If your private student loans have gone into default, most refinancing lenders won’t look at you. Yrefy is built for exactly that situation. Here’s how it works, who it’s for and what to check before you apply.

What Yrefy does

Yrefy refinances private student loans only. It doesn’t refinance federal loans.¹ It says it specializes in borrowers whose loans are in default or behind, and it doesn’t set a minimum credit score.¹

According to Bankrate, Yrefy works by negotiating a discounted payoff with your original lender, then giving you a new loan.²

Rates and terms

• Rates: Yrefy lists fixed rates of 0.1% to 5.99% APR for qualified borrowers.¹
• Terms: 2 to 20 years, according to Bankrate.²
• Checking your rate: Yrefy says its rate check won’t affect your credit.¹
• Flexibility: Bankrate reports you can skip up to one payment every six months.²

Who can’t use it

• Some states: Yrefy says it doesn’t offer its products in California, Connecticut, Mississippi, Montana, New York or Washington.¹
• Federal loans: not eligible.¹
• Anyone who can’t show they can repay: Yrefy still looks at things like income and debt-to-income ratio.¹

What to check before you sign

• Costs: Yrefy’s own FAQ notes there can be upfront costs to refinancing. Ask exactly what you’ll pay before you commit.¹
• Total cost, not just the payment: a long term can mean a low payment but more interest overall. Run it through our refinance calculator.
• Your current lender’s options: before refinancing, call your current lender or servicer and ask what hardship or settlement options they offer.
• Free help: a nonprofit credit counselor can review your whole budget with you.³

How to reach a nonprofit credit counselor: call the National Foundation for Credit Counseling at (800) 388-2227 (nfcc.org), or the Financial Counseling Association of America at (800) 450-1794 (find a counselor). Ask for any fees in writing before you sign up.

The bottom line

If your private student loans are in default and other lenders have turned you down, Yrefy is one of the few companies built for that situation. Just read the full offer, including any costs, before you sign.

See if you qualify: Check your rate with Yrefy (paid link)

Sources

1. Student Loan Refinance, Yrefy, checked October 12, 2026.
2. Refinancing with Yrefy, Bankrate, July 22, 2025.
3. What is credit counseling?, Consumer Financial Protection Bureau.

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