Student Loan - Loans and Debt Consolidation

THIRD LEVEL LOANS MUCH CHEAPER AT CREDIT UNIONS THAN BANKS IRISH INDEPENDENT

Third-level loans much cheaper at credit unions than banks

By Charlie Weston Personal Finance Editor

Tuesday September 14 2010

CREDIT unions have emerged as being significantly cheaper for education loans than banks and building societies.

An Irish Independent survey of credit unions across Ireland has found that the average interest rate for a credit union education loan is less than 6pc.

This compares with student loan rates averaging 9.6pc from the leading banks.

Thousands of students are either returning to college or going to college for the first time. Many of these are taking out loans to fund their third-level studies.

The credit unions were asked to quote the interest rate they charge for a loan of 3,000 over three years.

Some 30 credit unions were surveyed in conjunction with the Irish League of Credit Unions.

The highest rate charged for a student/education loan was by Letterkenny Credit Union in Donegal with a rate of 7.95pc. At the other end of the scale, Rathmore and District Credit Union, in Co Kerry, charges just 4pc.

The average charged by the 30 credit unions came in at 5.95pc. These rates were before an interest rebate was applied -- something that could bring the interest rate down further.

Information provided by the National Consumer Agency, a state body that has taken over the consumer information function of the Financial Regulator, shows that bank lending rates for student loans are ...[more]