Student loans don’t have to be a till death do you part relationship. We have a unique solution for spouses seeking to refinance through our Couple Loan. With the Couple Loan, only by Purefy, both spouses refinance their student loans together into one monthly payment, one lower interest rate and a better term. When refinancing with your spouse, the interest rate and eligibility is determined jointly. Here is how it works.
Income – Your income doesn’t affect the rate you get but does allow you to qualify for refinancing. With traditional refinancing, if you started your own business, are a stay at home parent or don’t generate enough income to meet the minimum requirement, it becomes impossible to qualify. With the Couple Loan, the income requirement is determined by both spouses combined income. So, if one of you makes $0 per year and the other makes above the qualified solo requirement, you can refinance. Or if your combined income meets the requirement, you can also qualify!
Credit Score – When refinancing with your spouse, we determine your interest rate by the higher of the two credit scores. You do still need fair – good credit to refinance with your spouse and one of you needs a credit score of 700 or higher. Knowing your credit score is always a good call but make sure you both check before refinancing. We pull credit from Transunion when you apply for a loan but don’t do a soft credit check for you to check your rate so you know exactly what you will save before you apply. Select “spouse cosigner” when checking your rates for the Couple Loan. Remember, checking your own credit doesn’t affect your score.
Degree type – The second factor that determines your interest rate is the type of degree you earned. If you both have the same education level, it doesn’t matter who applies as the main applicant but if one of you has an advanced degree, that spouse should apply as the main applicant to ensure the lowest rate. Unlike traditional refinancing, only one person needs to have completed a Bachelors degree or higher to refinance. There is no degree or income requirement for the other spouse.
Loans – If one of you has student loans and the other doesn’t, you can still refinance with the Couple Loan. Similarly, if you both have loans and want to refinance together you can do that too! The sum of all the loans just needs to meet our minimum of $7,500 and not exceed our maximum of $150,000.
Cosigning – When you get married, legally you aren’t responsible for your spouse’s student loans – anything taken out before the wedding is the responsibility of that person. Even after you get married, if one or both of you goes back to school and takes out loans on their own, that is the responsibility of that individual. Like any cosigned loan, the Couple Loan will be on both credit reports and both parties are considered jointly responsible for the loan.
What you owe – Getting organized is always a good first step. Know how much you owe, the interest rate on each loan and what type of payment plan you are on. This will help you know exactly how much you can save and to make sure you aren’t on any federal repayment plans you want to keep. With refinancing, the federal benefits no longer apply so make sure you double check what type of repayment plan you are on.
The Couple Loan allows for a flexible option for married couples who are looking to jointly refinance their student loans. It’s easier to qualify since we consider both spouses together to meet the credit, degree and income requirements. Couple loan refinancing is exclusive to Purefy in partnership with PenFed Credit Union. While consolidating your loans takes the weighted average interest rate, refinancing actually lowers your rate. To apply, our Find My Rate tool and select “spouse cosigner” under the “type of loan” section. As always, give us a call if you have any questions!