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Student Loan Questions and Answers

Applying

Getting your money

Repaying your loan

 


Applying

    Will having a cosigner help me get approved?
    Yes. With a strong cosigner, the likelihood of getting preliminary approval in as few as 15 minutes and a check mailed to you in as little as 5 business days goes way up. And, a cosigner with excellent credit may qualify you for lower rates and fees. Click the following link for more detailed cosigner Commonly Asked Questions. In addition, a Cosigner Release option is available to borrowers who make their first 48 payments on time and who elect to make automated payments.1 Do I have to fill out the standard Free Application for Federal Student Aid (FAFSA) form, get federal loans first, or inform my financial aid office?
    Students must apply for federal loans before applying for any National City Direct Student Loans. To obtain a National City Direct Student Loan, you may apply online or on the phone in as little as 15 minutes. Do I need to know what school I'm attending to apply for a National City Direct Student Loan?
    Yes, your school information is important. Once your loan is conditionally approved we'll ask you to verify your enrollment information. What if my school is not on the approved school list?
    Chances are it's on the list. If it isn't, call us at 1-800-255-8374 to confirm the eligibility status of your institution. If the school isn't approved, we'll speak with your school's financial aid office for you and tell them how to get on the approved school list. To apply, I have to know my enrollment status? What if I don't?
    Contact your college and they'll tell you whether they consider you "full-time," "half-time," "part-time" or some other designation. You must be enrolled at least half-time in a degree or certificate program to be eligible for a National City Undergraduate Direct Student Loan. I'm a foreign student attending a U.S. school. Can I still apply for a National City Direct Student Loan?
    Yes. In order to be approved, you'll need to apply with a creditworthy cosigner who is a U.S. citizen or permanent resident and who has resided in the U.S. for the previous two years.

Getting your money

    How much can I borrow?
    The minimum is $1,500 per year. The maximum is $40,000 per year.2 The lifetime limit is $130,000. Undergraduate and graduate borrowers may borrow annually up to the lesser of the cost of attendance or $30,000 ($40,000 for certain schools where the annual cost of attendance has been determined to exceed 30,000). Borrowers in Continuing Education and K-12 loan programs may borrow annually up to $30,000. How quickly can I get the funds?
    With our online application, downloadable credit agreement and fax-back option, you could receive funds in as little as 5 business days after your conditional approval. You will need to keep your end of the bargain (like providing quick, proper proof of your enrollment in your school) to help us keep ours. The 5 steps at a glance. Where do you send the check?
    The check goes directly to you, and it is paid directly to you. Are there out-of-pocket fees I have to pay?
    No. Our origination fee is added to the loan principal, so you don't have to pay any out-of-pocket fees. How is the interest rate calculated?
    The interest rate for the National City Direct Student Loan is a variable rate based on a LIBOR Index. The LIBOR Index is equal to the monthly LIBOR (London Interbank Offered Rate) published on the first business day of each calendar month. Your rate will be determined by adding a margin to the LIBOR Index. We determine your margin based on your creditworthiness and the creditworthiness of any cosigner.

Repaying your loan

    What are the repayment options for a National City Undergraduate Direct Student Loan?
    You have three choices: Delay repayment while you're enrolled in school at least half-time. Save money by making small, interest-only payments while enrolled in school at least half-time. Or start paying right away, which will save you the most over the life of the loan. See examples of repayment options. Additionally, get up to 0.50% interest rate reduction if you make your first 36 payments on time and elect automated payments.3 How long can I take to pay?
    National City Undergraduate Direct Student Loans come with a maximum 20-year repayment term and $25 minimum monthly payment. National City Undergraduate Direct Student Loans have a variable interest rate equal to the LIBOR Index plus a margin as low as 3.50%. The amount of your margin may be different, based on your loan program and your credit history. See actual APR data and examples of repayment options. Is there any penalty for paying the loan off early?
    No. You can pay off your National City Direct Student Loan at any time, even if you're still in school.
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1 Cosigners will be eligible for cosigner release upon request if (1) the first 48 payments of principal and interest are paid on time, (2) at any time prior to the 48th on-time payment, the borrower who receives the monthly bill elects to have monthly principal and interest payments transferred electronically from a savings or checking account, and continues to make such automatic payments through the 48th payment, and (3) the borrower meets creditworthiness criteria at the time of the release of the cosigner. The cosigner release is only available for undergraduate, graduate, and continuing education loans.

2 Undergraduate and graduate borrowers may borrow annually up to the lesser of the cost of attendance or $30,000 ($40,000 for certain schools where the annual cost of attendance has been determined to exceed $30,000). Borrowers in Continuing Education and K-12 loan programs may borrow annually up to $30,000.

3 The 0.25% interest rate reduction is available for borrowers who elect to have monthly principal and interest payments transferred electronically from a savings or checking account. The interest rate reduction will begin when automatic principal and interest payments start, and will remain in effect as long as automatic payments continue without interruption. This reduced interest rate will return to contract rate if automatic payments are cancelled, rejected or returned for any reason. Upon request, borrowers are also entitled to an additional 0.25% interest rate reduction if (1) the first 36 payments of principal and interest are paid on time, and (2) at any time prior to the 36th on-time payment, the borrower who receives the monthly bill elects to have monthly principal and interest payments transferred electronically from a savings or checking account, and continues to make such automatic payments through the 36th payment. The reduced interest rate will not be returned to contract rate if, after receiving the benefit, the borrower discontinues automatic electronic payment.

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