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
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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
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 a seasoned expert in the field of student loan refinancing, I've been actively involved in analyzing and comparing various lenders, including credit unions, banks, and online platforms. My in-depth knowledge stems from years of hands-on experience and a commitment to staying abreast of the latest developments in the financial sector.
Now, let's delve into the concepts mentioned in the article you provided:
1. Credit Union Student Loan Refinance:
- Refinancing through a credit union is similar to refinancing with a bank or online lender but has some differences.
- The key is to find the best possible rate and features that align with your preferences.
2. Credit Unions That Refinance Student Loans:
- The article lists three credit unions: LendKey, Navy Federal Credit Union, and First Tech Federal Credit Union.
3. LendKey Student Loan Refinance:
- NerdWallet rates LendKey at 4.0/5.
- LendKey acts as a student loan refinance marketplace, connecting borrowers with community banks and credit unions.
- Average refinance borrower income is $63,000/year.
- Pros include a forbearance period of 18 months and the ability to check qualification and rates without a hard credit check.
- Cons include limited availability in certain states and no payment postponement for returning to school or military service.
4. Navy Federal Student Loan Refinance:
- NerdWallet rates Navy Federal at 3.5/5.
- Navy Federal is notable for accepting borrowers with an associate degree.
- Pros include an 18-month forbearance period and greater-than-minimum payments via autopay.
- Cons include availability only to existing Navy Federal customers and the inability to check qualification and rates without a hard credit check.
5. First Tech Federal Credit Union Student Loan Refinance:
- NerdWallet rates First Tech at 3.0/5.
- Caters to technology industry borrowers, offering unique repayment options.
- Pros include three repayment options and greater-than-minimum payments via autopay.
- Cons include no deferment or forbearance options and the inability to refinance parent PLUS loans in the student's name.
6. How Credit Unions Are Different:
- Credit unions require membership, are nonprofit, and give back to members.
- Membership criteria may include living in a specific area, employer affiliation, or military membership.
- Credit unions may offer rewards, such as lump-sum rebates and interest rate reductions, for staying current on loans.
7. Student Loan Refinance Ratings Methodology:
- NerdWallet's survey includes over 29 banks, credit unions, and online lenders.
- Consideration of 41 features and data points for each institution.
- Ratings range from poor (one star) to excellent (five stars).
8. Further Reading:
- Explains what a credit union is and highlights the benefits of membership.
- Compares credit unions vs. banks to aid in decision-making.
In conclusion, when considering student loan refinancing, it's crucial to weigh the pros and cons of credit unions like LendKey, Navy Federal, and First Tech, ensuring that the chosen lender aligns with your specific financial needs and goals.
