Several lenders make loans available to parents to help them finance the cost of a private school education (K-12) for their children. All require US citizenship. Other options include home equity loans and lines of credit, as well as personal unsecured bank loans and peer-to-peer loans. See also tuition payment plans.

The education loans for private elementary and secondary schools (K-12) include:

• Sallie Mae K-12 Family Education Loan. Sallie Mae offers the K-12 Family Education Loan to help parents pay for all or part of the cost of sending their children to private primary, middle and secondary schools, including prep schools, parochial schools, Montessori schools and boarding schools. Families can borrow from $1,000 up to the total cost of education. The loan is available to parents or other credit-worthy family members. Borrowers can choose to repay the loan over 1 to 3 years and there are no prepayment penalties. There is no application fee. Interest rates range from 1-Month LIBOR + 7.00% to 1-Month LIBOR + 11.50%. Disbursement fees range from 0% to 3%. The online application can be completed in about 20 minutes, with quick credit decisions.

  Sallie Mae also offers the Tutorial Financing Loan to help pay for the cost of tutoring to improve grades and performance on standardized tests.

• Act Education Loan for K-12 Students. The Student Loan Network offers the Act Education Loan for K-12 Students for private K-12 education. The loan limits are $30,000 per year with a $130,000 aggregate loan limit. The interest rate is LIBOR + 4.95% with 6.0% fees. There is a 0.25% interest rate reduction for auto-debit and a 0.25% interest rate reduction for making the first 36 consecutive payments on-time. The repayment term is up to 20 years.

• Lake Trust Credit Union. Lake Trust Credit Union in Michigan offers a K-12 Education Loan to cover the cost of tuition and books. The loan interest rates range from 6.9% to 16.9% with a repayment term of up to 18 months. There are no fees or prepayment penalties. For more information, call 1-888-267-7200.

• prepGATE. Tuition Management Systems (TMS), a subsidiary of the First Marblehead Corporation, offers the prepGATE Loan Program for financing private K-12 education. Loan amounts range from a minimum of $2,000 to a maximum of $30,000 per year (capped at the total cost of attendance minus other aid) with a $150,000 aggregate limit. The interest rates are variable, ranging from LIBOR + 5.99% to LIBOR + 10.4%. Originaion fees range from 0.0% to 2.5%, depending on the repayment term. 5-year and 10-year repayment terms are available. There is a $50 minimum monthly payment. There is a 0.25% interest rate reduction for borrowers who repay their loans through auto-debit. For more information, call 1-866-362-4283.

• Your Tuition Solution. Your Tuition Solution offers fixed-rate tuition financing plans to cover the cost of tuition and related expenses at more than 2,400 private K-12 schools in the United States. The loan amounts are $2,000 to $40,000. The interest rates are fixed, ranging from 5.99% to 17.99% APR, and depend on the loan term, tuition amount and the borrower's credit score. There are no origination or application fees and there is no prepayment penalty. Payments can be spread over 12 to 84 months. Your Tuition Solution is a program of Springstone Financial LLC. For more information, contact:
  Your Tuition Solution
  Springstone Financial LLC
  2 Park Central Drive, Suite 100
  Southborough, MA 01772-1777
  Phone: 1-800-920-9777
  Fax: 1-508-281-8505
  Email: info@yourtuitionsolution.com
  URL: www.yourtuitionsolution.com

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