As a student, you might have access to a college credit union where you can do your banking and borrowing. Credit unions for college students offer the same services and products as most banks, but they often provide benefits that banks don’t.
Whether you’re a current college student or already graduated, your college credit union could offer one of the best banking experiences. Let’s look at:
What is a college credit union?
Although college credit unions have ties to the educational institutions they serve, they aren’t directly run or overseen by the college itself. Not every college or university will have its own credit union. But if it does, it will likely offer useful benefits for students.
“College students can benefit greatly from membership in their local college credit union,” said Derek Knowlton, vice president of marketing for University Federal Credit Union, which served the University of Utah before expanding its membership to its community at large. “Not only can they get better rates, but they can often get extra benefits and perks because of the credit union’s on-campus relationships and programs.”
6 perks of credit unions for college students
Generally, the products and services provided by a college credit union will be very similar to those found at other banks and credit unions. But on top of that, college credit unions offer several unique benefits to college students.
1. Low-cost banking and borrowing
2. On-campus integration and support
3. Products tailored to members’ needs
4. Personal finance educational resources
5. Help with college costs
6. Easy-to-meet membership requirements
1. Low-cost banking and borrowing
One of the biggest benefits of a college credit union is low-cost borrowing and banking.
“Credit unions don’t have shareholders that demand profits,” Knowlton pointed out. “They are member-owned, nonprofit cooperatives that return their profits back to the members in the form of lower rates and member benefits.”
A credit union for college students can offer some of the lowest interest rates on loans and credit of all kinds. They also offer free and low-fee checking and savings accounts.
2. On-campus integration and support
Another key benefit for college students is the added convenience. Many credit unions for students are directly integrated with your campus life, Knowlton says.
In some cases, a college credit union is the only financial institution with an on-campus presence. This might include branches and ATMs. But it may also include seamless integration with meal programs and other on-campus programs.
Sometimes a college credit union will also sponsor on-campus services and programs.
3. Products tailored to members’ needs
“[College credit unions also] offer many different products that are geared toward students, such as student Visa cards,” Knowlton said.
Student credit cards can be a low-cost way to start building credit. In addition, student checking gives members free access to banking services.
Even after leaving college, these credit unions offer products and resources suited for young adulthood, such as first-time buyer programs for auto and home loans.
4. Personal finance educational resources
Many college credit unions recognize that most members are in a stage of life in which learning about personal finance and money management are important.
College credit unions often offer free seminars, online courses and other resources to help members learn how to responsibly manage money. The credit union often works with the college’s personal finance programs as well.
5. Help with college costs
College credit unions help students cover the costs of higher education in some cases, too. College scholarships are a common offering.
Typically, credit unions for college students also offer private student loans with low rates. For alumni, many college credit unions offer student loan refinancing that can make repayment faster and more affordable.
Many college students have low income and a thin credit file. But a credit union’s flexible lending standards make it easier for them to qualify for private student loans or student loan refinancing.
6. Easy-to-meet membership requirements
As a college student or alumnus, meeting membership requirements for a college credit union is easy. Simply by being a student or alumnus, you probably already qualify for membership with your college’s credit union.
To know for sure, you can visit the credit union’s website and look for a page outlining membership requirements. Or you can visit a branch or call to discuss your eligibility to join.
And if you do take the credit union plunge, chances are good you’ll save money — and never look back.
Rebecca Safier contributed to this report.
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