USAA Student Loans – USAA began in the year 1922, USAA is a now a Fortune 500 company with over 12 million members. It delivers financial products and services with attractive rates and perks.
USAA is a financial services body for service members, veterans and their relatives that offer everything from life insurance to mutual funds.
In this article, I will be focusing on USAA student loans.
Why Doesn’t USAA Offer Student Loans?
USAA used to have a student loan referral program with Wells Fargo, which offered a 0.25% rate discount to USAA members.
But it stopped this program back in December 2016 due to a lack of demand. Instead, it’s focusing on other products and services that can benefit all members, rather than just a small group.
It still offers several college-related products, such as student checking accounts, secured credit cards, and college savings investment accounts.
Membership is Open to the Following Groups:
- Active retired, and honorably separated members of the U.S. military
- Cadets or midshipmen in training academies within the U.S.
- Reserve Officers’ Training Corps (ROTC) members
- Adult children of current or former USAA members
- Widows, widowers, and former spouses of members who had an established USAA membership while married
USAA Student Loans
USAA once offered private student loans through a partnership with Wells Fargo. USAA members automatically received a 0.25% interest rate discount.
However, in December 2016, the establishment announced it would no longer offer member discounts for new Wells Fargo student loans.
It advised borrowers to explore their student loan options through Wells Fargo directly. Additionally, USAA noted that the change had no impact on existing Wells Fargo student loans.
What to Do If You Have USAA Student Loans
Borrowers with USAA student loans should follow the original repayment schedule and direct any questions to Wells Fargo by calling (877) 336-1316.
You might choose to refinance your student loans to get a better interest rate or repayment terms or a lower monthly payment, but it isn’t necessary if you’re happy with your current terms from Wells Fargo.
How to Refinance Your USAA Student Loans
When you refinance your student loans, the new lender will pay off the remaining balance on your current student loans and issue you a new loan. The new loan might offer a lower interest rate or better repayment terms.
Benefits of USAA Student Loans
- Opportunity to receive a discounted, member-only rate on student loans through a USAA-Wells Fargo partnership (receive a 0.25% USAA membership discount)
- A discount of 0.25% for members who enroll in automatic payments
- Low-interest rates on private student loans
- A six month grace period after graduation before loan repayment begins
- The ability to borrow up to 100% of education costs
- The ability to release co-signers from the loan after either 24 or 48 payments are made on time
- Flexible loan types that are available to both students and their parents
- Defer payments while the student is still attending school
- No application fee and no fees when loan begins
- No penalty is assessed for students who opt to pay their loan balance off early
Applying for a USAA Student Loan
Students who are interested in applying for a loan can find out quickly and with no stress. Students may either call a toll free number or go to USAA’s website.
Once on the USAA website, students can go to the student loan page and click the green get started button.
The website will then indicate that USAA members are eligible for specific discounts and will transfer them to the Wells Fargo loan application page.
At this page, students are required to complete a form which contains demographic information, such as income, school information, and work history.
In order to apply, USAA indicates that borrowers will need to have some information handy. This includes their current address and phone number, their social security and driver’s license information, information about their current employer, and contact information for a reference that can vouch for them.
At this time, students can opt to have a cosigner or not. Lots of undergraduate students will have to have a cosigner due to limited credit history or lack of income, through loans are available to those without one.
Even those students who do have an established credit history may receive a lower interest rate, which could save them thousands of dollars if they add a cosigner.
Any adult who is at least 18 years of age or older and who meets the income, employment, citizenship, and credit history requirements can apply to be a cosigner.
The cosigner will have to provide their information as well on the application form. Cosigners will have to apply after you have submitted your application.
Student applicants are required to give their cosigner an application number, which they will need in order to complete the cosigner application.
After the application has been submitted, Wells Fargo may need additional information in order to determine eligibility.
They will also need you to sign a form. They may ask for additional documentation from your school to verify that you are attending or plan to attend that school.
Finally, Wells Fargo will contact you once a decision has been made. At that time, students can decide whether to accept or decline the loan terms if they were deemed qualified.
Students will also want to ensure that they complete the FAFSA application prior to applying for a private student loan.
The FAFSA will tell students whether they are eligible for any federal funding, which they may want to maximize first, before resorting to private loans.
Federal loans often have better interest rates as well as more flexibility during the repayment process.
1. Are my payments guaranteed?
If you entered the correct dollar amount and biller information, we’ll process the payment on your specified date.
If the payment doesn’t post on time, we’ll cover up to $50 in late fees, penalties or related finance charges. View the USAA Pay Bills Terms and Conditions for more information.
2. How much does it cost to pay my bills on usaa.com?
USAA Pay Bills is free.
3. How safe are USAA Pay Bills?
Paying your bills online lowers the risk of identity theft by reducing the use of checks and printed statements.
4. Who can I pay using USAA Pay Bills?
You can pay anyone in the U.S. who you’d normally pay by check or automatic payment
5. How do I add a new bill?
On the right side of the USAA Pay Bills page, select “Add New Bill.”
6. Will I be notified if a bill I have hidden is due?
You’ll get a notification if you’ve:
- Signed up to get e-bills for the biller.
- Set up a reminder for the bill through USAA Pay Bills.
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