Navy Federal Credit Union Student Loans and Refinancing Review

3.5 _/5

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Private Student Loans

• Navy Federal partners with LendKey to provide student loan products
• No application or origination fees and no prepayment penalties
• Offers career assistance benefits, such as online job search training and a resume builder

• Eligibility requires credit union membership, U.S. citizenship, and current student status at an eligible school
• Student loan applicants with less than $15,000 income might need a cosigner

Rates (APR)	Starting at 5.50%
Loan amounts	Up to the school-certified cost of attendance
Repayment terms	5 or 10 years

Refinance Student LoansView Rates

• Refinance parent loans even before the student has graduated
• Combine multiple students’ loans into one

• Eligibility requires credit union membership and U.S. citizenship
• Refinance applicants making less than $24,000 might need a cosigner

Rates (APR)	Starting at 4.85%
Repayment terms	5, 10, or 15 years

If you’re considering Navy Federal Credit Union (NFCU) for student loans or refinancing, you’ll find flexible options tailored for students, graduates, and parents. Partnering with LendKey, NFCU offers private student loans without application fees or prepayment penalties, along with career assistance benefits, including job search training. Refinancing options also allow borrowers to consolidate multiple loans, even before graduation.

To be eligible, borrowers must be credit union members, which is available to active and retired military members, veterans, and immediate family members of those who have served. Keep reading to see whether NFCU’s student loan products are a good fit for your needs.

Navy Federal Credit Union’s private student loans

Here’s how NFCU’s student loans work.

Rates, terms, and fees

Navy Federal Credit Union offers student loans with competitive rates and the distinct benefit of a career assistance program. This program is free to students with loans through Navy Federal Credit Union and offers online job search training, unique job-finding strategies, and tools including a resume builder. 

Feature	Details
Fixed rates (APR)	Starting at 5.50 with autopay
Variable rates (APR)	Starting at 7.79% with autopay
Rate discounts	0.25% for autopay
Loan amounts	Up to the school-certified cost of attendance
Grace period	6 months
Cosigner release	After 24 consecutive, on-time principal and interest payments
Fees	No application or origination fees, and no prepayment penalties
Unique features	Career assistance program offering online job search training, job-finding strategies, job-tracking dashboard, and resume builder

What are the eligibility requirements?

First, you must be a member of Navy Federal Credit Union, which is only available to members of the military and their family members.

Of Navy Federal’s student loan borrowers, 90% have a cosigner, making it a requirement for most. A cosigner can increase the likelihood of approval and potentially lower the interest rate.

Borrowers must be enrolled full-time at an eligible college or university.

Requirement	Details
Credit union membership	Active duty, retired, and veterans, immediate family members of those who’ve served, Department of Defense civilians, or minors with a parent, grandparent, or guardian who are members
Citizenship	U.S. citizen or legal resident
State of residence	All 50 states
Minimum age	Legal adult in the state in which you reside (age 18 in most states)
Enrolled school	Must be enrolled at an eligible college or university. You can find the list of eligible schools on the first page of the application
Enrollment status	Full-time
Minimum income	$15,000 per year

How does repayment work?

Navy Federal Credit Union offers two in-school repayment options for student loans: a flat $25 monthly payment, which it calls the “proactive plan,” or an interest-only payment, in which you pay only the interest accrued on your loan. This requirement allows you to reduce the total owed before you leave school. 

Navy Federal also offers two repayment terms: five or 10 years. The shorter term can lead to higher monthly payments, but the total interest paid over the life of the loan will be lower, and a longer term means smaller monthly payments but more interest paid in total.

Requirement	Details
In-school repayment plans	Proactive ($25 per month) or interest-only
Repayment terms	5 or 10 years

Navy Federal Credit Union’s student and parent refinance loans

Navy Federal Credit Union provides two types of refinance products: a student loan refinance and a parent loan refinance. They share many features, but we’ll also outline the differences. 

Rates, terms, and fees

Navy Federal’s rates and terms are competitive, with no additional fees. 

Feature	Details
Fixed rates (APR)	Start at 4.85% with autopay
Variable rates (APR)	Start at 6.48% with autopay
Rate discounts	0.25% for autopay
Repayment terms	5-, 10-, or 15-year
Cosigner release	After 12 on-time full payments
Fees	No application or origination fees, and no prepayment penalties

These are unique features of Navy Federal’s refinance loans:

• Student borrowers gain eligibility for career assistance, online job search training, suggestions for finding jobs not yet open to the public, a job-tracking dashboard, and online tools and exercises, including a resume builder.
• Refinance parent loans before your child graduates.
• Parent loans can combine loans for multiple children.

What are the eligibility requirements?

To refinance student loans with Navy Federal Credit Union, you must be a member. For refinance customers, the cosigner release period is shorter than in-school student loans—just 12 on-time payments are required.

Requirement	Details
Citizenship	U.S. citizen or legal resident
State of residence	All 50 states
Graduation status	Graduate of an eligible school (excluding parent refinance loans)
Minimum age	Legal adult in the state where you reside (age 18 in most states)
Minimum income	A monthly income of at least $2,000 and an established credit history, or an income of at least $100 a month and a creditworthy cosigner whose monthly income is at least $2,000

How does repayment work?

Navy Federal Credit Union offers those refinancing student loans a choice of five-, 10- or 15-year terms. Longer terms will result in lower monthly payments but a higher total cost due to interest over time.

Navy Federal Credit Union alternatives

If Navy Federal Credit Union’s student loan options don’t meet your needs, consider other lenders that might align better with your financial situation or educational goals.

Before deciding, it’s wise to compare lenders based on interest rates, repayment flexibility, fees, and customer service. The table below highlights our top-rated private student loan and refinance companies, each with unique features that could be an excellent fit depending on your specific needs.

Is Navy Federal Credit Union a reputable lender?

When considering a lender for refinancing student loans, understanding its reputation and how it treats its customers is crucial. Here’s a snapshot of Navy Federal Credit Union’s customer reviews and ratings:

Source	Customer rating	Number of reviews
Trustpilot	4.5/5	32,342
Better Business Bureau (BBB)	1.21/5	342
Google	2.7/5	44

On the consumer review platform Trustpilot, which features far more reviewers than the other sites we consulted, borrowers note the easy process and competitive rates. However, a few complaints regarding customer service have surfaced. (These aren’t always specific to student loans.)

Its reviews are much lower on BBB, with 2,039 complaints closed in the last three years. Again, the comments aren’t specific to student loans, but it’s worth keeping in mind, especially if you value an excellent customer service experience.

Does Navy Federal Credit Union have a customer service team?

Navy Federal partners with LendKey to handle student loan applications and manage private student loans, student refinance loans, and parent refinance loans. When you apply for your loan, you’ll fill out your application and create an account on a co-branded LendKey/Navy Federal website. You can expect to get emails from LendKey throughout the process. 

To contact Navy Federal and LendKey about your student loans, you can:

• Email: [email protected]
• Call: 1-877-304-9302, Monday through Friday, 8 a.m. – 8 p.m. Eastern

How to apply for a Navy Federal Credit Union student loan

Here’s how to apply for a student loan with Navy Federal Credit Union:

1. Add a cosigner, if needed

If you don’t have an income of at least $15,000 a year or you have a limited credit history (typically less than 36 months), adding a creditworthy cosigner may boost your approval chances.

2. Prepare your application

Double-check that you meet the eligibility requirements for a Navy Federal Credit Union student or refinance loan, including being a member of the credit union, being a current student or graduate of an eligible school (unless you’re a parent), and meeting the citizenship and residency requirements.

Once that’s confirmed, gather your personal and academic information required to complete your application. This includes information such as:

• Contact information
• School
• Expected graduation date
• Academic start and end periods
• Class standing
• GPA
• Major
• Enrollment status

3. Provide final documentation

Your or your cosigner may need to submit additional documents to verify your identity, show proof of income, and validate tuition and the amount of financial assistance requested.

4. Complete final steps following approval

Once approved, you must sign your loan agreement. Navy Federal Credit Union will then send a loan request to your school for certification.

Receiving a preliminary decision typically takes five minutes or less online. However, you’ll need to wait for your school to complete the certification process, which can take four to six weeks. Once certified, Navy Federal disburses funds to your school.

How to apply for a Navy Federal Credit Union refinance loan

Applying for a refinance loan with Navy Federal Credit Union is similar to applying for a student loan. Below are the steps.

1. Determine eligibility

To apply for a refinance loan with Navy Federal Credit Union, you should be:

• A member of Navy Federal Credit Union
• A U.S. citizen or permanent resident
• A legal adult in the state in which you reside (age 18 in most states)
• The borrower of the loans you’re looking to refinance
• Have a minimum annual income of $24,000

2. Gather relevant loan and academic information

You must provide details about the student loans you are looking to refinance. This includes the loan servicer’s name, the outstanding balance, your monthly payment, the degrees you earned, and the school you attended.

3. Consider a cosigner

If you do not meet the income requirement, consider adding a creditworthy cosigner to your application. A cosigner can increase your chances of approval and help lower your interest rate.

4. Complete the application

Submit your application online, providing the required personal, academic, and financial information. Upon approval, Navy Federal Credit Union will pay off your loans to your current servicers, consolidating them into a single new loan.

The online application process for a refinance loan takes a few minutes, and you can expect a decision within a few weeks. Upon approval, it may take another few weeks to pay off your refinanced loans and establish the new loan.

FAQ

Does Navy Federal Credit Union offer private or federal student loans? 

Navy Federal Credit Union offers private student loans and refinancing. It doesn’t deal with federal student loans, which are administered through the U.S. Department of Education.

Does applying with Navy Federal Credit Union hurt my credit? 

Yes, applying for a student loan with Navy Federal Credit Union involves a hard credit inquiry, which can lower your credit score. However, the impact is typically minimal and temporary.

Does Navy Federal Credit Union require a cosigner? 

A cosigner isn’t required for a Navy Federal Credit Union student loan, but in certain circumstances, the lender recommends one. If your income is below $15,000 a year or if you have a limited credit history, a creditworthy cosigner could improve your chances of approval and help you secure a lower interest rate.

Does Navy Federal Credit Union allow cosigners to be released? 

Yes, Navy Federal Credit Union allows for cosigner release. After making 24 consecutive on-time payments, a borrower can request to have their cosigner released from the loan. For refinance loan borrowers, cosigners can be released after making 12 consecutive on-time payments.

What can Navy Federal Credit Union student loans be used for? 

You can use Navy Federal Credit Union student loans for a variety of educational expenses. This includes tuition, room and board, books, and other education-related costs. NFCU sends funds to the school, which applies them toward these expenses.

How long does it take to get funds from Navy Federal Credit Union? 

The lender provides a preliminary decision within minutes of the application but doesn’t disburse the funds until the school completes its certification process, which can take four to six weeks.

Is Navy Federal Credit Union responsible for paying off my current student loans? 

If you’re refinancing with Navy Federal Credit Union, it’s the lender’s responsibility to pay off your student loans. After approval and receiving the signed agreement, Navy Federal will send the loan amount to your current loan servicer.

Can Navy Federal Credit Union student loans be forgiven? 

No, Navy Federal Credit Union doesn’t offer loan forgiveness for its private student loans.

How we rated Navy Federal Credit Union

We designed LendEDU’s editorial rating system to help readers find companies that offer the best student loans. Our system awards higher ratings to companies with affordable solutions, positive customer reviews, and online transparency of benefits and terms.

We compared Navy Federal to several student loan lenders, using hundreds of data points from company websites, public disclosures, customer reviews, and direct communication with company representatives. We weighted, scored, and combined each factor to produce a final editorial rating. This rating is expressed on a scale from 1 to 5, with 5 being the highest possible score. Our take is represented in our rating, recapped below.

Product	Rating
Navy Federal Credit Union student loan refinance and student loans	3.5/5