Answers to frequently asked college financing questions.

Applying

Is there a need for a co-signer?
With a strong co-signer, the likelihood of getting a fast approval on a private college loan goes way up. Click the following link for Co-Signer Frequently Asked Questions. In addition, a Co-signer Release option is available to borrowers who make their first 48 payments on time and who elect to make automated payments.²

Before applying, does my child need to fill out the Free Application for Federal Student Aid (FAFSA) form? Or get federal loans? Or inform the financial aid office?
No. We do recommend, however, that you apply for federal aid before applying for private student loans.

Do I need to know what school my child is attending to apply for a Laurel Collegiate loan?
Yes, your child's school information is important. Once your child's loan is conditionally approved we'll ask you to verify your enrollment information.

What if my child’s school is not on the eligible school list?
It probably is. If the school isn't on the list, we'll speak with the school's financial aid office for you and tell them how to get on the eligible school list.

Is enrollment information important?
Yes. Once your child’s loan is conditionally approved, we'll ask you to verify his or her enrollment status. Contact the college to find out whether they consider your child "full-time," "half-time," "part-time" or some other designation. An applicant must be enrolled at least half-time in a degree or certificate program to be eligible for a Laurel Collegiate Undergraduate Loan.

Can foreign students attending a U.S. school still apply for a Laurel Collegiate Loan?
Yes, but in order to be approved, a student needs to apply with a creditworthy co-signer who is a U.S. citizen or permanent resident, and who has resided in the U.S. for the previous two years.

Getting the money

How much can my child borrow?
The minimum is $1,500 per year. The maximum is $40,000 per year.³ The lifetime limit is $130,000.

How quickly can we get the funds?
With our online application, downloadable credit agreement and fax-back option, you child could receive funds in as little as 5 business days after conditional approval. You and your child will need to keep your end of the bargain (like providing quick, proper proof of enrollment in their school) to help us keep ours. The 5 steps at a glance.

Where do you send the check?
The check goes directly to your child, and it is paid directly to him or her.

Are there out-of-pocket fees?
No. Our origination fee is added to the loan principal, and there are no additional out-of-pocket fees.

Repaying the loan

What are the repayment options for a Laurel Collegiate Undergraduate Loan? Students have three choices:

Delay repayment while enrolled in school at least half-time for up to five years.
Save on fees by making small, interest-only payments while enrolled in school at least half-time for up to five years. See examples of repayment options.
Or start paying right away, which will save the most over the life of the loan.

Additionally, get up to 0.5% interest rate reduction if you make your first 36 payments on time and elect automated payments.⁴

How long will it take to pay off the loan?
It’s your choice. Laurel Collegiate Loans come with a maximum 20-year repayment term and $25 minimum monthly payment. Laurel Collegiate Loans have a variable interest rate equal to the LIBOR Index plus a margin as low as 3.50%. The amount of your margin may be different, based on your loan program and your credit history. See actual APR data and examples of repayment options.

Is there any penalty for paying the loan off early?
No. Students can pay off the Laurel Collegiate Loan at any time, even if they’re still in school.

Co-signers will be eligible for co-signer release upon request if (1) the first 48 payments of principal and interest are paid on time, (2) at any time prior to the 48th on-time payment, the borrower who receives the monthly bill elects to have monthly principal and interest payments transferred electronically from a savings or checking account, and continues to make such automatic payments through the 48th payment, and (3) the borrower meets creditworthiness criteria at the time of the release of the co-signer. The co-signer release is only available for undergraduate, graduate, and continuing education loans.
Undergraduate and graduate borrowers may borrow annually up to the lesser of the cost of attendance or $30,000 ($40,000 for certain schools where the annual cost of attendance has been determined to exceed $30,000). Borrowers in Continuing Education and K-12 loan programs may borrow annually up to $30,000.
The 0.25% interest rate reduction is available for borrowers who elect to have monthly principal and interest payments transferred electronically from a savings or checking account. The interest rate reduction will begin when automatic principal and interest payments start, and will remain in effect as long as automatic payments continue without interruption. This reduced interest rate will return to contract rate if automatic payments are cancelled, rejected or returned for any reason. Upon request, borrowers are also entitled to an additional 0.25% interest rate reduction if (1) the first 36 payments of principal and interest are paid on time, and (2) at any time prior to the 36th on-time payment, the borrower who receives the monthly bill elects to have monthly principal and interest payments transferred electronically from a savings or checking account, and continues to make such automatic payments through the 36th payment. The reduced interest rate will not be returned to contract rate if, after receiving the benefit, the borrower discontinues automatic electronic payment. The lender and servicer reserve the right to modify or discontinue borrower benefit programs (other than the co-signer release benefit) at any time without notice.

Laurel Collegiate Loans are funded by Union Federal Savings Bank, Member FDIC and Equal Opportunity Lender.

The student is the primary borrower for the Undergraduate, Graduate and Continuing Education Loans. Parents and other creditworthy individuals may cosign for these loans.