For US citizens and permanent residents pursuing their undergraduate degrees or planning to refinance their loan for a Master’s degree, the MIT Federal Credit Union loan is one of the viable private loans available in the US.
History of MIT Federal Credit Union
Frank Conant and eleven other MIT employees founded the MIT Federal Credit Union Loan or MITFCU to meet the financial needs of its members and students. The member-owned cooperative financial institution started with savings accounts and loans for MIT employees but began expanding the offerings for undergraduates through private students loan, tuition assistance loans, and Student Loan Refinance for Master’s candidates (including MBAs).
MITFCU - Eligibility & Criteria for Private Students Loan
To avail of the Private Students Loan from MIT FCU, one must be enrolled for a program (degree) at an approved school. Currently, MIT FCU has 1769 approved schools. Along with this, they must also be members of MIT FCU. Without being a member, one can apply, but to get the loan funded, you need to become a member.
See: Eligible members (By employers)
MIT FCU offers loans only to US citizens or permanent citizens in the US. Students need to meet the age criteria as per the state and the SAP or Satisfactory Progress Criteria. Checking the union member eligibility is also crucial as at the time of loan funding, you need to be a member.
Students’ Private Loans Requirements (MIT FCU)
| Students’ Private Loans Requirements | MIT FCU |
|---|---|
| Enrolled in a degree-granting program at an approved school | Must be a member of MIT FCU either while applying or while getting funds. |
| US citizens or permanent residents. | Must be a legal adult |
| In case of not fulfilling age criteria, must require a co-borrower. | Enrolled in a degree-granting program and met the school’s minimum Satisfactory Academic Progress (SAP) criteria. |
| Meet MIT Federal Credit Union's standard underwriting criteria | Eligible for credit union membership. |
MITFCU Loans - Eligibility for Students Refinance
| Eligibility for Students’ Refinance | MIT FCU |
|---|---|
| U.S. citizens or permanent residents | Must be a legal adult. |
| Graduated from public or private not-for-profit school from the approved school list | If you are not of legal age in your state you may qualify with a cosigner |
| A bachelor's degree is the minimum required | Repayment or Grace for 1 or more than 1 Private or Federal student loan |
| Able to meet MIT Federal Credit Union's standard underwriting criteria | Eligible for credit union membership |
MIT FCU asks for almost the same eligibility for all types of student loans and refinance. The eligible candidates for the student refinance must be a college graduate who must hold a graduate degree from approved schools or colleges.
At the time of disbursing the loan, students must become a member of the union. Apart from this, there are several eligibility criteria that must be met by all the loan applicants or those seeking refinancing.
Eligibility for Students’ Refinance (MIT FCU)
MIT FCU - Loan Amount
Students can avail of up to a maximum of $100,000 borrowing to finance their education from MIT FCU. This amount can be borrowed under refinance of your degree. Through Private Loans, MIT FCU provides the student with a maximum of $75,000 without any collateral.
A tuition assistance loan is also available with a maximum loan amount of $25,000, which must be repaid in 12 months without any collateral.
| Loan | Loan Amount |
|---|---|
| Private Students Loan (Variable Rate Solution) | $75,000 |
| Private Students Loan (Fixed Rate Solution) | $75,000 |
| Students Refinance | $100,000 |
| Tuition Assistance Loan | $25,000 |
MIT FCU - Terms and Conditions
MIT FCU offers the loan amounts to the students opting for Graduation or Post Graduation from approved schools and universities. Among these approved schools, MIT is one. FCU offers that amount after deducting the amount availed from existing private loans and scholarships.
The maximum loan one can avail of from FCU is $100,000, along with the lowest interest rate of 3.75 % to 5%, which must be repaid in 5 years. Students can also take almost 15 years to pay back their loans which will eventually raise the interest rate or APR.
| Loan Type | Interest Rate | Loan Amount | Payback Period |
|---|---|---|---|
| Variable Rate Solution (Student Private Loan) | 3.25% - 6.25 % APR | $75,000 | 20 to 25 years |
| Fixed Rate Solution (Student Private Loan) | 4% - 7% | $75,000 | 10 years |
| Fixed Rate Solution (Student Refinance) | 3.75% – 5% | $100,000 | 5 years |
| Fixed Rate Solution (Student Refinance) | 4% -5.25% | $100,000 | 10 years |
| Fixed Rate Solution (Student Refinance) | 4.25% - 5.50% | $100,000 | 15 years |
| Tuition Assistance Loan | 6% | $25,000 | 12 months |
Fixed vs. Long Repayment Period
A fixed-rate solution with a 5-year repayment schedule is ideal for anyone earning more than $150,000 in median base salary or earning their MBA from a top US Business School. For other candidates, increasing the repayment period would be a viable option.
A student seeking refinancing can get three different options depending upon the time period and the interest rate. Candidates seeking loans for employer-approved courses can take the help from the tuition assistance loan, where one can leverage the loan and, upon completion of the course, repay it after reimbursement.
References