BUMC INTERNATIONAL STUDENT PRIVATE LENDER/PRODUCT OPTIONS 2003-2004

2003-2004 BUMC
International Student
Private Lender/Product Options

The following private lenders provide financing to international students, most with a U.S. citizen or permanent resident as a co-signer. Co-signers must have a satisfactory credit record and a debt-to-income ratio that can sustain additional borrowing. It is wise for students who will rely primarily on private financing to have more than one co-signer available, as a single co-signer may be unable to sustain the borrowing necessary to finance multiple years of your educational expenses. To minimize the number of lenders/products, we encourage continuing students to use the same lender/product as in previous years, unless the benefits of another program outweigh the disadvantage of having more than one private loan lender/product. The Office of Student Finance Services (OSFS) will certify any private loan application for eligible students, whether or not the lender is referenced below. Lender loan products are listed in alphabetical order.

LENDER/PRODUCT	ACCESS Comprehensive Loan 1-800-2282-1550	CanHELP Canadian Higher Education Loan Program with Bank of America 1-888-296-4332	ISLP International Student Loan Program with Bank of America 1-888-296-4332	MEFA Massachusetts Educational Financing Authority 1-800-449-6332
RATES	3 month LIBOR + 2.55% – 3.75% – in school & during repayment periods, based on credit history	3 month LIBOR + 2.4%	3 month LIBOR + 2% in school and 3% during repayment	6.75% fixed (7.18%-7.86% APR), variable 4% – 4.45% (4.35% – 5.55% APR; changes each April, capped at 12%) – depending on program and if with a co-applicant
LOAN FEES	0%, 3%, 6% at repayment – based on credit history	Fees range from 6% – 7.5% added to the principal of the loan at disbursement, and 0% – 2% added to the principal loan balance at repayment (depending on if you apply with a co-signer)	6.5% fee added to the principal at disbursement	3.75% – 7% origination fee (depending on if applying with a co-applicant)
INTEREST CAPITALIZATION	At repayment	At repayment	At repayment	Capitalized monthly
AGGREGATE LIMIT	None	None	None	None with a co-applicant, $225,000 without a co-applicant
ANNUAL MIN./MAX.	$1,000/COA	$1,000/$18,500 – $25,000 without a co-signer and depending on discipline; $45,000 or Cost of Education, with a co-signer, as determined by the school, whichever is lower	$1,000/$45,000 or Cost of Education as determined by the school, whichever is lower	$2,000/COA less other financial aid
REPAYMENT	Begins nine months after graduation of after you cease to be enrolled, or after completion of a required medical or dental residency, not to exceed a total of 120 months after the date of disbursement	Begins six months after graduation or withdrawal; up to 48 months deferment available to medical students during an approved internship or residency	Begins six months after graduation or withdrawal; up to 48 months deferment available to medical students during an approved internship or residency	Begins six months after graduation or if enrolled less than ½ time; deferred while enrolled in the current academic program and required residency (depending on the program)
ELIGIBILITY	Applicant must be an international student; to qualify for this loan, you must earn a minimum credit bureau score and have three years of established U.S. credit history in your own name, including at least four non-student loan trades, one of which has been open for 36 months	Applicant and/or co-applicant must be a Canadian citizen; student must be enrolled at least ½ time in a degree program; applicants are required to have a satisfactory credit history	International students must apply with a creditworthy U.S. citizen or permanent resident co-signer; student must be enrolled at least ½ time in a degree program	Co-applicant required, must be a U.S. citizen or permanent resident; a co-applicant is required for all Canadian students
INCENTIVES	Up to 20 years to repay; Make your first 48 consecutive loan payments on time, and receive a .5% reduction on your interest rate; Have your loan payments automatically transferred from your checking or savings account and receive a .25% reduction on your interest rate	Repayment terms vary between 10 and 25 years, based on the cumulative amount borrowed; Apply for past-due balances owed to the educational institution	Repayment terms vary between 10 and 25 years, based on the cumulative amount borrowed; Apply for past-due balances owed to educational institution	0-96 months deferral; 15 year repayment period (in addition to deferral period); Home Equity Option – potential to fully deduct interest

EXPLANATION OF TERMS TO CONSIDER WHEN CHOOSING A LENDER


RATES	“L” refers to the LIBOR Rate. It is difficult to estimate whether a Prime Rate or LIBOR Rate-based loan will result in a lower rate, as indices fluctuate differently. Just as important is the amount added to the index. On 8/19/03 Access L + 2.55% = 3.68%; CanHELP L + 2.4% = 3.53%; ISLP L + 2% = 3.13%. LIBOR is the London Interbank Offered Rate.

RATES

“L” refers to the LIBOR Rate.

It is difficult to estimate whether a Prime Rate or LIBOR Rate-based loan will result in a lower rate, as indices fluctuate differently. Just as important is the amount added to the index.

On 8/19/03 Access L + 2.55% = 3.68%; CanHELP L + 2.4% = 3.53%; ISLP L + 2% = 3.13%. LIBOR is the London Interbank Offered Rate.

INTEREST
CAPITALIZATION

Interest capitalization occurs when accrued unpaid interest is added to the principal balance, thereby causing interest to accrue on the previous interest balance from that point forward.

Unpaid interest must be capitalized at least once, when repayment begins.

AGGREGATE
LIMIT

Most private lenders require that their borrowers’ total student loan indebtedness at the time of application (including institutional, federal and private lender loans) not exceed certain limits.

When planning for how much you will need to borrow throughout your career at BUMC, consider the aggregate debt limits of private lenders.

INCENTIVES

Some lenders offer better terms for borrowers who maintain a good credit record or who make on-time payments. These discounts are offered in different ways for different programs, but usually take the form of lower fees and/or interest rates.

While quality service is difficult to assess, pay attention to how well a lender answers your questions when you call to get information. OSFS takes previous borrower comments regarding service into account when evaluating lenders and has confidence in the strength of the organizations offering these programs. However, we encourage you to talk with each lender to make your own objective evaluation.

2003-2004 Private Loan Application Instructions

NEW

PLEASE NOTE: The following information is in PDF format and requires Adobe Acrobat Reader to view and print. The Reader can be downloaded for free from Adobe.com.

2003-2004 BUSDM Preferred Private Lenders/Products