If you’re looking for private student loans, you’re probably wondering if you have to deal with one of the large banks or lenders or if you can go with a smaller company that can give you more personal services. If you’re like so many people who’ve switched from keeping your money in banks to working with credit unions over the past few years, you’re probably dreading even considering borrowing from a large bank. Well, thanks to CU Student Loans, you have other options.
CU Student Loans actually isn’t a single entity; they’re a cooperative of sorts. To compete against the big banks, credit unions all over the United States have banded together to create CU Student Loans. So, if you hate the idea of working with the banks that have charged you so many service fees and penalties for small financial infractions, you can choose to deal with credit unions instead.
Advantages of CU Student Loans Over Other Private Lenders
There are actually a lot of advantages to working with CU Student Loans. Their interest rates are very low, ranging from 2.76% to 7.76%. Though they don’t offer fixed rate loans, even the high end of these interest rates is lower than you’ll find with a lot of lenders.
There are also no origination fees associated with any loans from CU Student Loans. This is a huge saving, and it makes signing with them really tempting. In addition to this, students who go with student loans from credit unions often report much better customer care and service.
To be approved for a loan, you must pass a credit check and be able to prove that you have an annual income of at least $24,000. Because most students can’t get approved for a loan this way, CU Student Loans affiliates are happy to accept cosigners on their loans, which brings us to the next big advantage of going with them over most other private lenders.
Other private lenders will generally release cosigners from any liability on a loan after 36 to 48 consecutive, on time, and in full payments on the part of the borrower. CU Student Loans, however, have a program in place to release cosigners after just one year with 12 regular payments (made on time and in full, of course).
Also, though the requirements for approval are in line with other private lenders, the credit score rating for approval is usually more forgiving with CU Student Loans.
Because credit unions are not-for-profit entities, you know that they are not trying to make money off of you. They are more service oriented and typically work with their clients and partners more than most commercial banks do. Along these lines, there is no penalty associated with paying off your loan early. Some private lenders are so set on collecting interest on your loan that they will actually charge you money if you try to pay it off before it’s due to save on interest. CU Student Loans are typically based on a 15-year repayment plan, and they’ll never punish you for paying early.
How to Get a Loan From CU Student Loans
To apply for a loan with CU Student Loans, just visit their website and fill out an application. You will be immediately notified if you are approved or not. If you’re approved for a loan, you’ll need to find your local credit union branch affiliated with CU Student Loans and become a credit union member.
Joining a credit union typically involves nothing more than opening a savings account and depositing $5 into it. If you have $5 in your pocket, you could be on your way to getting a great loan with excellent customer service and low interest rates.
Who Should Apply for CU Student Loans?
The only disadvantage to working with CU Student Loans is that you cannot choose a fixed interest rate. That said, their range for their variable interest rates is still very attractive, even at its high end. If you are concerned about paying more in interest and you feel that you can get a better deal on a fixed rate loan, you should probably look elsewhere.
If you need a cosigner for your loan but you want to release that person from their obligation to your debt as soon as possible, this is a fantastic option. If you want to save money on interest and you can work to aggressively pay your debt off early, you’ll love that there’s no penalty for paying off your loan early. And, of course, if you just want to avoid dealing with large corporate banks and lenders, you can do that with the help of CU Student Loans.
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TuitionChart.com works hand-in-hand with the best, most trusted names in private student lending to help students and their families find the money they need for college. Through use of comparison tools and loan searches, TuitionChart provides over 20 different loan options for students. TuitionChart.com is designed to help students and their families wend their way through the maze of financial aid information.