PenFed Credit Union: If you are a student looking for a loan or you want to refinance your loan, there is good news. The good news is that Pentagon Federal Credit Union is here for you.
Pentagon Federal also called PenFed, is a credit union that primarily serves government employees. It serves government employees like military members and their families. Also, it serves members of certain associations or organizations such as the American Red Cross.
PenFed Credit Union provides student loan refinancing options through Purefy Student Loans. Also, it provides auto loans, mortgage and home equity loans, and personal loans.
You can find out more about whether you should refinance your educational debt in this PenFed student loan refinancing review.
Why you need PenFed Credit Union
As a student you need PenFed Credit Union because it will help refinance both your private and federal loan. Also, it refinances Parent PLUS loans parents may have taken out for their child.
This refinancing could help you to reduce your monthly payments on existing student loan debt. It does this by lowering your interest rate or changing your loan repayment term.
Also, the PenFed Credit Union interest rates on refinance loans are okay. They are in competition with other student loan refinancing companies.
Be that as it may, there are also advantages and disadvantages associated with Pentagon Federal Credit Union.
How to Qualify for PenFed Credit Union
To qualify for PenFed Credit Union student’s loan refinancing, you need to have earned at least a bachelor’s degree, and be a U.S. citizen.
To qualify on your own, you need a credit score of at least 700, and annual income of no less than $42,000. If you want to refinance more than $150,000 in debt without a cosigner, you need a credit score of at least 725, and at least $50,000 in income.
However, if you cannot qualify on your own, you may be approved if you apply with a cosigner. With a cosigner, you can qualify for PenFed refinancing with a credit score as low as 670 and a minimum annual income of $25,000.
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PenFed Credit Union Student Loan Refinancing-Eligibility Criteria
Also, to qualify for PenFed Credit Union student’s loan refinancing, you must first be a member of the credit union. Generally, you can become a PenFed member through military service. You can be a member through government employment.
You also must meet other eligibility criteria to refinance your student debt with PenFed. These criteria include the following:
- You must be a U.S. citizen.
- Meet the age of maturity in your state.
- You should have at least one educational loan that has been fully disbursed.
- Be the primary borrower.
- Have a bachelor’s degree or higher.
- Provide proof of income.
- For loans less than $150,000, you need a credit score of at least 670. Or, you provide a cosigner with a credit score of at least 720.
- For loans greater than $150,000, either you or your cosigner will need a credit score of at least 725.
If you are not able to qualify for a PenFed Credit Union student loan on your own, apply with a cosigner. Cosigners share responsibility for the loan and could be held responsible for repayment. That is, if the primary borrower fails to pay back the loan on time.
Pros of PenFed Credit Union Student Loans Refinancing
The following are some of the advantages of Pentagon Federal Credit Union;
Interest Rates are Competitive
This is one of the advantages of PenFed Credit Union student’s loan refinancing.
The rates for both fixed and variable rate loans are below the rates charged by many other student loan refinance lenders.
There are no fees
In this Credit Union student’s loan refinancing there are no fees. You will not pay any fees to apply for or originate your loan.
Also, you do not pay any extra fees if you decide that you want to repay your loans ahead of schedule.
The Refinancing Process is Quick
With PenFed Credit Union student’s loan refinancing, the refinancing process is quick. Once you have been approved for a loan, it takes only 3 to 15 days.
This is for your loan servicers to receive the funds from PenFed to pay off your outstanding debt balance.
Short Cosigner Release
If you take out a loan with a cosigner, you can apply to have your cosigner released from the loan after just 12 months. This happens when there are consecutive and on-time payments.
It is important to know that some other lenders do not offer release until after 36 monthly payments.
Cons of PenFed Credit Union Student Loans refinancing
Income Requirements are High
With PenFed Credit Union student’s loan refinancing, many borrowers cannot meet the requirements unless they have a cosigner.
Also, PenFed’s minimum income for cosigners is higher than the minimum income of other competitors.
Credit Requirements are High
If you are looking for a student loan refinance with limited or fair credit, PenFed Credit Credit student’s loan refinancing might not be right for you.
Some other lenders require credit scores as low as 600, while others do not require a minimum credit score at all.
Membership is Required
Also, PenFed Credit Union student’s loan refinancing requires you to be a member before they can offer you help. As a result of this, not everyone is able to refinance their student loans with PenFed.
In a Nutshell
In summary, please know this. PenFed’s interest rates are competitive if you or your cosigner possesses a good enough credit history.
However, PenFed student’s loan refinancing, loans may be difficult to qualify for due to some of the requirements. If you think PenFed is not right for you, check out other student loan refinancing companies. This will help you know what other top lenders have to offer.