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Charter One | Good Banking is Good Citizenship

Student Services

Finding a Loan

Choosing the right loan for you means selecting the one best suited to your individual situation. We can help you find the best fit.

Overview of Student Loans

Choosing the Right Student Loans

Choosing a Lender

Using Loans (Home Equity vs Student)

What Happens if I'm Denied a Private Loan?

Student Loan Overview

Seeing the bigger picture with school loans

Going to college is a complicated process—but the same basic steps are followed by most prospective students and their parents:

Decide on a short list of potential schools where you are interested in attending college.
File the FAFSA as soon as possible after January 1, even if you don't know where you will be attending school. You can always go back to your FAFSA application and make updates via the FAFSA website.
Apply for any academic grants and scholarships.
Review your financial aid package to see your total expenses, federal grants, scholarships, and student loans available. Typically it is received in late March from schools that have accepted you for admission, but check with the school for specific dates.
Determine the gap your family is facing after exhausting grants, scholarships and federal loans to meet the total cost of attendance.
Utilize savings or apply for private student loans to cover the remaining costs.

Here are the principal types of student loans for college:

Federal Perkins Loans (need based)
Subsidized Stafford Loans (need based)
Unsubsidized Stafford Loans (all are eligible)
PLUS Loans for parents and graduate students
Private student loans (from banks and credit unions)

It's important to note that Subsidized and Unsubsidized Stafford Loans and PLUS Loans are either Federal Loans or Direct Loans, depending on which program your school participates in. Check with your school to see which type of Stafford and PLUS programs they offer to their students.

A key principle to remember with your college student loans

One overarching principle to remember when it comes to school loans is the importance of first exhausting all your federal loan options before turning your attention to securing private student loans—that is, borrowing from a bank or credit union. Why? Because federal loans generally come with fixed, lower interest rates.

Learn more about our affordable Charter One TruFit Student Loan™

Check out our helpful information about our affordable Charter One TruFit Student Loan™ for students attending eligible institutions and apply today. If you still have questions, call a student loan specialist at 1-800-721-3969, and we'll help walk you through the process of applying for school loans.

Choosing the Right Loan

Understanding student loan interest rates and total loan costs

Most families will need to cover the gap between what they can afford to pay for college and the actual final cost by securing private loans. But how do you choose which loans are the best for your family?

Experts say more than $150 billion in financial aid is available each year for post-secondary students. Make sure you begin the student loan research process with the FAFSA and federal student loan options, as these will have the lowest interest rates available. Once federal options, grants and scholarships have been explored, private student loans can be used to cover the remaining education expenses.

Factors to consider for private student loans

There are several factors that parents should take into account when considering a student loan lender:

Competitive student loan interest rates - This is most likely at the top of the list for most people. Make sure to scrutinize and compare both the prevailing student loan interest rates and any associated fees.
Fixed or Variable? - You'll also need to assess whether fixed or variable college loan interest rates are better for your situation. Does the lender offer both options?
Annual percentage rate (APR) - What is the APR, or the amount you will pay in interest charges per year? APR affects how much total interest you will pay by the end of your loan's term.
Flexible repayment and deferment options - Does the loan give you the option of switching to an alternative repayment plan in the event that your financial situation changes? Will you have the flexibility to secure a loan deferment in certain situations?
Quality of customer service - Are the institution's online capabilities strong? Can you get your questions answered in a timely manner?
Loan resale - Will the lender eventually sell your loan to another institution, and if so, how will that change your service quality?

Looking for more college loan information? Browse our student loan FAQ.

Now that you know more about college loan interest rates, check out Charter One's offerings

Find additional student financing resources for students and parents and get helpful information about our TruFit Student Loan™. If you still have questions, call a student loan specialist at 1-800-721-3969, and we'll help walk you through the process.

Student Loan Lenders

Choosing a reliable bank for your student loan needs

With college costs growing at about twice the rate of inflation and many family savings pools affected by economic changes, private student loans are becoming more necessary than ever. Private student loans offer an opportunity to close the gap between what a family has on hand and what it costs to send their children to college. Be sure to maximize grants, scholarships and federal loans first before taking out a private loan.

How to find the right bank to lend you the money

Here are a few things to consider when evaluating student loan lenders:

Do you or your family already have accounts with a bank that offers student loans for the school of your choice? If not, consider a full-service institution that offers a variety of banking options, like checking accounts and student loans.
Do you or your family already have student loans through a particular lender? If the answer is yes, you might consider staying right where you are, as long as you are happy with the rates, service, and repayment options.
Does the lender offer competitive rates, different payment options and online account access?
Does the student loan lender have years of experience offering student loans? Do they appear on a preferred lender list or offer the ability to reach a live person for expert advice? Charter One has over 25 years of experience in the student loan industry.

When you've decided which school you'll be attending, ask your school's financial aid office for a list of its preferred lenders. Preferred lenders of student loans have originated loans for students of that school before, and may be more familiar with your school's process, personnel or policies. Remember, however, your school must process a loan from any lender, even if they are not on their preferred lender list.

Learn how you can get outstanding customer service from your student loan lender

Find helpful information about our affordable Charter One TruFit Student Loan™ and our convenient student banking options. Also, review our frequently asked questions about student loans and if you want to speak to someone, call a student loan specialist at 1-800-721-3969, and we'll help walk you through the process.

Using Home Equity for College

How to pay for higher education using your home's equity

With college tuition and room and board charges rising at about twice the rate of inflation, and with most families' savings pools negatively affected by the difficult economic climate, many families are forced to be more creative about coming up with the funds to pay for their children's post-secondary education.

For many, this means obtaining private student loans from banks to cover educational costs over and above those covered by federally guaranteed student loans.

But for many families, the best option for closing the financial gap might be tapping into the equity in their home, and using a home equity loan for college expenses. Home equity is the difference between the fair market value of your home and what you owe on it. In other words, it's the portion of the total value in your house that you already own.

Most financial institutions offer both student loan and home equity options. They have distinct differences, such as home equity loans require that you own a home and have accrued equity that can be borrowed against.

Advantages of paying for college with a home equity loan from Charter One:

Proceeds from a home equity line of credit are not considered 'income', so are not reported as an asset
The loan amount is limited only by the amount of equity in the applicant's home, their debt-to-income ratio and credit-worthiness
Home equity loans may qualify you for tax breaks, since in many cases the interest you pay is tax-deductible (check with your tax advisor first)

Apply for a home equity loan and get on the road to financing your child's college education.

Learn about other financing options for your child's education

If home equity loans for college are not right for your family, Charter One has another option—the TruFit Student Loan™—a private education loan. If you have questions about how a student loan can help with college financing, call a student loan specialist at 1-800-721-3969, and we'll help walk you through the process.

Student Loan Approval

What if I'm denied for a student loan?

The bad news is unavoidable: you've been denied on your application for a private student loan. Please don't panic or think this means you won't be able to attend college. There are still plenty of possible avenues to pursue. First and foremost, be sure you apply with a cosigner.

If you apply for a private student loan on your own, without a cosigner, and are denied, it's probably because you have insufficient personal credit history, as is typical for someone of your age. You'll simply have to find a qualified cosigner and re-apply. That cosigner could be a parent or other guardian, a grandparent, an older sibling or perhaps a favorite uncle or aunt. By cosigning your loan, they're agreeing to personally step in and help repay the loan in the event you cannot. At the same time, it doesn't remove your role as the primary borrower. You and the cosigner are equally responsible for repayment.

On the other hand, if you apply with a cosigner, and are denied a student loan, you can find another qualified cosigner and re-apply. The good news is that there are benefits to serving as a cosigner and some lenders do offer the option to be released as a cosigner after a certain period of on-time payments. For example, our TruFit Student Loan™ has a cosigner release option available after 36 consecutive on-time payments¹.

How to help prevent student loan denial by establishing good credit

Here are a few pointers on how you can establish good credit, so that in the future you'll possibly qualify on your own:

Start out small—Establishing good credit takes time. Start with one credit card.
Pay on time, every time—Never miss a monthly payment.
Don't pay down, pay off—Pay your credit card bills in full each month.

Learn more about flexible student financing options from Charter One

Review our other helpful student financial aid resources to make sure you're prepared for the start of college. If you want to learn more about our TruFit Student Loan™ or have questions about financing your college education, call a student loan specialist at 1-800-721-3969, and we'll help walk you through the process.

Have student loan questions? Call our Student Services team.

1-800-721-3969

Student banking questions?

1-888-850-4064

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