With the rising costs of living today, most people are finding it hard to get school funds for their kids or even for themselves. In addition, the number of students joining universities and colleges are increasing day in day out. For example, the number of students who were joining school for the first year in 2014 was higher than those in 2009 by 82%. As a result, people are trying to get student loans either from the government or from private institutions.
Different credit unions, such as St. Mary’s Credit Union, have developed programs to help fill this gap. Credit unions are nonprofit organizations and thus they focus on giving the best services to their customers. There are a few tips you should have before applying for a student loan from credit unions. Some of the tips include:
- Comparing different institutions offering the service – Make sure you research on different institutions and know all their terms. This will help you get one with the best lending rates.
- Know exactly how much you need and only borrow that – You will know the exact amount you need by looking at the fees structure, the cost of living and surviving in that school, as well as any other personal expenses needed. In addition, find out how much your family is willing to contribute towards your studies and factor it in. In this way, you will avoid having a huge debt.
- Ask any questions you may have – most people are usually desperate when getting student loans or college funding and this makes them not question any term. However, it is good that you ask questions so that you don’t agree to terms that are not okay with you. In this way, you will be sure of what you are signing for.
- Seek advice – It is good that you ask for advice from different finance experts. You can also ask the credit union representative to give you all the details regarding the loan so that you have all the facts.
The next step is knowing the process of getting the loan or how to access it.
How to Get a Student Loan from a Credit Union
For most credit unions, the process of getting a loan is very simple and time saving.
In most cases, the process is as follows:
- Online application – The process starts by filling an online application form which is replied to after a period of two days. If one has a co- signer, then the co-signer needs to register as well as sign electronically. Having a co–signer in most cases attracts lower rates.
- Approval – The application form is then reviewed and assessed and if one qualifies for the loan, then he or she is notified.
- Certification from the school – One is requested to bring a note or a fee structure from the school specifying the fee as well as the total expenses one may need. The school also certifies the time which the loan should be disbursed.
- Lending disclosure form and a promissory note – The lender will send you a disclosure form outlining all the terms and conditions of the loan. After that, a promissory note is also sent to confirm the terms in the disclosure form. You are required to sign the promissory note if you accept the terms and if you don’t, one is required to decline the loan within a certain period of time.
St. Mary's Credit Union offers you student loans at a very affordable rate. We offer loans at both variable and fixed rates, no origination fees are required and no penalties are given on pre-payments. The rates are rewarding to borrowers that are credit worthy, and having a co-signer helps you get a loan easily and at a lower rate. To learn more, please get started here.