Purefy is a student loan comparison site, and it also generates refinanced student loans and principal loans through a partnership with the Pentagon Federal Credit Union. Purefy was founded in 2014, and began working with Penfed in 2016. Since then, the company has generated over $ 1 billion in loans.
As a rate comparison tool, Purefy shares interest rates, terms and eligibility requirements from some lending partners, including Accent, Hansel, Iowa Student Loans and College Avenue. This lender review will focus on the loan refinance option Purefy and PenFed offer simultaneously.
- No origination fee, application fee or prepayment penalty
- Spouses can consolidate their debts together
- Co-signer releases after 12 consecutive months of timely payment
- Free phone consultation
- Borrowers need a significantly stronger loan to apply without a co-signer
- No rebate for automatic payments or continuous payment
Purefy reinvested federal student loans, private student loans and federal Parent Direct Plus loans through its partnership with PenFed.
People looking to refinance can start either student or parent loans using Purefy’s debt comparison tool. This requires filling out a brief questionnaire and this will give you an idea of which loan you are pre-determined with sample rates for.
If you select Penfed, the rest of the process will be conducted by Purify. (If you choose one of the other lending partners of PURPHI, you will be redirected to the full application pages of those lenders.) The didactic application should take about 15 minutes to complete.
Once you get promoted for PenFed operated by Purify Refinance, you will need to submit some documents to complete the application process. All documents can be uploaded using photos or screenshots. Some of the documents you will have to submit include:
- A payment stub and / or tax return to verify your income
- Driver’s license, passport or state ID
- Payment verification details from your existing lenders that specify the payment amount
- Graduate proof, either your diploma or transcript
You will also need to become a Penfed member, but the membership application is made in the loan application.
Once you submit your loan application, you can login to your PANFED account to check the status of the loan. Once this is approved, Penfed will pay your old lenders. Usually your old lenders take between three and 14 days to process the payment. Your first payment to Penfed will be 30 days after your loan disbursement.
PenFed operated by PureFy does not charge an application fee, origination fee or prepayment fee.
For all loans, borrowers can choose from five-year, eight-year, 12-year or 15-year terms.
For student loan refinancing, the fixed annual percentage rate range is 2.99% to 5.15%; The variable rate ranges from 2.17% to 4.47%. For parent direct plus loan refinance, the fixed APR range is 3.5% to 5.15%; Variable rates range from 3.03% to 4.47%.
PenFed autopay operated by Purefy does not offer discounts or to make a certain number of consecutive payments like some other lenders.
To begin, all borrowers and co-signers must be US citizens. After prequalifying, borrowers’ applications will go to a credit review, part of which requires you to submit documentation to verify your income.
For those applying on their own for loans up to $ 150,000, an annual income of at least $ 42,000 is required, or $ 25,000 with a co-signer who earns at least $ 42,000. Borrowers who are seeking loans of more than $ 150,000 require an income of $ 25,000 with their own or a co-signer earning at least $ 50,000.
Those seeking a basic direct loan refinance must have a solid credit history, stable income and at least an outstanding education loan.
The loan limits for both student and parent refinances range between $ 7,500 and $ 300,000.
Without a fairly decent credit score, you may need a co-signer to qualify.
For loans under $ 150,000: Borrowers who have a credit score between 670 and 699 (or who do not meet income criteria) will need to bring in a co-signer who has a credit score of 720 or above. , Along with income comes the requirement.
For loans over $ 150,000: If your credit score is 670 and 724 and / or you are below the income requirement, you will need a co-signer. Co-signers must have a credit score of 725 or more and must meet the income requirement.
Once the loan is approved, the rates are determined based on factors including credit, income and debt-to-income ratio.
Purefy is headquartered in Washington, while PenFed is in Alexandria, Virginia. However, there are no residency requirements for borrowers – you only need to be a US citizen.
Although it is fairly new to the student loan refinance market, Penfed has been around for a century. Purefy was launched in 2014.
Penfed has an A + rating with the Better Business Bureau, but is not recognized. It has closed 164 complaints in the last one year. Penfed holds a 2.6 out of 5 rating on Trustpilot. Four users from the previous year filed complaints with the Consumer Financial Protection Bureau about Penfed’s student loans, and all closed at one point in time. Purefy has not been reviewed or responded to.
One of PureFy’s selling points is its free student loan refinancing consulting service. You can set up an appointment and then answer additional questions as you move through the application process.
Once you proceed with the refinance, you will deal with the debt servicer for customer issues. Penfed has a policy of working with borrowers who have financial difficulty on a case-by-case basis.
Every step of the refinancing process can be researched online, comparing rates directly through the application process. This includes the ability to upload any required documents. Once the loan period starts, customers can set up auto payments and manage their accounts online. You can also manage your account through Penfed’s mobile app.