on the student’s loan balance.
Deferment Options	In-school deferment: Students are not required to make payments while they remain enrolled in school at least half-time. Students who experience financial difficulty or return to school may postpone payments with forbearance. Students must complete a form to postpone payments. Financial Difficulty – Payments may be postponed in increments of up to six months and cannot exceed 24 months total. Interest will capitalize at the end of the forbearance period. A $50 fee per loan, with a cap of $150, may be assessed per forbearance request. Return to School – An in-school forbearance is processed only for the enrollment dates and cannot exceed 48 months total. Interest will capitalize every six months. There is no fee for this type of forbearance.

Student Funding Group, LLC (Lender Code: 834312)
Interest Rate	From Prime minus .50% to Prime plus 6.99%
Credit Score or TIER	N/A
Loan Fees Paid by Student	From 0% to 9%
Student Benefits	1. Borrower will receive a 0.5% interest rate reduction for automatic payments. 2. Borrower will receive a 0.5% reduction after the first 48 months of consecutive on-time payments. 3. A cosigner may be released from the loan after the borrower makes the first 36 consecutive on-time payments of the required amount. 4. Borrowers may prepay the principal on their loan without penalty at any time.
Condition Required to Achieve Benefit	1. Borrower must make payments using auto-debit method. 2. Borrower must make 48 months of consecutive on-time payments. 3. Borrower must make the first 36 consecutive on-time payments of the required amount. 4. None
Under What Conditions are Benefits Lost?	1. The benefit will be discontinued if the servicer receives three rejections for automatic transfer of funds from the account in any single 12-month period. 2. The rate reduction will be canceled and the interest rate will revert to the original rate if a late payment is posted 1 day or more after the due date. 3. N/A 4. N/A
Under What Conditions can Benefits be Reinstated?	1. None. 2. None. 3. N/A 4. N/A
Loan Term	Up to 25 years, depending on loan balance
Deferment Options	Our borrowers enjoy a repayment grace period of up to 12 months after graduation, or 6 months after the student is no longer enrolled at least half-time. Interest continues to accrue during this grace period. Repayment must start immediately following the applicable grace period. Borrowers will be eligible for deferment options at the lender’s discretion. An in-school deferment will be offered to students returning to at least half-time status at a department of education approved school. Maximum deferment time is 3 years in no more than 6-month inc

Wachovia Graduate Loan
Interest Rate	As low as the one-month Prime Rate minus 0.50% and as high as Prime plus 4.0%.
Credit Score or TIER	Interest rates are disclosed to the borrower as part of the application process, prior to the borrower accepting the loan. Rates are disclosed again at disbursement and repayment. The FICO information we use for determining credit on our private loans is proprietary information and we are not able to share the specifics outside of Wachovia. But the FICO cut-off is well below the average FICO score in the U.S. There is no minimum income requirement or debt-to- income consideration for graduate students. Adverse credit for the purposes of these loan products includes a bankruptcy or foreclosure filed within the past 60 months, unpaid judgment, charge-offs, collections or repossessions with an aggregate amount greater than $2,500 within the last 24 months, a mortgage or installment loan more than 30 days past due, or a student loan default.
Loan Fees Paid by Student	There are ZERO fees for Wachovia private loan products.
Student Benefits	An interest rate reduction of 0.50% with auto-debit payments
Condition Required to Achieve Benefit	Student must be enrolled in autodebit.
Under What Conditions are Benefits Lost?	If student is not enrolled in autodebit, they will not receive the 0.50% interest rate reduction. If borrowers have more than two NSF events in one year, they may no longer be eligible to participate in auto debit and the reduced interest rate is lost.
Under What Conditions can Benefits be Reinstated?	Once a borrower is determined ineligible for the auto-debit incentive, the incentive cannot be regained.
Loan Term	Must repay within 25 years
Deferment Options	10-year in-school deferment

*PNC Bank Solution Loan for Undergraduates, Graduates and Continuing Education Students* (Lender Code: 809921)**
Interest Rate	3-Month LIBOR + 2.25% to 8.00%
Credit Score or TIER	Annual Percentage Rate and Loan Fees will be disclosed during application process.
Loan Fees Paid by Student	0% - 6%
Student Benefits	1 .0.25% interest rate reduction for automatic payments for as long as payments are automatically deducted. 2. Co-signer release option available after 48 months. 3. Student may borrow from $1,000 up to the cost of education, less any financial aid received. Continuing Education borrowers may borrow up to $20,000 annually.
Condition Required to Achieve Benefit	1. For authorizing auto-debit from ANY bank account. 2. 48 consecutive, on-time payments and successful credit approval.
Under What Conditions are Benefits Lost?	1. Insufficient Funds or Withdrawal from the ACH program.
Under What Conditions can Benefits be Reinstated?	1. Re-enrollment in the ACH program.
Loan Term	Up to 25 years
Deferment Options	1. Defer payments until 6 months after student graduates or leaves school. Armed Forces Deferment (up to 36 months). 2. Hardship Forbearance Available.