Skills Fund: We've made it radically simple: you can see your clear-cut interest rate and estimated Annual Percentage Rate (APR - full cost of borrowing funds) on your school's Skills Fund partnership website before applying.
For most schools, our rates are:
- 8.99% interest rate/11.16% estimated APR for a 3-year loan term
- 10.99% interest rate/12.51% estimated APR for a 5-year loan term
- Each loan term has a 4% origination fee
These rates were last updated on December 10, 2019 and are based upon a 3-month program and 2-month post-program payment period.
Climb Credit: As of March 6, 2018, Climb's website provides a window of possible "fixed rates from 6.00 - 16.80%." There is no disclosure of if this rate is only the interest rate or APR. Most loans come with a 3 - 5 year terms.
Students will only learn of their individual interest rate, APR and associated service fees for their loan upon receipt of loan disclosures. The origination fee varies depending on your school and application, but standard loans typically include a 5% origination fee.
Sallie Mae: As of March 6th, 2018, Sallie Mae's website provides a window of "variable interest rate(s): 5.87% - 12.98% APR*" for 5 - 15 year loan terms. Variable interest rates may increase or decrease throughout the life of your loan and are subject to market index changes, which may result in monthly payment changing over time. Sallie Mae does not charge an origination fee. Students will learn of their individual rate after underwriting is complete and a credit decision has been made.
Meritize: As of March 6th, 2018, Meritize's website offers information on both fixed and variable rates. Your rate range will vary between loan durations and types. For variable-rate loans, a student's interest rate has the opportunity to increase once a quarter (four times a year).
- For a Fixed Rate Loan: On a 3-year fixed rate loan, a student's rate can span from 5.2% - 14.7%. On a 5-year fixed rate loan, the rate can span from 5.7%-15.2%.
- For a Variable Rate Loan: Loan rates are calculated using 1-month LIBOR + a percentage that can span from the single (2.7% - 3.45%) to double digits (12.2% - 12.95%) depending on the loan term (3-, 5-, and 10-year term offerings).
The variable rate is calculated by adding a margin, assigned by Meritize, to a market-based index. Margins are assigned on the basis of a variety of factors, including your academic performance, credit history and cosigner status.
Meritize uses London Interbank Offered Rates (“LIBOR”) as the index for its variable-rate loans with the 1-month LIBOR rounded up to the nearest 1/8th of a percent, or 0.125%. This index will reset once a quarter, and as a result, your rate may change, moving up or down, a maximum of four times each year. Regardless of your index and margin, the effective annual interest rate on your Meritize loan will never exceed 19.99%.
Just writing this made our head hurt.
Meritize advertises an origination fee of .5% or 3%, which depends on a student's interest rate. A student won't know their actual rate until after underwriting is complete and a credit decision has been made.