BEST OF

4 Credit Unions That Refinance Student Loans

A credit union student loan refinance lender may be right for you if you prefer credit unions over banks, or if it offers the lowest interest rate you qualify for or a unique feature you value, such as initial interest-only payments.

Cecilia Clark
Jan 26, 2022

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Refinancing student loans through a credit union is similar to refinancing with a bank or online lender — more on the differences below. But the type of lender you choose is less important than finding the best possible rate and features you’re seeking, like the option to combine your loans with your spouse’s.

Compare credit union refinance rates with other student loan refinance lenders’ rates before making a decision.

Credit Unions That Refinance Student Loans

PenFed Student Loan Refinance

PenFed Student Loan Refinance

5.0

NerdWallet rating 
PenFed Student Loan Refinance

Min. credit score

670

Fixed APR

4.49-6.68%

Variable APR

N/A

Variable APR

N/A

Key facts

Pentagon Federal Credit Union, or PenFed, stands out as one of the only lenders — credit union or otherwise — that allows married couples to refinance student loans together. PenFed uses the couple’s combined incomes and the higher credit score of the two to evaluate eligibility and assign a new interest rate. This means the spouse with the lower score would likely qualify for a lower interest rate than he or she would otherwise.

Pros

  • Married couples can refinance student loans into a single loan.

  • You can refinance parent PLUS loans in your name.

  • You can see if you’ll qualify and what rate you’ll get without a hard credit check.

Cons

  • Estate is still responsible for the loan if the borrower dies.

Qualifications

  • Typical credit score of approved borrowers or co-signers: 773.

  • Loan amounts: $7,500 to $300,000.

  • Must have a degree: Yes, at least a bachelor’s degree.

Available Term Lengths

5, 8, 12 or 15 years

Disclaimer

Rates and offers current as of May 13, 2022. Annual Percentage Rate (APR) is the cost of credit calculating the interest rate, loan amount, repayment term and the timing of payments. Fixed Rates range from 4.49% APR - 6.68% APR. Fixed Rates will vary based on application terms, level of degree and presence of a co-signer. These rates are subject to additional terms and conditions and rates are subject to change at any time without notice. Such changes will only apply to applications taken after the effective date of change.

LendKey Student Loan Refinance
Check rate

on LendKey's website

LendKey Student Loan Refinance

4.5

NerdWallet rating 
LendKey Student Loan Refinance

Min. credit score

660

Fixed APR

2.99-9.93%

Variable APR

3.57-6.83%
Check rate

on LendKey's website

Variable APR

3.57-6.83%

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 Lengths

5, 7, 10, 15 or 20 years

Disclaimer

See LendKey's full terms and conditions at https://www.lendkey.com/disclaimers

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Navy Federal Student Loan Refinance
Read review

Navy Federal Student Loan Refinance

3.5

NerdWallet rating 
Navy Federal Student Loan Refinance

Min. credit score

Does not disclose

Fixed APR

2.99-12.03%

Variable APR

1.45-10.26%
Read review

Variable APR

1.45-10.26%

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 Lengths

5, 10 or 15 years

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First Tech Federal Credit Union Student Loan Refinance
Read review

First Tech Federal Credit Union Student Loan Refinance

3.0

NerdWallet rating 
First Tech Federal Credit Union Student Loan Refinance

Min. credit score

660

Fixed APR

2.80-7.15%

Variable APR

N/A
Read review

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 Lengths

5, 7, 10 or 15 years

Disclaimer

APR = 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.

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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 periodically reward student loan refinance customers for staying current with their loans, says Christian Widhalm, senior vice president of lender partnerships at LendKey.

“They can be very creative with benefits,” Widhalm says, citing lump-sum rebates and small interest rate reductions as two examples.

» 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 January 26, 2022

To recap our selections...

NerdWallet's Credit Unions That Refinance Student Loans

Further reading

What Is a Credit Union? The Benefits of Membership

By Melissa Lambarena & Chanelle Bessette

Credit Unions vs. Banks: How to Decide

By Chanelle Bessette