An introduction to Navy Federal Credit Union:
Also known by the name Navy Federal, this global credit union was established in the year 1933 in Virginia, United States. It has its headquarters located in Vienna, Virginia. It is renowned as the largest retail credit union in membership and asset size in the United States. Here we will see about Does Navy Federal Credit Union do student loans?
The company offers financial services such as mortgages, online banking, consumer loans, investments, IRA, checking, credit cards, ESA, and much more all across the globe. The company has been awarded the Credit Union of the Year for 15 years in a row consecutively, by the United States Navy.
Does the Navy Federal Credit Union do student loans?
Yes, providing student loans and other kinds of loans is one of the primary financial services offered by the company. Navy Federal Credit Union offers private student loans. The company is committed to providing the best possible financial aid to students in need.
Even the students who get federal loans can cover up their remaining expenses through the private student loans offered by Navy Federal. The company offers both student loans and refinancing for students and parents.
Navy Federal’s student loan program:
Features:
- The interest rate for student loans is 0.25% if you sign up for automatic payments.
- The student loan can be granted for a single semester or the entire academic year, depending upon the school-certified cost of attendance.
- The student can also get a co-signer release if the payments are made on time with the principal and interest, consecutively for 24 months.
- The students will get a chance to get a variety of repayment options during the academic session to reduce the overall burden of the loan cost.
- The loans will be provided for pursuing an associate, graduate, or bachelor’s degree.
Rates of interest:
- Fixed Annual Percentage Rate: The fixed APR will be a minimum of 4.99% for automatic payments. This is based on creditworthiness and may be subject to change. The fixed APR is constant for the life of the loan.
- Variable Annual Percentage Rate: The variable APR will be a minimum of 3.16% for automatic payments made. The loan term under this includes up to five years of in-school time and ten years of repayment time.
Term of the student loan:
The loan term for a student loan is a maximum of 10 years. The number of monthly payments depends upon the method of repayment selected by the borrower. There are two methods of repayment available:
- $25 monthly payment option
- Interest-only option
Student and Parent Refinance Loan Program:
The Navy Federal Credit Union also provides for refinancing the private or federal student loans so that you can consolidate your loans. The refinancing program has multiple benefits including a lower rate of interest, lower monthly payments, and faster repayment of loans.
Features:
- The program can combine the loans for multiple children of a family.
- The students can request for co-signor release after 12 months of consecutive monthly repayments made.
- There will be a reduction of 0.25% in the interest rate if you sign up for automatic payments.
- The interest rate for the student loan will be lowered, along with faster repayment and lower monthly payments.
Rates of interest:
- Fixed Annual Percentage Rate: The fixed APR can be as low as 2.34% for payments made automatically. This rate is constant for the life of the loan.
- Variable Annual Percentage Rate: The variable APR can be as low as 1.79% for automatic payments made.
Terms of the loan:
The three terms of the loan are as below:
- 5 years
- 10 years
- 15 years
Eligibility criteria for Students:
The applicants must meet the following eligibility criteria to be eligible for the student loans:
- The applicant must be a citizen of the United States or a permanent resident.
- The applicant must have completed 18 years of age and become a legal adult in the state of their residence.
- Applicants should have a membership of Navy Federal Credit Union. If not, the applicant must become a member during the application process.
- The applicant should be a current student or a graduate of an eligible school. The parent refinances loans do not require this criterion to be fulfilled.
Steps to apply for Private Student Loans at Navy Federal:
Step 1: Determine the eligibility criteria to check if you are eligible to apply for the loan or not. After determining the eligibility, keep the required information and data ready for submission during the application process.
This includes both personal and academic information. The personal and academic information required are mentioned below:
Personal information:
- Name, date of birth, and social security number
- Contact information including phone number, permanent address, and email address
- Annual income, if required
Academic Information:
- Degree. Graduation date, and period of the loan you are requesting for
- Enrollment status
- Loan amount requested, including all the expenses for which you are applying
- Major, class standing, and GPA
Step 2: After this, you are required to add a cosigner if needed. A co-signer is needed when your income is less than $15000 annually or limited credit history (less than 36 months). Having a cosigner boosts your chances of getting approved for a student loan.
Step 3: Now you need to submit the final legal documents such as the identity proof, validation of tuition and financial aid amount requested, and proof of income.
Step 4: After the above-mentioned documents are approved, you need to sign the loan agreement to complete the application process. You will receive an email from Navy Federal confirming your loan agreement and the amount will be transferred to the school.
Conclusion:
The role of the Navy Federal Credit Union is not just limited to providing you with student loans. Once you become a Navy Federal member, the company would look after your mentorship, job opportunities, resume building, and interview tips. The company is solely dedicated to providing you with the best achievement opportunities.
Frequently Asked Questions:
1. Does Navy Federal charge any fees for providing student loans?
No, Navy Federal does not charge any application fees for student loans.
2. The student loan fund is transferred to whom?
The student loan fund will be transferred directly to the school.
3. What kinds of loans are refinanced by Navy Federal?
Both federal and private student loans are refinanced by Navy Federal.
