An Education Line of Credit works differently
Secure undergraduate and graduate funding without yearly reapplication, changing rates, or overborrowing.
Flexible funding for smarter borrowing
If scholarships, grants, and federal loans don't cover everything, our Education Line of Credit can help fill the gap. Unlike traditional private student loans, which typically require a new application and credit check each year, an Education Line of Credit operates more like a reuseable borrowing pool.
Why a line of credit?
Because costs don't all come at once. This tool allows you to apply once and draw from the line of credit over several academic years. This type of borrowing may work well if:
- You expect to need private funding across multiple years of school and want to avoid reapplying each year
- Your expenses vary from semester to semester, making it difficult to predict exactly how much you will need upfront
- You want to minimize interest costs by borrowing only what you need, when you need it
- You are a returning student and have already exhausted federal aid options for the year
What are the benefits of an Education Line of Credit?
Eliminate unnecessary borrowing by borrowing what you need, when you need it. This means if you only need to cover a small portion of your college costs to start, you can borrow less and only pay interest on that amount until you are ready to borrow more.
- Draw funds by semester or year, as needed
- No origination fees or prepayment penalties
- Interest only applies to funds that are drawn
- Borrowers can use the funds for a range of education-related expenses, including tuition, housing, textbooks, and technology
Here's how it works
With our unique Education Line of Credit, you will not need to reapply each year, assuming there are no significant changes to the borrower or co-applicant credit scores. Each year, you will simply request additional funds (called a “draw”) for the amount you wish to have disbursed to your school. Funds are disbursed to your school based on the school’s disbursement cycle. You will request the specific draw amount from your line of credit each year.
1. Application
Complete the application and get approved.
2. Certification
School approves the requested amount.
3. Disbursement
Funds are sent to your school when they request disbursement.
4. Request Funds
Access additional funds when needed.
Explore more free resources
At MIT Federal Credit Union, we partner with Student Choice to offer innovative, fair-value student lending options. We also offer personal, one-on-one consultations for all your financial aid, repayment, and refinancing questions.
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