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Loan Comparison Calculator
CU Student Choice Loan Comparison
Determining which loan provides you with the best value involves more than simply comparing monthly payments. Use this calculator to compare the monthly payments, fees and other costs associated with getting a CU Student Choice Loan against other possible student loan programs. By comparing these important variables side by side, this calculator can help you pick the loan that works best for you.
Please read the assumptions and definitions below to better understand how the calculator works.
Click on the "View Report" button to see the results in detail.
Assumptions
- Assumes a fixed rate. Nearly all private student loans are variable rate, including this loan from your credit union. However, since future rates are unknown we make a fixed rate assumption for the purposes of the calculator. Your actual rate and monthly payments will vary throughout the loan, resetting quarterly based on a market index.
- Assumes the borrower chooses the full deferment option on payment while in school. note: Interest continues to accrue on private student loans during deferment periods.
- Assumes the borrower chooses the graduated repayment option when entering repayment (lowers monthly payments on the first 2 years of the loan).
- Assumes the borrower graduates on the expected date and begins repayment six months after leaving school (as typically required).
Additional Notes:
- The loan term is set based on the dollar value of the loan when entering repayment. For loans under $40,000, the term is 20 years. For loans at or above $40,000, the term is 25 years.
- CU Student Choice loans currently do not exceed $75,000.
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Definitions
- Loan amount
- The total dollar amount for this loan.
- Interest rate
- The interest rate on this loan.
- Loan term
- The number of years over which you will repay this loan.
- Origination fee
- The dollar amount charged as a loan origination fee, which is included in the Annual Percentage Rate (APR) calculation. For many loans a 3% to 6% origination fee is common. For example: a 1% fee on a $120,000 loan would cost $1,200.
- Monthly loan payment
- Initial monthly principal and interest payment (PI).
- Annual percentage rate (APR)
- A standard calculation used by lenders. It is designed to help borrowers compare different loan options. For example: a loan with a lower stated interest rate may be a bad value if its fees are too high. Likewise, a loan with a higher stated rate and very low fees could be an exceptional value. APR calculations incorporate these fees into a single rate. You can then compare loans with different fees, rates or different terms.
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