StudentLine of Credit

To provide Students with financing in order to obtain post secondary education of any kind.

Parameters

• maximum of $10,000 available per year
• interest paid monthly
• rate @ Prime while student attends school and for six months following graduation
• life insurance expected to be placed on student
• parents/guardians must co-sign and must have a satisfactory credit record and demonstrate ability to repay the debt
• security expected to support credit worthiness of application
• line of credit must be converted to a term loan within six months after graduation with blended principal and interest payments
• annual verification required from the educational institution confirming student’s enrollment/attendance
• application and subsequent reviews will require an estimation of education costs (tuition, supplies, fees, accommodations, food, travel, etc.)
• can take up to ten (10) years to repay after graduation
• can be repaid at any time without penalty
• applications are subject to credit approval and periodic review

Policy

Board approval required regarding:

1. pricing – recommended at Prime while in school
2. amortization – term loan, possibly note lending, repayable over ten (10) years once termed out after graduating.

Pricing

Term loans after graduation @ Prime + 2%