Navigating the complex world of student loans can be overwhelming, but student loan provider Earnest aims to simplify the process with its flexible, straightforward approach.
In this comprehensive review, we’ll explore the benefits, drawbacks and unique features of Earnest’s student loan offerings. We’ll provide insight into the application process, loan requirements and repayment options, helping prospective borrowers decide if Earnest is the right fit for their needs.
Last Updated
| Highlights |
|---|
| Fast application and decision process. Hear back in as little as 24 hours |
| Customizable payment plans with 4 flexible repayment options |
| Allows students to skip one payment every 12 months2 |
| No origination fees, no application fees & no late fees |
As a subsidiary of Navient, a major name in the student loan servicing market, Earnest has become a reputable provider of private student loans and student loan refinancing since its inception in 2013.
The company’s mission to make higher education accessible and affordable for everyone is reflected in their flexible, low cost loan options tailored to individual needs. Earnest is known for their competitive interest rates, transparent terms, innovative repayment options and seamless online application process.
Whether you’re an undergraduate, graduate or former student looking to refinance existing student loans, Earnest offers a range of products with flexible and customizable lending options designed to meet diverse financial needs.
| Pros | Cons |
|---|---|
| Flexible Repayment Options: Borrowers can choose from four repayment plans and set their payment frequency and payment date. This flexibility allows borrowers to find a plan that best fits their financial situation. | No Cosigner Release Option: Once a cosigner is added to the loan, they remain responsible for the duration of the loan. This can be a drawback for those who want to release their cosigner after improving their own creditworthiness. |
| Customizable Loan Terms: Borrowers can select from loan terms ranging from five to 15 years, helping to ensure that monthly payments are affordable. | Credit Score Requirement: A minimum credit score of around 650 is required to qualify for a loan, however cosigner loans are available for those who don’t meet the minimum requirements on their own. |
| No Hidden Fees: Earnest does not charge origination, disbursement, prepayment or late payment fees, which saves borrowers money over the life of the loan. | Limited Availability for International Students: While Earnest offers loans to international students, the options are limited compared to domestic students. Eligibility criteria can be stringent for non-U.S. citizens. |
| Competitive Interest Rates: Earnest offers both fixed and variable interest rates that are highly competitive in the market. This can result in lower monthly payments and reduced overall cost of borrowing. | |
| Generous Grace Period: Earnest gives their borrowers nine months after graduation before loans enter repayment—three months longer than other lenders. | |
| Auto-Pay Discount: Borrowers can reduce their interest rate by 0.25 percent and save money over time by enrolling in automatic payments. | |
| Rate-Match Guarantee: Earnest will match any competitor’s rate and give borrowers a $100 Amazon gift card once the rate match is finalized. |
For undergraduate students pursuing a bachelor’s degree, Earnest provides private student loans with flexible terms and competitive interest rates. These loans are designed to cover educational expenses, including tuition, fees, books, laptops and other costs associated with attending college.
A key differentiator of Earnest is the amount of flexibility built into their loans, including flexible loan terms, customizable payment date and four repayment options, including an option for students to pay $25 per month while in school to help reduce the overall amount owed over the life of the loan.
Earnest offers loans specifically tailored for students pursuing advanced degrees. These loans come with competitive interest rates and customizable repayment options, making them a good choice for graduate students who need financial support.
Like Earnest’s private student loans, their graduate students are also available with fixed or variable interest rates, and borrowers can take advantage of in-school deferment options and select repayment terms that align with their post-graduation income expectations.
Although options for international students are more limited, Earnest does provide loans to eligible non-U.S. citizens who meet specific criteria. These loans are available at competitive rates and can help international students finance their education in the U.S.
However, eligibility requirements are strict, for instance these loans are available to students from a select handful of countries, pursuing a specific degree, and they must be attending a school that’s on Earnest’s approved list.
Earnest offers a host of other student loans, such as cosigner loans, parent loans and loans for MBA programs, medical school and law school. Half-time student loans and DACA student loans are also available through Earnest.
Earnest’s refinance loans are available for both federal and private student loans. Refinancing offers borrowers the ability to get a better rate, remove a cosigner and combine multiple loans into one easy payment.
Borrowers can customize their new loan terms, choosing from a range of repayment periods to fit their financial goals. The refinance process is straightforward, and Earnest offers tools to help estimate savings and compare different refinance options.
While Earnest doesn’t offer a traditional consolidation loan option, many borrowers choose to refinance multiple payments into one with Earnest’s student loan refinance option.
The end result can be one low payment, often with a lower interest rate amount. So you still end up reaping the benefits of consolidation, with the potential for rate savings.
Interest rates vary depending on a number of different factors, including type of loan, borrower credit history and whether or not you’re applying with a cosigner. Earnest offers competitive fixed and variable interest rates, and a 0.25-percent interest rate reduction for enrolling in their auto-pay program.
The Earnest Student Loan Manager is a free tool that helps people with federal student loan debt manage their loans.
It can help borrowers find their servicer, lower monthly payments, optimize their repayment plan and get personalized payoff recommendations, while retaining their federal student loan protections, such as student loan forgiveness.
This is where borrowers gain access to loan options, account details, payment history and customer support. Borrowers can log in at any time to review their account and make adjustments as needed.
With this option, there are no payments due while in school and for nine months after graduation during the grace period, allowing students to focus on their education without worrying about immediate payments. After the grace period ends, full monthly payments begin.
This is a great option for students who will not have a steady income while in school. However, it results in the highest accrued interest and highest total cost of the loan over time.
With this option, students make $25 monthly payments while in school and during the nine-month grace period. Nine months after graduation, full monthly payments begin. This option results in a small reduction to your total loan cost.
Borrowers pay the loan interest while in school and for the nine-month grace period following graduation, resulting in less accrued interest and a larger reduction to your overall loan cost. Full payments begin after the grace period ends. This option is only available on cosigned student loans.
This option requires full minimum monthly payments while in school and following graduation, resulting in the lowest total loan cost. This loan repayment option is only available on cosigned student loans.
Both private and federal student loans are eligible for refinance with Earnest. Borrowers must meet certain eligibility criteria, including credit score and income requirements, to qualify for refinancing.
Refinance loans often come with lower interest rates than the original loans, providing significant savings over time. Borrowers can choose between fixed and variable rates based on their financial preferences and risk tolerance.
If your current student loan doesn’t have a cosigner release option, you can opt to refinance with Earnest to remove the cosigner and free up their debt-to-income ratio.
This free tool helps borrowers estimate potential savings and new loan terms. By inputting their current loan details, borrowers can see how much they could save by refinancing with Earnest.
Earnest also offers a free student loan calculator that lets borrowers see how much their monthly payment will be based on the different loan terms and interest rates available.
Earnest’s Client Happiness team is friendly, knowledgeable and quick to respond. They can be reached via phone or email:
SoFi and Earnest are both private student loan providers, offering a variety of options for undergraduate, graduate and refinance loans. Both lenders stand out for their competitive interest rates, no hidden fees, a good variety of term options and a quick, user-friendly online process. Earnest offers an edge in grace period length, with a generous nine-month period compared to SoFi’s standard six-month period. However, Earnest does not have a cosigner release option for their loans, while SoFi does.
Earnest Student Loans provide a flexible and competitive option for both private student loans and refinancing. With a variety of loan options, flexible repayment plans and no hidden fees, Earnest stands out as a top choice for students seeking to fund their education. We love that Earnest offers a generous nine-month grace period, while most other lenders only offer six, and they have a strong customer support team and robust resources to help borrowers along every step of the journey.
Yes, Earnest is a legitimate and trustworthy financial institution specializing in private and refinanced student loans. The company is accredited with an A+ rating from the Better Business Bureau and boasts an excellent customer satisfaction score of 4.7 out of 5 stars on Trustpilot. Additionally, Earnest is known for its transparency and efficiency, with numerous users praising its straightforward application and approval process.
No, Earnest student loans are private student loans, not federal loans. Unlike federal student loans, which are funded and regulated by the U.S. Department of Education, Earnest’s loans are funded by other lenders. As a result, they do not come with the same benefits or protections as federal loans, such as income-driven repayment plans or forgiveness programs. However, Earnest offers competitive interest rates, flexible repayment options and a quick, simple application process, making it a viable option for many borrowers seeking alternatives to federal loans.
Yes, Earnest student loans are considered good by many borrowers. They offer competitive interest rates, flexible repayment options and no fees. Earnest is known for its transparency and user-friendly application process, which can be completed entirely online. Additionally, the company has positive customer reviews and an A+ rating from the Better Business Bureau, reflecting its commitment to customer satisfaction and trustworthiness. These features make Earnest a strong contender in the private student loan market.
Student Loan Origination (Private Student Loan) Interest Rate Disclosure:
Actual rate and available repayment terms will vary based on your income. Fixed rates range from 4.14% APR to 16.74% APR (excludes 0.25% Auto Pay discount). Variable rates range from 5.87% APR to 17.10% APR (excludes 0.25% Auto Pay discount). Earnest variable interest rate student loan origination loans are based on a publicly available index, the 30-day Average Secured Overnight Financing Rate (SOFR) published by the Federal Reserve Bank of New York. The variable rate is based on the rate published on the 25th day, or the next business day, of the preceding calendar month, rounded to the nearest hundredth of a percent. The rate will not increase more than once per month. Although the rate will vary after you are approved, it will never exceed 36% (the maximum allowable for this loan). Please note, Earnest Private Student Loans are not available in Nevada. Our lowest rates are only available for our most credit qualified borrowers and contain our .25% auto pay discount from a checking or savings account. It is important to note that the 0.25% Auto Pay discount is not available while loan payments are deferred.
Methodology
Behind Our Best Student Loans Ratings
We make choosing the best student loan easy with expert reviews and rankings.
Here’s the methodology behind our ratings:
