Navy Federal Credit Union Student Loans Review

Navy Federal Credit Union offers private student loans and student loan refinancing to eligible members

It partners with LendKey to provide its student loan products.
Eligibility requires credit union membership, U.S. citizenship, and current student status at an eligible school.
Student loan applicants with less than $15,000 income or refinance applicants making less than $24,000 might need a cosigner.
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.

In this review:

How does Navy Federal Credit Union work?
Navy Federal Credit Union’s private student loans
Navy Federal Credit Union’s student and parent refinance loans
How can Navy Federal Credit Union improve its private student loan and refinancing?
How have Navy Federal Credit Union student loans and refinance loans evolved?
Is Navy Federal Credit Union a reputable lender?
Does Navy Federal Credit Union have a customer service team?
How to apply for a Navy Federal Credit Union student loan
How to apply for a Navy Federal Credit Union refinance loan
What if I’m denied a student loan from Navy Federal Credit Union?
Navy Federal Credit Union FAQ
Recap of our Navy Federal Credit Union student loans review

Founded in 1933, Navy Federal Credit Union (NFCU) is based in Virginia. Its mission is to serve and enrich the military community. With more than eight decades of service, NFCU offers a broad range of financial products from checking accounts to loans.

One standout offering from NFCU is its student loans aimed at members who are students. NFCU also provides student loan refinancing options.

To be eligible, borrowers must be credit union members, which is available to active and retired military members, veterans, and immediate family members of those who have served.

How does Navy Federal Credit Union work?

To apply for a student loan with Navy Federal Credit Union, you must first become a member. It provides loans for students and parents, allowing for flexible financing options for a student’s education.

The school-certified cost of attendance determines the loan amount. However, creditworthiness and income will play significant roles in the final loan approval. NFCU disburses funds to the school.

Navy Federal Credit Union offers refinancing options for federal and private student loans, which can consolidate multiple student loans into a single new loan and potentially lower your interest rate. It’s important to understand that when you refinance a federal loan, you will lose federal loan benefits, so consider this decision carefully.

Navy Federal Credit Union’s private student loans

Rates, terms, and fees

Navy Federal Credit Union offers student loans with competitive rates and the distinct benefit of a career assistance program. This program is free to students with loans through Navy Federal Credit Union and offers online job search training, unique job-finding strategies, and tools including a resume builder.

Feature	Details
Fixed rates (APR)	Starting at 5.50 with autopay
Variable rates (APR)	Starting at 7.49% with autopay
Rate discounts	0.25% for automatic payments
Loan amounts	Up to the school-certified cost of attendance
Grace period	6 months
Cosigner release	After 24 consecutive, on-time principal and interest payments
Fees	No application or origination fees, and no prepayment penalties
Unique features	Career assistance program offering online job search training, job-finding strategies, job-tracking dashboard, and resume builder

What are the eligibility requirements?

Eligibility for Navy Federal Credit Union’s student loans encompasses a variety of factors. A candidate must be a member of Navy Federal Credit Union, which is only available to members of the military and their family members.

Of Navy Federal’s student loan borrowers, 90% have a cosigner, making it a requirement for most. A cosigner can increase the likelihood of approval and potentially lower the interest rate.

Borrowers must be enrolled full time at an eligible college or university. This excludes:

Certificate programs
Trade schools
For-profit colleges
Foreign institutions
Schools that don’t certify the cost of attendance
K–12 schools
Students enrolled less than part-time

Requirement	Details
Credit union membership	Active duty, retired, and veterans Immediate family members of those who’ve served Department of Defense civilians 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 in which you reside (age 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 credit score	Not disclosed but applicants and cosigners must meet underwriting and credit criteria
Minimum income	$15,000 per year

How does repayment work?

Navy Federal Credit Union’s repayment plans and terms offer less choice than other lenders, which may provide more varied term options.

It offers two in-school repayment options for student loans: a flat $25 monthly payment, which it calls the “proactive plan,” or an interest-only payment, in which you pay only the interest accrued on your loan. This requirement allows you to reduce the total owed before you leave school.

Navy Federal also offers two repayment terms: five or 10 years. The shorter term can lead to higher monthly payments, but the total interest paid over the life of the loan will be lower, and a longer term means smaller monthly payments but more interest paid in total.

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

NFCU hasn’t disclosed specifics about repayment assistance programs, but many student loan lenders offer hardship programs to help borrowers struggling to make payments.

Navy Federal Credit Union’s student and parent refinance loans

Navy Federal Credit Union provides two types of refinance products—a student loan refinance and a parent loan refinance. They share many features, but we’ll also outline the differences.

Rates, terms, and fees

Navy Federal’s rates and terms are competitive, with no additional fees, making it a strong choice in the refinance market.

Feature	Details
Fixed rates (APR)	Start at 4.60% with autopay
Variable rates (APR)	Start at 6.62% with autopay
Rate discounts	0.25% for autopay
Loan amounts	Not disclosed
Repayment terms	5-, 10-, or 15-year
Repayment assistance	Not disclosed
Cosigner release	After 12 on-time full payments
Fees	No application or origination fees, and no prepayment penalties
Unique features	Student borrowers gain eligibility for career assistance, online job search training, suggestions for how to find 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.

What are the eligibility requirements?

To refinance student loans with Navy Federal Credit Union, you must be a member of the credit union. While cosigners are accepted, they are not always necessary if the borrower meets the income and credit history requirements.

However, a cosigner can be beneficial if the borrower’s income is lower or their credit history is less established. Note that for refinance customers, the cosigner release period is shorter than in-school student loans—just 12 on-time payments required.

Requirement	Details
Navy Federal Credit Union membership	Required
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 in which you reside (age 18 in most states)
Minimum credit score	Not disclosed
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 does repayment work?

Repayment with Navy Federal Credit Union’s refinance student loan stands out for its simplicity.

It adds an additional repayment term option from the student loans, with a choice of five-, 10- or 15-year terms.

Choosing the length of the loan term allows the borrower to tailor the loan to their specific financial situation, balancing the monthly payment amount and the overall cost of the loan. Longer terms will result in lower monthly payments but a higher total cost due to interest over time.

In terms of repayment assistance, Navy Federal doesn’t disclose specific programs. The lender encourages borrowers facing financial difficulty to contact the lender to discuss options, a standard practice in the industry.

How can Navy Federal Credit Union improve its private student loan and refinancing loans?

Despite the unique career assistance benefits it offers with its student loans and the absence of fees across all products, Navy Federal Credit Union could enhance its student loans and refinancing options in several ways:

Repayment options. Offering only two in-school repayment plans and two repayment terms limits the flexibility for some borrowers. Some student loan lenders, such as Ascent, will allow you to completely defer payments while in school. College Ave offers loans and refinancing with five repayment terms for most borrowers.
Need for a cosigner could be a hurdle for some potential borrowers. While having a cosigner can often lead to better rates, not all students have access to a willing and qualified cosigner. Ascent and Funding U are options to explore for student loans not requiring a cosigner.
Limited access. Requiring membership for student loan and refinancing products and limiting availability to specific schools, programs, and enrollment statuses for student loans restricts access for some borrowers. While this limited eligibility is standard for credit unions offering student loans, borrowers looking for broader accessibility could consider other student loan companies, including larger banks and online lenders.

How have Navy Federal Credit Union student loans and refinance loans evolved over the years?

Navy Federal Credit Union, while a long-standing institution, is newer to the student loan market. The credit union started its foray into private student loans and refinance loans in 2015 through a partnership with LendKey.

This partnership was a turning point for Navy Federal, as it marked the expansion of its product offerings beyond federally backed loans. The shift to private lending opened up new possibilities for members, particularly those looking for more flexibility than federal loans provide.

Over the years, Navy Federal has continued to tweak its offerings, incorporating features to meet the evolving needs of its borrowers. For example, it now provides career assistance benefits, a unique perk not common in the industry.

Although Navy Federal is not as seasoned as other private student loan lenders, its commitment to member service and the unique features it offers make it a competitive option for students and parents.

Is Navy Federal Credit Union a reputable lender?

When considering a lender for refinancing student loans, understanding its reputation and how it treats its customers is crucial. Here’s a snapshot of Navy Federal Credit Union’s customer reviews and ratings:

Source	Customer rating	Number of reviews
Trustpilot	4.6/5	20,095
Better Business Bureau	1.46/5	142

Data collected on July 21, 2023

Navy Federal Credit Union garners mixed customer reviews, reflecting a variety of borrower experiences. On consumer review platform Trustpilot, the credit union scores a high 4.6 out of 5, with borrowers noting the easy process and competitive rates.

However, complaints regarding customer service have surfaced, although these are not always specific to student loans.

On the other hand, the Better Business Bureau (BBB) rates Navy Federal Credit Union at a lower 1.46 out of 5 based on 142 reviews. Many of these complaints revolve around customer service and, again, are not all tied to the student loan services.

Navy Federal Credit Union is BBB-accredited, an endorsement signifying its commitment to resolve any customer complaints and maintain high business standards.

Does Navy Federal Credit Union have a customer service team?

Navy Federal partners with LendKey to handle its student loan applications and to manage its private student loans, student refinance loans, and parent refinance loans.

When you apply for your loan, you’ll fill out your application and create an account on a co-branded LendKey/Navy Federal website. You can expect to receive emails from LendKey throughout the process.

To contact Navy Federal/LendKey about your student loans, you can:

Email: [email protected]
Call: 1-877-304-9302, Monday through Friday, 8 a.m. – 8 p.m. Eastern

How to apply for a Navy Federal Credit Union student loan

Compared to other lenders, Navy Federal Credit Union’s application process is fairly standard and straightforward. It’s a step-by-step process that guides you through providing your personal and academic information and, if needed, adding a cosigner.

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

1. Add a cosigner, if needed

If you don’t have an income of at least $15,000 a year or you 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 member of the credit union, being a current student or graduate of an eligible school (unless you’re a parent), and meeting the citizenship and residency requirements.

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

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

3. Provide final documentation

Your 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.

Receiving a preliminary decision typically takes 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.

How to apply for a Navy Federal Credit Union refinance loan

Applying for a refinance loan with Navy Federal Credit Union is similar to applying for a student loan, with a few specific differences. Below are the steps to apply for a refinance loan.

1. Determine eligibility

To apply for a refinance loan with Navy Federal Credit Union, you should be:

A member of Navy Federal Credit Union
A U.S. citizen or permanent resident
A legal adult in the state in which you reside (age 18 in most states)
The borrower of the loans you’re looking to refinance
Have a minimum annual income of $24,000

2. Gather relevant loan and academic information

You must provide details about the student loans you are looking to refinance. This includes the loan servicer’s name, the outstanding balance, your monthly payment, the degrees you earned, and the school you attended.

3. Consider a cosigner

If you do not meet the income requirement, consider adding a creditworthy cosigner to your application. A cosigner can increase your chances of approval and help lower your interest rate.

4. Complete the application

Submit your application online, providing the required personal, academic, and financial information.

Upon approval, Navy Federal Credit Union will pay off your loans to your current servicers, consolidating them into a single new loan.

The online application process for a refinance loan takes a few minutes, and you can expect a decision within a few weeks. Upon approval, it may take another few weeks to pay off your refinanced loans and establish the new loan.

What if I’m denied a student loan from Navy Federal Credit Union?

If Navy Federal Credit Union denies your student loan application, you still have options.

You can reapply for a loan with Navy Federal. The lender will provide reasons for loan denial, allowing you to address these issues before reapplying. This might involve improving your credit score or finding a creditworthy cosigner to strengthen your application.

You might consider exploring other student loan options. Depending on your situation, different resources may be more suitable:

For students without a cosigner: Look at our guide on the best no-cosigner student loans.
For students interested in private student loans: Check out our best private student loans guide.
For students considering student loan refinancing: Our guide on student loan refinance lenders can help you understand what’s available.

Remember, the right student loan option depends on your personal circumstances, such as your credit score, income, and whether you have a cosigner. Be sure to review all available options before making a decision.

Navy Federal Credit Union FAQ

Does Navy Federal Credit Union offer private or federal student loans?

Navy Federal Credit Union offers private student loans. It doesn’t deal with federal student loans, which are administered through the U.S. Department of Education.

Does applying with Navy Federal Credit Union hurt my credit?

Yes, applying for a student loan with Navy Federal Credit Union involves a hard credit inquiry, which can lower your credit score. However, the impact is typically minimal and temporary.

Does Navy Federal Credit Union require a cosigner?

A cosigner isn’t required for a Navy Federal Credit Union student loan, but in certain circumstances, the lender recommends one. If your income is below $15,000 a year or if you have a limited credit history, a creditworthy cosigner could improve your chances of approval and help you secure a lower interest rate.

Does Navy Federal Credit Union allow cosigners to be released?

Yes, Navy Federal Credit Union allows for cosigner release. After making 24 consecutive on-time payments, a borrower can request to have their cosigner released from the loan.

For refinance loan borrowers, cosigners can be released after making 12 consecutive on-time payments.

What can Navy Federal Credit Union student loans be used for?

You can use Navy Federal Credit Union student loans for a variety of educational expenses. This includes tuition, room and board, books, and other education-related costs. NFCU sends funds to the school, which applies them toward these expenses.

How long does it take to receive funds from Navy Federal Credit Union?

The time it takes to receive funds from Navy Federal Credit Union can vary. The lender provides a preliminary decision within minutes of application but doesn’t disburse the funds until the school completes its certification process. This process can take four to six weeks.

Is Navy Federal Credit Union responsible for paying off my current student loans?

If you’re refinancing with Navy Federal Credit Union, it’s the lender’s responsibility to pay off your student loans. After approval and receiving the signed agreement, Navy Federal will send the loan amount to your current loan servicer.

Can Navy Federal Credit Union student loans be forgiven?

Navy Federal Credit Union doesn’t offer loan forgiveness for its private student loans. It doesn’t disclose repayment assistance options, but you should contact NFCU if you are struggling to make payments.

Recap of our Navy Federal Credit Union student loans review

Student loan product	Our rating
Private student loan	Not rated	View Rates
Student loan refinance	Not rated	View Rates
Parent loan refinance	Not rated	View Rates