4 credit unions that refinance student loans

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Refinancing your student loans can provide you with tremendous benefits while you work to pay them off. Depending on the situation, you might benefit from lower interest rates and monthly payments or just get more flexibility with your repayment schedule.

While some of the best student loan refinancing companies are online lenders, you can also refinance your college debt with banks and credit unions. Here’s what you need to know about some of the best student loan refinancing options from credit unions.

Refinancing Your Student Loans: Credit Unions vs. Other Lenders

Choosing a lender to help you refinance your student loans is an important decision. Not only will this impact your interest rate, it could also affect your repayment term, fees, and other aspects of the experience.

Credit unions can offer you benefits that other lenders might not, but they can also have some drawbacks to consider.

Benefits of refinancing with a credit union

  • Credit unions generally charge lower interest rates and fees than traditional banks.
  • Credit unions traditionally serve specific communities and may have a better understanding of their needs, whether it is a local community or a national one like the military.
  • Credit unions can provide better service because they have smaller customers.
  • You can often get discounts on your refinance loan if you already have a financial product managed by the credit union.

Disadvantages of refinancing with a credit union

  • Credit unions may have lower limits on the amount you can refinance.
  • Credit unions may have less flexible repayment options.
  • You may need to be a member of the credit union before you can apply.
  • Refinance loans from credit unions are generally more expensive than those from online lenders.

4 credit unions that refinance student loans

If you want to refinance a student loan from a credit union, it’s best to start your research with a local credit union, but don’t stop there. One of these four credit unions might be a good choice for refinancing a student loan.

First Tech Federal Credit Union

With First Tech, you can refinance federal or private student loans, including parent PLUS loans. The lender offers loans ranging from $ 5,000 to $ 500,000, depending on the type of loan you choose and your repayment term.

The repayment options are five, seven, 10, and 15 years, and you can choose from three loan options:

  • Fixed term loan: It is a traditional loan with a fixed interest rate and fixed monthly payments.
  • Balloon loan: With this loan, you will start with low monthly payments and then make a lump sum payment after 15 years.
  • Interest-only loan: You will only pay the interest on this loan for one to ten years. After that, your monthly payments will increase over time.

Balloon loan and interest-only loan options are marketed to professionals who expect to earn much more in the future, but come with higher interest rates and more complicated repayment terms.

Benefits include a 0.25% auto loan rebate if you apply within 30 days of refinancing your student loans and 10,000 bonus points if you open a First Tech Choice Rewards World Mastercard credit card.

To join First Tech, you must have a family member who is already a member of First Tech, work for a partner company, work or live in Lane County, Oregon, or belong to the Computer History Museum or the Financial Fitness Association. .

Federal Navy Credit Union

The Navy Federal Credit Union is unique in that it allows only qualified members of the military community to join. If you qualify based on these requirements, you can refinance federal or private student loans, including parent loans.

You can borrow as little as $ 7,500 and up to $ 125,000 for undergraduate debt and $ 175,000 for graduate debt. The repayment terms are five, 10 and 15 years. Interest rates are competitive and you can get a 0.25% discount if you set up automatic payments.

If you are a parent, you can combine student loans that you have taken out for more than one child into one refinance loan. And if you need a co-signer to get approval, you’ll have the option to remove it after you’ve made 12 consecutive payments on time and met certain credit conditions.

To qualify, Navy Federal requires a monthly income of $ 2,000 or more and an established credit history of 21 months or more. If you have a co-signer, your income can be as low as $ 100 as long as theirs is $ 2,000 per month or more.

PenFed Credit Union

Pentagon Federal Credit Union offers nationwide student loan refinancing to college graduates and their parents. The lender is unique in that it allows spouses to combine their student loans into one new loan. You can borrow between $ 7,500 and $ 500,000, with repayment terms of five, eight, 12 and 15 years.

Unlike other credit unions that offer student loans, PenFed is transparent about its credit requirements. The lender has a minimum credit score of 670 and a minimum annual income of $ 25,000.

If you are borrowing up to $ 150,000 and your credit score is below 676 or your annual income is below $ 42,000, you will need a co-signer. Your co-signer will need a credit score of at least 720 and an annual income of at least $ 42,000.

If you are borrowing more than $ 150,000 and your credit score is below 725 or your annual income is below $ 50,000, you will also need a co-signer. In this case, your co-signer will need a credit score of 725 or higher and an annual income of at least $ 50,000.

If you need a co-signer, you can request to release them from the loan after you have made 12 consecutive payments on time and meet certain credit criteria.

Credit union services

Service Credit Union offers student loan refinancing to college graduates and their parents, with the option for parents to transfer student loan debt to their child

Loan amounts range from $ 5,000 to $ 150,000, and you can pay it back over five, 10 or 15 years. Like Navy Federal, Service Credit Union primarily serves the military community, but you can join by becoming a member of the American Consumer Council or by working for one of Service Credit Union’s selected employer groups.

The lender does not provide information on the credit requirements for obtaining approval to refinance your student debt, although you must have at least a bachelor’s degree.

How To Find The Best Credit Union To Refinance Your Student Loans

As with any other financial decision, it’s important to take your time and shop around to make sure you find the best deal. Compare these options with other credit unions in your area that offer student loan refinancing. You can also consider using a platform like LendKey, which connects borrowers with credit unions and community banks.

If you are not married to the idea of ​​refinancing only with a credit union, you may also want to consider comparing rates and other terms with lenders and banks online. But if you’d rather work with a smaller organization, stick with credit unions.

If you have a loved one who is willing to co-sign a loan application with you, this can help lower your interest rates. Unfortunately, not all credit unions allow you to prequalify with a simple credit check, so you may need to go through the entire application process to be able to compare rates and terms.

Next steps

Refinancing your student loans can save you money and give you additional flexibility. Going through a credit union could give you a better experience as a customer, and in some cases, you may be able to get a lower interest rate. But be sure to keep the potential limitations in mind.

Whether you decide to refinance your student loans with a credit union or some other type of lender, the important thing is to be proactive about paying off your student loan and the different ways you can save money. money along the way.

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