FAQ

Is a co-borrower required?

No, but we highly recommend that you have a co-borrower as it will improve your chances of meeting the approval criteria and could also help you qualify for a lower rate.

 

What is a school-certified loan?

A school-certified loan will be forwarded by us to your school for verification of enrollment and need.  Once approved, the money will be sent to the school at the time(s) specified by the school for that academic year.  Excess loan funds sent to the school (beyond what the school itself requires) will be disbursed to the student by the school. Several thousand schools and campuses across the U.S. are eligible with this loan.  View a listing of our approved schools to see if your school is included before you apply.  NOTE: Approved schools are subject to change.

 

How does the 0.25% automatic electronic payment discount work?

When your loan is in full repayment, you can receive a 0.25% rate discount by electing to make automatic electronic payments. The rate discount will only become effective during full repayment. If your loan is in deferment or you are making interest-only payments, the rate discount will not apply. If your line of credit is subject to a floor rate (also known as a minimum interest rate) as specified in your promissory note, your rate will never be less than the floor rate.
 

 

How much can I borrow?

The minimum is $1,000 per year. The maximum loan amount will be the certified need determined by your school, up to a maximum of $75,000 per student (undergraduate) or $100,000 per student (graduate business) for the remainder of their education.  The certified need is typically the Cost of Attendance (COA) less other financial assistance and aid received.
*amounts may vary and are set by each credit union. Contact your credit union for more details.

 

How does the Line of Credit (LOC) work?

You will be underwritten for the cost of the remainder of your education ($75,000 maximum) and will be allowed regular disbursement draws up to the school-certified amount.  Each year you will request a draw for the amount you wish to be disbursed from the LOC.  You will not need to reapply each year assuming there are no significant changes to the borrower or co-borrower credit scores.

 

How often can I receive disbursements from my Line of Credit?

Funds are disbursed to your school based on the school's disbursement cycle.  You will request the specific draw amount from the LOC each year.

 

Do I have to fill out the standard Free Application for Federal Student Aid (FAFSA) form, get federal loans first, or inform my financial aid office?

Completion of the FAFSA form is not part of the Credit Union Student Choice loan application process, but may be required by some schools. We highly encourage all students to complete the FAFSA form and fully exhaust Federal Stafford aid first, and only then use private student loans to help pay for the remaining costs of attending college. Please consult your school's financial aid office for further assistance.

 

Do I need to know what school I'm attending to apply for a Credit Union Student Choice Loan?

Yes, your school information is important. Once your loan is conditionally approved we'll verify your enrollment information.  We will also work with the school to certify the loan and for disbursement of funds.

 

What if my school is not on the list of eligible schools?

The Credit Union Student Choice loan is available to many public and private non-profit four-year degree granting schools nationwide.  Unfortunately, if your school is not included in our approved list then you are not eligible for a Credit Union Student Choice loan at this time.  However, you may still wish to contact a credit union for other possible loan options.  Please note that the eligible schools list is subject to change without notice.

 

To apply, do I have to know my enrollment status?

Yes.  You must be enrolled at least half-time in a degree or certificate program to be eligible.

 

I'm a foreign student attending a U.S. school. Can I still apply for a Credit Union Student Choice Loan?

No. Student must be a U.S. citizen or permanent resident alien in order to be eligible.

 

Do I and my co-borrower need to be members of a participating credit union to be eligible for a Credit Union Student Choice Loan?

You can apply for a loan without being a member of the credit union, but in order to fund the loan, you will need to become a credit union member. Some credit unions may also require the co-borrower (if applicable) to be a credit union member. Please check the credit union's Student Choice website or with the 24/7 call center for clarification. To expedite funding, visit your credit union branch or website to open your membership and account while your loan is being processed. 

 

How quickly can I get the funds?

With our online application, downloadable credit agreement and fax-back option, the credit union could have the funds ready in as little as 7 business days after your conditional approval. However, the exact timeline for disbursing funds will be set by your school in coordination with Credit Union Student Choice.
 

How will I receive my money?

The money will be sent directly to the school. If there are excess funds after your direct school related costs are paid, the school will issue a check to you with those remaining funds so you may buy books or pay for other education expenses (such as off-campus room & board).

 

Are there out-of-pocket fees I have to pay?

No. Our loans do not have origination or other application fees. In addition, there are no prepayment fees (see below).

 

What is the graduated repayment option?

Once you complete school, you will be allowed to choose straight repayment over 20 or 25 years (depending on loan balance) or our graduated repayment for two years.  The graduated repayment option amortizes the first 2 years over a 40 year period and then over either 18 or 23 years for the remainder of the loan.  This means monthly loan payments will be lower in the first two years after starting repayment - which may benefit individuals who are just beginning new careers and managing tight budgets.

 

What other repayment options are available?

Students may choose full deferment while in school, elect to make interest only payments while in school, or choose full principal and interest only payments.

 

Is there any penalty for paying the loan off early?

No. You can pay off your Credit Union Student Choice Loan at any time, even if you're still in school.

 

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