U.S. Bank was founded in 1968. The company maintains its headquarters in Minneapolis, Minnesota. The parent company is called U.S. Bancorp and through this company, there are more than 3,100 banking locations across the United States. U.S. Bank provides a wide variety of banking services, from basic banking to more advanced options. Customers include the federal government, individual borrowers, businesses, and others. This bank affords customers the convenience of online banking, access to checking and savings accounts, the ability to apply for mortgages, and the option to apply for lines of credit and loans.
Does U.S. Bank Still Offer Student Loans?
No, U.S. Bank no longer offers student loans. Approximately five years ago, when the federal government announced that it would no longer guarantee private student loans, U.S. Bank decided to opt out of continuing to offer student loans. Some students may still have student loans serviced with U.S. Bank, which they borrowed prior to 2012.
When U.S. Bank did offer loans, there were two primary types of loans that they offered. One was a Fixed-Rate U.S. Bank loan for students and the second was the No-Fee U.S. Bank loan for students. The main difference was the no-fee loan had a variable interest rate while the other one had a fixed interest rate. U.S. Bank was able to offer very competitive interest rates to student borrowers. In addition, students received extra perks, such as a .50% interest rate reduction if they signed up for automatic pay.
Both of these loans were available to any student who needed at least $1,000 for educational expenses. Students could borrow up to the complete cost of their program, after deducting any other financial aid they received. Students could also defer payments until they graduated and there were different types of repayment plans, so students could choose how they wanted to repay their student loans.
What Are My Options to Take Out a New Student Loan?
Since U.S. Bank no longer offers federal or private student loans, you will need to look into alternative resources. What are some good options for obtaining a new student loan? Luckily, there are several options available to you!
First, you may want to consider filling out the FAFSA application. Given that U.S. Bank no longer offers federal or private student loans, the FAFSA will quickly and easily tell you whether you will qualify for any federal funding. It is ideal to optimize your federal student loans before beginning to explore the option of private student loans, since private loans have much higher interest rates and do not offer as many guarantees. On top of this, they are much easier to qualify for compared to their private counterparts.
If you do not qualify for a federal student loan, you still have the option of obtaining a private student loan through another company. Before taking this route, you will definitely want to compare a variety of lenders. Interest rates can vary quite widely for private student loans and they often depend of the credit history of the borrower. As such, you may want to consider adding a cosigner to your private loan in order to attempt to qualify for a lower interest rate.
Does U.S. Bank Offer Any Resources Related to Student Loans?
Yes, U.S. Bank does continue to offer advice and information related to student loan borrowing. For example, on their website, they offer a section entitled “Money Tips for Students.” This website contains information about alternatives to taking out student loans and how to estimate your future salary and loan payments. They also suggest ways students can pay for college, how to build credit, and how to manage your money while you are a student. The website can be found here.
U.S. Bank did not stop at just providing advice for students. They offer a second section on their website that is geared towards parents of college students. This website enables parents to explore highly relevant topics for financing a college education, such as ways to pay for college, what to consider before cosigning a loan, how to help your college student manage their money, and which banks provide the best services to students who are attending college. The website can be found here.
How else can U.S. Bank Help Students Reach Their Financial Goals?
Despite not offering student loans, U.S. Bank does continue to offer additional banking tools that are geared towards students. They offer online and mobile banking so that students can access their money from anywhere, at no additional cost. Credit cards and free checking accounts are also available to student members. Additional information about these financial offers can be found at this link.
How Else Can I Fund My College Education?
Aside from applying for federal and private loans, you may also want to consider applying for a variety of scholarships and grants. These will help you minimize the amount of loans you will need to take out in the first place. For example, the FAFSA will tell you whether you qualify for any particular state or federal grants to help alleviate the cost of college.
A good place to look after completing the FAFSA is at the college or university that you plan to attend. Typically, each institution is able to offer some institution-specific funding for incoming and continuing students. If you do not have success with the admissions office or financial aid office, think about asking someone in your department or major whether there are any special scholarships for students in your area of studies. There is an abundance of private scholarships that you can apply for as well. One of the easiest ways to find these awards is to create a free profile on a scholarship search engine (i.e., Fastweb!) and let the search engine do all the hard work matching you to scholarships that you are eligible to apply for.