A Good Choice for Students
When Massachusetts College of Pharmacy and Health Sciences student Emma Shields started college, she carefully chose a financial institution that would be convenient and cost effective for her. Her choice: MAFCU. “I looked around at the options and found MAFCU to be the best choice for me,” she says. “It’s convenient since the school is right near the Credit Union (MAFCU's 221 Longwood Avenue branch), and I can go directly to the branch if I have a problem. The ATM in the lobby (at Palace Road) is another convenience.”
She finds staff at the Credit Union to be friendly and helpful. “I often need quarters for laundry, and I get them at MAFCU,” she says. She also finds the late closing on Thursdays a plus. “Students have irregular hours, so it’s good to know the Credit Union is open after 5 o’clock on Thursdays,” she says.
Students who join the Credit Union with the minimum $25 Share Savings deposit are eligible for the MAFCU Student Package, which offers a free checking account and a MAFCU Student Visa Credit Card.
Financing Higher Education
Click here for more information about Student Loans at MAFCU
For members struggling with the challenge of financing a college education, MAFCU offers low-interest, government-sponsored loans through the Federal Family Education Loan Program (FFELP), along with personalized attention throughout the application process. In addition, MAFCU members with student loans can reduce the interest rate on their loans by .25% if monthly payments are automatically deducted from a MAFCU account, and an additional .25% if they have a 36-month history of on-time payments.
- Stafford Loans. Federal loans offered by MAFCU to undergraduate and graduate students are called Stafford Loans. There are two types of Stafford loans, subsidized and unsubsidized. Subsidized Stafford loans are distributed based on financial need. The government pays the interest on the loan while the student is in school and during a grace period of up to six months after graduation or for allowable periods of deferment. Unsubsidized Stafford loans are available for students who do not show financial hardship, but still need money for school. Interest is paid by the borrower, which may be deferred until graduation, or paid while the borrower is still in school. The amount students can borrow depends on such factors as type of academic program, school year, and parental dependency status. Interest rates for federal Stafford Loans are adjusted each July. In addition, interest on the loan may be tax deductible.
- PLUS Loans. PLUS (Parent Loan for Undergraduate Students) loans are designed for parents who are paying for their dependent child’s undergraduate education. Federal PLUS Loans allow parents to borrow the entire cost of their child’s education, less any other aid, and is not based on need. To qualify for a PLUS loan, the parents must have a good credit history and are required to pass a credit check, and students need to fulfill certain criteria such as being enrolled at least half time in an approved college or university. PLUS loans are not subsidized. Interest rates on PLUS Loans are adjusted each July. Interest may be tax deductible.
- Consolidation Loans. MAFCU offers federal consolidation loans for students who have graduated, or are in a grace period, usually up to six months after graduation. A consolidation loan combines several student loans into one bigger loan, resulting in one convenient monthly payment. Monthly payments often are reduced, since terms usually are extended from the standard ten-year payment plan of a Stafford and/or PLUS loan to up to 30 years. However, extended terms often mean the total amount of the loan increases due to a higher interest rate.
Get Credit and More with a MAFCU Student Package
MAFCU’s Student Package lets students establish credit while giving them the tools to manage their finances responsibly. Students joining the Credit Union with the minimum $25 Share Savings deposit are eligible to receive the Student Package with free checking and a deb
it/ATM card, and may qualify for a student Visa credit card.*
“Many students become financially independent for the first time when they go to college and may need guidance in using credit wisely,” says Ann-Marie Gordon, MAFCU Vice President of Operations. “Our student Visa lets students build credit while learning to spend sensibly by providing reasonable credit limits, no annual fees, and a low fixed rate.” Just like MAFCU’s Visa Classic, the student Visa also includes such benefits as a 25-day grace period on purchases; cash anytime at ATM locations worldwide; auto rental insurance; travel protection; and concierge services during a hotel/motel stay.
Along with the MAFCU Student Package, the Credit Union has other convenient services for students, including student loans, 24-hour online banking, ATM accessibility (including an onsite ATM at the Massachusetts College of Pharmacy and Health Sciences) and great rates on savings programs. For more information, call MAFCU Member Services at 617-278-5600.
*Fees may apply at non-MAFCU ATMs.