Established in 1935, PenFed or Pentagon Federal Credit Union. Widely known by its abbreviated name PenFed is a federal credit union based on the United States in McLean, Virginia. Under the authority of the National Credit Union Administration (NCUA) is authorized and managed. Being the nation's second-largest federal credit union, with assets worth of 25 billion dollars. Purefy issues loans funded by multiple lenders. PenFed provides Student Loan as well as Student Loan Refinance.
Its additional feature allows a married couple to refinance the student loan collectively stands out. It does not offer deferment or forbearance, which does not allow the client to delay the payment in case the credit got tight. The applying process is as simple as applying for Credit Union. There is a requirement to qualify good credit even if you sign with a co-signer.
It offers loans to applicants who are employed and have the potential to repay the loan. It mostly serves government employees but anyone can apply, who have a good credit score and are worthy of repaying the loan. Anyone can register as a PenFed member and enjoy the offers and discounts.
It offers In-school student loans which include parent loans, undergraduate student loans, and scholarships. Let's look at some of the important features of Penfed listed below.
Table of Contents
Features of PenFed Students loan
There are many features of PenFed that are mentioned below.
|Extra fee||No origination fee and no extra prepayment penalties|
|Repayment options||Multiple options|
|Minimum Loan Value||$7,500|
|Maximum Loan Value||$300,000|
|Annual Percentage Rate||3.75% to 7.03%|
|Rate type||Fixed and variable (Depends on the type of loan)|
|Loan Period||Minimum of 5 years to a maximum of 15 years|
|Cosigner||Can co-sign the loan|
Student loans offered by PenFed
1) A smart Option student loan for Undergraduate students
It is for Undergraduate Students pursuing a bachelor’s course or degree-granting a certificate at school. The loan can have a variable or fixed rate.
The variable rate is 4.25% to 11.35% and Fixed Rates is 5.49% to 11.85%.
There are three repayment options are deferred repayment, fixed repayment of $25 and interest repayment. It covers from $1,000 to 100% of the course fee.
2) Parent-student Loan
This loan can be taken by parents or other individuals who are willing to sponsor their students. It has variable and fixed rates. Lower interest rates with an auto-pay discount of 0.25% reduction in the interest rate.
PenFed provides two repayment options, one being the Interest repayment and another being Principal and interest repayment. Borrowers can borrow up to a minimum of $1,000 to 100% covering the course fee. Loan period of 10 years.
Features of Parent-Student Loan
|Variable and Fixed rate in APR||Variable rates: 5.74% – 12.a 37% and Fixed rates: 5.49% – 12.87%|
|Repayment option||Interest repayment and Principal and interest repayment|
|Loan amount||Starting from $1,000 up to 100% of the school attending cost|
|Loan term||10 years for principal and interest repayment|
|Discount or offer||0.25%on auto-payment facility|
Loans help management students to pay for business school and other education expenses.
The variable rate is 4.50% to 10.11% and the fixed rate is 6.00% – 10.23%
The loan helps in the payment of Medical degree expenses in Allopathic, General, Osteopathic, Podiatric, Radiology, Sports, and Veterinary medicine.
The variable rate is 4.50% to 9.86% and the fixed rate is 5.99% to 9.98%.
5) Dental School
The Loan pays for General Dentistry, Oral Surgery, Orthodontics, Endodontics, Pediatric Dentistry, Prosthodontics, and Periodontics.
The variable rate is 4.50% to 9.86% and the fixed rate is 6.00% to 9.99%.
6) Health Professions Graduate in related health, nursing, pharmacy, and other health degrees.
The variable rate is 4.50% to 10.11% and the fixed rate is 6.00% to 10.23%.
7) Law School
The loan covers all the expenses in a law degree.
The variable rate is 4.50% to 9.86% and the fixed rate is 6.00% to 9.99%.
8) Graduate School
The loan pays for masters and doctoral degrees. The variable rate is 4.50% to 10.11% and the fixed rate is 6.00% to 10.23%.
9) Bar Study
The loan covers the miscellaneous fee and the living costs which are not included in the course fee if you are taking the bar exams.
The borrower must be enrolled or graduated from ABA-accredited law school located in the U.S. within 12 months.
A student can only apply if he is giving the bar exams within 12 months after his graduation.
U.S. citizens are eligible and the individuals residing in the U.S. require to have a trusted co-signer and with the unexpired U.S. photo ID proof.
It has a variable interest rate of 5.26% – 12.18%.
10) Medical Residency and Relocation
The loan pays for taking board exams, traveling expenses and relocating medical residency it does not cover the school cost of attendance.
The variable rate of interest is 5.21% to 11.67%.
The student should be accredited by the American Veterinary Medical Association.borrowers can borrow up to $1,000 up to $20,000
11) Dental Residency and Relocation
The loan pays for taking board exams, traveling expenses and relocation dental residency.
Covers expense which is not included in your school’s cost of attendance.
In this Loan program, dental schools must be accredited by the American Dental Association.
The common term and conditions for all PenFed Loans
1) The interest rate is low with an auto debit discount of 0.25%.
2) The borrower applies to release the co-signer after making 12 repayments and fulfill certain credit requirements.
3) The Loan period extends from 5 to 15 years.
4) There are no fees for applying and for prepayments.
Penfed Student Loan Refinance
PenFed provides student loan refinancing for the PenFed members and others willing to join the membership. It mostly serves the government workers and people with secure jobs. It refinances all the student's loan including the Parent PLUS loans. Now, it has added a new loan for married couples in which they can refinance their education loan together.
It combines multiple Federal and private loans into a PenFed loan. The loan application process is simplified and one can apply online with no origination fee and prepayment fees. Now parents and other individuals can also refinance student loans for their child or student.
Eligibility criteria for PenFed Student Loan and Refinance
The following are the basic criteria that an individual should qualify to apply for a loan in Penfed. The individual should maintain the conditions below
A minimum credit score of the applicant should be 700.
The annual income should be at least $42,000 a year for borrowing loans up to $150,000 and a minimum annual income of $50,000 for borrowing loans up to $150,000.
The applicant must be a US citizen or can apply with a co-signer with good credit and unexpired government-issued photo ID to verify identity.
The borrower should have at least one student loan or multiple loans.
The borrower who is willing to be PenFed member or is already enrolled in the membership.
PenFed Co-signer requirements and conditions for Refinancing
The individual should have a credit score of 670 or higher.
The cosigner should have a credit score of 720 or higher.
The individual should make at least $25,000 annually.
The cosigner must make at least $42,000 for a loan amount of $150,000 and for loans up to $150,000 a cosigner must earn at least a $50,000 year.
Married couple signing as a cosigner one should have a credit score of 700 and the other should have approx 670.
The annual income of both of them combined should be $42,000 for loans up to $150,000 and $50,000 for loans more than $150,000.
PenFed repayment options
There are 4 types of repayment options provided by Penfed
Fixed repayment of $25.
In fixed-rate loans, repayments remain the same. In variable-rate loans, monthly repayments will change depending on the lending market. No, deferment or forbearance options. It will renegotiate the terms of the loan if an individual is struggling to repay the loan.
The PenFed Loan application process
On the page, there is a green colored Go to Site button click that on this page.
Choose from the type of refinancing you would like to opt and your degree. Enroll the information of the college that you attended and select your calculated credit score before signing your email address. Then click on the Find My Rate.
Fill information related to your current student loans, analyze your offers for rates, and click on the Apply following to the one you’d choose.
Choose New User and build your student lending profile.
Continue filling out the application as directed, review the disclosures carefully before you submit.
Applying with a cosigner, give their email address. They will receive a link to fill their share of the form, which can be filled online.
Wait for a loan offer, then upload the needed documents and sign a membership application as well.
Review the promissory note carefully and sign.
PenFed will pay off your current lenders and will build a PenFed checking account.
Documents required to fill the application (with or without co-signer)
Personal information of the individual, including the date of birth
Social Security number (SSN)
Financial information on mortgage payments,
Employment and income details
Recent pay stubs.
Tax return from last year.
A copy of your diploma or the course done.
Documents that have to be paid to your current lenders.
PenFed Student Loan and Refinance Review
Benefits of PenFed Student Loan Refinance
Don't have to be a member but can join readily through the loan application.
Can apply with a Co-signers.
PenFed doesn’t impose an extra fee associated with origination, or for enrolling membership and for early returns of the loan.
It refinances Parent-student loans and federal PLUS loans in your child’s name through PenFed. The interest rates offered by PenFed are competitive with that of federal student loans and are very low. The rates are highly competitive with the federal loan.
The interest rates offered are competitive with that of federal student loans and are very low.
Demerits of PenFed Student Loan Refinance.
An individual requires to have a good credit score of 670 even if he is applying with a cosigner and the cosigner needs to have a credit score of 700. The credit requirement is very high.
There are no deferment or forbearance options. If the borrower is struggling with his/her repayments it will only renegotiate the loan terms.
The applicant has to be a member of the PenFed Credit Union. In case the applicant is not interested in the membership, or open a new bank account has no other option.
It only refinances if the graduation or the degree which has been completed. It does not pay for the debt of a degree that has not been completed.
Is it compulsory to be a member of Penfed Credit Union to apply for a loan?
Yes, it is compulsory to be a Penfed member to take a loan. The process is very simple and easy sometimes it may not charge you for the membership with the loan it will add you as a member of the Penfed Credit Union.
Does Penfed refinance private loans?
Yes, Penfed finances both federal and private student loans. It merges them to one Penfed loan.
Can my dad take a refinance loan on my behalf from Penfed?
Yes, Penfed allows the parent to refinance their child’s loan. It accepts all the student loans including the Parent PLUS loan.
What is the minimum credit score to apply for a Penfed Loan?
The minimum credit score for an individual is 670 and the cosigner should be 720.
Can a person with no employment history apply for a loan in Penfed?
No, the candidate must be employed with a good credit score and the debt should be less as compared to their income. The borrower can be anyone who is employed.
What is the minimum and maximum loan amount that can be borrowed from Penfed?
The minimum loan amount is $1,000 and the maximum loan amount covers 100% of the course fee.
Does Penfed charge an extra origination fee?
PenFed does not charge an extra fee for origination, but the borrower should be a member of Penfed.
Repayment options by Penfed?
It offers four types of repayments that are Deferred repayment, Fixed repayment of $25, Interest repayment, and Principal repayment.
Can a married couple refinance student loans in Penfed?
Yes, the Married couple can cosigner a loan but either of one should have a credit score of 700 and the other should have a credit score of 670. The annual income of both of them combined should be $42,000 for loans up to $150,000 and $50,000 for loans more than $150,000.
Are there any deferment and options in Penfed?
No, there are no deferment or forbearance options, it renegotiates the loan terms if you are struggling with your repayments.