Understanding the interest rates (APR, simple interest rate and effective interest rate)

Rates are based on several variables, relating to both you as the applicant, and the quality of credit information that we can obtain for you. Other factors that could affect the interest rate for your loan offer include your ability to afford repayments on the loan, our cost of capital for your school, and other market rates that you may have access to. We typically provide the most competitive rate upfront, but your rate may change based on information contained in your credit report, which is obtained later in the application process.

When comparing your offer to other financing opportunities, note that ‘APR’ is not the rate at which interest will accumulate on the loan, but rather a legally-mandated rate that includes the effect of all financing costs (i.e., factoring in fees, and the effects on interest). There are no fees for early repayment, and no surety agreements or other contracts that must be entered into in tandem. To learn more about APR, have a look at this short video.

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