CU Student Loans is a partnership of Credit Unions offering private student loans to those who need funding above and beyond what they are able to get through grants, scholarships, and Federal loans. The advantage of using a Credit Union, as opposed to a bank, is that Credit Unions are not-for-profit. This means that more savings are passed on to you, rather than fees, because you are a part of the Credit Union; you have to be a member in order to use their services.
The savings are also passed on to you as a graduate looking for low interest rates when consolidating your private loans. Lowering your interest rate is the best way to get out of debt sooner. You can lower your payments by lengthening your term, but this costs you more in the long run because you end up paying more interest. Depending on your life situation, this could be a good option. When establishing a promising career or business venture, you might be looking for a small payment for the short-term. CU Student Loans does offer an “Interest-Only Repayment Option” for four years. There is no penalty fee for pre-payment. So, you can put down lump-sum payments or pay the whole thing off if you come into some money.
Sometimes you get the best rate with a certain term, like 15 years. Since there is no pre-payment penalty, looking at the interest rate is more important than looking at the term. The lower monthly payment can be deceiving, because a longer term would mean a smaller payment but might cost more in interest.
The CUStudentLoans website has a loan consolidation calculator, which can help you determine if using a Credit Union would be a good option for you. Then there is a quick application to see if you are eligible. There are certain criteria you have to meet, like being a Credit Union member. The other requirements are:
You must be a U.S. citizen or permanent resident.
You must have graduated from an eligible school within the past five years. A list of qualifying schools is available on the website.
You must have a secure job with a salary of at least $2,000 per month. The requested loan amount also cannot exceed your annual income. A co-signer’s income can count towards meeting this condition.
Having a co-signer is recommended. If you have someone with good credit backing your loan, you will have the benefits of a lower interest rate, greater chance of acceptance, and faster approval. Approval can be as quick as a week but can also take up to 60 days. The co-signer can be released from the contract after 12 months if you make your payments punctually and consistently. This doesn’t apply to interest-only payments; the payments must be principal and interest payments to apply.
As well as having a co-signer with a good credit score, having a good credit score yourself will increase your chances of getting the good rate and approval you are seeking. Also, doing some research and knowing what other consolidation options are available to you will give you some leverage in your dealings with any lender. Here more article in same topic: http://studentloanconsolidationreviews.net
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