Credit Union Student Loans
Benefits of Credit Union Student Loans
Going to college is an exciting time filled with questions like: What major should I choose? Will I like my dorm-mates? What kind of parties are on campus? But one of the most important questions and also most daunting is: How will I pay for college?Most American college-bound students need to borrow money to pay for their continued education. Even after applying for federal financial aid, they may find that it’s still not enough to cover all the costs of attending college and they will need to find a private lender to bridge the coverage gap. Credit union student loans are one of the best options available because they typically offer lower interest rates, exceptional customer service and they work for you – not stock holders.
What Are Credit Unions?
Credit unions are not-for-profit cooperative financial institutions that provide financial services for their members. Being a cooperative, credit unions are owned by their members and not by stockholders. Funds are continually being reinvested in the credit union to provide better service and value. Although credit unions have community roots, they still offer many of same financial services as large national banks.
Credit Union Student Loan Rates Are Lower
Credit union student loan rates are typically lower than large national banks because they are not-for-profit organizations and not owned by stockholders. Any profit credit unions make can be reinvested with you as a member, which translates into dividends, lower interest rates, and lower service fees. As member-owned financial institutions, credit unions serve YOU, the member.
Credit union student loan rates can be even lower if you take out a loan with a cosigner. If you are starting your college education and have not established enough credit, having a creditworthy cosigner will increase the chance of you getting approved for a loan with a lower interest rate since you will be seen as a lower-risk borrower. Lower interest rates help you save significantly over the life of a loan.
Exceptional Customer Service When Applying for Credit Union Student Loans
You can expect prompt, friendly service when you are applying for credit union student loans. Credit Unions are consistently the winners in customer service according to recent ratings on the American Customer Service Index. Credit unions have community roots and prioritize their members above anything else.