Read our DCU student loans and refinancing review to determine if the lender is a good fit for you if you’re interested in a student loan line of credit.
There are many different lenders available for private student loans. Credit unions are one of them. Many will require you to sign up as a member, but if you can take advantage of advantages like lower rates and more accommodating repayment options, it might be worthwhile. A unique student line of credit is also available from Digital Federal Credit Union, or DCU, that customers can use while they are still in school.
You might be unsure whether submitting an application is worthwhile given that the lender’s products are accessible nationwide. Check out the following DCU student loans review before you decide.
The Marlborough, Massachusetts-based Digital Federal Credit Union was established in 1979 and has its main offices there. It provides financial services and products across the U.S., including bank accounts, student loans, and student loan refinancing. S.
To apply and be considered for a student loan or refinance, borrowers must be credit union members.
You must fulfill one of the following eligibility requirements in order to join:
For more details, you can take a look at the list of eligible employers, organizations and communities on DCU’s member eligibility page.
DCU Credit Union Features
The following information is important to know about DCU’s student loans and refinancing options.
Interest Rates and Fees
The precise annual percentage rate, or APR, you’ll qualify for, like with other private student loan lenders, will depend on elements related to the kind of loan you select and your creditworthiness. Typically, variable-rate loans have lower annual percentage rates (APRs) than fixed-rate loans. However, these rates will vary based on modifications to the index.
DCU’s fixed-rate loans range from 5. 00% to 11. 00% APR for a student loan and 3. 50% to 8. 75% APR for a refinance. DCU’s variable-rate loans range from 3. 00% and 9. 00% for a student loan and 2. 50% to 7. 75% for a refinance.
The APR could change if you choose a variable rate, but DCU guarantees it won’t go above 18% or lower than the floor rate (the lowest possible rate for its variable-rate loan). You should keep this feature in mind to aid in creating a budget for your monthly payments.
Otherwise, DCU doesn’t charge many fees for its student loans. You won’t have to pay an application or origination fee. Additionally, DCU doesn’t impose prepayment penalties, so if you decide to make extra payments, you won’t have to worry about paying more fees.
While DCU does provide competitive APRs, it is a good idea to compare rates and terms with several lenders to see if you can find a better deal.
DCU is distinctive because it provides a line-of-credit structure for student loans. By doing so, you can obtain the loan just once and use it for all of your undergraduate or graduate studies. As you repay the loan, you can continue to borrow up to the maximum amount.
The type of loan you have will determine how much you can borrow:
To be eligible for a loan, you must be a U S. citizen or permanent resident attending an approved school.
Applicants will also need to meet the minimum credit requirements. According to reports, you must have a credit score of at least 720. There are no known income requirements, but you must be employed in some capacity. If you think you won’t be approved without a co-signer, you can also apply.
Additionally, students must meet their school’s requirements for satisfactory academic progress (SAP), which typically include having a specific GPA. Since each school has its own SAP requirements, you’ll need to speak with yours to learn what they are. Additionally, you must generally be the state’s majority age, enrolled at least half-time, and both of those requirements.
DCU will also conduct an annual review of your student loans to make sure you continue to meet its credit and academic requirements. Additionally, you must belong to the credit union.
Borrower can choose from the following repayment options:
The moment your loan is disbursed if you select the third alternative, interest will start to accumulate.
Should I Take Out a DCU Student Loan?
You must keep in mind that you must be a credit union member in order to refinance or obtain a student loan from DCU. Although there is a sizable list of member businesses, communities, and employers that qualify, it can still be limiting.
However, DCU might be worth considering if you don’t mind becoming a member and can meet the requirements for membership. Although DCU’s refinancing isn’t particularly impressive, the line-of-credit option might be simpler than taking out multiple loans.
A candidate for the Accredited Financial Counselor designation, Sarah Li Cain is a finance writer whose articles have appeared in publications like Bankrate, Business Insider, Financial Planning Association, Investopedia, Kiplinger, and Redbook. She is the host of Beyond The Dollar, a program in which she and her guests engage in frank discussions about how money affects their well-being.
Does DCU give student loan?
There are no application fees and no prepayment penalties for student loans at the undergraduate and graduate fixed rates. Our private education line of credit for undergraduate and graduate students will have a fixed annual percentage rate for the duration of the loan.
How do I apply for a 2022 student loan?
You must first fill out and submit a Free Application for Federal Student Aid (FAFSA®) form in order to apply for a federal student loan. Your college or career school will send you a financial aid offer based on the FAFSA form results, which might include federal student loans.
What is the deadline to apply for student loans 2022?
Deadlines for 2021–2022 For the 2022–2023 academic year, California’s deadline for a number of state financial aid programs was March 2, 2022. That’s a full year before the last federal deadline. Be sure to check your state’s FAFSA deadline.
How can I get a student loan immediately?
- Speak to your school’s financial aid administrator.
- Claim federal student loans.
- Take out small loans through your school.
- Consider private student loans.