If you live in Wisconsin and want to repay your student loans faster, the UW Credit Union student loan refinancing option may be a better choice. The UW Credit Union provides a streamlined online application for student loan refinancing that you can easily complete.
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UW Credit Union (UWCU), located in Madison, Wisconsin, is a member-owned, nonprofit financial institution dedicated to enhancing the financial well-being of its members.
By refinancing your student loans with UW Credit Union, you can streamline your high-rate student loans while saving both time and money. The process involves replacing one or multiple existing student loans with a new loan with a different interest rate, a new term, and a single monthly payment.
Check out RISLA Student Loan Refinance alongside UW Credit Union’s options to make an informed decision.
The purpose of this article is to outline the details of UW Credit Union student loan refinancing, highlighting the potential benefits that come with refinancing your student loans through this federally insured financial institution.
UW Credit Union Student Loan Refinance Eligibility Criteria
To be eligible for UW Credit Union student loan refinancing, you must meet certain eligibility criteria. These include:
- Credit Score: You must have a good credit score. It increases your chances of qualifying for refinancing. UW Credit Union does not disclose the minimum credit score for student loan refinancing.
- Citizenship: Borrowers must have US citizenship or permanent residency to qualify for UW Credit Union student loan refinancing.
- Minimum Income: Borrowers must have a minimum annual income of $25,000.
- Loan Limits: You must have a minimum of $5,000 to refinance your student loan.
- Graduation Requirement: Degree requirements are not disclosed.
Loan Refinancing Options Offered by UW Credit Union
- Federal student loans
- Private student loans
- Private parent loans (in either name)
- Federal Parent PLUS loans (in either name)
You can choose a loan term of 5, 7, 10, or 15 years for UW Credit Union student loan refinancing.
UW Credit Union Student Loan Refinance Rates
UW Credit Union student loan refinance fixed rates range from 6.89% to 10.65%. The range of variable rates is 6.83% to 10.13%. Keep in mind that signing up for autopay always entitles you to a 0.25% interest reduction on the lowest rates.
While variable rates have climbed by 103.5% on the low end (from 3.34% APR) and 52.6% on the high end (from 6.64% APR) in 2023, UWCU has not changed its fixed rates for new loans. The lowest and highest starting variable rates climbed by 130.3% and 32.8% in 2022, while UWCU boosted its lowest and highest possible fixed rates by 138.4% and 49.0%, respectively
Refinance Loan Rate
| Loan Term | Fixed Rate | Variable Rate |
| 5 Year | 6.89% – 9.15% | 6.83% – 9.33% |
| 7 Year | 7.40% – 9.65% | 7.13% – 9.58% |
| 10 Year | 8.15% – 10.15% | 7.48% – 9.78% |
| 15 Year | 8.90% – 10.65% | 7.83% – 10.13% |
For a tenure of 5 years, the fixed rate ranges from 6.89% to 9.15%, while the variable rate ranges from 6.83% to 9.33%. Fixed rates are offered between 7.40% and 9.65% over a 7-year term, with variable rates falling in the range of 7.13% to 9.58%.
Fixed rates range from 8.15% to 10.15% and variable rates range from 7.48% to 9.78% if you choose a 10-year tenure.
Finally, fixed rates ranging from 8.90% to 10.65% and variable rates ranging from 7.83% to 10.13% are offered over a 15-year tenure. These figures reflect the interest rate options available to borrowers based on different loan terms, providing a comprehensive overview of potential financing options.
Additional Fees
Any lender charges some additional fees apart from the interest rates for refinancing during the loan service period. UWCU may or may not charge some additional fees to refinance your student loans with UW Credit Union. Let’s find out what they are!
- Application Fee: No application fee is required for rates and approval.
- Disbursement Fee: Not disclosed (a fee charged to lenders for allocating funds for repayment of refinanced loans)
- Loan Origination Fee: No loan origination fee applied (fees for initiating a new loan).
- Late Payment Fee: Less than $10 or 5% of the overdue amount (fee associated with a late payment)
- Collection Fee: Not disclosed (fee of collection)
- Prepayment Penalty: None (fee for making additional payments to reduce the balance of a refinance loan or to settle it ahead of schedule)
- Returned Payment Fee: $15 (fee for a failed payment because there was not enough cash)
Benefits of Refinancing Your Student Loans With UW Credit Union
UW Credit Union student loan refinance allows you to pay off your student loans faster in the short term. To consolidate your loans into one simple monthly payment, UWCU is recommended. Let’s learn more about the benefits of refinancing your student with UWCU!
- You are allowed to refinance one loan or multiple loans with UW Credit Union student loan refinancing. UWCU offers a variety of loan options, including federal student loans, private student loans, private parent loans, and federal parent PLUS loans for refinancing. At a minimum loan amount of $5,000, you can qualify for a refinance.
- You can choose between a fixed or variable interest rate and a term of 5, 7, 10, or 15 years when refinancing your student loan with UW Credit Union student loan refinance.
- If you sign up for automatic payments, your loan interest rate will be discounted by 0.25%.
- Throughout the life of your loan, you have the option to request two instances of 3-month interest-only payments and two instances of 3-month forbearance.
- Release of the co-signer is possible following 36 consecutive eligible payments.
- You may opt for interest-only payments during the first six months of the loan tenure.
- Death or disability discharge may be offered if the borrower is totally and permanently disabled or dies.
How does UW Credit Union Student Loan Refinance work?
To refinance your student loans with UW Credit Union student loan refinance, there are certain steps you need to follow:
Step 1: Complete Your Application
- When you’re ready to start the process of refinancing your student loans, complete your online application.
Step 2: Checking the Application and Confirming the Payment
- UWCU will check that everything is ready before approving your application. It will take one or two business days.
Step 3: Acceptance of Disclosure of Truth in Lending
- You can sign a loan agreement for a maximum of thirty days.
Step 4: Right of Cancellation and Ultimate Truth Observed in Loan Disclosure
- The lending terms give you some time, usually 3 business days, to reconsider after signing the final agreement.
Step: 5: Funds Received and Managed by Financial Organizations
- Your new loan will be sorted in 7-10 business days. Once the aforementioned requirements are met, the loan application process usually takes 2 to 4 weeks.
Required Details/Documents You Need to Provide to Start Your Student Loan Refinance
- Identification and Contact Details: your address, phone number, email address, driver’s license number, and social security number.
- Employment Details: Name, address, phone number, and annual income.
- Cosigner Details: Your cosigner’s name and email address
- Student Loan Statement: Current loan statement showing the total amount balance, interest rate, and monthly payment for each loan you want to refinance.
Reasons to Consider Your Student Loan Refinancing with UW Credit Union
Regardless of your financial situation, there are many reasons to refinance your student loans with UW Credit Union student loan refinance. By refinancing, you can replace your current loan with a new loan with terms that better suit you given your objectives. Let’s look at 4 compelling reasons for student loan refinancing:
Lower Interest Rate
In the long term, if your financial situation has improved since you started your loan, UWCU may be able to save you money by qualifying you for a lower interest rate. If the interest rate is low, you can pay off more to the principal each month.
Reduce Your Monthly Payment
If you need to free up a little extra cash each month, you can refinance to extend the term of your loan. If you extend the term, your monthly payment will reduce; but you will be free to choose to pay more whenever possible. Although this approach will cost you more interest throughout the loan, there are some circumstances in which it may be useful.
Pay off Your Loan More Quickly
If you feel you can spend some extra cash on your loan each month, refinancing can give you that opportunity to shorten the term of your loan. This allows you to once again save money on interest.
Consolidate Your Loan
Borrowers may have multiple loans from different loan providers, each with its due dates and deadlines. Refinancing to consolidate all of your student loans into a single loan can simplify payment management, reducing the chance of errors on your part. Refinancing to consolidate your debt can help you avoid repeated payment mistakes that can negatively impact your score.
FAQs
1. Can I refinance a UW Credit Union loan?
Yes, federal loans, student loans from another private lender, and student loans from UWCU can all be refinanced. The number of times borrowers can refinance with UWCU is unlimited. But, keep in mind that applying for a new line of credit requires a thorough credit check, which can lower your FICO score.
2. Is UWCU good for refinancing student loans?
UW Credit Union can be a good option for refinancing your student loans. For Wisconsin-based borrowers, this may be a wise choice. Compare their rates and terms with other lenders to make sure you’re getting the best offer for your particular circumstances.
3. What is a private student loan?
Private student loans are a type of loan provided by a non-government lender, such as a bank or credit union to students to help cover education-related expenses.
Every year you attend classes at least half the time, private student loans cover the cost of tuition, housing, and other educational expenses once financial aid is exhausted. Early payment is not subject to any penalties or fees. Additionally, if the first 36 payments are made on schedule, the cosigner has the opportunity to be released.
4. When should I apply for a private student loan?
Since colleges begin processing applications for private student loans in the summer months in preparation for the upcoming fall semester, June is the ideal time to begin the process. Keep in mind that you must apply for financial aid through the FAFSA, as well as any scholarships and grants, before applying for private student loans.
Conclusion
Refinancing student loans through UW Credit Union is of vital importance. By securing a lower interest rate, it becomes an important strategy to reduce the overall repayment expense.
Consolidation of multiple loans into a single payment not only simplifies financial management but also enhances budgetary control. UWCredit Union student loan refinancing options can offer extended or flexible repayment terms, providing additional financial relief.
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