Student Loans

Your child graduated in the fall and wants to continue his education at college.

He's worked very hard for the last couple of years to save money, and you can offer some help, but it's not going to be enough.

If your family has exhausted grant and scholarship opportunities, it might be time to consider a loan. That's where your credit union can help.

The three types of student loans offered by Ascend Federal Credit Union include the following: 

• Federal Stafford Loan
• Federal Plus Loan
• Federal Consolidation Loan 

Federal Stafford Loan- The student obtains the loan under his or her account number and is responsible for paying this loan back beginning six months after the last day of attending school. The Stafford Loan program consists of both subsidized and unsubsidized loan types:

• A subsidized Federal Stafford Loan is based on financial need as determined by the financial aid office of the school the student will be attending. Financial need is determined by completing the Free Application for Federal Student Aid. The U.S. Department of Education pays the interest on the subsidized loan during in school and grace periods as well as authorized periods of deferment.
• An unsubsidized Federal Stafford Loan is not based on financial need and is available to students who do not qualify for a subsidized Federal Stafford loan. The U.S. Department of Education does not pay the interest on an unsubsidized Federal Stafford Loan. The borrower is responsible for all interest during the life of the loan. The interest may be paid or allowed to accrue and be capitalized (added to the original principal amount of the loan).

Federal Plus Loan- This loan can be offered to a parent obtaining a student loan for a (dependent, undergraduate) student under the parent’s account number, and the parent is responsible for paying back the loan. This loan can also be offered for the graduate/professional student to obtain as his own loan.  The repayment may begin up to 45 days after the second disbursement of the loan.

Federal Consolidation Loan – This loan is for the student or the parent who wishes to combine his student loans into one extended fixed rate loan.  The rate is a weighted average of all existing student loan rates rounded up to the nearest 1/8 percent.  The length of the loan is dependent on the amount borrowed.  Click here  to download information regarding federal consolidation loans. Contact Ascend’s Student Loan Department at 1-800-342-3086 for more details.
 

Steps in Applying for the Federal Stafford and Plus Loans

The first step in applying for a student loan is for the borrower to contact the financial aid office of the school the student will be attending. The borrower will need to verify that the school participates in the Federal Family Education Loan Program and to make sure the student can use Ascend FCU as the lender.

The second step for the borrower is to complete the Free Application for Federal Student Aid (FAFSA) form. This is a detailed form that is required for the school to determine the need of the loan(s). This form can be obtained from the financial aid office or accessed online at www.fafsa.ed.gov.

The third step is for the borrower to complete a student loan Master Promissory Note (MPN) including Ascend FCU’s lender code 816026. The school section of the MPN will need to be forwarded to the financial aid office and the lender section will need to be forwarded to Ascend FCU’s Student Loan Department. 

Rate Information

All Stafford and Plus student loans made prior to July 1, 2006, are variable rate loans and will remain variable rate loans.  All Stafford and Plus student loans made on or after July 1, 2006 will be fixed rate loans.
 
Fixed Rate Federal Student Loans (applies to student loans after July 1, 2006; rates are effective 07/01/08 through 06/30/09)

• The fixed rate for subsidized Stafford Student Loans is 6.0%. The fixed rate for unsubsidized Stafford Student Loans is 6.8%.
• The Plus Loan rate is 8.5%.
• The Consolidation Loan rate is a weighted average of all existing student loan rates that will be in the consolidated loan rounded up to the nearest 1/8 percent.

Variable Rate Federal Student Loans (only applies to student loans prior to July 1, 2006; rates are effective 07/01/08 through 06/30/09)

• The Stafford Loan rate while the student is in school or during his/her grace period is 3.61%.
• The Stafford Loan rate when the student is in repayment (out of school, not in grace) is 4.21%.
• The Plus Loan rate is 5.01%.
• These student loan rates are variable and are subject to change on July 1 each year.

Steps for Applying for the Federal Consolidation Student Loan

Contact Ascend’s Student Loan Department at 1-800-342-3086 or visit an Ascend financial center  to pick up an application.
 
 
Student Loan Processing:
All student loans are processed in the Student Loan Department. Student loan disbursements are either mailed by check or sent via Electronic Funds Transfer to the school’s financial aid office.

Please contact the Student Loan Department at 1-800-342-3086 with any questions.