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How This Fintech Is Disrupting the Student Loan Industry

Andrew Zoeller
How-This-Fintech-Is-Disrupting-Student-Loan-Refinancing
How-This-Fintech-Is-Disrupting-Student-Loan-Refinancing

Federal student loan
Payments Return December 31

We've got you covered.

Get Purefy’s free 20-page Ultimate Guide with just one click.

Federal student loan
Payments Return December 31

We've got you covered.

Get Purefy’s free 20-page Ultimate Guide with just one click.

More students than ever — 69%, at last count — are leaving college with student debt.

Some graduates don’t think twice about the aspect of that debt that is really costing them money — the interest rate.

On federal loans, your rate is set by the government, and you get no savings — regardless of how good your credit is, or whether you have a good job. Private loan interest rates are generally even higher.

Did you know that there is an easy — and proven — way to save money on student debt?

What’s more, if you have good credit and steady income, the savings could be startling.

In this article, we’ll talk about student loan refinancing, and how Purefy is helping borrowers navigate this increasingly popular financial strategy.

Getting a great student loan refinance rate used to be hard

Most top lenders offering student loan refinancing have useful websites where you can fill out an application and see what rate they will offer you.

But how do you know you are getting the best deal?

How does filling out five loan applications sound? (Marginally better than going to the dentist?) That used to be the only way to compare lenders and save the most money.

Purefy has changed things. The power of choice is back in the hands of student loan borrowers, where it belongs.

With one simple form, Purefy can check your rates with the best lenders — and do all the hard work for you.

Your available rates, terms, and monthly payments will be presented to you in one easy, sortable chart — with total transparency. From there, if you like what you see, you can choose a lender and complete their online application in 10-15 minutes.

This is key: you must compare rates if you want the best deal.

You shouldn’t even consider shopping for a loan based on advertisements or —top 5 lender” reviews. That’s the #1 way to lose money, and that’s why Purefy is here to help.

The 4 Best Companies to Refinance Student Loans

Our Top-Rated Picks for 2022 Offer Low Rates and No Fees

efli-lender
No Maximum Loan Amount

Fixed Rate

4.29% – 7.29% APR 4

Variable Rate

2.48% – 7.24% APR 4
98% of surveyed customers would recommend SoFi to a friend

Fixed Rate

3.99% – 8.24% APR 3

Variable Rate

2.49% – 8.24% APR 3
earnest-logo
Precision Pricing — Pick Your Monthly Payment

Fixed Rate

3.74% – 8.49% APR 2

Variable Rate

2.49% – 7.99% APR 2
Loans Available in All States but Maine and Oregon

Fixed Rate

3.94% – 8.48% APR 5

Variable Rate

Not Offered

Why refinance student loans?

When you refinance student loans, you take out a new student loan with a private lender who pays off your existing student debt. Your current loans, in effect, get merged (—consolidated”) into one new loan, with a great new rate and the repayment term of your choice.

Refinancing can help you:

  • Save money: a lower interest rate means big savings
  • Pay off your loans faster: use your savings to pay off your loan faster
  • Lower your payment: pick a longer term and watch your monthly payment drop

There are a few things to consider first. For instance, if you have federal student loans, you will give up access to your federal benefits like income-driven repayment plans and loan forgiveness when you switch to a private lender. But if you don’t plan on using those programs — or aren’t eligible — the decision to refinance may be easy.

Is a refi right for you?

When you refinance, your rate is generally based on your credit score, your income, and other factors like the type of degree you have. To get the lowest rates that lenders advertise, you will need to have excellent credit and meet other criteria (which vary from lender to lender).

That said, you don’t necessarily need a perfect credit score to get a great student loan refinance rate in 2020. Rates have come down significantly as the Federal Reserve continues to lower rates.

The best part? It only takes a few seconds using Purefy’s rate comparison tool to see what rates you may qualify for from the best lenders — with no effect on your credit score.

You can even check back as often as you like to see if rates have changed — which they regularly do.

Putting student loan borrowers first

At Purefy, we understand the tough set of financial goals that most graduates are facing.

Whether it’s saving for a house, balancing your checking account as you work your way up in your career, or planning to have children, student loans have a big impact on your ability to pursue your dreams.

Our tools help you understand your options, so you can make an educated decision on whether refinancing is the right financial strategy for you.

We feel so strongly about making sure you have the tools to succeed, that we are currently offering free student loan refinance consultations with our award-winning team of experts. Schedule your consultation today, and get your questions answered.

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efli-lender

Student Loan Refinancing

Refinancing from 2.48% APR

Check your rate in 2 minutes

with no impact on your credit score.

ELFI Rate Disclosure

4 ELFI Rate Disclosure:

Education Loan Finance is a nationwide student loan debt consolidation and refinance program offered by Tennessee based SouthEast Bank. ELFI is designed to assist borrowers through consolidating and refinancing loans into one single loan that effectively lowers your cost of education debt and/or makes repayment very simple. Subject to credit approval. See Terms & Conditions. Interest rates current as of 09-01-2022. The interest rate and monthly payment for a variable rate loan may increase after closing, but will never exceed 9.95% APR. Interest rates may be different from the rates shown above and will be based on the term of your loan, your financial history, and other factors, including your cosigner’s (if any) financial history. For example, a 10-year loan with a fixed rate of 6% would have 120 payments of $11.00 per $1,000 borrowed. Rates are subject to change.

SoFi Rate Disclosure

3 SoFi Rate Disclosure:

Fixed rates range from 3.99% APR to 8.24% APR with a 0.25% autopay discount. Variable rates from 2.24% APR to 7.99% APR with a 0.25% autopay discount. Unless required to be lower to comply with applicable law, Variable Interest rates on 5-, 7-, and 10-year terms are capped at 8.95% APR; 15- and 20-year terms are capped at 9.95% APR. Your actual rate will be within the range of rates listed above and will depend on the term you select, evaluation of your creditworthiness, income, presence of a co-signer and a variety of other factors. Lowest rates reserved for the most creditworthy borrowers. For the SoFi variable-rate product, the variable interest rate for a given month is derived by adding a margin to the 30-day average SOFR index, published two business days preceding such calendar month, rounded up to the nearest one hundredth of one percent (0.01% or 0.0001). APRs for variable-rate loans may increase after origination if the SOFR index increases. The SoFi 0.25% autopay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. This benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. The benefit lowers your interest rate but does not change the amount of your monthly payment. This benefit is suspended during periods of deferment and forbearance. Autopay is not required to receive a loan from SoFi.

Earnest Rate Disclosure

2 Earnest Rate Disclosure:

Actual rate and available repayment terms will vary based on your income. Fixed rates range from 3.99% APR to 8.74% APR (excludes 0.25% Auto Pay discount). Variable rates range from 2.74% APR to 8.24% APR (excludes 0.25% Auto Pay discount). Earnest variable interest rate student loan refinance loans are based on a publicly available index, the 30-day Average Secured Overnight Financing Rate (SOFR) published by the Federal Reserve Bank of New York. The variable rate is based on the rate published on the 25th day, or the next business day, of the preceding calendar month, rounded to the nearest hundredth of a percent. The rate will not increase more than once per month. The maximum rate for your loan is 8.95% if your loan term is 10 years or less. For loan terms of more than 10 years to 15 years, the interest rate will never exceed 9.95%. For loan terms over 15 years, the interest rate will never exceed 11.95%. Please note, we are not able to offer variable rate loans in AK, IL, MN, NH, OH, TN, and TX. Our lowest rates are only available for our most credit qualified borrowers and contain our .25% auto pay discount from a checking or savings account.

ISL Rate Disclosure

5 Iowa Student Loan Rate Disclosure:

Fixed Rate Loan Terms: 5 years/60 monthly payments, 7 years/84 monthly payments, 10 years/120 monthly payments, 15 years/180 monthly payments, or 20 years/240 monthly payments. Annual Percentage Rate [APR] is the cost of credit calculating the interest rate, loan amount, repayment term and the timing of payments. This rate is expressed as an APR. Fixed APRs range from 3.94% to 8.48% APR [low to high range with 0.25% auto-debit rate reduction]. Rates are subject to change without notice. Fixed rates will not change during the term. Since there are no fees associated with this loan offer, the APR is the same percentage as the actual interest rate of the loan including a 0.25% auto-debit rate reduction. These rates are subject to additional terms and conditions, and rates are subject to change at any time without notice. All estimates are based on information provided by you and are for informational purposes only, accuracy is not guaranteed and may not reflect actual rates or savings and do not constitute an offer of credit. Your actual rate, payment and savings may be different based on credit history, actual interest rate, loan amount, and term, including your cosigner [if applicable]. If applying with a cosigner, we use the higher credit score between the borrower and the cosigner for approval purposes. All loans are subject to credit approval.

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