Interest rates


The Annual Percentage Rate (APR)1 for our private education line of credit is determined by using the Prime index plus a margin.


The current offered rate is 8.00%APR2. If you have a qualified U.S. co-borrower, your rate will be 7.75%APR. Please note, this line of credit is subject to a floor rate APR of 6.00%. The floor rate is in effect if the index plus margin is below the stated floor rate.3


A 3% draw fee added to each loan disbursement. The draw fee is added to the amount you must repay when you make the draw. For example, you need a draw for $10,000 with a draw fee of 3%. The total amount borrowed for that draw will be the $10,000 plus the 3% draw fee ($300) for a total of $10,300. The 3% draw fees do not accrue interest during the loan enrollment period. Interest will start accruing on the draw fees once the loan enters into repayment.



  1. APR = Annual Percentage Rate
  2. Your interest rate is variable and will change based on changes in an index chosen by Elements Financial Federal Credit Union. The index is Prime, as published in The Wall Street Journal (“Index”). If the Index becomes unavailable during the term of this account, the credit union may substitute a new index after notice to you. The interest rate will be adjusted quarterly, based on a historical index chosen by the credit union. This quarterly adjustment will occur upon no less than forty-five (45) days written notice to you. To determine the APR, add your margin rate to the Index (as provided in your notice), and round the result up to the nearest one eighth percent (0.125%). Any increase in the index rate will increase the APR and the amount of your monthly payment.
  3. As of April 1st, 2018, the Prime rate used will be 4.50%. The margin for the line of credit currently ranges between 3.50% and 3.25% depending on the borrower/co-borrower's credit score at the time of application. This margin is added to the index rate to determine the interest rate. There is a 'floor' rate for the undergraduate line of credit; meaning that your interest rate will never fall below the stated floor rate as disclosed upon approval. The 'floor' rate APR for the private education line of credit is currently 6.00%.
  4. Once your line of credit is disbursed, the current Index margin is used for the purpose of assessing and tracking accruing interest. Please note that the interest rate, and any subsequent rate change, applies to the entire balance on the line of credit.
  5. All loans subject to approval and restrictions may apply. Elements Financial Federal Credit Union reserves the right to change rates for new applications at any time and without notice.
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