The CU Student Loans is a great network that comprise of more than 160 non-profit credit union lenders. The lenders’ main goal is to offer all the members with an option that is more cost-effective based on the programs of private student loan. The CU Scholar Private Student Loan and the CU Grad Private Student Loan Consolidation are the two loan products being offered by the program.
Benefits of CU Student Loans
There are several benefits to borrowers of CU Student Loans that ensure the burden of loan payment is reduced. For example, the unemployed borrowers of about six months after college graduation can request loan interest expense during the first two years during repayment status. This benefit is termed as “Initial Interest-Only Option”. It’s requested in writing and has a grace period of 6 months.
Furthermore, borrowers can request forbearance in case they graduated for over two years ago. Only unemployed borrowers facing unemployment, underemployment and face financial constraints are eligible to apply for forbearance. The maximum forbearance time for CU student loans is 18 months and is granted in increments limited for 6 months. The forbearance form should be completed by applicants and make their payments until they are notified showing approval to their request.
Up to an amount of $120,000 for undergraduate debt and $160,000 for graduate debt can be borrowed by individuals. Moreover, no original fee is charged to student borrowers with a reduction percentage of 1% whereas 10% the total loan principal should be repaid during the full repayment period. In case you want to cancel your loan within 30 days of the period of disbursement, no fees interest will be charged.
One can choose from two CU Student Loans types from i.e. proactive payment and the interest-only. With the repayment plan of interest-only, it’s the responsibility of the borrowers to make their full monthly interest loan payments while they are still enrolled in school. Borrowers enter the repayment status automatically after 6 months upon leaving school. Therefore they are responsible for settling the full interest and the principal payments.
All accrued interests that are yet to be paid are added to their outstanding loan balance the time borrowers get at the end of the in-school period.
There some things that one should consider before sending an application to the CU Student Loans program. Most of the cases, you are eligible for the CU Student Loan program in case you’re within the membership field of credit union that depends on the home location, company where you work or worship place.
You should have a look on the score of your credit before you consider applying for a student loan. Because of the poor or small credit history, there is a likelihood that they cannot qualify for a loan unless they have a co-signer meeting the credit history and monthly gross income that is needed
One should know that most credit unions need students to show their acceptance letter from the university before sending the application form for their loan. This will enable the credit union validate primary objective of the student for applying for a loan.
Borrowers are offered a number of benefits by the CU student loans, even if one should consider other factors before applying for a loan. It’s advisable to apply for a student loan after analyzing and exhausting all the options of possible scholarships, federal aids and grants. When you do this, greater financial issues of loan debt payments can be avoided.