In addition to checking and savings accounts, some credit unions offer student loan refinancing to eligible borrowers. Refinancing student loans through a credit union could potentially save money if you’re able to lock in lower rates or avoid certain loan fees.
Credit unions don’t operate primarily for profits; instead, they aim to serve the needs of their members first. They tend to have lower overhead costs, allowing them to charge lower rates for loans, including student loan refinancing.
Is a credit union student loan refinance right for you? Comparing the best credit union refinancing options can help you decide.
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Our team looked into several credit unions that refinance student loans to find the ones that offered unique features and benefits to borrowers. Here’s our list.
| Credit union | Availability | Rates (APR) | Terms |
| Credible | Varies by lender | 4.75% – 14.52% | Varies by lender |
| Navy Federal Credit Union | Active duty, retired military, veterans, Department of Defense civilians, and family members in all 50 states | Start at 4.85% | 5, 10, or 15 years |
| PenFed Credit Union | Members in all 50 states | Start at 7.74% | 5, 8, 10, or 15 years |
| LendKey | Varies by lender | Start at 8.11% | 5 – 20 years |
Credible is not a credit union; it’s a marketplace for comparison shopping for financial products. It was included in this list because it frequently partners with credit unions, so borrowers can compare credit union and non-credit union loan offers in one location.
As of January 5th, 2024, the only options for credit unions in its network come through LendKey, which connects borrowers with local banks and credit unions.
Navy Federal Credit Union is an excellent option for those affiliated with the military. It offers a standard refinance student loan and parent refinance student loan.
While its terms are competitive, its member-focused approach is the area in which it truly stands out. It offers a career assistance program to support borrowers during their careers.
PenFed Credit Union offers a community-focused approach to banking, including student loan refinancing. It provides competitive rates and dedicated member support, making it a strong choice for borrowers seeking a more personalized refinancing experience.
Cosigners can be added, which could lower the interest rate on the loan.
LendKey operates by connecting borrowers with various credit unions for student loan refinancing. This approach allows for a range of options and tailored solutions backed by the efficiency of a technology-driven platform.
LendKey is ideal for those seeking the community feel of a credit union combined with the convenience of an online service.
Ask the expert
You usually have to be a credit union member to qualify for a loan. Some credit unions may allow you to obtain membership while you are applying for a loan. This typically requires opening up a checking and savings account.
Opting for a credit union student loan refinance has some upsides, but there are a few drawbacks to consider as well. Looking at both sides can help you decide if choosing a credit union over a traditional bank or online lender makes sense.
Pros
Lower rates
You may qualify for lower student loan refinance rates than you would elsewhere.
Open to more borrowers
A credit union may be more willing to work with you if you have bad or no credit.
Larger refinance amounts
You might be able to refinance a larger amount of student loan debt.
More lenient cosigner release
If you need a cosigner to get approved, a credit union may be more lenient about releasing them from the loan down the line.
Member perks
Some credit unions offer special perks to members, such as discounts for partner businesses, discounted loan rates, or cash rewards when you open a new account.
Cons
Membership required
You’ll first need to meet the membership requirements to join a credit union to apply for a refinance loan
Cosigner may be required
Some credit unions may require you to have a cosigner if you don’t meet minimum credit score requirements.
Slower funding speed
Funding speed after approval may be slower at a credit union than it is at a bank or online refinance lender.
Banks, by comparison, don’t require you to meet membership requirements to apply for a loan. You may not even need to have an account at the bank. Online lenders, meanwhile, can offer competitive student loan refinance rates with fast funding approval and funding.
Not everyone will qualify for a loan—regardless if its a credit union or a bank.
You may look at national and local options when comparing credit unions for student loan refinancing. National credit unions may have broader criteria for membership, making it easier to join and apply for student loan refinancing. You might prefer a local credit union, however, if you’d like to be able to visit a nearby branch.
Finding local or regional credit unions that offer student loan refinancing may be as simple as doing a short online search. You can try searching for ‘credit union near me’ or ‘credit union student loan refinance near me,’ then spend some time researching the different options that come up.
Here are some helpful items to consider when comparing student loan refinancing at credit unions:
The criteria for joining can vary from one credit union to another. Most often, you’ll need to live, work, attend school, or worship in a particular geographic area or belong to a partner organization. Some credit unions also base membership on military affiliation.
Refinancing student loans with a credit union is similar to refinancing with a bank or online lender. If you’ve never refinanced student loans before, here’s a look at how it typically works.
Learn more about how to refinance student loans to decide if it’s right for you.
The post Credit Unions to Refinance Student Loans appeared first on LendEDU.
