The 5 Best Credit Unions to Refinance Student Loans in 2025

The internet has made it significantly easier to apply for any kind of loan nowadays. You can find plenty of online lenders willing to refinance your student loan debt in a matter of minutes. But sometimes, the tried and true methods of borrowing are still best. In some instances, it makes more sense to consider credit unions for a student loan refinance.

The best credit unions for refinancing student loans are easy to join and offer competitive interest rates and flexible loan terms. Where they outshine online lenders is in their customer service. Below, we’ll explore some of the best credit unions for a student loan refinance plus walk through when and why you might want to go this route.

The best credit union student loan refinance options

Credit unions can be a great place for refinancing student loans—if you can become a member. The credit unions below represent some of the best student loan refinance companies available, but some are easier to join than others.

Navy Federal Credit Union

Best for military families

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Why we picked it

Navy Federal Credit Union is one of the best credit unions to refinance student loans with if you meet the requirements to join. Membership is open to military members (including veterans) and their families, as well as Department of Defense civilians.

Student loan refinances through Navy Federal have competitive interest rates and flexible terms. Parent refinance loans are also available, with cosigner release—meaning parents can effectively hand off loans to their children once they’ve graduated. 

• No application or origination fees
• Parent refinance loans available
• Competitive interest rates

• Must refinance at least $7,500
• Membership limited to military families (and Department of Defense civilians)

Refinance Details

Rates (APR)	Starting at 5.58% (variable) or 4.85% (fixed), with autopay
Loan amounts	$7,500 to $175,000
Repayment terms	5, 10, or 15 years

First Tech Federal Credit Union

Best for large amounts of student loan debt

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Why we picked it

First Tech Federal Credit Union gives borrowers with high student loan debt amounts a chance to refinance. Plus, benefits like no payments in the first 90 days and the DebtSafe loan payment protection plan (in matters of death, disability, and unemployment) make this credit union compelling.

Becoming a member is challenging, however. You’ll need to live or work in Lane County, Oregon, work for the state of Oregon, or work for one of the partner companies. Plus, this credit union has the highest starting APR of any on this list.

• Flexible loan terms and amounts
• No payments for the first 90 days
• Paid debt protection available
• No origination or application fees

• Strict member requirements
• High APRs
• No variable rate options

Refinance Details

Rates (APR)	Starting at 8.60%
Loan amounts	Minimums of $5,000 (5-year repayment); $7,000 (7-year); $10,000 (10-year); $20,000 (15-year); $500,000 max.
Repayment terms	5, 7, 10, or 15 years

Service Federal Credit Union

Best for an easy membership process

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Why we picked it

Service Federal Credit Union is the easiest credit union to join on our list. Members of the military and those who work at specific partner employers can join, but you can also simply join the American Consumer Counsel (it’s free!), and you’ll then be eligible to join Service Federal.

Service Federal has flexible loan terms and amounts, and interest rates for fixed-interest loans are decent, but there are more competitive interest rates elsewhere.

• Easy to become a member
• Flexible loan terms
• No origination or application fees

• More competitive interest rates available elsewhere
• Loans capped at $150,000

Refinance Details

Rates (APR)	Starting at 5.80% (fixed) or 7.99% (variable)
Loan amounts	Up to $150,000
Repayment terms	5, 10, or 15 years

NET Credit Union

Best for low interest rates

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Why we picked it

NET Credit Union has the lowest interest rates for student loan refinancing of any single credit union on our list; fixed-rate loans start at 4.74%. You can also get a discount for automatic payments.

However, becoming a member is challenging. You’ll need to live in a specific part of Pennsylvania or work for one of Net’s partner employers.

• Low starting interest rates
• Flexible loan terms
• No origination or application fees

• Strict membership requirements
• Loans capped at $125,000

Refinance Details

Rates (APR)	Starting at 4.74% (fixed) or 6.50% (variable)
Loan amounts	Up to $125,000
Repayment terms	5, 10, or 15 years

LendKey

Best for comparing multiple credit unions

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Why we picked it

LendKey isn’t a credit union; instead, it’s an online marketplace where you can compare several credit unions and community banks in one place. This lets you analyze rates and fees for multiple community-based financial organizations, simplifying your search. The caveat is that the results will also include banks.

LendKey differs from other online loan marketplaces because it’s focused on nonprofit and local lenders that provide transparent loans and have that community feel.

• Compare multiple loans in one place
• Access to 13,000+ community-based financial institutions
• A+ rating with Better Business Bureau
• No origination fees through any lenders

• Not actual lending source
• Late and insufficient funds fees possible with certain lenders
• Must refinance at least $5,000 (much higher in select states)

Refinance Details

Rates (APR)	Starting at 4.53% (variable) or 4.89% (fixed), with autopay
Loan amounts	$5,000 minimum (higher in select states)
Repayment terms	5 to 20 years

Student loan refinancing with a credit union vs. bank or online lender

The biggest difference between refinancing student loans with a credit union instead of a bank or online lender is that credit unions are more exclusive. You must be a member of the credit union to apply for any kind of loan, including a refinance.

Becoming a member often means living in a specific area, working for a certain employer, serving in a branch of the armed forces, or belonging to a specific organization. If you qualify and can join a credit union, you’ll get access to a few key benefits:

• Credit unions often offer lower interest rates on loans (and higher interest rates on deposit accounts) than traditional banks.
• Credit unions are nonprofits and member-owned, so you have a say in how the credit union is run.
• Credit unions, particularly local, community-based ones, prioritize customer service; interactions may feel more personal, and you may get a sense that employees are there to help you navigate your finances.

However, online lenders have flipped the script in the last couple of decades. While you can still get competitive interest rates on student loan refinances through a credit union or bank, online lenders may offer even lower interest rates and fees, and they may be willing to work with borrowers who have lower credit scores.

With online lenders, however, you lack access to in-person help, and customer service usually can’t compete with that of a credit union.

When choosing a lender—whether it’s a credit union, online lender, bank, or other—weigh your relationship with the institution, terms, interest rates, and underlying costs around the loans. The institution’s size and access to different loan services may provide some additional benefits.

Pros and cons of refinancing student loans with a credit union

Refinancing student loans with a credit union shares many of the same pros and cons of refinancing student loans anywhere, but there are a few unique to credit unions as well.

Pros

• Lower interest rates

  One of the main reasons to refinance student loans is to access lower interest rates. Due to their nonprofit nature, credit unions often offer lower interest rates than big banks, so you may have an easier time qualifying for a lower-interest loan through a credit union.

• Membership vibes

  Credit unions are member-focused. While you can join a federal credit union online and get great customer service, you may find local credit unions particularly helpful; they’re a part of your community and focused on helping you.

• Reduced and consolidated monthly payments

  Another reason to refinance student loans is to reduce your monthly payment amount. You can do this by refinancing to a longer loan term, meaning payments are spread out over a longer period of time. Refinancing also means you can consolidate a bunch of loans into one single monthly payment.

Cons

• Strict membership requirements

  Credit unions are harder to join than banks, as you’ll need to meet specific membership requirements.

• Missed potential with online lenders

  Credit unions can often beat banks’ interest rates, but online lenders often offer student loan refinances with lower interest rates. Make sure you consider a wide range of banks, credit unions, and online lenders before making a selection.

• Loss of federal loan protections

  The main reason not to refinance your student loans is that, assuming they are federal, you’ll lose out on federal loan protections. These include income-driven repayment plans, deferment and forbearance protections, and student loan forgiveness. If you need any of these benefits or think you’ll eventually qualify for something like public service loan forgiveness, it may be worth holding on to your federal student loans.

How to refinance your student loans with a credit union

To refinance student loans with a credit union, you’ll follow roughly the steps to refinance student loans anywhere, with one additional step:

1. Research and compare lenders: Compare multiple student loan refinance companies, determining which has the best rates, terms, and customer service for your needs.
2. Join the credit union: Unlike online lenders and banks, where you can often refinance loans without having any other services with that financial institution, you’ll need to be a member of a credit union to refinance. This often means opening a checking or savings account with the credit union. But first, you’ll need to find one for which you meet the membership criteria.
3. Fill out the application: If you chose a local credit union, a loan representative can help you through this process in person. Otherwise, you’ll do this part online. You’ll need to provide application documentation, including proof of income, proof of identity, your Social Security number, and current loan details. You’ll also need to submit to a credit check.
4. Review the offer and sign: Once approved for the credit union student loan refinance, review the offer, including all the fine print, sign, and voila!

FAQ

Is it better to refinance with a credit union?

Refinancing with a credit union can be a good option if you want lower interest rates, fewer fees, and a more personalized customer experience. Credit unions often offer competitive rates, especially for members with strong credit and a solid repayment history. 

However, they may have stricter membership requirements and less streamlined online application processes compared to larger lenders. It’s worth comparing credit union rates with other refinancing lenders to ensure you get the best deal.

Can I apply with a credit union online, or do I have to go to a branch?

Many credit unions allow you to apply for student loan refinancing online, but some may require an in-person visit for certain steps, such as membership verification or finalizing paperwork. While larger credit unions have robust digital platforms, smaller ones may have more limited online capabilities. It’s best to check directly with the credit union you’re considering.

Recap of the best credit unions to refinance student loans