Frequently Asked Questions
General FAQs
CU Student Choice was founded in 2008 by a group of credit unions who wanted to provide innovative private student lending solutions for borrowers. Today we partner with 300 credit union lenders to provide options for your education borrowing needs, and can help match you with one!
In the past, credit union membership was somewhat limited based on where members lived, worked, worshipped, or attended school. The good news is just about anyone can join a credit union now and take advantage of the benefits of being a member!
Credit unions operate to serve their members and communities. One way they do that is by promoting thrift and offering competitive rates with a focus on the best interest of the borrower – in this case students. When you choose your credit union to pay for college, you’ll benefit from great rates, low fees, convenient repayment terms, and most importantly, a life-long relationship with a lender you can trust.
Credit unions are not-for-profit organizations that exist to serve their members rather than maximize corporate profits. Like banks, credit unions provide a variety of financial services, but as member-owned cooperatives, they focus on providing a safe place to save and borrow at reasonable rates while returning income to their members in the form of dividends.
Private Student Loan FAQs
Information you’ll need to successfully complete the application:
- Personal information (such as name, date of birth, Social Security number)
- Sufficient income information for either the borrower or co-applicant (if applicable)
- School enrollment information, if known
- Amount needed for your current school term
- If applying with a co-applicant, you’ll want to have them present. The co-applicant will also need to provide the same type of personal information as the student borrower. If they cannot be present, you should have their primary email address on hand – we’ll send them a notification to input their information.
Processing times vary based on time of year, document submission, and the school’s own certification process. In general, you can expect the process to take anywhere from 5-45 days, depending on the documentation available.
Our private student loans can be used for any items listed in your school’s cost of attendance, or other education-related expenses. The amount you are eligible to borrow will be certified by your school, and the funds are sent directly to your college.
If some of the loan will be used to cover items not directly paid through the school, such as books, off campus rent, or a laptop, the school will issue you a refund for the excess amount.
You may choose to make interest-only payments while in school; defer both principal and interest payments until six months after graduation; or make full payments while in school. If you defer both principal and interest payments during school, interest begins accruing at disbursement and will be capitalized when you enter repayment.
The Department of Education clarifies that the term “Stafford Loan” refers to a subsidized or unsubsidized Federal Stafford Loan made to students on or prior to July 1, 2010. However, many people and schools also informally use “Stafford Loans” or “Direct Stafford Loans” to refer to both direct subsidized and unsubsidized student loans made via the William D. Ford Federal Direct Loan (Direct Loan) Program. When a school says they offer “Stafford Loans”, this means they offer Direct Subsidized Loans and Direct Unsubsidized Loans. Read the full article on the Federal Student Aid website.
Yes. You must be continually enrolled in a degree-granting program and meet your school’s minimum Satisfactory Academic Progress (SAP) criteria to be eligible. For fall and spring terms, you must be enrolled at least half-time. For summer term, you may be enrolled less than half-time. Should you drop below half-time in the fall or spring, withdraw during any term, or fail to meet SAP requirements, your funding request can be denied, your line of credit may close, and you may enter repayment.
Graduated Repayment is repayment of principal and interest using an extended amortization period intended to lower the monthly payment amount, after which payments are higher and based on the remainder of original term.