Scott Schools Private Student Loan Program
Please note: Iowa Student Loan has a contractual relationship with Scott Schools Credit Union wherein Iowa Student Loan performs certain private student loan (private loan) services for Scott Schools Credit Union.
To qualify for a Scott Schools Private Student Loan, you must:
- Be a member of Scott Schools Credit Union. Become a member. Note: Once Scott Schools Credit Union receives your loan application, you have 30 days to finalize your membership with the credit union.a
Loan Options
Scott Schools Credit Union offers two types of private student loans.
Cosigner Loan (Option 1)
To qualify for this supplemental private student loan (option 1), you or your cosigner(s) must have:
- Monthly payments for approved credit (mortgages, car loans, credit cards and other forms of credit, including the loan for which the student has submitted an application) that do not exceed 40% of gross monthly income (if mortgage is not included, debt-to-income ratio cannot exceed 25%). All student loan debt will be treated as though it is in repayment.
- An annual income of at least $15,000.
- Continuous employment over the last two years. (This requirement may be waived for retirees, disabled persons or those receiving a verified income.)
- No more than two accounts reporting 30-day delinquencies during the previous two years.
- No delinquencies of 60 days or more during the previous two years.
- No charge-offs, repossessions, collection accounts, judgments, foreclosures or garnishments by credit providers.
- No previous bankruptcies.
- Not defaulted on any student loan.
No-Cosigner Loan (Option 2)
If you are unable to secure a cosigner and you do not meet the above requirements on your own, you may qualify for this supplemental private student loan (option 2), if you have:
- No more than two accounts reporting 30-day delinquencies during the previous two years.
- No delinquencies of 60 days or more during the previous two years.
- No charge-offs, repossessions, collection accounts, judgments, foreclosures or garnishments by credit providers.
- No previous bankruptcies.
- Not defaulted on any student loan.
Please note that the list of criteria above may not be exhaustive. Scott Schools Credit Union may require you or your cosigner(s) to meet additional criteria in order to qualify for a loan. Scott Schools Credit Union reserves the right to change the list of criteria in any way from time to time.
Interest Rates
The following chart and example detail the interest rates and fees for the Scott Schools Private Student Loan.
| Loan |
Cosigner (Option 1) |
No-Cosigner (Option 2) |
| Cosigners |
1 or 2
Note: Applicants who are creditworthy (meet the underwriting and credit criteria) are not required to provide cosigner(s). |
None |
| Origination Fee |
0% |
7% |
| Interest Rate1 |
Variable rate1
1.00% + prime rate index (varies quarterly); minimum interest rate of 5.50%2 |
Variable rate1
2.50% + prime rate index (varies quarterly); minimum interest rate of 7.00%2 |
| Capitalization of Interest |
Annually and at the end of any authorized period of deferment |
| Current Interest Rate1 |
5.50% |
7.00% |
| Loan Amounts |
Minimum: $500
Maximum Annual: Cost of attendance minus other aid
Aggregate: $40,000 |
| Repayment Term |
20 years3 |
| Payments Required While Enrolled? |
No, but making payments that at least cover accrued interest prevents increases to the loan balance. |
| Grace Period |
6 months |
This example shows the monthly payments for a $10,000 Scott Schools Private Student Loan.
| Example on a $10,000 loan |
Cosigner (Option 1) |
No-Cosigner (Option 2) |
| Annual Percentage Rate4 |
5.46% |
7.54% |
| Finance Charge4 |
$10,738 |
$15,525 |
| Monthly Payment4 |
$86 |
$103 |
1 The rate is subject to increase after consummation. The prime rate index is defined as the U.S. Prime Rate published by the Wall Street Journal on the 10th calendar day prior to month end March, June, September and December (or the preceding business day if the 10th calendar day is not a business day) or 4.50%; whichever is greater. The prime index for the quarter Jan. 1 – March 31, 2012, is 4.50%.
2 The rate will not exceed 21.00%.
3 A loan of $1,000 or less has a maximum repayment term of 37 months.
4 Annual percentage rate (APR), finance charge and monthly payment examples are based on borrowing $10,000. Option 1 is based on deferring interest and principal while maintaining a constant interest rate on a variable rate loan of 5.50% during the 51-month interim and 240-month repayment periods. Option 2 is based on deferring interest and principal while maintaining a constant interest rate on a variable rate loan of 7.00% during the 51-month interim and 240-month repayment periods. APR examples are based on quarterly interest rates Jan. 1 – March 31, 2012.
|
