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FAQs

General Questions

What is an EdAccess Private Student Loan?
The EdAccess Private Student Loan is issued from a not-for-profit credit union participating in the cuStudentLoans program and can be used to pay for qualified educational expenses including tuition, room and board, books, and other school related expenses. Private student loans serve as a way for students to fill the funding gap between the cost of attending school and the amount of federal loans, grants and available scholarships.

What is the difference between a private student loan and a federal student loan?
Federal student loans follow guidelines set forth by the U.S. Dept of Education and typically offer fixed and lower interest rates compared to private student loans. However, Federal loans, unlike most private loans, have borrowing limits, which may not allow a student to borrow enough to cover the entire cost of education. Private loans help students fill the funding gap between the cost of attending school and the amount of federal loans, grants and available scholarships. Both private and federal student loans typically allow students to defer payments while in school and some offer economic forbearance options once a student completes school. Unlike federal loan programs, private lenders assess the credit history of the borrower and cosigner before making a loan.

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Privacy & Security

Will my personal information be shared with third parties?
Only information that is necessary and required to complete the loan application process, make payments, and transfer funds may be shared. Please consult our Privacy Policy for additional details.

How is financial information protected?
Our servers are equipped with Secure Socket Layer (SSL) certificate technology, which encrypts the user’s entire online session. Automatic sign out occurs after a period of inactivity. All banking information and social security numbers are stored in a secure off-site data center. All users must pass through our secure verification systems to prevent identity theft. Please consult our Privacy Policy for additional details.

How does identity verification work?
All borrowers must have a valid driver’s license or social security number. This information is used to obtain non-credit based questions from an identity verification agency. The user is asked a series of questions that must be answered correctly. Since these questions are not based on a person’s credit history, obtaining another person’s credit report does not provide sufficient
information to pass our identity verification test. Those who violate our security and privacy protections are subject to disciplinary action, including prosecution to the fullest extent allowable by law. Please consult our Privacy Policy for additional details.

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Application Process

When should I begin the process?
We encourage you to start early. Once you know what school you will be attending and are able to provide proof of enrollment, such as a letter of acceptance or a tuition bill, you start the loan application process.

How much can I borrow?
The minimum you can borrow is $2,000 per year. The maximum you can borrow is the certified amount determined by your school, up to $30,000 per year. The school certified amount is typically the Cost of Attendance (COA) less any other financial aid received.

How do I apply for an EdAccess Private Student Loan?
The application process must be completed online at apply.custudentloans.org

Do I need to be enrolled in an educational institution to complete the application process?
Yes, you must provide proof of enrollment at an eligible school within the cuStudentLoans program to complete the application process.

What proof of enrollment do I need to provide?
An unofficial copy of the student’s most recent transcript. Freshman need to supply either an acceptance letter or class schedule for the upcoming semester.

Will this loan be certified?
Yes, all loans are certified with the school.

How does the cosigner complete their portion of the application?
The cosigner simply completes the application by providing certain security information, and designate that they are cosigning your loan. They complete the same origination, verification, and underwriting procedures as you since they will be jointly responsible for repayment of the loan, in the unlikely event you fail to make the required payments.

Will both the borrower and cosigner’s credit be checked?
Yes. During the application process, and as part of the underwriting process, we pull a credit bureau report on both the borrower and cosigner. The borrower’s creditworthiness or ability to repay the loan is assessed based on the credit bureau of the borrower, the credit bureau of the cosigner, as well as the borrower’s academic attributes.

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

How do I check the status of my application?
The status of your application is available by signing in to your account. The green status bar you see immediately after login tell you what state your application is currently in.

After filling out an application is there a commitment to borrow?
No. A borrower may withdraw a request at any time and has up to 30 days from the loan approval date to return the money and avoid being charged any fees or interest.

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EdAccess Private Student Loan Terms

What is the repayment term of the EdAccess Private Student Loan?
The repayment term begins 6 months after the borrower graduates or ceases to be enrolled at least half-time in an eligible degree granting program. Once repayment begins, the borrower has 10 years to repay the loan.

How soon will a borrower receive the loan proceeds?
The loan proceeds will be sent to the school by check or through electronic funds transfer (EFT). The check will be mailed within 6-10 business days of our approving your application.

How is the interest rate calculated?
Interest Rate = Base Rate + Loan Margin

The Base Rate is a variable component which resets quarterly based on the average 3-Month LIBOR (London Interbank Offered Rate) Index. The LIBOR Index resets on the first business day of each of the three months immediately preceding each quarterly adjustment date. Interest rates adjust quarterly on the first day of January, April, July and October.

The Loan Margin stays constant for the life of the loan and is determined at loan inception, depending on the borrower’s credit history and FACS Grade.

Do you offer any borrower benefits?
Yes. Borrowers are offered a 1% interest rate reduction once they have repaid 10% of the principal on the loan. For example, if you took out a $10,000 loan and after making loan payments have a $9,000 principal balance, the interest rate on the loan will be reduced by 1%.

What is the LIBOR Index?
The London Interbank Offered Rate (or LIBOR, ) is a daily reference rate based on the interest rates at which banks borrow unsecured funds from other banks. This offered rate is the funding cost to a bank and is common to use the offered rate as a benchmark for the bank’s lending rate.

How often is accrued interest capitalized?
Unpaid interest accrues while the borrower is in school. Upon entering full repayment, all accrued and unpaid interest is capitalized (or added) to the principal balance once at the time repayment begins. All unpaid interest also accrues during the in-school period and is capitalized once at the time a loan enters full repayment.

What documentation is provided to borrowers?
Borrowers receive electronic monthly statements summarizing all account activities. Each borrower and cosigner also receives a copy of the Promissory Note, applicable Disclosure Statements and an annual privacy policy. All documents are made available to the borrower and cosigner electronically.

What are the Forbearance policies?
Borrowers may request Forbearance, due to economic hardship, for up to 18 months over the life of the loan. Borrowers are eligible to receive three Forbearance periods up to 6 months each. However, only one Forbearance period may be requested in a calendar year. Interest continues to accrue during Forbearance and the term of the loan is not extended.

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EdAccess Private Student Loan Eligibility

Who is eligible for an EdAccess Private Student Loan?
To apply for an EdAccess Private Student Loan you must be enrolled at least half-time in a degree-granting program at an eligible school and you must be a member of a participating credit union.

If you’re currently not a member of a credit union, don’t worry, we’ll help you find one that you can join during the application process.

You or your cosigner also must meet our credit requirements. Choosing a creditworthy cosigner will increase the likelihood of being approved and may lead to a lower loan rate. You can apply without a cosigner if you meet all of the credit criteria by yourself.

Does applying for a federal loan impact my ability to obtain an EdAccess Private Student Loan?
No. We encourage all students to explore and exhaust all federal aid options first, and then use private loans to help pay your remaining education expenses.

What is a cosigner?
A cosigner is a parent, grandparent, guardian or other adult who is creditworthy and willing to assume legal responsibility for the loan liabilities along with you. The cosigner must be a U.S. citizen or Permanent Resident.

Is a cosigner required to obtain an EdAccess Private Student Loan?
In most instances, a cosigner is required to obtain an EdAccess Private Student Loan. A creditworthy cosigner increases the likelihood of your loan approval and may lead to a lower loan rate and fewer fees. Creditworthy students that meet the credit requirements may apply without a cosigner.

Will the cosigner’s credit record be affected?
In a cosigned loan application both the borrower and the cosigner are applying for the loan and are jointly responsible for making all loan payments. In the unlikely event the borrower does not fulfill their obligation, the cosigner is required to make the monthly payments. Failure to do so will cause negative information to be reported on the cosigner’s credit report.

Is the cosigner responsible for repaying the loan?
If the borrower fails to repay the loan, then the cosigner is responsible for repaying the loan. However, the cosigner may be released of this obligation once the borrower is able to meet certain criteria to determine creditworthiness and makes 24 consecutive and on-time full payments of principal and interest.

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Repayment

What repayment options are available during the school period?
Two in-school repayment options allow the borrower to defer full principal + interest payments until six months after separating from the school:

Interest-Only Repayment: the borrower is immediately responsible for
making full monthly interest payments on the loan while enrolled in school. Six
months after separating from the school or ceasing to be enrolled at least-half time in a
degree granting program, the borrower enters repayment status and is responsible
for making full interest and principal payments.
Proactive Payment:while enrolled at least half-time in a degree granting program, the borrower is only required to make monthly $25 Proactive Payments during the in-school period. Any unpaid accrued interest is capitalized (or added) to the outstanding loan amount once at the end of the in-school. Six months after separating from the school or ceasing to be enrolled at least-half time in a degree granting program, the borrower enters repayment status and is responsible for making full interest and principal payments.

What is the In-School Repayment period?
The in-school period lasts while the borrower is enrolled at least half-time and includes a 6-month Grace Period once the borrower leaves school. During this time, the borrower is required to either make full interest payments or a monthly $25 Proactive Payment. Any unpaid interest continues to accrue during in-school period.

What is a Grace Period?
The Grace Period is a 6-month period of time that begins once a borrower graduates or is no longer enrolled at least half-time in a degree granting program. After the Grace Period, the borrower must begin making regular principal and interest payments. Borrowers are required to either make full interest payments or a monthly $25 Proactive Payment during the Grace Period.

What is a Proactive Payment?
A Proactive Payment is a $25 monthly payment the borrower must make while they are in school. The borrower will begin making full principal + interest payments once they have separated from the school or dropped below half-time status. The Proactive Payment helps the borrower demonstrate financial discipline and saves the borrower interest expense over the life of the loan

How are payments made?
All monthly loan payments are made to the servicer, Fynanz Inc., using either an electronic transfer from a financial institution account designated during the application process or mailed in by check.

When do borrowers enter full repayment status?
Borrowers are given a six month Grace Period once they graduate or separate from school before they enter repayment status. Once a borrower enters repayment status they are responsible for making full principal and interest payments.

Some students may not yet have found employment six months after leaving school; therefore, borrowers may request to pay just the interest expense on the loan for the first two years while in repayment status, this is referred to as the “Initial Interest Only” option.

Can a borrower prepay the loan at any time?
Yes, a borrower may prepay the loan either partially or in full at anytime without incurring any fees or penalties.

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