TYSONS, Va.—The $20.7-billion PenFed has introduced a new program it says will save consumers across America thousands of dollars on student loans.
The program enables borrowers to consolidate and refinance their student loans at fixed rates as low as 3.5%.
“The average college graduate carries an incredible debt of $37,000 with many owing greater than $100,000 on student loans,” said PenFed President and CEO James Schenck. “By consolidating this debt into a single, lower fixed rate, qualified borrowers could save thousands of dollars in interest charges. These significant savings can be used for other purposes like buying a home or starting a family—things Millennials have been putting off because of their student loan debt.”
PenFed’s “quick and easy process” is open to college graduates who have established their careers, parents who took out loans to support their children’s education, and married couples who want to refinance and consolidate their loans together, the CU explained.
“Through a simple online Find My Rate tool, users can estimate the rate they will be offered if their application is approved and quickly compare options for five-, eight-, 12- and 15-year loans at highly competitive fixed rates. Applications can be completed online in less than 15 minutes and most often receive a response with a credit decision within a few minutes. There are also no application fees or closing costs and no penalties for early repayment on any PenFed student loan,” the CU said.
“We are excited to introduce this new student loan refinancing option to our 1.5 million members and invite new members to join through our easy online process,” said Schenck. “PenFed is committed to providing financial help to a growing generation of borrowers burdened by student loans they took out to pursue their education.”
PenFed also offers an online, mobile-compatible application process for the new program.
“Additionally, PenFed is one of the few large U.S. institutions to service and administer the loans in-house to ensure a higher quality of service to its borrowers,” the CU stated.
PenFed partnered with Purefy Inc., a Washington-based financial technology firm, for the design and integration of PenFed’s student loan platform.