Refinance FAQs

  • Application and Funding Questions

    • How much can I borrow?

      The minimum refinance loan amount is $5,000. The maximum loan amount will be $30,000. Make sure to review your existing loans carefully so that you borrow the exact amount you need.

    • What is payoff verification?

      Payoff verification may be a 30-day payoff statement from the creditor with a payoff valid through a specified date, or a screenshot from the creditor's website showing this information. The payoff verification must include the creditor name and address, current loan balance or calculated payoff amount, and the borrower account number.

    • What is the difference between consolidation and refinancing?

      Consolidation means you are simply combining existing loans. Your total payment amount and total interest will likely remain the same, but you'll have the convenience of making one payment rather than multiple payments. This type of loan is usually associated with federal government student loans.

      When you refinance, you are taking out a single new loan to pay off your old ones. You'll probably have a new interest rate, new terms, and a different monthly payment amount. This is the loan solution offered by your credit union.

    • What will my rate be?

      You will be quoted a rate after your application has been submitted and reviewed. View our current rates. Note: There is no obligation to take the loan once you apply. We encourage you to apply and evaluate your options before making a final decision.

    • What types of loans can I refinance?

      All loans being refinanced must be post separation from school.

      Federal Education Loans:

      • Federal Family Education Loan Program (FFELP)
      • Subsidized or Unsubsidized (aka Stafford Loan)
      • Grad or Parent PLUS William D. Ford Direct Loan Program Subsidized or Unsubsidized (aka Direct Stafford Loan)
      • William D. Ford Direct Loan Program Undergraduate, Grad or Parent PLUS
      • Perkins, Nursing or Health Education Assistance (HEAL)
      • Consolidation

      If you choose to refinance a federal loan, you will lose federal student loan benefits such as income driven repayment or loan forgiveness options that may be available on your current federal loan(s). In addition, federal student loans offer deferment and forbearance options that may not available to you if you take out a private refinance loan. You may qualify for a Federal Direct Consolidation Loan. For additional information about a consolidation option for federal loans, contact the Department of Education at: See disclosures for more details.

      Private Education Loans: 

      • Undergrad
      • Graduate
      • Consolidation

      Institutional Education Loans: 

      • Undergrad
      • Graduate
      • Consolidation


    • Who is eligible to refinance?

      College graduates who are:  

      U.S. citizens or permanent residents who have graduated from an approved public or private not-for-profit school (a bachelor's degree is the minimum required)

      In repayment or grace on one or more outstanding private or federal student loans

      Able to meet Michigan First Credit Union's standard underwriting criteria (a cosigner may be necessary and may also help you qualify for a lower rate)

      Eligible for credit union membership (you may apply without being a member of the credit union, but you will need to become a member in order for the loan to be funded)

    • Can my spouse and I refinance or consolidate our individual student loans together?

      No, individuals may not consolidate loans together.

  • Cosigner Questions

    • Do I and my cosigner (if applicable) need to be members of the credit union in order to be eligible?

      In order to fund the loan, the borrower and cosigner (if applicable) must be a member of the credit union. To expedite funding, visit your credit union branch or website to open your membership account while we are processing your loan.

    • Do I need a cosigner?

      A borrower is not required to apply with a cosigner. However, applying with a credit worthy cosigner may improve a borrower's chance of meeting the credit union's approval criteria and potentially qualify for the loan at a lower interest rate.

    • Can I include my spouse's income without having them as a cosigner?

      No, your spouse would have to be the cosigner.

    • Can I take over Parent Plus Loans from my parents without them being the cosigner?

      Yes. You and your parents will be required to sign an affidavit.

    • Can my cosigner be removed from the loan at a later date?

      A cosigner release option is available to credit worthy borrowers who make 48 consecutive on-time payments during the principal and interest repayment period, and meet additional requirements (such as salary and debt-to-income ratio). You must apply and be approved for this option after the 48 month period. Other terms and conditions may apply, and option may be revoked or modified without notice.

  • Repayment and Servicing Questions

    • Should I continue making loan payments while my refinance application is in process?

      Yes, you should continue to make your payments while your application is in process. You will be notified when the funds have been sent to the applicable servicers.

    • Is there a pre-payment fee?

      No. There is no pre-payment fee and you can pay off the loan at any time.*

      *See rates page for additional information, repayment examples, and important disclosures.

    • If I go back to school, can I put my loans into deferment?

      We do not offer an in-school deferment option. Our refinance loan is intended for borrowers who have completed their education and do not plan on returning to school.


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IMPORTANT: Loan applications for the Summer 2021 academic term are now available!
(If you need funding for the 2021-2022 academic year (starting in Fall 2021) please check back in late April.)