Business Insider's personal finance team compared Navy Federal Credit Union's student loans to the best private student loans of 2025 and found it to be a standard offering.
Best for existing NFCU members, Navy Federal Credit Union's student loans offer rates at 7.24% - 16.60% variable and 4.75% - 14.30 fixed (with AutoPay discount) APR. It has multiple repayment options, including in-school deferment.
Navy Federal Credit Union Student Loans Overview
Navy Federal Credit Union is a good lender for borrowers who value accessible customer support and have a preexisting relationship with the credit union. However, its minimum interest rates can be higher than competitors, and the only repayment term options are 5 or 10 years.
7.24% - 16.60% variable and 4.75% - 14.30 fixed (with AutoPay discount)
Undisclosed
- Low maximum interest rate
- Automatic payment discount
- 24/7 customer support
- Small loan minimum
- No origination fees or prepayment penalties
- High minimum interest rate
- Credit check required
- One repayment term length
- Must begin repayment while in school
- Late fees
- Need to be a member to qualify
- Customer service available 24/7 over the phone, and is also available in person, via a secure messaging service, and by mail
- Loan minimum is $2,000, maximum is $120,000
- 10-year repayment term
- Late fee is $20
- Discount of .25% when you sign up for automated payments
- Loans are originated by Navy Federal Credit Union
Key Features and Benefits of Navy Federal Student Loans
Navy Federal Undergraduate Student Loans only has two repayment terms, and starting rates on those loans are higher than with many competitors. That said, if you need only a small amount of money, you can get as little as $2,000 from Navy Federal, which is lower than with many companies.
Customer service is also available 24/7 for Navy Federal student loans, which is a perk unmatched by many similar companies in the industry.
Navy Federal offers both fixed-rate and variable-rate undergraduate and graduate loans. Navy Federal also has options to refinance federal, private, and parent loans. Refinanced loans may be eligible for better rates than new loans. New loans have only a 5-year or 10-year repayment term length.
Navy Federal accepts borrowers with cosigners, which may reduce your interest rate and the overall cost of your loan. You can request to release the cosigner after two years of consecutive, on-time payments.
You won't pay any origination fees, application fees, or prepayment penalties with Navy Federal, however, late payment charges of $20 may apply. You'll get a 0.25% rate discount if you choose to make automatic payments from a checking or savings account.
To contact Navy Federal's customer support, call the lender 24 hours a day, seven days a week. You can also send a secure message through your customer support portal, meet a representative in person, or reach them via physical mail.
You won't be able to prequalify for a loan with Navy Federal, meaning the lender will perform a hard credit inquiry before giving you your rates. A hard inquiry gives a lender a full view of your credit history, but may ding your credit score in the process.
Navy Federal Undergraduate Student Loans
With Navy Federal Undergraduate Student Loans, borrowers can take out up to $120,000. The amount of interest you'll be charged will depend on the length of the loan, whether it's fixed or variable, and whether you're taking advantage of the AutoPay discount.
Navy Federal Graduate Student Loans
The biggest difference between Navy Federal Graduate Loans and undergraduate student loans is the maximum amount you can borrow. As a graduate student, you're allowed to take out up to $160,000, which is $40,000 more than the undergraduate limit. Otherwise, the terms are the same, offering either five-year and 10-year options.
Refinancing Student Loans at Navy Federal
Navy Federal Credit Union offers student loan refinancing for both federal and private student loans. Refinanced student loans with NFCU charge no application or origination fees, and are available in term lengths of either five, 10 or 15 years.
How to Apply for Navy Federal Student Loans
Eligibility Requirements for Navy Federal Student
To qualify for a loan, you need to be a member of Navy Federal, though you can apply for membership during the loan application process. You'll also need to be a U.S. citizen or permanent resident and a legal adult in the state where you live.
NFCU Student Application Process
1. Determine eligibility and gather documentation. Eligibility requirements include that you are a member of the credit union, a current student or graduate of an eligible school, a U.S. citizen or legal resident, and a legal adult in your state.
2. Complete the online application. You'll need personal information such as your date of birth, address, and Social Security number, as well as documents showing your school enrollment status, major, and expected graduation date.
3. Add a cosigner if needed. Navy Federal says nine out of 10 student loan borrowers have a co-signer, which can increase the chances of approval for a loan and help lower the interest rate. You'll need to provide similar information about your cosigner.
4. Provide final documentation. Before your loan is approved, you will likely be required to show documentation verifying your identity, proving your income, and validating the tuition and amount of financial assistance requested.
5. Complete final steps after approval. Once approved, sign your loan agreement, which the credit union will certify with your school. Once complete, Navy Federal will transmit the funds directly to your school.
Required Documentation at NFCU
When applying for a student loan with NFCU, you'll need to provide documentation which proves the following:
- Name, date of birth, and Social Security number
- Permanent address, phone number, and email address
- Annual income, if applicable
- Enrollment status (full- or part-time)
- Class standing, major, and GPA (not required for freshmen)
- Degree pursuing, expected graduation date, and academic period you're requesting a loan for
- Loan amount you're requesting—make sure to include all education-related expenses you'll need covered, such as tuition and fees, housing costs, textbooks and supplies, transportation and food costs.
Navy Federal Student Loan Interest Rates and Fees
Current Interest Rates
NFCU offers fixed-rate and variable-rate loans with different rates based on the length of your repayment plan. Navy Federal student loans have an APR of 7.24% - 16.60% variable and 4.75% - 14.30 fixed (with AutoPay discount).
Fee Structure and Loan Terms
Navy Federal Credit Union offers loan terms of either five or 10 years and offers a 0.25% discount for those choosing to make payments through AutoPay.
Navy Federal Repayment Options and Flexibility
Available Repayment Plans
Navy Federal only offers two repayment options: while you're in school, and during a six-month grace period after you graduate.
Flat
- Pay $25 per month while in school and during a six-month grace period
- Unpaid interest accrues
- Interest is capitalized at the end of the grace period
- Low in-school payments
Interest-only
- Pay the loan's interest monthly while in school and during a six-month grace period
- Higher in-school payments
Flat payments will be more expensive than interest-only payments in the long run, because interest will accrue while you're in school and during your grace period. This interest will then capitalize, meaning it will be added onto your loan balance after periods of nonpayment, including forbearance, deferment, and after your grace period. This will up your total loan balance, and you'll later pay interest on that higher amount, increasing the overall cost of your loan.
Deferment and Forbearance Options
You don't have the option to defer your payments until after you graduate with Navy Federal; you'll have to start paying your loans off as soon as they're disbursed.
Loan Forgiveness Programs
NFCU details several Federal Student Loan forgiveness options on its website, including career-based and income-driven repayment and forgiveness programs, such as the SAVE plan.
Pros and Cons of NFCU Student Loans
Advantages of NFCU Student Loans
- No origination fee or prepayment penalty
- Low minimum loan amount of $2,000
- 0.25% automated payment discount
- Customer support available by phone 24 hours a day, seven days a week
- Well-reviewed mobile app
Disadvantages of NFCU Student Loans
- Pay the loan's interest monthly while in school and during a six-month grace period
- Only offers 5-year or 10-year repayment term length on new loans
- High minimum APR on loans
- Need to be a Navy Federal Credit Union member to qualify
- Need to begin repayment while in school
- Late fee of $20
Get 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.
NFCU Student Loan Alternatives
Navy Federal Student Loans vs. Ascent Student Loans
Ascent offers five different repayment lengths, while Navy Federal only has two repayment term lengths available for student loan borrowers: 5 years or 10 years. You may also qualify for a 1% cash-back reward from Ascent that will be paid to you after graduation, a perk that is not available with Navy Federal student loans.
Navy Federal has a late fee of $20 for its student loans, while Ascent doesn't charge any late fees whatsoever.
Navy Federal Student Loans vs. Sallie Mae Student Loans
Sallie Mae Graduate Student Loans has a late payment fee of 5% of the amount due, capped at $25. Navy Federal has a late fee for slightly less at $20. Sallie Mae has three repayment term lengths — five, 10, and 15 years — but it sets the term for the borrower. Navy Federal only offers student loans with five and 10-year terms.
Sallie Mae offers four months of the study service Chegg for free. Chegg offers expert Q&A, and students can submit up to 20 questions monthly.
Sallie Mae Student Loans Review
Navy Federal Student Loans Customer Experience
NFCU's customers generally report a good experience with the lender. It rates 4.5 stars out of 5 on Trustpilot, and its mobile app is also highly rated, indicating that it's easy to use and navigate.
Is Navy Federal Trustworthy?
As of now, NFCU's BBB profile is being updated, so there is limited available information on its rating or accreditation. While NFCU has been a longstanding financial institution with a solid track record, there are several complaints against the lender.
In late 2023, CNN published an investigative report about claims of racial bias in Navy Federal's mortgage lending. Navy Federal has not admitted to any wrongdoing, and the case is still ongoing.
In November 2024, the Consumer Financial Protection Bureau required Navy Federal to pay over $80 million to customers for illegal overdraft fees.
Navy Federal Credit Union released a statement following the investigation. "Navy Federal fully cooperated with the CFPB's investigation and we will continue to comply with all applicable laws and regulations, just as we always have and as we believe we did here," says the statement.
Why You Should Trust Us: How We Rated Navy Federal 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 considers 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 they are not directly tied 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 »
Navy Federal Credit Union Student Loan FAQs
Navy Federal private student loans have an APR of 7.24% - 16.60% variable and 4.75% - 14.30 fixed (with AutoPay discount).
The interest rates at Navy Federal Credit Union are competitive rates that vary based on the type of loan and the borrower's credit profile.
To apply for a Navy Federal Credit Union student loan, complete the application online through the NFCU website. Follow the step-by-step process and submit the necessary documents.
Yes, you can refinance existing loans through Navy Federal Credit Union. It offers refinancing options for both federal and private student loans.
NFCU offers two repayment options: flat and interest-only.
Navy Federal Credit Union typically does not charge origination fees or prepayment penalties, but it does charge late payment fees. Be sure to review the loan terms for any additional charges.
