3 Credit Unions to Consider When Taking Out a Student Loan

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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.

Here’s what you should know about credit union student loans:

3 credit unions that offer student loans
Credit union loans vs. online loans
How to take out a student loan
Credit union student loans: Frequently asked questions

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.

Lender	Loan terms	Allows cosigners?	Discounts
BECU	10 years	Yes	Autopay discount: 0.25%
Navy Federal Credit Union	10 years	Yes	Autopay discount: 0.25%

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

Learn More: How to Get a Student Loan in 3 Easy Steps

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

Check Out: How to Get a Student Loan for Online College

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.

You can find out how much you’ll owe over the life of your federal or private student loans using our student loan calculator below.

Enter your loan information to calculate how much you could pay

Loan amount ? Enter the total amount borrowed $

Interest rate ? Enter your annual interest rate %

Loan term ? Enter the amount of time you have to repay your loan years

Total Payment $

Total Interest $

Monthly Payment $

With a $ loan, you will pay $ monthly and a total of $ in interest over the life of your loan. You will pay a total of $ over the life of the loan, assuming you're making full payments while in school.

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Learn More: Fixed- or Variable-Rate Student Loan: Which Is Right for You?

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.

However, these lenders also come with a few differences — mainly in how they operate their businesses. Here are some important points to keep in mind as you compare credit unions to online lenders for student loans:

	Credit unions	Online lenders
For profit	No	Yes
Physical branches available	Yes	No
Location	Local or nationwide	Nationwide
How to apply	Might be able to apply online Some credit unions might require in-person application	Can only apply online
Membership or previous account required	Yes	Typically no

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. This is easy with Credible — you can compare your prequalified rates from our online partner lenders in the table below in two minutes.

Lender	Fixed Rates From (APR)	Variable Rates From (APR)	Loan terms (years)	Loan amounts
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. View details	4.53%+¹⁰	6.16%+¹⁰	5, 7, 10, 12, 15, 20 (depending on loan type)	$2,001* to $400,000
Fixed APR: 4.53%+¹⁰ Variable APR: 6.16%+¹⁰ Min. credit score: Does not disclose Loan amount: $2,001* to $400,000 Loan terms (years): 5, 7, 10, 12, 15, 20 Repayment options: Full deferral, fixed/flat repayment, interest only, academic deferment, military deferment, forbearance, loans discharged upon death or disability Fees: None Discounts: 0.25% to 1.00% automatic payment discount, 1% cash back graduation reward Eligibility: Must be a U.S. citizen or permanent resident or DACA student enrolled at least half-time in a degree-seeking program Customer service: Email, phone Prequalified rates with a soft credit check: Yes Cosigner release: After 12 on-time principal and interest payments Loan servicer: Launch Servicing, LLC
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. View details	4.99%+¹	6.37%+	5, 10, 15	$1,000 to $350,000 (depending on degree)
Fixed APR: 4.99%+¹ Variable APR: 6.37%+ Min. credit score: 720 Loan amount: $1,000 to $350,000 Loan terms (years): 5, 10, 15 Loan types: Any private or federal student loan Repayment options: Full deferral, full monthly payment, interest only, immediate repayment, academic deferment, military deferment, forbearance, loans discharged upon death or disability Fees: Late fee Discounts: Autopay, loyalty Eligibility: Available in all 50 states (international students can apply with a creditworthy U.S. citizen or permanent resident cosigner) Customer service: Email, phone, chat Soft credit check: Yes Cosigner release: After 36 months Loan servicer: Firstmark Services
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. View details	4.49%+^2,3	5.59%+^2,3	5, 8, 10, 15, 20	$1,000 up to 100% of the school-certified cost of attendance
Fixed APR: 4.49%+^2,3 Variable APR: 5.59%+^2,3 Min. credit score: Does not disclose Loan amount: $1,000 up to cost of attendance Loan terms (years): 5, 8, 10, 15, 20 Repayment options: Full deferral, full monthly payment, fixed/flat repayment, interest only, immediate repayment, academic deferment, forbearance, loans discharged upon death or disability Fees: Late fee Discounts: Autopay Eligibility: Must be a U.S. citizen or permanent resident and be making satisfactory academic progress. Customer service: Email, phone Prequalified rates with a soft credit check: Yes Cosigner release: After half of the scheduled repayment term has been completed Loan servicer: College Ave Servicing LLC ^{Learn more about cosigner release requirements. Requesting prequalified rates on Credible is free and doesn't affect your credit score. However, applying for or closing a loan will involve a hard credit pull that impacts your credit score and closing a loan will result in costs to you.}
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. View details	4.43%+	5.39%+	7, 10, 15	$1,000 to $99,999 annually ($180,000 aggregate limit)
Fixed APR: 4.43%+ ¹¹ Variable APR: 5.39%+ ¹¹ Loan amount: $1,000 to $99,999 annually ($180,000 aggregate limit)¹¹ Loan terms (years): 7, 10, 15¹¹ Repayment options: Full deferral, immediate repayment, interest-only repayment, flat/full repayment, academic deferment, military deferment, forbearance, loans discharged upon death or disability Fees: None Discounts: Autopay¹¹ Eligibility: Available to borrowers in all 50 states. Must be a U.S. citizen or permanent resident. Customer service: Phone, email Prequalified rates with a soft credit check: Yes Cosigner release: After 36 months¹¹ Loan servicer: American Education Services Min. income: $1
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. View details	6.25%+⁷	8.13%+⁷	7, 10, 15	$1,000 to $200,000
Fixed APR: 6.25%+⁷ Variable APR: 8.13%+⁷ Min. credit score: 750 Loan amount: $1,000 to $200,000 Loan terms (years): 7, 10, 15 Repayment options: Full deferral, full monthly payment, interest only, immediate repayment, academic deferment, loans discharged upon death or disability Fees: Late fee Discounts: Autopay Eligibility: Must be a U.S. citizen or permanent resident and have a minimum income of $30,000. Customer service: Email, phone Soft credit check: Yes Cosigner release: After 24 months Loan servicer: Firstmark Services
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. View details	4.6%+⁸	7.64%+⁸	5, 10, 15	$1,001 up to 100% of school certified cost of attendance
Fixed APR: 4.6%+⁸ Variable APR: 7.64%+⁸ Min. credit score: 670 Loan amount: $1,001 up to cost of attendance Loan terms (years): 5, 10, 15 Repayment options: Full deferral, full monthly payment, interest only, immediate repayment, academic deferment, forbearance Fees: Late fee Discounts: Autopay, reward for on-time graduation Eligibility: Must be an Indiana resident or a U.S. citizen attending an eligible Indiana school Customer service: Email, phone, chat Prequalified rates with a soft credit check: Yes Cosigner release: After 12 months Loan servicer: American Education Services
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. View details	5.35%+	N/A	10, 15	$1,500 or $2,000 up to school’s certified cost of attendance (depending on school type and minus other aid received)
Fixed APR: 5.35%+ Variable APR: N/A Min. credit score: 670 Loan amount: $1,500 up to cost of attendance less aid Loan terms (years): 10, 15 Repayment options: Full deferral, interest only, immediate repayment, academic deferral, forbearance Fees: None Discounts: None Eligibility: Must be a U.S. citizen or permanent resident and be making satisfactory academic progress. Customer service: Email, phone Prequalified rates with a soft credit check: Yes Cosigner release: After 48 months Loan servicer: American Education Services (AES)
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. View details	4.50%⁹ - 15.49%⁹	6.37%⁹ - 16.70%⁹	10 to 20	$1,000 up to 100% of school-certified cost of attendance
Fixed APR: 4.50%⁹ - 15.49%⁹ Variable APR: 6.37%⁹ - 16.70%⁹ Min. credit score: Does not disclose Loan amount: $1,000 up to 100% of school-certified cost of attendance Loan terms (years): 10 to 20⁹ Repayment options: Full deferral, fixed/flat repayment, interest only, academic deferment, forbearance, loans discharged upon death or disability Fees: Late fee, non-sufficient funds (NSF) fee Discounts: Autopay Eligibility: Must be a U.S. citizen or permanent resident. Also available to non-U.S. citizen students (including DACA students) attending a school located in the U.S. who apply with a qualifying cosigner. Customer service: Phone, chat Prequalified rates with a soft credit check: Yes Cosigner release: Borrowers can apply after graduation, 12 consecutive on-time principal and interest payments, and meeting certain credit requirements. Loan servicer: Sallie Mae
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Lowest APRs reflect autopay, loyalty, and interest-only repayment discounts where available \| Read our full methodology \| ¹⁰Ascent Disclosures \| ¹Citizens Disclosures \| ^2,3College Ave Disclosures \| ¹¹Custom Choice Disclosures \| ⁷EDvestinU Disclosures \| ⁸INvestEd Disclosures \| ⁹Sallie Mae Disclosures

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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. Credible makes this easy — you can compare your prequalified rates from multiple lenders in just two minutes.

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Credit union student loans: Frequently asked questions

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.

Check Out: Paying for Trade School: Financial Aid and Student Loans

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.

Learn More: How to Get Student Loans for Community College

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.

Keep Reading: How to Pay for College With No Money Saved

About the author

Lindsay VanSomeren

Lindsay VanSomeren specializes in credit and loans. Her work has appeared on Credit Karma, Forbes Advisor, LendingTree, and more.

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