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Student Loans
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Need Help with Student Loans?

Kohler Credit Union is here to help every step of the way.

Student loans can be confusing. To help you out, Kohler Credit Union provides answers to frequently asked questions. Just click on the question below to get the answer.

826895
Q:
What are student loans?
A:
Student loans help students and parents pay for higher education. Repayment begins after the student leaves college.
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Q:
What kind of loans are there?
A:
Private loans and federal loans. Private loans come from a financial institution, like Kohler Credit Union. Federal loans are through the government and a financial institution. They are insured by government agencies like Great Lakes Higher Education Corporation. These loans are low interest and help pay the cost of student education. Federal Stafford loans may pay only for education costs not covered by other sources of financial aid. The federal PLUS loan is also available to those that qualify. This loan is low-interest and loaned to the parents of a dependent undergraduate student. This loan is based on credit worthiness, which requires a credit check. Check out www.glhec.org to see if you qualify.

Stafford Loans – Subsidized loans are based on financial need by the school. It is interest free for the borrower. Interest is paid by the Department of Education if the student is enrolled at least half-time at an eligible institution, the student is in the grace periods – the six months after graduation or withdrawal from school, or the student is in an authorized period of deferment.

Unsubsidized Loans – Unsubsidized loans are not based on financial need and are for students that do not qualify for subsidized loans, or need to cover additional educational costs. With this loan interest accrues immediately on the borrower’s account and the borrower has the option of repaying the interest while in school.
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Q:
How much money can I get?
A:
Click here for current information on loan amounts, eligibility, interest rates and more.
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Q:
When do I start repayment of the loan?
A:
It depends on the loan. If the loan is subsidized you’ll start to pay off when your six months grace period is over, or withdrawal from school. With your unsubsidized loan you will have the option to start paying back the interest while you’re in school so you won’t have as much when you are paying back your loans. Otherwise, the loan payments will start six months, or longer depending on the loan, after you are done with school.
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Q:
What are the interest rates?
A:
The interest rates are changing annually. However, right now the rates are at an all time low, so if you are thinking about taking out a Student Loan, now would be the right time.
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Q:
Where does the money come from?
A:
When you take a loan out through Kohler Credit Union, even the federal loans, the money will come from Great Lakes Higher Education Guaranty Corporation. They deal only with student loans.
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Q:
Are there any fees involved?
A:
Each Stafford borrower is subject to an origination fee and a guarantee fee. However, these fees may be waived or reduced by your lender or guarantor. Contact Kohler Credit Union to verify the charges. Fees are deducted directly from the loan disbursement amount.
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Q:
What are the steps I need to take to get a loan?
A:
Free Application for Federal Student Aid
  1. You'll need to fill out a Free Application for federal Student Aid (FAFSA). You can fill out the application online at www.fafsa.ed.gov. When filling out the application, be sure to put the Kohler Credit Union code on lines 8 and 9. Our code is 826895. Be sure to remember the PIN that is assigned to you with FAFSA. You will have to use it for every year you apply for financial aid. This will ensure you are placed with a financial institution you can trust.

  2. The application usually takes several weeks to process, so make sure you fill it out early. The best time to do this is after you have completed taxes. After the school you would like to attend sends you a SAR (Student Aid Report), read it carefully and decide which types of financial aid you think would work best for you and make any changes. Bring it into Kohler Credit Union for assistance in choosing, or send it back to your school.

  3. Keep in contact with the financial aid office. They will send you documents regarding guarantors (the institutions that give you money). Keep a copy of all the paperwork. Your school will also send you a promissory note.

  4. The school handles the disbursement of your money. Ask them how and when you will receive your money.
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Q:
How do I pay back my loan?
A:
You will receive statements and letters in the mail informing you of your repayment choices. You may start the payments, consolidate, or defer your payments. Some situations may allow you to defer your payments. You will need to apply for deferment.
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Q:
What is consolidation?
A:
Consolidation means to combine all of your loans, whether they are federal or private, into one loan. There are some advantages to consolidating: ease of one payment, lower monthly payments, locked interest rate, and repayment options. There also may be some added expenses if you extend the length of your loan.
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Q:
How long will I be making payments?
A:
Maximum Repayment Period for Federal Consolidation Loans
Total Student Loan Debt Max. Repayment Period (# Years)
Less than $7,500 10
$7,500 to $9,999 12
$10,000 to $19,999 15
$20,000 to $39,9999 20
$40,000 to $59,999 25
$60,000 or more 30
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Q:
Visa Check CardWhy should I get a loan with Kohler Credit Union?
A:
  • Low interest rate
  • 24-hour loan processing
  • Available to all students attending either full- or part-time
  • Experienced team will answer your questions throughout the process
  • Check process online
  • Student Checking Accounts
  • Free Kohler Credit Union Visa Check Card
  • “Call KCU” 24-hour access
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Q:
What are some other useful Student Loan and Scholarship Resources?
A:

Scholarship Information:

  • Scholarship Scams – See what scholarship sites are frauds.
  • NCAA Scholarships – Sporting scholarships.
  • ROTC Programs – Military scholarship programs.
  • Kohler Credit Union Democracy Scholarship – Each spring, Kohler Credit Union awards scholarships to deserving area students. Please check back for details on the 2009 scholarship program.
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