Are you looking for Navy Federal student loan refinance then you are on the right place. If you are a current member of Navy Federal Credit Union or are looking to join a credit union, Navy Federal may be an excellent option for you to refinance. You can use the Navy Federal student loan refinance to refinance your current student loan while reducing the interest rate and monthly payments.
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Navy Federal Credit Union, also known as Navy Federal, is listed as the largest natural member credit union in the US in terms of membership and asset size. In 2015, it began offering student loans. Navy Federal Credit Union members, especially those with an Associate degree, have access to its refinance loans.
Uncover the advantages of consolidating your student loans through UW Credit Union Student Loan Refinance and take control of your finances with ease.
This article will highlight the key features and benefits of Navy Federal student loan refinance, exploring how it is a valuable resource for borrowers aiming to tackle the complexities of student loan repayment.
Education Loan Refinancing for Parents and Students Offered by Navy Federal
Loan Refinancing Options:
- Federal student loans
- Private student loans
- Private parent loans (in parent’s name only)
- Federal Parent PLUS loans (in parent’s name only)
Navy Federal offers student refinance loans as well as parent refinance loans. You may be able to save time and money by refinancing your federal and private student loans through Navy Federal student loan refinance. Let’s check out the features and rates of each loan:
Student Refinance Loans
- Competitive rates of interest
- You can lower your interest rate by 0.25% by setting up automatic payments
- Option to pay early, lower your monthly payment, or save interest
- No origination or application fees
- After 12 consecutive timely principal and interest payments, a co-signer can request redemption
Rates
| Fixed APR as low as | 4.85% (with autopay) |
| Variable APR as low as | 6.39% (with autopay) |
| Terms | 5, 10, or 15 years |
Parent Refinance Loans
- Competitive rates of interest
- You can lower your interest rate by 0.25% by setting up automatic payments
- Option to pay early, lower your monthly payment, or save interest
- No origination or application fees
- After twelve consecutive timely principal and interest payments, a co-signer can request redemption
Rates
| Fixed APR as low as | 4.85% (with autopay) |
| Variable APR as low as | 6.39% (with autopay) |
| Terms | 5, 10, or 15 years |
Navy Federal Student Loan Refinance Eligibility Requirements
To be eligible for Navy Federal student loan refinancing, you must meet certain eligibility criteria. These include:
- Credit Score: You must have a good credit score. Boost your likelihood of qualifying for refinancing. Navy Federal does not disclose the minimum credit score for student loan refinancing.
- Citizenship: Borrowers must have US citizenship or permanent residency to qualify for Navy Federal student loan refinancing.
- Location Requirement: Refinancing is accessible across all 50 US states and Puerto Rico.
- Minimum Income: Borrowers must have a minimum annual income of $24,000, or a minimum annual income of $1,200 with one qualifying co-signer.
- Loan Limits: Borrowers must have a minimum of $7,500 to refinance their student loans. The maximum loan limit is $175,000.
- Graduation Requirement: The borrower must be a graduate of an accredited institution.
Navy Federal Student Loan Refinance Rates
Fixed rates offered by Navy Federal range from 4.60% to 10.70%. Variable rates range from 6.89% to 14.19%. Keep in mind that a 0.25% reduction in interest is always included in the lowest rates when you sign up for autopay.
Navy Federal’s top fixed rate climbed 3.1% in 2023 (from 10.38% APR), while its lowest fixed rate for new loans rose 24.7% (from 3.69% APR).
The highest introductory variable rate has increased by only 17.9% (from 12.04% APR), while the lowest available variable rate has increased by 47.9% (from 4.66% APR).
The lowest and highest fixed rates offered by Navy Federal were increased by 23.4% and 15.5% respectively in 2022. The lowest and highest accessible variable rates saw an increase of 189.4% and 15.0%.
Refinance Loan Rates
| Term | Fixed Rate | Variable Rate |
| 5 Year | 4.60% – 9.00% | 6.89% – 13.49% |
| 10 Year | 6.05% – 10.50% | 8.19% – 13.84% |
| 15 Year | 6.60% – 10.70% | 8.94% – 14.19% |
Additional Fees
Any lender charges some additional fees apart from the interest rates for refinancing during the loan service period. Navy Federal may or may not charge some additional fees to refinance your student loans with Navy Federal. Let’s find out what they are!
- Application Fee: No application fee is required for rates and approval.
- Disbursement Fee: Undisclosed disbursement fee (charged to lenders for allocating funds toward repayment of refinanced loans).
- Loan Origination Fee: Zero loan origination fee (charges for initiating a new loan).
- Late Payment Fee: $20 (fee associated with a late payment)
- Collection Fee: Not disclosed (fee of collection)
- Prepayment Penalty: No fee for making extra payments to reduce the balance of a refinance loan or for early settlement.
- Returned Payment Fee: $10 fee for payments that bounce due to insufficient funds.
Repayment Options
- Repayment Options in Schools
- Fixed Repayment: During the grace period and while enrolled in school, make $25 monthly payments.
- Repayment with Interest Only: During the grace period and while you are enrolled in school, make interest-only installments.
- There is no complete in-school deferment.
- Repayment Options After School
- There is a grace period of six months. During this period, an interest-only or $25 active payment is still required.
- Income-based repayment is not available.
- Forbearance: The Navy Federal provides forbearance assistance for individuals experiencing challenges with federal payments. This support is extended up to 18 months, given in increments of six months each. Notably, the Navy does not offer a federal deferment option. Forbearance can be used in a variety of situations, such as unemployment, financial difficulties, school enrollment, and active-duty military service.
- Co-signer Release: Release of co-signers is available after completion of 12 consecutive payments.
- Available Death Discharge: The remaining loan amount is payable to the estate of the deceased borrower. Any property owned by the estate will be subject to standard collection procedures. The co-signer will no longer be responsible for the repayment of a student refinance loan.
- No disability discharge is available. Additionally, loan discharge is also not available in case of death or disability of the co-signer.
- Repayment Preferences
- Allows automatic payment installments of more than the minimum.
- Does not accept automatic biweekly payments.
Why Should You Choose Navy Federal to Refinance Your Student Loans?
Navy Federal student loan refinancing offers you several benefits. There are many compelling reasons to choose Navy Federal for refinancing. Let’s explore:
- Competitive Interest Rates: With Navy Federal student loan refinance, you can replace your high-interest loans with a rate that more matches your lifestyle and budget.
- Flexible Rates and Terms: You can choose to make as low a monthly payment as possible or pay off your loan early.
- 0.25% Reduction in Interest Rates: You can take advantage of the 0.25% low-interest rate by setting up automatic monthly payments.
- Borrow as Per Need: Refinancing is available for debts up to $125,000 from undergraduate student loans and $175,000 from graduate debt.
- Release Your Cosigner: By releasing your cosigner from your loan after 12 consecutive, full principal as well as interest payments, you can provide them with additional flexibility.
- Complete in 5 Minutes: It only takes a few minutes to apply for Navy Federal student loan refinancing. You can complete the entire application process online in just 5 minutes.
How to Apply for Navy Federal Student Loan Refinancing?
Step 1: Gather Information and Documentation
When you decide to refinance your student loans through Navy Federal student loan refinance, be prepared to provide the following documents with your application. These include:
- Name, social security number, and date of birth
- Phone number, email address, and permanent address
- Basic information about your degree and school
- What type of student loan you are refinancing – federal or private
- Income per year
- The loan amount you are seeking
Step 2: If Necessary, Include a Co-signer
If you don’t make at least $24,000 a year, or if your credit history isn’t that good, it may be a smart idea to add a creditworthy co-signer. Having a co-signer on your loan can help reduce the interest rate and improve your chances of getting approved.
Step 3: Choose Your Loan Terms And Submit Other Documents
You’ll still need to submit some documents, such as proof of your graduate degree and proof of income before the job is done. Additionally, you’ll need to decide on a 5/10/15-year loan type with a fixed or variable rate, choose the loans you want to refinance, and set up your payment schedule.
Step 4: Sign Your Loan Agreement
When approved, you will be required to sign a disclosure form and loan agreement. After that, Navy Federal will transfer the loan balance to your existing lender. This may take up to 30 days. You must continue making loan payments on time in the meantime until Navy Federal verifies that the loan transfer is complete.
FAQs
1. Can I refinance a Navy Federal loan?
Navy Federal student loans, student loans from another private lender, and federal loans can all be refinanced. The number of times a borrower can refinance with Navy Federal is unlimited. Applying for a new line of credit involves an extensive credit check which has the potential to reduce your FICO score.
2. Does the Navy Federal offer a grace period?
No, Navy Federal Credit Union does not offer any specific grace period for loans or credit cards, but it may respect already-existing grace periods,
3. What’s the purpose of refinancing student loans?
You can lower your monthly payment amount, avoid paying more interest, or speed up loan payoff by refinancing your student loans. When you combine multiple student loans into one, you only have to make one loan payment instead of several, which can make repayment easier.
4. Can I refinance both federal and private student loans?
Yes, you can refinance both federal and private student loans with Navy Federal student loan refinance. Benefits associated with federal student loans are not transferable. Hence, before refinancing your federal student loans, it is advisable that you need to evaluate your current and potential future benefits.
5. Can I refinance loans that have already been refinanced?
Yes, you are allowed to refinance your loans with Navy Federal whenever you want. Keep in mind that you must submit a new application for each refinance. This is because each application requires a strict credit check, which can have an impact on your credit score.
Conclusion
Refinancing your student loans with Navy Federal can help you pay off your loan sooner, save money on interest, and lower your monthly payment amount, whether you’re a parent or a student. Navy Federal student loan refinancing proves to be a valuable resource for individuals aiming to better manage their student loans.
Boasting competitive rates and adaptable terms, it offers the chance to save money and streamline repayment processes. Overall, the Navy Federal student loan refinancing program stands out as a promising tool for those looking to enhance their overall student loan management.
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