SIOUX FALLS, S.D.--(BUSINESS WIRE)--ReliaMax®, the complete private student lending solutions provider, today announced that the banks and alternative lenders participating in the Connext® Private Student Loan program will lower the interest rates on those loans. Effective June 1, 2017, the lowest rates for variable- and fixed-interest rate Connext® loans for undergraduate and graduate programs will be reduced to 2.87 percent APR* and 5.40 percent APR*, respectively, and the borrower will not be charged an origination fee.
ReliaMax urges students and their families to carefully research and evaluate all available options to fund their higher education costs as they head to college and university programs this Fall. Options include federal aid, which, for certain borrowers, may include income-sensitive repayment and loan-forgiveness programs.
Federal student loan interest rates on new loans are scheduled to increase on July 1 for the 2017-2018 school year. These interest rates are adjusted each year based on the annual Treasury Department auction plus a set percentage amount added for each type of loan program. According to MarketWatch, the interest rate for the 2017-2018 school year is 4.45 percent for undergraduate federal student loans, 6.00 percent for graduate federal student loans, and the rate increases to 7.00 percent for both Graduate PLUS and Parent PLUS loans. In addition, there are loan origination fees charged to the borrower for both undergraduate and PLUS loans of 1.069 percent** and 4.276 percent**, respectively.
“For most students and their families, rising federal student loan interest rates and the increasing costs of tuition, books, and room and board are major causes for concern. The new, lower variable- and fixed-rate Connext Private Student Loans keeps our commitment to help make higher education more affordable. We believe this is paramount to reducing a student’s financial burden when they put their education to use in amazing ways after graduation,” said Michael VanErdewyk, Chairman and CEO of ReliaMax. “For some students, the federal student loan interest rate increases may price them out of pursuing their education goals. By reducing interest rates for the Connext Private Student Loan, banks and alternative lenders that are working with ReliaMax will be able to provide students with important and valuable funding alternatives before they head to school this Fall,” he added.
The ReliaMax commitment to offer “real loans for real people” enables lenders participating in the Connext program to serve more families by providing private student loans across a broad credit spectrum and a wide range of program types such as undergraduate, graduate, international medical and MBA. Additional features of the Connext Private Student Loan program include:
- Loans funded by originating banks and alternative lenders
- Loans cover up to 100 percent of all school-certified educational costs
- Contact with a Student Lending Specialist for the lifetime of the loan
- Repayment options for each borrower’s unique situation
For more information, please visit ConnextLoans.com or (888) 558-5572 to speak with a US-based private student loan specialist.
ReliaMax has helped over 450 banks, credit unions, alternative lenders and investors to fund more than $3 billion in loans to students attending over 2,300 non-profit colleges and universities. Through its complete Private Student Loan Platform-as-a-Service solution, which includes originating, servicing, borrower acquisition, portfolio liquidity and insurance provided by ReliaMax Surety Company***, ReliaMax enables lenders to quickly, easily and safely help student borrowers realize their education goals. For more information, visit ReliaMax.com.
* Annual Percentage Rate (APR). This loan has a variable interest rate equal to the 3Month LIBOR (as published in The Wall Street Journal) plus a margin. The current 3Month LIBOR is 1.15% as of March 20, 2017 used for the rates effective April 1-June 30, 2017. The APR was calculated on a $12,000 loan with payments deferred for 2.5 years. The low APR rate includes a 0.25% discount for automatic payments and a 10 year repayment term. The high APR rate does not include a discount and a 15 year repayment term.
** Loan fees for Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans first disbursed on or after Oct. 1, 2014 and prior to Oct 1, 2017. https://studentaid.ed.gov/sa/types/loans/interest-rates
***Private student loan insurance is not available for lenders located in California.
ReliaMax® is a registered trademark of ReliaMax and/or its affiliates. Other names may be trademarks of their respective owners.