Interest Rates

Skills Fund Loan 36 Month Loan 60 Month Loan
Cosigners Note: Up to 1 cosigner might be required in some instances.
Origination Fee 3.0% of loan requested (1)
Interest Rate(2) Fixed
8.49%
Fixed
10.49%
Capitalization of Interest -Interest-only type loans: no interest will be capitalized.
-Deferred-type loans: accrued simple interest will be capitalized once at end of deferment period.Non-Deferred type loans: None, since interest payments are mandatory 30 days after the loan is disbursed
Payments Required While Enrolled? -Interest-only type loans: monthly interest payments are required.
-Deferred-type loans: no payments are required.
Non-Deferred type loans: None, since interest payments are mandatory 30 days after the loan is disbursed
Separation Period (after the in-school period and before interest and principal repayment begins) Two months after official graduation (3)
Note: interest-only type loans require interest-only payments while in school and during the separation period.
Non-Deferred type loans: None, full repayments start one month into program
Principal and Interest Repayment Term 36 months (3 years) 60 months (5 years)

This example shows the monthly payments of a $10,000 interest-only type Skills Fund loan:

Example on a $10,000 loan 36 Month Loan 60 Month Loan
General Annual Percentage Rate 10.00% (4) 11.58% (5)
Finance Charge (the dollar amount the credit will cost you) $2,214 (4) $3,910 (5)
Interest-Only Monthly Payment $73 (4) $90 (5)
Monthly Payment $325 (4) $221 (5)
  • (1) The 3.0% origination fee is assessed to all loans, and is added to the principal request, so for example, requesting $10,000 will result in a $300 origination fee that will be added to your loan balance and increase the amount you will accrue interest against to $10,300.
  • (2) Interest rates are fixed and never vary.
  • (3) Graduation dates are determined by the school, and full repayment begins 2 months after that date.
  • (4) General Annual Percentage Rate (APR): finance charge and monthly payments are based upon borrowing $10,000, a 3.0% origination fee, paying interest on the loan for 5 months while enrolled in the program and 2 month of grace, then the 36 month principal and interest period.
  • (5) General Annual Percentage Rate (APR): finance charge and monthly payments are based upon borrowing $10,000, a 3.0% origination fee, paying interest on the loan for 5 months while enrolled in the program and 2 month of grace, then the 60 month principal and interest period.

This example shows the monthly payments of a $10,000 deferred-type Skills Fund loan:

Example on a $10,000 loan 36 Month Loan 60 Month Loan
General Annual Percentage Rate 9.89% (4) 11.47% (5)
Finance Charge (the dollar amount the credit will cost you) $2,283 (4) $4,093 (5)
Interest-Only Monthly Payment $0 (4) $0 (5)
Monthly Payment $341 (4) $235 (5)
  • (1) The 3.0% origination fee is assessed to all loans, and is added to the principal request, so for example, requesting $10,000 will result in a $300 origination fee that will be added to your loan balance and increase the amount you will accrue interest against to $10,300.
  • (2) Interest rates are fixed and never vary.
  • (3) Graduation dates are determined by the school, and full repayment begins 2 months after that date.
  • (4) General Annual Percentage Rate (APR): finance charge and monthly payments are based upon borrowing $10,000, a 3.0% origination fee, deferring principal and interest for 5 months while enrolled in the program and 2 months of grace, then the 36 month principal and interest period.
  • (5) General Annual Percentage Rate (APR): finance charge and monthly payments are based upon borrowing $10,000, a 3.0% origination fee, deferring principal and interest for 5 months while enrolled in the program and 2 months of grace, then the 60 month principal and interest period.

This example shows the monthly payments of a $10,000 non-deferred type Skills Fund loan:

Example on a $10,000 loan 36 Month Loan 60 Month Loan
General Annual Percentage Rate 10.52% (4) 11.78% (5)
Finance Charge (the dollar amount the credit will cost you) $1,704 (4) $3,280 (5)
Monthly Payment $325 (4) $221 (5)
  • (1) The 3.0% origination fee is assessed to all loans, and is added to the principal request, so for example, requesting $10,000 will result in a $300 origination fee that will be added to your loan balance and increase the amount you will accrue interest against to $10,300.
  • (2) Interest rates are fixed and never vary.
  • (3) Graduation dates are determined by the school and full repayment begins 1 month after program start.
  • (4) General Annual Percentage Rate (APR): finance charge and monthly payments are based upon borrowing $10,000, a 3.0% origination fee, with a 36 month principal and interest period.
  • (5) General Annual Percentage Rate (APR): finance charge and monthly payments are based upon borrowing $10,000, a 3.0% origination fee, with a 60 month principal and interest period.