Credit Unions to Refinance Student Loans

Some credit unions offer student loan refinancing in addition to their traditional banking services, providing eligible borrowers with the potential to save money by securing lower interest rates or avoiding certain fees. Because credit unions operate with a member-first approach rather than focusing on profits, they can often offer more competitive rates than traditional lenders.

Credit unions have lower overhead costs, so they can pass these savings on to their members through lower loan rates, including student loan refinancing. If you’re considering refinancing your student loans, exploring credit union options could be a smart move. Comparing the best credit union refinancing options will help you determine whether this route is right for you.

Credit union	Availability
Credible*	Varies by lender
LendKey*	Varies by lender
Navy Federal	Active duty, retired military, veterans, Department of Defense civilians, and family members in all 50 states

3 credit unions to refinance student loans

Our team looked into several credit unions that refinance student loans to find the ones that offered unique features and benefits to borrowers. Here’s our list. 

Best for comparison shopping

4.8 _/5

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Why it’s one of the best

Credible is not a credit union; it’s a marketplace for comparison shopping for financial products. We included it in this list because it partners with credit unions, so borrowers can compare credit union and non-credit union loan offers in one location. 

By filling out one application, you can compare offers from multiple lenders, making it easier to find the best rates and terms without affecting your credit score. This platform is useful to shop around and explore different loan options all in one place. Credible allows you to access competitive interest rates and flexible repayment terms based on your needs and financial situation.

• Compare prequalified rates
• User-friendly platform
• No fees

Loan details

Rates (APR)	5.24% – 12.43%
Loan amounts	$1,000 – 100% of outstanding balance
Repayment terms	5, 7, 10, or 15 years

LendKey

4.2 _/5

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Why it’s one of the best

LendKey operates by connecting borrowers with various credit unions for student loan refinancing. This approach allows for a range of options and tailored solutions backed by the efficiency of a technology-driven platform. 

LendKey is ideal for those seeking the community feel of a credit union combined with the convenience of an online service.

• Partners with more than 300 credit unions and community banks
• Soft credit check for prequalification
• Rewards program offers $200 bonus for successful referrals

Loan details

Rates (APR)	Starting at 4.39%
Loan amounts	$5,000 – $300,000 (Minimum for residents of Arizona is $10,001; $15,001 for Connecticut residents, and $6,000 for Massachusetts residents)
Repayment terms	5, 7, 10, 15, or 20 years

Navy Federal Credit Union

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Why it’s one of the best

Navy Federal Credit Union is an excellent option for military personnel. It offers standard refinance student loans and parent refinance student loans.

While its terms are competitive, its member-focused approach truly stands out. It offers a career assistance program to support borrowers during their careers.

• No application or origination fees and no prepayment penalties
• Offers career assistance benefits, such as online job search training and a resume builder
• Refinance parent loans even before the student has graduated, and combine multiple students’ loans into one

Loan details

Rates (APR)	Starting at 4.60%
Loan amounts	Not disclosed
Repayment terms	5, 10, or 15 years

Our expert’s advice

Eric Kirste

CFP®

You usually must be a credit union member to qualify for a loan. Some credit unions may allow you to obtain membership while applying for a loan, which often requires opening up a checking and savings account.

Pros and cons of student loan refinance with credit unions 

Opting for a credit union student loan refinance has some upsides, but there are a few drawbacks to consider as well. Looking at both sides can help you decide if choosing a credit union over a traditional bank or online lender makes sense. 

Pros

• Lower rates

  You may qualify for lower student loan refinance rates than you would elsewhere.

• Open to more borrowers

  A credit union may be more willing to work with you if you have bad or no credit. 

• Larger refinance amounts 

  You might be able to refinance a larger amount of student loan debt. 

• More lenient cosigner release

  If you need a cosigner to get approved, a credit union may be more lenient about releasing them from the loan down the line.  

• Member benefits

  Some credit unions offer special perks to members, such as discounts for partner businesses, discounted loan rates, or cash rewards when you open a new account. 

Cons

• Membership required

  You’ll first need to meet the membership requirements to join a credit union to apply for a refinance loan

• Cosigner may be required 

  Some credit unions may require you to have a cosigner if you don’t meet minimum credit score requirements. 

• Slower funding speed

  Funding speed after approval may be slower at a credit union than it is at a bank or online refinance lender. 

Banks, by comparison, don’t require you to meet membership requirements to apply for a loan. You may not even need to have an account at the bank. Online lenders, meanwhile, can offer competitive student loan refinance rates with fast funding approval and funding. 

Not everyone will qualify for a loan—regardless if its a credit union or a bank.

Eric Kirste

CFP®

How to find the best credit union to refinance student loans 

You may look at national and local options when comparing credit unions for student loan refinancing. National credit unions may have broader criteria for membership, making it easier to join and apply for student loan refinancing. You might prefer a local credit union, however, if you’d like to be able to visit a nearby branch. 

Finding local or regional credit unions that offer student loan refinancing may be as simple as doing a short online search. You can try searching for ‘credit union near me’ or ‘credit union student loan refinance near me,’ then spend some time researching the different options that come up. 

Here are some helpful items to consider when comparing student loan refinancing at credit unions:

• Minimum and maximum loan amounts available
• Interest rates and whether rates are fixed or variable
• Loan fees, if applicable
• Available refinancing terms
• Credit union membership requirements
• Loan management (i.e., online banking, mobile banking, branches, etc.)
• Membership perks or benefits
• Customer service

The criteria for joining can vary from one credit union to another. Most often, you’ll need to live, work, attend school, or worship in a particular geographic area or belong to a partner organization. Some credit unions also base membership on military affiliation. 

How to refinance student loans with a credit union 

Refinancing student loans with a credit union is similar to refinancing with a bank or online lender. If you’ve never refinanced student loans before, here’s a look at how it typically works. 

1. Choose a lender. If you haven’t compared credit union refinancing options yet, do that first. You can use the credit union student loan refinance picks we selected earlier as a starting point for checking rates and getting prequalified.  
2. Organize your documents. Getting your paperwork together beforehand can save time when you’re ready to apply for student loan refinancing. You’ll need the most recent statements for each loan you want to refinance, along with bank statements, pay stubs, and a photo ID.
3. Open your credit union account. You’ll typically need to open a savings account with a credit union before you can apply for loans. The minimum deposit might be around $5, and you’ll need a photo ID and Social Security number or other tax identification number for the paperwork. You’ll also need to share your address, phone number, and date of birth. 
4. Complete the application. Once you’ve joined the credit union, you must fill out the lender’s application for student loan refinancing. Whether you do this online or in person depends on which credit union you work with. If you’re applying online, the lender should walk you through how to upload any documents you’re required to provide.
5. Provide your cosigner’s information if that applies. If you’re applying for student loan refinancing with a cosigner, they’ll need to share some details with the credit union as well. That includes their name, date of birth, and Social Security number, which is required for the credit check.  
6. Apply and wait for a decision. If you’ve completed the application and double-checked everything is correct, you can submit it to the lender. How quickly you get a decision can depend on the credit union, but one to seven business days is fairly common.
7. Sign the loan agreement. The final step is signing off on the loan paperwork. Remember that you’ll need to keep up with the payments to the old loan until the credit union has paid it off. Otherwise, you risk getting hit with late fees and dinging your credit score if the old loan goes unpaid. 

Learn more about how to refinance student loans to decide whether it’s right for you.

FAQ

Do I need to be a member of a credit union to refinance my student loans with one?

Yes, you typically need to be a member of the credit union to refinance your student loans with them. Membership requirements vary by credit union and can include factors such as living in a specific geographic area, working in a certain profession, or being affiliated with certain organizations.

However, many credit unions have open membership policies, allowing anyone to join by making a small deposit or paying a one-time fee.

Can I refinance both federal and private student loans with a credit union?

Yes, most credit unions allow you to refinance federal and private student loans. However, it’s important to note that refinancing federal student loans with a credit union (or any private lender) means you will lose federal loan benefits, such as income-driven repayment plans, loan forgiveness programs, and deferment or forbearance options.

Before refinancing, be sure you understand the implications of converting federal loans into private loans.

What credit score do I need to qualify for student loan refinancing with a credit union?

The credit score required to qualify for refinancing with a credit union can vary, but most credit unions look for a minimum credit score in the mid-600s. Some credit unions may also consider other factors such as your income, employment history, and debt-to-income ratio. If your credit score is lower, you might still qualify by applying with a cosigner who has strong credit.

Recap of credit unions to refinance student loans

Credit union	Availability
Credible*	Varies by lender
LendKey*	Varies by lender
Navy Federal	Active duty, retired military, veterans, Department of Defense civilians, and family members in all 50 states