Opportunity@Work Talent Equity Fund Private Loan
What is my obligation? You only pay 6.5% of your monthly income if you earn over $35K per year. You pay $330 each month regardless of how much you earn (based a average loan for $15,000 with X% interest for Y years).
How affordable is this? Your payment will never exceed 6.5% of your income. With an expected starting salary of $55K per year following training, this is ~$300/mo. You pay $330 each month regardless of how much you earn. That is ~7.2% of your income, for an expected salary of $55K per year.
How long is my obligation? You will make payments for 5 years (60 months) regardless of how much you repay in that timeframe. If you earn under $35K, you will neither be obligated to repay nor will your term period extend. Traditional loan obligations vary but can extend indefinitely if principal and interest are not fully paid.
What is the interest rate? There is no interest rate. Generally 6%-15%. If payments are deferred during school or during a hardship, interest accrues and the balance you are obligated to repay grows.
What happens to my payments if I become unemployed? We'll never require you to repay if you're earning below $35K nor will interest ever accrue. Some loans have forbearance options, but you will continue to owe payments and your loan obligation will grow due to interest accrual.
Is there a credit score minimum? Your credit score will not impact your access to our financing or the terms of your agreement. No cosigner is required. Traditional financing programs usually require a minimum credit score of 620. Pricing and terms can change at the discretion of the creditor and a cosigner may be required due to credit history.
Can I prepay? Yes. If you decide to prepay you will pay 1.5X the obligation. Payments you make will pay forward towards future student training. Yes. You are required to pay principal + interest.
Is there a cap on how high my payments will go? Yes. Payments are capped at $487.50 per month, the amount obligated of students who earn $90k or more. Payments you make go towards support future students. No. Your payments increase when you accrue unpaid interest.