About Cognition Lending
Cognition Lending is the lending arm of Cognition Financial Corporation. It provides loans and related services including loan origination, default prevention, default processing and other administrative functions. The company, which was incorporated in 2001, was originally named First Marblehead Education Resources, Inc. The name changed to Cognition Lending in May 2017. Cognition Lending is based in Boston, Massachusetts and operates as a subsidiary of Cognition Financial.
1 Any applicant who applies for the loan the month of, the month prior to, or the month after their graduation date, as stated on the application or certified by the school, will only be offered the immediate repayment option.
2 0.25% interest rate reduction applies when full payments (including both principal and interest) are automatically drafted from a bank account. Interest rate reduction(s) will remain on the account unless (1) the automatic deduction of payments is stopped (including during deferment or forbearance) or (2) there are three automatic deductions returned for insufficient funds within the life of the loan.
3 The variable interest rate currently ranges from % – % (APR % – %). The variable interest rate for each calendar month is calculated by adding the current One-month LIBOR index (published on the 25th day, or the next business day thereafter, of the month immediately preceding such calendar month, and rounded up to the nearest 1/8th of one percent) to your margin. Margins currently range from %-%. The current One-month LIBOR index is % on . LIBOR stands for London Interbank Offered Rate. The One-month LIBOR is published in the "Money Rates" section of the Wall Street Journal (Eastern Edition). The interest rate will be determined after you apply. The variable interest rate and Annual Percentage Rate (APR) depend upon (1) the student’s and cosigner's (if applicable) credit histories, (2) the repayment option and loan term selected, and (3) the requested loan amount and other information provided on the online loan application. If approved, applicants will be notified of the rate qualified for within the stated range. The variable interest rate will increase or decrease if the One-month LIBOR index changes, but will never exceed 16%. Rates and terms effective for applications received on or after . Interest will begin to accrue as of the first disbursement date.
4 The legal age for entering into contracts is 18 years of age in every state except Alabama (19 years old), Nebraska (19 years old, only for wards of the state), and Mississippi and Puerto Rico (21 years old).
5 Make interest only payments while student is enrolled at least half time in a Title IV eligible school. Principal payments will begin the earlier of six months from the date on which the student graduates or falls below half time at a Title IV eligible school, but no later than 66 months from the first disbursement date. Interest will begin to accrue as of the first disbursement date.
6 The initial credit review is based on all the information you and your cosigner (if applicable) provide during the application process and the information obtained from your credit report (and any cosigner’s credit report). If you pass the initial credit review, documentation will be requested to verify your identity and annual income. A signed Loan Packet, including the Credit Agreement, Approval Disclosure and Applicant Self-Certification Form is required before a final loan decision is made. Your school will be required to certify the loan amount for the upcoming academic year/semester prior to disbursement.
7 Payment examples (all assume a 45-month deferment period and a six month grace period before entering repayment): 5 year term: $10,000 loan disbursed over two transactions with interest only repayment a 5-year repayment term (60 months) and a % APR would result in a monthly principal and interest payment of ; 7 year term: $10,000 loan disbursed over two transactions with interest only repayment a 7-year repayment term (84 months) and a % APR would result in a monthly principal and interest payment of ; 10 year term: $10,000 loan disbursed over two transactions with interest only repayment a 10-year repayment term (120 months) and a % APR would result in a monthly principal and interest payment of .
8 Length of grace period may be shorter than six months for students enrolled in school for longer than 60 months. The immediate repayment option does not have a grace period.
9 Making interest only payments while in school will not reduce the principal balance of the loan. Interest will begin to accrue as of the first disbursement date.