Navy Federal Student Loans and Refinancing: Pros, Cons, and Better Alternatives

3.5 _/5

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Private Student Loans

• Easy approval with cosigner
• Autopay discount
• Job search resources

• High interest rates
• Only available to members
• Inflexible repayment terms
• Limited repayment assistance

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

Student Loan RefinanceView Rates

• No application or origination fees
• Autopay discount
• Job search resources
• Consolidate loans for multiple students

• High interest rates
• Only available to members
• Inflexible repayment terms

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

Navy Federal Credit Union offers private student loans and student loan refinancing. While financing your education through Navy Federal student loans could make sense if you’re already a member of the credit union, we’ve found that these loans have higher interest rates, less flexible repayment terms, and minimal repayment assistance options than many higher-rated competitors, including College Ave and SoFi.

Navy Federal student loans aren’t without merit; the credit union offers a 0.25% rate reduction for autopay, free job search training, and resources for life after graduation. We’ll explore these perks—and some of the drawbacks—in our Navy Federal student loans review below. We’ll also review several (better) alternatives to Navy Federal loans.

How Navy Federal Credit Union student loans work

Navy Federal student loans are available for certified school expenses for a semester or entire school year. While they can be easy to qualify for if you have a cosigner (90% of borrowers have a cosigner) and belong to the credit union, the loans have higher starting fixed interest rates than other student loan companies, including SoFi and Earnest. Repayment terms are more rigid than they are with other popular lenders.

Repayment assistance is more difficult to come by with Navy Federal than with other student loan options. For instance, College Ave offers a unique cash-back program to help pay down your loan, Earnest has a skip-a-payment feature, and SoFi offers deferment and forbearance options. 

Rates, terms, and more

Feature	Details
Fixed rates (APR)	Starting at 5.50%
Variable rates (APR)	Starting at 7.79%
Rate discounts	0.25% for automatic payments
Loan amounts	Up to 100% of costs
In-school repayment plans	Full, interest-only, or flat
Repayment terms	5 or 10 years
Grace period	6 months
Repayment assistance	None—possible deferment or forbearance on a case-by-case basis, but it’s limited
Cosigner release	After 24 on-time payments
Fees	Late payment
Unique features	Career assistance program offering online job search training, job-finding strategies, job-tracking dashboard, and resume builder

Who’s eligible for Navy Federal private student loans?

Navy Federal private student loans are only available to U.S. citizens or legal residents who are adults in their states (18 or older, generally) and members of the credit union. However, membership can be challenging to obtain if you’re not in the military or related to someone who is.

Borrowers must also be current students or graduates of a qualifying school. The required annual income is $15,000, which most full-time students may be hard-pressed to maintain. If you don’t meet that income requirement, you’ll need a cosigner.

Requirement	Details
Credit union membership	Active duty, retired, 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 where you reside (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 do you repay Navy Federal student loans?

While still enrolled in school, you can either make interest-only payments or a fixed payment of $25 a month. After graduation, a grace period of six months applies, and then payments kick in.

Navy Federal only offers five- and 10-year repayment plans. Other lenders have more flexible repayment options, which can help you better manage your monthly payment and how much interest you pay over the life of the loan. Navy Federal doesn’t charge prepayment penalties for paying off a student loan early.

You can sign up for autopay to get a 0.25% interest rate reduction, but this is standard in the world of student loans.

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

How Navy Federal student loan refinancing works

You might want to refinance student loans for several reasons. Perhaps you have multiple federal and private loans you want to consolidate into a single, easy-to-monitor loan. You may want to refinance for a lower interest rate or lower monthly payments. Whatever the cause, you can do it with Navy Federal—but only if you’re a member of the credit union. (And again, becoming a member is tough.)

Navy Federal’s refinancing options are less attractive than those of some of its competitors. Starting interest rates are higher than those of other lenders, and Navy Federal offers fewer repayment terms.

One bright spot: Parents can take out a parent refinance loan, which allows them to consolidate student loans for multiple children into one. Parents can also refinance while their child is still in school.

Rates, terms, and more

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
Unique features	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.

Who’s eligible for Navy Federal private student loan refinancing?

Similar to new private student loans, borrowers must be Navy Federal Credit Union members to qualify for student loan refinancing. They must also be U.S. citizens or legal residents and considered adults in their state.

Students applying must have graduated, but parents can apply while students are still in school. Borrowers must have a minimum income of $2,000 a month with an established credit history; otherwise, they’ll need a cosigner.

Graduates who make 12 on-time consecutive monthly payments can release their cosigner.

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 do you repay a Navy Federal student loan refinance?

Repayment terms for student and parent student loan refinance are limited to five-, 10-, or 15-year terms. Other lenders offer more options that make it easier to customize monthly loan payments and how much you pay in interest over the life of the loan.

As with new private loans, refinanced loans come with a 0.25% autopay discount.

What do customers say about Navy Federal student loans?

Navy Federal student loans earn mixed reviews. The credit union maintains a high score on Trustpilot, Google reviews are in the middle of the road, and the lender has a low rating with the Better Business Bureau (BBB).

While no one loves their student loans, other lenders may garner more positive reviews overall. Consider other features, such as rates and repayment terms, when making your decision, but factor in these mixed reviews for Navy Federal.

Source	Customer rating	Number of reviews
Trustpilot	4.5/5	34,573
Better Business Bureau (BBB)	1.21/5	338
Google	3.7/5	73

Navy Federal Credit Union alternatives

Navy Federal Credit Union student loans could make sense if you’re in a military family and are already a member of the credit union. Parents hoping to refinance loans for multiple kids may also benefit from Navy Federal’s student loan refinance option for parents. Beyond that, Navy Federal student loans fall short when compared to competitors.

Navy Federal student loans vs. other lenders

Among the best student loans are College Ave, Earnest, and Sallie Mae. 

Against these and others, Navy Federal falls short:

• Interest rate: The starting interest rate at Navy Federal is higher than other lenders.
• Repayment terms: Your repayment terms are more limited with Navy Federal.
• Repayment assistance: Other lenders offer repayment assistance, including skip-a-payment features, cash-back options to pay down your loan, or deferment and forbearance.
• Eligibility: Becoming a credit union member can be challenging for many borrowers.

Navy Fed offers several helpful job search resources for graduates that make it worthwhile for some.

Navy Federal student loan refinance vs. other lenders

Among the best student loan refinance options are ELFI, Earnest, and Credible (a student loan marketplace). Against these and others, Navy Federal falls short once again.

However, parents may appreciate being able to refinance while kids are still in school—or consolidating loans from multiple children into one.

How to apply with Navy Federal

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

1. Add a cosigner, if needed

If you earn less than $15,000 a year or 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 credit union member, current student or graduate of an eligible school (unless you’re a parent), and the citizenship and residency requirements.

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

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

3. Provide final documentation

You 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.

A preliminary decision can take 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.

FAQ

Does Navy Federal offer private or federal student loans?

Navy Federal offers private student loans and refinancing. It does not provide federal student loans, which are administered through the U.S. Department of Education. Private student loans from Navy Federal can help cover the gap between your financial aid package and the cost of tuition.

What credit score do you need for Navy Federal student loans?

To qualify for a Navy Federal student loan, borrowers typically need a good to excellent credit score, often starting around 670 or higher. However, fair- or bad-credit borrowers with a cosigner may be eligible.

How long does it take to get a Navy Federal student loan?

The approval and funding process for Navy Federal student loans can vary, but it typically takes about two to three weeks from the time you submit your application to get the funds. This time frame includes the application review, credit check, and disbursement process.

What types of student loans does Navy Federal offer?

Navy Federal offers undergraduate and graduate private student loans to help cover tuition, books, and other educational expenses. It also provides student loan refinancing options for those looking to consolidate and lower the interest rate on their current loans.

Does applying with Navy Federal hurt my credit?

When you apply for a Navy Federal student loan, the lender conducts a hard credit inquiry, which may cause a small, temporary drop in your credit score. However, this impact is often minor, and your score will recover with responsible credit behavior.

Does Navy Federal require a cosigner?

A cosigner may be required for Navy Federal student loans if the borrower doesn’t meet the credit or income requirements on their own. A cosigner can also help applicants secure better interest rates or improve their chances of approval.

Does Navy Federal offer repayment assistance for its student loans?

No, Navy Federal does not offer dedicated repayment assistance programs for its private student loans, such as income-driven repayment plans or forgiveness options that are available for federal loans. 

However, if you are struggling to make payments, contact Navy Federal. It may provide temporary relief options in certain situations, though this is on a case-by-case basis. You could also consider refinancing your loans for better rates or terms to make payments more manageable.

Can Navy Federal student loans be forgiven?

Navy Federal student loans are private, which means they are not eligible for federal forgiveness programs, such as Public Service Loan Forgiveness (PSLF) or income-driven repayment forgiveness. However, you may explore other options, including refinancing or seeking employer-based repayment assistance programs.

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