2021-2022 Academic Year Interest Rate:
4.95% (at any college)
or 4.45% (at a regional United Methodist College)
WHAT IS SNAPLOAN?
Snaploan is a low-interest educational line-of-credit (LOC) that helps students fill their ‘funding gap.’
After using your 529 plan, getting a subsidized federal student loan, finding a partial scholarship, and even dipping into savings – many students and their families still face expenses that these resources just don’t cover. That’s the ‘funding gap’ many students have – and that is where Snaploan can help.
HOW IS SNAPLOAN DIFFERENT FROM OTHER STUDENT LOANS?
– First, instead of a typical static term loan, Snaploan provides access to funds that can be drawn on whenever they’re needed (and never more than you need).
– Proceeds from your Snaploan can be used for many expenses traditional student loans just won’t cover – travel, off-campus housing, books, technology, and even study abroad.
– There are no payments required your entire time in school plus one year after you leave (though we recommend to at least pay interest while in school if you can).
– Once out of school, your Snaploan will be converted into a low-interest term loan at a pre-determined rate depending on the timeframe you choose (up to ten years).
– Snaploan has one of the most competitive interest rates available no matter where you go to school – and it’s even lower if you attend a United Methodist college or university in North Carolina, West Virginia, Maryland, Virginia, or DC.
Here’s the list of schools for that discount.
HOW SNAPLOAN WORKS
- Become a TUMCU member – If you are not already a TUMCU member, you will need to join. Don’t worry – it’s free and easy to do. Details on how to become a member are here. Also, if you are not a United Methodist but attend a United Methodist affiliated college, you can also qualify for membership.
- Identify Your Funding Gap – Estimate the extra funds you think you’ll need after you’ve used all your other resources. Based on that, you can request an LOC up to $40,000 (maximum).
- Apply for a Snaploan – You can apply using the link below. No FAFSA is required (this is not a government program). Also, there are no fees for application, origination, or prepayment. And there is also no need to apply each year – your line-of-credit is in place throughout your time at school. Important Note: Approval may be contingent upon having a creditworthy guarantor for your line-of-credit.
- Request funds as needed using our online form (right here). Remember, Snaploans can also be used for transportation, rent, technology, study abroad, or any educationally-related expense.
- No payments are required while in school and up to one year after you leave school (the In-School Phase). You must remain at least a half-time student (except summers), or you will be considered having left school. Your Snaploan line-of-credit interest rate will remain fixed during this phase. We always recommend to make interest payments, if possible, to reduce the size of your loan upon leaving school.
- Begin Repayment (the Post-School Phase) – One year after graduation or otherwise leaving school, you start repaying your loan monthly. You can choose the term (up to ten years), and a new fixed rate will be determined by formula using the corresponding U.S. Treasury rate +4.0%.
Still have questions? Perhaps we can answer them right here.
GET A SNAPLOAN
Click on the corresponding button below to either apply for a new SnapLoan (must be a TUMCU member first) or to disburse more funds if you already have a SnapLoan.