MyRichUncle Has Funding For StudentLoans
NEW YORK - (06/20/06) --MyRichUncle, the provider of loanorigination software, said it is entering the lending arena with afamily of student loans aimed at undercutting the new rates forguaranteed student loans taking effect next week. The company'sFederal Loan Program will provide Stafford loans at 5.8%; PLUSloans at 6.75% and GradPLUS loans at 6.75%, well below the industrystandards for each loan type. Starting July 1, rates on allfederally guaranteed loans will rise to their second-highest levelever, with Stafford loans with adjustable rates rising by 1.84% to7.14%; and Stafford loans for students in school increasing by thesame amount to 6.54% and PLUS loans for parents who borrowed fortheir children rising from 6.1% to 7.94%. In addition, MyRichUnclewill provide a 0.25% rate reduction for borrowers who selectautomatic debit for repayment; and a principal reduction equal tothe Department of Education origination fee after 48 months ofon-time payments.