Private Loan Comparison (no co-Borrower)

Recommended Alternative Loans

Chase Select (Lender Code: 503000)

Interest Rate
Rates as low as Prime + 2.00% (for loans approved on or after November 15, 2008).
Students approved with a qualified cosigner may receive a 0.50% interest rate reduction.
A 0.25% interest rate reduction for borrowers who have their monthly payments automatically deducted from a bank account

Credit Score or TIER 1 – Prime+2.00%
2- Prime + 2.50%
3 –Prime + 4.00%
4 – Prime +5.50%
5-Prime +7.00%
6- Prime +8.50 %

Loan Fees Paid by Student None

Student Benefits
Online pre-approval and application, including e-signature.
Loans originated and serviced by Chase.
All Chase-serviced loans, including private loans, are combined into a single bill.
24-hour online access to their loan status information.
Flexible repayment options, including deferring all payments until after graduation with a six-month grace period.
Satisfactory academic progress is not required.
Students can be enrolled full time, half time and less than half time.
Can be used for previous school balances less than 12 months old.
Rates and other product terms and features are subject to change

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 20 years to repay loan amounts

Deferment Options Repayment can begin six months after graduation or once the student ceases to be enrolled

Sallie Mae Education Trust (Lender Code: 802218)

Interest Rate
*London Interbank Offered Rate (LIBOR)
* One eligible individual: 1-Month Libor + 4.5% to 1-Month Libor + 12.75%
*Two eligible individuals: 1-Month Libor + 4.5% to 1-Month Libor + 11.75%
*Zero disbursement and repayment fees
* A 0.50 percentage point interest rate reduction with automatic-debit

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
* No minimum income requirement
*Applying with a creditworthy cosigner may help the applicant qualify
* Cosigner release option available after the first 24 consecutive on-time payments of principal and interest
* No payments required while in school or in the grace period
* 6-month grace period
*Combined billing for borrowers with multiple Sallie Mae-serviced student loans
* 24/7 online account management
* Sallie Mae’s Upromise Loan LinkSM service can help students and families pay down student loans

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 7.99%

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. 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. 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

Under What Conditions can Benefits be Reinstated?
1. None.
2. None.
3. 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

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	Rates as low as Prime + 2.00% (for loans approved on or after November 15, 2008). Students approved with a qualified cosigner may receive a 0.50% interest rate reduction. A 0.25% interest rate reduction for borrowers who have their monthly payments automatically deducted from a bank account
Credit Score or TIER	1 – Prime+2.00% 2- Prime + 2.50% 3 –Prime + 4.00% 4 – Prime +5.50% 5-Prime +7.00% 6- Prime +8.50 %
Loan Fees Paid by Student	None
Student Benefits	Online pre-approval and application, including e-signature. Loans originated and serviced by Chase. All Chase-serviced loans, including private loans, are combined into a single bill. 24-hour online access to their loan status information. Flexible repayment options, including deferring all payments until after graduation with a six-month grace period. Satisfactory academic progress is not required. Students can be enrolled full time, half time and less than half time. Can be used for previous school balances less than 12 months old. Rates and other product terms and features are subject to change
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 20 years to repay loan amounts
Deferment Options	Repayment can begin six months after graduation or once the student ceases to be enrolled

Sallie Mae Education Trust (Lender Code: 802218)
Interest Rate	London Interbank Offered Rate (LIBOR) One eligible individual: 1-Month Libor + 4.5% to 1-Month Libor + 12.75% Two eligible individuals: 1-Month Libor + 4.5% to 1-Month Libor + 11.75% Zero disbursement and repayment fees * A 0.50 percentage point interest rate reduction with automatic-debit
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	* No minimum income requirement Applying with a creditworthy cosigner may help the applicant qualify Cosigner release option available after the first 24 consecutive on-time payments of principal and interest * No payments required while in school or in the grace period * 6-month grace period Combined billing for borrowers with multiple Sallie Mae-serviced student loans 24/7 online account management * Sallie Mae’s Upromise Loan LinkSM service can help students and families pay down student loans
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 7.99%
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. 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. 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
Under What Conditions can Benefits be Reinstated?	1. None. 2. None. 3. 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

*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.