With student loan refinancing, you can tackle your education debt and reduce your interest rate. But now there’s another reason for refinancing your loans: you can also help people in need.
Through Purefy’s charity program, $500 will be contributed to non-profit organizations throughout the country that help veterans, education initiatives, and fight hunger each time a borrower refinances with a partner lender.
At the same time, you can save money over the life of your loan. Here’s what to consider if you’re wondering, “Should I refinance student loans?”
How student loan refinancing works
Student loan refinancing is a process you can use to manage your federal or private student loans. When you refinance your loans, you take one or multiple loans and consolidate them with a private lender. Going forward, you’ll have a single loan with different loan terms than you had before, including interest rate, repayment period, and minimum monthly payment.
Student loan refinancing is an easy process; you can usually apply online in under 15 minutes and get a decision right away.
5 Benefits of student loan refinancing with Purefy
While refinancing isn’t for everyone, there are some significant advantages to consolidating your debt:
1. You can comparison shop to get the best rates
To get the best student loan refinance rates and terms, you should shop around with multiple lenders. You can do that on your own, but it can be a time-consuming and tedious process.
Purefy offers a better way: by filling out one simple form, you can compare student loan refinance rates from the top lenders in the industry at once, without affecting your credit score. Once you find a lender that works for you, you can proceed with completing an application.
2. You can save money
When you refinance your loans, you can reduce the interest rate on your debt. With a lower rate, less interest accrues, allowing you to save a substantial amount of money over the course of your repayment term. Just how much can you save?
Let’s say you had $29,000 in student loans and a 6.5% interest rate and a 10-year repayment term. If you refinanced your loans and qualified for a 10-year loan at 4.5% interest, you’d save nearly $3,500 by the time you paid off your debt.
3. You can reduce your monthly payments
By refinancing your loans, you can also decrease your monthly payments. When you refinance, you could qualify for a lower rate. Or, you can extend your repayment term. With either strategy, you can reduce your monthly payments, freeing up more money in your budget for other expenses.
For example, say you refinanced your $29,000 in student loans. But rather than a 10-year term, you select a 15-year term and qualify for a 6% interest rate. Your monthly payment would drop from $329 per month to just $245 per month — giving you an additional $85 per month to spend.
4. You can pay off your loans faster
If you’re wondering when to refinance student loans, the earlier the better. That’s because student loan refinancing can help you save a significant amount of cash and pay off your loans ahead of schedule. With a lower interest rate, your payments chip away at the principal faster so you can become debt-free sooner.
For example, when you refinanced $29,000 in student loans mentioned above and qualified for a 10-year loan at 4.5% interest, your monthly payment dropped from $329 per month to $301.
But if you continued paying $329 per month instead of the new minimum, you’d pay off your loans 13 months earlier than originally planned. And, you’d save an additional $802. Compared to the original loan at 6.5% interest, you’d save over $4,200 and be out of debt more than a year earlier.
|Original Loan||Refinanced Loan||Refinanced Loan with Extra Payment|
|Repayment Term||10 Years||10 Years||9 Years, 11 Months|
|Total Savings Relative to Original Loan||—||$3,360||$4,277|
5. Purefy will make a charitable contribution
When you refinance your loans through Purefy, the company will donate $500 to a charity you choose. Purefy is currently supporting the following organizations:
- Kids in Need: The Kids in Need Foundation is a national non-profit organization that provides free school supplies to children in need so they are able to get a quality education.
- PenFed Foundation: Supporting military service members, the PenFed Foundation helps veterans achieve financial stability.
- Thurgood Marshall College Fund: The Thurgood Marshall College Fund gives financial assistance and other resources to students at historically black colleges and universities, medical schools, and law schools.
- World Central Kitchens: Founded by celebrity chef José Andrés, World Central Kitchens provides meals to people affected by disasters, such as the COVID-19 pandemic.
To qualify for the $500 charitable contribution, follow these steps:
- Use Purefy’s Compare Rates tool to see your refinance options from leading lenders
- After completing the form, pick one of Purefy’s selected charities, or choose another 501(c)(s) organization
- Select the best loan quote for you and fill out an application with that lender
- Once your loan closes and the funds are disbursed, Purefy will donate $500 to the selected charity
Why refinance student loans with Purefy?
Besides the benefits of saving money and paying off debt faster, you can also make a difference in someone’s life. When you refinance your debt with a partner lender, Purefy will make a $500 donation, helping those in need achieve a more stable financial future.