5 Credit Unions That Refinance Student Loans 2024 (2024)

If you’re looking to simplify your student loans through lower interest rates and better repayment terms, consider refinancing with a credit union offer. Some credit unions offer added perks like enhanced discounts and personalized service. However, many credit unions require membership, so be sure you meet the eligibility criteria before applying.

Credit Unions for Student Loan Refinancing

The list of credit unions that refinance student loans is slim. We selected refinance options across multiple credit unions based on accessibility, rates, available terms, fees and application processes.

Navy Federal Credit Union

Navy Federal Credit Union is the largest credit union in the U.S. by asset size. Its refinance student loans offer flexible repayment options, lower monthly payments and competitive interest rates. Navy Federal also has refinancing solutions for parents who’ve borrowed student loans for their children.

The credit union allows co-signers on its refinanced student loans. Borrowers can request a co-signer release, which takes the co-signer’s name off the loan, after 12 consecutive and timely payments.

Navy Federal Credit Union Loan Details

• Eligibility requirements. You must be a U.S. citizen or permanent resident of legal age in your state. Navy Federal also requires a minimum income of $2,000 per month and at least 21 months of credit history. If you don’t meet the credit criteria, you must earn a minimum monthly income of $100 and apply with a co-signer that makes at least $2,000 per month. Applicants also must meet Navy Federal’s membership requirements.
• Terms. Five-, 10- or 15-year terms are available.
• APRs. Fixed rates start at 4.60%; variable rates start at 6.62% for student and parent refinance loans. A 0.25% discount is available if you sign up for automatic payments.
• Loan amounts. Available loan amounts start at $7,500 for parents and undergraduate students. Maximum amounts can reach $125,000 for undergraduates and $175,000 for graduates and parents.

PenFed Credit Union

PenFed Credit Union is another nationally-ranked credit union that offers student refinance loans. Co-signers are permitted if borrowers fail to meet the minimum credit and income requirements. PenFed also offers a co-signer release after 12 consecutive payments. You must complete a co-signer release form to proceed.

You can prequalify by filling out a quick online form that won’t affect your credit.

PenFed Credit Union Loan Details

• Eligibility requirements. You must be a U.S. citizen with a degree from an accredited institution. Borrowers must earn a minimum annual income of $42,000 or apply with a co-signer that meets this requirement. PenFed requires membership, but unlike other credit unions, it’s open to everyone.
• Terms. Five-, eight-, 12- or 15-year terms are available.
• APRs. Fixed rates range from 7.74% to 9.93%.
• Loan amounts. Available loan amounts range from $7,500 to $300,000 for undergraduate and graduate loans.

First Tech Credit Union

First Tech Credit Union offers three flexible student loan refinancing options: standard installment loans with recurring monthly payments, balloon loans that start with a lower monthly payment but ends with one large payment and interest-only loans that let you make lower, interest-only payments at first. A Parent PLUS student loan option is available.

Applicants must provide proof of income using a W-2 form or with pay stubs. You’ll also need to provide recent loan statements to confirm your ability to repay on time.

First Tech Credit Union Loan Details

• Eligibility requirements. You and your co-signer (if applicable) must be U.S. citizens or permanent residents, ages 18 or older. However, First Tech only requires you to become a member. Your loans must also come from a qualified Title IV school that offers associate, bachelor’s, master’s or doctorate degrees.
• Terms. Five-, seven-, 10- or 15-year terms are available.
• APRs. Your loan rate depends on your selected loan type and credit score. Fixed-rate loans offer rates as low as 8.10%. Balloon and interest-only loans start at 9.40%.
• Loan amounts. Available loan amounts range from $5,000 to $500,000.

Service Credit Union

Service Credit Union student loan refinancing options are available for private and federal student loans. Parents can also refinance their federal Direct PLUS loans.

Variable or fixed-rate refinancing options are available across multiple repayment terms.

Service Credit Union Loan Details

• Eligibility requirements. Service Credit Union requires membership to fund the loan. Applicants must be U.S. citizens or permanent residents with a bachelor’s degree or higher from an approved nonprofit school. Your loans must be in the grace period or repayment phase.
• Terms. Five-, 10-, or 15-year terms are available.
• APRs. Fixed rates range from 5.80% to 8.00% and variable rates range from 7.99% to 10.34%. Rates change depending on your term length and credit score.
• Loan amounts. Available amounts reach up to $150,000

LendKey

LendKey is a platform that connects users to multiple credit unions that offer student loan refinance. It partners with credit unions across the country to find a refinancing solution that meets borrowers’ needs.

LendKey Loan Details

• Eligibility requirements. You must be a U.S. citizen or permanent resident to apply. Additionally, LendKey requires a minimum associate’s degree from a Title IV-accredited school. If you have multiple degrees, you can apply with the most advanced degree. While LendKey doesn’t require membership, the credit unions it connects you with may.
• Terms. Terms vary by lender but typically range from five to 15 years.
• APRs. Rates start at 5.24% with a 0.25% autopay discount.
• Loan amounts. The minimum is $5,000, which may vary based on your state.

Pros and Cons of Credit Union Student Loan Refinancing

Before deciding on a credit union student loan refinance, consider the benefits and disadvantages of refinancing through this type of lender.

Pros

• Competitive interest rates and fewer fees. Credit unions can offer lower fees and interest rates compared to national banks. Since credit unions are nonprofit institutions, earnings keep fees low for its members.
• Special perks. You might receive rate discounts for autopay and incentives for other products like auto loans or credit cards.
• Personalized service. Credit unions serve a smaller community compared to their competitors. You’ll receive more personal, one-on-one assistance if you have questions about your loan.

Cons

• Membership requirements. Most credit unions require that you live within the community, work for an affiliated company or belong to a specific group such as the military. You may also be able to open a savings account to meet membership requirements with some credit unions.
• Lower loan amounts. Credit unions typically offer smaller loan amounts compared to traditional banks. Lower limits help credit unions manage deposits to fund other loans.
• Lack common features. Some credit unions don’t offer sophisticated mobile app functions, which might be prohibitive for tech-savvy members.

How To Apply for Student Loan Refinancing With a Credit Union

The application process for student loan refinancing with a credit union is similar to that of a conventional bank. To apply for a credit union student loan refinancing, follow these general steps:

1. Understand your current student loan situation. Examine all of your current student loans and identify whether they are private or federal. Check your interest rates and compare them to current market rates. A refinance may not be a good option if your rate is lower than current interest rates. It’s also important to identify your outstanding debt and set a goal for your monthly payments after your refinance.
2. Check your credit score. Most credit unions require you or your co-signer to have a good credit score of at least 670 for student loan refinancing. Before you shop for lenders, check your credit report to ensure you meet this requirement. If your score falls short, improve it by paying down existing debt or correcting credit report errors.
3. Determine if you need a co-signer. If you fall below credit or income requirements, a co-signer could help you qualify for better interest rates and terms. Your co-signer must meet the same requirements that you do, and they must have good or excellent credit.
4. Consider multiple credit unions. Each credit union has unique eligibility requirements, loan details and benefits. Explore different lenders to find the best refinance loan that fits your needs.
5. Gather the necessary information. Most credit unions require basic information concerning your identity, address and education. You’ll also need to indicate whether your current loan is private or federal. Credit unions also require proof of income, such as paycheck stubs, bank statements or tax documentation.
6. Fill out an application. Once you decide on a credit union, fill out an application online or in person, depending on the credit union. Credit union membership is typically required when applying for student loan refinancing. However, this requirement can vary depending on the lender. If you have a co-signer, they’ll need to submit similar documentation. Approval can take a few days to several weeks, depending on the lender.
7. Complete the final approval steps. Once you’re approved, sign your loan agreement and disclosure form to finish the process. The credit union will then distribute your refinance loan to your previous lender. During this step, continue to make your monthly payments while you wait.