Purefy, formerly known as CordiaGrad, started refinancing student loans in 2015. In February 2017, the company launched a partnership with PenFed Credit Union, which has allowed it to offer lower interest rates, according to CEO and founder Jack Zoeller. It has also lowered the minimum loan balance it will refinance from $20,000 to $7,500.
If you meet Purefy’s student loan refinancing requirements, you can take advantage of benefits many lenders don’t offer. For instance, you can choose an eight-year loan term, which is helpful if you’ve already been paying down your loans for a few years. You can also combine your spouse’s loan balance with your own and refinance them together through a couple loan.
Purefy serves customers who are on solid financial footing. Most borrowers are able to refinance their loans without a co-signer, meaning they have strong individual incomes and credit histories. Only 7% of Purefy’s customers have used co-signers on their applications, Zoeller says.
Purefy says it will work with borrowers on a case-by-case basis if they lose a job or have a financial hardship; there’s no specific forbearance policy. Several other student loan refinancing lenders offer 12 months total of forbearance over the course of the loan. Others, such as iHelp and CommonBond, offer longer periods.
Grads who choose Purefy are in for a flexible, personalized refinancing experience. You can get an interest rate estimate without a credit check after answering three questions on Purefy’s “Find My Rate” tool. The tool lets you compare rates with and without a co-signer in case adding one would provide steeper savings. Once you apply, you’re assigned an individual loan advisor who can answer questions about your application by phone, email and online chat.
» COMPARE: Student loan refinancing options
Do you qualify?
|Minimum qualifications||The typical borrower
|Credit score||660 with a co-signer|
680 without a co-signer
|Income||No minimum with a spouse co-signer;|
$25,000 with a non-spouse cosigner;
$42,000 (without a cosigner)
|Debt-to-income ratio||Purefy prefers a borrower’s debt equal no more than 50% of his or her annual income.||28%|
Where Purefy shines
Couples can refinance 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.
Unique loan terms: Purefy offers five-, eight-, 12- and 15-year repayment schedules. The eight-year term in particular can be useful if you refinance two years after graduating and want to finish repaying your loans within the standard 10-year time frame.
“The eight-year is the most popular by far,” Zoeller says.
No matter which repayment schedule you choose, through Purefy or another lender, you can always eliminate your balance sooner by paying more than required each month.
Where Purefy falls short
Flexibility: At this time, Purefy doesn’t offer variable interest rates, 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.
Forbearance limitations: Purefy will work with you on a case-by-case basis if you’re struggling to make payments. If you’re concerned you might need a safety net in the future, consider pursuing lenders that offer income-based repayment plans or specific forbearance options.
You can estimate your interest rate with Purefy and apply on the lender’s website. However, it’s smart to compare interest rates among other refinance lenders before you make a decision. If you’re still deciding whether refinancing is right for you, check out our FAQ for answers to common borrower questions.
Updated Feb. 10, 2017.