- PenFed Student Loans Details
- Types of Student Loans Offered by PenFed
- Who is PenFed Best For?
- Pros and Cons
- How to Apply
- PenFed Trustworthiness
- What Options Do I Have to Repay My PenFed Student Loans?
- PenFed Competitors
- How we rated PenFed Student Loans
- Frequently Asked Questions
Affiliate links for the products on this page are from partners that compensate us (see our advertiser disclosure with our list of partners for more details). However, our opinions are our own. See how we rate student loans to write unbiased product reviews.
PenFed is a solid lender for borrowers who want to refinance a large amount of student loan debt. However, the credit union charges late fees, and it doesn't offer variable-rate loans.
PenFed Student Loans Overview
PenFed doesn't originate undergraduate or graduate student loans, and instead refers you to its partner, Ascent, when you go to apply for one on its website. PenFed has a loan amount range of $7,500 to $500,000.
Members of the military and employees of qualifying organizations will automatically qualify for a membership. But anyone can become a member by opening a savings account with a $5 minimum deposit. You need to be a member to get a loan.
Always consider your federal student loan options before refinancing into any low interest private student loan, including one with PenFed. You'll usually get better terms and protections through the government.
PenFed has 24/7 customer service through its website, and you're able to fill out a form to talk to somebody on the phone, or use the credit union's chatbot.
Types of Student Loans Offered by PenFed
PenFed only offers student loan refinancing, though it does on a variety of loans, including:
- Undergraduate
- Graduate
- Parent loans
Who is PenFed Best For?
PenFed is best for borrowers looking to refinance who are already members of the credit union — or who don't mind paying a nominal $5 fee to become one. Additionally, if you want to refinance a large amount of debt, in this case up to $500,000, you may like PenFed.
PenFed Student Loan Refinancing Apply now lock icon An icon in the shape of lock. Compare loan options and get your rates today.
Insider’s Rating A five pointed star A five pointed star A five pointed star A five pointed star A five pointed star Icon of check mark inside a promo stamp It indicates a confirmed selection. PerksRegular Annual Percentage Rate (APR)Fixed: 7.74% - 9.93%
Feeslate fee of 20% of the interest owed, with a minimum of $5 and a maximum of $25
Recommended Credit670
Loan Amount Range$7,500 to $500,000
Pros- Check mark icon A check mark. It indicates a confirmation of your intended interaction. Cosigners allowed
- Check mark icon A check mark. It indicates a confirmation of your intended interaction. Fast application process
- Check mark icon A check mark. It indicates a confirmation of your intended interaction. High maximum loan amount
- con icon Two crossed lines that form an 'X'. Membership required
- con icon Two crossed lines that form an 'X'. Undisclosed timeline on approval process
- con icon Two crossed lines that form an 'X'. No variable rate loans
- con icon Two crossed lines that form an 'X'. Late fees
PenFed is a solid lender for borrowers who want to refinance a large amount of student loan debt. However, the credit union charges late fees, and it doesn't offer variable-rate loans.
Product Details- Members of the military and employees of qualifying organizations will automatically qualify for a membership, but anyone can become a member by opening a savings account with a $5 minimum deposit
- PenFed doesn't disclose the length of its approval process
- Five, eight, 10, and 15 year repayment term lengths
Pros and Cons of PenFed Student Loans
Pros
- Cosigners allowed. Enlisting a cosigner on your student loan can help you qualify for financing more easily or get you a lower rate.
- Fast application process. It will only take about 15 minutes to apply, allowing you to get your rate quickly.
- High maximum loan amount. You're able to borrow up to $500,000 with PenFed, making it a great choice for borrowers who want to refinance a considerable amount of debt.
Cons
- Membership required. You'll need to be a member to get a loan. You're automatically eligible if you're in the military or an employee of a qualifying organization. But anyone can become a member simply by opening a savings account with a $5 minimum deposit.
- Undisclosed timeline on approval process. Neither PenFed's website nor a customer service representative was able to detail how long the approval process takes. Other lenders are more transparent about the amount of time it takes to get approved.
- No variable-rate loans. Variable rates often start lower than fixed rates, though they are subject to change periodically. If you want a variable-rate loan, you'll have to choose a different lender.
- Late fees. PenFed charges a late fee of 20% of the interest owed, with a minimum of $5 and a maximum of $25.
How to Apply for a PenFed Student Loan
Accept your loan offer. After you get all your documents in order, PenFed will send you a formal loan agreement. The credit union will fund your loan after you sign on the dotted line.
Compare Student Loan Rates
Today's student loan rates will vary by loan issuer, and even small differences in interest rates will add up over time. Compare rates from the best student loan refinance companies and best private student loans using the tool below.
Are PenFed Student Loans Trustworthy?
PenFed has an A+ rating from the Better Business Bureau, non-profit organization focused on consumer protection and trust. The BBB determines its score by evaluating a company's response to customer complaints, truthfulness in advertising, and transparency about business practices.
PenFed doesn't have any recent public controversies.
Between its top-notch BBB score and clean history, you might decide you're comfortable taking out a personal loan with PenFed.
What Options Do I Have to Repay My PenFed Student Loans?
PenFed only offers one option to repay your refinanced student loans — full payments. This includes the principal of your loan plus its associated interest costs.
PenFed Student Loan Alternatives
PenFed vs. SoFi Student Loans
If your credit isn't in the best shape, PenFed's maximum interest rate is lower than what you could pay with SoFi. SoFi won't charge any late fees, while PenFed may penalize you up to $25 for a delayed payment.
PenFed vs. Earnest Student Loans
PenFed has a higher minimum APR than Earnest on its fixed loans, and PenFed doesn't offer variable loans while Earnest does. You could get a great rate with Earnest if you have a good credit score. There are no origination fees or prepayment penalties with either lender.
How we rated PenFed Student Loans
We rate all student loan products in our reviews and guides on a 1-5 scale. The overall rating is a weighted average that takes into account seven different categories, some of which are judged more heavily than others. They are:
- Interest rate (20% of rating)
- Fees (20% of rating)
- Term lengths (15% of rating)
- Repayment options while in school (15% of rating)
- Borrower accessibility (15% of rating)
- Customer support (7.5% of rating)
- Ethics (7.5% of rating)
Each category's weighting is determined based on its importance to your borrowing experience. Rates and fees have the most significant impact on the total cost of your loan, so we weigh those the most heavily. Customer support and ethics are still crucial parts of the borrowing experience, but do not directly tie to a student loan's terms, so they have less of an impact on the overall rating.
Read more about how we rate student loans >>
PenFed Frequently Asked Questions
Is PenFed good for refinancing? Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.PenFed is a good option for refinancing. However, you may find lower rates elsewhere.
Will PenFed student loans be forgiven? Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.No, PenFed student loans will not be forgiven. No private loans are eligible for forgiveness.
What credit score do I need to refinance with PenFed? Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.The minimum credit score is 670 to refinance a student loan through PenFed. You may get a better rate if you have a higher score.
Do I need to be a PenFed member to refinance my student loan? Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.PenFed student loan refinancing requires membership in the credit union. However, anyone can become a member simply by opening a savings account with a $5 minimum deposit.
Ryan Wangman, CEPF Loans Reporter Ryan Wangman was a reporter at Personal Finance Insider reporting on personal loans, student loans, student loan refinancing, debt consolidation, auto loans, RV loans, and boat loans. He is also a Certified Educator in Personal Finance (CEPF).In his past experience writing about personal finance, he has written about credit scores, financial literacy, and homeownership. He graduated from Northwestern University and has previously written for The Boston Globe. Read more Read less Top Offers From Our Partners 
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