UMCU Provides Flexible Options to Finance Your Future

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.

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.

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.

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!

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.