New Student Loan Program at University of Wisconsin

December 24, 2011

Financial aid is a necessary part of going to college for many students. Whether they choose to pick up a grant or add a student loan, many students are simply looking for a way to offset the costs of books, lab fees, and tuition with living costs. That's why UW Credit Union, a banking institution near University of Wisconsin in Madison, decided to add a new financial aid program. UW Credit Union announced that it was releasing a fixed-rate private student loan for college students. The loan is supposed to help students who are having trouble with college expenses even after exhausting all of their other financial aid, such as grants or scholarships.

Based in Madison, UW Credit Union is a longstanding provider of loans and banking services to college students of University of Wisconsin. It is the first financial institution based in Wisconsin, however, to offer a fixed-rated private loan to student members. HBefore, the credit union provided certain types of loans to students that were variable-rate only. The new option has garnered a lot of interest in current student members, particularly because of the Christmas season and new college semester quickly approaching in January.

"The fixed-rate term gives students the peace of mind in having the same rate for the life of the loan, while avoiding the upfront fees associated with alternative fixed-rate options," said Mike Long, who is the executive vice president and chief credit officer at UW Credit Union.

Loans are often one way for students to spend more time on studies, rather than picking up a job in addition to going to school full time. Many students cannot handle the schedule with work and school, opting for a loan with a good interest rate. The choice is now available through UW Credit Union.

Long also discussed ways that students can continue to go to school with a fixed-rate student loan and how private loans help students because they are more affordable. The new loan has been advertised as the more affordable student loan. More students are taking advantage of student loans, especially as the job market wanes and college tuition continues to increase.

"The costs of high education are becoming more expensive each year, and federal financial aid awards are not keeping pace with these increases. Our student members will benefit greatly from having this additional, affordable option to pay for their educational expenses," Long stated.

UW Credit Union has urged students to take advantage of the new loan while also paying attention to their finances. Students will have to take a test about loans and repayment as well as perform an exit interview at the end of their loan period to make sure that they understand their obligations to opt for loans. These steps are just one more way that UW Credit Union will avoid confusion and repayment problems in the future.

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