Graduates may refinance and/or consolidate any unsubsidized, nonsubsidized or subsidized federal or private student loan (not guaranteed or insured by the federal government) that was used exclusively for qualified higher education expenses (as defined in 26 USC Section 221) at an accredited U.S. graduate school. All loans must be in grace or repayment status and cannot be in default.
Postponing or Reducing Payments
DRB does not offer loan payment deferral options. DRB also does not generally allow forbearance of collection of payments due on student loans and is not required to postpone or reduce my monthly payment (except for monthly payment reductions due to any applicable interest rate reduction).
If DRB agrees (in its sole discretion) to postpone or reduce any monthly payment(s) for a period of time, interest on the loan will continue to accrue for each day principal is owed. Although the borrower might not be required to make payments during such a period, it is to the borrower's advantage and encouraged to make payments during such a period. Making payments, or paying some of the interest, will reduce the total amount that will be required to pay over the life of the loan.
Interest not paid during any period when DRB has agreed to postpone or reduce my monthly payment will be added to the principal balance through capitalization (compounding) at the end of such a period, one month before the borrower is required to resume making regular monthly payments.
iFixed rate options consist of 5.00% per year, 5.50% per year, or 6.00% per year for a maximum 5-year term, 10-year term, and 15-year term, respectively, with no origination fees. The fixed interest rate will apply until the loan is paid in full (whether before or after default, and whether before or after the scheduled maturity date of the loan). The monthly payment(s) for a sample $10,000 loan at 5.00% per year, 5.50% per year and 6.00% per year for maximum terms of 5 years, 10 years, and 15 years, respectively, would be $188.71, $108.53, and $84.39.
However, if the borrower chooses to make monthly payments automatically by electronic fund transfer (EFT) from a DRB bank account, the fixed rate will decrease by 0.25%, and will increase back up to the regular fixed interest rate described in the preceding paragraph if the borrower stops making (or DRB stops accepting) monthly payments automatically by EFT from the designated borrower's bank account.
iiVariable rate options consist of a range from 2.99% per year to 3.49% per year for a maximum 15-year term and 3.99% for a maximum 20-year term, with no origination fees. For the maximum 15-year term, a maximum interest rate cap option is available at a cost of up to 0.25%, which will cause the variable interest rate to increase, ranging from 3.24% per year to 3.74% per year. The variable interest rates are based on a Current Index, which is the 3-month London Interbank Offered Rate (LIBOR), as published in the "Money Rates" section of The Wall Street Journal (Eastern Edition). The variable interest rates and Annual Percentage Rate (APR) will increase or decrease with the 3-month LIBOR index changes. The variable interest rates are calculated by adding a margin ranging from 2.75% to 3.25% for the 15 year term loan and adding a margin of 3.75% for 20 year term loan, respectively, to the daily average of the 3-month LIBOR index published on each business day during the 91-day period ending on the 20th day of the calendar month immediately preceding each "Change Date", as defined below, rounded to two decimal places, with no origination fees. (For purposes of determining the 3-month LIBOR index, a business day is any Monday through Friday excluding U.S. federal holidays.) The variable interest rate will change quarterly on the first day of each calendar quarter ("Change Date") if the Current Index changes. The monthly payment for a sample $10,000 loan at a range of 2.99% per year to 3.49% per year for a maximum 15-year term would be from $69.01 to $71.44. The monthly payment for a sample $10,000 loan at 3.99% per year for a maximum 20-year term $60.56. APR is subject to increase after consummation.
However, if the borrower chooses to make monthly payments automatically by electronic fund transfer (EFT) from a DRB bank account, the variable rate will decrease by 0.25%, and will increase back up to the regular variable interest rate described in the preceding paragraph if the borrower stops making (or DRB stops accepting) monthly payments automatically by EFT from the designated borrower's bank account.
iiiIf DRB does not receive any part of a payment within 15 days after the due date, it may assess a late fee not to exceed 5% of the late payment or $28, whichever is less. The borrower may be charged $20 for any payment (including a check or an electronic payment) that is returned unpaid due to non-sufficient funds (NSF) or a closed account.