Fixed Rate Application and Solicitation Disclosure
Loan Interest Rate & Fees Bank of Lake Mills
210 York Street
York, PA 17403
Your interest rate will be between

6.390%
and
10.130%

After the rate is set, your rate will be fixed.

Your Interest Rate (upon approval)
The interest rate you will pay will be determined after you apply. The rate will be established based on your credit history (or your cosigner’s if applicable), repayment term, and the repayment option you elect. If approved, we will notify you of the rates you qualify for within the stated range.

Your Interest Rate during the life of the loan
Your rate is fixed and will remain fixed for the life of the loan. This means that once your rate is determined, the rate will not change. For more information on this rate, see Reference Notes.

The rate will be fixed for the life of the loan.

Loan Fees
Origination Fee: 0.000%  
Late Charges: 5.000% of the past due amount or $10.00, whichever is less. 
Collection and Default Charges: In the event of a default, the borrower may incur additional collection charges as permitted under applicable law.
Loan Cost Example
Immediate payments of principal and interest are due following the disbursement of loan proceeds. There are no deferral options for this loan.

Repayment Option
 Amount Provided
 Interest Rate
(highest possible rate)		 Loan Term
(how long you have to pay off the loan)		 Total Paid
MAKE FULL PAYMENTS
Make principal and interest payments.		 $10,000.00 10.130% 20 years
(240 months)

starting after disbursement		 $23,368.80

About this example
The loan cost example is based on the highest fixed interest rate currently charged and a 20 year repayment term, and assumes that all payments are made on the date they are due.

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Page 2 of 2

Federal Loan Alternatives

There are currently no Federal Loan Alternatives that allow the consolidation of private student loans. Federal Consolidation Loans only allow for the consolidation of Federal student loans and may not be used to consolidate private education loans. The interest rate for the Direct Federal Consolidation Loan equals the weighted average interest rate of the loans being consolidated, rounded up to the nearest one-eighth of one percent.

Think carefully before using a consolidation loan to pay off your federal student loans. If you refinance your federal student loans through this program, you will lose federal student loan benefits, you will no longer be able to take advantage of Federal Student Loan repayment, forgiveness or hardship options, including but not limited to Income Based Repayment (IBR), Public Service Loan Forgiveness (PSLF), or Pay As You Earn (PAYE). For more information about these benefit programs and a consolidation option for federal loans, contact the Department of Education at studentaid.gov.
Next Steps
  1. Find Out About Other Loan Options.
    Visit the Department of Education's website at: https://studentaid.gov/manage-loans/consolidation for more information about consolidation loan options that may be available for federal student loans.

  2. To Apply for this Loan, Complete the Application.
    An Approval Disclosure will be provided to you after you have completed the application process if your loan is approved. The Approval Disclosure will identify the loan terms for which you are approved. The loan terms will be available for 30 days (terms will not change during this period, except as permitted by law.)
REFERENCE NOTES
Fixed Interest Rate
  • The interest rate will be set when the loan is approved and will not increase above that rate before the loan is paid in full. The interest rate is based upon your (or your cosigner's if applicable) credit history and the repayment term you select.
Eligibility Criteria
Borrower and Cosigner
  • Must be a U.S. Citizen or Permanent Resident with a valid I-551 card.
  • Must be at least the age of majority or older at the time of application based on his/her state of permanent residence.
  • Must have been enrolled at an eligible accredited U.S. school.
  • Applying without a cosigner typically results in a higher rate.
 Bankruptcy Limitations
  • If you file for bankruptcy you may still be required to pay back this loan.
Prepayments
  • If you choose to prepay your principal at any time, you will not be charged a prepayment penalty.
More information about loan eligibility and deferral and forbearance options is available in the Credit Agreement.

Variable Rate Application and Solicitation Disclosure
Loan Interest Rate & Fees Bank of Lake Mills
210 York Street
York, PA 17403
Your starting interest rate will be between

8.743%
and
12.383%

After the starting rate is set, your rate will then vary with the market.

Your Interest Rate (upon approval)
The interest rate you will pay will be determined after you apply. The rate will be established based on your credit history (or your cosigner’s if applicable), repayment term, and the repayment option you elect. If approved, we will notify you of the rates you qualify for within the stated range.

Your Interest Rate during the life of the loan
Your rate is variable. This means that your actual rate varies with the market and could be lower or higher than the rate on this form. The variable rate is based on the three-month forward-term version of the 90-day average Secured Overnight Financing Rate (SOFR) that is published by the Federal Reserve Bank of New York and/or The Wall Street Journal. For more information on this rate, see Reference Notes.

Although the rate will vary after you are approved, it will never exceed 18.000% (the maximum allowable for this loan).

Loan Fees
Origination Fee: 0.000%  
Late Charges: 5.000% of the past due amount or $10.00, whichever is less. 
Collection and Default Charges: In the event of a default, the borrower may incur additional collection charges as permitted under applicable law.
Loan Cost Examples
Immediate payments of principal and interest are due following the disbursement of loan proceeds. There are no deferral options for this loan

Repayment Option
 Amount Provided
(amount provided directly to you or your school)		 Interest Rate
(highest possible rate)		 Loan Term
(how long you have to pay off the loan)		 Total Paid
over entire loan term (includes associated fees)
MAKE FULL PAYMENTS
Make principal and interest payments.		 $10,000.00 12.383% 20 years
(240 months)

starting after disbursement		 $27,069.60

About this example
The loan cost example is based on the highest variable interest rate currently charged (using current 3-month SOFR values) and a 240 month repayment term, and assumes that all payments are made on the date they are due. The actual loan cost will vary depending upon your selected repayment term.  

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Page 2 of 2
Federal Loan Alternatives

There are currently no Federal Loan Alternatives that allow the consolidation of private student loans. Federal Consolidation Loans only allow for the consolidation of Federal student loans and may not be used to consolidate private education loans. The interest rate for the Direct Federal Consolidation Loan equals the weighted average interest rate of the loans being consolidated, rounded up to the nearest one-eighth of one percent.

Think carefully before using a consolidation loan to pay off your federal student loans. If you refinance your federal student loans through this program, you will lose federal student loan benefits, you will no longer be able to take advantage of Federal Student Loan repayment, forgiveness or hardship options, including but not limited to Income Based Repayment (IBR), Public Service Loan Forgiveness (PSLF), or Pay As You Earn (PAYE). For more information about these benefit programs and a consolidation option for federal loans, contact the Department of Education at studentaid.gov.
Next Steps
  1. Find Out About Other Loan Options.
    Visit the Department of Education's website at: https://studentaid.gov/manage-loans/consolidation for more information about consolidation loan options that may be available for federal student loans.

  2. To Apply for this Loan, Complete the Application.
    An Approval Disclosure will be provided to you after you have completed the application process if your loan is approved. The Approval Disclosure will identify the loan terms for which you are approved. The loan terms will be available for 30 days (terms will not change during this period, except as permitted by law.)
REFERENCE NOTES
Variable Interest Rate
  • The variable interest rate is based on the three-month forward-term version of the 90-day average Secured Overnight Financing Rate (SOFR) that is published by the Federal Reserve Bank of New York and/or The Wall Street Journal, plus a margin of 3.390% to 7.030% based on creditworthiness and repayment term selected, and is adjusted quarterly.
  • The rate will not increase more than once a quarter but there is no limit on the amount that the rate could increase at one time. Your rate will never exceed 18.000%.
  • If the Interest Rate increases, your monthly payments will be higher.
Eligibility Criteria
Borrower and Cosigner
  • Must be a U.S. Citizen or Permanent Resident with a valid I-551 card.
  • Must be at least the age of majority in his or her state of permanent residence or apply with a cosigner who is.
  • Must have been enrolled at an eligible accredited U.S. school.
  • Applying without a cosigner typically results in a higher interest rate.
Bankruptcy Limitations
  • If you file for bankruptcy you may still be required to pay back this loan.
Prepayments
  • If you choose to prepay your principal at any time, you will not be charged a prepayment penalty.
More information about loan eligibility and deferral and forbearance options is available in the Credit Agreement.



Notice for students attending an institute of higher education in Virginia
Private education loans are one tool that students use to finance their education. Your lender and your institution's Financial Aid Office provide assistance with eligibility for the loans. For borrowers who have existing private education loans, Virginia has a Student Loan Advocate to assist borrowers who are struggling with repayment. You can contact the Student Loan Advocate at: State Council of Higher Education for Virginia, James Monroe Building, 10th Floor, 101 N. 14th Street, Richmond, VA 23219; studentloan@schev.edu; 804-786-2832. In addition, resources for prospective and current private education loan borrowers are available online at schev.edu/privateloan.
IMPORTANT DISCLOSURE ABOUT REFINANCING YOUR STUDENT LOANS

You are eligible to refinance both private and Federal student loans with this private consolidation loan. If any of the loans that you are refinancing are Federal student loans, you should be aware of the following important facts about how refinancing may affect your rights.

1. A Federal student loan is made according to rules set by the U.S. Department of Education. Federal student loans typically have fixed interest rates, meaning that the interest rate on a Federal student loan will never go up or down. In addition, Federal student loans have longer default periods than private student loans.
2. Federal student loans also permit borrowers in financial trouble to use certain options, such as income-driven repayment options, which may help some borrowers. Depending on the type of Federal student loan that you have, the government may discharge your loan if you die or become permanently disabled.
3. Depending on the type of Federal student loan that you have, you may be eligible for loan forgiveness in exchange for performing certain types of public service. If you are an active duty service member and you obtained your Federal student loan before you were called to active duty, you are entitled to interest rate and repayment benefits for your loan. (Note that the interest rate cap of six percent that is applicable to Federal student loans is also applicable to private student loans, including private consolidation loans, but only if you obtained your private loan before you were called to active duty.)
4. Congress could also provide additional benefits in the future that would apply to your Federal student loans.
5. If you are unable to pay your Federal student loan, the government can refer your loan to a collection agency or sue you for the unpaid amount. In addition, the government has distinct abilities to collect the loan, such as taking your tax refund and applying it to your loan balance and invoking an administrative process for garnishing your wages.
6. A private consolidation loan is not a Federal student loan and is not regulated by the Department of Education. A private consolidation loan is instead regulated like other consumer loans under both state and federal law and by the terms of the loan agreement with your lender.
7. If you refinance your Federal student loan, your new lender will use the proceeds of your new loan to pay off your Federal student loan. Subject to certain legally required exceptions, lenders making private consolidation loans do not have to honor any of the benefits that apply to Federal student loans. Because your Federal student loan will be gone after refinancing, you will lose any benefits that apply to that loan.
8. Your private consolidation loan may have either a fixed or variable interest rate. If your private consolidation loan has a fixed interest rate, it may be less than the rate of your Federal student loan and it will never change. If your private consolidation loan has a variable interest rate, that rate may currently be less than the rate of your Federal student loan, although the interest rate may go up or down in the future.
9. If you don’t pay a private consolidation loan as agreed, the lender can refer your loan to a collection agency or sue you for the unpaid amount.
10. If you are a borrower with a secure job, emergency savings, strong credit and are unlikely to need any of the options available to distressed borrowers of Federal student loans, a refinance of your Federal student loans into a private consolidation loan may be attractive to you. You should consider the costs and benefits of refinancing carefully before you refinance.

You should also be aware that some of the same concerns that apply to refinancing your Federal student loans may also apply when you are refinancing your private student loans. Some private student loans also have fixed rates, offer certain protections to borrowers in financial trouble, offer loan forgiveness in some circumstances, and offer various other benefits, including rate reductions for on-time payment, which you will lose when you refinance.

Remember also that like Federal student loans, most private consolidation loans cannot be discharged if you file for bankruptcy unless you can demonstrate that repayment of the loan would cause you an undue hardship. In most bankruptcy courts, proving undue hardship is very difficult for most borrowers. Again, consider the costs and benefits of refinancing carefully before you refinance.