Union Federal Student Loans Review

4.26% – 10.74% APR

1.24% - 9.73% APR

Union Federal offers the standard 0.25% rate reduction when you sign up for autopay. They also offer an additional 0.25% rate reduction after you have made 3 consecutive on-time payments.

Before applying for a private student loan, Citizens Bank and Cognition Financial recommend comparing all financial aid alternatives including grants, scholarships, and both federal and private student loans. The Union Federal® Private Student Loan is made by Citizens Bank (“Lender”). All loans are subject to individual approval and adherence to Lender’s underwriting guidelines. Program restrictions and other terms and conditions apply. LENDER AND COGNITION FINANCIAL CORPORATION EACH RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. TERMS, CONDITIONS AND RATES ARE SUBJECT TO CHANGE AT ANY TIME WITHOUT NOTICE. Offer valid for new Union Federal Private Student Loans for which applications are submitted for a credit decision between 12:00:00am EST on July 6, 2020 and ll:59:59pm EST on August 31, 2020. A 0.50% interest rate reduction will be included in the loan options presented to an applicant during the online application process, upon passing the initial credit review. The interest rate reduction will be applied as of the first disbursement date and will be effective for the life of the loan. In order to provide you with a range of rates you prequalify for, Citizens Bank will perform a soft credit inquiry, as authorized by you. Soft credit inquiries do not affect your credit score. If you prequalify, the rates and loan options offered to you are estimates only. Once you choose your loan options and submit your application, Citizens Bank will perform a hard credit inquiry. Loan approval, options, and final rates depend on the verification of information provided on your application, and information obtained from the hard credit inquiry (and any cosigner's hard credit inquiry). Available in increments of no more than two months, for a maximum period of 12 months. To be eligible for unemployment protection a required number of monthly principal and interest payments must have been made and the loan cannot be more than fifty-nine (59) days delinquent. During unemployment protection, principal and interest payments are deferred and the interest that accrues during the unemployment protection period may be capitalized at the expiration of such period. To be eligible for more than one incremental period of unemployment protection, (a) at least twelve (12) monthly principal and interest payments must be satisfied following the prior period of unemployment protection and (b) the borrower cannot have utilized more than two (2) periods of unemployment protection in the five (5) years prior to the last day of the most recent unemployment protection period. The number of months of unemployment protection utilized counts towards the total number of months of forbearance permitted on the loan. The repayment term will be extended month-for-month for the number of months of unemployment protection utilized. Any applicant who applies for a loan the month of, the month prior to, or the month after the student's graduation date, as stated on the application or certified by the school, will only be offered the Immediate Repayment option. The Interest Only option (defer principal payments), Flat Payment Repayment option ($25 monthly payment) and the Full Deferment option (defer principal and interest payments) are only available while the student is enrolled at least half-time at an approved school and during the six month grace period after graduation or dropping below half-time status, but the total initial deferment period, including the grace period, may not exceed 66 months from the first disbursement date. The Flat Payment Repayment option ($25 monthly payment) is only available on loans of $5,000 or more. With the Immediate Repayment option, the first payment of principal and interest is due approximately 30-60 calendar days after the final disbursement date and the minimum monthly payment will be $50.00. There are no prepayment penalties. See footnote 4 for payment examples. The 15 year term and Flat Payment Repayment option (paying $25 per month during in-school deferment) are only available for loan amounts of $5,000 or more. Making interest only or flat interest payments during deferment will not reduce the principal balance of the loan. Payment examples (all assume a 45 month deferment period, a six-month grace period before entering repayment, the summer savings rate discount of 0.50% applicable to applications submitted for a credit decision between 12:00:00am EST on July 6, 2020 and 11:59:59pm EST on August 31, 2020, no rate reduction for auto pay and the Flat Payment Repayment option): 7-year term: $10,000 loan disbursed over two transactions with a 7-year repayment term (84 months) and a 6.60% APR would result in a monthly principal and interest payment of $174.17. 10-year term: $10,000 loan disbursed over two transactions with a 10-year repayment term (120 months) and a 6.68% APR would result in a monthly principal and interest payment of $134.21. 15-year term: $10,000 loan disbursed over two transactions with, a 15-year repayment term (180 months) and a 6.82% APR would result in a monthly principal and interest payment of $104.86. A cosigner may be released from the loan upon request to the Servicer, provided that the student borrower is a U.S. citizen or permanent resident alien, has met credit criteria, and 36 consecutive monthly principal and interest payments have been received by the Servicer within 10 calendar days after their due date. Late payment(s), or the use of a deferment or forbearance will reset the number of consecutive principal and interest payments to zero. Use of an approved alternative repayment plan will disqualify the loan from being eligible for this benefit. The 0.25% interest rate reduction will automatically be applied if the first 36 consecutive monthly payments during the repayment term are received by the Servicer within 10 calendar days after their due date. Payments made prior to the start of the repayment term do not count toward the number of required monthly payments. Earn a 0.25% interest rate reduction for making automatic payments of principal and interest from a bank account ("auto pay discount") by completing the direct debit form provided by the Servicer. The auto pay discount is in addition to the summer savings rate discount of 0.50%. The auto pay discount will be applied after the Servicer validates your bank account information and will continue until (l) three automatic deductions are returned for insufficient funds during the life of the loan (after which the discount cannot be reinstated) or (2) automatic deduction of payments is canceled. The auto pay discount is not available when reduced payments are being made or when the loan is in a deferment or forbearance, even if payments are being made. The student must be the legal age of majority at the time of application, or at least 17 years of age if applying with a cosigner who meets the age of majority requirements in the cosigner's state of residence. The legal age of majority is 18 years of age in every state except Alabama (19 years old), Nebraska (19 years old, only for wards of the state), and Puerto Rico (21 years old). Private student loans funded by Citizens Bank are available to applicants who are U.S. citizens or permanent resident aliens except that they are not available to permanent residents of Arizona, Iowa, or Wisconsin. International students can apply for the Union Federal Private Student Loan with an eligible cosigner who is a U.S. citizen or permanent resident alien. Union Federal is a registered trademark of Cognition Financial Corporation. Union Federal Private Student Loans are not offered in connection with any lender other than Citizens Bank, N.A. or the federal government. Cognition Financial Corporation is not an affiliate of Citizens Bank, N.A. Citizens Bank is a brand name of Citizens Bank, N.A. (NMLS ID# 433960). Citizens Bank, N.A. 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