Interest Rate Comparison
Many of our members and borrowers have wondered how our loans compare to other loans, so here is a comparison:
| Canton Student Loan | Stafford Loan (unsubsidized) | Parent PLUS Loan | |
|---|---|---|---|
| Maximum Loan: | $12,000 | $31,000 | Cost of attendance minus any other aid received |
| Grace Period: | 3 months after graduation | 6 months after graduation | No grace period. Payments are expected to be made while student is in school. |
| Maximum Repayment: | 7 years ( 84 payments) | 10 years (120 payments) | Varies depending on amount borrowed |
| Interest Rate: | 0% during deferment 6.0% APR when repayments begin. This equals an actual rate paid of 1.4% to 2.03% due to the extended deferment period when no interest is charged. | 6.8% during deferment 6.8% APR continues when repayment begins. | 7.9% during deferment 7.9% APR continues when repayment begins. |
| Fees: | No fees | 1% origination fee | 3% origination fee AND 1% federal default fee |
You can calculate actual interest rates paid on our loans as follows:
Loan term of 11 years (4 years with deferred interest, 3 month grace period, 84 payments) the actual interest rate is 2.03%.
Loan term of 12 years (5 years with deferred interest, 3 month grace period, 84 payments) the actual interest rate is 1.86%.
Loan term of 13 years (6 years with deferred interest, 3 month grace period, 84 payments) the actual interest rate is 1.71%.
Loan term of 14 years (7 years with deferred interest, 3 month grace period, 84 payments) the actual interest rate is 1.59%.
Loan term of 15 years (8 years with deferred interest, 3 month grace period, 84 payments) the actual interest rate is 1.48%.
