U.S. Education Finance Corporation Dividend Program*

Interest-Free Loan

USEFC offers a true interest-free (0%) loan for all first-time USEFC Stafford Unsubsidized Loan borrowers for the firs-year after disbursement! Upon entering repayment, we will apply the interest that accrued during the first calendar year on your first unsubsidized Stafford loan, for qualified borrowers, to your then current outstanding balance. While you are I school and during the grace period, you will receive quarterly interest statements on your Federal Stafford Unsubsidized loan from the Loan Servicer, which will show interest accruing on the loan. Don’t worry! USEFC will apply a credit to your account equal to the accrued interest for the first year of your initial or first Unsubsidized Stafford Loan when you enter repayment. If you wish to make interest-only payments while in school, and qualify for the one year interest-free Unsubsidized Stafford loan at repayment, then you will still receive the full amount of interest credit applied to your then loan balance at repayment.

Automatic Interest Rate Reduction

USEFC offers and automatic 0.50% interest rate reduction at repayment! Other lenders generally require 48 on-time payments to become eligible for interest rate reduction, which most students don’t eventually qualify for because of late payments. In order to qualify for the automatic interest rate reduction of 0.50%, you must graduate and then stay current (less than 30 days delinquent, then the loan(s) will revert back to the statutory interest rate. If you subsequently bring your account current, then USEFC will reinstate the interest rate reduction. After more than one lapse in payment of 30 days, you will forfeit the reduced interest rate reduction.

Origination Fees Rebate

USEFC, after graduation, will credit your student loan account the origination fees you paid at disbursement, for the unsubsidized Stafford loans. The 3% unsubsidized Stafford origination fees you paid at disbursement will be credited to your student loan account, in the following manner: 2% at repayment and 1% after one year of on time payments. Your student loan accounts must remain with USEFC and be current (less than 30 days delinquent) at the time for each credit.

0% Guarantee Fee

For most students the guarantors used in our program will pay the customary 1.0% guarantee fee on behalf of the student! If this is the case, you will not be required to pay this fee.

*U.S. Education Finance Corporation reserves the right to discontinue USEFC Dividend Program at any time without notice.