The Benefits of Student Loan Refinancing with Credit Unions

April 2024

Do credit unions offer student loans?

Yes, credit unions often offer student loans as part of their financial products and services. These loans can vary in terms of eligibility requirements, interest rates, repayment options, and other features. Credit unions may offer private student loans, which are loans that are not funded or guaranteed by the government, as well as refinancing options for existing student loans.

How can offering a student loan solution help a credit union?

Offering student loans can be a valuable service for credit unions. It helps attract and retain members, especially younger demographics who may be seeking financing for higher education. Additionally, by providing competitive rates and flexible repayment options, credit unions can help members manage the cost of education more effectively.

What are the best credit unions for student loans?

The best credit unions for student loans are ones that offer many types of student and parent loans from a non-profit source. Credit unions may offer additional benefits for student borrowers such as flexible repayment options, excellent member support, and competitive interest rates.

What is student loan refinancing?

Student loan refinancing is the process of taking out a new loan to pay off existing student loans, usually with the aim of obtaining more favorable terms such as lower interest rates, reduced monthly payments, or shorter repayment terms.

Why would someone want to refinance their student loan?

There are several reasons why someone might want or need to refinance their student loans. One of the primary reasons is to secure a lower interest rate. If the interest rates have dropped since the borrower originally took out the loan, the borrower may qualify for a lower interest rate through refinancing. Some borrowers are seeking to reduce their monthly payments. Refinancing may help these individuals by spreading out the payments over a longer period. Some borrowers seek to consolidate multiple loans to simplify the repayment process and make it easier to manage finances.

Can I refinance private student loans and if so, how?

Refinancing private student loans with a credit union can help borrowers secure more favorable terms, such as lower interest rates or reduced monthly payments, which can save money over the life of the loan. Each credit union will have its own eligibility requirements for refinancing student loans.

Typically, credit unions will consider factors such as credit score, income, employment status, and debt-to-income ratio when evaluating loan applications. Once you have identified a credit union that you are interested in, you can apply for refinancing online or in-person, depending on the credit union's application process. Be prepared to provide documentation such as proof of income, proof of identity, and information about your existing student loans. After you submit your application, the credit union will review your information and determine if you qualify for refinancing. If approved, you will receive offers detailing the new interest rate, repayment term, and monthly payment amount.

The credit union will guide you through the remaining steps to complete the refinancing process. This may include signing loan documents, authorizing the credit union to pay off your existing student loans, and setting up payments for the new refinanced loan.

Learn more about Corporate Central’s nonprofit student loan solution.