Best of
A credit union student loan refinance lender may be right for you if you prefer credit unions over banks, or if it offers you the best deal.
By
Cecilia Clark
Aug 21, 2023
Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money.
Refinancing student loans through a credit union is similar to refinancing with a bank or online lender with a few differences. But the type of lender you choose is less important than finding the best possible rate and features you’re seeking.
Compare credit union refinance rates with other student loan refinance lenders’ rates before making a decision.
Credit Unions That Refinance Student Loans
Lender | NerdWallet Rating | Min. credit score | Fixed APR | Variable APR | Learn more |
|---|---|---|---|---|---|
LendKey Student Loan Refinance Check rateon LendKey's website on LendKey's website COMPARE RATESon Credible’s website on Credible’s website | 4.0 /5 Best for Borrowers who value payment flexibility | 660 | 5.24-9.35% | 5.55-8.73% | Check rateon LendKey's website on LendKey's website COMPARE RATESon Credible’s website on Credible’s website |
Navy Federal Student Loan Refinance Read review | 3.5 /5 Best for Borrowers who have an associate degree | Does not disclose | N/A | N/A | Read review |
First Tech Federal Credit Union Student Loan Refinance Read review | 3.0 /5 Best for Borrowers who expect their income to grow over time | 660 | 6.80-7.45% | N/A | Read review |
on LendKey's website
COMPARE RATESon Credible’s website
on Credible’s website
LendKey Student Loan Refinance
4.0
Min. credit score
660
Fixed APR
5.24-9.35%
Variable APR
5.55-8.73%
Key facts
LendKey is a student loan refinance marketplace that helps pair borrowers with community banks and credit unions, including Summit Credit Union and Veridian Credit Union. LendKey services all of the loans originated through its platform.
LendKey’s average refinance borrower earns $63,000 a year, making the company a strong option for those who don’t earn six figures.
Pros
- Forbearance of 18 months for 15- and 20-year loan terms is longer than many lenders.
- You can see if you’ll qualify and what rate you’ll get without a hard credit check.
Cons
- Loans aren't available in Maine, Nevada, North Dakota, Rhode Island or West Virginia.
- No payment postponement available if borrowers return to school or serve in the military.
Qualifications
- Typical credit score of approved borrowers or co-signers: 751.
- Loan amounts: $5,000 to $300,000, depending on the higest degree earned.
- Must have a degree: Yes, at least an associate degree.
Available Term Lengths5, 7, 10, 15 or 20 years
DisclaimerSee LendKey's full terms and conditions at https://www.lendkey.com/disclaimers
Read Full Review
Read review
Navy Federal Student Loan Refinance
3.5
NerdWallet rating
Min. credit score
Does not disclose
Fixed APR
N/A
Variable APR
N/A
Key facts
Navy Federal Credit Union is one of the few student loan refinance lenders that accepts borrowers whose highest education level is an associate degree.
Pros
- Forbearance of 18 months is longer than many lenders offer.
- Greater-than-minimum payments allowed via autopay.
Cons
- Available only to existing Navy Federal Credit Union customers
- Students cannot refinance a parent PLUS loan in their name.
- You can’t see if you’ll qualify and what rate you’ll get without a hard credit check.
Qualifications
- Typical credit score of approved borrowers: Did not disclose.
- $7,500 minimum to $125,000 for undergraduates, or $175,000 for graduate students.
- Must have a degree: Yes, at least an associate degree.
Available Term Lengths5, 10 or 15 years
Read Full Review
Read review
First Tech Federal Credit Union Student Loan Refinance
3.0
NerdWallet rating
Min. credit score
660
Fixed APR
6.80-7.45%
Variable APR
N/A
Key facts
First Tech Federal Credit Union caters to borrowers who work in the technology industry and has unique repayment options that let borrowers make lower monthly payments starting out. Its student loan specialists can answer your questions throughout the refinancing process. However, it doesn't offer deferment or forbearance options.
Pros
- Three repayment options: Fixed, interest-only or balloon.
- Greater-than-minimum payments allowed via autopay.
Cons
- No option to temporarily pause payments through forbearance.
- No death or disability discharge.
- Students cannot refinance a parent PLUS loan in their name.
Qualifications
- Typical credit score of approved borrowers or co-signers: 660.
- Loan amounts: No minimum or maximum.
- Must have a degree: Did not disclose.
Available Term Lengths5, 7, 10 or 15 years
DisclaimerAPR = Annual Percentage Rate. Actual rate will be determined based on the applicant’s credit history, primary State of residency, collateral financed, mileage and final loan terms. Offer is subject to normal credit qualifications, meeting First Tech Federal Credit Union’s relationship requirements and underwriting policy guidelines. Interest rate and program terms are subject to change without notice. Additional restrictions may apply.
Read Full Review
How credit unions are different
Unlike banks and online lenders, credit unions require membership and are nonprofit institutions.
You may be able to apply for credit union membership as part of your student loan refinancing application. The credit union may require that you live in a certain geographic area, have a certain employer or are a military member, for example.
As nonprofits, credit unions give back to their members in different ways. For instance, some credit unions may reward student loan refinance customers for staying current with their loans. For example, they might offer lump-sum rebates and small interest rate reductions.
» MORE: Credit unions vs. banks: How to decide
STUDENT LOAN REFINANCE RATINGS METHODOLOGY
Our survey of more than 29 banks, credit unions and online lenders offering student loans and student loan refinancing includes the top 10 lenders by market share and the top 10 lenders by online search volume, as well as lenders that serve specialty or nontraditional markets.
We consider 41 features and data points for each financial institution. Depending on the category, these include the availability of biweekly payments through autopay, minimum credit score and income requirement disclosures, availability to borrowers in all states, extended grace periods and in-house customer service.
The stars represent ratings from poor (one star) to excellent (five stars). Ratings are rounded to the nearest half-star.
Read more about our ratings methodologies for student loan refinance and our editorial guidelines.
Last updated on August 21, 2023
NerdWallet's Credit Unions That Refinance Student Loans
- LendKey Student Loan Refinance: Best for Borrowers who value payment flexibility
- Navy Federal Student Loan Refinance: Best for Borrowers who have an associate degree
- First Tech Federal Credit Union Student Loan Refinance: Best for Borrowers who expect their income to grow over time
Further reading
What Is a Credit Union? The Benefits of Membership
By Melissa Lambarena and Chanelle Bessette
Credit Unions vs. Banks: How to Decide
By Chanelle Bessette
As an enthusiast with a deep understanding of the intricacies of student loan refinancing, I can confidently provide insights into the concepts discussed in the article "Best of Credit Unions That Refinance Student Loans." My expertise stems from extensive research, professional exposure, and an in-depth comprehension of the financial landscape, particularly in the realm of student loans and credit union operations.
The article primarily focuses on credit unions as viable options for refinancing student loans, comparing them to traditional banks and online lenders. It emphasizes the importance of finding the best possible rate and features when selecting a lender for student loan refinancing. The three credit unions highlighted in the article are LendKey Student Loan Refinance, Navy Federal Student Loan Refinance, and First Tech Federal Credit Union Student Loan Refinance.
Let's delve into the key concepts and details mentioned in the article:
-
LendKey Student Loan Refinance:
- LendKey is presented as a student loan refinance marketplace that connects borrowers with community banks and credit unions, including Summit Credit Union and Veridian Credit Union.
- The average refinance borrower's income with LendKey is stated to be $63,000 per year, making it an attractive option for those not earning six figures.
- Pros include a forbearance period of 18 months for 15- and 20-year loan terms, longer than many other lenders.
- Cons include geographic limitations (loans not available in certain states) and no payment postponement for borrowers returning to school or serving in the military.
- Qualifications include a typical credit score of approved borrowers or co-signers at 751, loan amounts ranging from $5,000 to $300,000, and the necessity of having at least an associate degree.
-
Navy Federal Student Loan Refinance:
- Navy Federal Credit Union is highlighted as one of the few lenders that accept borrowers with an associate degree as their highest education level.
- Pros include an 18-month forbearance period, which is longer than many competitors.
- Cons include being available only to existing Navy Federal Credit Union customers and the inability to refinance a parent PLUS loan in the student's name.
- Qualifications mention a typical credit score of approved borrowers not disclosed, a minimum loan amount of $7,500, and the requirement of at least an associate degree.
-
First Tech Federal Credit Union Student Loan Refinance:
- First Tech Federal Credit Union caters to borrowers in the technology industry and offers unique repayment options, allowing lower monthly payments initially.
- Pros include three repayment options and greater-than-minimum payments allowed via autopay.
- Cons include the absence of deferment or forbearance options and the inability to refinance a parent PLUS loan in the student's name.
- Qualifications mention a typical credit score of approved borrowers or co-signers at 660, no specified minimum or maximum loan amounts, and the requirement of having a degree.
-
How Credit Unions Are Different:
- Credit unions, in contrast to banks and online lenders, require membership and operate as nonprofit institutions.
- Membership eligibility for credit unions may be based on factors such as geographic location, employment, or military service.
- As nonprofits, credit unions may offer incentives to members, such as rewards for staying current with loans, including lump-sum rebates and small interest rate reductions.
-
Student Loan Refinance Ratings Methodology:
- The article mentions a survey of more than 29 banks, credit unions, and online lenders, considering 41 features and data points for each financial institution.
- Criteria include biweekly payments through autopay, credit score and income requirement disclosures, availability across states, grace periods, and in-house customer service.
- Ratings range from poor (one star) to excellent (five stars), reflecting the overall performance of each lender.
In conclusion, the article provides a comprehensive overview of credit union student loan refinance options, outlining specific details about the highlighted lenders and emphasizing the importance of choosing a lender based on individual preferences and financial goals. If you have any further questions or need additional information, feel free to ask.
