Best Places to Find Credit Union Student Loans

You got into college, and now comes the hard part — figuring out how to pay the tuition. If you’ve gone through your grant and scholarship options, but they don’t cover all of your education costs, you can explore student loan options.

An unlikely place to look for student loans is your local credit union. Read on to learn more about credit union student loans and what to consider.

How credit union student loans differ

If you need to borrow money for your college education, you can take out federal or private student loans. It’s best to fill out the FAFSA to see if you qualify for financial aid and get federal student loans first. Federal loans are funded by the federal government and offer benefits like various income-driven repayment (IDR) plans and student loan forgiveness programs.

But sometimes, federal loans aren't enough to cover the full cost of attendance and education supplies. The private student loan market was created because some students had a financial gap even after receiving federal loans.

Private student loans come from non-government lenders, like banks and credit unions. Private loans come with other important distinctions aside from the source of funds. Federal loans have many benefits, like flexible repayment options and offer student loan forgiveness, like PSLF. Many private student loans have limited perks by comparison.

One reason that a private credit union student loan might be attractive is that credit unions prioritize their members’ interests first. When it comes to credit union loans, this is often seen through lower interest rates compared to other private, commercial banks. That rate reduction can lower total costs.

As not-for-profit institutions, credit unions share their profits with members through reduced rates and increased savings. To access credit union student loans, you must be a member of the credit union. Membership is based on a common factor, like where you live, your profession or other affiliation.

Where to find credit union private student loans

If you’re in the market for student loans and need to take on private loans to cover your educational expenses, check out credit union student loan rates. A lower interest rate can save you hundreds to thousands of dollars over your loan term. Here’s where to shop around for credit union private student loans.

1. Your local credit union

It’s hard to mention specific credit unions that would work for you as many are based on your location or your profession.

One way to find local credit unions in your area is to visit:

• ASmarterChoice.org helps you find a credit union in your area and explains the difference between a bank and credit union.
• YourMoneyFurther.com has a direct and simplified credit union finder. Put in your ZIP code and see what’s available in your area.
• MyCreditUnion.gov is the official U.S. government website that helps you track down credit unions in your area. Click on your state on the map, then enter your address to see credit unions nearby.

Using these options, you can fill in your location using your ZIP code, for example, and see the credit unions near you. From there, review each credit union’s loan options to see if it offers student loans and whether you meet its membership eligibility requirements.

When you find a credit union that offers student loans in your area, compare its student loan repayment terms and rates against other private lenders to find the most affordable option.

Compare fixed interest rate loans and variable rate loans. Variable APR loans are based on short-term rates based on economic activity and may increase, which is something to keep in mind. Higher rates can affect the total cost over the life of the loan. Having a solid credit history and excellent credit score can help you qualify for the best rates with a private lender. It's important to know, though, how a variable interest rate can impact interest payments and loan payments.

2. LendKey

If you’re looking for credit union private student loans and want a more centralized experience, browse the credit union lenders on LendKey.

LendKey is a website that aggregates loan information from more than 13,000 community lenders and credit unions and connects lenders with borrowers. According to LendKey, it’s helped over 135,000 student loan borrowers and funded $5. billion in loans.

Using LendKey, you could score even better credit union student loan rates. There are no application fees, and you can choose between variable and fixed rates. However, it should be noted that if you decide to look into student loan refinancing, LendKey only offers a fixed rate at this time. If you don’t have strong credit, you’ll likely need a cosigner to help you get approved for a loan. If that's the case, both undergraduate students and graduate students should see if the lender allows for cosigner release.

Alternatives to credit union student loans

If you need money for school, looking into credit union private student loans makes sense. In some cases, local credit unions can give you the best interest rates and might have additional perks.

However, if you don’t meet the eligibility requirements for membership, here are some private lenders to consider:

• Sallie Mae. Sallie Mae offers multiple options for student loans and has no origination fee or prepayment penalty.
• Earnest. Similar to Sallie Mae, you can get various types of private loans with Earnest. You can also check your eligibility in just two minutes.
• SoFi®. This lender is known for student loan refinancing, but SoFi® also offers private loans. You can find undergraduate loans, graduate loans, MBA loans, law loans and parent loans based on your needs.
• Ascent. Ascent is unique in that it offers cosigner credit-based loans and outcome-based loans without a cosigner. It also offers non-cosigned, credit-based loans that might offer a lower interest rate.

Although these aren’t credit union student loans, they’re still within the category of private student loans. Since lenders and their loan details vary, you can compare which ones offer competitive rates or increased eligibility. Since national lenders, like Sallie Mae, don’t have a membership requirement, there are fewer hoops to jump through to find a student loan.

Do you need a credit union student loan?

If you’ve already maxed out all of your federal student aid, including federal loans, and still have funding gaps, private student loans might be the next solution.

Check out credit union private student loans and private loans from national lenders to find the most competitive offer that you qualify for. Understand you may need to be a credit union member and may need to choose from checking accounts or a savings account to get a loan, but it's best to check the requirements before applying.

Make sure to review details, like minimum or maximum loan amounts, rate discounts on automatic payments (sometimes called autopay), deferment and grace periods. The key is finding the best interest rates and terms that make sense for your situation.

Need help planning for your monthly payments? Get a pre-debt consultation to get support.