Be a Smart Borrower

Choosing how to repay determines the finance charges.

Laurel Undergraduate Collegiate Loan Repayment Examples1

Option 1 Option 2 Option 3
Immediate Repayment Interest-Only Repayment Deferred Repayment
Amount Requested $10,000.00 $10,000.00 $10,000.00
Origination Fee2 3.0%
($309.28)		 3.0%
($309.28)		 4.5%
($471.20)
Principal Amount of Loan at Disbursement $10,309.28 $10,309.28 $10,471.20
Deferment Period 0 Months 48 Months 48 Months
Monthly Interest Payment3
(while in school)		 (Included below) $51.20 (Deferred)
Principal Amount of Loan at Repayment4 $10,309.28 $10,309.28 $13,268.99
Monthly Principal & Interest Payment5 (after deferral period, if any) $73.62 $73.62 $94.79
Repayment period 240 months 240 months 240 months
APR6 6.34% 6.27% 6.34%
Total Finance Charge7 $7,668.80 $10,126.40 $12,749.60
  1. This repayment example assumes a variable interest rate for the Laurel Collegiate Undergraduate Loan equal to the LIBOR Index plus a margin of 3.50% for Options 1, 2, and 3. The interest rates used in this example and in effect as of 07/01/2008 are 5.96% for Options 1, 2, and 3. The interest rate margin ranges from 3.50% to 7.75% (APRs range from 6.27% to 11.64%), depending on the credit-worthiness of the borrower and co-signer, if any, and the repayment option selected. The LIBOR Index equals the one-month LIBOR published in the “Money Rates” section of the Wall Street Journal on the first business day of the preceding calendar month. LIBOR means the London Interbank Offered Rate. The interest rate and APR will increase during the life of the loan if the LIBOR Index increases. Union Federal Savings Bank, Member FDIC and Equal Opportunity Lender is the lender for the Laurel Collegiate Undergraduate Loan. The loan terms described are for the 2008-2009 academic year and are subject to change.
  2. These repayment examples assume origination fees of 3.0% of the total loan amount (the requested loan amount plus the origination fee) for Options 1 & 2, and 4.5% of the total loan amount for Option 3. The origination fee ranges from 3.0% to 10.5%, depending on the repayment option selected and the credit-worthiness of the borrower and co-signer, if any. The origination fee, if any, will be added to and financed with the requested loan amount at disbursement.
  3. The amount shown here is the payment that will be made during the deferment period if the student elects to defer principal and make interest-only payments while in school. The monthly interest payment will increase if the interest rate increases. Interest-only payments during deferment do not reduce the principal balance of the loan. After deferment, full principal and interest repayment begins.
  4. Principal at repayment is the principal amount of the loan at disbursement plus, if you elect to defer repayment, interest that accrues during the deferment term under Option 3, where both interest and principal is deferred. Under Option 3, deferred interest is capitalized quarterly and at the time your loan enters repayment.
  5. Monthly payments under Option 1 will be fixed for the first year and then recalculated once each year based on the interest rate applicable at the time of the calculation and reset on the anniversary of your most recent repayment start date so as to pay the loan in full over the remaining repayment period. Monthly payments of principal and interest under Options 2 & 3 will be fixed for the first year when the loan goes into repayment and then recalculated once each year based on the interest rate applicable at the time of the calculation and reset on the anniversary of your most recent repayment start date so as to pay the loan in full over the remaining repayment period. If principal or principal and interest are deferred, the monthly payment amount shown here will increase if the interest rate increases and will be computed based on the interest rate applicable at the time repayment begins. Minimum monthly payments will be at least $25.
  6. Annual Percentage Rate (APR) is a measure of what a loan will cost. It takes into account the rate, fees, length of the loan, and the timing of all payments. The APR will increase if the LIBOR Index increases.
  7. Finance charge is the dollar amount the credit will cost and includes interest paid over the life of the loan, plus the origination fee, if any.
Laurel Collegiate Loans are funded by Union Federal Savings Bank, Member FDIC and Equal Opportunity Lender.

The student is the primary borrower for the Undergraduate, Graduate and Continuing Education Loans. Parents and other creditworthy individuals may cosign for these loans.
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