Union Federal Student Loans Overview
Information Composed by Jake McCall, Verified by Monogram LLC
Union Federal® Private Student Loans are available to student borrowers with and without a cosigner. Union Federal loans offer competitive rates and a variety of borrower benefits such as a 0.25% interest rate reduction when you elect auto pay (1) and an automatic 0.25% interest rate reduction for making on-time payments (2). Borrowers can choose from four different repayment options (defer payments, interest only payments, flat payments or immediate repayment (3)) and five different repayment terms (5-, 7-, 10-, 15- or 20-years (3)). Cosigner release is also available upon entering repayment of principal and interest (4).
Quick Overview
Company Details
Union Federal Private Student Loans are funded by DR Bank and are originated by Monogram LLC, a company whose team has been in the student loan space for decades and maintains an A rating overall according to the BBB (Better Business Bureau). Union Federal is unique in that it offers loans to international students with a US cosigner (5). The company also offers payment relief plans in case of job loss or other financial hardships (6), or a natural disaster (7) to help mitigate the risk for borrowers.
We may be paid compensation for the products offered below. This by no means influences what we say or how we portray those products. Pluto is meant to help, not hinder your education funding.
The Union Federal No-Essay Scholarship Sweepstakes (8)!
A $1,500 scholarship could be in your future. Union Federal is sponsoring a $1,500 scholarship every month until June 30, 2026. That's a total of 67 winners and $100,500 going towards students to help them cover the costs of books, tuition, housing, and more!
NO PAYMENT OR PURCHASE NECESSARY IN ORDER TO WIN
Takes about 5 minutes
Union Federal at a Glance
Loan repayment terms offered include 5-, 7-, 10-, 15- or 20-year terms (3) along with four different repayment options to choose from (3) for both undergraduate and graduate students.
No application fee, processing fee, or late fees. Plus, up to a 12-month grace period (10).
A 0.25% interest rate discount when you elect auto pay discount (1) plus an automatic 0.25% interest rate reduction for making on-time payments (2) along with a graduation reward upon request (13).
Available to international students with a U.S. cosigner (5).
Does not offer student loan refinancing or parent loans.
Students without a cosigner may apply for a Union Federal Loan. For students who apply with a cosigner, cosigner release is available upon entering repayment of principal and interest (4).
Union Federal Returning Borrower Advantage (12)
When you apply for subsequent loans with a cosigner, you may not have to provide income documentation again. This makes the application process easier and faster.
Repayment Options (3)
Immediate Repayment: Make full principal and interest payments while you study.
Start making principal and interest payments right away
Making higher monthly payments while you are still in school saves you the most money overall
Interest Only: Make only interest payments while in school.
Interest only payments reduce the long-term cost of your loan
This is a good option if you can't make full payments while in school but still want to make life easier after you graduate by making smaller monthly payments now
Flat Payment: Make $25 payments each month during school to reduce your accrued interest.
Steadily chip away at your loan's interest by making low, flat monthly payments while you study
This is a great option if you can't quite afford full interest payments just yet, but still want to start making a dent in the overall cost of your loan right away
Fully Deferred: Wait to make payments until after you graduate and are earning money.
Waiting until you graduate before you start making payments allows you to focus on your studies without worrying about loan payments
Keep in mind interest will continue to accrue on your loan during this time, making this the most expensive option over all
Undergrad Loans
Associates, Bachelors
Union Federal Undergraduate Loans
Union Federal offers well-rounded, customizable loans with four different available repayment options (3) and five different repayment terms (5- 7-, 10-, 15- or 20-years (3)). A 2% principal reduction can be requested after graduation (13). Although applying with a cosigner is recommended, it is not required. However, keep in mind that approval is more likely when applying with a parent or another adult with good financial standing. Plus, you may get a lower rate than you would if you applied solo. And cosigner release is available upon entering repayment of principal and interest (4). Union Federal also offers multiple payment relief options in case of job loss or other financial hardships (6), or a natural disaster (7).
Up to a 0.25% interest rate reduction for making on-time payments (2)
Four repayment options to choose from (3)
DACA recipients are eligible with a US cosigner (5)
0.25% interest rate discount when you elect auto pay (1)
5-, 7-, 10-, 15- or 20-year repayment terms to choose from (3)
Request a 2% principal reduction after graduation (13)
Payment relief in case of job loss or other hardships (6), or a natural disaster (7).
Apply for cosigner release upon entering repayment of principal and interest (4)
Borrow as little as $1,000 up to $225,000, the aggregate student loan debt limit (11)
No late fees, application fees or processing fees
Key Undergraduate Features
Graduate Loans
Business, Medical, Dental, Law, Health, and More
Union Federal Graduate Loans
Union Federal offers graduate certificate loans and graduate loans for nearly all degree types, with comparable interest rates and a well-rounded array of borrower benefits. Customization is key, with four repayment options (3) and five repayment terms (5-, 7-, 10-, 15- or 20-years) to choose from (3). You can receive an automatic 0.25% interest rate reduction for making on-time payments (2) and an additional 0.25% interest rate reduction when you elect auto pay (1) along with requesting a 2% graduation reward (13).
Up to a 0.25% interest rate reduction for making on-time payments (2)
Request a 2% principal reduction after graduation (13).
DACA recipients are eligible with a US cosigner (5)
Borrow as little as $1,000 up to $225,000, the aggregate student loan debt limit (11).
Payment relief in case of job loss or other hardships (6), or a natural disaster (7).
5-, 7-, 10-, 15- or 20-year repayment terms to choose from (3)
Four repayment options to choose from (3)
No late fees, application fees or processing fees
Apply for cosigner release upon entering repayment of principal and interest (4)
0.25% interest rate reduction when you elect auto pay (1)
Key Graduate Features
Did You Know...
That student loan rates can change rapidly every month? Don't miss the updates. We'll keep you posted on changing rates and more!
Disclosures:
Before applying for a private student loan, DR Bank and Monogram LLC recommend exhausting all financial aid alternatives including grants, scholarships, and federal student loans.
The Union Federal® Private Student Loan is made by DR Bank, member FDIC (“Lender”). All loans are subject to individual approval and adherence to Lender’s underwriting guidelines. Program restrictions and other terms and conditions apply. LENDER AND MONOGRAM LLC EACH RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. TERMS, CONDITIONS AND RATES ARE SUBJECT TO CHANGE AT ANY TIME WITHOUT NOTICE.
(1) Earn a 0.25% interest rate reduction for making automatic payments from a bank account (“auto pay discount”) by completing the direct debit form accessible on the Servicer’s website. The auto pay discount is in addition to other discounts. The auto pay discount will be applied after the Servicer validates your bank account information. Automatic payments and the associated discount will be temporarily discontinued (1) if you elect to stop automatic deduction of payments and (2) during periods when you are not required to make payments. The discount will be permanently discontinued in the event three automatic deductions are returned by the financial institution for any reason.
(2) The 0.05% interest rate reduction will automatically be applied for every 6 consecutive on-time monthly payments of principal and interest made during the repayment term up to a maximum interest rate discount of 0.25%. During any period of deferment or forbearance, or upon use of an approved reduced repayment plan, the interest rate will increase by any previously received On-time Payment Benefit reduction(s). The interest rate will return to the reduced interest rate following such period. Use of a deferment or forbearance will reset the number of consecutive monthly payments of principal and interest made to zero. A late payment will disqualify the loan from receiving any additional interest rate reductions for on-time payments.
(3) The four repayment options include Flat Payment Repayment (paying $25 per month during in-school deferment), Full Deferment, Interest only Repayment and Immediate Repayment. The 15- and 20-year term and Flat Payment Repayment option are only available for loan amounts of $5,000 or more. Making interest only or flat interest payments during deferment will not reduce the principal balance of the loan. Payment examples (all assume a 14-month deferment period, a six-month grace period before entering repayment, no auto pay discount, and the Interest Only Repayment option): 5-year term: $10,000 loan, one disbursement, with a 5-year repayment term (60 months) and a 9.30% APR would result in a monthly principal and interest payment of $209.04. 7-year term: $10,000 loan, one disbursement, with a 7-year repayment term (84 months) and a 6.50% APR would result in a monthly principal and interest payment of $148.49. 10-year term: $10,000 loan, one disbursement, with a 10-year repayment term (120 months) and a 66.35% APR would result in a monthly principal and interest payment of $112.79. 15-year term: $10,000 loan, one disbursement, with, a 15-year repayment term (180 months) and a 6.30% APR would result in a monthly principal and interest payment of $86.02. 20-year term: $10,000 loan, one disbursement, with, a 20-year repayment term (240 months) and an 8.38% APR would result in a monthly principal and interest payment of $86.02.
(4) A cosigner may be released from the loan upon request to the Servicer, provided that the student borrower has met certain credit and other criteria, and 12 consecutive monthly principal and interest payments or lump sum payments equal to 12 monthly principal and interest payments have been received by the Servicer during any 12-month period. While a loan is in a reduced repayment plan or while a request for a reduced payment plan is pending, borrowers are not eligible to apply for cosigner release.
(5) The student must be the legal age of majority at the time of application, or at least 17 years of age if applying with a cosigner who meets the age of majority requirements in the cosigner's state of residence. The legal age of majority is 18 years of age in every state except Nebraska (19 years old, only for wards of the state), and Puerto Rico (21 years old). Private student loans funded by DR Bank are available to applicants who are U.S. citizens, permanent resident aliens, or Eligible Non-Citizens (DACA recipients). Eligible Non-Citizens (DACA recipients) must apply with an eligible cosigner who is a U.S. citizen or permanent resident alien. International students can apply for the Union Federal Private Student Loan with an eligible cosigner who is a U.S. citizen or permanent resident alien. Students enrolled less than half-time are not eligible to apply.
(6) Available in increments of no more than three (3) months, for a maximum period of twelve (12) months. During a forbearance period, principal and interest payments are deferred and the interest that accrues during the forbearance period may be capitalized at the expiration of such period in accordance with the Credit Agreement The repayment term will be extended by the total number of months of unemployment protection applied to the loan.
(7) Natural Disaster Forbearance is available to assist borrowers who are unable to pay their loan due to a natural disaster, determined by the Federal Emergency Management Agency ("FEMA"), impacting their home, place of employment or the school they are attending. Natural Disaster Forbearance lasts for a maximum period of three (3) months, during which payments are deferred. Any accrued and unpaid interest may be capitalized at the end of the Natural Disaster Forbearance period in accordance with the Credit Agreement.
(8) NO PURCHASE OR PAYMENT NECESSARY TO ENTER OR WIN. Open to legal residents of the 50 U.S./D.C. (excluding WV), age 18+, who are currently a student or parent of a student enrolled in an undergraduate program at an Eligible Institution. An “Eligible Institution” must be: (i) based in the United States; (ii) Title IV eligible according to data from the U.S. Department of Education; and (iii) categorized as a public or private school that offers bachelor’s degree program or higher according to the U.S. Department of Education, excluding for-profit schools (proprietary schools). Void outside the 50 U.S./D.C. and where prohibited. Sweepstakes starts at 12:00:01 AM ET on 05/28/2025; ends at 11:59:59 PM ET on 6/30/2026. Total ARV of prize per Entry Period: $1,500; Total ARV of all prizes: $100,500. Odds of winning will depend on the total number of entries received for each Entry Period. For full Official Rules, visit https://sweeps.smartborrowing.org/paying-for-college-sweepstakes-official-rules/. Sponsor: Monogram LLC, 200 Clarendon Street, 20th Floor, Boston, MA 02116.
(9) Interest rates and APRs (Annual Percentage Rates) depend upon (1) the student’s and cosigner’s (if applicable) credit histories, (2) the repayment option and repayment term selected, (3) the expected number of years in deferment, (4) the requested loan amount and (5) other information provided on the online loan application Rates and terms are effective as of 2/1/26.The variable interest rate for each calendar month is calculated by adding the 30-Day Average Secured Overnight Financing Rate (“SOFR”) index plus a fixed margin assigned to each loan. The current SOFR index, published on the website of the Federal Reserve Bank of New York, is 3.65% as of 2/1/26. The applicable index or margin for variable rate loans may change over time and result in a different APR than shown. The fixed rate assigned to a loan will never change except as required by law or if you request and qualify for an interest rate discount or receive In-School Default Protection (see footnote #14 for details). APRs assume a $10,000 loan with one disbursement. The high APRs assume a 5-year term with the Interest-Only Repayment option, a 31-month deferment period, and a six-month grace period before entering repayment. The low APRs assume a 7-year term, and the Interest-Only option with payments beginning 30-60 days after the disbursement via auto pay. See footnote 1 for auto pay details.
(10) The grace period is six months. The grace period begins on the earlier of the date (a) the student borrower graduates, (b) the student borrower ceases to be enrolled, or (c) that is 60 months from the first disbursement date, but in no case, earlier than six months after the first disbursement date. The immediate repayment option does not have a grace period. The extended grace period is six months from either (a) the day following the initial grace period, (b) the first day of delinquency during the repayment term, or (c) the due date of the current level bill. To be eligible for the extended grace period, the loan cannot have entered the repayment term more than ninety (90) days prior to the date the Servicer receives the request for payment relief. The immediate repayment option does not have an extended grace period. The repayment term will be extended by the number of months of extended grace applied to the loan.
(11) The minimum loan amount is $1,000 except for student applicants who are permanent residents of Iowa in which case the minimum loan amount is $1,001, and student applicants or cosigners who are permanent residents of Massachusetts in which case the minimum loan amount is $6,001. The maximum annual loan amount to cover in-school expenses for each academic year is determined by the school’s cost of attendance, minus other financial aid, as certified by the school The loan amount cannot cause an individual applicant’s aggregate maximum student loan debt (which includes federal and private student loans) to exceed $225,000.
(12) A Returning Borrower is a student applicant or a cosigner with either (a) a prior application that is awaiting school certification, or (b) a prior loan that has a disbursement scheduled or completed. Income verification will be waived for Returning Borrowers who report the same employer, employment status, singular income source and an annual income amount within 25% of the annual income amount previously verified from such income source on a prior application or loan with an income verified date within eighteen (18) months of the hard pull decision date of the new application. If more than one prior application or loan with an income verified date within eighteen (18) months of the hard pull decision date for the creditworthy applicant exists, the most recent qualifying application or loan will be used to verify income.
(13) The principal reduction is based on the total dollar amount of all disbursements made, excluding any amounts that are reduced, canceled, or returned. To receive this principal reduction, it must be requested from the Servicer, the student borrower must have earned a bachelor’s degree or higher and proof of such graduation must be provided to the Servicer. This reward is available once during the life of the loan, regardless of whether the student receives more than one degree.
(14) Interest Only or Flat Payment Repayment loans that reach at least 90 days delinquent during an in-school deferment period will automatically transition to the Full Deferment Repayment option. Under these circumstances, the interest rate on an original Interest Only loan will increase by one percentage point (1.00%) and the interest rate on an original Flat Payment Repayment loan will increase by one quarter of one percentage point (0.25%). Credit reporting prior to the transition of a loan to the Full Deferment Repayment option will remain on your record. Any unpaid accrued interest at the end of an in-school deferment period may be capitalized in accordance with the Credit Agreement.