Yrefy’s Story

   Founded in 2017, Yrefy specializes in refinancing distressed and defaulted Private Student Loans. It’s our mission to provide private student loan borrowers a second chance — while creating potential fixed income opportunities for eligible accredited investors who invest through promissory notes.(10)

Yrefy negotiates with lenders and collection agencies to settle and pay off defaulted private student loans at discounted prices. Investor capital raised from the promissory notes is used to refinance these loans, offering custom repayment terms to borrowers, with some investor capital being used for other expenses.(11)

Quick Facts

  • Social Impact: Our goal is to help borrowers restructure defaulted private student loans. Our borrowers often find that they can regain control of their finances, potentially see an increase of their credit score, and begin to live life on their terms.

  • Diversified Loan Portfolio: Borrowers and co-borrowers are geographically and occupationally diverse. Investors invest in the borrower pool, rather than any single individual borrower.(12)

  • Industry Experience and Relationships: Yrefy works with 125+ lenders, servicers, collection agencies, and law firms. 

    • On average, each executive staff member has 20+ years of lending, negotiations, and/or financial services experience.

  • Program Characteristics:(13)

    • Loans must pass through an escrow period before funding, based on the issuer’s internal underwriting guidelines.

    • A majority of the loans (~70%) include co-borrower participation, typically a parent or grandparent.

    • Private student loans are generally not dischargeable in bankruptcy under current laws.

  • Aggregated borrower default rate: ~3% over the past 8 years.(14)

  • Low fixed interest rates and custom terms: According to internal data, Yrefy has historically offered borrowers fixed interest rates ranging from approximately 0.33% to 6.00%, and custom terms from 24 to 120 months. These rates and terms are designed to promote affordability.

  • In-house operational controls: Under­writing, servicing, and collections are conducted internally.

10 Please note: any impact on borrowers does not guarantee investment success—review associated risk factors in PPM.

11 While this model is designed to support borrower repayment, investor returns are subject to risk and are not guaranteed. Please refer to the PPM for a full discussion of investment terms, use of proceeds, and associated risks.

12 The portfolio includes loans from multiple borrowers to reduce individual investor risk. Investments are subject to borrower default, market, and liquidity risks. See the PPM for full details.

13 These features do not eliminate investment risk.

14 Default rate data based on internal Yrefy loan performance from 2017–2025 — it has not been independently audited. There is no assurance that this default rate will be sustained in the future.