FAQs
You’ve Got Questions,
We’ve Got Answers.
Do you have questions about Union Federal Private Student Loans? Browse our list of frequently asked questions to get answers fast.
Who is eligible for a Union Federal Private Student Loan?
The Union Federal Private Student Loan is available to undergraduate and graduate students who are enrolled at an eligible, 4 year higher-education institution in a degree-granting program 4 . Students and cosigners, if applicable, must be U.S. citizens or permanent resident aliens. Students who are Eligible Non-Citizens (DACA residents) are also eligible to apply but must do so with an eligible cosigner who is a U.S. citizen or permanent resident alien.
International students are eligible too! International students can apply with a qualified cosigner who is a U.S. citizen or permanent resident alien.
The student must be the legal age of majority or at least 17 years of age with a cosigner who is the legal age of majority 5 .
Many students will need a creditworthy cosigner to qualify for a Union Federal Private Student Loan. If you are concerned about being approved, or you don’t have substantial credit history, we recommend you consider strengthening your chances of being approved by applying with a qualified cosigner.
How much can I borrow?
- The maximum annual loan amount is $99,999. 3 The amount a student can borrow is determined by your school’s cost of attendance, minus any federal student loans, scholarships and/or grants.
- The aggregate maximum student loan debt allowed is $180,000. 3 This includes federal and private student loans.
- The minimum amount you can borrow is $1,000. 3
How can a cosigner help me get loan approval?
Applying with a cosigner who has good credit and positive income can help you satisfy credit criteria and may increase your chances of approval and receiving a lower interest rate. Learn more about cosigners.
Can my loan cover past due balances?
Absolutely – Union Federal loan applications for past due balances will be accepted up to twelve calendar months following the academic period for which the applicant was enrolled or twelve calendar months after the applicant’s graduation date.
How can I make sure my school gets the loan funds on time?
Applying early and providing supporting documentation electronically helps get money to your school fast. Schools must certify your requested loan amount, and if you apply close to when a semester or school years starts, it may take them time to certify and delay your loan disbursement. If you’re unsure of the school’s loan deadlines, contact the financial aid office or check the school website for a published timeline.
If you’re concerned about timing, you can speed up the process by submitting all supporting/required documentation electronically. In addition, choosing to electronically sign/accept documents within the Loan Packet (Credit Agreement, Applicant Self-Certification form, Approval Disclosure) expedites the process.
When will I start making payments on my loan?
The Union Federal Private Student Loan has four repayment options 1 2 :
- Immediate Repayment: The first monthly payment of principal and interest will be due approximately 30-60 calendar days following the final disbursement. You will pay down your loan while still attending school and will owe less in the end. The minimum monthly payment is $50.00.
- Interest-Only Repayment: Pay only the accrued monthly interest while in school. Principal and interest payments begin six months after graduation or dropping below half-time status. This reduces the overall cost of your loan, but you’ll only be responsible for making moderate payments while you’re still attending school.
- Flat Payment: Pay a flat $25 per month while enrolled in school. All accrued, unpaid interest will be capitalized (added to the loan balance) at the time of repayment. This option available for loans of $5,000 or more.
- Full Deferment: Defer all principal and interest charges while in school at least half-time. Interest will accrue during the deferment period and will be capitalized (added to the loan balance) at the time of repayment.
Why do I need to complete an Applicant (Borrower) Self-Certification Form?
The Applicant Self-Certification is required by the federal government in an effort to provide more transparency to borrowers. This form includes cost of attendance and expected need information, and is available in the online application, where it can be electronically signed and submitted. If you prefer, the form can be obtained from your school’s financial aid office. You will need to know your total cost of attendance and expected financial assistance to complete this portion of the application process.
What is an Application and Solicitation Disclosure (ASD)?
Regulations governing private education loans require three disclosure documents be provided to borrowers during the application process: an Application and Solicitation Disclosure (ASD), an Approval Disclosure, and a Final Disclosure. The ASD displays current interest rate ranges, loan cost examples, federal loan alternatives, and other general loan information.
When an applicable student and cosigner apply for the Union Federal Private Student Loan online, the ASD will be presented electronically. Completion of an application is not required in order to view an ASD with current interest rates; however, all applicants, including prospective cosigners, must acknowledge that they have reviewed this disclosure before continuing the application process.
FAQs
Who is eligible for a Union Federal Private Student Loan?
The Union Federal Private Student Loan is available to undergraduate and graduate students who are enrolled at an eligible, 4 year higher-education institution in a degree-granting program 4 . Students and cosigners, if applicable, must be U.S. citizens or permanent resident aliens. Students who are Eligible Non-Citizens (DACA residents) are also eligible to apply but must do so with an eligible cosigner who is a U.S. citizen or permanent resident alien.
International students are eligible too! International students can apply with a qualified cosigner who is a U.S. citizen or permanent resident alien.
The student must be the legal age of majority or at least 17 years of age with a cosigner who is the legal age of majority 5 .
Many students will need a creditworthy cosigner to qualify for a Union Federal Private Student Loan. If you are concerned about being approved, or you don’t have substantial credit history, we recommend you consider strengthening your chances of being approved by applying with a qualified cosigner.
How much can I borrow?
- The maximum annual loan amount is $99,999. 3 The amount a student can borrow is determined by your school’s cost of attendance, minus any federal student loans, scholarships and/or grants.
- The aggregate maximum student loan debt allowed is $180,000. 3 This includes federal and private student loans.
- The minimum amount you can borrow is $1,000. 3
How can a cosigner help me get loan approval?
Applying with a cosigner who has good credit and positive income can help you satisfy credit criteria and may increase your chances of approval and receiving a lower interest rate. Learn more about cosigners.
Can my loan cover past due balances?
Absolutely – Union Federal loan applications for past due balances will be accepted up to twelve calendar months following the academic period for which the applicant was enrolled or twelve calendar months after the applicant’s graduation date.
How can I make sure my school gets the loan funds on time?
Applying early and providing supporting documentation electronically helps get money to your school fast. Schools must certify your requested loan amount, and if you apply close to when a semester or school years starts, it may take them time to certify and delay your loan disbursement. If you’re unsure of the school’s loan deadlines, contact the financial aid office or check the school website for a published timeline.
If you’re concerned about timing, you can speed up the process by submitting all supporting/required documentation electronically. In addition, choosing to electronically sign/accept documents within the Loan Packet (Credit Agreement, Applicant Self-Certification form, Approval Disclosure) expedites the process.
When will I start making payments on my loan?
The Union Federal Private Student Loan has four repayment options 1 2 :
- Immediate Repayment: The first monthly payment of principal and interest will be due approximately 30-60 calendar days following the final disbursement. You will pay down your loan while still attending school and will owe less in the end. The minimum monthly payment is $50.00.
- Interest-Only Repayment: Pay only the accrued monthly interest while in school. Principal and interest payments begin six months after graduation or dropping below half-time status. This reduces the overall cost of your loan, but you’ll only be responsible for making moderate payments while you’re still attending school.
- Flat Payment: Pay a flat $25 per month while enrolled in school. All accrued, unpaid interest will be capitalized (added to the loan balance) at the time of repayment. This option available for loans of $5,000 or more.
- Full Deferment: Defer all principal and interest charges while in school at least half-time. Interest will accrue during the deferment period and will be capitalized (added to the loan balance) at the time of repayment.
Why do I need to complete an Applicant (Borrower) Self-Certification Form?
The Applicant Self-Certification is required by the federal government in an effort to provide more transparency to borrowers. This form includes cost of attendance and expected need information, and is available in the online application, where it can be electronically signed and submitted. If you prefer, the form can be obtained from your school’s financial aid office. You will need to know your total cost of attendance and expected financial assistance to complete this portion of the application process.
What is an Application and Solicitation Disclosure (ASD)?
Regulations governing private education loans require three disclosure documents be provided to borrowers during the application process: an Application and Solicitation Disclosure (ASD), an Approval Disclosure, and a Final Disclosure. The ASD displays current interest rate ranges, loan cost examples, federal loan alternatives, and other general loan information.
When an applicable student and cosigner apply for the Union Federal Private Student Loan online, the ASD will be presented electronically. Completion of an application is not required in order to view an ASD with current interest rates; however, all applicants, including prospective cosigners, must acknowledge that they have reviewed this disclosure before continuing the application process.