Navy Federal Credit Union: Private Student Loans & Refinance Options

For military service members, veterans, and their families, Navy Federal Credit Union offers more than just traditional banking. If you’re a member—or eligible to become one—you may also have access to some highly competitive student loan and refinancing options.

Whether you’re currently in school or several years into repayment, Navy Federal could be a valuable resource in helping you manage your student loan debt. Here’s what you need to know:

Private Student Loans

To apply for a private student loan through Navy Federal, you’ll need to be a credit union member and either a U.S. citizen or a legal resident. You must also be enrolled at least half-time in an eligible academic program and maintain a minimum GPA of 2.0 to remain eligible. Applications are submitted online through Navy Federal’s lending partner, LendKey.

Loan amounts range from as little as $2,000 up to $120,000 for undergraduate borrowers and up to $160,000 for graduate students. Interest rates are competitive, with fixed APRs starting at 4.75% and variable APRs beginning at 6.95%, both of which assume enrollment in autopay. Borrowers can choose between 5- or 10-year repayment terms, depending on their financial goals.

One appealing feature of Navy Federal’s private student loans is the potential for co-signer release after just 24 consecutive on-time monthly payments. Automatic payments also qualify borrowers for a 0.25% interest rate discount, which is an easy way to save a bit more over time.

During the application process, be prepared to provide income documentation and school enrollment verification. While these are standard requirements, they’re essential for ensuring you secure the best rate possible.

Student Loan Refinancing

Navy Federal also offers student loan refinancing for borrowers looking to lower their interest rate, simplify repayment, or extend their loan term. Refinancing is available to members including active-duty service members, veterans, and eligible military family members (such as spouses or dependents).

To qualify for refinancing, borrowers must have at least $7,500 in existing student loan debt. The maximum refinance amount is $125,000 for undergraduate loans and $175,000 for graduate-level debt. Applicants will need a strong credit profile (typically a credit score around 670 or higher) and must demonstrate an annual income of at least $24,000 on their own or $1,200 with a qualified co-signer.

Refinancing terms are available for 5, 10, or 15 years, and borrowers can choose between fixed and variable interest rates. Another borrower-friendly feature: co-signers may be released from the loan obligation after just 12 on-time monthly payments.

As with Navy Federal’s private student loans, all refinancing is handled through LendKey, their third-party platform. Funds from a refinanced loan can be used to pay off federal or private loans and can cover the full certified cost of attendance, including tuition, fees, books, and living expenses.

Important Considerations

Before refinancing federal student loans, it’s important to weigh the trade-offs. When you refinance a federal loan into a private one, you forfeit access to important federal protections, like income-driven repayment plans, Public Service Loan Forgiveness (PSLF), and potential relief in cases of economic hardship.

SLP Tip: Proceed With Caution

At Student Loan Professor, we generally urge caution before refinancing federal loans. If you’re eligible for programs like PSLF, Teacher Loan Forgiveness, or income-driven repayment, refinancing might not be the right move. While Navy Federal offers competitive rates and solid borrower perks, it’s important to know exactly what you’re giving up in the process.

Need Help Navigating Your Decision?

If you’re unsure whether borrowing or refinancing through Navy Federal is right for you, we’re here to help. Student Loan Professor offers personalized consultations to help you compare your options, weigh the pros and cons, and choose the strategy that best fits your financial future.

Schedule a personalized consultation and we’ll walk you through your options, including whether private loans or federal repayment strategies are a better fit for your goals.