UCU Student Line of Credit

 

University is expensive and the cost of post-secondary education is expected to rise year after year, outpacing inflation. As a student, you have to budget for tuition, textbooks, transportation, and in many cases, housing and food, all in pursuit of a degree. And the cost is even higher for students working towards their graduate or professional degrees.

What is a UCU Student Line of Credit?  

A UCU Student Line of Credit is a flexible, low-cost option to help you pay for expenses related to post-secondary education. You can borrow just the amount you need, when you need it, making interest-only monthly payments up to one year after leaving school.

How does a Student Line of Credit Work?

Qualifying UCU Student Members will be given access to a preset amount of money – with the option to borrow as little as needed, or up to the full amount of the Line of Credit.  While enrolled in school, the student will make interest-only monthly payments. Repayment of the principal borrowed will start one year after leaving school.

For Example:

If your Student Line of Credit is $10,000 and you only borrow $4000 to pay for expenses - you will be left with $6000 in remaining credit to use if needed.

While enrolled in school, you will make interest-only monthly payments calculated on the $4000 borrowed – not on the total $10,000 Student Line of Credit.

One year after you leave school your total monthly payments will be calculated on the $4000 borrowed plus interest. 

How Much Can You Borrow?

Once you are approved for a Student Line of Credit your limit is determined by your program of study. Undergraduate students can borrow as much as $40,000 while students enrolled in medical or dental school can borrow upwards of $275,000.

The maximum credit limit will be made available in equal installments for each year of study. For example, a $40,000 credit line for an undergraduate degree will be made available in $10,000 increments in each of the 4 years of study.

A full list of UCU Student Credit Line limits can be found here.

Competitive Interest Rates Based on your Program

The interest rate for medical and dental school students - UCU Prime Rate  

The interest rate for all other professional and graduate programs - UCU Prime Rate + 1%

The interest rate for undergraduate programs – UCU Prime Rate + 2%

Line of Credit Repayment Grace Period

UCU offers a 12-month grace period on the repayment of the amount borrowed – the grace period is 6 months if the student withdrawals from a program of study early. While you are enrolled in school, you will make interest-only monthly payments.

Manageable Repayment Schedule

After the 12-month grace period, you will start making monthly payments on the principal money borrowed plus interest. UCU offers the option of keeping the original Line of Credit agreement or converting the amount owed into a blended payment personal loan. A UCU loan expert will help you determine which repayment option is best for you.

How to apply for a Student Line of Credit?

If you are a UCU Member and enrolled in a post-secondary institution, you can apply for a UCU Student Line of Credit. You will need to provide proof of enrollment and a statement of tuition and residence fees. In some cases, you might need someone to co-sign your agreement – this person consents to make your monthly payments in case you are unable. The co-signer – who is usually a parent – must provide proof of employment.

Talk to a UCU Loan Expert

Book an appointment at your local UCU Branch to talk with one of our loan experts. Come in with your co-signer and bring all necessary documents with you to your meeting. Our loan experts will work with you to come up with a Line of Credit agreement that will help you pay for your post-secondary education expenses.

More information about UCU Student Lines of Credit can be found on our website.