Refinancing can help make your student loan payments more affordable, and you can possibly save on interest.
You’re not limited to banks and online lenders, as some credit unions also offer competitive terms on student loan refinancing.
Shop around and get prequalified to find the best deal.
Refinancing your student loans makes it easier to manage your balances. Plus, you could snag a lower interest rate, more affordable monthly payments or lower borrowing costs over the loan term. Or you could shorten your loan term to pay your balances off faster.
While some of the top student loan refinancing companies are online lenders, you can also refinance your college debt with banks and credit unions.
6 credit unions that refinance student loans
If you’re interested in refinancing a student loan with a credit union, it’s best to start your search with a local credit union but don’t stop there. One of these four credit unions could be a good fit for student loan refinancing.
First Tech Federal Credit Union
With First Tech, you can refinance federal or private student loans, including parent PLUS loans. You can borrow between $5,000 to $500,000 over five, seven, 10 or 15 years. There are three loan types available.
Fixed-term loan: This is a traditional loan with a fixed interest rate and fixed monthly installments.
Balloon loan: With this loan, you’ll start with low monthly payments and then make a lump-sum payment after 15 years.
Interest-only loan: You’ll pay just the interest on this loan for one to 10 years. After that, your monthly payments will grow over time.
The balloon and interest-only loan options are marketed to professionals who expect to earn much more down the road. However, they come with higher interest rates and more complicated repayment terms.
To join First Tech, you must have a family member who is already a First Tech member, work for a partner company or for the state of Oregon or work or live in Lane County, Oregon.
Navy Federal Credit Union
Navy Federal Credit Union is unique in that it allows only qualified members of the military community to join. If you qualify based on those requirements, you can refinance federal or private student loans, including parent loans.
You can borrow as little as $7,500 and up to $125,000 for undergraduate debt and $175,000 for graduate debt. Repayment terms are five, 10 and 15 years. Interest rates are competitive, and you can get a 0.25 percent rate discount if you set up automatic payments.
If you’re a parent, you can combine student loans you took out for more than one child into one refinance loan. If you need a cosigner to get approved, you’ll have the ability to remove them after making 12 consecutive on-time payments and meeting certain credit requirements.
To qualify, Navy Federal requires a monthly income of $2,000 or more and an established credit history. If you have a cosigner, your income can be as low as $100 as long as theirs is $2,000 per month or more.
Service Credit Union
Service Credit Union offers student loan refinancing for college graduates and their parents, with the option for parents to transfer student loan debt to their child.
Loan amounts range from $5,000 to $150,000, and you can repay over five, 10 or 15 years. Like Navy Federal, Service Credit Union primarily serves the military community, but you can join by becoming a member of the American Consumer Council or by working for one of Service Credit Union’s select employer groups.
The lender doesn’t provide information about credit requirements to get approved to refinance your student debt, though you will need to have at least a bachelor’s degree.
Net Credit Union
Scranton, Pennsylvania-based Net Credit Union offers fixed and variable-rate student refinance loans for up to $125,000. There are no application fees, origination fees or prepayment penalties. And those who sign up for autopay qualify for a rate discount, though the credit union’s website doesn’t specify how much of a discount is offered.
Membership in Net Credit Union is open to employees of its preferred partners and those whose family members or housemates already bank with Net Credit Union. Individuals who live, work, study or are members of a church in a qualifying Net neighborhood are also eligible to join.
Visions Federal Credit Union
Visions Federal Credit Union is headquartered in New York but has nearly 60 branches in three states and more than 240,000 members.
The credit union’s Any Purpose Signature Loan can be used to refinance student loans. There’s no collateral required to qualify for these loans, and up to $40,000 can be borrowed, depending on the applicant’s creditworthiness and income. Loan terms are available for up to 120 months.
You will need to be a credit union member to obtain a loan, however. Membership is open to immediate relatives of existing members and also to those whose home, work, school or church is located in an eligible region within New York, Pennsylvania or New Jersey.
Landmark Credit Union
Landmark Credit Union offers variable and fixed-rate student loan refinancing with no origination fees or prepayment penalties for college graduates and their parents. You can borrow up to $150,000 over a five-, 10- or 15-year term. There is also a 0.25 percent rate discount if you enroll in automatic payments.
Refinancing is open to Landmark Credit Union members who attended an approved school and meet the eligibility requirements. You can join the credit union if you or your immediate family live or work in Southern and Northeastern Wisconsin, or Lake or McHenry Counties in Illinois. You’ll also need to open a VIP Savings Account with a minimum deposit of $5.
Pros and cons of credit union student loan refinancing
Choosing a lender to help you refinance your student loans is an important decision. Not only will it impact your interest rate, but it could also change your repayment term, fees and other aspects of the experience.
Credit unions can offer benefits that other lenders might not, but they can also have some drawbacks.
Pros of refinancing with a credit union
Credit unions typically charge lower interest rates and fees than traditional banks.
Credit unions traditionally serve specific communities and may have a better grasp on their needs, whether it’s a local community or a national one like the military.
Credit unions may offer better service because they have a smaller customer base.
You can often earn discounts on your refinancing loan if you already have a financial product managed by the credit union.
Cons of refinancing with a credit union
Credit unions may have lower limits on how much you can refinance.
Credit unions may have less flexible repayment options.
You may have to be a member of the credit union before you can apply.
Refinancing loans from credit unions are usually more expensive than those from online lenders.
How to find the best credit union to refinance your student loans
Before applying for refinancing, shop around, get prequalified with at least three lenders and compare loan offers to ensure you find the best deal. Also, consider using a platform like LendKey, which connects borrowers with credit unions and community banks.
You can also get a cosigner to potentially qualify for a lower rate. Unfortunately, not all credit unions provide rate quotes with a soft credit check. You may have to formally apply to view rates and terms.
Next steps
Refinancing your student loans could save you a mini-fortune in interest. And doing business with a credit union could mean lower rates and better customer service, but there are potential limitations in mind.
If you’re not married to the idea of refinancing only with a credit union, you may also consider comparing rates and other terms with online lenders and banks. But if you prefer to work with a smaller organization, stick to credit unions. Either way, be proactive about your student loan repayment and explore various ways to save money along the way.
