Fynanz : Rates & Fees

Interest Rates

Following are the expected margins and upfront fees for the six FACS grades. Please see the explanation following the table to get a better understanding of what a borrower is charged and the return a lender receives.

FACS Grade	Base Rate* (1-Month LIBOR)	Margin Range (set by marketplace auction)
Platinum Honors	2.63%	2.50% – 3.50%
Platinum Plus	2.63%	3.50% – 4.50%
Gold Honors	2.63%	4.10% – 5.10%
Gold Plus	2.63%	5.10% – 6.10%
Silver Honors	2.63%	5.70% – 6.70%
Silver Plus	2.63%	6.50% – 7.50%

* The Base Rate adjusts quarterly on the first day of January, April, July and October. Fynanz uses the average of the 1-Month LIBOR, as reported by the Wall Street Journal on the 1st of each month, for the last three months preceding the adjustment date.

Borrowers: Before considering an OpenLoan, please exhaust federal loans, which in most cases will cost less.

What do I pay as a borrower?

Upfront Fee: You pay a one time fee at disbursement which is added to your loan balance. A portion of this fee goes toward a separate Default Prevention & Guarantee Fund, which is used to pay for expenses associated with collecting on late payments and pay lenders in case a borrower defaults. Guarantees provide safety and capital preservation for lenders, which will encourage lenders to fund borrowers.

Based on your FACS grade, the upfront fee would be 2.9%, 4.9% or 6.9% for Platinum, Gold and Silver FACS Grades respectively. Note: The fee is added to your principal balance, so you do not pay anything out of pocket when you take the loan.

Loan Interest Rate: The interest rate on your loan is:

Base Rate + Margin + 1% Guarantee Fee

The 1% Guarantee Fee is removed once you start making regular payments and have repaid
just 10% of the original loan amount. Guarantee Fees are paid to the Default Prevention & Guarantee Fund.

Fynanz will show you the APR on your loan before you approve the loan listing for advertising in the marketplace. The APR takes into account all the fees you pay including the upfront fee and should be used when comparing the Fynanz OpenLoan with other private student loans.

What do I receive as a lender?

As a lender you receive the following: Base Rate + Margin

You pay Fynanz an annual 1% Servicing Fee. If a loan is in deferment (the student is in school and chooses not to pay interest), interest will accrue and will be added to principal once the student enters repayment. You will not be required to pay servicing fees to Fynanz if a loan is in deferment. Servicing fees will accrue as well and paid to Fynanz once the borrower starts making payments.