Information And Facts About Credit Union Student Loans
Many students need private student loans to cater for college/university costs however the number of lenders today with credit to offer students is decreasing compared to past years. This has led to many students opting to take out loans from unions. Credit unions can be defined as non-profit financial institutions/organizations.
There are very many credit unions offering students loans at very competitive interest rates. This makes student loans from unions very attractive when students need other funding sources apart from federal loans and other forms of financial aid. Today union loans are among the best sources of student loans. Unions are in fact more liquid compared to many lenders due to the fact that they were not adversely affected by the home mortgage crisis.
Unions serve people groups with specific connections i.e. people working together in an organization, people in the same geographical location e.t.c. Some universities and colleges have credit unions specifically for students.
Such unions are equipped to serve the financial needs of students better than any other financial organization. For instance, such unions are capable of working together with other institutions i.e. states to lower student loan rates, making student loans accessible and cheaper compared to what you would get from banks.
Most unions across America are part of a program known as the Credit Union Student Choice. This program offers loans to undergraduate students.
Getting a credit union student loan
To be able to get a student loan from a credit union, you must first of all become a member of that union. It is important to note that not everyone can become a union member simply because they want to. You must meet a certain membership criteria.
For instance, to become a college or university union member, you must first of all enroll in that university or college as a student. Most university/college unions require students to pay a membership fee ranging anywhere between $5 and $50. If this is a requirement, you must adhere to it to become a recognized union member.
Also, your union may require you to set up an account i.e. a checking account for making deposits to your union. This is usually mandatory for university/college unions if you want to get a student loan.
Some student unions may also check your credit rating/history before giving you a union student loan. Once you meet all the above requirements, you automatically get a union student loan.
Union student loan repayment
Like most student loans, you are required to start paying out your union student loan once you graduate and get a job. It is however important to note that unions may have repayment options that are more strict and less flexible compared to other lenders.
Union vs. bank student loans
Unions offer better interest rates compared to banks. Unions also offer more flexible repayment options for student loans compared to banks. Student are therefore better off taking student loans form unions as opposed to taking student loans from lenders such as banks or other private lenders.