Student Benefits

  • No Origination Fee for all student borrowers.
  • Competitive Interest Rates and with good grades, potential for even lower rates.
  • 1% Interest Rate Reduction once 10% of the loan principal is repaid during the full repayment period.3
  • 0.25% Interest Rate Reduction when you sign up for automatic ACH payments.3, 4
  • Cosigner Release Available for creditworthy borrowers after 24 consecutive on-time full
    principal and interest payments.
    5

Eligibility Requirements

  • Borrower must be enrolled in an eligible school and pursuing a degree program.
  • Borrower must be a member or join Magnolia Federal Credit Union during the online application process.
  • Borrower and cosigner must be a US Citizen or permanent resident.
  • Students are encouraged to apply with a creditworthy cosigner for a better chance of approval and/or lower interest rate.

1  Annual Interest Rate = Base Rate + Loan Margin. The Base Rate is the average of the 3-Month LIBOR Rate published in the Wall Street Journal on the first business day of the three months immediately preceding each quarterly adjustment. The Loan Margin is between 3.24% to 9.24%
2  APR = Annual Percentage Rate. Rates and terms based on credit criteria and are all subject to change.
Assuming a $10,000 loan amount, a 3.28% APR and the full payments option, you would make 54 monthly payments of $25, while enrolled in school followed by 120 monthly payments of $100.83 to repay this loan. If the APR is 8.74% and the loan amount remains $10,000 you would make 54 monthly payments of $25 while you are enrolled in school followed by 120 monthly payments of $166.86 repay this loan. The APR may be increased after consummation.
3  Subject to 2.99% floor rate.
4  Requires continued enrollment of automatic payments. If the automatic payment is cancelled at any time after enrollment, the rate reduction will discontinue until automatic payment is reinstated. May be suspended during periods of forbearance and deferment.
5  Subject to lender approval. Borrower must meet lender's credit and income requirements.