Private student lending solutions provider ReliaMax announced lenders in the Connext Private Student Loan program will lower the interest rates on those loans. As of June 1 the lowest rates for variable and fixed-rate Connext loans for both undergraduate and graduate programs will be 2.87 per cent and 5.40 per cent APR. The borrower will not be charged an origination fee.
In a release ReliaMax said federal student loan interest rates for new loans are scheduled to rise July 1 for the upcoming school year. The rates are adjusted each year based on the annual Treasury Department auction plus a set percentage amount added for each type of loan program. The new rates are 4.45 per cent (undergraduate federal student loans), 6.00 per cent (graduate), and 7.00 per cent (Graduate PLUS, Parent PLUS). There are loan origination fees charged to the borrower for both undergraduate and PLUS loans of 1.069 percent and 4.276 per cent respectively.
“For most students and their families, rising federal student loan interest rates and the increasing costs of tuition, books, and room and board are major causes for concern,” ReliaMax chairman and CEO Michael VanErdewyk said. “The new, lower variable- and fixed-rate Connext Private Student Loans keeps our commitment to help make higher education more affordable.
“We believe this is paramount to reducing a student’s financial burden when they put their education to use in amazing ways after graduation. For some students, the federal student loan interest rate increases may price them out of pursuing their education goals. By reducing interest rates for the Connext Private Student Loan, banks and alternative lenders that are working with ReliaMax will be able to provide students with important and valuable funding alternatives before they head to school this fall.”