Student Loan FAQs

Federal student loans are provided by the government and come with interest rates, terms and conditions set by law. They offer various repayment options, including income-driven repayment plans. On the other hand, private student loans are issued by non-governmental financial institutions. The interest rates, terms and conditions for private loans are determined by the lender and depend on the creditworthiness of the borrower and/or co-signer. Standard underwriting criteria will apply.

The best time to start your Private Student Loan application is in June as schools start processing requests during the summer months for the upcoming fall semester.

Be sure to apply for financial aid through FAFSA (Free Application for Financial Student Aid) and explore all available grants and scholarships first.

Variable Rate: Quarterly (every three months)
Fixed Rate: Fixed for the life of the loan and does not change

A borrower can refinance their loan balance from a variable rate to a fixed rate (or vice versa) by submitting a new loan application. The balance cannot be simply transferred from one loan type to another.

A typical Private Student Loan will take 4-6 weeks from the start of the application to the finish. This includes the review of the application, certification by the school, approval of Truth-in-Lending Disclosure, a Right of Rescission period, and processing time by the school. Note that times may vary and are often dependent upon the borrower or school. Funds are disbursed directly to the school. If a member is expecting a refund from the loan proceeds, their school will issue the refund to them in the manner the student set up with the school, either through ACH or paper check.

Yes. Any student who is enrolled at least half-time at any 4-year, public or private, not-for-profit school located in the U.S., any WI technical college, or any UW Colleges campus is eligible for this loan. View a full list of schools.

Borrowers can make payments at any time while in school. Payments can be set up online on Firstmark Services’ website, including setting up automatic payments to receive a rate discount. You can also set up payments directly in Web Branch using Web Pay.

The cost. Similar to the PLUS Loan, our Private Student Loan offers a low, fixed rate. However, our loan has no additional fees. Fees for a PLUS loan equal a percentage of the total amount borrowed, which is withheld at disbursement.

If a borrower applies with a cosigner, the better of the two credit scores will be used to determine the rate of the loan.

A student who is a non-citizen must meet the following requirements to be eligible to apply:

• Have an ITIN or Social Security Number.
• Have a cosigner that is a US Citizen or Permanent Resident with a Social Security Number and US mailing address.
• Provide current documentation of status, such as, student Visa, work Visa, DACA. Copies of new or renewal applications are not acceptable.

It’s important to complete the Free Application for Federal Student AID (FAFSA) because the information provided is used to determine what federal and state grants or loans you may qualify for. It is required to receive federal, state or school-based aid. The deadline to complete a FAFSA depends on the school you are interested in. However, the availability of grants is limited, so it's best to submit the FAFSA as soon as possible. Get started at fafsa.ed.gov. Be sure to follow up with the school you plan to attend for information on their deadlines.

Students and their parents must each complete a part of the FAFSA. It's a great opportunity for younger students to be involved in and learn the process.

Yes. Most students will at least qualify for an unsubsidized federal loan. These loans are not based on a family's financial need. Interest accrues from the date the loan is disbursed. There are also subsidized loans, which are based on financial need. If a student qualifies for a subsidized loan, the government covers the interest while the student is in school at least half-time.

Look up the cost of attendance on the websites of the schools you’re interested in attending. Subtract any federal aid and scholarships. The amount remaining is your out-of-pocket expense. Also, some schools’ financial aid websites offer cost of attendance calculators. If you need additional funds, we offer Private Student Loans, but be sure to exhaust federal aid first.

Colleges and universities won't discuss students’ information with parents without a release signed by the student. See your school's policy for more information.

Disbursements are not made until the semester starts. If a housing down payment is needed prior to the start of school, be sure to plan accordingly.

UW Credit Union does not currently offer student loans for career training programs including most short term-certificates, diplomas or other programs ineligible for financial aid. Your school needs to certify eligibility. Please contact us for further information if needed.

Refinancing your student loans can help you pay them off quicker. You could potentially lower your monthly payment, if that’s important to you. Lowering your interest rate or shortening your repayment term will result in paying less in interest. If you have multiple loans, having only one payment to manage each month can be achieved by refinancing. We offer terms to fit your situation—choose from a 5, 7, 10 or 15-year term.³

Not sure if refinancing still makes sense for you? Our team can talk you through your refinancing options.  We can also provide estimates on what refinancing would look like for you.

We can help you calculate your savings, as well as give you estimates for all your options, to help you select the loan that best suits your budget. Simply call our educational lending team at 800-533-6773 ext. 2950.

If you’re having budget challenges, you can also meet with a financial specialist for a no-cost Credit Consultation. During a Credit Consultation, we’ll review your full financial picture and look for ways to reduce payments and save interest on all your loans. Get started by booking a Credit Consultation.

You can refinance private and federal student loans. Parents can also refinance PLUS loans, and children can refinance PLUS loans originally held by their parents. Keep in mind that if you choose to refinance federal student loans, you will lose the benefits associated with them, like the ability to defer payments if you go back to school and loan forgiveness through the Public Service Loan Forgiveness Program. If you have multiple student loans with different rates, you can decide to refinance only the higher rate loans.

You’ll need current student loan statements that include total loan balances, interest rates, monthly payments, and an address for the servicer to mail a payoff check to. We’ll confirm balances and verify where the payoff needs to be sent. It takes 2-4 weeks, on average, until your new loan is funded. It may take 1-2 weeks for your lender to process your payoff, so it’s possible that you’ll still have to make a payment to them before the payoff is processed. If this should occur, the lender sends the extra funds back to us to apply to your new loan as a refund. Depending on the amount of a refund, we will either call you or deposit it into your member savings account. 

No, payments cannot be deferred if you return to school.

Borrowers are typically parents of students, but that is not a requirement. Anyone who meets the credit and eligibility requirements can take out a family loan, including grandparents, other family members and friends.

The application requires the borrower to provide the student’s information, which includes name, address, Social Security number, date of birth and school the student is attending. This is needed so we can confirm the student’s eligibility and enrollment, and coordinate sending the funds to the school.

Repayment begins approximately 30 days after the first disbursement. There is no deferment offered for the Family Loan. The minimum monthly payment is $50.

An applicant must be the age of majority for the state in which they reside (age 18 in Wisconsin), be a U.S. citizen/national or permanent resident with a Social Security number and have satisfied the credit requirements at the time the loan is reviewed. The student on the application must have a Social Security number or ITIN and be enrolled at an eligible school at least half-time in a degree-seeking program.