Purefy, formerly known as CordiaGrad, has been refinancing college debt since 2014. Like many student loan refinance lenders, it works with people who have undergraduate and graduate loans, and parents who have federal PLUS loans on behalf of their child.
The loans issued by Purefy are originated by PenFed Credit Union or Citizens Bank. This review focuses on Purefy loans through NerdWallet partner PenFed. We review Citizens Bank student loan refinancing in another post.
AT A GLANCE
- Fixed: 3.50% to 7.28% APR
- Available loan terms: 5, 8, 12 and 15 years
- Eligible loan balances: $7,500 to $150,000
When borrowers refinance federal student loans, they lose access to federal loan perks including income-driven repayment and loan forgiveness programs. They should weigh this trade-off carefully.
» COMPARE: Student loan refinancing options
Do you qualify?
|Minimum qualifications||The typical borrower
|Credit score||670 with a cosigner, 700 without a co-signer||770
|Income||No minimum with a spouse co-signer, $25,000 with a non-spouse co-signer, or $42,000 without a co-signer||$77,000
|Debt-to-income ratio||50% or less||28%|
|Education||Bachelor’s degree or higher||Bachelor’s degree or higher|
Where Purefy student loan refinancing shines
Married couples can refinance their loans together: Most refinancing lenders allow you to refinance only loans borrowed in your name. That can make it tough for married couples, who might otherwise share finances, to bundle their student loans into one payment.
Purefy is the rare lender that allows married couples to refinance their individual student loans into a single loan, with one spouse listed as a co-signer. The company will use the higher of the two spouses’ credit scores to determine their new interest rate. There is no minimum income requirement for an individual with a qualifying spouse co-signer. Only one of the spouses needs to have a bachelor’s degree or higher to qualify.
Borrowers can refinance a parent PLUS loan in their name: Purefy is among a handful of lenders that lets parents remove themselves from the responsibility of a federal PLUS loan in their name by having the loan be refinanced in their child’s name.
Co-signer release policy available: Borrowers can request to remove their co-signer from the loan after they make 12 consecutive on-time payments. This may be an appealing option for co-signers who don’t want to be on the hook throughout the loan’s duration.
Where Purefy student loan refinancing falls short
No variable-rate option: At this time, Purefy doesn’t offer variable interest rates through PenFed, which borrowers might prefer if they plan to repay their loan quickly. Variable rates are risky, however, because they’re likely to increase as the Federal Reserve raises interest rates across the board.
Fees: No prepayment penalties, or application or origination fees
Loan servicing: PenFed Credit Union
Deferment and forbearance: Borrowers experiencing economic hardship may be able to temporarily pause their payments through a forbearance. There’s no time limit for this policy; Purefy evaluates borrowers on a case-by-case basis.
Before you choose a refinance lender, it’s a good idea to compare multiple options. If you’re ready to refinance with Purefy, you can apply on the lender’s website. You’ll need photos or screen shots of the following when you apply:
- Photo ID (driver’s license, passport or state-issued ID)
- Income verification (pay stub or tax return)
- Graduation verification (diploma or transcript)
- Payoff statement from your current loan servicer for the loans you want to refinance
Additionally, you’ll have to apply to be a PenFed Credit Union member as part of your refinancing application, which doesn’t cost anything.
Brianna McGurran and Teddy Nykiel are staff writers at NerdWallet, a personal finance website. Email: firstname.lastname@example.org or email@example.com. Twitter: @briannamcscribe or @teddynykiel.
Updated July 14, 2017.