Are you looking for the best review on BECU Student Loan Refinance then you are at the right place. If you are an individual seeking to streamline your student loan payments, potentially secure lower interest rates, and simplify your financial management, then BECU Student Loan Refinance is a valuable option for you.
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BECU is one of the most renowned student loan lenders and refinancers in the USA. The company offers the funds to the needy students to pay their educational expenses. Individuals from financially disadvantaged families aspiring to pursue higher education can secure funds from the company to cover all educational expenses. The loan granted can be used to pay tuition fees, campus charges, food, housing, traveling, books, and many more.
There are hundreds of loan refinancing companies in the USA and one of them is the BECU.
The biggest reason for such popularity of BECU is their advertisements claiming to offer student loans with lower interest rates and minimum costs. So to make it easy for you we have a researcher and provide all the required information about the company in this article.
For a broader understanding and insights into another reputable option, check out our detailed analysis of MEFA Student Loan Refinance.
What is BECU Student loan refinance?
Many students who are embarking on their college or higher education journey, whether they are first appearing in college or are seasonal students, find themselves in a dilemma when it comes to the repayment of student loan debt.
Moreover, in recent times, there have been several developments in the domain of student loans that have caused changes and heightened all these concerns for students. Hence, the paramount factor for students is to exclusively opt for a student loan from a company that maintains utmost transparency in all their agreements, terms, and conditions.
Here the name of BECU student loan refinance comes on the top. The company was founded in 1935. BECU stands for the Boeing Employee Credit Union (BECU), the company is a pioneer in providing conventional banking and credit union services, especially to the employees working in Boeing company.
But recently the company has evolved and introduced some new prototypes to its brochure. BECU has transformed into a non-profit organization providing various services to individuals. Some of these services are mentioned below, let’s have a look:
- Home loans and mortgages
- Retirement, investment, and estate planning
- Insurance
- Business banking services
- Student loans
- Banking
BECU can be your financial assistance in offering various financial products and funding services including the student loan to cover your educational expenses with low-interest loans.
The student loans offered by the company are facilitated through a collaborative effort with LendKey. LendKey is the platform where applicants can fill up their applications and give the final touch to their loan applications.
Eligibility Requirements for Student Loan
The needy students who belong to the family with a lower financial background and want to get financial assistance as an education loan from BECU need to satisfy some eligibility requirements. These eligibility requirements are mentioned below, let’s have a look at them:
1. Educational requirement:
The educational requirements for students are easy. The applicant needed to ensure that they have enrolled at least half-time in a course in a college, university, or recognized educational institution.
2. Academic qualification:
Unlike other loan lenders the BECU has a unique eligibility criteria. It looks for the students who have an excellent academic record. So, make sure to maintain a GPA of 2.0 or higher in your last academic semester while applying for the loan.
Also, the applicants need to provide the documents which confirm that they are not facing academic probation in any semester.
3. Age criteria:
The applicants need to achieve the age of majority in their state and for the minor students it is compulsory to find a co-signer or get the parent student loan.
Additionally, to qualify for the loan program you must become a credit union member. If you are a member then you need to follow an easy process of student loan approval. Currently, the company adopts a location-based system where the eligibility is based on your location.
To meet the requirements and qualify, the students need to reside, work, or attend school in Washington State. There are minor chances of approval for the individuals who reside in cities like Oregon and Idaho.
Key Features of BECU’s Student Loan Refinance
When it comes to refinancing your education loan, BECU offers education loans at low-interest rates and without any kind of burden of loan origination or application fees. The company offers loans with potential borrowing limits of up to $100,000 for undergraduate loans and $125,000 for graduate loans based on various.
BECU guarantees comprehensive financial assistance by considering factors such as the student’s financial score, annual income, and residential status. The aim is to ensure that students facing financial need receive the necessary support to cover their educational expenses. Some of the best features and specifications of the BECU are mentioned below, let’s have a look at them:
1. No Fee Hassle:
The best part of the BECU is that it eliminates fees for loan origination or while filling out the application which offers a straightforward and cost-effective borrowing experience to the applicants.
2. Generous Borrowing Limits:
The student who got quality loans will get substantial amounts for their education. The amount of around $100,000 is available for undergraduate loans and up to $125,000 for graduate loans.
3. Flexible Terms:
The only thing the students are worried about is the terms of the repayment. The BECU’s student loans come with a reasonable and flexible term which allows the students to repay the loan with a comfortable and reliable repayment period.
4. Competitive APRs:
Among hundreds of private lenders the BESU stands out due to their competitive APRs. As per the latest data the BECU offers competitive APRs starting at 5.81% which make it possible for the students to get cost-effective financing for their education.
5. Cosigner Flexibility:
The company allows students to obtain loans with a cosigner. Factors considered include the student’s residential status, annual income, and financial score. BECU ensures that financially disadvantaged students receive all the necessary funding to cover their educational expenses.
However, there are eligibility requirements for an individual to be a co-signer, which include U.S. citizenship with a valid social security number, eligible annual income, and more.
6. 0.25% Interest-Rate Discount:
The students get benefits from discounts including the discount of 0.25% on the interest rate by choosing auto-debit payments from your financial account. This will also promote responsible financial management for students.
7. In-School Payment Options:
One of the best parts of the BECU is that it allows the students to choose the-school payment option. Due to which the students, While in school to pay their repayments with two cost-effective options, these are:
- Option for interest-only payments with a minimum of $25 per month repayment.
- Choose fixed $25 payments which are initiated each month.
- Both of these ways lead to a minimum interest rate.
Navigating Inconvenience: It can be challenging and slightly inconvenient for college students to make repayments during school. As a solution, the BECU offers affordable options to ensure financial sustainability and reliability.
Disadvantages of BECU
Along with the benefits and advantages, there are some disadvantages of BECU as well. We have researched and shortlisted some of the disadvantages of the BECU student loan refinance, these are mentioned below, let’s have a look:
1. Potential issues:
When students are taking education loans from BECU or using them to refinance their federal student loans, it’s crucial to know about some potential issues. One of the biggest concerns is that the students will be detached from important federal benefits like income-driven payment plans, loan forgiveness deals, and putting off their payments from the repayment schedule.
2. Higher interest rates:
Another important thing is to compare the interest rates. The students can get a lower interest rate by switching from their student loan to BECU but it’s not always that way. Sometimes switching the lender might not give you the expected lower interest rate.
3. Depletion of credit score:
The credit score of the students is a big deal when they are switching to BECU student loan refinance. As per the eligibility requirements of the BECU, there is a need for a good credit score. While switching credit score will go down by a few points, which can negatively impact your credit score.
4. Financial burden:
Switching from your loan to the BECU comes with changing interest rates, meaning your monthly repayments are likely to increase if interest rates go up. This can financially impact your pocket.
One of the biggest advantages of BECU and other private lenders is that during tough times and financial crises, the private lenders might not be as flexible as federal student loans. Which makes the private lenders impose some additional or hidden costs on the students. That is why it is always recommended to go for federal loans.
5. Co-signing complications:
In federal loans, the co-signers can easily separate from the student loans but in the case of private lenders switching the repayment source from co-signers to the student might let them off the hook. This will make the process of switching more complicated.
6. No grace time:
The last disadvantage of the BECU is that it does not offer any grace time before the repayment time starts. Federal student loans provide a grace period, allowing you some time before the commencement of repayment. Switching up from a federal loan to BECU means you have to start paying right after you make the switch. This can be concerning especially if you need some time before you start repaying.
Moreover, you might lose important federal benefits like income-driven payment plans, loan forgiveness deals, putting off payments, and many more after switching to the BECU student loan refinance.
Contact BECU student loan refinance
For additional inquiries and related information, the individuals or students seeking for loan can contact LendKey directly by phone at (866) 291-6868 or via email at becu@lendkey.com.
FAQs
1. Is it possible to refinance both my federal and private loans through BECU?
Certainly, BECU offers the option to refinance both federal student loans and those obtained from private lenders. Nevertheless, it is crucial to consider a few factors before moving forward.
These encompass advantageous repayment choices, possibilities for loan forgiveness, extended loan terms, and various other options. So, make sure to be aware of all the pros and cons of refinancing your student loan. Also, compare the BECU with other loan providers to get the best possible deal to cover your educational expenses.
2. What’s a cosigner?
There are several needs and eligibility requirements you need to complete before applying for student loans. However, those who are unable to complete these requirements due to certain reasons like age, less annual income, residential status, and more need a co-signer.
A co-signer is a person who takes the guarantee of the repayment. He could be a family member, relative, or friend. An individual can become a co-signer only after meeting the eligibility requirements for a co-signer.
3. How much can I borrow from BECU student loan?
The amount that can be borrowed depends upon several factors including credit score, annual income, residential status, needs, and many more. On average one can get the minimum amount of $10,000.00 from the BECU for their educational expenses and on the other hand students can get the maximum amount of $1,25,000 for their graduation courses and $1,00,000 for their undergraduate courses once in a lifetime.
4. Will the borrower’s credit be checked?
Indeed, the loan application process involves a considerable amount of time and various formalities. As part of this process, the credit scores of the student, co-signer, and borrower are assessed before the loan amount is approved.
This is done to determine the creditworthiness of the borrower and to know whether he can repay the loan or not, if not then some other individual needs to be a borrower.
Conclusion
There are multiple private lenders in the USA but BECU Student Loan Refinance stands out as a reliable and sustainable choice for students seeking transparency, flexibility, and affordability in their education loans to pay out their fees.
The company offers a seamless educational financing experience to the students who get their loans approved. However, switching to the BECU might be non-beneficial for the students as the federal loans are offered by the government and come with plenty of schemes and discounts from time to time.
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