Purefy Student Loan Refinancing Review
Purefy offers student loan refinancing to qualified borrowers who are looking for more favorable repayment terms, lower interest rates, or a combination of the two. With Purefy, borrowers have access to two lenders – Citizens Bank and Pentagon Federal Credit Union. This combination of lender options gives borrowers more choices in their student loan refinancing options.
What we like:
Spouse refinancing available
|Fixed Rates||3.75% – 7.03%|
|Variable Rates||3.14% – 7.88%|
|Loan Terms||5, 8, 12, or 15 years|
|Loan Amounts||$7,500 – $300,000|
Student loan borrowers have several options when it comes to refinancing current private or federal student loans. Purefy, formerly known as CordiaGrad, is a financial services company based out of Washington, D.C., that offers a platform for borrowers to shop for student loan refinancing options.
Through Purefy, student loan borrowers can access refinance loan options through two prominent lenders – Citizens Bank and Pentagon Federal Credit Union (PenFed). Each refinance lender has different eligibility criteria, cosigner release options, repayment plans, interest rates, and maximum loan amounts.
Those wanting to refinance with the help of Purefy and its two lender partners can do so easily through the company’s online platform. Application submission takes only a few minutes, and approval can be received in as little as one business day.
Student loan borrowers can also refinance private and federal loans, as well as Parent PLUS loans, up to the maximum loan amount, and receive lower interest rates if they qualify based on credit history and income. Purefy also offers a Couple Loan option for married couples who want to combine their student debt to save money or get a lower monthly payment.
Below is a review of Purefy student loan refinancing, detailing several considerations borrowers should think through before opting for a new private loan.
Purefy Student Loan Refinancing
Students with current private or federal student loan debt may choose to take out a new, single loan to refinance through Purefy. Whether the goal is to receive more favorable repayment terms, a lower interest rate, or both, Purefy offers student loan refinancing for borrowers with strong credit profiles and verifiable income.
Between the two lenders working with Purefy, borrowers may have options for refinanced loans with PenFed or Citizens Bank. Each financial institution has different qualification guidelines, interest rates, loan terms, and co-signer release requirements.
Rates and Terms (PenFed)
Through Purefy, PenFed offers student loan refinancing to borrowers who meet qualification requirements (listed below). For eligible borrowers, the rates and repayment terms as of Nov. 1, 2018, are as follows:
- Fixed-rate loans from 3.75% to 7.03% APR
- Variable-rate loans from 2.91% to 7.65% APR
- Repayment terms are 5, 8, 12, and 15 years
Rates and Terms (Citizens Bank)
For student loan borrowers who use Citizens Bank through Purefy, the interest rates and repayment terms, as of Nov. 1, 2018, include:
- Variable interest rate loans from 2.79% to 8.39% APR
- Fixed interest rate loans from 4.69% to 7.89% APR
- Repayment terms available for 5, 10, 15, and 20 years
Are You Eligible for Refinancing With Purefy?
With a student loan refinance from Purefy, both Citizens Bank and PenFed have their own eligibility guidelines. Generally, student loan borrowers need to have graduated from an eligible Title IV accredited college or university with a bachelor’s degree or higher. Additionally, students need to be at least 18 years old, have verifiable income, and have a strong credit history to qualify.
Both PenFed and Citizens Bank offer student loan refinancing with the help of a cosigner if a student loan borrower does not qualify on his or her own.
Eligibility for PenFed
For PenFed student loan refinance options through Purefy, borrowers need to meet the following criteria to qualify on their own:
- Income over $41,900
- A credit score of at least 700
- Be a United States citizen
- Be a college graduate
- Provide documentation on income, such as a paystub
- Have an active PenFed membership or have submitted an application for membership
- Provide a photo ID
- Have graduation verification documentation, including a diploma or transcripts
- Have a payoff verification statement from each existing loan to be refinanced
If these requirements, specifically the income and credit score, are not met, an applicant may also provide information for a cosigner. The cosigner must also be able to meet the requirements for qualification based on PenFed’s credit score and income criteria listed above.
Eligibility for Citizens Bank
Similar to PenFed, Citizens Bank also requires that student loan borrowers wishing to refinance through the Purefy platform meet certain minimum standards. These include:
- Income of at least $24,000
- Minimum credit score of 680
- Be a U.S. citizen, permanent resident, or resident alien with a valid Social Security number
- Be a college graduate
- Have a valid driver’s license or state ID
- Verify income with a recent pay stub or other income details
- Recent billing statements for loans included in the refinance
If it is not possible for an individual borrower to qualify on his or her own under this guidelines, a cosigner may be added to strengthen a refinanced student loan application. The cosigner must also meet the minimum requirements listed above.
Pros of Refinancing With Purefy
Purefy offers several benefits to student loan borrowers throughout the refinancing process. First, the platform allows borrowers to look at two different lenders in a single place, as opposed to searching for multiple lenders with different repayment terms and interest rates.
Additionally, Purefy and the lenders it partners with do not charge application fees, loan origination fees, or prepayment penalties on any of their refinance loan products. The company also makes the application process simple through its online platform.
Borrowers can check their potential rate online without pulling a credit report, as well as receive a pre-approval for one or both lenders in a matter of moments. Borrowers also have the option of included private, federal, or a combination of both types of student loans in a refinance application.
Cons of Refinancing with Purefy
While the process to refinance student loans through Purefy is easy, there are a few caveats. First, borrowers must qualify for the loan by meeting minimum credit score and income requirements.
Without this, a cosigner is required. This may mean that some borrowers cannot qualify for a refinanced student loan with either PenFed or Citizens Bank. Also, the maximum loan amount with a PenFed refinanced loan is low compared to Citizens Bank, with a maximum student loan amount of $150,000. Citizens Bank offers loans up to $500,000, depending on the degree earned.
For individuals with current private or federal student loan debt that they want to refinance, Purefy may be a good choice if they meet the eligibility requirements or have a strong cosigner.
Here, borrowers can find several repayment options, variable or fixed interest rate options, and cosigner release options after a certain number of on-time payments for both Purefy lending partners. However, the lowest advertised interest rates may be higher than other student loan refinance companies. It is important for student loan borrowers to weigh the pros and cons of a Purefy refinance before signing on the dotted line.3.67 Purefy Student Loan Refinancing
Author: Melissa Horton
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