FAQs (FAA Related)

1. What is a credit union?
2. What are the benefits of credit union membership?
3. How does a student borrower join a credit union?
4. Are there any fees or sign up cost with membership?
5. Who is eligible for the cuScholar Private Student Loan?
6. What is the ACS Grade?
7. What are the % margins for the 6 lending tiers?
8. What are the costs with the cuScholar private Student Loan?
9. What are the payment options for the cuScholar Private Student loan?
10. What are the borrower benefits?
11. When is interest capitalized?
12. What is the “Self Cert First, School Cert Last ‘policy?
13. How does LendKey school certify?
14. How does LendKey disburse and receive funds?
15. What if I have a question, Who do I contact?
16. How can I create awareness at my school for the cuScholar Private Student Loan?

    What is a credit union?

    • A not-for-profit lending cooperative that benefits members, not stockholders
    • Over 7,500 credit unions nationwide
    • 90 million credit union members in the United States

    What are the benefits of credit union membership?

    • Better rates, terms and service
    • Social purpose: People Helping People
    • Financial education for members

    How does a student borrower join a credit union?

    • During the easy application process, a student borrower will have the ability to join one of the participating credit unions whose field-of-membership (FOM) they meet.

    Are there any fees or sign up cost with membership?

    • While most credit unions generally don’t require any upfront fees or minimum deposits to join, certain credit unions will have specific membership requirements that you should review prior to joining.

    Who is eligible for the cuScholar Private Student Loan

    • A member of one of the participating credit unions, and attending one of the 2,000 eligible schools at least half time.

    What is a ACS Grade?

    • ACS (Academic Credit Score) Grade is a designation assigned to each loan request to assess borrower creditworthiness using a proprietary credit scoring model. ACS Grades are unique because, unlike many other scores, the ACS takes into account not only the credit bureau data, but also the student’s academic characteristics such as GPA, course of study, and class standing.

    What loan margins are offered for the 6 different ACS Grades?

    • Platinum Honors: 3-Month LIBOR + 2.99%
    • Platinum Plus: 3-Month LIBOR + 4.99%
    • Gold Honors: 3-Month LIBOR + 6.25%
    • Gold Plus: 3-Month LIBOR + 7.49%
    • Silver Honors: 3-Month LIBOR + 8.49%
    • Silver Plus: 3-Month LIBOR + 8.99%
    • See more in the Rates & Fees section

    What are the costs with the cuScholar private Student Loan?

    • There are no upfront origination fees in the cuScholar Private Student Loan.

    What are the payment options for the cuScholar Private Student loan?

      There are two payment options available while the student borrower is in school:

    • 1) Interest-only payments
    • 2) Proactive Payments where the student is required to make a $25/month principal and interest payment.

    What are the borrower benefits?

    • Automatic 1% interest rate reduction once borrower has paid down 10% of principal in repayment.
    • Cosigner release on request after 24 consecutive on-time principal + interest payments.

    When is interest capitalized?

    • Unpaid interest accrues while the borrower is in school a minimum of half time. Upon entering repayment, all accrued and unpaid interest is capitalized to the principal balance once at the time repayment begins.

    What is the “Self Cert First, School Cert Last” policy?

    • Recognizing the financial aid department’s budget and staffing restraints, the “Self Cert First, School Cert Last” policy is designed to streamline the certification process by contacting the Financial Aid staff at the end of the application process, after receipt of the self cert form after all underwriting and documentation has been received, to ensure that the loan amounts are correct.

    How does LendKey school certify?

    • LendKey has the ability to school certify through Elm Resources, GreatLakes /ScholarNet, OpenNet, eCourier and fax/email as per the school’s request.

    How does LendKey disburse and receive funds?

    • LendKey has the ability to disburse and receive funds through Elm NDN, Greatlakes CDS, EFT and via paper checks made payable and sent directly to school as per the schools’s request.

    Who do I contact if I have a question?

      All financial aid questions and assistance should be directed to the school hotline at 866-639-9339 x5. You may also contact:

    • Michelle Bowman – Director of School Development (michelle.bowman@lendkey.com)

    How can I create awareness at my school for the cuScholar Private Student Loan?

    • cuStudentLoans and the cuScholar Private Student Loan is recognized on the preferred lender list of many institutions nationwide. cuStudentLoans is active with all of the major third-party lists such as Student Lending Analytics Private Lender Option and FinAid.org, and comparison lists such as Elm Select and Greatlakes/FastChoice. A simple request to add the cuScholar Private Student Loan is all it takes!

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