Meet U-Fi, a preferred student loan refinancing partner here at LeverageRx and the focus of our latest company profile.
In this student loan refinance review, we'll cover:
- U-Fi's emergence in the student loan refinance space.
- The benefits of refinancing student loans with U-Fi.
- How refinancing student loans with U-Fi works.
Let's get started.
U-fi was founded in 2015 as a partnership between Nelnet – the nation's largest student loan servicer – and leading financial institutions. The company connects borrowers with its lending partners, which offer a variety of student loan products.
Although U-fi is not rated by the Better Business Bureau, its parent company, Nelnet, has an A+ rating with the agency and backed by over 40 years of student lending experience. U-fi did not have any complaints registered with the Consumer Financial Protection Bureau in 2018.
Student loan refinancing basics
U-fi offers student loan refinancing in 49 states and Washington, D.C. (It does not offer services in Vermont.)
As of 2020, the company reports average borrower savings of $26,000 for medical professionals. lowered their interest rates by an average of 3 percent.
U-fi offers refinancing terms of 5, 10 and 15 years. Those refinancing at least $25,000 have a few additional options:
- You can choose a 20-year loan term.
- You can choose a 25-year loan term at a variable interest rate.
U-fi does not offer grace periods for refinancing. U-fi operates on an immediate full principal and interest repayment plan. First payment is due 30-45 days after the first loan is issued.
U-Fi offers a completely online application process. You can get a free rate quote in as little as two minutes (without hurting your credit score).
Student loan refinancing eligibility
To qualify for student loan refinancing with U-fi, you must:
- Be a U.S. citizen or have permanent residency status.
- No longer be attending school on a half-time or more basis.
- Have a minimum of $5,000 in student loans to refinance, up to a maximum of $500,000, depending on the borrower’s degree type.
- Have entered grace or repayment on the loans you wish to refinance.
- Have at least $36,000 in annual income.
Information you will need for your refinance application includes:
- Contact information.
- Home address.
- Social Security number.
- Proof of income.
- Information on any loans, including servicer, interest rate and outstanding balance.
U-fi will typically fund loans within one to two weeks from approval.
Benefits of refinancing with U-fi
U-fi offers the following benefits:
- It provides unemployment protection that includes 24 months of hardship forbearance against unexpected loss of income.
- Co-signers are allowed and you can release your cosigner once you make 24 on-time payments.
- The company offers a 0.25% interest rate reduction if you agree to make monthly payments via an automatic deduction from a savings or checking account.
- U-fi doesn’t charge origination, application or prepayment fees.
- You can refinance both federal and private student loans.
Cancellation in the event of death or disability
U-fi student loans may be canceled in the event of death or disability.
Upon notification of the death of a borrower or cosigner, U-fi will immediately suspend due diligence and billing to the deceased party. If no death certificate is received within 60 days of initial notification, due diligence and billing processes will resume.
If confirmation is received of the borrower’s death, U-fi will write off the remaining loan balance, effective on the date the borrower died.
If proof is received that the cosigner is deceased, the cosigner will be removed as a party on the loan and servicing continues for the borrower, as the sole responsible party.
U-fi’s disability cancellation policy calls for a 60-day admin forbearance while waiting for the customer to return their application. Subsequent 60 day admin forbearance will be applied if the returned application does not contain all necessary information and needs to be returned to the customer; up to a maximum of 180 day of admin forbearance will be processed.
Disability can be determined by the U.S. Department of Veteran Affairs or Social Security Administration (SSA), along with a completed total and permanent disability application, sections 1 and 2.
If you took the time to read this company review, chances are the following question has crossed your mind:
How do I find the right solution to my student loan refinancing needs?
To help you answer this crucial question, we covered:
- U-Fi's mission and background.
- How refinancing with U-Fi works.
- Benefits of refinancing with U-Fi.
If you're still not sure where to start, then we recommend running a rate comparison right here at LeverageRx. It's quick, easy and free!