Purefy review: Student loan refinancing for lower interest rates

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Student loans can be a major drain on your finances, and that’s especially true when you’re a single mom. It’s hard to enough to cover rent, utilities, car payments, daycare, and groceries as it is, right? Most of us want to graduate college and move on with our lives — and not pay on our student loans for ten years or more.

Student loans are also the worst because they can last decades and you typically cannot discharge them in bankruptcy — even if you’ve hit hard times.

If you’re struggling, it’s important to remember you’re not alone! The average student borrower who graduated college in 2018 now has $29,800 in student loans to grapple with according to Student Loan Hero — and remember, that’s just the average. Many have a lot more debt to contend with — even six figures or more for those with graduate or professional degrees.

Repaying those student loans to get out of debt isn’t fun, especially when you’re not earning a lot.

Purefy review — should you refinance student loans in 2019?

That’s where companies like Purefy student loan refinancing come in. Purefy, which actually issues student loans through Citizen’s Bank and PenFed (a credit union), makes it easy to refinance your student loans and “live your best life.”

They offer lower interest rates than even Federal student loans can offer to borrowers with great credit, making it easy to score a lower monthly payment that is easier to handle. You can also refinance your student loans to score a shorter repayment timeline that will leave you debt-free sooner.

Interest rates from Purefy can be as low as 2.90% on their variable rate loans, and fixed-rate loans start at 3.50%. You can also score a .25% discount for setting up automatic payments from your bank account.

Keep in mind though that the best rates and terms only go to those with very good or excellent credit, which typically means any FICO credit score of 740 or higher. You may even need to have a score that’s closer to 800 to get their best rates, although Purefy doesn’t explicitly state that. Instead, they maintain you need a “strong credit history” to qualify for their loans.

Related: How to repair your credit to raise your credit score

How much money could you save with Purefy? It really depends on the loans you have and how much interest you’re paying right now.

Currently, Direct Subsidized and Direct Unsubsidized Loans for undergraduate students offer a fixed APR of 5.05%. Direct Unsubsidized Loans for graduate students come with a fixed APR of 6.6%, and Direct PLUS Loans charge 7.6%.

Considering Purefy offers fixed rates as low as 3.50%, it’s easy to see how you could save big by refinancing into a new loan. But first, you have to make sure you qualify, so take 15 minutes or so to check your student loan refinance rate and apply.

How to qualify for student loans with Purefy

Keep in mind that Purefy doesn’t just offer refinancing; they also offer student loans for consumers who need to borrow money for school. With that being said, you’re almost always better off going with federal student loans initially if you can qualify. We’ll go over the benefits of federal student loans in a minute.

Either way, you’ll need to meet some basic requirements if you want to get any type of loan through Purefy. You need to be a U.S. citizen for starters, and we already mentioned how you need a “strong credit history.” Other requirements include having at least one outstanding student loan already and an annual income of $42,000 (or $25,000 if you have a qualified co-signer).

Related: Find high-paying flexible jobs

How to refinance student loans with Purefy

Just like any service on the internet these days, applying for student loans with Purefy is a piece of cake. They’ll even let you get “pre-qualified” without any impact to your credit score provided you can supply your name, address, date of birth, income, college information, and housing information.

Once you get pre-qualified, you’ll be presented with a range of loans and rates you can consider. Purefy lets you choose among different repayment timelines and monthly payment amounts based on the interest rate you qualify for. Depending on your needs and goals, you can choose to repay your new student loan between 5 and 20 years.

If you like any of the options you see, Purefy prompts you to answer several more questions online. They’ll ask you if you’ve had a bankruptcy within the last five years and if you’ve ever defaulted on a student loan. Hopefully, the answer to both questions will be “no.”

From there, you can create a profile on Purefy and move forward with the full loan application. At this point in the process, you’ll need to provide:

  • Social Security number
  • Driver’s license information
  • Phone number
  • Housing information
  • Co-signer information

If you’re approved for student loan refinancing, you can review all related loan documents and sign disclosures online. From there, you can get your loan funds in 14 business days or less.

What to watch out for

The main downside of private student loans is the fact that they don’t offer many of the benefits Federal student loans do. Not only do Federal loans offer low fixed interest rates, but they come with perks such as deferment and forbearance. Both of these programs can temporarily pause your loan payments for a qualified reason.

Federal student loans also qualify for income-driven repayment plans that let you pay online a percentage of your “discretionary income” for up to 25 years before having your remaining loan balances forgiven.

If you go with private student loans or refinance Federal loans with a private lender, you’ll lose out on these benefits completely.

Is refinancing my student loans with Purefy a good idea?

The good news about Purefy student loans is the fact they don’t charge any fees! Purefy says that their lenders “never have fees and we don't think you need to have any additional charges for trying to save money.”

There are no pre-payment penalties, origination, or application fees, so you don’t have to stress over having to pay even more for your student loans.

Also, note that Purefy comes with some pretty big loan limits. For student loans through PenFed, you can borrow between $7,500 and $150,000. For Citizens loans, you can borrow up to $90,000 as an undergraduate or up to $225,000 with graduate degrees or an MBA. Lawyers, doctors, veterinarians, dentists, and pharmacists can borrow up to $300,000.

We also like the fact that Purefy interest rates can be so insanely low. Obviously, paying a fixed 3.50% for the duration of your loans can help you save money if you’re now paying considerably more.

How much? It really depends, but here’s an example:

Let’s say you owe $60,000 on your student loans and your current rate is 6.6%. With this much interest charged on your loans, you would need to pay $684.34 per month on a ten-year repayment plan. Over the course of repayment, you would fork over $22,121.36 in interest for a total of $82,121.36 paid back.

If you refinanced into a new loan at 3.50% APR, your monthly payment would drop to $593.32 on a ten-year repayment plan and you would only pay $11,197.82 in interest. That’s over $10,000 in savings for barely any work on your part!

Pros and cons of refinancing with Purefy


  • You can consolidate several student loan payments into one.
  • Save money with a lower interest rate.
  • Reduce your interest rate and save money so you can pay your loan off faster.
  • Purefy student loans don’t have any fees.


  • Refinancing federal student loans with a private lender means giving up perks like deferment, forbearance, and income-driven repayment plans.
  • Once you give up Federal loan benefits, there’s no going back.
  • You need great credit to qualify on your own.
  • If your credit isn’t great, you will need to apply with a co-signer.
  • You need to earn at least $42,000 per year to qualify (or $25,000 if you have a co-signer).

Should I refinance my student loans with Purefy?

At the end of the day, refinancing student loans can be a smart idea but only if you can qualify for a lower interest rate. If you can’t score a lower APR, there’s really no point in refinancing your loans.

Since Purefy lets you see your rate without a hard inquiry on your credit report, it can’t hurt to see what they offer and compare to the rate you’re paying now.

But you should also compare interest rates and loan terms from several different lenders before you refinance. Purefy may or may not offer the best deal, but you’ll never know unless you check Purefy's student loan refinance rates.

Related: SoFi student loan refinancing review

About Holly Johnson

Holly Johnson is a financial expert, award-winning writer, and Indiana mother of two who is obsessed with frugality, budgeting and travel. Her personal finance articles have been published in the U. S. News, Wall Street Journal, Fox Business, and Life Hacker. Holly is founder of of the family finance resource, ClubThrifty.com, and is the co-author of Zero Down Your Debt: Reclaim Your Income and Build a Life You’ll Love. Learn more about Holly here.

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