<p>I'm hoping for opinions regarding a private loan that is available through our local credit union. Here are the details:</p>
<p>It is a Line of Credit, up to $75,000
Student can apply with a cosigner
No origination, guarantee fees or prepayment fees
One time application for the entire college career
Funds are disbursed directly to the college each semester (amount specified by us)
Any excess funds sent to the school can be requested back from the school by us (to use for books or other expenses we deem necessary)
Variable rate, resets quarterly (rate based on credit score)
Interest rate has a floor of 6% and currently is Prime + 3.25% (ETA that my husband's credit union offers the same option only the floor rate is 5.25%-obviously this floor is better)
Option for automatic withdrawal of payments which reduces interest rate by 0.25%
Can defer repayment while student is in school
If all payments are made on time for 4 years, cosigner can request to be removed from the loan
There is a straight repayment option after graduation - payments over the course of 20-25 years or a "graduated repayment" in which the 1st two years are reduced payments which helps with a student who is trying to situate in a new job</p>
<p>How does this loan sound to folks in comparison to other private loans? Pitfalls I should be aware of? I'm a member of this credit union already and have had good experiences with them to date.</p>
<p>We will have to take a private loan somewhere, is this a decent deal or should I keep looking?</p>