Many or all companies we feature compensate us. Compensation and editorial research influence how products appear on a page. Student Loans Credit Union Student Loans Updated Jul 30, 2024 9-min read Expert Approved Expert Approved This article has been reviewed by a Certified Financial Planner™ for accuracy. Written by Zina Kumok Written by Zina Kumok Expertise: Student loans, credit scores, personal loans, banking, education planning Zina Kumok is a personal finance writer dedicated to explaining complex financial topics so real people can understand them. As a former newspaper reporter, she has covered everything from murder trials to the Final Four. Learn more about Zina Kumok Reviewed by Erin Kinkade, CFP® Reviewed by Erin Kinkade, CFP® Expertise: Insurance planning, education planning, retirement planning, investment planning, military benefits, behavioral finance Erin Kinkade, CFP®, ChFC®, works as a financial planner at AAFMAA Wealth Management & Trust. Erin prepares comprehensive financial plans for military veterans and their families. Learn more about Erin Kinkade, CFP® Credit unions are a terrific option for student loan borrowers looking for a personal touch and emphasis on customer service. While these student loans are still private, meaning they lack the protections of federal student loans, many credit unions offer competitive interest rates and lower fees than national and online lenders. But which credit unions stand out from the pack, and how do their student loan offerings compare to traditional banks and online lenders? We’ll answer those questions below. Credit unionRates (APR)Who’s eligible?Credible*3.79% – 17.99%U.S. citizens & permanent residents enrolled at least part-timeLendKey*4.89% – 10.39%U.S. citizens & permanent residents enrolled at least half-timeNavy Federal Credit UnionStarting at 5.50%Current & former military members & immediate familyThrivent Federal Credit UnionStarting at 5.23%Thrivent members or those affiliated w/ one of several church bodies *Not a credit union, but a company that connects borrowers with several lenders, including credit unions. Compare credit union student loans Taking out a student loan from a credit union is like taking out a student loan from a bank or online lender. Before you finalize the loan, you should compare interest rates, repayment terms, cosigner release programs, forbearance programs, and other features to ensure you’re taking out the best loan for your needs. Make sure you understand the loan terms and whether you must make payments while in school. Credible Best marketplace 4.6 /5 LendEDU Rating View Rates Why it’s one of the best Credible is not a credit union itself, but it partners with various lenders, including credit unions, to offer competitive student loan options. As a marketplace, Credible allows borrowers to compare rates and terms from multiple lenders with a single application, making it easier to find the best fit. The platform’s user-friendly interface and comprehensive loan comparison tools help students and their families make informed decisions. Credible’s partnerships with credit unions mean that borrowers can access the personalized service and often lower rates many credit unions offer, all within the convenience of an online marketplace. Compare multiple lenders with one application in 3 minutes Student loans for undergraduate and graduate degrees Checking your prequalified rates doesn’t affect your credit score No fees to see your results Only shows rates from its partner lenders Loan details Rates (APR)3.79% – 17.99%Loan amounts$1,000 – 100% of certified costsRepayment terms5, 7, 8, 10, 12, 15, or 20 years LendKey 4.2 /5 LendEDU Rating View Rates Why it’s one of the best Similar to Credible, LendKey connects borrowers with credit unions and community banks to find more affordable terms on student loans. The entire application process is handled through LendKey’s website so you won’t have to submit applications across multiple websites. You can check your rates with LendKey without affecting your credit. When you apply for a loan through LendKey, it might match you with several credit unions. No application fees. Partners with more than 300 credit unions and community banks, prioritizing customer service. Soft credit check for prequalification based on borrower-provided information. Rewards program offers $200 bonus for successful referrals. Not available in every state Just 3 repayment terms Loan details Rates (APR)4.39% – 10.39%Loan amounts$2,000 – 100% of certified costsRepayment terms5, 10, or 15 years Navy Federal Credit Union 3.5 /5 LendEDU Rating View Rates Why it’s one of the best Navy Federal Credit Union is a credit union for service members, Department of Defense employees, and their immediate families. Only those who meet those requirements can become members and take out a student loan. It offers several benefits for those who qualify, including a six-month grace period after graduation, access to an online job search training system for all student loan borrowers, and a 12-month forbearance program. 6-month grace period after graduation 12-month forbearance All student loans come with access to an online job search training system Stringent membership requirements Only two repayment terms Loan details Rates (APR)Starting at 5.50%Loan amounts$2,000 – 100% of certified costsRepayment terms5 or 10 years Thrivent Federal Credit Union View Rates Why it’s one of the best Thrivent FCU is a faith-based credit union. To be eligible for membership, you must be affiliated with one of several Lutheran churches or pay a $19.95 fee to join the credit union. Available for undergraduates and graduates No application, origination, or prepayment penalties Cosigner doesn’t need to be a Thrivent member Limited information available online Loan details Rates (APR)Starting at 4.22%Loan amountsUp to $80,000Repayment termsUp to 15 years How do credit union student loans compare to banks and online lenders? Credit unions are member-owned, nonprofit organizations, whereas traditional banks and online lenders operate as for-profit companies. Because credit unions are not focused on maximizing profits, they often offer lower fees and interest rates than banks. To access credit union services, you must become a member, which can sometimes involve meeting specific eligibility criteria. For instance, some credit unions are exclusive to military service members and their families, while regional credit unions may serve only local residents. However, many credit unions have relaxed membership requirements and are open to a broader audience. When considering a credit union student loan, weigh the potential benefits, such as lower costs, against any membership requirements to determine whether it’s the right fit for financing your education. Credit union student loan advantagesCredit union student loan disadvantagesLower interest ratesLimited eligibility Improved customer experience Limited physical locationsCommunity focus Benefits of a credit union for student loans Borrowers may prefer taking out a student loan from a credit union due to their consumer-first approach and commitment to saving money. Here are reasons to choose a credit union for your student loans. Lower interest rates Credit unions typically offer lower interest rates than for-profit banks or online lenders. The interest rate you qualify for has a massive influence on the total interest paid over the life of the loan and the monthly payment. Lower interest rates mean less interest paid overall and more manageable monthly payments. Improved customer experience Credit unions often emphasize customer service. While they may have fewer mobile apps or customer service chat options, they usually provide local customer service representatives, resulting in less time spent on the phone and more personalized service. Community focus Credit unions often have a strong connection to their communities. Some focus on serving specific groups, such as people of color, teachers, or healthcare workers. If you value a community-oriented lending experience, look for a credit union near you that offers student loans. Disadvantages of credit union student loans While credit union student loans can offer lower interest rates and better customer service, these are several downsides to consider: Limited eligibility Some credit unions have strict membership criteria. For example, Navy Federal only serves specific groups, and if you don’t meet its requirements, you won’t qualify for a student loan. However, many credit unions have more lenient eligibility requirements, such as maintaining a small balance in a savings account or paying a one-time fee. Always check the membership criteria and ensure you qualify before applying. Limited physical locations Credit unions typically have fewer branches than national banks, making in-person visits less convenient. While most business can be conducted online, a larger bank may be a better option if you prefer in-person service. Is a credit union student loan right for you? A credit union loan is still a private student loan, so it doesn’t offer the same benefits as federal student loans. It’s important to max out your federal student loans before considering a credit union student loan. If excellent customer service is important to you and you’re already a credit union member, a credit union student loan could be suitable. Be sure to shop around and compare different lenders’ interest rates, repayment terms, forbearance options, and other conditions to find the best option for your needs. FAQ What are the main differences between credit union student loans and federal student loans? Credit union student loans are private loans, meaning they don’t offer the same benefits as federal student loans, such as income-driven repayment plans, federal loan forgiveness programs, and fixed interest rates set by the government. Federal student loans should generally be your first choice, with private loans filling any gaps in funding. Can I get a student loan from any credit union? Not all credit unions offer student loans, and eligibility may be limited to members who meet specific criteria. It’s essential to check with individual credit unions to see whether they provide student loans and whether you qualify for membership based on their requirements. How do I apply for a credit union student loan? To apply for a credit union student loan, you typically need to be a member. The application process involves submitting personal and financial information, and sometimes, a cosigner may be required. Check with the credit union for its specific application procedures and requirements. How we selected the best credit union student loans LendEDU evaluates student loan lenders to help readers find the best student loans. Our latest analysis reviewed 725 data points from 25 lenders and financial institutions, with 29 data points collected from each. This information is gathered from company websites, online applications, public disclosures, customer reviews, and direct communication with company representatives. These star ratings help us determine which companies are best for different situations. We don’t believe two companies can be the best for the same purpose, so we only show each best-for designation once. Recap of the best credit union student loans Credit unionRates (APR)Who’s eligible?Credible*3.79% – 17.99%U.S. citizens & permanent residents enrolled at least part-timeLendKey*4.89% – 10.39%U.S. citizens & permanent residents enrolled at least half-timeNavy Federal Credit UnionStarting at 5.50%Current & former military members & immediate familyThrivent Federal Credit UnionStarting at 5.23%Thrivent members or those affiliated w/ one of several church bodies*Not a credit union, but a company that connects borrowers with several lenders, including credit unions.