Yrefy Student Loan Refinancing: 2026 Review
Yrefy differs from other student loan companies in that it refinances delinquent and defaulted student loans.
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Our Take
Yrefy specializes in refinancing delinquent and defaulted private student loans, but it doesn’t refinance federal student loans. Yrefy also refinances student loans in good standing, but its 5% origination fee makes it a less attractive option for borrowers able to refinance elsewhere.
Pros
- Provides an opportunity to rebuild credit.
- You can see if you’ll qualify and what rate you’ll get without a hard credit check.
- You can refinance while still in school and without a degree.
- Interest rates are low compared to other lenders that work with poor-credit borrowers.
- Offers automatic bi-weekly and greater-than-minimum payments, which can help pay off the loan faster.
- Considers a borrower’s willingness and ability to pay the loan in place of minimum credit score.
Cons
- Co-signers can’t be released for 48 months.
- Charges a 5% origination fee on the refinanced amount.
- Does not refinance federal loans.
- Not available in CA, CT, IN, ME, MS, MT, NY or WA.
Lender | Fixed APR | Min. credit score | Variable APR | |
|---|---|---|---|---|
 Check Rate on Earnest's website | 4.49-9.99% | 650 | 5.88-9.99% | Check Rate on Earnest's website |
 Check Rate on SoFi®'s website | 3.99-10.99% | Does not disclose | 5.74-10.99% | Check Rate on SoFi®'s website |
 Check Rate on Splash Financial's website | 3.99-10.24% | 650 | 4.74-10.24% | Check Rate on Splash Financial's website |
 Check Rate on LendKey's website | 4.39-9.24% | 680 | 4.18-6.23% | Check Rate on LendKey's website |
 Check Rate on ELFI's website | 4.29-8.44% | 680 | 4.74-8.24% | Check Rate on ELFI's website |
Full Review
Yrefy is a private student loan company that refinances delinquent and defaulted private student loans. You don’t have to be behind on your student loans to refinance with Yrefy, but other lenders may be a better fit if your loans are in good standing.
Yrefy currently charges a 5% origination fee on the refinanced amount, whereas most student loan refinancing lenders don’t charge such a fee. As an example, refinancing $35,000 in student loans at 4% APR for 10 years, with a 5% origination fee added to the refinance loan, would increase the cost by about $2,100 over the life of the loan.
Still, Yrefy could be the best option if you have private student loans and any of the following apply:
Your private student loans are past due or in default, making it difficult to get approved elsewhere.
Your income is too low to get approved by other lenders.
Your credit score is below 650.
You didn’t finish college or are still in school. Most refinance lenders require that you’ve graduated and have a degree.
Yrefy doesn’t use your credit score to determine if you’ll qualify, but it does run your credit using a soft credit check to assist with other decisions — like determining your interest rate. According to Yrefy, it takes into account your credit history, income stability, debt-to-income ratio (DTI) and loan amount when determining approval and whether a co-signer is needed. Also, Yrefy borrowers must be a U.S. citizen or have permanent resident status.
Yrefy doesn’t refinance federal student loans, but if you’re struggling with government loans, you may have other options. Talk to your loan servicer about income-driven repayment, forbearance or deferment. Also, ask about student loan rehabilitation if your federal loans are already in default.
More about Yrefy student loan refinancing
Loan and borrower requirements
Loan terms: 3, 5, 7, 10, 15 and 20 years.
Loan amounts: $5,000 minimum with no maximum.
Minimum credit score: No minimum. Credit score isn’t used to determine eligibility.
Minimum income: Does not disclose.
Maximum debt-to-income (DTI) ratio: Does not disclose.
Time requirement after filing for bankruptcy: Applicants can apply two years after filing bankruptcy and will need a co-signer.
Co-signer: Allows but does not require one for all borrowers. Approximately 50% of approved borrowers have a co-signer. Co-signer release is available after 48 months of on-time, consecutive payments.
Payment and repayment
Allows greater-than-minimum payments via autopay: Yes.
Allows bi-weekly payments via autopay: Yes.
Hardship forbearance: Yes, up to 12 consecutive months for medical and military needs.
Post-school repayment options:
Administrative forbearance.
Skip-a-payment program.
Paused and decreased payment for temporary disability.
Military deferment.
Customer experience
Customer service: Has in-house customer service representatives, and borrowers are assigned a dedicated advisor. Also has a designated person to handle any complaints. Customer service can be reached by phone or email, but Yrefy does not offer live chat.
Time for application approval: Shows a rate estimate within minutes using a soft credit check. Full approval can take up to 48 hours.
Loan servicer: Yrefy LLC.
Yrefy extras
Skip-a-payment: Yrefy offers a SKIP-12 program, which allows borrowers to skip up to 12 payments — one every six months of on-time payments — over the life of their loan.
NERDY PERSPECTIVE
When I learned that Yrefy's business model is to buy defaulted student loans from the previous lender at a reduced amount, yet the borrower still pays the full loan amount with the Yrefy loan, it bothered me a little. Borrowers in default need to make sure they are talking to their current lender (not avoiding collection calls) and exhausting all options before refinancing with Yrefy, which adds a high origination fee to what they owe. With that said, I do believe Yrefy is a unique and solid refinancing option for borrowers who might not be able to find help elsewhere. For a second-chance lender, Yrefy has low interest rates, and it offers features to help borrowers repay the loan faster. Borrowers may find a lower monthly payment with Yrefy and breathing room to work toward rebuilding their credit.
Shannon Bradley
Lead Writer & Content StrategistBefore refinancing your student loans with Yrefy
Yrefy specializes in working with borrowers who have defaulted on their private student loans and who have bad credit. If that isn’t you, you can likely find another student loan refinance lender with no origination fee. Before deciding on a student loan refinance lender, compare multiple student loan refinance options to make sure you’re getting the best rate you qualify for. In addition to comparing interest rates, compare lenders’ repayment options and the flexibility they offer borrowers who are struggling to make payments.
If you aren’t eligible to refinance with Yrefy
Since Yrefy caters to borrowers with damaged credit or defaulted private loans, being declined there likely means your options are limited. If you haven't already, you could try adding a creditworthy co-signer to your application. You might also apply to other lenders that specialize in bad or no credit student loans.
» MORE: Student loan default: what it is and how to recover
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Our student loans editorial team surveyed 20 banks, credit unions and online lenders that offer student loans and student loan refinancing. These include the top lenders by market share and online search volume, as well as some lenders that serve specialty or nontraditional markets.
We considered and scored more than 60 features and data points for each financial institution in the categories of loan flexibility, affordability, transparency, customer experience and variety of borrowers served.
The stars represent ratings from poor (one star) to excellent (five stars). Ratings are rounded to the nearest half-star.
Read more about our ratings methodology for student loans and our editorial guidelines.
Frequently asked questions
Is Yrefy good for refinancing student loans?
It depends on your situation. Yrefy fills a niche few lenders serve: borrowers with delinquent or defaulted private student loans, or poor credit, and it doesn't use a minimum credit score to determine eligibility.
It can offer borrowers the opportunity to rebuild their credit with potentially lower monthly payments. On the downside, Yrefy charges a 5% origination fee added to the refinance loan balance.
For someone who can't qualify elsewhere because of default or credit issues, it can be a solid second chance. For someone with strong credit, other lenders may offer lower total costs.
How does Yrefy work with defaulted student loans?
Yrefy buys your defaulted private student loan from your current lender at a discount. The old lender gets paid that reduced amount and the loan moves to Yrefy. Your new Yrefy loan is for the original balance (not the reduced amount), plus a 5% origination fee.
Before paying to refinance, you can ask your current lender if it would settle the debt for less directly with you. However, settlement usually requires a lump sum (or short payment plan), while refinancing spreads the original balance into a new monthly payment. If you can't raise that lump sum, refinancing may be the more realistic option.
Does Yrefy refinance federal student loans?
No. Yrefy only refinances private student loans, not federal loans. Keep in mind that refinancing any federal loan into a private one means giving up protections like income-driven repayment and loan forgiveness.
Should I check my state's statute of limitations before refinancing a defaulted student loan?
It's worth doing, since it affects the amount of risk you're taking on. Each state sets a statute of limitations on debt collection lawsuits, which limits how long a lender or collector can sue you over a defaulted loan. For private student loans, the statute of limitations typically ranges from three to 15 years, depending on the state.
If that window has already passed for you, the biggest legal risks from your default — a lawsuit, a court judgment, wage garnishment — are largely behind. Refinancing is more about rebuilding your credit than avoiding legal exposure.
If you're still within the statute of limitations, refinancing through a lender like Yrefy can help you re-establish a record of on-time payments and improve your credit. But there’s a tradeoff. You're replacing an old debt with a new loan obligation. If you can't keep up with the payments, you're back in default — this time on a new loan, with new legal exposure.