Understanding APR with OMI Financial Services

What is APR?
APR (Annual Percentage Rate) represents the true yearly cost of borrowing money, expressed as a percentage. It includes the interest rate plus any applicable loan fees. When evaluating private student loans, APR gives a more complete picture than the interest rate alone.

At OMI Financial Services, we offer private student loans with both fixed and variable APR options. APRs vary depending on creditworthiness, loan amount, repayment plan, and term length. A lower interest rate doesn’t always mean a better loan—fees can drive up the total cost. Always compare APRs when considering your loan options.

Fixed vs. Variable APR

• Fixed APR: Stays the same for the life of your loan. Predictable payments, ideal for long-term planning.

• Variable APR: Changes based on market interest rates (e.g., SOFR). May start lower than fixed APRs but can rise or fall over time.

Which one is right for you?

• Choose fixed for stability and predictability.

• Choose variable if you expect to repay quickly or interest rates to stay low.

Federal vs. Private Student Loans

• Federal Student Loans are issued by the U.S. Department of Education. Apply via FAFSA. These include benefits like income-driven repayment and loan forgiveness.

• Private Student Loans—like those from OMI Financial Services—are funded by private institutions and may help cover remaining education costs after federal aid is exhausted.

OMI loans are ideal for:

• Covering tuition and related expenses not met by federal aid

• Students with good credit or a creditworthy cosigner

• Fast funding needs or flexible repayment options

Should You Use a Cosigner?

Adding a cosigner can increase your chances of approval and help secure a lower APR. At OMI Financial Services, we strongly recommend considering a creditworthy cosigner—especially if you’re building or rebuilding your credit.

Reminder: A cosigner shares legal responsibility for the loan, so make sure to have an open, honest conversation about repayment expectations.

Will Applying Affect Your Credit?

Yes, submitting a student loan application typically involves a hard credit inquiry, which may slightly impact your credit score. This is normal and temporary. Comparing multiple loan offers within a short time frame (typically 30 days) often counts as a single inquiry.

Borrow Responsibly

OMI Financial Services encourages families to start with savings, grants, scholarships, and federal aid. Before choosing a private loan, assess your future income and monthly payment obligations.

Eligibility Highlights:

• Must be attending a participating school

• Student or cosigner must meet age of majority in their state

• Non-U.S. citizens must reside and attend school in the U.S. with a qualified U.S. cosigner

• Minimum loan amount: $1,000

• All loans are subject to credit approval, identity verification, and signed agreements

APR Details & Interest Rate Discounts

Advertised APRs typically assume a $10,000 loan with a 4-year term and 6-month grace period. Variable APRs are based on the 30-day Average SOFR and may change over time. Interest accrues once the loan is disbursed.

• Choosing interest-only, fixed, or deferred repayment affects your total cost.

• Enroll in auto debit to receive a 0.25% interest rate reduction (only applies during active repayment).

OMI Financial Services Disclosures

OMI Financial Services reserves the right to modify or discontinue any product, service, or benefit at any time without notice. Loan details, rates, and eligibility requirements may change. Visit OMIFinancial.com for the latest terms and product information.

All loans are issued by OMI Financial Services.