Because credit unions are nonprofit organizations, they sometimes offer lower rates and more favorable terms on loans compared to banks. This might make a credit union a good choice if you need to take out a student loan.
3 credit unions that offer student loans
If you’re looking for a credit union student loan, it’s generally a good idea to start your search with credit unions in your area. But there are also national credit unions that offer student loans.
Keep in mind: You’ll have to join the credit union to take out a student loan. Each credit union has its own eligibility requirements for membership — for example, you might need to live in a certain area, work in a specific field, or join an associated organization.
Here are three national credit unions to consider. Keep in mind that none of these lenders are Credible partners.
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Navy Federal Credit Union | | | |
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BECU
Boeing Employees Credit Union (BECU) offers 10-year student loans with fixed rates — this means your rate and monthly payment will stay the same throughout your entire repayment term. You can also get a 0.25% rate discount by signing up for automatic payments.
- Rates: Fixed
- Loan terms: 10 years
- Loan amounts: Check with lender
- Cosigners accepted: Yes
- Cosigner release: Applications accepted after 24 months of on-time, consecutive payments
- Discounts: 0.25% autopay discount
Navy Federal Credit Union
With Navy Federal Credit Union, you might be able to borrow up to your school’s cost of attendance. You can choose between a fixed or variable rate and will have 10 years to repay the loan. Additionally, you can get a 0.25% rate discount by signing up for automatic payments.
- Rates: Fixed or variable
- Loan terms: 10 years
- Loan amounts: Up to your school’s cost of attendance
- Cosigners accepted: Yes
- Cosigner release: Applications accepted after 24 months of on-time, consecutive payments
- Discounts: 0.25% autopay discount
PenFed Credit Union
Unlike some other credit unions, PenFed doesn’t issue student loans itself. Instead, it has partnered with other lenders — such as Sallie Mae — that offer student loans to PenFed members. These loans are available for $1,000 up to your school’s cost of attendance and come with terms ranging from five to 15 years.
- Rates: Fixed or variable
- Loan terms: 5 to 15 years
- Loan amounts: $1,000 up to your school’s cost of attendance
- Cosigners accepted: Yes
- Cosigner release: Applications accepted after 12 months of on-time, consecutive payments
- Discounts: 0.25% autopay discount
Before you take out a student loan, it’s important to consider how much that loan will cost you so you can prepare for any added expenses.
Credit union loans vs. online loans
Credit unions are quite similar to online lenders when it comes to getting a student loan. Both types of lenders can offer a variety of student loans — such as undergraduate and graduate student loans, law school loans, and more.
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Physical branches available | | |
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| - Might be able to apply online
- Some credit unions might require in-person application
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Membership or previous account required | | |
- Type of organization: Credit unions are nonprofit organizations while online lenders are for-profit companies. Because of this, credit unions sometimes offer better rates and terms than online lenders.
- Physical branches: Credit unions generally have brick-and-mortar locations available, which can be helpful if you’re someone who prefers to apply for loans in person. Online lenders, on the other hand, are only available online.
- Location: Some credit unions are small and local while others large and available nationwide. In comparison, online lenders work with borrowers across the country.
- Application process: Some credit unions offer online applications while others require you to visit a branch in person. With online lenders, you can only apply via their website.
- Membership required: To take out a student loan with a credit union, you must become a member of the credit union. Each credit union has its own membership requirements, so it’s a good idea to make sure you’re eligible to join before you apply. With online lenders, you typically don’t need to worry about being a member or having a previous account.
If you decide to take out a private student loan, it’s important to consider as many lenders as possible to find the right loan for you.
Advertiser DisclosureLoan Amounts
$1,000 up to 100% of the school-certified cost of attendance
Overview
College Ave offers a wide range of in-school loans for nearly every type of degree. There are a number of repayment options, and borrowers can choose a unique eight-year repayment term. Plus, graduate, dental, and medical students receive extended grace periods.
You may get easy funding for multiple years — 90% of undergraduates are approved for additional student loans when they apply with a cosigner. However, it can be difficult to remove a cosigner for your loan later on, as you must complete at least half of your repayment term before becoming eligible. That’s significantly longer than some lenders, which may only require one to two years of payments before releasing a cosigner.
Loan terms
5, 8, 10, or 15 years for most borrowers (law, dental, medical, and other health profession students have up to 20 years)
Loan amounts
$1,000 minimum up to your school’s annual cost of attendance; lifetime limits depend on your degree and credit profile
Cosigner release
After half of the scheduled repayment period has elapsed
Eligibility
Must be a U.S. citizen or permanent resident at an eligible institution. International students with a Social Security number and a qualified cosigner may also qualify. Applicants who can’t meet financial, credit, or other requirements may qualify with a cosigner.
Overview
Ascent offers several unique borrowing options that you don’t typically see with private lenders. In addition to traditional student loans for undergraduate, graduate, and medical programs, college juniors and seniors may qualify for its Outcomes-Based Loan — which doesn’t require established credit or a cosigner. Instead, Ascent reviews alternate factors such as your school, major, and GPA to determine your eligibility.
Ascent also offers a wide range of loan terms and repayment plans to choose from. You may even qualify for its Progressive Repayment plan, which allows you to start with small payments that gradually increase over time. Borrowers who use a cosigner can release them after as few as 12 payments, though international students don’t qualify for this option.
Loan terms
5, 7, 10, 12, 15, or 20 years
Loan amounts
$2,001 minimum up to your school’s annual cost of attendance; lifetime limits of $200,000 for undergrads and $400,000 for graduates
Eligibility
Must be a U.S. citizen or DACA student enrolled at least half time at an eligible institution. International students with a qualified cosigner may also qualify. Applicants who can’t meet financial, credit, or other requirements may qualify with a cosigner.
Loan Amounts
$1,000 to $99,999 annually ($180,000 aggregate limit)
Overview
Powered by Cognition Financial, Custom Choice offers student loans for undergraduate and graduate students starting at $1,000. You can borrow up to $99,999 per year with a total aggregate limit of $180,000.
If you apply with a cosigner, you may be able to release them from your loan after 36 on-time payments. You can also receive a 0.25 percentage point discount on your interest rate by setting up autopay, as well as a 2% reduction of your principal balance after graduating.
Custom Choice doesn’t charge application, origination, prepayment, or late fees. It also lets you pause payments through forbearance if you qualify for its natural disaster or unemployment protection programs.
Loan amounts
$1,000 to $99,999 per year (lifetime limit of $180,000)
Eligibility
Must be a U.S. citizen or permanent resident at an eligible institution. You must also meet Custom Choice’s underwriting criteria for income and credit, or apply with a cosigner who does. Eligible noncitizens such as DACA residents can also qualify by applying with a cosigner who’s a U.S. citizen or permanent resident.
Loan Amounts
$1,000 up to 100% of school-certified cost of attendance
Overview
Sallie Mae offers the Smart Option Student Loan to undergraduate and graduate students. You can borrow up to your school-certified cost of attendance and apply just once annually to get the funds you need for the entire academic year. Plus, it may be easy to get reapproved for your future years of study — undergraduates have a 97% approval rate when they return to Sallie Mae with a cosigner.
Through Sallie Mae, you can find a variety of loans designed for specific needs, including loans for MBA programs, law school, bar study, medical school, medical residency, dental programs, dental residency, and other health profession programs. However, this lender no longer offers a career training loan.
Loan terms
10 to 15 years for Smart Option Student Loan; up to 15 years for law school and bar study loans; up to 20 years for medical school, medical residency, dental school, dental residency, and health professions loans
Loan amounts
$1,000 up to school-certified cost of attendance
Eligibility
Must be a U.S. citizen or permanent resident enrolled in an eligible program. Noncitizens may qualify by applying with a cosigner who’s a U.S. citizen or permanent resident.
Loan Amounts
$1,001 up to 100% of school certified cost of attendance
Overview
INvested is an Indiana company that offers affordable student loans exclusively to state residents. Loans are available to Indiana students and parents who can meet income and credit requirements, or who have an eligible cosigner. Borrowers can borrow as little as $1,001 or as much as the school-certified cost of attendance minus other aid.
INvested provides detailed information on eligibility so borrowers can quickly determine whether to apply for a loan — however, there’s no option to prequalify with a soft credit check. Cosigner release is also available after just 12 on-time payments, considerably shorter than many other lenders.
Loan amounts
$1,001 minimum, up to the school certified cost of attendance
Eligibility
Loans are available to Indiana residents only. Borrowers must have a FICO score of 670 or higher, a 30% maximum debt-to-income ratio or minimum monthly income of $3,333, continuous employment over two years, and no major collections or defaults in recent years. Borrowers who do not meet income or credit requirements can apply with a cosigner.
Loan Amounts
$1,500 up to school’s certified cost of attendance less aid
Overview
Massachusetts Educational Financing Authority (MEFA) is a not-for-profit lender that offers low-cost undergraduate and graduate school loans to students nationwide. While only fixed-rate loans are available, interest costs may be lower than what you see with other private loans.
While you can apply with a cosigner to lock in the best rate possible, removing that cosigner later may be tough. Only one repayment plan allows cosigner release, and you must make four years of consecutive on-time payments and meet other credit and income requirements to qualify.
Loan amounts
$1,500 minimum up to school-certified cost of attendance
Eligibility
Must be a U.S. citizen or permanent resident, enrolled at least half time at a degree-granting, nonprofit institution, and must maintain satisfactory academic progress. Must have no history of default on an education loan and no history of bankruptcy or foreclosure in the past 60 months. Applicants who can’t meet the minimum credit and income requirements may apply with a cosigner.
Loan Amounts
$1,000 to $350,000 (depending on degree)
Overview
Citizens offers a variety of student loan types, including loans for undergraduates, graduate students, and parents. Perhaps the most unique feature of Citizens student loans is the option for multiyear approval. If you qualify, you can apply once and borrow for future years with a more streamlined process that only involves a soft credit inquiry.
Student borrowers can defer payments while in school and for six months after graduating. You can also score a 0.25 percentage point reduction on your interest rate for setting up autopay, as well as an additional 0.25 percentage point loyalty discount if you or your cosigner already have a qualifying account with Citizens.
Loan terms
5, 10, or 15 years for student loans; 5 or 10 years for parent loans
Loan amounts
$1,000 minimum, up to a maximum of $150,000 for undergraduate and graduate degrees; $250,000 for MBA and law; and $180,000 or $350,000 for health care student loans, depending on the degree type
Eligibility
Must be a U.S. citizen or permanent resident enrolled at least half-time in a degree-granting program at an eligible institution. International students can apply with a cosigner who’s a U.S. citizen or permanent resident.
Loan Amounts
$1,000 up to cost of attendance
Overview
Education Loan Finance (ELFI) is a division of Tennessee-based SouthEast Bank owned by Education Loan Finance, Inc., a non-profit whose mandate is to provide access to higher education. ELFI launched in 2015 and offers undergraduate, graduate, and parent private student loans as well as student loan refinancing.
ELFI student loans and refinance loans are available to residents in all U.S. states including Puerto Rico. Borrowers can benefit from no application, origination, or prepayment fees. ELFI also offers flexible repayment terms and competitive rates, however there’s no cosigner release option and the lender doesn’t offer any discounts.
Loan amounts
$1,000 - Cost of attendance
Cosigner release
A cosigner may not be taken off a loan, but the borrower can apply for a new loan without their cosigner.
Eligibility
All 50 states as well as Washington DC and Puerto Rico.
Check Out: Best Medical School Loans
How to take out a student loan
If you’re ready to get a student loan, follow these four steps:
- Fill out the FAFSA. If you need to pay for school, filling out the Free Application for Federal Student Aid (FAFSA) is usually a good place to start. Your school will use your FAFSA information to determine what federal financial aid you might be eligible for. Your FAFSA results might also play a role in qualifying you for school-based scholarships and grants.
- Apply for scholarships and grants. It’s a good idea to apply for as many college scholarships and grants as you can since these types of aid don’t have to be repaid, unlike student loans. This essentially makes scholarships and grants free money for school.
- Apply for federal student loans. Your FAFSA information will also be used by your school to see what federal student loans are available to you. If you need to borrow money for school, federal student loans are usually the best place to start. This is mainly because they come with federal benefits and protections, such as access to income-driven repayment plans and student loan forgiveness programs. Additionally, most federal student loans don’t require a credit check.
- Take out private student loans to fill any gaps. If you’ve exhausted your scholarship, grant, and federal student loan options, private student loans can help fill any financial gaps left over. Be sure to consider as many lenders as possible to find the right private student loan for you — such as credit unions, online lenders, and banks.
Tip: You’ll typically need to have good to excellent credit to potentially qualify for a private student loan. While some lenders offer student loans for bad credit, these loans generally come with higher interest rates compared to good credit loans.
If you’re struggling to get approved, consider applying with a cosigner. Even if you don’t need a cosigner to qualify, having one could get you a lower interest rate than you’d get on your own.
Before you take out a private student loan, remember to consider as many lenders as possible to find the right loan for you.
Credit union student loans FAQ
Here the answers to a few commonly asked questions regarding credit union student loans.
Do credit unions offer student loans?
Not all credit unions offer student loans, but some do. If you want to take out a credit union student loan, it’s usually a good idea to start your search with local credit unions in your area before considering national credit unions.
Do you have to be a credit union member to take out a student loan?
Yes, to take out a student loan through a credit union, you’ll need to be a member.
However, keep in mind that you can often join the credit union at the same time that you apply for a student loan — just make sure that you’re eligible for membership beforehand.
How long does it take to get a credit union student loan?
The timeline for getting a credit union student loan will likely be longer compared to an online lender — especially since some credit unions don’t accept online applications and might require you to apply in person.
If you’re approved, your school will have to certify the loan, which could take anywhere from a few weeks to a few months.
Min. Credit ScoreDoes not disclose
Fixed APR6.49 -
Loan Amount$10,000 - $750,000
Term5, 7, 10, 15, 20
Min. Credit Score720
Fixed APR4.75 -
Loan Amount$10,000 - $400,000
Term5, 7, 10, 15, 20
Read Our ReviewMin. Credit ScoreDoes not disclose
Fixed APR3.54 -
Loan Amount$7,500 up to $500,000
Term10, 15, 20
Read Our ReviewMeet the expert:
Lindsay VanSomeren
Lindsay VanSomeren specializes in credit and loans. Her work has appeared on Credit Karma, Forbes Advisor, LendingTree, and more.
