Borrower of a delinquent private student loan successfully secured a refinance at an interest rate of 1.8%, revealing the method she utilized.
In a scenario that resonates with many borrowers, Caitlin Cipriano, a clinical social worker based in Connecticut, found herself overwhelmed by frequent calls from debt collectors, particularly from Sallie Mae. With her student loans in deferment and a credit score of 720, Cipriano initially struggled to manage her debts.
However, Cipriano's story takes a turn for the better when she discovered Yrefy, a private student loan refinancing lender that specialises in helping borrowers with bad credit or those in delinquency or default on private student loans. Unlike traditional refinance lenders, Yrefy does not require a minimum credit score or a specific income level to qualify. Instead, the main eligibility criterion is the borrower's ability to afford the new monthly payments on the refinanced loan.
Yrefy allows borrowers with poor credit histories, as low as an average credit score around 530, to refinance their private student loans. It offers interest rates typically in the range of 1% to 6% fixed APR, with loan terms spanning 2 to 20 years, depending on the borrower’s repayment motivation and ability. This refinancing provides borrowers the benefit of lower interest rates and affordable monthly payments compared to their original private student loans while maintaining responsibility for their original loan balances (which Yrefy pays off on their behalf).
Cipriano, who had approximately $160,000 in delinquent private student loans, refinanced her loans with Yrefy, reducing her monthly payment from $1,400 to $800. Three months after refinancing, her credit score improved to 630. Yrefy negotiates with borrowers' original lenders to pay off the loans at a discounted rate of about 35 to 40 percent of the balance.
It's worth noting that Yrefy shares a portion of the difference between the settled loan and the new loan with "investors, not to the detriment of the borrower." This unique model allows Yrefy to serve a borrower segment often excluded from refinancing options elsewhere.
Cipriano, now relieved from the burden of her student loans, spoke about the resentment she felt about how little she was prepared for the financial consequences of taking out private student loans. She mentioned grieving upon hearing her colleagues talk about their excitement over Public Service Loan Forgiveness (PSLF) and their time in the program coming to a close.
If you find yourself in a similar situation, Yrefy's flexible repayment terms and competitive fixed rates could provide a viable refinancing path. With repayment terms extending up to 20 years, borrowers can find relief from high monthly payments and start rebuilding their credit scores.
Student loans proved to be a significant financial burden for many, including Caitlin Cipriano who found herself in deferment, struggling to manage her debts. However, her story took a turn for the better when she discovered Yrefy, a private student loan refinancing lender that specializes in helping borrowers with poor credit or those in delinquency, offering lower interest rates and flexible repayment terms to help manage personal-finance efficiently.
