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Not every credit union is right for all borrowers — especially since they’re typically only available to certain geographic areas or employees of a specific organization. On top of this, not all offer student loan products.
Here are five popular choices for refinancing your student debt.
PennFed Credit Union offers one of the most streamlined refinancing options for both student and parent borrowers. You can apply online even if you’re not a member using the online platform Purefy, which also speeds up the application process. It also services its own loans, meaning you won’t have to deal with another company when making repayments.
Unlike with PenFed’s other products, you don’t need to be a member of the military to become a member for refinancing. The downside is you need a cosigner if you make less than $42,000 a year. You also need a strong credit score to qualify — even with a cosigner — and borrowers who never completed their degree aren’t eligible.
Like PenFed, Alliant uses another company to process its student loan refinancing applications, which makes for a faster, more user-friendly process. Plus, it has a longer range of terms and more relaxed requirements than some other credit unions.
But it only offers one repayment plan and is only available to borrowers who’ve worked with the same employer for the past six months.
Like the previous two options, this credit union also uses a third party to handle the application process. It could be a good choice if you have over $100,000 in student debt — some credit unions have lower caps — or if you’d like to choose between fixed or variable rates.
However, you must either be a member of the US Armed Forces, Department of Defense or related to a member to join — which you must do during the application process.
First Tech offers a more traditional credit union loan than some of these other lenders. While it processes its own application, it’s relatively user friendly. It also services its own loans, so you won’t have to deal with a third party — making this a good choice if you’d prefer to keep everything in one place. Plus, you can become a member during the application process.
However, you might want to stay away from this option if you plan on going back to school. It doesn’t currently offer in-school deferment.
While not technically a credit union, this online platform can help you find a local credit union that offers student loan refinancing that you’re eligible for. It works with over 300 community lenders to help you prequalify with multiple student loan refinancing providers so you can compare rates and terms. You can also use this tool to find offers from small banks.
The student loan refinancing process varies depending on the credit union. Before you get started, first make sure you’re eligible for a loan. If you are, you can typically apply online — even if it uses a third party to process the application.
Unlike with other types of lenders, there are two types of eligibility requirements you have to meet:
Start by checking the credit union’s website. If it’s not clear what the membership or refinancing requirements are, stop by a branch or call customer service to learn more.
Refinancing student loans with a credit union isn’t the right choice for everyone. You might want to consider it in the following situations:
From its softer requirements to its cosigner release option, here are a few perks of refinancing with a credit union:
Consider these potential drawbacks before refinancing your student loans with a credit union:
Still not sure if a credit union is right for you? Let’s see how they compare to other student loan refinancing providers:
| Feature | Bank | Credit union | Online lender |
|---|---|---|---|
| Application process | Apply online or in person | Apply online or in person — but need to become a member beforehand or during the application process | Apply online |
| Credit requirements | Good credit typically required | Most credit types accepted with a cosigner | Most credit types accepted with a cosigner |
| Cosigners | Typically allowed — though not always with cosigner release | Typically allowed — with cosigner release | Typically allowed — with cosigner release |
| Availability | Available in all or most states | Often available in a few states or employees of a specific company | Available in all or most states |
| Maximum amount | Typically $100,000 to $300,000 | Typically $100,000 to $300,000 | Total student loan debt load |
If you’re refinancing to save money, you might also want to consider these other options:
Refinancing with a credit union is a bigger step than refinancing with another lender. You have to become a member to apply, which might not be open to everyone. But it can give you access to more competitive rates and terms than you currently have, as well as offer more personalized service than an online lender.
Read about your other student loan refinancing options in our guide.
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