Best allotment loans for federal employees

When looking for allotment loans for federal employees, you're likely considering loans that are repaid via automatic payroll deductions, a process called an allotment. Federal employees have access to specific loan options that might offer competitive rates and terms due to their stable employment. Here are some of the best options:

1. PenFed Credit Union

  • Loan Type: Personal loans, including payroll-deducted loans.

  • Interest Rates: Generally lower than traditional bank rates, with rates as low as 7.74% APR for members.

  • Loan Terms: Flexible repayment terms.

  • Eligibility: You must be a member, but PenFed allows eligibility through various affiliations or by making a small donation to a charity.

  • Benefits: PenFed is known for being a trusted lender to federal employees with competitive rates and easy access.

2. Navy Federal Credit Union

  • Loan Type: Personal loans, including payroll deduction loans.

  • Interest Rates: Rates can start as low as 7.49% APR.

  • Loan Terms: Repayment terms range from 36 to 60 months.

  • Eligibility: Membership is open to federal employees, military members, and their families.

  • Benefits: Navy Federal has a solid reputation and offers special loan products for federal employees, often with quicker approval times.

3. USAA

  • Loan Type: Personal loans, including options with automatic payroll deductions.

  • Interest Rates: Rates can start as low as 8.99% APR.

  • Loan Terms: Flexible terms, typically ranging from 36 to 84 months.

  • Eligibility: Membership is available to military members and their families, but federal employees can sometimes be eligible depending on affiliation.

  • Benefits: USAA is well-regarded by federal employees and military families, offering personal loans with competitive rates.

4. LendKey

  • Loan Type: Personal loans.

  • Interest Rates: Starting around 5.99% APR, but can vary based on creditworthiness.

  • Loan Terms: Flexible, typically 36 to 72 months.

  • Eligibility: LendKey partners with credit unions, so federal employees could be eligible by joining one of these partner organizations.

  • Benefits: It’s a good option if you are looking for lower rates and don't mind going through a credit union.

5. Federal Employee Loan Programs (through payroll providers)

  • Loan Type: Loans specifically tailored for federal employees.

  • Interest Rates: Varies based on the provider, but typically low.

  • Loan Terms: Typically offers flexible repayment terms via payroll allotment.

  • Eligibility: Available to federal employees and retirees.

  • Benefits: These are specialized loans available to federal employees and might be more accessible than traditional bank loans.

6. Alliant Credit Union

  • Loan Type: Personal loans with payroll deductions available.

  • Interest Rates: Rates start around 7.24% APR.

  • Loan Terms: Flexible repayment options, generally between 12 and 60 months.

  • Eligibility: Open to federal employees who are members or can become members.

  • Benefits: Offers competitive rates and is well-reviewed for serving federal employees.

Key Things to Look For:

  • Interest Rates: Shop around to compare APRs to ensure you’re getting a competitive rate.

  • Loan Terms: Look for flexibility in terms of repayment to ensure it fits your budget.

  • Eligibility: Many options require you to be a member of a credit union or meet specific criteria, so make sure you can qualify.

  • Allotment Options: Ensure that the lender offers payroll deduction as an option for loan repayment.

Before choosing, it's a good idea to check with your HR department or review the federal employee-specific loan programs available through your workplace. You might find additional options or special benefits.