Student Loans - Penn East FCU

	Credit Score	Origination Fee	APR
A+	800-850	0%	Prime+0.75%
A	760-799	2%	Prime+1.75%
B	700-759	3%	Prime+2.75%
C	640-699	5%	Prime+4.75%
D	620-639	5%	Prime+6.75%
E	600-619	5%	Prime+7.75%
As of 7-1-2010 Prime Interest Rate was 3.25%

Loan Limits: Penn East FCU will not lend more than a combined total of $100,000 to any one single undergraduate borrower or co-borrower/co-signer. Graduate borrowers and consolidation loans are limited to a cumulative total of $250,000. The annual maximum loan amount will not exceed $60,000. Minimum loan amount is $1000.

Loan Length: Penn East FCU will offer up to a maximum 60 month deferred payment term, and up to a maximum 180 month repayment period. Penn East FCU may also offer interest only loans as well.

Loan Pricing: Penn East FCU will utilize a risk based interest rate pricing scheme which will be tiered according to individual FICO credit score.

School Certification: All loans will be certified by the College/University Financial aid department prior to disbursement. The final loan amounts to be disbursed will be determined by the Financial aid office.

Deferral Periods: Repayments of principal and interest will begin 6 months from the student graduating, or un-enrolling from the College/University. Penn East FCU will certify the loan annually to confirm borrower is currently enrolled, has graduated, or un-enrolled.

Variable Rate: The loans are variable rate, indexed to the Prime Interest rate, and adjust quarterly. There is an annual interest rate ceiling of 18%. There is an annual interest rate floor of 4%.Capitalization of Interest: Accrued, but unpaid interest will be added to the principal amount outstanding after the deferral period.

Loan Origination Fee: Penn East FCU may charge a loan origination fee which will be added to the amount borrowed and financed over the term of the loan. Origination fees are not refundable in the event the loan is repaid early.

Forbearance: Penn East FCU may consider modifying the terms of the loan in the event of hardship (i.e. financial or medical difficulty). Interest will continue to accrue during any period of forbearance.

Non-dischargeability in Bankruptcy: The loans are limited on dischargeability in bankruptcy contained in Section 523 (a) (8) of the United States Bankruptcy Code.

Co-signer release Option: Penn East FCU may elect to offer a co-signer release on the loan obligation provided certain stated conditions are achieved.

Preferred Rate Penn East FCU may elect to offer preferred interest rates for borrowers who utilize other credit union products/services and also for excelling academically.

Terms and Conditions

Payment, deferred, interest accrues for up to 60 months, or un-enrolled from school
APR tied to Prime Rate, adjusted quarterly
Debt to income ratio should be less than 45% as a general guideline.
Opening a checking account at Penn East FCU provides .25% rate discount provided monthly payments are transferred from this account.
Graduate with a GPA of 3.5%, offer .25% discount off of rate when loan goes to repayment.
Origination fees to be taken out of loan proceeds.
All distributions made payable to College/University
Cosigners strongly recommended for undergraduate borrowers.
Borrowers need to provide evidence of current enrollment each semester, and apply for increase in LOC.
Annual Maximum draws $60K, subject to verification from Financial Aid

Qualification Requirements

At least half-time enrollment in a degree program.
You must have proof of current positive income
Two (2) most recent pay stubs, last year’s W-2, last 3 months of bank statements.
Origination fees deducted from loan proceeds.
You must be a U.S. citizen or permanent resident and have resided in the U.S. for the previous two years, and
You must have resided at your most current and immediately preceding addresses for a total of at least two years.
International Students: You may apply with a qualified, creditworthy US citizen or permanent resident cosigner