Paying for higher education is one of the most significant investments you’ll ever make. After exhausting scholarships, grants, and federal aid, many students and their families find they still have a funding gap. This is where private student loans can help.
For graduates, on the other hand, the challenge shifts to managing existing student debt effectively.
Digital Federal Credit Union (DCU), a member-owned financial institution, offers solutions for both scenarios. This guide will break down DCU’s student loan offerings, helping you understand your options for both financing your education and refinancing your debt after graduation.
Does DCU Offer Student Loans? The Answer is Yes (Through a Partner)
- Understanding DCU’s Partnership with CU Student Choice Yes, DCU offers student loans, but it’s important to know how they do it. Like many credit unions, DCU partners with a specialized organization called a Credit Union Service Organization (CUSO) to manage its student lending program. This partnership allows DCU to provide competitive, specialized loan products to its members. When you apply, you will be directed to a co-branded portal managed by this trusted partner.
- The Two Main Products: In-School Loans and Refinancing DCU’s student lending program is broken into two distinct categories:
- Private Student Loans: For students and parents to borrow money for upcoming school expenses.
- Student Loan Refinancing: For graduates to combine and reprice existing student debt.
For Students & Parents: The DCU Private Student Loan
- What is a Private Student Loan and When Should You Use It? A private student loan is a loan from a financial institution like a credit union or bank, used to pay for college costs. Crucially, it should only be considered after you have exhausted all other forms of financial aid, including scholarships, grants, and federal student loans obtained through the Free Application for Federal Student Aid (FAFSA).
- Key Features and Benefits of DCU’s Offering
- No Origination Fees: You don’t have to pay a fee to take out the loan.
- Fixed and Variable Rates: Choose between a predictable, locked-in rate or a variable rate that may start lower.
- Multiple Repayment Options: Options often include making interest-only payments or deferring all payments until after you leave school.
- Sample In-School Loan Rates and Terms (As of August 1, 2025) Disclaimer: These are sample rates for illustrative purposes. Your actual rate will depend on your (and your cosigner’s) credit history, the repayment option you choose, and other factors.
| Loan Type | Sample Variable APR Range | Sample Fixed APR Range |
| Private Student Loan | 6.50% – 14.50% | 5.50% – 13.75% |
- Eligibility Requirements
- You must be a DCU member.
- You must be enrolled at least half-time in a degree-granting program at an approved school.
- You must be a U.S. citizen or permanent resident.
- Most undergraduate students will require a creditworthy cosigner.
For Graduates: DCU Student Loan Refinancing
- What is Student Loan Refinancing and How Can It Help You? Refinancing is the process of taking out a new loan to pay off your old student loans. The goal is to obtain a lower interest rate, which can help you lower your monthly payment, pay off your debt faster, and save thousands of dollars over the life of the loan.
- Key Features and Benefits of DCU Refinancing
- Competitive Interest Rates: Potentially lower your rate, especially if your credit has improved since graduation.
- Simplify Your Finances: Combine multiple federal and private student loans into a single, easy-to-manage monthly payment.
- Cosigner Release: Many programs offer the ability to release your cosigner from the loan after a certain number of on-time payments.
- Sample Refinancing Rates and Terms (As of August 1, 2025) Disclaimer: Your actual rate depends on your credit score, income, financial history, and chosen loan term.
| Loan Type | Sample Variable APR Range | Sample Fixed APR Range |
| Student Loan Refinancing | 6.25% – 9.50% | 5.75% – 8.99% |
- Who is Eligible to Refinance with DCU?
- You must be a DCU member.
- You must have graduated with at least an associate’s degree from an approved school.
- You must meet minimum credit score and income requirements to show you can afford the payments.
DCU vs. Other Options: A Crucial Comparison
- IMPORTANT: DCU Private Loans vs. Federal Student Loans Before taking any private loan, you must understand what you might be giving up. Federal student loans offer unique borrower protections that private loans do not.
- Always apply for federal aid first by filling out the FAFSA.
- Federal Protections: Federal loans offer access to Income-Driven Repayment (IDR) plans, Public Service Loan Forgiveness (PSLF), and more generous deferment and forbearance options if you face financial hardship. You lose access to these benefits on any federal loans you include in a private refinance.
- How DCU Refinancing Compares to Other Private Lenders DCU’s not-for-profit, member-owned structure is its key advantage. This often allows them to offer highly competitive interest rates and a more personalized, member-focused customer service experience compared to large, for-profit online lenders.
How to Apply for a DCU Student Loan or Refinance
- Step 1: Get Your Information Ready (A Checklist)✅ Application Checklist
- [ ] Social Security Number and contact information for you and your cosigner.
- [ ] Recent pay stubs or other proof of income.
- [ ] Your school’s name and your expected graduation date (for in-school loans).
- [ ] Your total requested loan amount and cost of attendance.
- [ ] For refinancing: Statements for all existing loans you wish to refinance, including servicer name, account number, and payoff amount.
- Step 2: Complete the Online Application via DCU’s Portal Visit the student loan section of the DCU website. The link will take you to the secure portal of their student lending partner to complete the application.
- Step 3: Await Approval and Sign Your Loan Documents The lender will perform a credit check and verify your information. If approved, you will receive loan documents to review and sign electronically.
Frequently Asked Questions (FAQ) About DCU Student Lending
- Do I need a cosigner to get a DCU student loan? For in-school private loans, most undergraduate students will need a creditworthy cosigner. For refinancing, a cosigner is not required if you meet the credit and income requirements on your own.
- What’s the difference between a fixed and a variable interest rate? A fixed rate is locked in for the life of the loan; your payment will never change. A variable rate is tied to a market index and can fluctuate, meaning your payment could go up or down over time.
- Can I refinance my Parent PLUS loans with DCU? Yes, parents can typically refinance federal Parent PLUS loans. Additionally, some programs allow a student to refinance a Parent PLUS loan into their own name, provided the student meets the underwriting criteria.
- What happens if I have trouble making payments after I graduate? DCU’s lending partner offers forbearance options for borrowers experiencing temporary financial hardship, though these are typically less extensive than the protections offered by federal loans.
Key Takeaways
- Two Distinct Products: DCU offers both in-school private loans to cover college costs and student loan refinancing for graduates to manage existing debt.
- Federal Aid First: Always exhaust federal loan options via the FAFSA before considering a private student loan. Federal loans have critical protections that private loans lack.
- Refinancing Can Save Money: If you have a stable income and good credit, refinancing your student loans with DCU could lower your interest rate and save you a significant amount of money.
- Membership is Required: You must become a DCU member to be eligible for their student loan products, but eligibility is broad and easy to obtain.
The Verdict: Is a DCU Student Loan Right for You?
- A DCU Private Student Loan Is a Good Fit If… …you have maximized your federal aid and scholarships and still have a funding gap. It is a competitive option for creditworthy borrowers (and their cosigners) who value the service of a credit union.
- DCU Student Loan Refinancing Is a Good Fit If… …you are a graduate with stable employment and a good credit score, and you are seeking a lower interest rate on your existing student loans. It is especially compelling if you are comfortable giving up federal loan protections in exchange for a lower rate.
Final Next Step: The best way to know what you qualify for is to check your rate. You can typically get a preliminary rate quote with just a soft credit pull, which won’t affect your credit score.
➡️ Visit the DCU Student Lending Portal to Learn More and Check Your Rate