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- A private student loan with customizable terms and repayment plans
- Several interest rate discounts available
- No application, origination, or late payment fees
The Union Federal student loan is a customizable loan with several different term lengths and repayment plan options. There are no fees to apply.
Learn more about the Union Federal student loan, which is funded by Citizens Bank, below.
In this review:
- Union Federal Loan details
- Pros and cons
- How to apply for the Union Federal Loan
- Repayment options
- Do I need to include a cosigner on my loan?
Union Federal Loan details
|Union Federal Student Loan|
|Who’s eligible?||Must be 17 and enrolled at least half-time in a degree-issuing program|
Not available in Arizona, Iowa, or Wisconsin
|Variable rates (APR)||1.25% to 9.73%|
|Fixed rates (APR)||4.26% to 10.74%|
|Rate discounts||0.50% summer discount|
0.25% with autopay
0.25% with 36 on-time payments
|Loan amounts||$1,000 to $99,999 annually; $180,000 aggregate|
|Term lengths||7, 10, or 15 years|
|In-school repayment options||Immediate, flat-fee payment, interest-only, deferred|
|Cosigner release||Yes, after 36 on-time payments|
|Grace period||6 months|
Pros and cons
- Several interest rate discounts available
- Offers online prequalification in minutes
- Several in-school repayment options
- Both variable and fixed interest rates available
- No fees
- Only three term lengths available
- Longer cosigner release period than other lenders (College Ave only requires 24 on-time payments)
- Not available in all 50 states
How to apply for the Union Federal Loan
To fill out the prequalification application, you’ll need a few things on hand. You should have your Social Security number, your school’s cost of attendance, expected graduation date, and income information for both you and your cosigner.
Once you’ve gathered all that, here’s how you’ll proceed:
- Visit the website and click the “PREQUALIFY IN MINUTES” button.
- Fill in the school-related information on the first tab. Then click “Next Step.”
- You’ll next need to provide some personal information, including your address, Social Security number, and date of birth. Click “Next Step” when you’re done.
- Enter in your cosigner’s information. You might want your cosigner on hand when filling out this part. Hit “Next Step” again once you’ve filled it out.
- Finally, you’ll get your loan decision. If your prequalification is approved, you can move forward and start customizing your loan options and repayment plan.
- Once you’ve customized your loan, Union Federal will work with your school for certification. Once received, your loan will be funded.
Union Federal offers four different in-school repayment options: immediate, interest-only, flat payment, and full deferment.
Here’s how each of those works:
- Immediate: This means you’ll make a monthly payment toward both your interest and principal balance. It comes with higher payments, but it means paying the least in interest over the long haul.
- Interest-only: With this option, you’ll pay only the interest owed on your loan each month. While it won’t reduce your overall balance, it will reduce the amount of interest you pay in total.
- Flat payment: This lets you make a small, fixed payment every month. It won’t do much to reduce your balance, but it will mean less paid in interest than a full deferment (below).
- Full deferment: On this plan, you won’t make any monthly payments while in school and until six months after you’ve left or graduated. This plan is the highest-cost option and results in the most interest paid in the long run.
Do I need to include a cosigner on my loan?
Adding a cosigner to your loan can be a smart move. According to Union Federal itself, a cosigner makes it four times more likely your application will be approved. Depending on the cosigner’s credit, it could mean qualifying for a better interest rate, too.
Cosigners can be released from your loan after you’ve made at least 36 on-time monthly payments.
Where to find Union Federal alternatives
The Union Federal student loan has competitive features, but it’s not your only option. If you’re looking to finance your college costs, make sure you shop around. Rates and terms can vary widely, and shopping around can ensure you get the best deal possible.
Ready to apply for the Union Federal Student Loan? Visit its website.
1.25% – 10.74%
$1,000 – $99,999
Author: Aly Yale