A majority of parents do not have enough money saved to put their children through college without some financial aid.  Fortunately, there are funds available to help pay for higher education.  Pre-planning is the key.  Before you apply for a loan, you must plan your career and select schools.  For help with this, check the Mapping Your Future web site.

Before you can apply for financial aid, you must complete a FAFSA form.  (Free Application for Federal Student Aid.)  When completed, this form is processed by the U. S. Department of Education and used by colleges to determine student eligibility for aid.  This form is also available through your high school or public library.  Do not complete this form until after January 1.  The FAFSA will determine your expected family contribution and this figure will be used by all colleges you apply to.  For more information on financial aid for students, check out the U. S. Department of Education Student Guide.

Apply for need-based aid as soon as possible after January 1 of the year in which you will begin college.

The Federal Family Education Loan Program (FFELP) has two loan options: Stafford Loans and PLUS Loans.  Your Credit Union provides the money for these low-interest loans under the FFELP program. Your college's financial aid office will determine your eligibility for one of these loans.

Federal Stafford Loan (Students apply for these loans)
Subsidized Stafford Loan eligibility is based on financial need and features deferment of principal and interest charges while enrolled at least half-time.  The government pays interest for the subsidized loan until repayment begins.  Repayment begins six months after graduating, leaving school, or whenever enrollment drops below half-time and repayment may run up to 10 years.

Unsubsidized Stafford Loans are for independent students and dependent students who do not qualify for the maximum subsidized loan.  Eligibility for this loan is NOT based on financial need.  The borrower pays all interest charges for the unsubsidized loan, but at an extra cost to the borrower, the interest charges can be deferred.

Federal PLUS Loan (Parent Loan for Undergraduate Students.)  These loans are designed for parents who do not have enough ready cash to contribute to their child's college finances.  Eligibility is determined by the school, but it is not based on need.  However, the borrower must have a good credit history.  The parent may borrow up to the difference between school costs minus the estimated financial assistance.  Repayment by the parent begins within 60 days after the loan is fully disbursed.

Consolidation Loans

Congratulations, you’ve graduated and now it is time to get off on the right financial foot.  After your Federal Stafford loan six-month grace period has ended, you will need to begin making payments on your student loan(s).  Regardless of where you originally got your loan, you may be able to save by consolidating your loans with a fixed-rate Consolidation loan at your Co-op Credit Union. 

A variety of tools for calculating the cost of your loan and examining the potential benefits of loan consolidation are available at Great Lakes Higher Education. 

When applying for a consolidation loan, use the Credit Union Consolidation Loan Lender number which is 871703. 

OTHER AID SOURCES

Home Equity Loans - Homeowners borrow funds against the appraised value of their home.

Alternative Loans - Loans directly from the Credit Union.  Repayment plans are flexible, rates are competitive, and approval is based on credit history.

Savings Loans - Money in savings accounts or certificates of deposit accounts can be used as security for an education loan.

Grants and Scholarships - Check with your financial aid office.  When you fill out the FAFSA form, you automatically apply for a Pell Grant.  Your high school counselor will also give you a list of all the grants local scholarships available.

This student-loan information is subject to change.  Check with your financial aid offices for the most current information.