Posted on June 22, 2016 by Jake Ward, CMSE – VP of Marketing
Federal loans may not be enough to cover the cost of your college education. Private student loans available through R.I.A. Federal Credit Union can be the answer to your funding needs.
What is a R.I.A. Federal Credit Union Private Student Loan?
The R.I.A. Federal Credit Union Private Student Loan can be used to pay for qualified educational expenses including tuition, room and board, books, and other school related expenses. Private student loans serve as a way for students to fill the funding gap between the cost of attending school and the amount of federal loans, grants, and available scholarships.
What is the difference between a private student loan and a federal student loan?
Federal student loans follow guidelines set forth by the U.S. Department of Education and typically offer fixed and lower interest rates compared to private student loans. However, federal loans, unlike most private loans, have borrowing limits, which may not allow a student to borrow enough to cover the entire cost of education. Private loans help students fill the funding gap between the cost of attending school and the amount of federal loans, grants, and available scholarships. Both private and federal student loans typically allow students to defer payments while in school and some offer economic forbearance options once a student completes school. Unlike federal loan programs, private lenders assess the credit history of the borrower and cosigner before making a loan.
How do I know if I’m eligible for financial aid?
Eligibility for federal, state and university funded financial aid is determined by completing the Free Application for Federal Student Aid (FAFSA). All students are strongly encouraged to apply for federal aid by completing the FAFSA, which can be obtained online at FAFSA Website.
How much financial aid am I eligible to receive?
The financial information you provide in the Free Application for Federal Aid (FAFSA) is used by the government to determine your Expected Family Contribution (EFC), which is the amount you and your family are expected to pay towards your education. The EFC is then subtracted from the cost of attendance for your respective school to determine the amount of financial aid you are eligible to receive.
What is an Expected Family Contribution (EFC)?
The EFC is a calculated assessment of how much your family is expected to contribute to your college costs. The EFC takes into consideration your family’s financial strength – income and assets. Other factors considered include the number of family members and number of family members in college.
Can I consolidate my student loans with R.I.A. FCU?
Yes, R.I.A. Federal Credit Union can consolidate and refinance your outstanding federal and/or private student loan debt. A student loan consolidation allows borrowers the ability to consolidate and refinance one or multiple loans into one loan at a potentially lower interest rate. Consolidating your student loans with R.I.A. Federal Credit Union could mean thousands of dollars in potential savings.
To see if you’re eligible for a R.I.A. Federal Credit Union private student loan or speak to one of our friendly loan experts.