Members First Credit Union Student Loans allow eligible students and families to access tailored educational financing, combining credit union service with the structure of private student loan offerings; this guide outlines who these loans may suit, core features, costs, application processes, and alternatives alongside current 2025 considerations.
Who This Loan Is For
Borrowers include undergraduate and graduate students, as well as parents seeking to finance educational expenses at accredited colleges and universities.
Generally aimed at students who have exhausted federal student aid options, or who require supplemental funding beyond what federal student loans or grants provide.
Applicants typically must be members of Members First Credit Union (various branches serve New Hampshire, Florida, Georgia; confirm current eligibility via the official Members First NH homepage or regional sites).
Creditworthiness is evaluated; cosigner may be required for those without established credit history or sufficient income.
Key Facts (At-a-Glance)
Item
Details
Program Type
Private student loan; not a federal (Direct Subsidized/Unsubsidized/PLUS) program.
Interest
Rates may be fixed or variable; specific APRs labeled “sample/illustrative” unless confirmed at application. Some Members First branches cite “APR as low as” rates for other products; always verify on loan disclosures.
Accrual
Interest accrues while in school; capitalization occurs at repayment or after deferment/forbearance.
Repayment Plans
Typical options include in-school deferment, graduated repayment, and full immediate payment choices. Income-driven repayment (IDR) is not available.
Grace Period
Most private loans provide a 6-month grace period after graduation or enrollment drop below half-time; confirm with the specific Members First branch.
Deferment/Forbearance
Options may be available for in-school status, economic hardship, or other circumstances; terms and documentation requirements vary and must be confirmed directly.
Forgiveness/Discharge
Private student loans rarely offer formal forgiveness; death or permanent disability discharge policies vary by lender.
Annual & Aggregate Limits
Generally set relative to cost of attendance minus other financial aid (“sample/illustrative” if not listed); check with your local branch.
Fees
Private loans may have origination, application, or late payment fees; all such fees must be disclosed in loan documents (“sample/illustrative” if not confirmed).
Cosigner Rules (Private)
Most students need a creditworthy cosigner; specific release criteria (if any) differ by branch/program and require on-time payment history over a set period.
Pros
Flexible loan amounts that may help cover gaps after grants, scholarships, and federal student loans.
Credit union members often benefit from local customer service, potentially lower rates than some other private lenders, and familiar account management options.
Cosigner release may be available after a sustained record of timely payments (branch-specific—always verify).
No prepayment penalties and straightforward account management for existing Members First customers.
Cons
Not eligible for federal borrower protections such as income-driven repayment, forbearance standards, or federal loan forgiveness programs.
Qualification relies on credit/income; most undergraduates will require a cosigner.
Interest accrues and capitalizes during deferment; increases total cost over time, especially if only minimal payments are made while in school.
Repayment flexibility is generally more limited than that of federal loans, and hardship options vary by branch and year.
Costs, Interest & Repayment Mechanics
Interest rates for Members First Credit Union student loans are set based on borrower and cosigner credit; rates may be fixed or variable and are disclosed at application.
Annual Percentage Rate (APR) reflects both rate and mandatory fees (“sample/illustrative” figures only if not disclosed in documentation).
Interest accrues while in school unless payments are made; unpaid interest may capitalize, raising principal and increasing lifetime costs.
Repayment options typically include:
Full principal and interest payments while in school (minimizes cost, but requires funds immediately).
Interest-only payments during school (keeps principal from growing).
Full deferment until after graduation (interest accrues; higher total outlay).
Unlike federal loans, these private student loans do not offer income-driven repayment options. Payment amounts are fixed or step up gradually as decided at origination.
Representative example (“sample/illustrative”): Borrow $10,000 at a fixed 7% APR, defer payments for 4 years, then enter a 10-year repayment term. Accumulated interest will be added to the balance at repayment; the monthly payment and total paid will exceed original principal.
Example
Principal
Rate/APR
Plan
Monthly Payment
Total Paid
Sample Scenario
$10,000 (sample/illustrative)
7.00% fixed (sample/illustrative)
Deferred, 10 yrs after school
$116 (sample/illustrative)
$13,920 (sample/illustrative)
Application & Disbursement Steps
Check eligibility and gather documentation (school acceptance, proof of enrollment, Social Security number, credit information for borrower/cosigner).
Complete credit application; submit school certification of cost of attendance and other aid received.
Review loan offer, all terms, and disclosures; sign required agreements (may vary by branch).
Once approved, funds are typically sent directly to the school; excess may be disbursed as a refund for qualified expenses.
Repayment, Deferment & Forbearance
Repayment usually begins six months after graduation or leaving half-time status—a period often called the “grace period.” This may differ by branch or individual loan terms.
Deferment (e.g., while enrolled) or forbearance (temporary hardship) options may be available; interest continues to accrue in both cases, increasing the eventual repayment amount.
For private student loans, policies and forms for requesting deferment or forbearance are directly set by each Members First branch and are not standardized as with federal loans.
Forgiveness & Discharge Pathways
Unlike federal loans, formal forgiveness programs (e.g., Public Service Loan Forgiveness, income-driven repayment forgiveness) are not available for Members First Credit Union student loans.
Death or permanent disability discharges may be available; documentation requirements and policies vary by branch and loan contract.
Schools closing, borrower fraud, or other special cases are not generally covered; verify with your branch’s official loan disclosures.
Risks & Responsible Borrowing
Failure to repay results in delinquency, default, and negative credit reporting, which risks future borrowing ability and higher costs on other credit products.
Cosigner bears legal responsibility; any missed payments can impact both borrower’s and cosigner’s credit scores.
Loss of school enrollment or failure to graduate does not release borrower from the obligation to repay.
Always understand the full cost—compare grants, scholarships, and federal loans before taking private debt.
Check official credit union and Department of Education resources for updated rules and consumer protections.
Alternatives & Comparisons
Side-by-Side Comparison
Feature
Federal Loans
Private Loans
Underwriting
Eligibility-based (FAFSA, citizenship, SAP)
Credit/income-based; cosigner usually needed for students
Rate Type
Fixed (set by Congress annually)
Fixed or variable; based on credit and lender
Protections
Income-driven repayment, forbearance, grace period, federal discharge/forgiveness
Repayment/deferment vary by lender; limited formal protections
Forgiveness Potential
Public service and IDR forgiveness pathways
Uncommon; usually only in death/disability cases
Frequently Asked Questions
Can I use Members First Credit Union student loans for any college?
Generally, loans are available for accredited U.S. undergraduate and graduate programs. Always confirm your school’s eligibility with your Members First branch.
Do I need a cosigner for these loans?
Most undergraduate applicants require a creditworthy cosigner unless they have strong income and credit history. Some cosigner release options exist after consistent, on-time repayment (check branch-specific terms).
How do interest rates compare to federal student loans?
Federal student loan rates are set annually and are often lower for undergraduates. Private credit union rates depend on credit, cosigner status, and current market conditions. Always request a formal rate offer for comparison.
Is there a penalty for prepaying or paying off the loan early?
No prepayment penalties apply on most private student loans, including those from Members First Credit Union branches.
What happens if I cannot make my payments?
Contact your credit union immediately to explore forbearance or alternative payment plans. Missed payments can quickly damage credit for both borrower and cosigner and may lead to collections or legal action.
Where can I find the latest rules and application steps?
