PenFed Credit Union Review – Student Loan Refinancing

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Many professionals, as well as students and their families, have found it necessary to contract a student loan, either private or federal, to achieve self-improvement goals.

The provision of this credit tool has made it possible for more people to afford their studies and the consequent impact they have on the labor market.

However, once the studies are completed, you won’t find it always easy to repay the loan.

If you have particular circumstances that make it difficult to make payments you’re probably among those who think about consolidating or refinancing your student loan(s), and that’s exactly what PenFed Credit Union offers.

In this article, we are going to analyze whether this service is reliable or not, and the way in which it works out to ease your debt. Let’s get started:

How does PenFed work

The first thing to do in order to obtain a refinancing plan is to register a user, although it is not necessary to do so to obtain the refinancing rate since they make available a tool to calculate that.

Now, they are strict with the credit score. So, in order to apply, you need to have a score between 660 and 840.

In addition, part of the policy of this company is that those who apply must be graduates, so if you are still studying, this is not the right refinancing option for you.

Note: Refinancing is particularly an excellent solution for graduates who work and have high-interest rates on current outstanding student loans, or who need to reduce their monthly payments.

In this regard, PenFed Credit Union offers you two options to deal with your debt:

Consolidation and Refinancing

As for Loan consolidation, it combines several loans into one new loan with a single monthly payment but does not reduce the payment or interest rate.

  • You are also free to request a consolidation with the U.S. Department of Education.
  • With consolidation, you only have one loan and one monthly payment, making it easier to follow than multiple loans with different balances and different rates.

Similar to consolidation, refinancing a student loan combines multiple loans into one, the main difference is that you get a new interest rate and,if you want, a shorter or longer term.

While Direct Consolidation Loans can only be used for federal loans, with a refinance you can combine both private and federal loans. –And you can also include student loans for parents, such as PLUS loans for parents.

Requirements for applying with PenFed Credit Union

To put the requirements in perspective, we will separate them from the financial and legal points of view:

From a financial point of view:

  • For loans up to $1,500,000: The annual income requirement for an individual application is $42,000 or $25,000 with a cosigner, the cosigner must have an annual income of at least $42,000.
  • For loans exceeding $1,500,000: The annual income requirement for an individual application is $50,000, or $25,000 with a cosigner, the cosigner must have an annual income of at least $50,000.

From a legal standpoint:

  • Verification of income: a receipt of payment or tax return.
  • Photo ID: Any state-issued ID card with your picture on it.
  • Payment Verification Statements from Each Existing Administrator: A statement that projects the payment amount 10, 15 or 30 days into the future.
  • Graduation verification: copy or photo of the diploma or transcripts.
  • PenFed membership application: included in the application after prior approval.


In PenFed Credit Union they are not extremely demanding to receive the documents they request, in addition to fax, they are willing to receive photos or screenshots that are sufficiently legible.

Besides, oi their home page you will find the form to know your refinancing rate, which is very simple, you must enter your educational degree, where you graduated, credit score and main email.

They also have a FAQ section that gives a wealth of information on different aspects of refinancing, and they don’t just answer questions about their products. –For example, they explain who should refinance, how a cosigner helps you, how variable rates work, and more.

NOTE: There are PenFed members in all 50 states and the District of Columbia, as well as Guam, Puerto Rico and Okinawa. They are federally insured by NCUA and are a fair housing lender.

To Sum Up

After analyzing the website of this company, which is an associate of Nerdwallet, Credit Karma, Student Loan Hero, The College Investor, among others, is an excellent choice, although you must meet their credit rating standards.

They have a solid board of frequently asked questions, which provides financial education for those who explore it. Finally, the minimum application is $7500 and the maximum is $300,000. So make sure to review your loan before contacting them.

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