Credit Unions Refinance Student Loans

8 min read

I was working at my job at the time I got laid off. I would have been able to continue to pay my student loans if not for the fact that I didn’t have any money coming in. My first thought was to take out a high interest loan with a bank, but that seemed wrong to me. So I looked into taking out a personal loan and trying to get that financed. That turned out to be even worse than a bank loan. When I did that I ended up getting screwed over by the credit union I had applied to. Here’s what happened:

The credit union sent me an email saying they were going to approve my online application and then call me back. As soon as I applied for the loan I started receiving calls. I said yes to them all. After I accepted the loan my APR went up to 30%. Now before you think that’s bad let me tell you something about that number. When you apply for a loan you can apply for an APR anywhere between 5% and 40%. There’s no way for me to know that number unless I apply for the loan. If I want to refinance I have to give them all my information. If I don’t they won’t do anything for me. They told me I could either keep paying the old amount and just adding a few extra payments or I could start making payments right away. I chose the latter. What I didn’t realize until after I picked that option is that now I’m locked into starting my payments on the date they chose instead of the date my current payment plan ends.

So I called them up. I told them how much I owed and asked them to increase my payment so I could make the minimum payment. They basically laughed at me. They told me that since they already took the money from me once I couldn’t ask for it again. I explained that I was still working and trying to get paid. They said that wasn’t their problem. I asked to speak to someone else. A woman came on the line and she was really nice. She said that they could only help people who were fully approved and that she would need to check back with me after everything was done. Then she hung up. That was the end of that.

After that experience I decided it might be best to go somewhere else. So I looked around some more. I found another place where I could use a service similar to the one I used in the beginning. I signed up for a free trial account and checked them out online. This company I’m talking about was actually better than the last place. In addition to being free they sent me a link to a site where I could find out the exact APR I’d be charged and I could compare it to the actual rate I was paying. They showed me how many points I’d be given for each dollar I put towards my loan. I finally settled on a place that offered me a 15 year fixed rate that gave me 6 points per $100.00.

Now before you think that’s good I should warn you that it’s not perfect. You’re still stuck with a monthly payment but it’s a lot lower than what I was originally paying. It makes sense though. If I put a lump sum down they’ll charge me less interest than they would if I made my payments. Another thing about it is that it isn’t a true zero percent interest rate because the interest is compounded daily. But the point is that it’s still a heck of a lot cheaper than what I was previously paying. I’ve been using this service ever since I refinanced. And it’s completely saved me hundreds of dollars in interest charges!

Credit Unions Refinance Student Loans

Credit unions are non-profit financial cooperatives owned and operated by their members. Their mission is to provide affordable financial services of excellent quality to help build local economies and strengthen America’s communities. By serving as a bridge between consumers and banks, credit unions help individuals gain access to short term loans that would otherwise not be offered.

Most students who borrow money from private lenders have high interest rates, whereas those who take out student loans from a credit union pay lower rates on average. Credit unions offer low fixed interest rates, long repayment terms (as long as 20 years), and no prepayment penalties. In addition, they often charge no origination fees.

Students who attend college in a state with a higher than national average unemployment rate benefit by taking advantage of lower rates provided by credit unions. According to the National Bureau of Economic Research (NBER), states with higher levels of joblessness tend to have higher unemployment insurance premiums. As a result, these states have higher interest rates on student loans. However, if you live in a state with a relatively low unemployment rate, credit unions may still be a good option for financing your education.

Many credit unions offer additional incentives to borrowers who use their services. These incentives include special discounts on car payments and mortgage loans, extended payment plans, and reduced monthly loan payments.

Depending on how much debt you carry, your lender may require you to make extra payments each month towards your credit card balances. If you decide to refinance your student loans at a credit union, you won’t need to worry about making any extra payments.

Credit Unions Refinance Student Loans

What Are Credit Unions?

A credit union is a cooperative financial institution owned and operated by its members for their mutual benefit. Members are referred to as shareholders and borrowers are called customers, debtors, or clients depending on the type of account they hold at the credit union. A credit union is different than a bank because banks are primarily regulated by federal law and their primary focus is serving the general public whereas credit unions are federally chartered not-for-profit organizations. Credit unions serve their members by providing banking products and services, including checking accounts, savings accounts, money markets, business loans, mortgages, home equity lines of credit (HELOC), and auto loans. Credit unions often provide additional financial services such as investment advice and retirement planning. Like a bank, a credit union may offer a variety of deposit options, such as time deposits, money market accounts, certificates of deposit, and small business loans.

How Do You Become a Member?

Credit unions do not require any prior relationship with the member before becoming a member. However, most credit unions have membership requirements like having a job or residence in the area where the credit union operates. Once you become a member, you can use your credit union’s ATM card anywhere around the country and earn rewards points. To find out if your local credit union is open on Saturdays, Sundays, holidays, and other days, visit the National Credit Union Administration website at www.nfca.org. If you are interested in opening an account, contact your local branch and ask them about membership requirements.

Why Should I Consider Opening a Savings Account?

Savings accounts are similar to checking accounts; however, instead of receiving checks, you receive interest payments each month. There are two types of savings accounts: traditional and online. Traditional savings accounts are managed by the credit union and pay interest based on a schedule set by the credit union. Online savings accounts are offered by other financial institutions and pay variable rates based on current market conditions. If you choose to open a savings account, you should consider the following:

Interest rate – the higher the interest rate, the more money you’ll make over time.

Minimum balance requirement – some savings accounts only allow you to withdraw funds once your account reaches a certain minimum amount.

Number of free transactions per year – many credit unions offer free transaction fees for those who maintain a high account balance.

If you plan to save for an upcoming event like buying a car or paying off student loan debt, you might want to consider an online savings account. If you don’t need regular access to your money, then a traditional savings account is likely best for you.

Can I Redeem Rewards Points for Cash Back?

Yes! Most credit unions offer cash back programs for members to redeem points earned from using your ATM card. While some credit unions pay out quarterly, others pay out monthly or biweekly. These reward programs can give you extra incentives to use your card regularly, so it’s always worth checking whether or not your credit union offers one.

What Is the Best Time to Open an Account?

Many people prefer to open a savings account during the summer months because interest rates tend to be lower. However, if you’re looking for ways to earn extra money, you might want to check for high interest rates in the winter months. If you’re thinking about taking out a mortgage, you’ll want to check the interest rates during the spring and fall since these are peak times for home sales.

Credit Unions Refinance Student Loans

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Credit Unions Refinance Student Loans

What Are Credit Union Loans?

A credit union is a financial institution owned and operated by employees who use their knowledge base to provide services to members. As a member-owned organization, the goal of these institutions is to help improve people’s lives, not just make money. Credit unions often offer products and services that traditional banks don’t, including low rates on personal loans, mortgages, auto financing, and even small business funding.

Is A Credit Union Right for Me?

While most banks focus on high yield savings accounts and checking accounts, credit unions focus on community banking. These institutions take pride in being part of the communities they serve, meaning they may offer different types of lending options than what we think of as “banks.” While these financial organizations do still lend money, most of them give priority to providing financial solutions for their local customers.

How Do I Get Started?

You can start applying for a loan at any time, and the application process is generally simple. You’ll fill out a short online application and submit supporting documentation. Depending on your situation, you could get approved for up to $50,000 for things like home improvements or vehicle purchases.

Why Should I Use A Credit Union Instead Of A Bank?

The first advantage of using a credit union over a bank is that you won’t have to pay interest on borrowed funds. When you borrow from a bank, you’re signing a contract stating that you’re going to repay the full amount of your loan plus interest. If you don’t pay back the total amount owed, the lender gets paid before you do. By paying only the interest, you save money.

The second benefit of using a credit union instead of a bank is access. Most banks aren’t open on Saturdays, Sundays, and holidays. There’s no need to worry about missing an opportunity to apply for a loan if you work weekends. Your credit union should be open, regardless of your schedule.

Finally, credit unions tend to perform better than banks. Because credit unions are owned and operated by members rather than shareholders, they’re less likely to cut costs to maximize profits. In turn, your credit union will charge lower fees to fund loans and offers better service.

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