PenFed Credit Union is a well known national credit union that offers student loan refinancing to borrowers with solid credit and income. For physicians, PenFed can be competitive if you want simple repayment terms, joint refinancing with a spouse, or the ability to release a cosigner later. This review covers how PenFed refinancing works in 2026, who it is best for, and what drawbacks to consider before moving federal or private loans into a PenFed refinance.
If you want to compare PenFed with other refinance options for physicians, you can check your rates through LeverageRx and decide if refinancing makes sense for your current stage of training or practice.
Understanding PenFed’s Student Loan Refinance Options
PenFed Credit Union provides private student loan refinancing for federal and private loans, including Parent PLUS Loans. Borrowers can refinance individually or as a married couple, which is a unique feature among lenders.
Key structure:
- Available in most states
- Repayment terms typically range from five to fifteen years
- Fixed and variable rates available, with rate ranges determined by credit and income
- Minimum credit score requirements apply
- Cosigner release is available after a period of consistent on time payments
PenFed appeals to borrowers who want predictable monthly payments, straightforward underwriting criteria, and the stability of a well established credit union.
Eligibility Requirements for PenFed Refinance
To qualify for PenFed student loan refinancing, borrowers generally need:
- A minimum credit score in the good range
- U.S. citizenship or permanent residency
- Stable employment and verifiable annual income
- Loans used at a Title IV eligible institution
- A strong credit history free of recent delinquencies
Borrowers who do not meet all requirements can apply with a cosigner. PenFed offers cosigner release after twelve months of on time payments if the primary borrower meets credit and income standards at that time.
PenFed also allows couples to refinance together, which can simplify household finances for married physicians managing large loan balances from medical school.
Pros and Cons of Refinancing With PenFed
Advantages of PenFed Refinancing
- Joint Spousal Refinancing
PenFed is one of the few lenders that allows married couples to combine loans into one refinance, which simplifies repayment for households with two borrowers. - Cosigner Release Option
A cosigner can be removed after twelve months of on time payments if the primary borrower independently meets credit and income requirements. - Hardship Assistance
PenFed offers short term forbearance options for borrowers facing unexpected financial difficulty, including job changes or medical challenges. - No Application or Prepayment Fees
Borrowers can refinance at no upfront cost and repay early without penalty. - Clear Rate Structures
PenFed provides predictable fixed and variable repayment options that appeal to borrowers who want stability.
Potential Drawbacks to Consider
- Membership Requirement
You must open a PenFed savings account to complete the refinance. This is usually simple but adds one extra step for borrowers. - More Rigid Underwriting
PenFed’s credit and income standards can be more restrictive than other lenders, which may limit approval for current residents or borrowers with newer credit files. - No Federal Protections
Like all private refinances, moving federal loans to PenFed eliminates federal benefits such as income driven repayment and federal forgiveness programs.
Key Takeaways
PenFed can be a strong refinance choice for physicians with good credit, stable income, and a desire for simple repayment terms or joint spousal refinancing. The cosigner release feature and hardship support add flexibility, but borrowers should compare multiple lenders and consider what they would lose by giving up federal protections. If you want to see how PenFed compares with other physician friendly lenders, you can check your rates through LeverageRx and review your best available options.