Q: How do I apply?
A: Simply go online and fill out the easy one-time application. On average this takes about 10-15 minutes. Or you can call 855-626-6502 which also takes 10-15 minutes.
Q: I applied, now what?
A: Now your loan will be processed. You will need to print and fax or mail your signed documents, including proof of membership. Your loan will be certified at the school to make sure you don’t borrow too much. We will pay the university and if there are any additional funds remaining, they will be returned to the borrower. You have the choice to keep these funds for books and other costs. Remember this is a loan, not free money. You can reduce your debt by returning the funds.
Q: How do I get more money next year?
A: Simply go online and log into your account and submit a new draw request on your approved loan. An annual credit review is performed, but not another application.
Q: What expenses does it cover?
A: Cost of Attendance minus other financial aid received. Each college calculates differently but typically includes: tuition, fees, room and board, technology, meal plans, books, and other expenses. There may even be a different “off-campus” rate that includes rent and transportation.
Q: Is it too late to apply for loans?
A: You always want to apply for scholarships and grants first. Then make sure you take the maximum amount of federal loans, which tend to have lower fixed interest rates. If that’s not enough, next compare private loan options like our Student Choice private lending solution.
Q: How does it compare to the PLUS loan?
A: PLUS – 7.9% fixed, 4% Origination fee, this loan is the parents’ loan and can never be transferred to the student.
Student Choice – Prime index plus a margin – the current offered rate will be between 5.25% and 6.75% APR*, zero origination or prepayment fees, this is the students’ loan, and co-borrower can request to be released after 48 on-time payments.
Q: Do I need a co-borrower?
A: Some borrowers may not need a co-borrower. This is based on your credit score, gross monthly income, bankruptcies and student loans in default. If the student does not meet the minimum requirements, they need a co-borrower that does.
*APR = Annual Percentage Rate.
Your interest rate is variable and will change based on changes in an index chosen by 1st Ed Credit Union. The index is Prime, as published in The Wall Street Journal (“Index”). If the Index becomes unavailable during the term of this account, the credit union may substitute a new index after notice to you. The interest rate will be adjusted quarterly, based on a historical index chosen by the credit union. This quarterly adjustment will occur upon no less than forty-five (45) days written notice to you. Any increase in the index rate will increase the APR and the amount of your monthly payment.