If you have a college-bound high school student at home, it’s probably difficult to believe that your “child” will be setting off on his or her own in the not-so-distant future. It’s probably even harder to imagine how quickly decisions will need to be made about choosing the right school, deciding on a potential field of study and considering the options available to help pay for it all.
Bronco has always been strongly committed to providing financial education to the young people in our communities—members and non-members alike. In this article we’d like to introduce you to one of our most effective and eye-opening programs. We call it a Financial Reality Fair. It’s been designed primarily for high school-aged kids to give them the unique experience (if only for a few hours) of what it’s like to live in and budget for “the real world.”
Bronco has always been a firm believer in education, which is why we offer exciting scholarship opportunities each year for our student members. But for college-bound students who need additional funding on top of scholarships and grants, the federal government has enacted some changes that you need to be aware of before starting the student loan application process.
As a result of the recently enacted Health Care and Education Affordability Reconciliation Act of 2010, new federal student loans will no longer be offered through financial institutions like Bronco. Instead, students will receive those loans directly from the federal government (paid directly to the college or university) via the William D. Ford Direct Loan Program.
The idea is that the cost savings that will be realized from this new direct approach will be passed on in the form of more money available for students. Through this new program, several other changes were enacted to benefit students and their families. For loans issued after July 1, 2010 (keeping in mind that rates will be adjusted annually):
Rates on unsubsidized Stafford loans currently remain at 6.8 percent. For additional information on the different types of loans that are available, visit www.studentaid.ed.gov.
The application process for federal student loans remains basically unchanged—it all begins with filling out the Free Application for Federal Student Aid (FAFSA) at www.fafsa.ed.gov. The website will walk you through the entire application and aid process. While you’re there, click on the FAFSA4caster link on the left side of the page. If you’re starting the application process early, it will give you an estimate of your eligibility for federal student aid.
Before you begin your financial aid search, don't forget also look for the "free money" opportunities as well. In addition to applying for our John Alan Glasgow Memorial Scholarship, as well as the Jack E. O'Connor Memorial Scholarship offered by the Tidewater Chapter of Credit Unions ( of which we are a member), there are a number of good websites such as fastweb.com and scholarships.com that can help you search for additional scholarship opportunities.
Once you’ve exhausted these options, if you still require additional funding to supplement any scholarship and/or grant awards, Bronco does offer an Education Line of Credit (ELOC).
An ELOC affords an undergraduate and graduate student with the ability to conveniently draw funds only as they are needed, instead of taking out a large, lump sum loan.
This can be particularly beneficial and cost-effective because you only pay monthly interest on the amount withdrawn. In addition, interestonly payments extend for six months after you graduate or withdraw from school, providing you with the opportunity to find employment before having to make full loan payments (principal plus interest).
For students who have existing loans made under the previous Federal Family Education Loan (FFEL) program through Bronco, if additional disbursements are already scheduled, we are allowed to continue to pay out the funds promised. However, in certain cases, cut-off dates will be established and these loans must be converted to Direct Loans.
We understand that the financial aid process can be extremely confusing, so if you have any questions about recent changes, Student Loans you currently have with us, or if you’d like more information about our Education Line of Credit (ELOC), stop by any of our convenient offices, give us a call at 757.569.6000 (toll-free at 1.800.667.BFCU) or email us at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .
Page 1 of 4
Savings are insured by NCUA up to $250,000. See a member Service Representative for more information.
Site designed and maintained by Raoust+Partners
This credit union is federally-insured by the National Credit Union Administration. This site contains links to other sites in which BFCU does not control or monitor the content. We Do Business in Accordance With the Federal Fair Housing Law and the Equal Credit Opportunity Act.
