Kim Knapton says Mountain American Credit Union is committed to helping students finance their education so they can achieve their dreams.
With the changes in the economy, many individuals have decided to obtain additional college or vocational training. And since changes have taken place with the manner in which the federal student loan program is handled we’re seeing more people who need appropriate ways to fund education.
With many lenders leaving the student loan industry, we have continued offering our private student loans because we believe it is valuable for our members to have the ability to further their education.
Mountain America was the first credit union in Utah to offer private student loans to students who did not qualify for traditional college financing.
In May 2007, we introduced our Education Line of Credit to a few schools in Utah.
Now that number has now grown to over 200 schools throughout Utah, Arizona, New Mexico and Nevada, and the portfolio has grown to more than $25 million is just three years.
Our August 2010 loans are up 75% over the number of loans we made in August 2009.
The Education Line of Credit is a great solution for those students who need financing to fill the remaining gap after reaching their Federal loan maximum limits; who are attending a trade school such as cosmetology, aesthetics, massage therapy and other nontraditional schools; or for schools that do not offer federal loans.
The Education Line of Credit offers a competitive variable interest rate with low monthly, interest-only payments while the student is in school. There are no origination fees or prepayment penalties to worry about.
It’s easy to apply. A student can simply go to their closest Mountain America branch, call our Service Center at 1-800-748-4302 (option 2) or go to www.macu.com to fill out the application forms.
The student will receive a decision within 24 hours, and the typical processing turnaround time for funding the loan is seven business days from start to finish.
We even will work with the schools to obtain the School Certification, and we disburse the funds directly to the school.
Six months after either graduation or withdrawing from school, the Education Line of Credit converts to the Education Repayment Loan, which has low monthly payments and a competitive fixed interest rate.
This loan offers a repayment plan of 12 months per $1,000 borrowed, with a maximum of up to ten years to repay so, payments stay low.
For instance, the average payment on a $10,000 student loan at 6% interest would be about $50.00 per month while the individual is in school and after leaving school would be approximately $120.00 per month for the ten year repayment period.
The Education Repayment Loan is also a great way for students with previous private student loan debt to consolidate their non-Federal loans into one loan payment.
Individuals taking out a student loan should check to determine if it is a certified loan or a Non-certified loan. Be sure to read all of the disclosure to make sure you are applying for the loan you want and need.
Start your loan application process early—PLAN AHEAD—you must apply for a federal student loan before you apply at Mountain America. You have to be certified by the school to apply for the loan.
Mountain America strives to be a leader in the student loan industry, and we provide students and schools with a quality product and with quality personal service.
Our mission is to continue to help students finance their education so they can achieve their dreams.