Earnest Refinancing and Private Student Loans: 2023 Review - NerdWallet (2024)

• Customizable payments and loan terms.

• No late fees.

» MORE: Earnest personal loan review

• Refinancing loans for borrowers in all 50 states.

• Interest rates, fees and terms

  • Soft credit check to qualify and see what rate you’ll get: Yes.

  • Loan terms: Borrowers can select between 120 different loan terms 5 years to 20 years. Choose a precise loan term, down to the month.

  • Loan amounts: $5,000 to $500,000.

  • Can transfer a parent loan to the child: No.

  • Application or origination fee: No.

  • Prepayment penalty: No.

  • Late fees: No.

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  Compare Earnest’s range of interest rates with other student loan refinance lenders. Your actual rate will depend on factors including your — or your co-signer’s — credit history and financial situation. To see what rate Earnest will offer you, apply on its website.

• Requirements

  Financial

  Earnest has a unique underwriting approach that considers the earning potential for your career and data from the financial accounts you connect. At a minimum, you need to connect the checking account where your paycheck is deposited so Earnest can verify your income.

  You can also choose to connect accounts for your savings, investments, credit cards and other loans to give Earnest more insight into your financial picture.

  • Minimum credit score: 650 for co-signers; 650 for borrowers with no co-signer..

  • Minimum income: No minimum. Applicant must have a written job offer for employment starting within six months or have consistent income.

  • Typical credit score of approved borrowers or co-signers: 746.

  • Typical income of approved borrowers: $125,000.

  • Maximum debt-to-income ratio: No DTI requirement.

  • Can qualify if you’ve filed for bankruptcy: Bankruptcy cannot be present on the credit report.

  Other

  • Citizenship: Must be a U.S. citizen or possess a 10-year, non-conditional green card or have a qualified U.S. citizen co-signer.

  • Location: Not available to borrowers in Nevada. Variable rates aren’t available to borrowers in Alaska, Illinois, Minnesota, New Hampshire, Ohio, Tennessee and Texas.

  • Must have graduated: No.

  • Must have attended a school authorized to receive federal aid: Yes.

  • Percentage of borrowers who have a co-signer: Did not disclose.

• Repayment options

  • Academic deferment: Yes.

  • Military deferment: Yes.

  • Forbearance: Yes, borrowers can postpone payments in three-month increments, for up to 12 months total, if they have:

    • An involuntary decrease in income, such as a reduction in hours, unpaid leave and change from full-time to part-time employment.

    • An involuntary loss of employment at no fault of their own.

    • A significant increase in essential costs such as medical expenses, emergency home repairs or child care.

    • Unpaid maternity/paternity leave.

  • Skip a payment: Borrowers 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. The skipped payment amount will be spread out across the remaining loan payments, slightly increasing them. Skipping a payment also counts toward your 12-month forbearance limit.

  • Extend a payment date by seven days: Borrowers can push back the due date on an individual payment or change their autopay date through their online Earnest account.

  • Interest-only payments: Yes.

  • Co-signer release available: There's no option to add a co-signer, but refinancing removes the original co-signer.

  • Death or disability discharge: Yes.

  • Loan discharge if co-signer dies or becomes disabled: No option for a co-signer.

  Repayment preferences

  • Allows greater-than-minimum payments via autopay: Yes.

  • Allows biweekly payments via autopay: Yes.

  Earnest also allows borrowers to make same-day payments and schedule multiple extra payments at once.

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• Customer service

  • Loan servicer: Earnest.

  • In-house customer service team: Yes.

  • Process for escalating concerns: Yes.

  • Borrowers get assigned a dedicated banker, advisor or representative: No.

  • Average time from approval to payoff: Usually 10 days.

• Extras

  Earnest stands apart from other student loan refinance lenders with these features:

  • Customize your monthly payment: Earnest’s precision pricing feature lets borrowers save on interest by choosing an exact monthly payment amount. It adjusts your repayment term to match the amount you choose — even if that results in a seven-year-and-two-month loan, for example.

  • Easily adjust your payments: You can call Earnest to increase your minimum monthly payment at any time to pay off the loan faster.

  • Referral bonus: You can receive $200 for each person you refer who successfully refinances their student loans with Earnest.

» MORE: How to refinance student loans in 6 steps

» MORE: Earnest vs. SoFi: Which is better for refinancing student loans?

NerdWallet recommends prequalifying with multiple refinance lenders before you apply. This will let you know which lenders you may be eligible with, without affecting your credit.