PenFed Powered by Purefy Student Loan Refinancing Review

• Soft credit check to qualify and see what rate you’ll get: Yes.

• Loan terms: 5, 8, 12 or 15 years.

• Loan amounts: $7,500 to $300,000.

• Can transfer a parent loan to a child: Yes.

• Application or origination fee: No.

• Prepayment penalty: No.

• Late fees: Yes; a fee equal to 20% of the interest portion of the payment applies after the payment is five days late. The minimum late fee is $5; the maximum is $25, except where prohibited by law.

Financial

• Minimum credit score: 670. You'll need a higher score if you’re applying without a co-signer or refinancing more than $150,000.

• Minimum income: You’ll generally need an income of at least $25,000 if you’re applying with a co-signer, and $42,000 if you’re applying without one. If you’re refinancing more than $150,000, the minimum income is $50,000 or $100,000, depending on how much other debt you have.

• Typical credit score of approved borrowers or co-signers: 773.

• Typical income of approved borrowers: $96,985.

• Maximum debt-to-income ratio: Generally, 35% for applicants with undergraduate degrees and 40% for applicants with graduate degrees.

• Can qualify if you’ve filed for bankruptcy: Yes, if the bankruptcy was 10 or more years ago. You can also qualify — even with a recent bankruptcy on your record — if you have a co-signer who meets all of the credit, income and debt-to-income criteria, and you have a credit score of 670 or higher and income of $25,000 or more.

Other

• Citizenship: Must be a U.S. citizen. Unlike many other lenders, PenFed doesn't refinance college debt for permanent residents.

• Location: Available in all 50 U.S. states.

• Must have graduated: Yes, must have a bachelor's degree or higher.

• Must have attended a school authorized to receive federal aid: Yes.

• Percentage of borrowers who have a co-signer: 27%.

• Academic deferment: No.

• Military deferment: No.

• Forbearance: PenFed offers relief for up to 6 months if you've lost your job or face a different temporary hardship. You can also apply for permanent hardship relief, with no maximum length, if you expect your situation to last longer than 6 months. Relief may take the form of skipped payments — like a traditional forbearance — or a temporary or permanent adjustment to your repayment plan.

• Co-signer release available: Yes, after 12 months of consecutive on-time payments.

• Death or disability discharge: No.

Repayment Preferences

Refinancing student loans with PenFed through Purefy comes with the following perks: