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THE COLLEGE ISSUE 2014
Alternative options for your college fund hile banks no longer offer federally backed student loans, private loans are still available, such as those offered by Arkansas Federal Credit Union (AFCU). For undergraduate students, AFCU’s Student Choice Loan covers the cost of an education without charging high interest rates, says Jason Goodwin, AFCU loan underwriting manager. “We designed our student loans as lines of credit to be friendly to parents and students, without the high fees normally associated with student loans,” he says. As a bonus, there are no application or origination fees. Business students can now apply for an AFCU loan to cover their graduate studies in business. For those who already have student loans, AFCU recently added a private loan refinance option for students who have private loans at higher rates with banks. This can be advantageous as banks usually have fees and higher interest rates associated with their private student loans, Goodwin says. “Go ahead and apply even if you’re not a member,” Goodwin says. Those who aren’t members often find they have a connection through a family member, organization or institution. Currently, there are as many as 600-plus groups that
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58 AUGUST 21, 2014 • ADVERTISING SUPPLEMENT TO ARKANSAS TIMES • THE COLLEGE ISSUE 2014
belong to AFCU, along with the military and a number of educational institutions such as the University of Arkansas at Little Rock, University of Central Arkansas and Harding University. Goodwin says AFCU encourages students to apply for all the “free” aid they qualify for, but if federal student loans, which are generally a smaller amount than needed to completely cover the cost of an education, aren’t enough, he recommends considering an AFCU Student Choice Loan. Instead of a set amount, Goodwin says, “We contact the school and ask, ‘What is the cost of a four-year education at your institution?’ ” That information is used to determine the amount of the loan, which is capped at $75,000 and requires a cosigner unless the student has a two-year positive credit history. “Basically, the student applies once and is granted a line of credit,” he says. Instead of handing the student a check, the money goes directly to the school, and when the student has needs, such as a laptop or books, the school issues a check. “We work hard to take care of the student,” and loans are often offered at lower rates than those offered by the federal program, he says. ■