## GMAC Bank Education Loans

**Repayment of an Undergraduate Loan:**

Undergraduate students can defer principal and interest payments until six months after they graduate or cease to be continuously enrolled at least half-time in an approved post-secondary school. Immediate payment and interest-only payment options are also available to undergraduate students.

**Undergraduate Loan Repayment Example1:**

Repayment Option |
Deferred Repayment |

Amount Requested | $10,000.00 |

Origination Fee^{2} |
$695.19 |

Principal Amount of Loan at Disbursement | $10,695.19 |

Deferment Period | 48 Months |

Principal Amount of Loan at Repayment^{3} |
$14,841.74 |

Monthly Principal & Interest Payment^{4} |
$125.83 |

Repayment period | 240 months |

APR | 8.86% |

Total Finance Charge | $20,199.20 |

This is an example. The terms and conditions of your loan may differ from the example.

_______________________________________________

1 This repayment example assumes the variable interest rate for the GMAC Bank Undergraduate Education Loan is equal to the LIBOR Index plus a margin of 4.75%. The interest rate used in this example and in effect as of 10/1/2005 is 8.27%. The interest rate margins vary, depending on the creditworthiness of the borrower and cosigner, from 4.75% to 7.25%. LIBOR means the London Interbank Offered Rate. The LIBOR Index is equal to the average of the one-month LIBOR rates as published in the “Money Rates” section of the Wall Street Journal on the first business day of each of the three (3) calendar months immediately preceding each quarterly adjustment date. The interest rate and APR will increase and decrease during the life of the loan if the LIBOR Index increases or decreases. The loan terms described in this example are subject to change.

Back to top

2 This repayment example assumes an origination fee of 6.5%. The origination fees for the GMAC Bank Undergraduate Education Loan vary, depending on the repayment option selected and the creditworthiness of the borrower and cosigner, from 5% to 10.5% of the total loan amount (the requested loan amount plus the origination fee). The origination fee will be added to and financed with the requested loan amount at disbursement.

Back to top

3 Principal at repayment is the principal amount of the loan at disbursement (the requested loan amount plus the origination fee) plus, if you elect to defer repayment, interest that accrues and is capitalized (added to principal) during the deferment term, which in this example assumes deferment of principal plus interest for 48 months. Deferred interest is capitalized quarterly and at the time your loan enters repayment.

Back to top

4 Monthly payments of principal and interest will be fixed for the first year when the loan goes into repayment and then recalculated once each year based on the interest rate applicable at the time of the calculation and reset on the anniversary of your most recent repayment start date so as to pay the loan in full over the remaining repayment period. If principal or principal and interest is deferred, the monthly payment amount will increase or decrease if the interest rate increases or decreases, and will be computed based on the interest rate applicable at the time repayment begins. Minimum monthly payments will be at least $25.