UCU Student Line of Credit

Attending university or college is already expensive and the cost of post-secondary education is expected to increase year after year, outpacing inflation. As a student, you have a lot of responsibilities, including planning to pay for your education. Along with your studies, you also need to budget for things like tuition, books, transportation, and in many cases housing and food. For those pursuing graduate or professional degrees, the cost may be significantly higher.

If you need help managing your expenses related to post-secondary education, we can provide some assistance with our UCU Student Line of Credit.

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 your university or college expenses. 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 have access to a line of credit with a preset credit limit. Once approved, you will have the option to borrow as little as you need, or up to the full amount of your preset credit limit. While enrolled in school, you will make interest-only monthly payments on your loan. Repayment of the principal amount borrowed will start one year after you graduate.

For example, if your UCU Student Line of Credit is $10,000 and you borrow $4000 to pay for expenses - you will be left with $6000 in 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 of your student line of credit. One year after you graduate your total monthly payments will be calculated on the $4000 borrowed plus interest. 

How Much Can You Borrow?

If you are approved for a UCU Student Line of Credit, your preset limit will be 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 you withdraw from school 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 who 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 online 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.