Step-By-Step Instructions on Receiving a SnapLoan:
- Become a TUMCU Member – In order to take advantage of our SnapLoans, you will first need to become a member of TUMCU. If you are not a member, you can follow the link in the top right corner labeled ‘Join Today.’ Once your membership is confirmed, then you can apply for a SnapLoan. If you are a student going to a United Methodist institution with the SnapLoan you would be receiving, then this would qualify you for membership.
- Identify Your Funding Gap – Figure out the amount of extra funds you will need after you’ve used all other sources of funds. You can borrow up to $40,000 lifetime or $10,000 per year.
- Apply for a SnapLoan – Apply for a SnapLoan here. No FAFSA is required. There are no fees for application, origination, or prepayment. There is also no need to apply each year. SnapLoans can also be used for transportation, rent, technology, semester abroad, or any educationally related expense.
- Go to college with the best private student loan rates in the country – The national average for a fixed rate private student loan is 9.66% We beat that easily. We offer a rate of 5.95% for a member attending any university and a discounted rate of 5.45% for a member attending a United Methodist university.
- Graduate. Calculate Repayment – One year after graduation, you start repayment. You choose the term, and a new fixed rate will be determined by formula using the corresponding term U.S. Treasury rate + 4%.
Are part-time students eligible for a loan?
All borrowers must be at least half-time status per school guidelines and pursuing a degree at an accredited institution.
Is the interest rate fixed or variable?
The interest rate on a SnapLoan is fixed while at least a half-time student plus one year after graduation or upon leaving school. At that point, you will choose the length of repayment up to 10 years. The new fixed rate will be equal to the corresponding term treasury rate plus four percent. Note: Interest begins to accrue as soon as funds are disbursed.
Is the interest on my student loan tax deductible?
The borrower will need to consult with their tax adviser to determine if the loan interest is deductible.
Once I apply, how soon do I find out if my loan has been approved?
Once all required documents have been received, the borrower and co-signer will usually be notified within one to two business days regarding loan approval.
Is this a bank loan?
No, TUMCU is a non-profit credit union serving the United Methodist Church.
Are there any loan fees for a SnapLoan, other than the interest charges?
No, applicants pay no application, origination or early repayment fees.
Do I have to reapply each year for a loan?
No, SnapLoan is structured as a line of credit, which you can then use over multiple years, subject to annual credit reviews.
Can I view my account online?
The account can be viewed online using Online Banking.
Is there any discount for students in seminary?
Students who attend a United Methodist affiliated seminary receive a 0.5 percent interest rate discount.