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There are quite a few student loan refinancing companies out there that can help you lower your interest rates and save a ton of money. One of the companies was formerly known as CordiaGrad, which recently changed its name to “PenFed.”
Though PenFed has a new logo and mission, current borrowers won’t lose out on any of the benefits they enjoyed under CordiaGrad.
So what’s the deal with this change? And what does it mean for student loan borrowers? We’ve got the scoop behind the relaunching of CordiaGrad as PenFed and what it means for you.
A commitment to “pure refinancing”
CordiaGrad recently parted ways from the Bank of Virginia and its parent company, Cordia Bancorp. As part of that move, CordiaGrad is relaunching as PenFed in order to emphasize their singular focus on student loan refinancing.
According to a press release, “The name change signifies the company’s commitment to helping college graduates and their parents save money by refinancing their high-cost student loans.” Thus, the name “PenFed” was chosen to represent “pure refinancing.”
“Since its spinoff from Bank of Virginia, PenFed has been able to devote itself 100% to helping student loan borrowers save money,” explained Jack Zoeller, founder and CEO of PenFed.
Zoeller bought the company from the bank and relaunched it to illustrate the company’s emphasis and new direction. “We have no other customers, products, or priorities outside of student loans,” he said.
What does this mean for borrowers?
Though CordiaGrad is now PenFed, the refinancing company still offers the same products and services as before. Zoeller confirmed that borrowers who applied for student loan refinancing through CordiaGrad can continue to close their loans seamlessly and the only difference for borrowers is the name and the look.
The best part? The new name and look reflect the commitment to customer service and a focus on student loan refinancing, without the baggage or constraints of being partnered with a bank.
“Our new name and independence signal that PenFed is focused on a single mission: relieving the burdens of student debt for college graduates and parents. Have a question or need help? Just ask – it’s our only job,” said Zoeller.
According to Zoeller, student loan borrowers can expect the company to unveil new partners and platforms in the coming months to help bring student loan refinancing to a broader audience.
Benefits of refinancing with PenFed
Refinancing your student loans through PenFed can potentially save you money on interest. In its mission to offer “pure refinancing” and be transparent, the company allows prospective borrowers to see their exact interest rate BEFORE they apply or create an account.
Borrowers can use the Find My Rate tool to see what their interest rate would be if they refinanced with PenFed.
PenFed also offers unique repayment terms. Currently, it’s the only lender in the space that offers an 8-year repayment period.
Additionally, it offers couple refinancing, so spouses can merge their debt into one monthly payment if they want. Both spouses’ income and credit scores are considered and the higher credit score is used to determine the interest rate.
Parents who have Parent PLUS loans also have the option to refinance their loans in their child’s name.
Aside from these perks, PenFed also has no fees, so you don’t have to worry about being nickel and dimed.
What to consider before refinancing
If you’re thinking about refinancing your student loans with PenFed or another company, it’s important to ask yourself a few questions before doing so. You’ll want to understand the repayment terms offered, as well as your prospective interest rate (which is super easy to do with PenFed).
In addition, it’s key to understand that by refinancing federal student loans with any private company, you are giving up your federal student loan repayment options such as income-driven repayment, Public Service Loan Forgiveness, and forbearance.
But if you have a good credit score, a stable job, and want to save thousands of dollars in interest, student loan refinancing can help you ditch your debt sooner rather than later and put money back in your pocket. PenFed could be a good option given the unique features described above.
Though CordiaGrad is now reborn as PenFed, student loan borrowers can rest assured they’ll find the same service and offers. PenFed is committed to focusing only on student loan refinancing in order to best serve you.
Interested in refinancing student loans?Here are the top 6 lenders of 2018!
|Lender||Rates (APR)||Eligible Degrees|
|Get real rates from up to 4 Lenders at once
Check out the testimonials and our in-depth reviews!
|2.57% – 6.32%||Undergrad & Graduate||Visit Earnest|
|2.80% – 7.02%||Undergrad & Graduate||Visit Laurel Road|
|2.51% – 7.80%||Undergrad & Graduate||Visit SoFi|
|2.76% – 8.54%||Undergrad & Graduate||Visit Lendkey|
|2.57% – 6.65%||Undergrad & Graduate||Visit CommonBond|
|2.75% – 8.69%||Undergrad & Graduate||Visit Citizens|