PNC Solution Loan

Rating:
Website:  www.PNCONCAMPUS.com
Phone Number for New Applicants:  (800) 762-1001
Hours of Operation:  M-Th 8am-7pm; F 8am-6pm ET    

• THIS IS A VARIABLE RATE LOAN.  Interest rates will change during life of loan based on changes to the one-month LIBOR (to see current one-month LIBOR Rate, click here).  The Index used is the average of the previous quarter's one-month LIBOR on the first business day of each month.
  
• Current Starting Interest Rates between 4.23% and 10.98%
  • Range in terms of index:  Average of One-month LIBOR over a three month period +4.00% to +10.75%
• Interest Rate Change Upon Default:  Lender may increase the interest rate on the loan by 2% for a late payment
  
• Rates effective after June 1, 2010
  

• Origination/Repayment Fees:  0% to 6%
• Late Payment Fees:  Lesser of 5% of overdue payment or $5
  • Timing:  15 days after payment due, a payment is considered late
• Returned Payment Fees:  None
• Forbearance Fees:  None

• Standard Repayment Term:  20 years, 25 years for loans greater than $40,000
• Interest-only payments required while student is in school:  No
• Prepayment Penalties:  None

• Auto-Debit Benefit:  0.50% interest rate reduction for signing up to make payments via auto-debit from your bank account

• Although not required, a co-signer may reduce the interest rate the borrower receives for the loan and may increase the chances of having the application approved
• Co-signer Release:  Yes, after 48 months of consecutive on-time payments.  Borrower must request a co-signer release and pass a credit check.
  

• Annual Minimum Loan:  $1,000
• Annual Maximum Loan:  Cost of attendance less any other financial aid

• Provides immediate response to online loan application:  Yes
• Upon online credit approval, provides immediate "plain English" disclosure on interest rates and fees:  No

• Borrower may cancel loan up to ten days following receipt of Disclosure Statement
• Review lender's Promissory Note for details on loan cancellation process

• Sample PNC Bank Promissory Note, April 2009

• AES/PHEAA

• Loan approval rates, which are not publicly available, may be low
• Lender does not service their own loans
• Promissory note contains clause which gives PNC the opportunity to increase interest rates by 2% following a late payment
• This loan may not be dischargeable in bankruptcy

• Once you have applied for a loan, please complete this short survey to tell us about your experience