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American State Bank Private Student Loan Program

Please note: Aspire Servicing Center has a contractual relationship with American State Bank wherein Aspire Servicing Center performs certain private student loan (private loan) services for American State Bank.

To qualify for an American State Bank Private Student Loan, you must:

  • Be a current customer of American State Bank, or be a student at Dordt College or Northwestern College in Iowa.

Loan Options

American State Bank 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, rent, 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 a mortgage or rent 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 $25,000.
  • 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, garnishments by credit providers or tax liens.
  • No previous bankruptcies.
  • Not defaulted on any private or government 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:

  • Are at grade level 2 or above for the term(s) you are requesting funds.
  • Have no more than two accounts reporting 30-day delinquencies during the previous two years.
  • Have no delinquencies of 60 days or more during the previous two years.
  • Have no charge-offs, repossessions, collection accounts, judgments, foreclosures, garnishments by credit providers or tax liens.
  • Have no previous bankruptcies.
  • Have not defaulted on any private or government student loan.

Please note that the list of criteria above may not be exhaustive. American State Bank may require you or your cosigner(s) to meet additional criteria in order to qualify for a loan. American State Bank reserves the right to change the list of criteria in any way from time to time.

Loan Limits

The American State Bank Private Student Loan must be:

  • No more than the cost of attendance minus other aid annually for option 1, and no more than the cost of attendance minus other aid annually, up to $10,000 for option 2.
  • No more than $80,000 cumulative for option 1, and no more than $40,000 for option 2.
  • At least $500. The minimum loan amount is different for residents of certain states:
If you are a resident of... Then your minimum loan amount is...
Colorado $3,001
Maine $1,001
Oklahoma $4,701
South Carolina $3,501
Wisconsin $2,001

Interest Rates

The following chart and example detail the interest rates and fees for the American State Bank 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% 8%
Interest Rate1 Variable1
2.50% + prime rate index (varies quarterly)2
Variable1
5.25% + prime rate index (varies quarterly)2
Capitalization of Interest Annually and at the end of any authorized period of deferment
Current Interest Rate1 5.75% 8.50%
Repayment Term 20 years3
Payments Required While Enrolled? No, but making payments that at least cover accrued interest prevents increases to the loan balance.
Separation Period (After the in-school period and before principal and interest repayment begins) 6 months

This example shows the monthly payments for a $10,000 American State Bank Private Student Loan.

Example on a $10,000 loan Cosigner (Option 1) No-Cosigner (Option 2)
Annual Percentage Rate4 5.71% 9.13%
Finance Charge4 $11,383 $20,299
Monthly Payment4 $89 $123

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). The prime index for the quarter April 1–June 30, 2015, is 3.25%.

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 5.75% 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 8.50% during the 51-month interim and 240-month repayment periods. APR examples are based on quarterly interest rates April 1–June 30, 2015.

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