Start by exhausting grants, scholarships and federal student loans before considering a private student loan. Many lenders, including DR Bank and partners such as Monogram LLC, state that you should pursue all available financial aid first. The AbeSM loan program is funded by DR Bank, Member FDIC, and all applications are subject to individual approval under the lender’s underwriting rules. Lender product offerings, rates and benefits can change; both DR Bank and Monogram LLC reserve the right to modify or discontinue products at any time.
When you begin an online application, with your permission DR Bank will run a soft credit inquiry to estimate available rates and options; this soft credit inquiry will not affect your credit score. Remember that any displayed rates and loan options are estimates only and the final terms depend on underwriting and verification of the information you provide.
What drives interest rates and APRs
Interest rates and APRs depend on multiple elements: the credit histories of the student and any cosigner, the chosen repayment option and term, the expected years in deferment, the requested loan amount, and other application details. For AbeSM, rates and terms are effective as of 05/01/2026. Variable rates are calculated using the 30-Day Average Secured Overnight Financing Rate (SOFR) plus a fixed margin; the SOFR index is 3.75% as of 05/01/2026. Variable indexes and loan margins can change over time, which may increase or decrease the APR. A loan’s assigned fixed rate does not change after funding except as required by law or for certain discounts or adjustments such as In-School Default Protection.
Sample APR ranges for illustrative scenarios assume a $10,000 loan with a single disbursement. The lower APR examples assume a 7-year term with the Interest-Only Repayment option and auto pay; the higher APR examples assume a 7-year term with the Fully Deferred Repayment option, a seven-month deferment period, plus a six-month grace period before repayment begins. These assumptions affect the effective cost of credit and monthly payments.
Borrower benefits, discounts and protections
An autopay discount is commonly offered: for AbeSM you can earn a 0.25% interest rate reduction by enabling automatic bank debits after the servicer validates your account. The discount may be paused when payments are not required and discontinued permanently if three automatic payments are returned. Other lenders offer similar ACH discounts with differing amounts and eligibility dates; for example, Ascent’s APR displays reflect ACH discounts as of 05/01/2026 and vary depending on application date relative to 6/1/2026.
In-School Default Protection is a safety feature some lenders provide: if an Interest-Only or Flat Payment loan becomes at least 90 days delinquent during an in-school deferment, it may convert automatically to a Full Deferment option. Under those rules, the interest rate on an original Interest-Only loan increases by 1.00%, while a Flat Payment loan’s rate rises by 0.25%. Note that credit reporting that occurred before such a transition remains on your record and unpaid accrued interest may be capitalized per your Credit Agreement.
How lenders compare
DR Bank / AbeSM details
The AbeSM product is made by DR Bank. Minimum loan amounts vary: generally $1,000, except for Iowa residents ($1,001) and Massachusetts residents ($6,001). Annual in-school borrowing is capped by the school’s certified cost of attendance minus other aid. Aggregate limits per borrower are $300,000 for undergraduate loans, $350,000 for graduate/Healthcare Professionals/Law/MBA loans, and $500,000 for Medical or Dental loans. Longer terms (15- and 20-year) and the Flat Payment Repayment option (paying $25 monthly while in school) are available only for loans of $5,000 or more. Example payment illustrations for a $10,000 loan: 5-year at 11.30% APR = $218.92; 7-year at 8.50% APR = $158.36; 10-year at 8.35% APR = $123.18; 15-year at 8.30% APR = $97.31; 20-year at 10.83% APR = $99.03.
Ascent funding and examples
Ascent funds undergraduate and graduate loans via Bank of Lake Mills or DR Bank (Member FDIC). APRs displayed are effective as of 05/01/2026 and reflect an automatic payment (ACH) discount that varies by application timing: 0.25% on certain credit-based loans submitted prior to 6/1/2026, 0.5% for loans submitted on or after 6/1/2026, and 1.00% for outcomes-based loans. Approval hinges on credit, certified cost of attendance, and verification. Examples for a $10,000 loan with a 48-month in-school period plus 9 months grace before a 60-month repayment: Interest Only Repayment 5.90% APR = in-school payments of $49.17 (57 payments), repayment payments of $192.88 (60 payments), total cost $14,376.53; $25 Minimum Payment 6.53% APR total cost $15,471.73; Deferred Repayment 6.71% APR total cost $16,181.14; Immediate Repayment 3.65% APR total cost $10,955.77. For a 180-month repayment scenario Ascent’s highest variable APR examples produce substantially higher total costs, including an Interest Only 16.06% APR total cost $34,130.81 and other scenarios listed by the lender.
Sallie Mae snapshot
Sallie Mae advertises rates for undergraduate and career training loans; lowest rates shown include an auto debit discount. Variable rates are tied to the 30-day Average SOFR, rounded up to the nearest one-eighth percent, and may change over the loan’s life. To earn a 0.25% interest rate discount you must enroll in auto debit; the discount applies only during active repayment and may be suspended for forbearance or deferment. Example typical costs for a $10,000 Smart Option Student Loan (fixed repayment, two disbursements): a borrower with no prior loans and a 4-year in-school period: 10.28% fixed APR, total loan cost $23,134.44. A borrower with $20,000 in prior loans and a 2-year in-school period: 10.78% fixed APR, total loan cost $24,438.22. Direct applications cannot exceed certified cost of attendance minus other aid, and partner-site applications may have lower maximums; some school-certified personal expenses may qualify if enrolled at least half-time.
