Funding Higher Education: A Guide to Wright-Patt Credit Union Student Loans

Earning a college degree can open doors to in-demand job opportunities, higher earning potential, and personal growth. However, figuring out the best way to pay for college can be a little complicated. Wright-Patt Credit Union (WPCU) aims to simplify this process, offering a range of student loan options and resources to help students and families navigate the complexities of higher education financing.

Understanding the Costs of College

College costs vary greatly depending on several factors: the type of institution, its location, the degree program, and whether the student is full-time or part-time, living on-campus or commuting. Generally, private colleges have a higher tuition than public schools.

According to College Board data from the 2023-2024 school year, the published tuition prices and fees for full-time undergraduate students were:

Public four-year in-state: \$11,260
Public four-year out-of-state: \$29,150
Public two-year in-district: \$3,990
Private nonprofit four-year: \$41,540

Experts often recommend saving 10-15% of your family's total income each year for each student's college education. Tuition often increases due to inflation, and there are other costs like books, transportation, electronics, and school supplies.

Three Ways to Fund the Dream of Higher Education

Let's explore three ways to fund the dream of higher education: Financial Aid, Merit-Based Scholarships and Awards, Federal and Private Student Loans.

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Financial Aid

Financial aid is the first place to start. Completing the Free Application for Federal Student Aid (FAFSA) is necessary to apply for federal aid such as grants, work-study funds, and loans. Your FAFSA information may also be used to determine your eligibility for need-based financial aid from your state or the school. Do you have questions about completing your FAFSA, interpreting your award letter or deciphering financial aid lingo?

Merit-Based Scholarships and Awards

Many schools, businesses, organizations, and communities offer merit-based scholarships based on students' academic achievements, service work, and extracurricular activities. Research local, regional, and national scholarships and apply early for the best chance at receiving free money for college. Remember - you don't need to pay to win a scholarship. If you're asked for your banking information or to send funds for an unexpected scholarship, it's a scam.

Federal and Private Student Loans

Most college students borrow to cover the cost of higher education through federal student loans, private student loans, or a combination of the two. If you need to borrow funds for college, it's smart to start with federal student loans. These loans are available to students and parents and provide unique benefits, including a fixed interest rate that's often lower than private student loans. Each year, 30 to 40 percent of all undergraduate students accept federal student loans.

However, even after federal student loans, financial aid, and scholarships have been applied, college funding gaps may remain for tuition, textbooks, fees, and housing. Private student loans can help fill those gaps while offering flexible repayment terms and a lower interest rate compared to other types of loans or lines of credit.

Wright-Patt Credit Union Student Loan Options

Wright-Patt Credit Union offers a variety of student loan options to help students and families bridge the funding gap and achieve their educational goals. These options include private student loans for undergraduates and graduates, as well as student loan refinancing options.

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Private Student Loans

WPCU's private student loans are designed to help families responsibly fill educational funding gaps and borrow smarter. These loans can be used for any items listed in your school's cost of attendance or other education-related expenses, such as tuition, activity or sports fees, books, housing and supplies. The maximum loan amount will be the certified need determined by your school for the remainder of your currently enrolled higher education. The certified need is typically the Cost of Attendance (COA) less other financial assistance and aid received.

Undergraduate Loans: WPCU offers private student loan options for undergraduates provided by Student Choice, offering an easy way to fill the funding gap each year of your undergraduate degree.

Graduate Loans: Graduate student loan options are also provided by Student Choice, offering an easy way to fill the funding gap each year of your degree.

Eligibility and Requirements

To be eligible for a WPCU private student loan, you must be continually enrolled in a degree-granting program and meet your school’s minimum Satisfactory Academic Progress (SAP) criteria. For fall and spring terms, you must be enrolled at least half-time. International undergraduate or graduate students enrolled or enrolling in Wright State University are eligible to apply. The borrower must be a member of the credit union.

A borrower is not required to apply with a co-applicant. If applying with a co-applicant, you’ll want to have them present. The co-applicant will also need to provide the same type of personal information as the student borrower. A co-applicant release option is available to credit worthy borrowers who make 48 consecutive on-time payments during the principal and interest repayment period, and meet additional requirements (such as salary and debt-to-income ratio). You must apply and be approved for this option after the 48 month period.

Application Process and Timeline

Your application can be completed in just a few minutes, but the entire process can often take several weeks. Processing times vary based on time of year, document submission, and the school’s own certification process. With our unique education line of credit, you will not need to reapply each year (assuming there are no significant changes to the borrower or co-applicant credit scores). Each year, you will simply request additional funds (called a “draw”) for the amount you wish to have disbursed to your school (based on your school’s certified amount). Funds are disbursed to your school based on the school’s disbursement cycle. As a returning borrower with an existing line-of-credit, you do NOT need to complete an entirely new application to request additional funds. Simply request additional funds from your existing line-of-credit.

Interest Rates and Repayment Options

WPCU's Student Choice Loans come with flexible terms and convenient repayment options. You may choose full deferment while in school, elect to make interest only payments while in school, or choose full principal and interest payments. You may choose to make interest-only payments while in school; defer both principal and interest payments until six months after graduation; or make full payments while in school.

When you select a variable rate loan, your interest rate will fluctuate over time based on the current index rate. Variable rate options are typically lower than fixed rate at the start of your loan. The Annual Percentage Rate is subject to increase after consummation. The interest rate will be adjusted quarterly, based on changes to the Index. The APR will not exceed 18.00%, or fall below the Floor rate regardless of the Index or any additional rate discount. Current offered rate(s) are calculated by using the Index, Margin and Floor value(s) in effect. Your specific Interest Rate, Margin, Floor, and/or credit approval depends upon the credit qualifications of the student borrower and co-applicant (if applicable). Margin will be disclosed at account opening. ** Subject to annual review and credit qualification.

Student Loan Refinancing

Wright-Patt Credit Union, through Student Choice, also provides student loan refinancing options to help manage your money beyond college. By consolidating, you could potentially get a lower interest rate than your current college loans and possibly, shorten the payment terms.

Refinancing Options: WPCU offers student loan refinancing options, including parent loan refinancing and medical degree loan refinancing.

Student Loan Refinancing: An easy way to consolidate your existing student loans.
Parent Loan Refinancing: An easy way to consolidate any student loans you may have for one or any of your children. Being able to consolidate multiple student loans into one loan with a potentially lower rate can help you keep more money in your pocket.
Medical Degree Loan Refinancing: An easy way to consolidate your existing medical school student loans. By consolidating, you could potentially get a lower interest rate than your current college loans, and possibly shorten the payment terms.

Loan Servicing

University Accounting Service (UAS) will service your loan. Once your loan has been disbursed or entered repayment, you may contact UAS with questions at 877-530-9782.

Saving for College

Saving early is key to making the dream of higher education a reality. One way to approach saving for college is by following the “⅓ rule," which involves spreading the cost of a significant expense (think four years of projected college costs) among three funding sources. With this approach, one-third of the total amount you need will come from your past income (savings), one-third from your current income and one-third from loans (usually student loans).

Keep in mind that there's no one-size-fits-all solution to saving. The ⅓ rule might not work for you, and that's okay! Meeting with a Financial Coach can help you create a college savings plan that fits your needs and goals. When it comes to saving for college and other major goals, you want to find a saving option that offers great rates with no gimmicks. In Ohio, many families choose to save in a savings account as well as a tax-free 529 Plan, which can be used for a child's education after high school.

WPCU has a range of smart savings products available to help you earn dividends and reach your savings goals. For longer-term savings goals, consider a Share Certificate, which offers a fixed rate and flexible terms to fit your needs.

Additional Resources and Support

Wright-Patt Credit Union provides free student lending financial learning classes designed to demystify the process and help students and families plan, prepare and pay for college with confidence. Our student loan and college access counselors are available to discuss any questions you have in regard to student loan funding, completing your FAFSA and other financial aid questions. Schedule an appointment or ask a question today to learn more about your options for undergraduate and graduate student loans and how to make them work best for you.

Visit WPCU's Student Lending Center to explore free resources, financial wellness tools and upcoming webinars covering topics from college planning to navigating student loan repayment.

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