Borrowers seeking an educational loan through GBHEM must meet the following criteria:
- U.S. citizen and permanent resident borrowers must be active, full members of a United Methodist church for at least one year prior to application.
- Non-U.S. citizen borrowers must be a full member of a United Methodist church for at least three years prior to application.
- All borrowers must be at least 18 to complete the application process.
- U.S. citizen and permanent resident borrowers must be enrolled in an accredited school at least half-time in the United States.
- Non-U.S. citizen borrowers must be enrolled in a United Methodist related college, university or seminary at least half time in the United States.
- All borrowers must maintain at least a “C” average (2.0 GPA).
- All borrowers must have a cosigner for the loan who is a citizen of the United States or has legal permanent resident status. The cosigner will be contacted and required to complete a portion of the application. NOTE: Cosigner will be required to provide proof of income, and if the borrower is currently employed, proof of income will be required as well. Acceptable documents for proof of income are your last pay stub, W2 or tax return.
- All borrowers must have all loan funds certified by their educational institution before funds are released to the school. No exceptions.
Loan Term and Interest Rates
Students may borrow up to $10,000 per calendar year for a maximum total loan of $40,000, and the maximum repayment term for all loans is 120 monthly payments (10 years). Both borrower and cosigner must maintain a good credit history and give permission for their credit to be reviewed. Loans are granted on a first-come, first-served basis, until all funds are exhausted.
Simple interest (non-capitalized) is applied to the annual percentage rate from the choices below. This means interest is charged on the principal portion only and not compounded on top of existing interest. All payments are applied first to fees, any collection costs incurred, accrued interest and finally to principal.
Interest Rates & Repayment Terms
- Option A: 5% fixed interest loan with deferred payment option.
- Option B: 4% fixed interest loan with deferred payment option (only available for students attending United Methodist schools).
- Option C: 3.75% “Borrow Smart” fixed interest loan with payment beginning the next month after check disbursement.
An origination fee of 1.072% will be added to the total cost of all student loans. Interest will not accrue on the fee amount.
United Methodist Student Loan Disclosure Information
Amid the unprecedented COVID-19 situation, the GBHEM Spring 2020 Student Loan application will close to new applicants effective 3/23/2020. Any open applications will have until midnight April 1, 2020 to complete. Please contact GBHEM Loans and Scholarships at UMLoans@GBHEM.org or 615-340-7342 with any questions.
(For enrollment Jan. – May). Applications open Dec. 13 – May 5.
Click here for the Fall Application
(For enrollment June – Dec.). Applications open May 14 – Oct. 15.
*Please note that both applications require first time applicants to create a profile before you begin.