Earnest Student Loans
Vault Verified
Expert Take
Earnest’s private student loans and student loan refinancing offer flexible repayment options and can be a low-interest option for qualified borrowers. Although Earnest excels in its unique repayment features, getting approved for a loan might be challenging for some.
Pros
- Long grace period
- Flexible repayment schedules
- Skip-a-payment option
Cons
- Co-signer restrictions
- No cosigner release
- Minimum credit requirement
Vault’s Viewpoint on Earnest Student Loans
Earnest private student loan or refinance loan borrowers are empowered to take the lead with their repayment journey. From its Precision Pricing tool that provides customizable terms and payments uniquely fit to borrowers’ budgets to a generous grace period, Earnest offers unique features that are hard to ignore.
Earnest offers some of the best student loan rates around, but its credit score requirement can be restrictive and not a good fit for borrowers who have bad credit. The lender also only allows co-signers on its private student loan applications, making Earnest refinancing even less accessible for borrowers who don’t meet credit requirements on their own.
Earnest offers a wide menu of private student loans and refinancing solutions at fixed or variable interest rates. If you meet the lender’s basic eligibility criteria, it’s worth considering its student loan options.
About Earnest Student Loans
Navient acquired Earnest in 2017, and Earnest launched its private student loans two years later. Today, it offers a range of education loan products for students at all levels of their academic careers, from undergraduates to graduate students and post-grad students who are pursuing advanced degrees in law and medical school.
The company offers resources that make it easier to obtain student credit cards and personal loans. Earnest is upfront with starting rates for its student loans and shows how much you can save if you have a co-signer.
It also supports students, like international and Deferred Action for Childhood Arrivals (DACA) students who might otherwise experience challenges accessing a private loan through conventional financing.
| Loan amount | Student loans: Minimum $1,000 Refinancing Minimum: |
| Term lengths | Student loans: 5,7, 10, 12 and 15 years Refinancing: 5, 10, 15 and 20 years |
| Repayment schedule | Student loans: — Full in-school monthly payments — Fixed $25 monthly payments — Interest-only payments — In-school deferment Refinancing: |
| Grace period | 9 months after leaving school |
| APR from* | Undergraduate: 5.73% fixed Cosigned loans: 4.42% fixed Graduate/post-grad:4.42% fixed5.89% variable Half-time/DACA:4.42% fixed5.62% variable International (cosigned): 9.99% variable Parent:4.42% fixed5.62% variable Refinancing:5.19% fixed5.99% variable |
| Loan types | Undergraduate, graduate, post-graduate, international, DACA, half-time, parent and refinancing. |
| Co-signer required | No |
Who Should Apply for a Student Loan With Earnest?
Students and parents of undergraduates, who have strong credit and can check off the lender’s minimum borrower eligibility criteria should consider an Earnest student loan.
What We Like
- Long grace period: Earnest offers up to a nine-month grace period for its student loans. That’s three months longer than the grace period available under federal Direct Loans.
- Flexible repayment schedules: If you’re approved for an Earnest loan, you can use its Precision Pricing tool to choose your desired loan payment amount. This offers some freedom to tailor your repayment schedule so it’s manageable for your budget.
- Skip-A-Payment option: If your Earnest loan has been in good standing and you’ve made a minimum of six on-time, full principal and interest payments on the loan, you can request to skip one payment. This loan feature is available on Earnest refinancing and private student loans and can be useful if your budget is unexpectedly short one month.
Who Should Consider an Alternative Student Loan to Earnest?
There’s a lot to applaud when it comes to Earnest student loans, but they can also be inaccessible for some borrowers. For example, currently, its private student loans and Earnest refinancing loans aren’t available to residents of Nevada. Other limitations involve its rules around student loan co-signers and credit needed for eligibility.
What We Don’t Like
- Co-signer restrictions: Not all Earnest refinancing applicants can apply with a co-signer which can make this refinance loan option inaccessible for those with less than ideal credit or income.
- No co-signer release: Even if you’re the primary borrower and have a positive track record of consistent, full and on-time payments, you can’t release your cosigner from their obligation. Your co-signer is liable for any unpaid balance that you fail to pay for the life of the loan.
- Minimum credit requirement: Earnest applicants must have a minimum credit score of 665 for its student loan refinance. For private student loan applicants who aren’t applying with a co-signer, a minimum score of 650 and three years’ worth of credit history is required.
How to Apply for a Student Loan Through Earnest
If you meet Earnest’s eligibility requirements, submitting an application online takes only a few minutes, and its user-friendly interface guides you seamlessly through the steps. Here’s what you can generally expect when applying for an Earnest loan.
- Have your information ready: You’ll need to gather key information. This includes personal details like your permanent address, Social Security number, and email address for you and your co-signer, if applicable. You’ll also need your school and enrollment information if applying for a private student loan.
- Check your rate: Earnest offers a free online tool to quickly see if you pre-qualify for its student loan or refinance loan. This process should take a few minutes, and checking your rates doesn’t hurt your credit.
- Provide any necessary paperwork: To avoid delays with your loan decision or application, submit the requested documents to Earnest ASAP. You can submit your paperwork by logging into your account and selecting “upload” under the “Documents & Uploads” section.
- Pick your term: If you’re approved and want to move forward with Earnest’s loan offer, proceed by selecting your preferred term. You can customize your monthly payment and narrow down your term to the exact year and month necessary to pay off the loan, based on your payment amount.
- Await school certification, if applicable: If you’re applying for a private student loan, your school must certify your enrollment and verify that the loan and your other aid doesn’t exceed the school’s reported cost of attendance.
How Does Earnest Stack Up to Its Competitors?
Interest rates and loan features vary between lenders. Before getting an Earnest loan, it’s a good idea to see how it compares against other lenders.
Earnest vs. SoFi
SoFi is a direct competitor of Earnest, offering various loans for actively enrolled students, along with parent loans and refinancing solutions. It doesn’t charge hidden fees and offers competitive rates for those who qualify. You can see if you pre-qualify for a SoFi student loan online without negatively affecting your credit, and SoFi borrowers have access to unique perks that Earnest doesn’t offer.
For example, its borrowers can tap into SoFi Career Services to get career coaching, attend virtual career events, and network with other professionals. SoFi refinance borrowers can also participate in the lender’s rewards program which lets you earn points from activities like signing your refinancing paperwork. Then earned points can be applied toward an extra payment on your loan.
Earnest vs. Ascent
Ascent is an online lender that provides private student loans to undergraduate and graduate students. Like Earnest, it also provides education financing options for international students and students with DACA status. But Ascent doesn’t offer parent loans or refinancing. The lender accepts co-signers and stands out particularly because it allows co-signer release after meeting certain requirements.
Its student loan grace period is also as generous as Earnest’s, giving students up to nine months after leaving school before their first payment is due. It also offers in-school coaching and career advice and budgeting tools to support you during your academic career. Eligible Ascent borrowers can qualify for a 1% cash back reward for graduating. This reward amount is based on the original loan principal up to $50,000.
Earnest vs. College Ave
College Ave offers an array of student loan options, including a student loan refinance. However, it lacks transparency with its minimum credit requirement. Unlike Earnest which openly discloses the minimum credit requirement upfront, College Ave states that its credit requirement is “proprietary” and doesn’t disclose a minimum score.
Despite this murkiness, College Ave also provides a pre-qualification tool to see the rates you’d get with a College Ave student loan without a hard credit check. Co-signers are not required on College Ave. loans but are allowed on private student loans and refinance loans.
Other Resources from Earnest
Earnest doesn’t only offer student loan refinancing. Here are a few more ways Earnest can assist with your financial journey.
Parent PLUS Loan Refinance
Parents who took out loans to help pay for their child’s tuition may qualify for refinancing from Earnest. With a parent loan refinance, you can extend your debt’s repayment term to make monthly payments more manageable, get out of debt sooner or even pay less overall. It’s also possible (though not guaranteed) to secure a lower interest rate if you refinance with Earnest.
Personal Loans
Earnest has partnered with Fiona, a personal loan search engine, to help connect borrowers with a wide range of personal loans and available lenders. You can get matched with personal loan offers without affecting your credit score, too. Loan amounts range from $1,000 to $250,000, depending on the lender and your personal eligibility factors.
Student Credit Cards
Earnest makes student credit cards more accessible for young adults who want to build their credit while making purchases. The company offers credit card recommendations and some suggestions for staying on top of your debt.
Should You Get a Student Loan from Earnest?
Earnest has a generous grace period and lets you join forces with a co-signer for most of its financial products. The lender has flexible repayment schedules and even lets you skip a payment if you have a positive payment history and need a break.
“As students first begin their repayment journey, Earnest’s skip-a-payment option is a handy feature. I can see it being particularly valuable for borrowers whose finances are unsteady right out of school and are figuring out how their new repayment responsibilities fit into their overall budget.”
— Jennifer Coates Calonia
Earnest offers competitive fixed and variable rates, but you will need a good credit score to qualify for financing. Young adults generally haven’t had much time to build credit and may be offered fewer loan options, while borrowers who qualify can capitalize on the company’s competitive financial products. Earnest loans offer plenty of flexibility, with term lengths that range from five to 15 years for student loans and five to 20 years for refinance loans.
Newsweek writer Marc Guberti contributed to this post.
Frequently Asked Questions
Will Student Loans Through Earnest be Forgiven?
Earnest loans are private education loans and don’t qualify for federal student loan forgiveness programs. Federal loan forgiveness only applies to loans owned by the U.S. Department of Education. But if the primary borrower on an Earnest student loan dies or becomes totally and permanently disabled, the lender will discharge the loan.
Is Earnest Owned by Sallie Mae?
No, Earnest isn’t owned by Sallie Mae. In 2017, Earnest was acquired by Navient. Navient became its own entity in 2014 when it separated from Sallie Mae Bank. This separation was intended to separate Sallie Mae in the private education loan business while maintaining its student loan servicing portfolio.
What Credit Score Do You Need for Earnest Student Loans?
To qualify for an Earnest student loan, you need a minimum credit score of 650 which is considered fair under the Fair Isaac Corporation scoring model. The credit score needed for Earnest refinancing eligibility is 665 or higher. Your credit score is just one of many factors that Earnest uses to make its application decision, but the higher your score the better your chances of approval.
How Do You Contact Earnest?
You can contact Earnest via email or web chat at any time. The company also has phone representatives available on weekdays from 5 a.m. to 5 p.m. Pacific Time, who you can reach by calling 888-601-2801.
Does Earnest Offer a Rate Match for Student Loan Refinancing?
Earnest does not offer rate matching on student refinance loans at this time. However, the lender does offer rate matching for private student loans, as long as the rate isn’t lower than their published minimums. In order to receive a rate match, you must first get approved from another lender for a lower rate and provide documentation to Earnest.
