Refinancing your student loans can have a significant impact on your repayment plan and your financial well-being. And now, it can also have an impact on your community or a cause you believe in.
Purefy has launched a charity program that allows consumers who refinance their student loans to have money donated on their behalf to their favorite non-profit organization. Here’s what you need to know about how it works and why refinancing may be the right move for you.
What is Purefy’s refinance donation program?
Knowing when to refinance student loans is crucial, but it’s also important to consider the impact refinancing can have on your financial situation — and now, also on causes that you support.
With Purefy, you’ll have the chance to improve your student loan repayment plan and also donate $500 toward a charity of your choice. Here’s how the process works:
- Use the Purefy Compare Rates tool to compare student loan refinance rates from multiple lenders side by side.
- Pick a charity from Purefy’s list or select any qualifying 501(c)(3) organization of your choice.
- Choose among the best student loan refinance rates and apply with that lender.
- Once the lender approves your application, closes the loan and disburses the funds, Purefy will donate $500 to the charity you chose during the comparison process.
Which charities does Purefy support?
Purefy has four featured charities that you can choose from during the rate comparison process, including:
- World Central Kitchen: Founded by celebrity chef José Andrés, the organization provides meals to people in need due to natural disasters. Current programs include COVID-19, disaster relief and more.
- PenFed Foundation: Operated by PenFed Credit Union, this organization provides service to members of the military community with the skills and resources to improve opportunities and financial security.
- Thurgood Marshall College Fund: This non-profit organization supports nearly 300,000 college students at its 47 member schools, which includes public Historically Black Colleges and Universities and Predominantly Black Institutions.
- Kids in Need Foundation: The foundation provides free school supplies to children in need throughout the country, helping to improve equal opportunity and access to education.
If you have another organization in mind, you can enter its name instead of choosing from the four features charities Purefy provides. Note, however, that it must be a 501(c)(3) organization — you can typically find out if a charity qualifies for this designation on its website. If it doesn’t qualify, Purefy will choose a charitable organization for you.
Why refinance student loans
Beyond the chance to help those in need, refinancing student loans can offer a handful of benefits to those who qualify:
- Better terms: If you’re eligible, you may be able to get a lower interest rate than what you’re paying on your current loans. This can reduce your monthly payment and save you hundreds or even thousands of dollars over the life of your loan.
- More control over payments: Student loan refinance lenders typically offer repayment terms ranging from five to 25 years. So if you want to pay off your student loans early, you can opt for a shorter term. Alternatively, you can choose a longer one if you want a more affordable payment. Also, a lower monthly payment would lower your debt-to-income ratio, which can make it easier to buy a house.
- More choices: If you have federal student loans, you didn’t get to choose your servicer when you received them. And if you have private student loans, your options may have been limited based on your creditworthiness at the time. Now, refinancing gives you the opportunity to choose a lender based on factors and features that are important to you and your student loan repayment plan.
So if you’re wondering, “Should I refinance student loans?” there are many reasons to consider it. However, there are also some potential drawbacks that could make it less appealing for some:
- Better terms aren’t guaranteed: Even if you meet the minimum requirements to refinance, that doesn’t mean you’ll get better terms than you have right now. If you have a creditworthy cosigner, it could improve your chances of getting favorable terms, but even that isn’t a guarantee.
- You’ll lose certain federal benefits: Borrowers with federal student loans will lose access to loan forgiveness programs, certain loan repayment assistance programs and income-driven repayment plans. If you anticipate needing any of those, you might want to stick with your current plan.
If you’re considering when to refinance student loans, the answer is when your credit history and income are in a good place or if you have someone with a solid credit history and high income who’s willing to cosign your application.
If you’re thinking about refinancing, use Purefy’s rate comparison tool to shop around and compare student loan refinance rates from multiple lenders in one place.
Should I refinance student loans?
Refinancing student loans can come with significant benefits for you as a borrower, and it can help give you more control over your student loan repayment plan. With Purefy, it also gives you the chance to use the process to help yourself and others in need.
If you want to refinance through Purefy to take advantage of the charity program, research different charities to find one that you want to support. If it’s not one of the featured charities provided by Purefy, make sure you choose one that’s an eligible 501(c)(3) organization.
Even if you’re not sure refinancing is right for you, consider going through the comparison process with Purefy to get an idea of what’s available. If your credit score isn’t in a place right now where refinancing makes sense, take some time to improve your credit or ask a family member to potentially cosign an application with you.
Also, keep in mind that student loan refinancing may not be the right decision for you at all. This is especially true if you’re working toward student loan forgiveness or you’re in a repayment assistance program that requires you to have federal loans. Carefully consider all of your options and how each one can help you to make the best decision for yourself.