Yrefy 2025 Review: The Best Refinance Option for Private Loan Borrowers in Default
Refinance Defaulted Private Student Loans
Refinance Student Loans
- Super low interest rates
- Loans can be delinquent or in default
- No minimum credit score
- Generous skip-a-payment program
- Impressive customer service
- Pricey origination fee
- Not available in every state
- Can’t refinance federal loans
| Rates (APR) | 1.0% – 6.0% |
| Loan amounts | $5,000 – $250,000 |
| Repayment terms | 3 – 20 years |
Yrefy is a one-of-a-kind refinance option for borrowers in default on private loans. You don’t need to meet a minimum credit score or income requirement to qualify for the loans. The company’s real standout feature is the shockingly low interest rates—1% to 6%. The rates are lower than most lenders currently offer and are almost unheard of for borrowers with poor credit.
But Yrefy isn’t the right fit for everyone. The company doesn’t refinance federal loans, so it’s not an option if that’s what you need. Yrefy also adds a 5% origination fee to your new loan. You don’t need to make an upfront payment, and it’s common for lenders to charge a fee like this, especially if you have poor credit. It’s an extra expense, though.
Here’s an in-depth look at Yrefy: how it works, who it’s best for, and how to decide whether it’s your best option.
Table of Contents
How does Yrefy student loan refinance work?
Yrefy operates differently from other lenders. You can be in default on your loan or behind on payments. The company works with your current borrower to negotiate, settle, and pay off your existing loan at a lower amount. Yrefy then refinances the loan at a lower rate.
You’re still responsible for paying off the original balance, but you benefit from a lower rate and more manageable terms. This unique process allows Yrefy to have such low rates.
About 70% of Yrefy borrowers have a cosigner, and you can take advantage of the company’s cosigner release option after 48 months of on-time payments. You need to apply for it, but the process is quick.
The company also has a generous skip-a-payment option. It’s Yrefy’s version of forbearance, and you can easily skip payments once every six months.
| Term | Details |
| Fixed rates (APR) | Less than 1% for under 5 years; 3.65% for 10 years; 5.19% for 20 years |
| Loan amounts | $5,000 – $250,000 |
| Repayment terms | 3 – 20 years |
| Fees | 5% origination fee |
| Cosigner release | Yes, after 48 months of on-time payments |
| Skip payments | Once every 6 months, up to 12 times |
Who is eligible to refinance with Yrefy?
Yrefy’s eligibility requirements are different from what you might find with other lenders. You don’t need a minimum credit score or specific income level. Instead, the key factor is your ability to afford the new monthly payments.
Borrowers who refinance with Yrefy have an average credit score of 530. Your score might be higher or lower, but it’s not a deal breaker either way.
The strictest requirement is the type of loan. Yrefy can’t refinance federal loans and can only assist with private debt.
Let’s take a look at the exact requirements for working with Yrefy.
| Eligibility | Yrefy requirement |
| Loan type | Private student loans |
| Min. credit score | None |
| Min. income | None |
| State of residence | Not available in California, Nevada, New York, Washington, or Montana |
| Graduation status | No degree requirement |
Who should refinance with Yrefy?
Yrefy might be the best refinance option if any of the following apply to you:
- You have delinquent private student loans.
- You regularly worry that you can’t pay your monthly student loan payment.
- You struggle to afford your current student loans.
- You can’t qualify for refinancing with other lenders.
Pros and cons
Refinancing student loans always has pros and cons, no matter which lender you use. Yrefy is a unique lender that fills a gap in the refinance market by working with borrowers other lenders won’t consider. It’s a solid option for some borrowers but not the right fit for everyone.
Pros
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Super low interest rates
Yrefy’s interest rates are comparable to and even lower than the current federal rates, which are almost impossible for delinquent borrowers to find. Current rates are between 1% and 6% APR, and shorter repayment terms have the lowest rates.
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Loans can be delinquent or in default
The company specializes in delinquent loans. Other lenders won’t work with defaulted borrowers, but Yrefy considers them ideal clients.
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No minimum credit score
You don’t need a specific credit score to work with Yrefy. The average credit score is 530, which is much lower than what most lenders accept, and you don’t even need a score that high.
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Generous skip-a-payment program
You can skip a payment every six months, thanks to the SKIP-12 program. It gives you extra flexibility if emergencies pop up or your income changes.
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Excellent customer service
Yrefy’s customer service representatives are friendly and knowledgeable. They’re happy to answer almost any question about the process, and there’s no pressure to sign up right away.
Cons
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Pricey origination fee
You must pay a 5% origination fee when refinancing with Yrefy. While it’s common for lenders to charge a fee, especially when borrowers have low credit, it adds to the overall cost of refinancing.
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Not available in every state
Yrefy can’t work with borrowers in California, Nevada, New York, Washington, or Montana.
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Can’t refinance federal loans
Yrefy only deals with private loans, so it’s not the best option if you want to combine federal and private loans.
What do Yrefy customers say?
Yrefy earns a high rating on Trustpilot, and reviewers repeatedly mention that the company helped them refinance to get a lower monthly payment when other lenders wouldn’t. The company is Better Business Bureau (BBB)-accredited and has been since 2017. But there’s only one review on the site, and it’s only about the company’s customer service, not the loans.
It’s also one of the only student loan refinance companies with an endorsement from Dave Ramsey, a well-known personal finance expert and radio host who promotes debt-free living. While his advice isn’t for everyone, his endorsement adds credibility and may provide extra reassurance if you’re nervous about working with a lesser-known company.
| Platform | Rating | Number of reviews |
| BBB | 1.0/5 | 1 |
| Google reviews | 4.6/5 | 109 |
Collected on May 21, 2025.
Alternatives
It’s hard to find another lender similar to Yrefy. The company has unique eligibility criteria and specializes in helping borrowers whom most lenders refuse to work with. But keep in mind that it’s not the right option for everyone.
Depending on your situation, one of the following student loan companies could work better for you.
- SoFi: This lender offers no fees, low rates, and flexible repayment terms. You can also use free perks, like a consultation with a financial advisor and a career center. The only downside? It isn’t easy to qualify, and you typically need excellent credit.
- ELFI: You can refinance parent loans with ELFI, making it a strong choice for guardians who need a lower payment or different terms. However, you must have a degree, and there’s no option for cosigner release.
- Earnest: This lender allows you to refinance up to $550,000, a larger-than-average maximum amount. The rates are competitive, and you can consolidate federal and private loans. You can also use Earnest’s skip-a-payment option once per year, but Yrefy’s SKIP-12 program is more generous.
- Laurel Road: Medical and dental residents can take advantage of Laurel Road’s $100 flat payment during training. As a bonus, accrued interest won’t compound during that time. You can also consolidate federal and private loans, and guardians can transfer parent loans directly to the child.
How to refinance your student loans with Yrefy
You must speak with a representative to get a sample rate and check whether you qualify. Most lenders allow you to check your rate online, so Yrefy’s process is notably different. Part of the reason is that the company considers more than just your credit score. The application process is still quick, but you need to talk with someone from the company to make it happen.
After the initial conversation, you must submit supporting documents and verify your identity, which is standard with most lenders. During the mandatory phone call, a loan specialist walks you through every step.
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