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Why Private Student Loans Can Make a Difference

It’s no secret that earning a college degree can open the door to achieving your personal and professional dreams, enriching your mind while boosting your earning potential.

But these days, college costs are continually on the rise, posing financial challenges for many.

If you, your child, or someone you know is college-bound and exploring financing options, we’d like to share some information that could help.

For starters, we always recommend pursuing the lowest cost financing options first, including grants, scholarships, work-study programs and federal direct loans, which generally offer lower interest rates than private loans. However, those options still might not be enough to cover the costs of college.

That’s when Private Student Loans can help fill the gap, making it possible for students to achieve their educational goals.

Ease and Flexibility

In many ways, Private Student Loans offer an easier, more flexible way to help pay for college.

They typically have a simple application process, and don’t require a completed FAFSA (Free Application for Federal Student Aid). Private Student Loans generally are available with fixed or variable rates and may offer different options for repayment plans that fit your needs.

Most lenders don’t require payments on Private Student Loans while students are in school at least half-time, although making payments while in school can help in the long run by saving money and lowering the amount of accrued interest.

Nice Financial Advantages

Depending on the situation, students may be able to get better interest rates with Private Student Loans. For instance, if they, or a cosigner, have a healthy credit score, they may be eligible for more favorable interest rates.

Additionally, interest paid on Private Student Loans may be tax deductible.

The UW Credit Union Difference

UW Credit Union’s budget-friendly Private Student Loan options make it easier to for students to achieve their educational goals while minimizing their loan repayments.

Our in-school and post-college private loans offer several great advantages, including no fees or prepayment penalties, a beneficial 0.25% interest rate reduction when making automatic payments,* and deferred payments for in-school loans while students attend school at least half-time.

Additionally, if payments are made consecutively and on time after the first 36 months, a cosigner can be released from the loan.   

After graduation, students can refinance their direct student loans with us, making it easier (and less stressful!) to move on to the next exciting phase of their lives.

Best of all, UW Credit Union loan specialists are there when students and their parents need them, offering personalized support and guidance that’s in their best interest.

Take the Next Step

Once you become a UW Credit Union member, you can apply for a Private Student Loan – and the process is easy and stress-free.

To learn more and apply, visit our student loan web page, or visit a UW Credit Union branch near you. Or if you have questions, you can call us at 800-533-6773, ext. 2950.

We look forward to providing you with private loan solutions that are just the right fit for your needs!

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