Education: the most important investment you can make

FAQs

• Am I eligible for a student loan from United Texas?

  To be eligible, you must become a credit union member during the application process. You must also meet the following criteria:

  • US citizen or permanent resident
  • Enrolled at least half-time in an eligible school
  • Meet minimum credit requirements
• What are private student loans?

  Private student loans are credit-based loans for college that are used to pay for qualified educational expenses including tuition, room and board, books, and other school related expenses. A private student loan serves as a way for students to fill the funding gap between the cost of attending school and the amount of federal loans, grants, and scholarships available to them.

• What is the difference between federal and private student loans?

  Federal student loans are available through the US Department of Education and offer fixed interest rates. Private student loans are credit-based loans, feature fixed and variable interest rates, and are available through credit unions or banks.

• 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 www.fafsa.ed.gov.

• Do I need to complete the FAFSA in order to qualify for private student loans?

  No. However, we encourage you to complete the FAFSA each year to ensure that you take full advantage of grants and other federal aid you may be eligible to receive. Private student loans are a way for you to fill the funding gap between the cost of attending school and the amount of federal loans, grants, and scholarships available to you.

• What is the importance of a cosigner?

  Applying with a creditworthy cosigner not only increases your chance of approval, but also may lead to a lower loan rate.

• What are some tips to keep in mind?

  When applying for a student loan, remember to:

  • Exhaust all federal loans before moving on to private loans
  • Get started on your application early
  • Only request the amount you need for the current academic period
• What is the difference between consolidation and refinancing?

  When you consolidate student loans, you’re combining multiple loans together into one single loan, with one payment. You’re still paying the same total amount and same total interest. You now just have one loan instead of multiple loans.

  When you refinance student loans you basically consolidate them into a single loan with a new interest rate, new terms, and monthly payment amount. The lender will evaluate you and your creditworthy cosigner’s (if applicable) financial information to offer you a new low and a lower rate.

• Can I refinance my federal and private student loans together?

  If you want to combine your Federal and private student loans together, you have to do it through a private lender. The Federal Direct Consolidation Loan program does not consolidate private loans into Federal loans. However, many lenders in our network do allow you to combine your private and federal loans into one payment.

• Does it matter if I graduated and where I attended school?

  You must have completed an associates, undergraduate, graduate or doctorate degree from a Title IV eligible school to be eligible for student loan refinancing.

• What is the difference between interest rate and APR?

  The interest rate is simply the percentage of the loan amount that is charged for borrowing money. The APR reflects not only the interest rate, but also any other fees charged by the lender. The APR represents the total cost of borrowing and for that reason is usually higher than the interest rate.