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Top 12 Student Loan Refinancing Questions

Published on Author Purefy Staff

Top 12 Student Loan Refinance Questions

Here are the answers to our top 12 questions on student loan refinancing. Have questions not listed here? Check our FAQs or give us a call!

1. How do I know what my interest rate will be?

You can check your interest rate with our Find My Rate tool. Use this tool to see rates, your new monthly payment, and lifetime savings – all before applying and before a credit check.

2. How long does the application and approval process take?

Our application only takes 15 minutes to complete. If approved, we’ll require a few documents that you will need to upload. There is then a short processing window to make sure everything checks out. After approval and e-signing of the final documents, you will enter a 3-day right to cancel period. Your first payment is then due 30 days after your loan is disbursed. You can always come back to our website to setup your account and make payments.

3. Do you have any fees?

Nope. We never charge application fees, origination fees or prepayment penalties – you can pay more than your monthly payment to get out of debt faster without any type of penalty.

4. Do I have to make a payment to my previous provider even though they have not received the payoff check yet?

We recommend you do so. If you have a payment due with your existing servicer, go ahead and make the payment so you are not assessed any late fees. Any overpayment on your loans will be refunded directly to you via your PenFed account, so the money is coming back to you either way.

5. Will I be able to refinance my loans again?

Yes, but remember that when you refinance federal loans, you cannot switch back to a federal program. If you do need federal benefits such as Income-Based Repayment or are on a loan forgiveness program, it may be advisable to stay with your federal loans.

When you refinance your student loans through us, your loan will still qualify as a student loan (not a personal loan). So, if you’d like to refinance with us again in a few years, just let us know.

6. Do you refinance Parent PLUS loans?

Sure do! We can even transfer Parent PLUS loans to your child, if you’d like to get your name off of the loan. To do this, have your child apply to refinance with us and list the loans you wish to transfer on the application.

7. Do you offer a cosigner release?

If you are applying for the first time and want to have a cosigner taken off your existing loan, just apply on your own. If you apply with a cosigner on your refinance loan, PenFed does offer a cosigner release after making 12 consecutive on-time payments. Please note though, that Spouse Loans are not eligible for the cosigner release.

8. Can my spouse and I refinance our loans together?

Yes, and we will use the higher credit score to get your interest rate as low as we can. To refinance your loans together, apply with one spouse as a cosigner so both names are on the application and list all the loans you would like to refinance.

9. How do I know if I am eligible?

Our full list of requirements can be found here, but if you make above $42,000 and have a good credit score, you may qualify. Our minimum loan requirement is $7,500 and our debt-to-income ratio (DTI) requirements depend on your income. If you have specific questions, remember you can call or chat us for the fastest response.

10. Will I receive a discount for ACH/automatic payments?

PenFed does offer auto-pay as a free service to all borrowers, however there is no additional discount on your rate for doing so. When comparing PenFed’s rates to other lenders, you can compare our rates to the other lender’s discounted rates.

11. How do I apply?

Our application is done completely online. You can get started by going through our rate calculator so you can review all your options and apply.

12. How much will I save by refinancing?

Glad you asked! You can see your exact interest savings and new monthly payment by using our rate calculator. We show you your savings at each rate and term. Pay attention to the lifetime interest savings for each loan term to see what you will save over the life of the loan.

We always enjoy hearing your stories and helping you find the best refinancing fit for you. Have a question we didn’t answer here? Email us at and let us know.