Financial Literacy Archives - SRI Federal Credit Union

PLUS Loans: Understanding Eligibility & Applying

As tuition costs increase, college is becoming more expensive. Fortunately, there are many financing options available to students and their families. Direct PLUS loans (commonly called simply “PLUS loans”) are one example—these federal student loans can cover the full cost of college attendance, minus any financial aid you have received.

But is taking out a PLUS loan the right option for you and your family? Keep reading to find out everything you need to know about getting a PLUS loan.

What is a PLUS Loan?

A Direct PLUS loan is a federal student loan that’s provided through the U.S. Department of Education. PLUS loans can be taken out by parents of undergraduate students (or by eligible graduate students) to help finance their education. You can read more about PLUS loans in the Department of Education’s guide, but we’ll hit the highlights below.

What Are the Benefits of a PLUS Loan?

Compared to other types of student loans, PLUS loans stand out for their:

Generous loan limits – PLUS loans allow parents to borrow up to the full cost of their child’s college attendance, minus any other financial aid they receive. These loans can go toward tuition, room and board, fees, books, and other education-related expenses.
- Important note: Under the One Big Beautiful Bill Act, Grad PLUS loans for new borrowers will be eliminated starting July 1, 2026, and Parent PLUS loans will have new caps of $20,000 per year ($65,000 total per student).
Fixed interest rates – PLUS loan interest rates are fixed, which means they stay the same throughout the entire repayment period. In turn, you won’t need to worry about your interest rate going up in the future. However, the rate may be higher than other types of loans (read more about this below).
Flexible repayment options – Like other types of federal student loans, PLUS loans come with several repayment options. Some offer lower monthly payments, while others can help you save money on interest. You can also consolidate your PLUS loan and take advantage of an income-driven payment plan.
Potential for loan forgiveness – If you consolidate your PLUS loan into a Direct Consolidation Loan, you may be able to have your remaining loan balance forgiven after participating in an Income Driven Repayment (IDR) or Public Service Loan Forgiveness (PSLF) program.

PLUS Rates and Fees

You can find PLUS loans’ current interest rates on the Department of Federal Student Aid’s website. As of April 2026, the interest rate is 8.94%, and you’ll also incur loan fees of 4.228% that will be deducted from your PLUS loan disbursements unless you choose to roll it into your outstanding loan balance.

Since PLUS loans’ interest fees are not subsidized, you’ll start accruing interest on them as soon as the money is disbursed. While you can defer your loan payments until six months after your child graduates, you’ll still accrue interest during that time.

What Are Some Alternatives to PLUS Loans?

While PLUS loans have some special advantages, they may not be the most affordable way to pay for your child’s education. You can use a combination of these financing options to pay for college:

Scholarships and grants – These should be your first choice for paying for college, as they generally do not have to be repaid if conditions are met.
Direct federal student loans – In addition to PLUS loans, the federal government offers two types of direct student loans:
- Subsidized – Subsidized student loans are given out based on financial need. The federal government covers their interest payments until the deferment period is over, which is typically six months after the student has graduated.
- Unsubsidized – Unsubsidized student loans are not based on financial need. Instead, they’re calculated using the cost of your child’s tuition and financial aid. These loans start accruing interest as soon as they’re dispersed. Your child can make interest payments throughout college or roll them into their total loan balance.
- Both types of direct federal loans are taken out in the student’s name, rather than their parents.
Private student loans – Private student loans can be taken out by students or their parents. These loans require a credit check. Since students are less likely to have high credit scores, many need their parents to co-sign to get approved. Loan amounts and interest rates for private student loans can vary from lender to lender, but given the current interest rate environment, interest rates may be lower than PLUS loan rates. Credit unions often offer the most competitive rates, and we can help match you with a credit union to join if you aren’t already a member of one.

Who is Eligible for a PLUS Loan?

Before you apply for a PLUS loan, you’ll want to make sure you meet the PLUS loan eligibility requirements. To qualify for a PLUS loan, you must:

Be the biological or adoptive parent of the student
Ensure that your student is enrolled at least half-time at an eligible school
Fill out the Free Application for Federal Student Aid (FAFSA) along with your child
Meet the general eligibility requirements for federal student aid
Not be in default on any other federal student loans
Not have an adverse credit history

While your credit is taken into consideration, you may still be able to get a PLUS loan with poor credit. Applying with an endorser can drastically improve your chances of qualification, as an endorser is someone with better credit who agrees to take over your payments if you can’t make them yourself.

If extenuating circumstances contributed to your low credit score, you can explain them to the Department of Education, too. Depending on the circumstances, they may be willing to overlook lower scores.

How Do You Apply for a PLUS Loan?

First, the student must have completed the Free Application for Federal Student Aid (FAFSA). To apply for a PLUS loan, you must follow the application process of your student’s school’s financial aid office. You’ll also have to fill out a loan application on Studentaid.gov. This application will ask you to provide:

Your verified FSA ID
The name of your child’s school
Your child’s name, address, Social Security number, and birth date
Your personal information
Your employer’s information

Once you submit your application, you’ll be notified of the maximum amount you can borrow. After selecting your preferred loan amount, simply sign a Master Promissory Note (MPN) at Studentaid.gov to finalize the process.

Once you’re approved for your PLUS loan, your money will be sent to your school’s financial aid office, where it will be automatically applied to your student’s tuition, room, and board. Any remaining balance will be refunded to you within 14 days.

Learn More About Your Options for College Financing

PLUS loans can help many families afford college tuition if other sources don’t cover the costs in full. Now that you know how PLUS loans work, you can decide if they’re the right college financing option for your family.

Have more questions about financial aid? Our College Counselor can answer also personally answer your financing questions. We can also help you find affordable private student loans from a credit union near you.

Need Additional Funds?

If you’ve already applied for a PLUS loan and still need help covering costs, SRIFCU offers additional student lending options through our trusted partner.

👉 Explore your options here:
🔗 https://srifcu.studentchoice.org/

You will find:

Competitive rates
Flexible repayment options
A solution that better fits your financial goals

Apply for the 2026 SRIFCU Memorial Scholarship

At SRI Federal Credit Union, we believe in investing in our members, not just financially, but in their futures. That’s why we are proud to announce that we are now accepting applications for our 2026 SRIFCU Official Memorial Scholarship.

Each year, this scholarship program honors the legacy of past credit union volunteer officials whose dedication helped shape the strong, member-focused institution we are today. Through this program, we aim to support the next generation of students as they take the next step in their educational journey.

Scholarship Details

SRI Federal Credit Union will award up to four (4) scholarships, each valued at $1,500, to eligible students pursuing higher education.

These scholarships are awarded in honor of past volunteer officials, including:

Joann Hodges-Velayo
Reuben Kachadoorian
Henry Moore
Harry Page
Dan Pinkerton
Herbert Teller
Pete Valenti
Loren Young

Their commitment to service and community continues to inspire us, and this scholarship is one way we carry that legacy forward.

Who Is Eligible to Apply?

Applicants must meet the following criteria:

Be a high school senior planning to attend a college or trade school, or
Be a community college student transferring to a four-year university
The applicant, or their parent/guardian, must be an active SRIFCU member in good standing

Important Dates

Applications are now being accepted
Deadline to apply: Sunday, May 24, 2026

We encourage all eligible students to apply early and ensure all required documentation is submitted before the deadline.

How to Apply

Students can complete and submit their application HERE. Be sure to review all eligibility requirements and include any necessary supporting materials to ensure your application is considered.

Why Apply?

The SRIFCU Memorial Scholarship is more than just financial assistance, it’s an opportunity to be recognized by your credit union for your hard work, goals, and commitment to your future.

Whether you’re planning to attend a university, pursue a trade, or continue your education at a higher level, this scholarship can help ease the financial burden and allow you to focus on what matters most: your success.

Investing in Our Members’ Future

At SRI Federal Credit Union, our mission has always been rooted in supporting our members at every stage of life. From your first savings account to major life milestones like education and homeownership, we’re here to help you succeed.

We are honored to support students in our community and look forward to reviewing this year’s applications.

A Quick Reminder: Stay Safe from Scholarship Scams

As scholarship opportunities become more visible this time of year, so do scams. Keep these tips in mind:

Never pay a fee to apply for a legitimate scholarship
Be cautious of unsolicited offers that sound too good to be true
Always verify that you are applying through official channels

If you ever have questions, feel free to contact us directly, we’re here to help.

Apply Today

Don’t miss your chance to be considered for the 2026 SRIFCU Memorial Scholarship.

Apply Now

We wish all applicants the very best of luck and look forward to supporting your educational journey.

Posted in Financial Literacy, Fraud, Hello World, Uncategorized

Got a Tax Refund? Here Are 5 Smart Ways to Use It

Tax season is here, and for many people, that means one thing… a refund.

While it might be tempting to spend it right away, your tax refund is a great opportunity to strengthen your financial future. With a simple plan, you can turn that refund into something that continues working for you long after tax season ends.

Here are five smart ways to make the most of your tax refund this spring.

1. Build or Boost Your Emergency Savings

If you don’t already have an emergency fund, this is one of the best places to start.

Unexpected expenses can happen at any time, and having a financial cushion can make all the difference. Even setting aside part of your refund can give you peace of mind.

💡 Make it work harder for you:
SRI Federal Credit Union’s Core Savings account currently earns 3.50% APY on the first $5,000, giving you a strong return while keeping your money safe and accessible.

Tip: Use your refund to fully fund that first $5,000 tier and maximize your earnings right away.

2. Pay Down High-Interest Debt

If you’re carrying balances on credit cards, your tax refund can be one of the fastest ways to reduce what you owe and save on interest.

💡 Smart move:
Transfer higher-rate balances to an SRI Federal Credit Union Visa Credit Card and take advantage of 0% APR for 15 months on balance transfers*.

This gives you breathing room to pay down your balance faster without interest working against you.

*Request must go through Balance transfer Application linked HERE.

3. Lock In Your Earnings with a Certificate

If you don’t need immediate access to your refund, putting it into a certificate can be a great way to earn more.

💡 Current opportunity:
SRI Federal Credit Union is offering a 9-month Certificate at 4.00% APY on new money. (Special good till the end of April 2026)

It’s a simple, predictable way to grow your savings over a short period of time.

4. Invest in a Goal That Matters to You

Your refund can also help you move forward on something meaningful.

Think about what’s ahead this year:

A summer trip
Home improvements
A vehicle purchase or refinance
A personal goal you’ve been putting off

Using your refund intentionally can help you move forward without relying on additional debt.

5. Do a Little of Everything

You don’t have to choose just one path.

One of the smartest strategies is to split your refund:

Save a portion
Pay down debt
Set aside something for yourself

This approach helps you build financial strength while still enjoying the moment.

Make Your Refund Work for You

Your tax refund is more than just extra cash. It’s an opportunity to reduce stress, build stability, and take a meaningful step forward financially.

At SRI Federal Credit Union, we’re here to help you make the most of it with better rates, practical tools, and personalized support.

✔️ Quick Next Steps:

Deposit your refund directly into your SRIFCU account
Fund your Core Savings (3.50% APY on the first $5,000)
Take advantage of the 4.00% APY 9-month Certificate (new money)
Transfer balances to a 0% APR Visa Credit Card (15 months)
Set up automatic transfers to keep building momentum

Posted in Accounts, Financial Literacy, Hello World, Loans

Honoring Dr. Martin Luther King Jr.: Economic Justice, Financial Empowerment, and the Credit Union Mission

As we honor the legacy of Martin Luther King Jr. this year, we’re reminded that his vision for equality went far beyond civil rights alone. Dr. King believed true justice required economic opportunity, dignity in work, and fair access to resources, values that continue to guide the credit union movement and the work we do every day at SRI Federal Credit Union.

Dr. King’s Enduring Vision for Economic Justice

In the final years of his life, Dr. King spoke openly about the deep connection between civil rights and economic security. Through initiatives like the Poor People’s Campaign, he called attention to systemic inequality in wages, housing, and access to financial opportunity. His message was clear: lasting equality is impossible without economic empowerment.

That belief closely mirrors the foundation of credit unions. Built on the principle of people helping people, credit unions exist to serve, not to profit, and to ensure members have fair, affordable access to financial services that support long-term stability.

Carrying the Legacy Forward and What’s New This Year

Over the past year, SRI Federal Credit Union has continued to translate these values into action in meaningful ways:

Stronger Member Protections: We implemented California’s new Trusted Contact Authorization protections ahead of the statewide requirement, adding safeguards for members age 65 and older and reinforcing our commitment to protecting vulnerable populations.
Expanded Digital Access: With the launch of our enhanced online and mobile banking platform, members now have easier, more secure access to tools that help them manage their finances anytime, anywhere.
Fraud Awareness & Education: As digital payments continue to grow, we’ve increased education around P2P and account-to-account fraud, empowering members with knowledge to protect their financial well-being.
Support During Uncertainty: During periods of economic and governmental disruption, including recent federal shutdown concerns, we stepped up with timely communication and assistance programs designed to support members when they need it most.
Ongoing Community Outreach: From financial education to community engagement, we continue building relationships rooted in trust, service, and shared success.

Each of these efforts reflects Dr. King’s belief that systems should uplift people, not create barriers.

Empowering Members Through Action

Honoring Dr. King’s legacy isn’t just about reflection; it’s about progress. Financial empowerment often starts with small but meaningful steps: building an emergency fund, reducing debt, improving credit, or planning for the future. When individuals gain stability, families grow stronger, and communities thrive.

At SRI Federal Credit Union, we’re committed to being a partner in that journey, offering guidance, fair products, and personalized service designed around our members’ real lives.

Moving Forward Together

Dr. King once said, “An individual has not started living until he can rise above the narrow confines of his individualistic concerns to the broader concerns of all humanity.”

Posted in Financial Literacy, Hello World

Government Assistance Loan Program Blog Post

How SRI Federal Credit Union Supported Members During the Government Shutdown

At SRI Federal Credit Union, our mission has always been clear: stand by our members, especially when uncertainty strikes. When the possibility of a government shutdown first emerged, we knew many federal employees could face sudden financial strain. To ensure our members wouldn’t face that challenge alone, we acted early, designing and launching our Government Shutdown Assistance Loan Program before the shutdown even began.

This proactive effort allowed us to respond immediately, giving members timely support when they needed it most.

A Program Built Before the Crisis Hit

Understanding the potential hardships ahead, SRIFCU created the Government Shutdown Assistance Loan to provide short-term relief and help members bridge the financial gap during missed pay cycles. The loan offered:

Loan limits based on net pay, up to $10,000
An 18-month term
A competitive rate of just 4.99% APR*
ZERO interest for members who pay off their loan within 60 days of their return-to-work date
Eligibility for government employees who are current SRIFCU members

This structure ensured flexibility, affordability, and fast access to funds, without creating long-term financial burden.

Measurable Impact During the Shutdown

The success of the program exceeded expectations, reflecting both the strong need and the trust our members place in their credit union. During the shutdown period:

$436,595 in total loan balances were funded
Many loans have already been fully repaid, highlighting responsible borrowing and the effectiveness of the loan design

Members repeatedly shared that the loan “saved them”, providing essential relief when paychecks were paused, and expenses continued. From covering rent and groceries to maintaining daily stability, this program helped make a difficult time manageable.

Our lending team’s quick response, compassionate approach, and efficient processing were praised consistently. Members expressed deep appreciation for the speed at which they were supported and the reassurance of knowing their credit union had prepared for them in advance.

Expanding Support Through Community Engagement

Beyond direct financial assistance, SRIFCU also strengthened relationships with the federal employee community. As part of our ongoing outreach initiatives, Paco presented at an AFEU (Ames Federal Employees Union) meeting, highlighting:

The benefits of credit union membership
SRIFCU products and services designed specifically for members to save money
The Government Shutdown Assistance Loan Program and its successful impact

The presentation received exceptional feedback, and Paco was invited to return for future opportunities, further deepening our connection with AFEU members and expanding awareness of the resources available to them.

Our Commitment Remains Strong

Although the shutdown has ended, our dedication to supporting members during every season of life continues. Whether through emergency assistance programs, competitive lending solutions, or personalized financial guidance, SRI Federal Credit Union will always prioritize the financial well-being of our members.

Thank you to every member who trusted us through this challenging period. We are honored to serve you and proud of the resilience shown across our community.

Posted in Financial Literacy, Hello World, Loans

Fraud Alert: Scammers Posing as U.S. Marshals

At SRI Federal Credit Union, protecting our members from fraud is always a top priority. We are alerting you to a new phone scam that has been reported in our community.

Why Summer 2025 Is a Smart Time to Buy a Car

Summer is one of the most popular and strategic times to purchase a vehicle. As dealerships gear up for new model releases in the fall, they’re motivated to move current inventory. That means hot deals and promotional pricing are heating up right alongside the weather. Whether you’re in the market for a new or used car, now is a great time to find a vehicle that fits your lifestyle and budget.

But finding the right car is only half the equation—securing the right financing makes all the difference. That’s where SRI Federal Credit Union comes in.

Why Buy a Car in the Summer?

Summer isn’t just for road trips—it’s also when dealerships offer mid-year promotions to stay competitive and clear out vehicles ahead of the fall. Here’s what you can expect:

Mid-Year Clearance Sales: Discounts on both new and certified pre-owned vehicles.
Seasonal Incentives: Rebates, trade-in bonuses, and low-rate offers are common, but often come with fine print.
Peak Inventory: With many models in stock, you have more options to test drive and compare.

While dealer financing might sound appealing on the surface, credit union financing is often the better long-term choice.

Benefits of Financing Through SRI Federal Credit Union

✅ Competitive Rates
We offer some of the most competitive auto loan rates in the market—currently 4.99% APR for new or used vehicles, so you pay less over the life of your loan.

✅ Flexible Terms
Choose the repayment plan that best suits your lifestyle, whether it’s a short-term payoff or extended terms for lower monthly payments.

✅ Pre-Approval for Confidence
Get pre-approved before you start shopping so you know exactly what you can afford—and gain negotiating power when you step onto the lot.

✅ Personalized Service
At SRI Federal Credit Union, you’re a member, not a number. Our experienced loan advisors will walk you through the process with honest, helpful guidance.

✅ No Hidden Fees
Unlike many dealership financing options, our loans have transparent terms—with no markup on GAP or Mechanical Breakdown Insurance.

Ready to Hit the Road?

Buying a car should feel exciting, not overwhelming. With SRI Federal Credit Union, it’s easy to finance your next vehicle:

Apply for Pre-Approval: Click HERE to apply online, or stop by your nearest branch.
Shop with Confidence: Use your pre-approval to negotiate your best deal.
Close with Ease: Finalize your loan with competitive rates and flexible terms.

Make this summer the one where you drive off with a great car and even better financing.

At SRI Federal Credit Union, we’re here to help you steer your financial journey with confidence.

APR = Annual Percentage Rate. Rate valid through 07/31/25.

Posted in Financial Literacy, Hello World, Loans

Important Updates to Funds Availability and Check Collection Rules

To ensure continued compliance with federal banking regulations, SRI Federal Credit Union would like to inform our members of upcoming changes to Regulation CC, the rule that governs the availability of funds and the collection of checks. These changes, mandated by the Federal Reserve Board and the Consumer Financial Protection Bureau (CFPB), effective as of July 1, 2025.

Honoring Legacy, Empowering Futures: The 2025 SRI Federal Credit Union Memorial Scholarship

At SRI Federal Credit Union, we’re proud to support education and honor the legacy of those who helped build our credit union community. That’s why we’re excited to announce the 2025 SRI Federal Credit Union Memorial Scholarship — an opportunity for promising students to receive financial support as they take their next big step in life.

How Tariffs Impact the U.S. Market and Why Credit Union Membership Provides Stability

Tariffs have long been a tool used in global trade to influence economic policies, protect domestic industries, and sometimes serve as leverage in international negotiations. However, they can also create volatility in financial markets, affecting everything from stock prices to consumer goods costs. With the ongoing uncertainty surrounding tariffs and their impact on the U.S. economy, having your money in a stable, member-focused institution like SRI Federal Credit Union is more important than ever.

The Effects of Tariffs on the Economy

Tariffs are essentially taxes imposed on imported goods, which can lead to higher costs for businesses and consumers. Over the years, we’ve seen how tariffs on steel, aluminum, and other key materials have increased production costs for American companies, leading to higher prices on everything from cars to household appliances. Additionally, retaliatory tariffs from other countries can hurt U.S. exports, negatively impacting industries like agriculture and manufacturing.

Financial markets tend to react sharply to tariff announcements. Uncertainty about trade policies can cause fluctuations in the stock market, affecting investment portfolios, retirement savings, and overall consumer confidence. For individuals and businesses alike, these swings can create stress and financial instability.

The Credit Union Advantage: Stability and Security

While the broader economy may be affected by trade disputes and tariff policies, credit union members can take comfort in the security and stability of their funds. Here’s why banking with SRI Federal Credit Union is a smart choice in uncertain times:

Member-Owned, Not-for-Profit Model: Unlike big banks that are beholden to shareholders and market fluctuations, credit unions operate for the benefit of their members. That means decisions are made with your financial well-being in mind, not for corporate profit.
Competitive Rates and Lower Fees: Economic instability can lead traditional banks to adjust their rates and fees to protect profits. At SRI Federal Credit Union, we offer consistently competitive rates on savings, loans, and credit cards, ensuring you get the best value no matter what’s happening in the market.
Federally Insured Deposits: Your deposits at SRI Federal Credit Union are insured up to $250,000 by the National Credit Union Administration (NCUA), giving you peace of mind that your money is protected, regardless of economic turbulence.
Personalized Service and Financial Guidance: During times of market volatility, having access to trusted financial advice is invaluable. Our team at SRI Federal Credit Union is dedicated to helping you navigate economic changes and make informed financial decisions that align with your goals.

Protect Your Financial Future with SRI Federal Credit Union

While tariffs and trade policies can create uncertainty, you don’t have to let them disrupt your financial security. By keeping your funds in a trusted institution like SRI Federal Credit Union, you benefit from stability, competitive financial products, and personalized service that puts your needs first.

If you’re looking for a secure place to manage your money in unpredictable times, we’re here to help. Visit us today to learn more about how we can support your financial well-being—no matter what the economy throws our way.

Posted in Financial Literacy, Hello World

What is a PLUS Loan?

What Are the Benefits of a PLUS Loan?

PLUS Rates and Fees

What Are Some Alternatives to PLUS Loans?

Who is Eligible for a PLUS Loan?

How Do You Apply for a PLUS Loan?

Learn More About Your Options for College Financing

Need Additional Funds?

We’re Here to Help

Scholarship Details

Who Is Eligible to Apply?

Important Dates

How to Apply

Why Apply?

Investing in Our Members’ Future

A Quick Reminder: Stay Safe from Scholarship Scams

Apply Today

1. Build or Boost Your Emergency Savings

2. Pay Down High-Interest Debt

3. Lock In Your Earnings with a Certificate

4. Invest in a Goal That Matters to You

5. Do a Little of Everything

Make Your Refund Work for You

✔️ Quick Next Steps:

Dr. King’s Enduring Vision for Economic Justice

Carrying the Legacy Forward and What’s New This Year

Empowering Members Through Action

Moving Forward Together

A Program Built Before the Crisis Hit

Measurable Impact During the Shutdown

Expanding Support Through Community Engagement

Our Commitment Remains Strong

How the Scam Works

What You Should Do

Protect Your Community

Why Buy a Car in the Summer?

Benefits of Financing Through SRI Federal Credit Union

Ready to Hit the Road?

What’s Changing?

Need Help or Have Questions?

Who’s Eligible?

Key Dates

How to Apply

Have Questions?

The Effects of Tariffs on the Economy

The Credit Union Advantage: Stability and Security

Protect Your Financial Future with SRI Federal Credit Union