Many or all companies we feature compensate us. Compensation and editorial research influence how products appear on a page. Student Loans Are Credit Union Student Loans Right for You? Compare the Benefits and Top Options in 2024 Updated Oct 31, 2024 8-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® For student loan borrowers seeking lower rates, fewer fees, and a community-focused experience, credit unions can be a great alternative to traditional banks and online lenders. Though they lack federal protections, credit union loans often provide competitive rates and personalized service. However, eligibility requirements may be stricter, often requiring membership based on location, profession, or affiliation. In this guide, we’ll explore top student loan options from credit unions and compare them to bank and online lender offerings to help you decide which option best suits your needs. 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 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 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 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 private student loans compare to banks and online lenders? Credit unions operate as member-owned, nonprofit organizations, while banks and online lenders are typically for-profit. This often allows credit unions to offer lower fees and interest rates, prioritizing member service over profits. Accessing credit union loans usually requires membership, sometimes with specific eligibility criteria. In the table below, each feature compares how credit unions, banks, and online lenders stand out. The second column highlights which lender type generally offers an advantage for that feature. FeatureAdvantage?Interest ratesCredit unionsMembership requirementsBanks/online lenders (no membership needed)Customer serviceCredit unionsPhysical locationsBanksDigital toolsOnline lenders/banks Interest rates Credit unions generally offer lower interest rates due to their nonprofit structure, making them advantageous for borrowers who qualify. These lower rates can reduce both monthly payments and the overall cost of the loan, especially compared to traditional banks and online lenders, which may prioritize profit. Membership requirements Unlike banks and online lenders, most credit unions require membership, often tied to a specific region, community, or profession. This added step can limit who qualifies for a credit union loan. However, many credit unions have relaxed membership requirements, making it easy to join with a small balance or one-time fee. Customer service Credit unions typically emphasize customer service, offering a more personal experience than larger institutions. Credit union members may spend less time on hold and receive more individualized assistance, whereas banks and online lenders may rely more heavily on automated support. Physical locations National banks usually have extensive branch networks, providing convenient in-person access across the country. Credit unions tend to be more localized, with fewer branches, which may be a disadvantage if in-person service is a priority for you. Digital tools Online lenders and banks often offer more advanced digital tools, such as mobile apps, real-time customer support chat, and streamlined application processes. Credit unions may have simpler digital platforms, focusing more on community service than on the latest technology. Pros and cons of using a credit union for student loans Pros Lower interest rates Credit unions generally offer lower interest rates, which can reduce total loan costs. Personalized service Known for strong customer service, credit unions provide a community-focused, member-first approach. Community support Many credit unions cater to specific communities or groups, adding a sense of belonging for members. Cons Membership requirements Eligibility criteria may limit access for some borrowers. Limited physical and digital access Fewer branches and simpler online tools may make in-person and digital interactions less convenient than with banks or online lenders. 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.