Earnest Student Loan Refinancing Review: Is Earnest Student Loan Legit or Scam

Paying off incurred student loans after school has always been a challenge for most students. This is because of the high interest accumulated over the years.

Earnest student loan Refinancing is one refinancing option that offers students an easier way out, unlike other student loan options.

It is basically for people who need private student loan financing, or the ability to refinance their current student loan debts into a new loan with a lower interest rate and/or a lower monthly payment.

This student loan has a lower-than-average interest rate flexible repayment option, that offers borrowers the platform to set their own monthly payments and loan terms up to 20 years.

This post provides you will information about what you need to know about refinancing student loans with Earnest.

You can navigate through the table of contents below to get any overview of all this post entails.

Earnest Student Loan Refinancing Reviews

Just like every other loan option, Earnest is a refinance option that offers student loans (Undergraduate and Graduate loans), personal loans, and even private loans.

Earnest is owned by Navient, a student loan servant who is being sued for questionable service practices, including pressure on borrowers with difficulties to obtain permissive payment plans.

However, Earnest acts as a separate unit within the company and lends its own loans, rather than passing its loan to a third party.

Why Earnest Student Loan Refinancing?

The major reason you should consider this refinancing Loan option is that it gives you the flexibility to set your monthly payment and loan term between five and 20 years; most other lenders set deadlines, which do not allow you to choose the appropriate time for your money

Also, Earnest has one of the lowest fixed and variable rate ranges that has ever existed. The o ly disadvantage is that borrowers cannot use the co-site.

Earnest also refinances major PLUS loans, but the lender is not an option if you want to transfer your loan to your child, as you can with CommonBond and SoFi.

However, if you are only looking for competitive pricing where you can get student loans without using a participating site, Earnest is a good choice with the flexibility it can offer parents.

What are the Available Earnest Student Loans?

There are basically two student loans refinancing made available by Earnest for students. They are;

  • Undergraduate student Loan
  • Graduate student Loan.
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Lets talk about them briefly….

Undergraduate Student Loans

This student loan option is for undergraduate students. So, if you are a full-time or part-time undergraduate students you can get this Earnest student loan independently or with a cosigner.

You can choose your repayment years from 5-13 years. Note, your interest rate will be assigned based on your repayment term and the credit history of you and/or your cosigner.

4.39% to 12.78%

2.74% to 11.44%

$1,000 up to the total cost of attendance

Five, seven, 10, 12, or 15 years

Graduate Student Loans

On the other hand, Earnest’s graduate student loans are for students who are done with their undergraduate programs, ready to kick start a graduate degree program like MBA, medical, or law school program.

4.39% to 10.99%

2.74% to 9.89%

$1,000 up to the total cost of attendance

Five, seven, 10, 12, or 15 years

Other student loan options from Earnest include:

  • Undergraduate refinancing
  • Graduate refinancing
  • Business, medical or law school loans
  • Business, medical or law school refinancing
  • Parent loan refinancing

See Also: Pros and Cons of Student Loans in 2021

Who is Eligible for Earnest Student Loan Refinancing?

To apply for this student loan, there are criteria that will qualify you before you can apply aside from the Pros and Cons of Student Loans.

These qualities are not in any way similar to other student loan refinancing options, so you must carefully read this session word to word.

First, to qualify for Earnest Student loan you must be good at managing money. Aside from that other criteria includes

  • Must be a U.S. citizen or possess a 10-year, non-conditional green card.
  • You must have a stable source of income.
  • As a borrower, you don’t spend extravagantly, which means you spend less than you’re earning.
  • You must not have any record of bankruptcy.
  • Must have attended a school authorized to receive federal aid
  • You must have at least 2 months of savings in the bank.
  • Don’t have more than 2 credit card debt
  • Must have only a 650 credit score

Note, this loan is not for borrowers in Delaware, Kentucky, and Nevada. Variable rates aren’t available to borrowers in Alaska, Illinois, Minnesota, New Hampshire, Ohio, Tennessee, and Texas.

What are the Loan Fees and Discounts?

In applying for Earnest student loans, there is no fee attached. Which means the application is free, even the prepayment and late payment all free.

Talking about the Discount rate, as a borrower, you will be entitled to a 0.25% interest rate discount for any Auto Pay program you enroll for.

Rates and Terms Involve in Earnest Student Loan Refinancing

The interest rate is one thing that differs among lenders. Some lenders charger a high-interest rate while some like Earnest charges low-interest rates.

Basically, Earnest charges have two rates, fixed-rate and Variable rate. Fixed-rate loans ranging from 3.47% -7.72% while variable rate loans range from 2.41% to 6.99%.

The maximum loan rate on terms of less than 10 years is 8.95%. For loan terms over 10 to 15 years, the maximum interest rate is 9.95%. Long loans have a maximum interest rate of 11.95%.

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Also, this refinancing option uses an accurate pricing model. This means that you can end up with a 7.5-year loan term, which you probably won’t see with other lenders.

However, the minimum loan amount is $5,000 and the maximum is 500,000 and loans of up to 100% of the school’s certified cost of attendance are available. There is no application, origination, or late fee. A 0.25% autopay discount is available.

Other Terms and conditions include;

  • There is Forbearance which means that a borrower can postpone payments in three-month increments, for up to 12 months total.
  • A borrower can skip one month’s worth of payments every 12 months — one if they’re making monthly payments, or two if they’re paying biweekly.
  • There is room for an extension of the payment date by seven days. So as a borrower you can push back the due date on an individual payment or change their autopay date through their online Earnest account.
  • There’s no option to add a co-signer, but refinancing removes the original co-signer.
  • Once the borrower dies, the payments will no longer be made.

Earnest Student Loan Refinancing Repayment Options

As a student, you have four repayment options available for you to use.

The first is to make full payment. This option involves you making the full monthly payment while you are still in school.

The second option is to pay only the accrued interest while you are still in school. Either you make the payment before graduation or 9 months after graduation.

The third option is to pay flat monthly payments of $25 while in school and for the nine months following graduation.

Finally, you can choose to make a deferred payment. This involves you not making any payment while you’re in school and for the first nine months after graduation.

Note, if you are a resident of Alabama, Arizona, California, Florida, Massachusetts, Maryland, Michigan, North Dakota, New Jersey, New York, Ohio, Pennsylvania, and Washington, these options aren’t for you.

How to Apply for Earnest Student Loan

You can apply for Earnest Student Loan online either with your laptop or phone. Some of the requirements include the following:

  • Your name, address, and phone number.
  • The highest degree you’ve achieved, when you graduated and the school you attended.
  • Your annual income; your monthly rent or mortgage payments; and the sum of your cash, retirement, and investment accounts.
  • Your email address to create an account.
  • Whether you’re a U.S. citizen or permanent resident.
  • Your Social Security number and consent for Earnest to do a soft credit inquiry, which won’t affect your credit score.
  • Indicate whether you’re currently employed or not. If not, you’ll be prompted to share if you have a job lined up, along with that job’s information.

Earnest Private Student Loans

Earnest is also offering undergraduate and graduate private student loans. They have highly competitive rates and terms for their undergraduate loans, as well as flexible repayment plans.

One of the best features of their private student loans is that they offer a 9 month grace period after you graduate before you have to start making payments – one of the longest we’ve seen.

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Currently, the Private Student Loans Fixed Rates is 4.39%-12.78% while the Variable Rates is 2.74% – 11.44%.

Check out these 13 Best student loan refinance companies in 2021 | Apply

Who Shouldn’t Refinance Their Student Loans?

Refinancing a federal loan might not be right for everyone. If you are employing a repayment program for a Direct Consolidation Loan with the federal government for your student loan payments, you would no longer have access to these programs with a private refinanced loan.

In addition, graduates working towards loan forgiveness with a federal program, such as Public Service Loan Forgiveness, would also not want to refinance for a new interest rate, as they would no longer be eligible for forgiveness. 

Lastly, due to the economic impact of COVID-19 congress passed the CARES Act, federal student loan holders are all on pause until the end of 2021, with all student loan interest rates set at 0% during this time. Private student loans are not included in the CARES Act. Private student loan holders should find out from their servicer for coronavirus pandemic relief options.

FAQs On Earnest Student Loan Refinancing

How can I Apply for Earnest Student Loan?

To apply for Earnest Student Loan, you have to do it online either with your laptop or phone. Some of the requirements include the following:

1. Your name, address, and phone number.
2. The highest degree you’ve achieved, when you graduated and the school you attended.
3. Your annual income; your monthly rent or mortgage payments; and the sum of your cash, retirement, and investment accounts.
4. Your email address to create an account……

What are the Earnest Student Loan Refinancing Rates?

Basically, Earnest charges have two rates, fixed-rate and Variable rate. Fixed-rate loans ranging from 3.47% -7.72% while variable rate loans range from 2.41% to 6.99%.
The maximum loan rate on terms of less than 10 years is 8.95%. For loan terms over 10 to 15 years, the maximum interest rate is 9.95%. Long loans have a maximum interest rate of 11.95%.

What is the minimum and Maximum Loan amount?

The minimum loan amount is $5,000 and the maximum is 500,000 and loans of up to 100% of the school’s certified cost of attendance are available.

What is the Earnest Discount Rate?

Earnest students loan discount rate is 0.25%.

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