Union Federal Private Student Loans: 2026 Review
A Union Federal student loan offers academic deferment for borrowers returning to school, no late fees, and term lengths ranging from five to 20 years.
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Student loan ratings
Union Federal student loans are available to undergraduate and graduate students (and those enrolled in graduate certificate programs) with no late fees and rate reductions possible through on-time and automatic payments.
Union Federal Private Student Loan review
Pros
- Offers a rate reduction for automatic payments and a rate reduction of 0.05% for every six months of on-time principal and interest payments (up to 0.25%).
- When the borrower provides proof of graduation they are eligible for a 2% balance reduction.
- If a borrower pauses loan payments for all available 12 months of forbearance, they may be able to earn additional 3-month forbearance periods for up to another 12 months total.
- Variety of post-graduation payment options to fit borrower needs.
- 5, 7, 10, 15 and 20 year loan terms.
- Offers academic deferment or forbearance for borrowers returning to school, and financial hardship forbearance.
- No late payment fees.
Cons
- Borrowers are not assigned a dedicated advisor or banker.
- Does not offer a rehabilitation program for defaulted borrowers.
- Does not automatically apply extra payments to the principal balance.
Full Union Federal student loans review
Undergraduate or graduate students are eligible for a Union Federal student loan as long as the borrower is enrolled in a degree-granting program at an eligible, four-year institution. Graduate certificate programs are also eligible for these student loans. Loans can cover school-certified expenses, including tuition, books, transportation, room and board, and class supplies.
Without even applying for a loan or a hard credit check, potential borrowers can learn their rate and configure their loan to see how different options could affect their rate and repayment amounts. Returning borrowers, such as graduate students, receive a streamlined application process and increased likelihood of approval.
Union Federal student loans stand out for their 0.25% interest rate reduction when borrowers sign up for autopay, and an additional 0.05% rate reduction for every six months of on-time principal and interest payments (up to 0.25%). Union Federal loans also have a wide range of repayment options, both in-school and out.
Union Federal could improve its transparency and customer service experience. Specifically, borrowers are not assigned a dedicated advisor or banker, and extra payments are not automatically applied to the principal.
More about Union Federal
Loan and borrower requirements
Loan terms: 5, 7, 10, 15, 20 years.
Loan amounts: $1,000 minimum with a limit of $300,000 for undergraduate programs, $350,000 for graduate programs.
Minimum credit score: mid 600s.
Minimum income: Borrowers must demonstrate positive income, but no minimum.
Maximum debt-to-income (DTI) ratio: Does not require a DTI threshold for approval.
Time requirement after filing for bankruptcy: Information not disclosed.
Co-signer: Allowed, but not required. A co-signer release is available after 12 months.
Payment and repayment
Allows greater-than-minimum payments via autopay: Yes.
Allows biweekly payments via autopay: Yes.
Grace period following graduation: 6+ months with extension option.
In-school repayment options: Full payment, interest-only, full deferred and partial payment (flat payment of $25 per month while in school and 6 month grace period).
Post-school repayment options: Interest-only, internship deferment, residency deferment, administrative forbearance, natural disaster forbearance, temporary interest rate reduction, temporary lower payments and military deferment.
Customer experience
Customer service: Offers in-house customer service that can be reached by phone, e-mail, mail and live chat (chat hours are from 9:00 a.m. to 5:00 p.m. Eastern Standard Time).
Typical time for application approval: Once documentation has been received and approved, final approval takes just minutes.
Loan servicer: AES/PHEAA.
Union Federal extras
If a borrower becomes unemployed due to a natural disaster, they can pause their payments. But heads up: any accrued or unpaid interest may be capitalized at the end of the forbearance period.
A returning borrower has a streamlined application process and higher likelihood of approval on subsequent loan applications.
Deferred Action for Childhood Arrivals (DACA) and international students can apply for a Union Federal student loan with a co-signer who is a U.S. citizen or permanent resident.
Students can enter the Paying For College Sweepstakes for an opportunity to win $1,500 for school expenses — no essay required.
Lender | Fixed APR | Min. credit score | Variable APR | |
|---|---|---|---|---|
 Check Rate on Earnest's website | 4.25-9.79% | 650 | 5.68-9.79% | Check Rate on Earnest's website |
 Check Rate on SoFi®'s website | 3.99-9.99% | 650 | 5.74-9.99% | Check Rate on SoFi®'s website |
 Check Rate on LendKey's website | 4.39-9.24% | 680 | 4.18-6.23% | Check Rate on LendKey's website |
 Check Rate on ELFI's website | 4.29-8.44% | 680 | 4.74-8.24% | Check Rate on ELFI's website |
 Check Rate on Splash Financial's website | 3.71-10.24% | 650 | 4.74-10.74% | Check Rate on Splash Financial's website |
Union Federal Graduate Student Loan review
Pros
- Offers a rate reduction for automatic payments and a rate reduction of 0.05% for every six months of on-time principal and interest payments (up to 0.25%).
- If a borrower pauses loan payments for all available 12 months of forbearance, they may be able to earn additional 3-month forbearance periods for up to another 12 months total.
- Variety of post-graduation payment options to fit borrower needs.
- 5, 7, 10, 15 and 20 year loan terms.
- Offers financial hardship forbearance.
- No late payment fees.
Cons
- Borrowers are not assigned a dedicated advisor or banker.
- Does not offer a rehabilitation program for defaulted borrowers.
- Does not automatically apply extra payments to the principal balance.
Union Federal offers these graduate school loans
Medical | Pharmacy |
Dental | Nursing |
Veterinary | MBA |
Law |
Before applying for a Union Federal student loan
Before taking out a Union Federal student loan or any other private student loan, exhaust your federal student loan options first. Submit the Free Application for Federal Student Aid, known as the FAFSA, to apply.
» MORE: NerdWallet’s FAFSA Guide
Compare your private student loan options to make sure you’re getting the best rate you qualify for. In addition to interest rates, look at lenders’ repayment alternatives and the flexibility they offer to borrowers who struggle to make payments.
If you aren't eligible for a Union Federal student loan
If Union Federal denies your student loan application, the lender will let you know why. Depending on the reason, you may want to consider other lenders or, if you haven’t already, try applying with a co-signer.
If you don’t have access to a co-signer — or still aren’t eligible with one — consider lenders that don’t require co-signers or specialize in bad or no credit student loans.
STUDENT LOAN RATINGS METHODOLOGY
Our student loans editorial team surveyed 20 banks, credit unions and online lenders that offer student loans and student loan refinancing. These include the top lenders by market share and online search volume, as well as some lenders that serve specialty or nontraditional markets.
We considered and scored more than 60 features and data points for each financial institution in the categories of loan flexibility, affordability, transparency, customer experience and variety of borrowers served.
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 methodology for student loans and our editorial guidelines.