Student Loans FAQ

We offer student loans to pay for tuition, books, rent, or other post-secondary education expenses. Whether you choose in-person learning or online learning, you can apply for a student loan.

What are the qualifications for student loans?

• Students enrolled in post-secondary education are eligible to apply for new loans.
• Each student may borrow up to $5,000 per school year (July 1 to June 30) with a maximum of $25,000* per student.
• Borrowers must submit proof of full-time enrollment status with a minimum of 12 credits per semester in a post-secondary school. 
• The parent, stepparent, or legal guardian must co-sign with the student at the time of application. 

*Some exceptions may apply.

How do I apply for a Student Loan?

Student Loan applications can be completed at any time of the year. The co-signer and the student need to complete the online loan application for a student loan.  

Apply for a Loan  

What will my loan payments be? 

While enrolled as a full-time student, the payment will be a minimum of 1% of the outstanding loan balance or $25.00 per month, whichever is greater. The loan payments are converted to full repayment status after graduation or when no longer enrolled as a full-time student. The monthly payment will increase to the amount necessary to pay the unpaid balance and interest over 120 months. There is no penalty for paying off the loan early if you make more than the minimum payment amount due.

Student Loan payments have a variable interest rate based on the Prime Rate, so payments may change over time. Borrowers should review the payment amount each month on their statements or in online banking. Please contact the FECU Loan Department at 507-455-5430 or email fedecu@fedins.com if you have questions or need assistance determining your loan payment amount.

How can I make my payments?

Loan payments can be made automatically using online banking, mailing a check to FECU, or setting up recurring payment options with the loan officer when the loan is finalized. 

Why does FECU need a class schedule?

Members are required to verify their student status by providing a class schedule showing full-time enrollment status by August 31 each year. Current students can email a class schedule to fedecu@fedins.com or mail it to 1929 South Cedar Avenue, Owatonna, MN 55060. 

Submit a class schedule showing the following:

• Full name (student ID # is not required)
• Minimum of 12 credits per semester
• School name
• Semester start date

Attention: If the FECU does not receive the required documentation, the payments will no longer be 1% of the balance. The monthly payment will increase to the amount necessary to pay the unpaid balance and interest over 120 months. 

How can I transfer money to my school?

After completing the application and approval process, funds can be deposited into your personal checking or savings account, or FECU can send funds directly to your school. 

What will my college education cost? 

FECU has Personal Financing Calculators and online tools to help you make the best financial decisions.
How much do I need to save for college? Calculate how much money you need monthly to reach a desired savings goal.
How much can I afford to borrow? Use this calculator to determine how much money you can borrow.

Note: This is not a government-guaranteed loan. The index is Prime Rate, as published in the Wall Street Journal. The rate will be .5% below the prime rate as of July 1 each year. When you are a full-time student, the actual monthly payment will be 1% of the outstanding loan balances calculated at the close of each month. If the borrower cannot provide verification of full-time student status at the time of application or when requested in July, the borrower will be considered in full repayment status. During the repayment period, the monthly payment will be the amount necessary to pay the unpaid balance and interest over 120 months. The FECU defines Full-time Traditional Students as at least 12 credits per semester/quarter, but some exceptions may apply.