Interest rates for private loans are variable.

Interest rates for private loans are adjusted quarterly on January 1, April 1, July 1, and October 1, according to the LIBOR bill.

A quarterly interest letter is mailed to a borrower to advise of accrued interest. This letter tells how much interest has accrued if the borrower would like to pay accrued interest on a quarterly basis. Unpaid interest during this period will be capitalized (added to the principal).