Many of our members and borrowers have wondered how our loans
compare to the federally guaranteed Stafford Loans, so here
is a comparison:
| |
CANTON STUDENT LOAN |
STAFFORD LOAN |
| Maximum Loan: |
$12,000 |
$23,000 |
| Grace Period: |
3 months after graduation |
6 months after graduation |
| Maximum Repayment: |
7 years ( 84 payments) |
10 years (120 payments) |
| Interest Rate: |
0% during deferment
6.0% APR when repayments begin
This equals an actual rate paid of 1.48% to 2.03% due
to the extended deferment period when no interest is
charged |
6.54% during deferment (compounded)
6.80% during repayment |
| Fees: |
No fees |
3% origination fee and 1% insurance fee
Which comes out of Loan proceeds |
Actual interest rates paid on our loans have been calculated
as follows:
Loans paying back in 11 years (4 years with
deferred interest, 3 month grace period, 84 payments) the
actual interest rate is 2.03%.
Loans paying back in 12 years (5 years with
deferred interest, 3 month grace period, 84 payments) the
actual interest rate is 1.86%.
Loans paying back in 13 years (6 years with
deferred interest, 3 month grace period, 84 payments) the
actual interest rate is 1.71%.
Loans paying back in 14 years (7 years with
deferred interest, 3 month grace period, 84 payments) the
actual interest rate is 1.59%.
Loans paying back in 15 years (8 years with
deferred interest, 3 month grace period, 84 payments) the
actual interest rate is 1.48%.
Our most common loan repayment times are 12 to 13 years,
so our actual interest rate is normally 1.71% to 1.86% which
is significantly lower than the 6.54% to 6.80% currently being
charged on the Stafford loans.
|
