PenFed Student Loan Refinance Review: Competitive Rates and Multiple Ways to Refinance

PenFed Scholar Mortgage Refinance Overview At A Look:

  • PenFed can refinance as much as $300,000 of federal and personal pupil loans.
  • The lender has pretty strict wage and credit score necessities.
  • Mum or dad PLUS mortgage refinancing and a cosigner launch possibility are each accessible.

Pentagon Federal Credit score Union, extra generally generally known as PenFed, is a monetary establishment that serves all 50 states in the USA; Washington, D.C.; in addition to Guam; Puerto Rico; and Okinawa.

PenFed Credit score Union provides a number of monetary merchandise, together with pupil mortgage refinancing, which lets debtors consolidate their pupil loans into one cost. PenFed refinances non-public and federal pupil loans and provides each mounted and variable charges.

Word that federal debtors who consolidate their federal loans with PenFed will lose sure advantages corresponding to forbearance, deferment and income-driven compensation plans. On this PenFed pupil mortgage refinance overview, we’ll take a better have a look at the lender’s phrases, advantages, and downsides. Right here’s what it’s essential know.

Word that the COVID-19 pandemic and federal aid measures have impacted many pupil mortgage debtors. To study extra about your choices and whether or not it is best to think about refinancing now, try our information.

PenFed pupil mortgage refinance at a look

PenFed Scholar Mortgage Refinance

Rates of interest

Mounted and variable


5 to fifteen years

Mortgage quantities

$7,500 to $300,000

Minimal credit score rating


To start out your seek for one of the best pupil mortgage consolidation or refinance firm on your state of affairs, examine the professionals and cons of the lender you’re contemplating. Let’s check out the benefits and downsides of refinancing pupil loans with PenFed.


There’s so much to love concerning the PenFed pupil mortgage refinance product which is powered by Purefy. One standout profit is that spouses can refinance their separate loans into one cost. Listed here are a number of extra benefits of refinancing your pupil loans with PenFed:

  • No charges: PenFed doesn’t assess pre-payment penalties, origination or utility charges
  • Versatile mortgage phrases: PenFed provides five-, eight-, 12- and 15-year compensation phrases. The latter two choices might lower your month-to-month funds if wanted. Nevertheless, you’ll want to use with a distinct lender if you happen to’re in search of a 20-year time period.
  • Mum or dad PLUS refinancing: Mum or dad debtors can consolidate PLUS loans with different kinds of federal direct loans, together with sponsored and unsubsidized. Moreover, college students can use a PenFed Mum or dad PLUS refinance to imagine their dad or mum’s debt into their very own title.
  • Verify your price with out impacting your credit score: PenFed’s “Discover My Fee” software performs a tender credit score pull so that you could see your estimated price with out including a tough credit score inquiry to your credit score stories.
  • Cosigner launch: PenFed permits cosigners on refinance loans and pupil mortgage debtors can request their cosigner be launched from the duty after they make 12 consecutive, well timed funds.


Wage necessities, credit score rating minimums and restricted forbearance choices are among the issues debtors must take care of in the event that they refinance their pupil loans with PenFed. Right here are some things to bear in mind earlier than making use of for a refinance mortgage with the corporate:

  • Not accessible to non-graduates or affiliate’s diploma grads: Solely debtors who graduated with a bachelor’s diploma or larger (and are employed) are eligible for pupil mortgage refinancing with PenFed.
  • No concrete forbearance or deferment choices: PenFed doesn’t promote deferment or forbearance. The corporate will work with debtors on a case-by-case foundation, nevertheless, within the occasion they misplaced their job. Forbearance is feasible, however curiosity would accrue throughout that point.
  • Low most mortgage quantities: Whereas many refinancing firms don’t have a hard-fast most mortgage restrict, PenFed debtors can solely refinance as much as $300,000 in pupil loans. The minimal mortgage quantity is $7,500.
  • Inflexible revenue and credit score necessities: You’ll want a cosigner if you happen to don’t meet the next minimal revenue and credit score rating standards:
    • For loans as much as $150,000: The minimal credit score rating is 700 and the minimal annual revenue is $42,000.
    • For loans above $150,000: The minimal credit score rating is 725 and the minimal annual revenue is $50,000.

For those who’re in a position so as to add a cosigner to your mortgage that meets the necessities above, you (the first borrower) will want a minimal credit score rating of 670 and a minimal annual revenue of $25,000.

PenFed pupil mortgage refinance eligibility necessities

There are a handful of primary necessities debtors should meet to refinance their pupil mortgage by PenFed exterior of the monetary ones talked about within the earlier part. Candidates should be:

  • A U.S. citizen
  • Age of majority of their state of residence
  • The borrower of a minimum of one excellent, utterly disbursed non-public training, federal-backed or Mum or dad mortgage
  • The borrower on the coed mortgage utility and on the promissory be aware
  • A graduate with a bachelor’s diploma or larger
  • In a position to present proof of revenue and meet the borrower credit score necessities

Moreover, you should be a PenFed Credit score Union member to refinance your pupil loans with the establishment. There isn’t a requirement for army service and debtors can wait to enroll to turn out to be a member till after they’re permitted.

PenFed pupil mortgage refinance utility course of

Making use of for a mortgage with PenFed is a two-step course of. First, you’ll should disclose data that permits PenFed to conduct an preliminary credit score overview to find out your rate of interest.

This data contains your title, e mail deal with, house deal with, training stage, present wage and housing bills. All of this data will result in a “tender” credit score inquiry or pull and gained’t have an effect on your credit score rating. At this level, you’ll be able to see what kind of APR you’re eligible for.

After reviewing your rate of interest provide, you’ll be able to choose to finish the applying course of, which features a “laborious” credit score pull. Onerous credit score checks might impression your credit score rating quickly. PenFed requires the next gadgets to finish your utility course of:

  • Earnings verification (paystub or tax return)
  • Picture ID (driver’s licenses, passport or state-issued ID card)
  • Payoff verification statements from every of the debtors’ present mortgage servicers (the assertion ought to undertaking the payoff quantity 10, 15 or 30 days into the longer term)
  • Commencement verification (image or copy of your diploma or transcripts)
  • PenFed membership utility (that is solely wanted after your pre-approval)

Must you refinance your pupil mortgage with PenFed?

Whether or not a PenFed pupil mortgage refinance is the best choice is dependent upon your present monetary state of affairs. Contemplate PenFed’s monetary eligibility necessities once more. Primarily based on these necessities, you would possibly wish to refinance with PenFed if you happen to:

  • Earn a big five-figure annual wage
  • Have a robust credit score historical past, OR
  • Have somebody prepared to cosign your mortgage

The final level a few cosigner is essential if the 2 different factors aren’t true. Keep in mind, you need to earn a minimum of $42,000 a yr and have a credit score rating of 700 to use for a mortgage of $150,000 or much less by yourself. And if you wish to borrow greater than $150,000, you’re going to should earn a minimum of $50,000 yearly and have a credit score rating of 725 or extra. These may very well be excessive marks to hit if you happen to’re simply popping out of faculty and never working in a high-paying trade simply but.

The required cosigner might make qualifying for refinancing your mortgage simpler and presumably get you a greater rate of interest. Simply do not forget that the cosigner is tied to you for a minimum of 12 months and their credit score will endure if you happen to don’t make funds on time.

For those who’re drawn to PenFed’s comparatively low mounted and variable APRs and might meet its monetary eligibility necessities (with or with no cosigner), you will have discovered your pupil mortgage refinancing firm. If you need a aggressive rate of interest with much less demanding monetary necessities or don’t have entry to a cosigner, nevertheless, there are different pupil mortgage refinance choices accessible. Try Scholar Mortgage Planner®’s top-rated pupil mortgage refinancing firms for extra data.

Refinance pupil loans, get a bonus in 2021

1 Disclosures
$1,050 BONUS1 For 100k+. $300 bonus for 50k to 99k.1
VISIT LAUREL ROAD Variable 1.64-5.65percent1 Mounted 2.25-5.75percent1

2 Disclosures
$1,050 BONUS2 For 100k+. $300 bonus for 50k to 99k.2
VISIT COMMONBOND Variable 2.49-6.84%%2 Mounted 2.59-6.74percent2

3 Disclosures
$1,000 BONUS3  For 100k or extra. $200 for 50k to $99,9993
VISIT EARNEST Variable 1.88-5.64percent3 Mounted 2.44-5.79percent3

4 Disclosures
$1,000 BONUS4 For 100k+. $300 bonus for 50k to 99k.4
VISIT SPLASH Variable 1.88-6.15percent4 Mounted 2.44-6.62percent4

5 Disclosures
$1,275 BONUS5  For 150k+. Tiered 300 to 575 bonus for 50k to 149k.5
VISIT ELFI Variable 2.39-6.01percent5 Mounted 2.47-5.99percent5

6 Disclosures
$1,000 BONUS6 For $100k or extra. $200 for $50k to $99,9996
VISIT SOFI Variable 2.25-6.59percent6 Mounted 2.49-6.94percent6

7 Disclosures
$1,250 BONUS7  $350 for 50k to 100k7
VISIT CREDIBLE Variable 1.80-8.90percent7 Mounted 2.15-9.15percent7

Unsure what to do together with your pupil loans?

Take our 11 query quiz to get a personalised suggestion of whether or not it is best to pursue PSLF, IDR forgiveness, or refinancing (together with the one lender we predict might provide the greatest price).


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