Do Credit Unions Offer Student Loans?

Yes, some credit unions do offer student loans. However, your mileage may vary when it comes to your local credit union.

Student loans are niche lending products for credit unions, and some of the largest credit unions will offer both private student loans and student loan refinancing. 

There are also organizations like CU Select, which matches prospective borrowers with credit unions that offer student loans. They work with a network of 225+ credit unions to help match you with one that can offer you a student loan that meets you needs.

What Are Credit Unions?

Credit unions are not-for-profit financial cooperatives that provide banking services to their members.

Unlike commercial banks that aim to maximize profits for shareholders, credit unions return surplus income to their members in the form of lower fees, better interest rates, and more personalized customer service. Members of credit unions share a common bond, such as living in a specific geographic area, working for a particular employer, or belonging to a certain organization.

Credit Union Private Student Loans

Private student loans should be the last resort to pay for college. But many families still do take out student loans each year. Most families look at traditional private student loan lenders, like Sallie Mae.

However, credit unions may offer better rates and terms for borrowers.

For example, credit unions in the CU Select network are currently advertising rates as low as 3.99% for a fixed rate loan. That’s about 0.50% lower than what we’re seeing at private banks and other lenders.

This is a compelling reason to include credit unions in your loan shopping.

Credit Union Student Loan Refinance

Credit unions also offer student loan refinancing. Student loan refinancing is for borrowers with existing student loans who may want to lower their interest rate.

More credit unions have historically been willing to offer student loan refinancing. Again, CU Select has a network of credit unions that will refinance your student loans. The best rates here are also about 1% lower than what you’ll see from other private lenders.

People Also Ask

Do Banks Offer Student Loans?

Yes, bank banks offer student loans. Popular banks that offer student loans include Citizens Bank and ELFI.

Do Credit Unions Give Loans Easier?

Not necessarily. Credit unions are known to be more flexible in their lending standards, but that doesn’t mean the process is easier than a bank.

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