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4 Best Credit Union Student Loans in 2023

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Credit Unions for Student Loans

Credit unions may offer more competitive interest rates and lower fees than you’d find with banks or online lenders. However, they also have their own set of pros and cons.

If you’re considering a student loan from a credit union, make sure to shop around with several different companies. Compare interest rates, repayment terms, cosigner release programs, and forbearance options to find the best fit for your needs.

Here, we will walk you through the top 4 credit unions for student loans in 2023.

Navy Federal Credit Union

The Navy Federal Credit Union is one of the best banks for military members and their families. Its membership includes active duty and retired service members of the Army, Marine Corps, Navy, Air Force, Coast Guard, and National Guard.

In addition, it has an extensive list of benefits for its members. These include a career assistance program, an interest-free checking account, and rebates on ATM fees.

Another perk is the ability to refinance student debt. For this, NFCU works with LendKey, which provides a streamlined loan application process. NFCU’s refinancing option comes with five-, 10- and 15-year terms. It also offers cosigner release after a borrower makes 12 consecutive on-time payments.

Compared to private lenders, NFCU’s standard student loans have no deferment or forbearance options. This can be problematic if you are struggling to pay back your debt.

Here are the key features of the Navy Federal Credit Union for student loans:

  • Competitive interest rates: Navy Federal Credit Union offers competitive interest rates on its student loans. Rates are variable and start as low as 3.29%, depending on the borrower’s creditworthiness and other factors.
  • Flexible repayment terms: Navy Federal Credit Union offers flexible repayment terms for its student loans, including a 15-year repayment option. Borrowers can also choose to make interest-only payments while they are in school.
  • No origination fees: There are no origination fees or prepayment penalties associated with Navy Federal Credit Union student loans.
  • Co-signer release: Navy Federal Credit Union offers a co-signer release option after 24 consecutive on-time payments.
  • Membership requirements: To be eligible for a Navy Federal Credit Union student loan, borrowers must be members of the credit union. Membership is open to active-duty and retired military personnel, their families, and Department of Defense civilians.
  • Borrower benefits: Navy Federal Credit Union offers borrower benefits, such as a 0.25% interest rate reduction for enrolling in automatic payments and a 0.25% interest rate reduction for military members who have direct deposit with Navy Federal Credit Union.
  • Application process: The application process for a Navy Federal Credit Union student loan is straightforward and can be completed online. Borrowers can also contact a loan specialist for personalized assistance.

 

Thrivent Federal Credit Union

Thrivent Federal Credit Union offers a variety of student loans to meet the needs of students. These loans have competitive interest rates, multiple term lengths, and a unique option to choose a graduated repayment plan.

In addition to traditional loans, Thrivent offers members the opportunity to refinance their existing student loans. This is a great option if you are paying high-interest rates on your existing loans and want to save money.

Thrivent Federal Credit Union also has a strong reputation for customer service. Its US-based call center has evening and weekend hours and is a good place to start if you have questions about your loan. Its multi-year option is a nice feature as well, saving you the hassle of having to apply for a new loan every year.

Here are the key features of Thrivent Federal Credit Union for student loans:

  • Competitive interest rates: TFCU offers competitive interest rates on its student loans, with variable rates starting as low as 2.89%, depending on the borrower’s creditworthiness and other factors.
  • Flexible repayment terms: TFCU offers flexible repayment terms for its student loans, including a 20-year repayment option. Borrowers can also choose to make interest-only payments while they are in school.
  • No origination fees: There are no origination fees or prepayment penalties associated with TFCU student loans.
  • Co-signer release: TFCU offers a co-signer release option after 24 consecutive on-time payments have been made.
  • Membership requirements: To be eligible for a TFCU student loan, borrowers must be members of the credit union. Membership is open to Thrivent members, which includes Lutherans and their family members.
  • Borrower benefits: TFCU offers borrower benefits, such as a 0.25% interest rate reduction for enrolling in automatic payments and a 0.10% interest rate reduction for having a Thrivent Rewards Checking Account.
  • Application process: The application process for a TFCU student loan is straightforward and can be completed online. Borrowers can also contact a loan specialist for personalized assistance.

 

Saratoga Community Federal Credit Union

If you need funding to help cover the cost of higher education, Saratoga Community Federal Credit Union offers several different options. The credit union works in partnership with CU Student Choice and Sallie Mae to offer a student loan program for students who are attending college or graduate school.

SCFCU also offers undergraduate lines of credit to make funding available as you need it. This allows you to borrow up to $75,000 per year that you can allocate toward college costs and then use as needed during the academic year.

Saratoga Community Federal Credit Union also offers student loan consolidation to combine multiple private and federal loans into one payment. This can free up cash and avoid negative equity and the need to repay additional loans.

Here are the key features of Saratoga Community Federal Credit Union for student loans:

  • Competitive interest rates: SCFCU offers competitive interest rates on its student loans, with fixed rates starting as low as 4.25%, depending on the borrower’s creditworthiness and other factors.
  • Flexible repayment terms: SCFCU offers flexible repayment terms for its student loans, including a 10-year repayment option. Borrowers can also choose to make interest-only payments while they are in school.
  • No origination fees: There are no origination fees or prepayment penalties associated with SCFCU student loans.
  • Co-signer release: SCFCU offers a co-signer release option after 24 consecutive on-time payments have been made.
  • Membership requirements: To be eligible for a SCFCU student loan, borrowers must be members of the credit union. Membership is open to those who live, work, worship, or attend school in Saratoga County, New York.
  • Borrower benefits: SCFCU offers borrower benefits, such as a 0.25% interest rate reduction for enrolling in automatic payments and a 0.25% interest rate reduction for having a checking account with direct deposit.
  • Application process: The application process for an SCFCU student loan is straightforward and can be completed online. Borrowers can also contact a loan specialist for personalized assistance.

 

Affinity Plus Federal Credit Union

If you’re a student, Affinity Plus Federal Credit Union has plenty of options to help fund your education. It offers private student loans, technology loans, and loans based on your school’s tuition costs.

Affinity Plus Federal Credit Union is a not-for-profit financial cooperative that puts people first above profits. It has more than 27 locations in Minnesota and offers a range of products for personal and business banking.

The bank has a strong reputation for providing excellent customer service and community support. In addition to offering a wide range of personal banking services, Affinity Plus also gives members access to online banking services and financial management tools.

The bank is backed by the Credit Union Deposit Guarantee Corporation, which insures all deposits — chequing and savings accounts, GICs, RRSPs, RIFs, and foreign currency accounts — against loss or theft. The CUDGC typically covers similar amounts at banks, but the coverage at credit unions is often higher.

Here are the key features of the Affinity Plus Federal Credit Union for student loans:

  • Competitive interest rates: Affinity Plus Federal Credit Union offers competitive interest rates on its student loans, with variable rates starting as low as 1.99%, depending on the borrower’s creditworthiness and other factors.
  • Flexible repayment terms: Affinity Plus Federal Credit Union offers flexible repayment terms for its student loans, including a 20-year repayment option. Borrowers can also choose to make interest-only payments while they are in school.
  • No origination fees: There are no origination fees or prepayment penalties associated with Affinity Plus Federal Credit Union student loans.
  • Co-signer release: Affinity Plus Federal Credit Union offers a co-signer release option after 24 consecutive on-time payments have been made.
  • Membership requirements: To be eligible for an Affinity Plus Federal Credit Union student loan, borrowers must be members of the credit union. Membership is open to those who live, work, worship, or attend school in Minnesota or Wisconsin.
  • Borrower benefits: Affinity Plus Federal Credit Union offers borrower benefits, such as a 0.25% interest rate reduction for enrolling in automatic payments and a 0.25% interest rate reduction for having an Affinity Plus checking account.
  • Application process: The application process for an Affinity Plus Federal Credit Union student loan is straightforward and can be completed online. Borrowers can also contact a loan specialist for personalized assistance.

 

Is a credit union student loan the right choice?

Whether or not a credit union student loan is the right choice for you will depend on your individual financial situation and needs. 

Credit unions can offer many benefits, such as lower interest rates, flexible repayment options, and personalized service. However, there are also potential drawbacks, such as limited availability, membership requirements, smaller loan amounts, and limited online access. Also, if you have bad credit, then you must look for credit union loans for bad credit. 

Before choosing a credit union student loan, it’s important to do your research and compare it to other types of loans available to you, such as federal student loans, private student loans from banks, and other alternative lenders. 

If you do decide that a credit union student loan is the right choice for you, it’s important to carefully review the terms of the loan and understand your repayment options. Make sure to work with a loan officer to determine the best loan product for your needs and develop a plan for repaying the loan on time.

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