Graduate Student Loan Variable Rate

(1):  The ANNUAL PERCENTAGE RATE (APR) is the highest Prime Rate as stated in the Wall Street Journal (index) plus a margin of 5.00% to the value of the index. The rate on new and existing balances will change on the 1st day of each year to reflect any change in the index. 

We will use the index value available to us as of 10 days before the date of any APR adjustment. The maximum ANNUAL PERCENTAGE RATE will never be greater than the maximum rate allowed by state law in North Carolina which is currently 18.00%.  There is a minimum ANNUAL PERCENTAGE RATE of 5.00% (floor).  Any increase in APR will result in higher payments until what you owe has been repaid. 
The maximum credit limit will be based on school certification and actual cost of attendance and your documented ability to repay, less any other financial assistance and aid received up to a maximum limit of $170,000.00.  The minimum loan amount will be $5,000.00. The Credit Union reserves the right to adjust your Limit at any time based on its discretion. 

Draw period is the period during which you may request advances (subject to the limitations specified in advances) This period begins after the first advance is disbursed to the school and continues until: (1) you graduate; (2) you fail to maintain satisfactory progress according to the school’s standards ; (3) you fail to maintain enrollment as at least a half-time student; (4) you withdraw from the school, or (5) you fail to sign a reaffirmation upon the credit union request. The Draw period may also be terminated if you fail to provide verification of information.  Termination of the Draw period places you into the Grace Period.
Advances: You may only use advances for educational expenses as outlined in the applicable program’s tuition fee schedule and all funds will be disbursed directly to your school.  During the Draw period the school must certify funds and provide proof of satisfactory progress and proof of enrollment as at least a half-time student status at intervals requested by the credit union. 


After the initial advance, finance charges (interest) will begin to accrue immediately, calculated by taking the unpaid balance for each day since your last payment (or advance if you have not yet made a payment) and multiplying that by the applicable daily periodic rate.  


Full Deferment: If you maintain the conditions set forth in the Draw period, you shall have the option of fully deferring principal and interest on the line of credit until graduation or the termination of the Draw period.  If you default on either condition or graduates, the Draw period ends and you will immediately enter the six month Grace period.

Grace period: No payment of principal or interest shall be due during the six (6) month period immediately following the Draw period.  If you leave school and return prior to entering repayment, you will receive the full six (6) month grace period when you leave school again as long as you have maintained the conditions set forth in the Draw period. 

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