SnapLoan FAQS

Am I eligible to apply?
Borrower must be a member of The United Methodist Credit Union and enrolled in an accredited school at least half time. Students attending Methodist affiliated colleges within the United Methodist Conferences we serve are eligible to become TUMCU members.

What is the maximum amount I can borrow?
An approved borrower may borrow up to $10,000 per calendar year and up to $40,000 over their lifetime.

Do I need to attend a United Methodist affiliated school to apply for a loan?
No, but you must be enrolled in an accredited institution of higher education. Students who attend a United Methodist affiliated school within the United Methodist Conferences we serve do receive a 0.5 percent interest rate discount.

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.

When does the loan repayment period begin?
Repayment must start 12 months after the borrower graduates or leaves school. We recommend that students try to make interest payments while in school.

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.