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Earnest offers flexible loan terms with competitive rates
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Updated September 12, 2024
Our Take Earnest offers student loans and refinancing options with flexible repayment terms, a generous grace period, and several borrower protections. Earnest considers more than your credit score when applying, but there are stringent requirements that may make it difficult to qualify. Pros and Cons Pros Can qualify with credit score as low as 650 No origination, application, or late fees Flexible loan and repayment terms Can skip one payment per year Cons Personal finance review required No co-signers on refinances Loans not available in all states Key Takeaways Company Overview Earnest (formerly MeetEarnest) is a student loan company that offers private student loans and refinancing for current and former students (and co-signers). Earnest was founded in 2013 as a student loan refinancing company, and started offering student loans to undergraduate and graduate students in 2019. It now offers MBA, law, medical, and professional loans as well. Table of Contents Earnest Student Loans Review Quick Look Pros Explained Cons Explained Loans Offered Eligibility and Approval Fees and Repayment Refinancing How to Apply Alternative Choices Final Verdict Methodology Earnest may be a good choice, but there are many student loan lenders out there; see our picks for the best student loans to help fund your education. Earnest offers undergraduate student loans to half-time or full-time enrolled students. Borrowing terms are relatively favorable, including a nine-month grace period and rates as low as 5.62% APR variable or 3.69% APR fixed (includes autopay discount). Co-signers are available on undergraduate loans, but cannot be released from the loan without a loan refinance. Earnest offers graduate student loans to half-time or full-time enrolled students (co-signers accepted), with a minimum borrowed amount of $1,000. These loans are available for graduate-level programs, including medical school, law school, and MBA programs. They come with flexible term lengths, from five to 15 years. As with other loans, Earnest offers a generous nine-month grace period and fairly low minimum starting rates. Deferment options are available to medical school grads in residency, qualifying military members, and those returning to school. Private parent student loans are available to parents of qualifying children who are enrolled full-time in an undergraduate-level program (at least half-time for seniors). There is no enrollment requirement for graduate students. Parent loans are different from co-signed loans, as the parent is the only one responsible for repayment of the loan. Standard terms apply, including access to a nine-month grace period (but not deferment), loan terms from five to 15 years (depending on program), and low interest rates. But there are fewer repayment options available to parents; interest-only and full payment plans are available, but deferment and fixed-payment plans are not available. To qualify for a student loan with Earnest, you must meet the following eligibility requirements: There are also personal financial requirements considered as part of the application process: Earnest also reviews your bank statements and debt obligations, and requires the following: The requirements list is a bit lengthier than other student loan competitors, but this process helps Earnest lend to borrowers with lower credit scores. You can also apply with a co-signer that meets these requirements to help you get approval for a loan, but both parties must have no debts in collections and no history of bankruptcy on their credit reports. DACA recipients are eligible for loans, but only with a qualifying co-signer. Co-signers are only required for students who don’t meet the qualifying criteria for a student loan. This means that students earning less than $35,000 or with a credit score under 650 will need a co-signer to qualify. Earnest offers a loan eligibility check and the ability to check your rate before you submit a complete application. For the loan eligibility check, you will need to provide personal information, including full name, address, school details, and credit score. To check your estimated loan rates, you’ll submit some financial information and Earnest will run a soft pull of your credit profile from Experian (this will not affect your score). This will give you the possible loan rates for both variable and fixed loans, and then you can complete your application. After the application is submitted online, it typically takes three to five days to receive a decision. If approved, you will then select your loan details, and Earnest will reach out to your school to verify your enrollment. School certification varies by school, and it can take a few weeks before funds are disbursed. Some schools don’t certify until within a few weeks of classes starting, but others complete the process within a fixed time frame. It is always best to apply as early as possible to ensure funds are available when needed. Earnest does not charge many loan fees—there are no origination, prepayment, early payment, or extra payment fees. Earnest also does not charge any late fees. However, if there is a returned payment, Earnest reserves the right to charge up to $8 to pay for return processing fees. While interest is still charged during deferment or forbearance, there are no additional fees for using these services. Earnest offers a 0.25% discount for setting up autopay on any account. This discount is reflected in the advertised rates. There are no other discounts available. Earnest has some of the best repayment options for a student loan provider, with four different options for student loans, and flexible repayment terms for student loan refinancing. Here are the repayment options available: Earnest also offers a nine-month grace period for graduates to begin making full payments, though interest is still charged during the grace period. Earnest offers a referral program, rewarding both you and the referred person with $200 if someone signs up for an Earnest loan with your link. Earnest also hosts a scholarship program, awarding $5,000 to 10 individuals throughout the year. Earnest offers several loan relief programs for borrowers in financial hardship: Earnest offers flexible student loan refinancing, with the ability to choose your monthly payment and repayment terms from a range of five to 20 years (down to the exact month). Bi-weekly payments are also available to cut down on the interest paid over the life of the loan. Student loan refinancing is not available for students who have not completed their degree, or are not on track to complete by the end of the semester. Interest rates start at 5.89% APR for variable rate loans and 4.89% APR for fixed-rate loans (includes autopay discount). The range of minimum and maximum amounts available for refinance is a bit wider than many other companies. Refinancing allows co-signers to be released from their loan, and lets you consolidate multiple loans into one. Earnest also supports Parent PLUS loan refinancing with the same terms. It’s always best to explore your options. Check out our picks for the best student loan refinance companies to see which one is right for you. Earnest offers robust help documentation on its website, as well as access to customer support via email, live chat, and phone (1-888-601-2801); support is available from Monday through Friday, 5 a.m. to 5 p.m. PST. Out of 6,700,000 customers, the Consumer Financial Protection Bureau (CFPB) received 1,162 complaints in 2022 about Navient, the parent company of Earnest, for a variety of different reasons. Applying for an Earnest student loan is a completely online process. You can quickly submit your personal and financial information and receive an immediate decision on your application. Outside of your credit score, Earnest considers your earning potential as well as your current financial situation (including debt obligations). Some of the information you will need to provide includes: Earnest has more requirements than some other lenders, but offers loans to borrowers with lower credit scores (as low as 650). The application process may take some time, as you will need to link your financial accounts and submit tax forms as well. Once your application is approved, Earnest will request certification from your school before disbursing the loan. We recommend applying to FAFSA before applying for a private student loan, as you may qualify for grants or federal loans with more favorable terms. Earnest is a great private student loan company that offers low rates, flexible loan terms, multiple ways to repay, and the ability to customize the loan term length on student loan refinances. Earnest charges no fees up front, and won’t even hit you with a penalty for late payments. The application process can be a bit daunting, though, as you will need to link your personal financial accounts for approval, and if you have too much debt or too little earnings, you may not qualify. There are many other lenders out there. Browse our selections for the best private student loans to see if one might be a better fit. Investopedia is dedicated to providing consumers with unbiased, comprehensive reviews of student loan lenders. We collected thousands of data points across 30 lenders—including loan types, interest rates, fees, loan amounts, and repayment terms—to ensure that we help readers make the right borrowing decision for their education needs. Student Loan Refinance Interest Rate DisclosureActual rate and available repayment terms will vary based on your income. Fixed rates range from5.14% APRto9.99% APR(excludes 0.25% Auto Pay discount). Variable rates range from6.14% APRto9.99% APR(excludes 0.25% Auto Pay discount).Earnestvariable interest rate student loan refinance 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. The maximum rate for your loan is 8.95% if your loan term is 10 years or less. For loan terms of more than 10 years to 15 years, the interest rate will never exceed 9.95%. For loan terms over 15 years, the interest rate will never exceed 11.95%. Please note, we are not able to offer variable rate loans in AK, IL, MN, NH, OH, TN, and TX. 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. Student Loan Origination (Private Student Loan) Interest Rate DisclosureActual rate and available repayment terms will vary based on your income. Fixed rates range from3.94% APRto16.74% APR(excludes 0.25% Auto Pay discount). Variable rates range from5.87% APRto17.10% APR(excludes 0.25% Auto Pay discount).Earnestvariable 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,EarnestPrivate 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 isimportantto note that the 0.25% Auto Pay discount is not available while loan payments are deferred. Article Sources Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in oureditorial policy. Earnest. "What States Does Earnest Currently Offer Loans In?" Earnest. "Help With Tuition When You Need It." Earnest. "How to Refinance Student Loans With a Cosigner: A Quick Guide." Earnest. "Graduate Private Student Loans." Earnest. "Eligibility Guide." Earnest. "What Protections Do You Offer Military Servicemembers?" Earnest. "Private Parent Student Loans." Earnest. "What Is the Age of Majority?." Earnest. "Eligibility Guide." Earnest. "I Am an International Student, Can I Apply for an Earnest Loan?." Earnest. "How Quickly Can I Get My Student Loan?." Earnest. "Does Earnest Charge Any Taxes or Fees?" Earnest. "What Payment Options Are Available to Me?" Earnest. "FAQ: Earnest Student Loan Refinancing Referral Program." Earnest. "The Earnest $50,000 Scholarship Fund." Earnest. "How Do I Skip a Payment and When Am I Eligible To Do So?" Earnest. "How Can I Apply for Forbearance?" Earnest. "What Protections Do You Offer Military Servicemembers?" Earnest. "What Are My Repayment Options and What If I Cannot Make a Payment?" Earnest. "Student Loan Refinancing." Earnest. "Refinance Student Loans." Consumer Financial Protection Bureau. "Report of the CFPB Education Loan Ombudsman," Page 32. Earnest. "Applying for Loans." Investopediais part of the Dotdash Meredithpublishingfamily. By clicking “Accept All Cookies”, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts. Earnest Student Loans: Quick Look
Loan Type Variable APR Fixed APR Undergraduate 5.62%–16.85% 3.69%–16.49% Graduate 5.89%–15.97% 3.69%–14.30% Refinance 5.89%–9.74% 4.89%-9.74% Pros Explained
Cons Explained
Student Loans Offered by Earnest
Undergraduate Student Loans
Terms for Undergraduate Loans Variable APR 5.62%–16.85% Fixed APR 3.69%–16.49% Loan Amounts $1,000–$250,000 Loan Terms 10-, 12-, and 15-year Graduate Student Loans
Terms for Graduate Loans Variable APR 5.89%–15.97% Fixed APR 3.69%–14.30% Loan Amounts $1,000–$250,000 Loan Terms 5-, 7-, 10-, 12-, and 15-year Parent Student Loans
Terms for Parent Loans Variable APR 5.62%–16.85% Fixed APR 3.69%–16.49% Loan Amounts $1,000–$250,000 Loan Terms 5-, 7-, 10-, 12-, and 15-year Loan Eligibility and Approval
Are Co-Signers Required?
Is Loan Pre-Qualification Available?
Length of Time for Loan Approval and Disbursem*nt
Loan Fees and Repayment Options
Loan Fees
Loan Discounts
Repayment Options
Rewards
Loan Forbearance and Discharge Options
Is Student Loan Refinancing Available?
Terms for Refinancing Loans Variable APR 5.89%-9.74% Fixed APR 4.89%–9.74% Loan Amounts $5,000–$500,000 Loan Terms 5–20 years Customer Service
Applying for an Earnest Student Loan
Alternative Choices
Earnest Sallie Mae MEFA Loan Types Offered Undergraduate Graduate Parent Medical Undergraduate Graduate Medical Technical Bootcamp Undergraduate Graduate Medical Bootcamp Undergraduate Fixed APR 3.69%–16.49% (autopay included) 3.69%–15.49% (autopay included) 5.75%–8.95% Undergraduate Variable APR 5.62%–16.85% (autopay included) 5.54%–15.70% (autopay included) N/A Origination/Administrative Fee None None None Repayment Options Deferment Fixed Interest-only Full payment Deferment Fixed Interest-only Deferment Fixed Interest-only Full payment Refinancing Available Yes No Yes Final Verdict
Methodology