Education Loans: Act Education Loan Program
The Act Education Loan is a private education loan that can be used to cover the difference between school expenses and Federal financial aid such as the Stafford Loan. This translates into fewer out-of-pocket expenses until after graduation.
Because of their versatility, private education loans can be used for any school related expense - including books, tuition, supplies, lab fees, transportation and housing expenses.
How Are Private Education Loans Different?
Unlike federal loans, private student loans do not require the FAFSA. However, a credit check for the primary borrower and/or a co-signer is needed to qualify. The interest rate is variable, and based on either the LIBOR or Prime indices, plus a margin for credit.
Act Education Loan Benefits
- Defer payments while in school and for a six-month grace period after graduation
- Exclusive 2% graduation reward based on your outstanding principal balance 1
- No upfront, origination, guarantor, or prepayment fees
- Lower your interest rate by 0.25% when you choose to have your payments automatically deducted from your personal bank account
- Rates as low as Prime minus 0.50%, based on credit evaluation
- Annual Maximum is 100% of your Cost of Attendance minus other aid, based on school certification
Click Here to Apply for the Act Education Loan
Act Education Loan Eligibility
- Must be enrolled at least half-time in an eligible 4 or 5 year undergraduate degree program.
- You must be a U.S. citizen or permanent resident
- You must have a cosigner for your loan application
- You and your cosigner must both pass a credit check
Frequently Asked Questions About Education Loans in General
What is a private education loan?
Unlike Federal Student Loans, private education loans are specialized education loans based on your credit history and income and should only be considered after all federal loans, grants and scholarships have been exhausted. Lenders typically give better terms for better credit history.
What can private education loans be used for?
Private education loans can be used for education-related expenses including such things as tuition, books, transportation and room and board.
Who can apply for a private education loan?
The student must apply for the loan. Since many students do not have extensive credit history, they will need a creditworthy cosigner to apply for this loan.
Are there application deadlines?
No. You may apply for a private education loan at any time.
What is the application process?
You will need to submit your application online. Once you determine the amount you want to borrow, you will need your Social Security Number, driver's license, cosigner information, and two additional references ready. You and your cosigner's credit will be checked. You can then check your status online at any time.
Click Here to Apply for the Act Education Loan
Are there any fees?
There are no origination fees, no guarantor fees, and no prepayment fees associated with this loan.
What are the interest rates?
Interest rates will be based on you and your cosigner's credit history and are generally stated as an index, such as Prime or LIBOR, plus a margin.
Is the interest tax deductible?
Interest on student loans may be tax deductible. Please consult your tax advisor or visit irs.gov for more information.
How soon will I receive my funds?
Private education loan funds are usually disbursed within 14 days of receiving all necessary paperwork.
Who offers private education loans?
Banks, private lenders and other financial institutions offer private education loans.
How long are repayment terms for private education loans in general?
Repayment terms typically range from 15-25 years.
Are there any deferment options?
You can typically choose to begin repaying your loan immediately, make interest only payments while you are in school, or defer all of your payments while you are in school. Any interest you defer will be capitalized (added to your balance) when you begin making your loan payments.
What should I look for in a private education loan?
Interest rates and fees can vary significantly between lenders. Many lenders also offer borrower benefits that can reduce the principal or interest on a private education loan. Be sure to look carefully at the terms and conditions when applying for a loan.
Click Here to Apply for the Act Education Loan
You will be eligible to receive a Graduation Reward when:
- The student graduates from the degree program that the loan was used to fund, and;
- The graduation date is less than six years after the date of the loan's first disbursement, and;
- The loan is not in default on the graduation date Upon graduation, if you have more than one participating loan, you may be eligible to receive a Graduation Reward on each loan. However, you will not receive a Graduation Reward more than once for the same private student loan, even if the student receives more than one degree. We may request proof of the graduation date and degree from the student or the school, in order to confirm eligibility for the Graduation Reward. If you default on your loan or consolidate or refinance your loan with another lender prior to redeeming the Graduation Reward, you will not be eligible for a Graduation Reward. We will calculate the Graduation Reward by multiplying the outstanding principal balance of your loan on the last day of the month of graduation by 2% (0.02) and rounding to the nearest cent. The outstanding principal balance used for the calculation will not include accrued and unpaid interest, which may be capitalized when your loan enters its repayment phase. If you consolidate or refinance your loan with another lender after you redeem your Graduation Reward, we may add the amount you redeemed to the principal balance of your loan that is reported to the consolidating or refinancing lender. If there is an overpayment due to an error, we reserve the right to increase the principal balance of your loan by the amount of the overpayment of the Graduation Reward. It is your responsibility to notify us if there is an error in the Graduation Reward calculation or if you do not receive an expected Graduation Reward redemption
