Student Loan FAQs

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.

It usually takes about two weeks to receive the Student Aid Report, or SAR. The SAR is received after the Department of Education processes your FAFSA information, and a copy of the SAR is sent to any schools listed on your FAFSA. After a school receives your SAR, it can take approximately 2-4 weeks to process your information and generate an award letter. You can accept and reject portions of the financial aid package—pay attention to timelines and due dates the school may have.

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. 

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 stop by any UW Credit Union branch or contact us.

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.

We ask for four years of credit history (not including student loans and authorized user accounts), a satisfactory credit score and the ability to comfortably afford the monthly payment. If you don’t have four years of credit history, you can also apply with a cosigner. A cosigner may also help you obtain a better interest rate, if you don’t have credit history.

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.