Because each lender offers different in-school repayment options and different repayment terms, an identical loan comparison between lenders is not possible. However, the APRs in the chart are listed as the highest and lowest available rates for each lender. For complete details on how APRs were calculated, visit the lenders' websites. The U.S. Department of Education does not provide APR calculations for federal loans. As a guide for comparing costs, however, the costs of the Federal Direct PLUS Loan is approximately equivalent to an APR of 6.25%, which is based on borrowing $10,000, a 4.236% origination fee and a fixed interest rate of 5.30% during the 120-month principal and interest repayment period. APRs may be different for different types of loans. For this example, a 0.25% auto-debit interest rate reduction (repayment benefit) has been included in Iowa Student Loan's lowest APR.
Before applying for an education loan from any lender, you should consider additional characteristics, including: credit requirements, monthly payment amount, origination fees, capitalization frequency, borrower benefits and protections, repayment term, when repayment begins, and the total amount to be repaid over the life of the loan.