Yrefy’s Controversial Partnership with Turning Point USA
A student loan refinancing company known for its controversial marketing practices has been securing high-profile speaking slots at Turning Point USA (TPUSA) campus events, using these opportunities to promote its financial products to college students and their families. This arrangement has raised concerns among consumer advocates who warn that the company's tactics may be misleading.
Yrefy, which was fined $750,000 in a settlement over accusations of deceptive marketing and investment materials, did not admit or deny the charges. The company has since made changes to its investment marketing materials and claims to have resolved regulatory issues in Massachusetts.
The partnership between Yrefy and TPUSA has drawn criticism from watchdogs, who argue that it turns the nonprofit into a platform for potentially misleading financial deals. Alan Collinge, founder of Student Loan Justice, called Yrefy “a shady company” and noted the irony of TPUSA promoting a business that has been caught deceiving investors.
Turning Point USA has not commented on the matter, while Yrefy co-founder Laine Schoneberger claimed the company has taken steps to address past issues and now offers a “very strict policy” of not encouraging borrowers to default on their loans.
How Yrefy Operates
Based in Phoenix, Yrefy targets borrowers with private student loans that are already in default or serious delinquency. It purchases these distressed loans from original lenders for pennies on the dollar and then refinances them into new loans, often with lower monthly payments but with five percent origination fees and other potential costs.
Despite this, watchdogs warn that Yrefy banks on people being desperate or naive enough to accept financing terms they would otherwise reject. Some borrowers end up defaulting on their loans, damaging their credit, in order to become Yrefy customers.
Schoneberger, who serves as the company’s managing partner and chief investment officer, touts Yrefy’s loans for their low, fixed-interest rates and custom terms built around borrowers’ ability to pay.
Regulatory Issues and Investment Claims
Yrefy faced regulatory trouble last year when the Massachusetts Security Division fined it $750,000 and ordered it to offer $1.4 million in refunds for making misleading and deceptive claims to investors. Regulators found that the company failed to disclose that it does not always pay a 10.25 percent fixed return on investments, as claimed by its paid endorsers.
Additionally, Yrefy falsely claimed to investors that “there is no attack on your principal if you ever need your money back,” when in fact, the company charges clients for early withdrawals. Yrefy entered a consent decree with state regulators in 2025 agreeing to payments without admitting or denying any wrongdoing.
Anna Anderson, senior attorney with the National Consumer Law Center, urges the public to beware of any lending company that has been sanctioned by a state, calling the Massachusetts penalties a “red flag.”
The Role of Charlie Kirk and TPUSA
Schoneberger frequently appears on TPUSA’s campus tours, extolling the virtues of “faith, freedom, family,” and capitalism. Part of his pitch includes speaking about his closeness with Charlie Kirk, who appeared in a 60-second TV spot for Yrefy in 2025, months before his death.
At an event in Minnesota, Schoneberger recounted witnessing Kirk's assassination and then launched into his business pitch. He described how he helped carry Kirk to the SUV and spoke about the impact of his passing on the organization.
Kirk left behind a financial legacy of more than $20 million for his children and owned some for-profit companies in addition to running his $100 million nonprofit organization, according to a Daily Mail investigation.
The Broader Impact of Student Debt
Refinancing student loan debt is big business. Currently, about 45 million borrowers across the US collectively owe roughly $1.8 trillion in student loans, making them one of the largest kinds of household debt after mortgages.
Watchdogs have urged borrowers to be skeptical of Yrefy’s claims that its refinancing saves them money, brings them “financial freedom,” and allows them to pay off loans “with dignity.” They also advise borrowers to avoid defaulting on loans whenever possible.
Betsy Mayotte, president and founder of the Institute of Student Loan Advisors, urges distressed borrowers to try to work with their current lenders rather than refinancing with companies like Yrefy. For borrowers already in default, she said those loans can be among their “few options” available.
“For some people, it’s a last resort.”
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