FAQs

It's actually important that you create room in your budget for the "wants" category so you can do the things you enjoy. If you're only spending money on needs, debt, and savings, it's not sustainable.

It's easy! Just email education@umcu.org and let them know what topics you're interested in! Our financial educators have so many books, pamphlets, and more on a variety of topics from retirement, saving for college, and financial literacy for children!

One-on-one financial counseling is one of the most requested things from our financial education team! However, it's best to work with one of UMCU's licensed financial counselors for your one-on-one session, since everyone's situation is unique and different.

We offer dozens of sessions every month! Be sure to check the upcoming schedule page to browse which topics and dates are available each month!

Both of these loans are types of federal student loans offered by the U.S. Department of Education to help eligible students cover the cost of higher education.

Both unsubsidized and subsidized loans won't require you to pay back the loan while still enrolled in school (at least half-time) and during any grace period. This often is six months after graduation. The key difference here is interest. Subsidized loans won't accrue interest until the grace period ends. Unsubsidized loans will start accumulating interest immediately.

Income-based repayment plans will change based on your income. Generally, it's a percentage of your income and family size. Standard repayment is a set amount that doesn't change from month to month - just like a car payment. If you're not sure which route to take, be sure to speak to one of our financial counselors!

Deciding whether to consolidate or refinance student loans can be a complex process. As you assess your financial situation and long-term goals, weigh the pros and cons of each option. Consolidating student loans offers the convenience of a single monthly payment and potentially extended repayment terms to reduce immediate financial strain. Refinancing offers the potential for securing a lower interest rate, which could save you a significant amount of money in the long run.

Although each person’s financial situation differs, refinancing and consolidating student loans are both viable options for most people. To find out more information on your student loan options, contact a UMCU loan officer at 734-662-8200 or visit your local branch.

Applying for student loans can feel overwhelming at times. But UMCU is dedicated to providing you with a positive, easy experience.

There are many types of financial aid that you can apply for, grants and scholarships are the first options to consider as these don’t need to be paid back. If you don’t qualify for grants and scholarships or if your expenses still exceed the financial aid you’ve received, student loans are the next option to consider.

There are two types of student loans, federal and private. Federal loans are often the first loans students consider. This is government-funded aid that is awarded after completing the Free Application for Federal Student Aid (FAFSA). Federal loan amounts are limited to the governments calculation of your financial need, which subtracts your Estimated Family Contribution (EFC) from your Cost of Attendance (COA). This means that, regardless of whether parents are willing or able to pay for their student’s education, their income could disqualify their child from receiving need-based aid or aid that covers their entire cost of attendance.

Private student loans can cover the financial gaps left by federal loan limitations. Private loans are loans obtained from private lenders that have higher borrowing limits and are not based on financial need.

While federal student loans require a FAFSA to determine financial need, private student loans only require an online application subject to credit approval.

Here are steps to take to make sure you’re setting yourself up for success throughout the student loan process:

1. Research and compare lenders: When looking at private lenders, compare their interest rates, repayment terms, fees, and customer reviews. Look for lenders that specialize in student loans and have a good reputation. UMCU’s Student Choice Loan offers flexible repayment options, competitive low interest rates, and in-school deferment options that ensure you won’t need to worry about paying for school while you’re still working toward your degree.
    
2. Determine your loan amount: While it can be tempting to borrow as much as possible, remember that your loans will need to be paid back with interest. UMCU’s Debt Payoff Calculator can help you visualize what you’ll have to pay back when considering interest. Borrowing responsibly sets you up for success upon graduation. To ensure you’re taking out the correct loan amount, calculate the amount of money you need for your education, considering tuition fees, textbooks, living expenses, and any other related costs. This will help you determine the loan amount you should apply for.
    
3. Check eligibility criteria: Make sure to review UMCU’s eligibility criteria to ensure you meet their requirements. Keep in mind that UMCU’s Student Choice Loan is available to students attending accredited universities or colleges in the United States.
    
4. Gather necessary documents: Collect all the necessary documents required for the loan application process. This may include identification documents, proof of enrollment or acceptance letter from your educational institution, income verification, and previous tax returns.
    
5. Consider a co-signer (if needed): If you have a limited credit history or insufficient income, you may need a co-signer to increase your chances of approval. Find a responsible person (such as a parent) who is willing to co-sign the loan with you.
    
6. Complete our easy online application: Fill out the application form on our website. Provide accurate and detailed information, including personal details, educational institution information, loan amount, and any other required details.
    
7. Submit any supporting documents: Attach all the necessary supporting documents along with your application. Make sure to double-check that all documents are complete and accurate.
    
8. Review and compare loan offers: If you are applying through multiple lenders, carefully review and compare your loan offers. Considering the interest rates, repayment terms, fees, and any other relevant factors to determine which offer is the best fit for your needs.
    
9. Accept the loan offer: If UMCU’s student loans are right for you, you can accept your loan offer by signing a loan agreement. Please read the agreement thoroughly and make sure you understand all the terms and conditions before signing. UMCU is happy to help if you have any questions about your loan agreement.
    
10. Disbursement and follow-up: Feel free to stay in touch with us throughout the loan processing period. In the cause that we require additional information or documentation, this will ensure that your loans disburse on time. Once everything is finalized, the lender will disburse the funds to your educational institution, student loans are applied to your tuition and fees by your university on a set day, if you notice any issues with how your loans apply on your account, contact your university first to make sure there are no holds on your account preventing your loans from being applied. If your university does not see any issues, please follow up with your lender.
     

Repayment: UMCU’s Student Choice Loan has an in-school deferment option which means you do not need to pay your loan off until you complete your degree or drop below the required credit load. Once you enter into your repayment period, make sure to keep track of your loan repayment obligations, make timely payments to avoid negative consequences (such as being sent to collections or receiving derogatory marks on your credit report) and contact your lender if you have questions about your repayment terms.

You've Never Had a Credit Card or Fixed Interest Loan Before

If you've never had student loans, a credit card, or a car payment, you may need to prove that you are able to pay off a loan.

You Want to Improve Your Credit Score

If you need to repair or improve your current score, a certificate secured can help speed up the process so you won't have to wait long to see your credit score improve.

A Build My Credit loan can be a great option for individuals who are having trouble qualifying for other loans or lines of credit due to poor or nonexistent credit history.

Deciding whether a Build My Credit loan is right for you requires careful consideration of your financial situation, goals, and credit history. When considering a UMCU Build My Credit loan, evaluate these elements:

• Credit Goals - Determine your credit goals. Are you looking to establish credit for the first time, rebuild your credit after past difficulties, or improve your credit score? Understanding your objectives will help you evaluate if a credit-building loan aligns with your specific goals.
• Credit History - Assess your current credit history. If you have no credit history or a somewhat unfavorable credit history, a credit-building loan can be a useful tool to establish a positive track record.
• Affordability - Evaluate your financial situation and determine if you can comfortably afford the loan payments. Credit-building loans involve making regular payments over a fixed period. Ensure that the loan payments fit within your budget and won't strain your finances.
• Interest Rates and Terms - Understand the interest rates and terms associated with the credit-building loan. Carefully review the terms, including the repayment period and any fees involved, to ensure they are reasonable and manageable.
• Professional Advice - If you are unsure about whether a credit-building loan is right for you, consider contacting a UMCU financial advisor. These professionals can provide personalized guidance based on your unique financial situation and help you make an informed decision.

Remember, building credit takes time and consistent effort. While a credit-building loan can be a valuable tool, it is only one piece of the puzzle. It is essential to complement it with responsible credit card usage, timely bill payments, and other positive credit-building behaviors to achieve long-term credit health.

Whether you’re obtaining a mortgage, buying a car, or starting a business, having good credit shows lenders that they can trust you to repay money. A strong credit score can give you access to lower interest rates and increase the likeliness that banks and lenders will approve your applications.

You can improve your credit score by borrowing and repaying debt responsibly. However, if you don’t have credit history, it can be hard to qualify for loans or credit cards.

Credit plays a crucial role in our modern financial system, serving as the essential element of economic activity, here are some reasons why:

• Building a Positive Financial Reputation - Lenders and financial institutions assess an individual's creditworthiness based on their credit history. A good credit score, which reflects responsible borrowing and repayment behavior, can provide access to lower interest rates, favorable loan terms, and higher credit limits. This can translate into substantial savings over time and increased financial flexibility.
• Increasing Purchasing Power- Loans or Lines of Credit enable you to make significant purchases and investments that you might not have the immediate cash to cover. By borrowing money from lenders, individuals can acquire homes, vehicles, and other valuable assets that enhance their quality of life. Loans also allows individuals to invest in education, which can open doors to better career opportunities and higher earning potential.
• Growing Your Business - Small businesses often rely on loans and credit lines to fund their operations, purchase inventory, and invest in expansion. Access to credit can be a determining factor in the success or failure of a business. It enables entrepreneurs to seize opportunities, innovate, and create employment opportunities, thus driving economic growth.
• Establishing a Financial Safety Net - Credit promotes financial resilience by serving as a safety net during emergencies. Unexpected expenses, such as medical bills or car repairs, can put a strain on individuals' finances. Having access to credit allows people to manage these unforeseen circumstances and maintain their financial stability. In times of crisis, credit can bridge the gap between immediate needs and available resources.
• Contributing to a Robust Financial System - When you repay your debts in a timely manner, it instills confidence in lenders and encourages them to continue extending credit to others. This cycle of borrowing and repayment fuels economic activity, stimulates investment, and creates a healthy cycle of capital circulation.

However, it is important to use credit responsibly. Excessive borrowing, reckless spending, and failure to make timely repayments can lead to financial distress, damaged credit scores, and long-term consequences. It is crucial to maintain a balance between credit usage and financial discipline, ensuring that borrowing aligns with one's ability to repay.

Virtually anything tech-related!

• Laptops
• Custom computer rigs
• Headphones
• Tablets
• Phones
• Printers
• 3D printers
• Cameras
• Lighting equipment
• Monitors

And more!

Just about anything related to improving your dwelling! Use the funds for repairs, renovations, and even furniture!

Virtually anything! Take the family on a trip to Disney World, repair that leak in your garage roof, consolidate debt from multiple credit cards - the possibilities are endless!