OCCU Student Loan Review 2020: Access the Finance you Need to Study

Founded in Oregon, in 1956, OCCU offers a considerable range of loans and bank accounts for those eligible to join as members. For students, there’s just one option, a private student loan. This is available with both fixed and variable APRs, depending on your preference.

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Table of Contents

    Why Get a Student Loan From OCCU?

    There are a few reasons why some might consider applying for a student loan with OCCU. For example, for those with excellent credit, APRs could start from as low as 2.99%. In addition, there aren’t any origination or prepayment fees to worry about.

    What Student Loans Does OCCU offer?

    The student loan options provided by this union are quite limited in comparison with most of its competitors. There are private loans available for both undergraduates and graduates. Applicants have the option of selecting either fixed or variable APRs for the duration of their repayment term.

    The following applies to each loan option:

    • No origination or prepayment charge
    • 0.25% interest reduction if you sign up with Autopay
    • Three repayment plans available
    • Co-signer required for applicants in some circumstances (see below)
    • Co-signers released from their obligation after 36 consecutive timely payments
    • Students must attend an eligible school in Oregon (contact OCCU directly for more)

    Undergraduate Variable Loan

    APRs

    2.99% to 8.74%

    Terms

    Up to 10 years

    Loan Amounts

    Up to $15,000 per year - and $50,000 overall

    Undergraduate Fixed Rate Loan

    APRs

    7.74% to 12.74%

    Terms

    Up to 10 years

    Loan Amounts

    Up to $15,000 per year - and $50,000 overall

    Graduate Variable Loan

    APRs

    2.99% to 8.74%

    Terms

    Up to 10 years

    Loan Amounts

    Up to $15,000 per year - and $50,000 overall

    Graduate Fixed Rate Loan

    APRs

    7.74% to 12.74%

    Terms

    Up to 10 years

    Loan Amounts

    Up to $15,000 per year - and $50,000 overall

    Co-signers

    A co-signer will be required for applicants without:

    1. Eight years of credit history
    2. A credit rating of at least 720
    3. At least $40,000 in annual income
    4. 35% or less debt-to-income ratio

    Repayment Options

    Successful applicants have three options:

    • Defer - Don’t pay anything while enrolled, but interest will accrue and added to what you owe
    • Interest-only - Pay interest while enrolled, but defer principal payments until school completion
    • Full payments - Begin repaying principal and interest fees immediately

    Who can join?

    One of the following must apply to become a member:

    • Reside or work in one of 28 listed counties in Oregon
    • A family member of an OCCU account holder
    • Employed by the State of Oregon

    Applicants must also be a least 18 years old, and either a US citizen or permanent resident.

    Pros and Cons

    Pros

    • Low APRs for those with excellent credit
    • Autopay interest reductions
    • No origination fee
    • No prepayment fee

    Cons

    • Strict membership criteria
    • Comparatively low maximum loan amount
    • Co-signer needed for any applicant with a credit score below 720

    Conclusion

    OCCU requires co-signers for loan applicants with a credit rating below 720, and its membership eligibility is extremely limited. Alternatively, PNC offers its various student loan services to the whole country. RSLFC is another superb choice, with loans of up to $250,000 available, and repayment terms as long as 20 years.