Yrefy

Yrefy refinances distressed private student loans at prime borrower rates


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Yrefy, LLC:
What if there were a way to make distressed debt assets, perform?

We asked this question about the specific asset class we thoroughly understand - Private Student Loans.

There has been an established student loan distressed debt asset market since the early 2000’s. Typically, these assets are purchased in bulk, and then robustly collected.

Yrefy’s portfolios are only Private Student loans and are not vulnerable to Federal Student loan forgiveness.

Distressed Borrowers Lack Options

Student Loans are Bankruptcy Protected so a Borrower and Co-Borrower cannot bankrupt Federal or Private student loan debt.

If a Borrower with private student loans finds themselves in distress, they have no options.  Lenders and servicers do not have a plan to work with Borrowers in distress and must move the Borrower to collections and eventually legal judgement.

Borrowers in distress are being charged the default interest rates, late fees and collection costs typically brining the APR to 20% or more, and in many cases, Borrowers are at the maximum usury laws in the state in which they reside.


Approximately 70% of delinquent and defaulted Borrowers also have Co-Borrowers whose credit is being damaged by non-payment of the outstanding loans and relationships are harmed.

Borrowers and Co-Borrowers are highly motivated to refinance their outstanding student loan debt, at a payment they can afford, enabling them to repay these loans, repair relationships and rebuild credit.

How it Works: Yrefy Thoroughly
Underwrites Distressed Borrowers

Yrefy thoroughly and individually underwrites Borrowers:

How It Works: Loan Acquisitions




The Loan Acquisitions Team locates the asset and negotiates the price we’re willing for pay. We average about $0.35 on the dollar and refinance to the Borrower at full face value at a very low interest rate (Avg. 3.9%) plus our refinance fee. This allows the borrower to avoid paying cancellation of debt tax and creates a financial spread that allows us to give our investors an exceptional return.

Key Features of the Investment

Investments are Collateralized and Secured.  We acquire the debt at approximately a 3:1 ratio in the investors favor.

Investors choose a promissory note(s) with terms from 1 to 5 years with exceptional fixed interest rates based on the selected term.

Interest is paid monthly via ACH or can be reinvested with a full return of principal at the end of the term. 

Monthly income can be paid via ACH to as many accounts as the investor would like and the amounts can be changed monthly.

We are currently offering a +1% bonus return upon investment.  You will receive a certificate for the additional 1% upon receipt of funds.

Investor can elect to take income or reinvest and, change as often as monthly even turning income up/down in 1% increments in each individual tranche.

Investor can roll-up to a longer investment term at the maturity of the existing term, locking in the surrender penalty.

Investment is liquid with 30-day money out and allows for partial redemptions/surrenders.  Surrender Penalty is built just like a CD, for early redemptions/surrenders, in whole or part, the penalty is the interest on the redemption amount.

Finally, highly vetted student families desperate for a second chance become excellent credit risks and investors “Do Well by Doing Good”.

Traction & Accomplishments

Product Development: Our product is developed and continues to grow daily. Yrefy SLP4, LLC is our 4th portfolio and our flagship product. It includes the most options we have ever offered and more flexibility to an investor than any investment product available in the market today.

Borrower Acceptance: As of Sept. 30, 2021, we have over 315 borrowers with an average loan size of $41k and, have funded over $13M in loan volume and we have over $6M of loans in the pipeline, ready to fund. 

Investor Acceptance: With over 125 investors, the largest individual investment is $1.5M, with an “investment group” having invested $3.6M. The average investment is about $125k.  Additionally, we are proud to announce a recent investment by a Hedge Fund in October 2021.

Patents and IP: Yrefy has engaged a local patent attorney to file several patents on the SLP4 investment design as well as the technology driving the investor portal.

Partnerships: Yrefy has relationships with 125+ lenders, servicers, collection agencies and law firms that live transfer potential borrowers to our call center daily. Additionally, We are actively working to build relationships with Independent Registered Investment Advisors (RIA’s) and direct-to-consumer channels to raise capital.

Data Security: Our data is quadruply backed and encrypted.  With one set of back ups is air-gapped or not connected to the internet.  This protects our investors, our borrowers and our portfolios.  

Meet The Team

Donald F. Fenstermaker, Chairman & CEO
Don has 31 years of experience, including being the CEO of NextStudent, the third largest privately held student loan company in the United States in 2006-2007, originating over $8 billion in federal and private student loans. He has built extensive financial control systems, including multiple systems focused on internal and external oversight and audits. He was also the CEO of a debt settlement company.

Laine Schoneberger, Chief Investment Officer & Managing Member
Laine has 25 years of experience in the financial services industry. He sold his first business entering the family-owned financial services business in 1995. After growing the company significantly, he elected to retire in 2017 and focus his efforts on Yrefy as a Founding Partner and the Chief Investment Officer.  Laine and his team have raised over $16M in the funding of Yrefy since inception.

Mary Jo Terry, Managing Member
Mary Jo has over 20 years of strategic management experience in financial services, consumer lending, and information technology. She has built multiple student and private loan origination platforms and CRMs and was a key stakeholder in a project building a federal financial aid software management system, which was sold to Oracle. She was also the Founder and President of The Student Loan Processors, Inc.

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