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Anonymous Posted on Apr 25, 2016

Should I take out a student loan from a bank or a credit union?

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Julia Chu

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  • Posted on May 05, 2016
Julia Chu
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Credit union. Credit unions offer low interest rates and a variety of outstanding borrower benefits but you should be a members. Unity One Credit Union in Texas (Unity One Student Loans) was my choice.

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You should shop for the best interest rate and pick the bank or credit union with the best rate. Oh, PLEASE be sure to get a degree in college in a field that has a HIGH rate of hiring students after graduation. Or you will just have the debt, the degree, and no job (or way of paying back the loan)
The interest rate on your loan is the percentage of the principal, or overall loan amount, that you'll have to pay back to the lender on top of the principal.
This is calculated many times over the life of your loan on the total amount you owe, including the interest and fees. That's why you won't owe only $10,600 after taking out a $10,000 loan with a 6% interest rate. According to this federal repayment estimator, you'll actually be on the hook for $13,332 on a standard 10-year payment plan. That's why even a slightly lower interest rate can save you a lot of money in the long run.

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Related Questions:

0helpful
2answers

How to Apply for a Used Car Loan?

need to apply and fill out application then your credit and finanicial history and vehicle your buying is checked and if approved you get your loan
tip

Tips for Driving Down the Price of Your Auto Loan

Here are some helpful tips for taking out an auto loan:
Before you sign on an auto loan, make sure to compare interest rates. The car dealership may not offer you the best rate. Check other lenders such as banks and credit unions. (Credit unions usually have better rates.) There are many sites online that compare interest rates from different lenders.
If you are able to come to the dealership with a pre-approved loan, you can focus your energy on negotiationg a better price for the car. Once you've been told you have a loan, make sure you have the loan in writing before you buy the car. Your credit score may not be high enough to be eligible for the loan you are offered. That's why it's important you know your credit score, so that you can better negotiate your interest rate on the loan.
Also, avoid loan stacking: Car dealerships may offer you a new loan that will help you pay off a loan on your previous/current cas as well as finance a new car. This is never a good idea. Agreeing to this type of loan means that you are taking out a much bigger loan than you need to.
Try to pay off as much as you can up front, so that you won't need to be paying off the car for years and years to come. In general, it's always a good idea to avoid long-term loans. Although these usually come with low monthly payments, your car's value could decrease signigicantly before you pay off the loan. You may be stuck paying off a loan for a car you no longer even want.
Also, be sure to ask if there are any penalties for paying off your loan early.
I hope these tips helped you with purchasing your new car!
on Sep 23, 2013 • Finance
0helpful
1answer

I am going to buy a car, and I am thinking of taking a loan at a bank, but wonder what was best: whether to take the loan at the dealership or at the bank itself. Do you think banks are offering nice

Generally, if you're buying a new car, a bank or even a credit union can't come close to the low interest rate you can get at a dealership. Bottom line, go with whomever offers the lowest interest rate.
0helpful
1answer

Check clear

Every bank or credit union has its own principles with reference to when it will give you a chance to get to cash after you store a check, yet government law builds up the most extreme time span a bank or credit union can make you hold up.

Generally, if you deposit a check for Rs20,000 or less in person to a bank employee, you can access the full amount the next business day. If you deposit more than Rs20,000, you can access Rs20,000 the next business day, and the rest of the money the second business day.

A few banks or credit unions may make stores accessible more rapidly than the law requires. On the off chance that you require the cash from a specific check, you can ask the teller when the trusts will get to be accessible. A receipt demonstrating your store does not imply that the cash is accessible for you to utilize.

Your bank or credit union has a cut-off time for what it considers the end of the business day. In the event that you make a store after the cut-off time, the bank or credit union can regard your store as though it was made on the following business day. A bank or credit union's cut-off time for getting stores can be no sooner than 2:00 p.m. at physical areas and no sooner than twelve at an ATM or somewhere else.

On the off chance that your store is money, a cash arrange, an ensured check, a check from a record at the same or another branch of your bank or credit union, or a check from the administration, you can withdraw or utilize everything on the following business day on the off chance that you make the store in individual to a bank representative. In the event that you make the store at an ATM at your bank, you can withdraw or utilize everything on the second business day. I think my answer helpful you.
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