Student Choice

Giving students the credit they deserve

Student Choice Undergraduate Private Education Line-of-Credit

Type of Loan
  • Line of Credit: Apply just once – enjoy multiple draw benefit over entire undergraduate career**
  • Student underwritten for the cost of attendance (less other aid received) as certified by school
  • Annual draw requested by member with multiple disbursements up to school-certified amount**
 School Certified
  • School validates the student’s enrollment and financial need based on their COA estimate
  • Funds disbursed directly to school as specified
  • School disburses any excess to the student
 Co-Borrower
  • Not required but may help borrower meet approval criteria and qualify for a lower rate
 Loan Limit Amounts
  • Annual: Cost of Attendance (COA) less other financial aid received – as certified by the school (min. $1000)
  • Maximum Total (throughout undergrad): $75,000***
Rates
  • Rates are determined by individual credit union, and will be extremely competitive with the market.
  • Variable rate as based on 1-Month LIBOR or Prime index (as dictated by credit union).  Index adjusts quarterly (Jan, Apr, Jul, Oct).  Maximum rate of 15.00% APR* or 18.00% APR* (as dictated by credit union.)

Note:  Loan is not available for past due balances.

Interest
  • May be deferred/capitalized at repayment.
  • Interest paid is usually tax deductible (consult tax advisor)
Repayment Terms
  • 20 years if balance is less than or equal to $40,000
  • 25 years if balance is greater than $40,000
Disbursement
  • Funds disbursed directly to school at the time(s) specified during school certification.  Electronic certification processing fully supported.  School financial aid staff may contact loan processing at 877-654-5258.
Origination Fee
  • ZERO
Miscellaneous Fees
  • NSF – $20 (may vary by CU)Late – 5% of payment amount (may vary by CU)
Deferment
  • 60 months plus six months OR date of school separation/graduation plus six months (whichever comes first)
Repayment Options While in school (borrower’s choice):

  • Full deferment of principal and interest
  • Interest only
  • Principal and interest

After repayment begins (borrower’s choice before entering repayment):

  • Straight repayment over 20 or 25 years (depending on loan balance) OR
  • Graduated repayment for two years.  The graduated repayment option temporarily lowers monthly payments by amortizing the first two repayments years over a 40 year period and then over either 18 or 23 years for the remainder of the loan depending on the balance****
Pre-Payment Penalty NONE
Apply 24/7
Eligible Schools
  • Most 4-year public and private not-for-profit schools
  • Degree-granting program (Title IV)

Visit http://pgmfcu.studentchoice.org/ for a list of schools

Borrower Eligibility
  • Students enrolled at least half-time and making satisfactory academic progress
  • Must be a U.S. citizen or permanent resident alien
  • Borrower must join credit union to receive funded loan
Covers
  • Costs included in the school’s Cost of Attendance estimates, typically including tuition, fees, books, room and board and other related expenses.
Borrower Benefit
  • 0.25% rate discount during repayment for automated electronic payment

* APR- Annual Percentage Rate

**Subject to credit qualification and annual credit review.  Students must also meet the school’s Satisfactory Academic Progress (SAP) requirements.

***May vary by credit union.

****Mandatory repayment begins six months after school separation.  Monthly payment based on final loan balance and repayment choices.

http://pgmfcu.studentchoice.org/

Contact Cyndi Pursell at 570-836-0321 or c.pursell@pgmfcu.org for more information

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