The startup offers a consumer finance platform that focuses on distressed private student loans, providing co-borrowers with a fixed repayment timeline and a clear exit strategy without impacting their credit scores. This enables students to secure funding while minimizing the risk of future financial strain.
Funding
$16.8M raised to dateRaised to date based on public sources. This may differ from the amount the company actually raised and is based only on what is publicly available on the internet.
Founders
Product
Problem
Many private student loan borrowers, especially those with co-borrowers, face challenges with high interest rates, inflexible repayment terms, and the potential for default, leading to financial strain and damaged credit scores. Existing refinance options often exclude borrowers with delinquent or defaulted loans, limiting their access to more manageable repayment plans.
Solution
Yrefy provides student loan refinancing solutions tailored for borrowers struggling with delinquent or defaulted private student loans. The company's proprietary credit and risk model allows them to offer refinancing options to underserved borrowers, even those with low credit scores. Yrefy aims to lower interest rates, reduce total debt, and customize payment plans to fit individual budgets. By refinancing these loans, Yrefy helps borrowers rebuild their credit, release co-borrowers from their obligations, and achieve long-term financial stability.
Target Audience
Yrefy's primary target audience includes private student loan borrowers and their co-borrowers who are struggling with delinquency or default, as well as lenders seeking to increase recoveries on defaulted private student loan accounts.
Features
- Refinancing for borrowers with delinquent or defaulted private student loans
- Co-borrower release option with on-time payments
- Fixed interest rates, not dependent on credit score, ranging from 1% to 6%
- Flexible repayment terms customized to the borrower's loan balance and needs
- "SKIP-12" program allowing borrowers to skip one payment every six months during times of hardship
- Forbearance options for borrowers on active military duty, in accordance with the Military Lending Act
- No prepayment penalties
- Online investor portal for managing investments and returns