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October 13, 2009

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Doug S.

Any idea what the approval rate is on these loans? Low rates are great but the question is how many applicants actually get approved for those rates.

Given that Libor is currently at 0.25% it looks like the San Antonio Federal Credit Union rates are a little misleading. Given the 6% floor rate it appears that students are going to pay at least 5.75% over the libor rate (higher than their stated range of Libor+1% to Libor +4%). In fact a Libor+1% borrower would need Libor to go up to 5% before they would not be limited by the floor, Libor has not been at that level since 2007.

Scott P.

The standard CU Student Choice program goes down to 620 fico on the student (660+ for co-borrower) so you can compare that to other programs and determine which approval rate will be higher.

As stated, the floor for SACU is at 6%. Meaning, for example, a LIBOR + 5% will automatically start at 6%. In this example, it will remain at 6% until libor is greater than 1.0%. Given interest rate forecasts, what happens when LIBOR "normalizes" to somewhere between 2% and 4%?

Given the above data presented, your interest rate outlook, and the expected life for these loans...which loan would you rather have? Pretty clear to me.

Scott @ CU Student Choice

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Two credit unions are providing free access to home banking via mobile consumer devices, the latest ploy for retaining their online customers.

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