Graduate Student Loan Variable Rate

(1):  The ANNUAL PERCENTAGE RATE (APR) is the highest Prime Rate as stated in the Wall Street Journal (index) plus a margin of 5.00% to the value of the index. The rate on new and existing balances will change on the 1st day of each year to reflect any change in the index. 

We will use the index value available to us as of 10 days before the date of any APR adjustment. The maximum ANNUAL PERCENTAGE RATE will never be greater than the maximum rate allowed by state law in North Carolina which is currently 18.00%.  There is a minimum ANNUAL PERCENTAGE RATE of 5.00% (floor).  Any increase in APR will result in higher payments until what you owe has been repaid. 
The maximum credit limit will be based on school certification and actual cost of attendance and your documented ability to repay, less any other financial assistance and aid received up to a maximum limit of $170,000.00.  The minimum loan amount will be $5,000.00. The Credit Union reserves the right to adjust your Limit at any time based on its discretion. 

Draw period is the period during which you may request advances (subject to the limitations specified in advances) This period begins after the first advance is disbursed to the school and continues until: (1) you graduate; (2) you fail to maintain satisfactory progress according to the school’s standards ; (3) you fail to maintain enrollment as at least a half-time student; (4) you withdraw from the school, or (5) you fail to sign a reaffirmation upon the credit union request. The Draw period may also be terminated if you fail to provide verification of information.  Termination of the Draw period places you into the Grace Period.
Advances: You may only use advances for educational expenses as outlined in the applicable program’s tuition fee schedule and all funds will be disbursed directly to your school.  During the Draw period the school must certify funds and provide proof of satisfactory progress and proof of enrollment as at least a half-time student status at intervals requested by the credit union. 


After the initial advance, finance charges (interest) will begin to accrue immediately, calculated by taking the unpaid balance for each day since your last payment (or advance if you have not yet made a payment) and multiplying that by the applicable daily periodic rate.  


Full Deferment: If you maintain the conditions set forth in the Draw period, you shall have the option of fully deferring principal and interest on the line of credit until graduation or the termination of the Draw period.  If you default on either condition or graduates, the Draw period ends and you will immediately enter the six month Grace period.

Grace period: No payment of principal or interest shall be due during the six (6) month period immediately following the Draw period.  If you leave school and return prior to entering repayment, you will receive the full six (6) month grace period when you leave school again as long as you have maintained the conditions set forth in the Draw period. 

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The cost of higher education in the United States rises year after year, and many students are finding that they are unable to support themselves. There are a number of other avenues that you can explore when looking for sources of funding for your education.

On-line Scholarship Search

Research scholarship and financial aid options online. The following sites provide information specifically for international students:

Your Home Country

Your own home country could possibly be a source of funding, either from organizations or companies from your home country or you government. For instance, Saudi Arabia launched a program that provides full scholarships to over 10,000 Saudi students studying in the USA. Investigate this option thoroughly before you leave. Bear in mind when you are applying for aid from your home country that there may be some stipulations involved. For example, you may have to return home to your country once you have graduated.

International Organizations

There are several international organizations, such as the Fulbright Commission, who grant aid to students all over the world. Other such organizations that offer aid are:

• The United Nations
• AMIDEAST
• World Council of Churches
• Soros Foundation
• World Health Organization

Many of these organizations require you to be in your home country when you apply, so plan ahead, as they can be very competitive.

U.S. Universities

Many U.S. colleges and universities offer limited financial aid for international students through their financial aid offices. In general, however, there is much less money available for undergraduate study in the United States than there is for graduate study. Visit our Schools Awarding Financial Aid pages to see which US schools offer aid to international students. Private institutions can sometimes discount or reduce the costs of tuition; public institutions seldom have this option. You should request information about financial aid when you request an application form from the institution's admissions office.
In some instances, it may be possible for you to participate in a formal exchange between your home institution and the institution you wish to attend in the United States. You can get more information on such exchanges by contacting the international student offices at the U.S. institution or by contacting the corresponding office at your institution. It is possible for this kind of person-for-person exchange to reduce expenses.

U.S. Government

International students are not eligible for U.S. federal aid such as Stafford Loans or Plus Loans. However, there may be other sources of funding if you are an international student coming into the U.S. to study, so check with the U.S. embassy in your home country.

Your family

The biggest source of income for international students is your family. A recent study by the Institute of International Education (http://www.iie.org) showed that nearly 65% of all international students in the USA were funded by there family and relatives, with college and university funding coming in second. International student funding can be quite competitive, so your family may be another source of funding for you to explore.

International Student Loans

International students are not eligible for U.S. government-backed loans like Stafford Loans or Plus Loans, but international students are eligible for private international student loans to study in the USA. As long as you attend an approved school, and have a US citizen or permanent resident to co-sign for you, you can borrow as much as you'll need. Be careful about taking on too much debt, you should only borrow what you truly need to cover the cost of studying and living in the US.

Employment

As you begin to think about funding sources for your educational and living expenses in the United States, remember that you cannot count on working in the United States unless you have been granted a teaching or research assistantship. When you submit evidence of your financial resources, you cannot reply on potential income. The income on which you base your application must be assured, and it must be equal to or exceed the costs of the first year of your studies.
Immigration regulations are very strict with respect to working while carrying a student visa. F-1 status, which is the most common status for full-time international students, allows for part time, on-campus employment (fewer than 20 hours per week.) J-1 student status allows for similar employment, with similar restrictions, as long as permission is given by the exchange visitor program sponsor. Visit our Working in the USA pages for more information on employment opportunities and restrictions for F1 students. M-1 visa holders for technical and vocational programs are not permitted to work during the course of their studies.
Jobs available on campus typically do not pay much, certainly not enough to finance a university education. Do not count on this kind of a job for anything more than a supplement to other funds.
Careful long- and short-term planning is necessary to ensure that you will have a rewarding educational experience in the United States. If you are realistic about your financial needs, you will be better able to enjoy the exciting academic and cultural experience of living and learning in the United States.

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International Student Loans

You should always carefully evaluate how much money you will need to study in the USA. Then you will need to research and apply for scholarships, financial aid from your school, and find money from any other source, including family funds. After exhausting these avenues, most international students still have a funding gap, and that's where international student loans come in.

What is an International Student Loan

Federal student loans are popular with US students studying in the US, but they are not available to international students. Instead, international students are eligible for international student loans, specialized private education loans available to international students studying in the US.
International Student Loans are now a very realistic way to finance your education in the US. Loans are very flexible, and can offer loan amounts high enough to pay for your entire education, but with extended repayment terms and reasonable interest rates, so you can afford the repayment after you graduate.

Co-Signers

All international students applying for loans must have a US co-signer in order to apply. A co-signer is legally obligated to repay the loan if the borrower fails to pay. The co-signer must be a permanent US resident with good credit who has lived in the US for the past two years. The co-signer is often a close friend or relative who can assist in getting credit, since most international students cannot receive credit on their own.

Interest

Interest is the amount charged by the lender in addition to the amount of money that you borrowed. The interest rate is calculated based on an index plus a margin that will add an additional percentage interest rate depending on your co-signer’s creditworthiness. The two most common indexes used for international students are the Prime Rate and LIBOR Rate.

• Prime Interest Rate – This index is determined by the federal funds rate which is set by the US Federal Reserve.
• LIBOR – The LIBOR (London Interbank Offered Rate) is based on the British Bankers’ Association and is used on the London interbank market. The rate is an average of the world’s most creditworthy bank’s interbank deposit rates for overnight and one year terms.

When evaluating the loan, the lender will clarify which index the plan uses. Then, there will be an additional margin that will be added based on the borrower’s individual criteria, including the co-signer’s credit history. Based on their creditworthiness, an additional interest rate will be added to the index. This will be the total interest you owe. When your application is approved, your specific margin will be disclosed to you, at which point you can accept or refuse the loan.

Repayment

Repayment will vary depending on the loan option you choose. Since most international students are not able to work while they study in the US, repayment must be considered as an extremely important feature in your loan. You will need to consider how much the monthly payments will be, when payments will begin, and how long you will be able to defer paying back the loan. The repayment period generally ranges from 10-25 years, but the larger the loan, the longer the repayment period. The standard repayment plan options are:

• Full Deferral – Students are able to defer payment until 6 months after graduation as long as full-time status is maintained. Students can defer payments for a maximum of four years, which is the typical length of a degree.
• Interest Only – International students only pay the interest while in school, up to four consecutive years, and can defer the principal until 45 days after graduation, or when the student drops their course load to part-time.
• Immediate Repayment – Payments on both interest and principal are due immediately once the loan has been dispersed.

Frequently Asking Questions

Who is eligible to apply for international student loans?

Students who are not US citizens or non-citizen permanent residents and who are attending an eligible US college or university may apply for international student loans.

What can international student loans be used for?

International student loans can be used for education-related expenses such as tuition, books, fees, insurance, and room and board.

What is the maximum loan amount I can apply for?

You can apply for up to the total cost of education, minus other aid, as determined by your school. In order to determine your maximum loan amount, you will need to contact your school’s financial aid office. After you apply and receive credit approval for you and your co-signer, your school must certify the amount of the loan.
When used responsibly as part of an overall education funding plan, international student loans can help to put a US education within reach, regardless of your financial circumstances. We offer two main loan resources dedicated to providing funding for international students: International Student Loan and Study Abroad Loans - please visit them for more information.

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Membership Account Agreement. This document is subject to applicable federal laws and the laws of the state of North Carolina. As used in this agreement, the words "I", "me", "my", "you" or "your" refer to the primary owner.

The words "Credit Union" refer to Coastal Federal Credit Union. Being within the field of membership, I hereby apply for membership in the Credit Union; I agree to conform to the Credit Union bylaws, Truth-In-Savings, Funds Availability Schedule,

Fee and Rate Schedule and amendments thereto; subscribe for at least one share; and if joint owners are designated, I agree to the conditions printed on this form and the Account Change Card form.

Under the penalties of perjury, I certify that the information provided on this form is true, correct, and complete. In accordance with the USA Patriot Act, we require documentary evidence to verify this information. In addition,

I understand that a consumer credit report may be obtained from one or more consumer reporting agencies (credit bureaus, ChexSystems, etc.) for approval of this request.

I understand that approval of my VISA Check Card will automatically entitle me to access the Credit Union automated teller machines (ATMs) and any Credit Union approved ATM networks.

I agree that the services applied for on the front of this form are granted pursuant to the terms of the Electronic Funds Transfer Service (EFTS) Disclosures which will accompany the access card or service instructions. I also agree to abide and be bound by the terms of the agreements and disclosures of each service approved.
Any financial service provided by the Credit Union may be used for any transaction permitted by law. I agree that illegal use of any financial service will be deemed an action of default and/or breach of contract and such service and/or other related services may be terminated at the Credit Union's discretion.
 I agree to hold the Credit Union harmless with regard to any claims, suits or other legal actions arising from or related to such illegal use.

In addition, if I use any Credit Union service in an illegal manner, or facilitate or participate in any such illegal use of Credit Union services, I agree to indemnify the Credit Union from any loss, liability or expense (including attorney's fees) arising from or related to such illegal use of Credit Union services.

If I fail to provide the Credit Union with the correct Tax Identification Number (TIN), any fees that may be imposed on the Credit Union resulting from this error will be assessed to my account.

Any objection with respect to any item shown on a statement of account shall be waived unless made in writing on or before the thirtieth (30th) day following the day the statement is mailed.

This account shall be subject to service charges in accordance with Fee Schedules adopted by the Credit Union from time to time.

The use of this account is subject to such other terms, conditions and requirements as the Credit Union may establish from time to time.

The Credit Union reserves the right to terminate this account without notice or consent if it is not maintained in accordance with normal financial practices.

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