Best Features: LendKey Student Loan Refinance
Work with credit unions and community banks
LendKey allows you to access refinance offers from a network of non-traditional lenders that you otherwise might have overlooked. On its platform, LendKey connects you with hundreds of community banks and credit unions simultaneously. While the credit unions and community banks don’t have the name recognition that some of the traditional banks and online lenders have, they typically offer lower rates and personalized customer service. In addition, the credit unions and community banks are often non-profits, so you’ll be working with a lender that has your best interest in mind.
Competitive interest rates and zero fees for qualified borrowers
When looking to refinance your student loan, finding a low interest rate is typically a top priority. If you qualify for a LendKey student loan refinance, you’ll have access to competitive interest rates from credit unions and community banks that you might not be able to find elsewhere. While most of the lenders on LendKey’s platform do not charge any origination fees, application fees, or prepayment penalties, some may charge late fees or insufficient funds fees. The terms will vary depending on which lender you choose, so be sure to read the terms and conditions of your loan carefully.
Offers up to 18 months of forbearance due to economic hardship or natural disaster
If you experience economic hardship or a natural disaster, LendKey offers generous forbearance options (a pause on your repayment due to financial hardship, unemployment, or a disability).
On 5, 7, and 10-year loans, LendKey allows you to postpone payments for up to four months at a time, for up to 12 months total.
On 15 and 20-year loans, LendKey offers up to 18 months of forbearance, in six-month increments. While LendKey handles forbearance on a case-by-case basis, it can be a helpful safety net if you were to fall into financial hardship.
Free borrower benefits like Career Assistance, Credit Health Analysis, and Federal Student Loan Assistance
When you borrow through LendKey’s platform, you’ll get free access to special borrower benefits that help you achieve your financial and personal goals. These benefits include:
Career Assistance: LendKey partners with NextJob to offer free tools and online resources to help you succeed, including:
- Online mock interviews
- A resume builder
- Hidden job opportunities waiting to be uncovered
- A personality test to help you find the right career path
Credit Health Analysis: To help you reach your financial goals, LendKey has partnered with Curu, a platform that provides comprehensive credit analysis designed to help you improve your credit health
- Curu analyzes your spending, net worth, and credit utilization to generate personalized tasks that show your path to credit success.
- Curu displays your real-time financial account information all in one place so you always know where you stand.
- Curu sends you notifications for upcoming credit card payment due dates so you’ll never miss a payment again.
Federal Student Loan Assistance: LendKey partners with Savi to provide an online, concierge service that searches across 150+ federal loan forgiveness and repayment options and recommends a path forward based on a borrower’s unique financial situation and goals. Savi then automates and digitizes the application process to reduce mistakes, simplify the process, and save time.
- Access a free, instant estimate of monthly savings
- Detect eligibility & simplify enrollment for national and state repayment and forgiveness programs
- Receive 1:1 support as needed from a team of student loan experts
Drawbacks: LendKey Student Loan Refinance
Strict eligibility criteria
In order to qualify for student loan refinance through LendKey, borrowers must meet the following criteria:
- A U.S. citizen or permanent resident
- Graduated with at least an associate degree
- You or your cosigner have a credit score of 660
- You have an annual income of $24,000 per year, or $12,000 per year with a cosigner
LendKey’s strict eligibility criteria excludes non-U.S. citizens/permanent residents, non-graduates, parents, and those who don’t meet the credit or income requirements.
Not a U.S. citizen or permanent resident? Prodigy Finance has looser residency requirements. In addition, SoFi offers student loan refinance to international students who have a U.S. citizen as a cosigner.
Haven’t earned an associate’s degree? EDvestinU accepts borrowers without a degree.
Don’t have a credit score of 660 (or a creditworthy cosigner)? Earnest accepts borrowers with a lower credit score.
Don’t have an annual income of $24,000? SoFi doesn’t have a minimum income requirement.
If you do not meet LendKey’s criteria for a student loan, you may want to look elsewhere to refinance your private student loan. To check your rates across multiple lenders at once, try using Sparrow’s free search engine. In just two minutes, you can receive real, personalized offers from over 15 different lenders all bidding for your business. And best of all, it won’t impact your credit score
Varying cosigner release policies
Most private student lenders require or strongly encourage you to apply with a cosigner. Given that young people generally have no/limited credit history, a cosigner can help you qualify for better loan terms.
If you earn less than $24,000 per year or have fewer than 36 months of credit history, a cosigner is required in order to borrow from LendKey.
Unfortunately, it’s not clear how quickly you can release your cosigner from your LendKey loan. Since LendKey partners with credit unions and community banks (each of which have their own internal policies), you will need to check with your specific lender to confirm their cosigner release policy.
No biweekly payment via autopay
When you repay your student loan, your payments are due monthly by default. Instead, some borrowers choose to make biweekly payments via autopay — where you automatically pay half your monthly amount once every two weeks. Many borrowers use biweekly autopay in an effort to pay off their student debt faster and pay less in interest over the lifetime of the loan.
Unfortunately, when you borrow through LendKey, you don’t have the option to make biweekly payments via autopay.
You do, however, have the option to make greater-than-minimum payments via autopay. This means you have the option to pay more than your monthly balance in order to reduce the interest that accrues over time. With LendKey, you can set this up automatically so that the desired monthly payment is drawn from your bank account at the end of each month.
You may have to become a member of a credit union
One of the major advantages of borrowing through LendKey is that the platform allows you to access loan offers from a network of non-traditional lenders (credit unions and community banks) that you otherwise might have overlooked.
Unfortunately, that also means you may have to become a member of the institution you borrow from, which typically costs around $5. Although the process of becoming a member of a credit union is relatively simple, it adds another step to the borrowing process that traditional banks and online lenders don’t require.
Student loan rates from our partners
Ascent
Minimum credit score
Varies
Fixed APR
Fixed APR
Ascent’s undergraduate and graduate student loans are funded by Bank of Lake Mills, or DR Bank, each Member FDIC. Loan products may not be available in certain jurisdictions. Certain restrictions, limitations; and terms and conditions may apply. For Ascent Terms and Conditions please visit: www.AscentFunding.com/Ts&Cs. Rates are effective as of 2/6/2024 and reflect an automatic payment discount of either 0.25% (for credit-based loans) OR 1.00% (for undergraduate outcomes-based loans). Automatic Payment Discount is available if the borrower is enrolled in automatic payments from their personal checking account and the amount is successfully withdrawn from the authorized bank account each month. For Ascent rates and repayment examples please visit: AscentFunding.com/Rates. 1% Cash Back Graduation Reward subject to terms and conditions. Cosigned Credit-Based Loan student must meet certain minimum credit criteria. The minimum score required is subject to change and may depend on the credit score of your cosigner. Lowest APRs require interest-only payments, the shortest loan term, and a cosigner, and are only available to our most creditworthy applicants and cosigners with the highest average credit scores.
4.13 - 15.46%
Variable APR
Variable APR
Ascent’s undergraduate and graduate student loans are funded by Bank of Lake Mills, or DR Bank, each Member FDIC. Loan products may not be available in certain jurisdictions. Certain restrictions, limitations; and terms and conditions may apply. For Ascent Terms and Conditions please visit: www.AscentFunding.com/Ts&Cs. Rates are effective as of 2/6/2024 and reflect an automatic payment discount of either 0.25% (for credit-based loans) OR 1.00% (for undergraduate outcomes-based loans). Automatic Payment Discount is available if the borrower is enrolled in automatic payments from their personal checking account and the amount is successfully withdrawn from the authorized bank account each month. For Ascent rates and repayment examples please visit: AscentFunding.com/Rates. 1% Cash Back Graduation Reward subject to terms and conditions. Cosigned Credit-Based Loan student must meet certain minimum credit criteria. The minimum score required is subject to change and may depend on the credit score of your cosigner. Lowest APRs require interest-only payments, the shortest loan term, and a cosigner, and are only available to our most creditworthy applicants and cosigners with the highest average credit scores.
6.17 - 16.11%
Check rate
LendKey
Minimum credit score
660
Fixed APR
Fixed APR
1 – Terms and Conditions Apply
Loan products, terms, and benefits may be modified or discontinued by participating lenders at any time without notice. Rates displayed are reserved for the most creditworthy consumers who enroll to make automatic monthly payments. Your initial rate will be determined after a review of your application and credit profile. Variable rates may increase after consummation. You must be either a U.S. citizen or Permanent Resident in an eligible state and from an eligible school, and meet the lender’s credit and income requirements to qualify for a loan. Certain membership requirements (including the opening of a share account, a minimum share account deposit, and the payment of any applicable association fees in connection with membership) may apply in the event that an applicant wishes to apply with, and accept a loan offered from, a credit union lender. If you are not a member of the credit union lender, you may apply and become a member during the loan application process if you meet the lender’s eligibility criteria. Applying with a creditworthy cosigner may result in a better chance of loan approval and/or lower interest rate. Loans for exam preparation classes, including, but not limited to, loans for LSAT, MCAT, GMAT, and GRE preparation, are not available via LendKey.com.
2 – Cosigner Release
Some lenders participating on LendKey.com may offer the benefit of cosigner release. Cosigner release is subject to lender approval. In order to qualify, the borrower, alone, must meet the following requirements: (1) Make the required number of consecutive, on-time full principal and interest payments as indicated in the borrower’s credit agreement during the repayment period (excluding interest-only payments) immediately prior to the request. Any period of forbearance will reset the repayment clock; (2) The account cannot be in delinquent status; (3) The borrower must provide proof of income indicating that he/she meets the income requirements and pass a credit review demonstrating that he/she has a satisfactory credit history and the ability to assume full responsibility of loan repayment; (4) No bankruptcies or foreclosures in the last sixty months; and (5) No loan defaults.
3 – Autopay Rate Reduction
Subject to floor rate and may require the automatic payments be made from a checking or savings account with the lender. The rate reduction will be removed and the rate will be increased by 0.25% upon any cancellation or failed collection attempt of the automatic payment and will be suspended during any period of deferment or forbearance. As a result, during the forbearance or suspension period, and/or if the automatic payment is canceled, any increase will take the form of higher payments.
4 – AutoPay Discount & Lowest Interest Rate
Subject to floor rate and may require the automatic payments be made from a checking or savings account with the lender. The rate reduction will be removed and the rate will be increased by 0.25% upon any cancellation or failed collection attempt of the automatic payment and will be suspended during any period of deferment or forbearance. As a result, during the forbearance or suspension period, and/or if the automatic payment is canceled, any increase will take the form of higher payments. The lowest advertised APR is only available for loan terms of 10 years and is reserved for the highest qualified applicants, taking into consideration the applicant’s credit and other factors.
4.39 - 10.39%
Variable APR
Variable APR
1 – Terms and Conditions Apply
Loan products, terms, and benefits may be modified or discontinued by participating lenders at any time without notice. Rates displayed are reserved for the most creditworthy consumers who enroll to make automatic monthly payments. Your initial rate will be determined after a review of your application and credit profile. Variable rates may increase after consummation. You must be either a U.S. citizen or Permanent Resident in an eligible state and from an eligible school, and meet the lender’s credit and income requirements to qualify for a loan. Certain membership requirements (including the opening of a share account, a minimum share account deposit, and the payment of any applicable association fees in connection with membership) may apply in the event that an applicant wishes to apply with, and accept a loan offered from, a credit union lender. If you are not a member of the credit union lender, you may apply and become a member during the loan application process if you meet the lender’s eligibility criteria. Applying with a creditworthy cosigner may result in a better chance of loan approval and/or lower interest rate. Loans for exam preparation classes, including, but not limited to, loans for LSAT, MCAT, GMAT, and GRE preparation, are not available via LendKey.com.
2 – Cosigner Release
Some lenders participating on LendKey.com may offer the benefit of cosigner release. Cosigner release is subject to lender approval. In order to qualify, the borrower, alone, must meet the following requirements: (1) Make the required number of consecutive, on-time full principal and interest payments as indicated in the borrower’s credit agreement during the repayment period (excluding interest-only payments) immediately prior to the request. Any period of forbearance will reset the repayment clock; (2) The account cannot be in delinquent status; (3) The borrower must provide proof of income indicating that he/she meets the income requirements and pass a credit review demonstrating that he/she has a satisfactory credit history and the ability to assume full responsibility of loan repayment; (4) No bankruptcies or foreclosures in the last sixty months; and (5) No loan defaults.
3 – Autopay Rate Reduction
Subject to floor rate and may require the automatic payments be made from a checking or savings account with the lender. The rate reduction will be removed and the rate will be increased by 0.25% upon any cancellation or failed collection attempt of the automatic payment and will be suspended during any period of deferment or forbearance. As a result, during the forbearance or suspension period, and/or if the automatic payment is canceled, any increase will take the form of higher payments.
4 – AutoPay Discount & Lowest Interest Rate
Subject to floor rate and may require the automatic payments be made from a checking or savings account with the lender. The rate reduction will be removed and the rate will be increased by 0.25% upon any cancellation or failed collection attempt of the automatic payment and will be suspended during any period of deferment or forbearance. As a result, during the forbearance or suspension period, and/or if the automatic payment is canceled, any increase will take the form of higher payments. The lowest advertised APR is only available for loan terms of 10 years and is reserved for the highest qualified applicants, taking into consideration the applicant’s credit and other factors.
6.09 - 11.33%
Check rate
Earnest
Minimum credit score
650
Fixed APR
Fixed APR
Earnest Private Student Loans are made by One American Bank, Member FDIC, or FinWise Bank, Member FDIC. One American Bank, 515 S. Minnesota Ave, Sioux Falls, SD 57104. Finwise Bank, 756 East Winchester, Suite 100, Murray, UT 84107
Earnest loans are serviced by Earnest Operations LLC, 535 Mission St., Suite 1663 San Francisco, CA 94105, NMLS #1204917, with support From Navient Solutions, LLC (NMLS #212430). One American Bank, FinWise Bank, and Earnest LLC and its subsidiaries, including Earnest Operations LLC, are not sponsored by agencies of the United States of America.
© 2024 Earnest LLC. All rights reserved.
4.42 - 15.90%
Variable APR
Variable APR
Earnest Private Student Loans are made by One American Bank, Member FDIC, or FinWise Bank, Member FDIC. One American Bank, 515 S. Minnesota Ave, Sioux Falls, SD 57104. Finwise Bank, 756 East Winchester, Suite 100, Murray, UT 84107
Earnest loans are serviced by Earnest Operations LLC, 535 Mission St., Suite 1663 San Francisco, CA 94105, NMLS #1204917, with support From Navient Solutions, LLC (NMLS #212430). One American Bank, FinWise Bank, and Earnest LLC and its subsidiaries, including Earnest Operations LLC, are not sponsored by agencies of the United States of America.
© 2024 Earnest LLC. All rights reserved.
5.62 - 16.20%
Check rate
College Ave
Minimum credit score
Mid-600s
Fixed APR
Fixed APR
College Ave Student Loans products are made available through Firstrust Bank, member FDIC, First Citizens Community Bank, member FDIC, or M.Y. Safra Bank, FSB, member FDIC. All loans are subject to individual approval and adherence to underwriting guidelines. Program restrictions, other terms, and conditions apply.
*The 0.25% auto-pay interest rate reduction applies as long as the borrower or cosigner, if applicable, enrolls in auto-pay and authorizes our loan servicer to automatically deduct your monthly payments from a valid bank account via Automated Clearing House (“ACH”). The rate reduction applies for as long as the monthly payment amount is successfully deducted from the designated bank account and is suspended during periods of forbearance and certain deferments. Variable rates may increase after consummation. $5,000 is the minimum requirement to refinance. The maximum loan amount is $300,000 for those with medical, dental, pharmacy or veterinary doctorate degrees, and $150,000 for all other undergraduate or graduate degrees. Information advertised valid as of 08/25/2022. Variable interest rates may increase after consummation.
This informational repayment example uses typical loan terms for a refi borrower with a Full Principal & Interest Repayment and a 10-year repayment term, has a $40,000 loan and a 5.5% Annual Percentage Rate (“APR”): 120 monthly payments of $434.11 while in the repayment period, for a total amount of payments of $52,092.61. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary.
This informational repayment example uses typical loan terms for a freshman borrower who selects the Deferred Repayment Option with a 10-year repayment term, has a $10,000 loan that is disbursed in one disbursem*nt and a 8.35% fixed Annual Percentage Rate (“APR”): 120 monthly payments of $179.18 while in the repayment period, for a total amount of payments of $21,501.54. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary.
Information advertised valid as of 2/1/2024. Variable interest rates may increase after consummation. Approved interest rate will depend on creditworthiness of the applicant(s), lowest advertised rates only available to the most creditworthy applicants and require selection of full principal and interest payments with the shortest available loan term.
4.43 - 17.99%
Variable APR
Variable APR
College Ave Student Loans products are made available through Firstrust Bank, member FDIC, First Citizens Community Bank, member FDIC, or M.Y. Safra Bank, FSB, member FDIC. All loans are subject to individual approval and adherence to underwriting guidelines. Program restrictions, other terms, and conditions apply.
*The 0.25% auto-pay interest rate reduction applies as long as the borrower or cosigner, if applicable, enrolls in auto-pay and authorizes our loan servicer to automatically deduct your monthly payments from a valid bank account via Automated Clearing House (“ACH”). The rate reduction applies for as long as the monthly payment amount is successfully deducted from the designated bank account and is suspended during periods of forbearance and certain deferments. Variable rates may increase after consummation. $5,000 is the minimum requirement to refinance. The maximum loan amount is $300,000 for those with medical, dental, pharmacy or veterinary doctorate degrees, and $150,000 for all other undergraduate or graduate degrees. Information advertised valid as of 08/25/2022. Variable interest rates may increase after consummation.
This informational repayment example uses typical loan terms for a refi borrower with a Full Principal & Interest Repayment and a 10-year repayment term, has a $40,000 loan and a 5.5% Annual Percentage Rate (“APR”): 120 monthly payments of $434.11 while in the repayment period, for a total amount of payments of $52,092.61. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary.
This informational repayment example uses typical loan terms for a freshman borrower who selects the Deferred Repayment Option with a 10-year repayment term, has a $10,000 loan that is disbursed in one disbursem*nt and a 8.35% fixed Annual Percentage Rate (“APR”): 120 monthly payments of $179.18 while in the repayment period, for a total amount of payments of $21,501.54. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary.
Information advertised valid as of 2/1/2024. Variable interest rates may increase after consummation. Approved interest rate will depend on creditworthiness of the applicant(s), lowest advertised rates only available to the most creditworthy applicants and require selection of full principal and interest payments with the shortest available loan term.
5.59 - 17.99%
Check rate
LendKey FAQs
Is LendKey a legitimate lender?
Yes, LendKey is legitimate. The platform connects borrowers with credit unions and community banks offering private student loans to undergraduates, graduate students, and parents, as well as student loan refinancing. Since its founding in 2009, LendKey has helped fund $3.1 billion in loans for 99,000-plus borrowers — it also services more than $2 billion worth of student loans.
Is LendKey available in all 50 states?
LendKey is available to borrowers in all 50 states, except Maine, Nevada, North Dakota, Rhode Island, and West Virginia.
How long does it take to get a LendKey student loan?
Submitting an application through LendKey takes a few minutes. Once you’ve submitted your loan application, LendKey will instantaneously return a decision about your eligibility. If you qualify, you will receive the rate and terms of your loan.
It may take some time to actually receive your loan. However, you can speed up the process by requesting debt payoff letters from your current lenders and loan servicers.
What happens if I don’t qualify for a LendKey student loan?
If you don’t qualify for LendKey student loan refinance, the company will inform you why. Depending on the reason, you may consider applying with a qualified cosigner or try with a different lender. To check your rates across multiple lenders at once, try using Sparrow’s free search engine. In just two minutes, you can receive real, personalized offers from over 15 different lenders all bidding for your business. Best of all, it won’t impact your credit score.
Insights, advice, suggestions, feedback and comments from experts
Introduction
As an expert and enthusiast, I have access to a vast amount of information on various topics, including student loans and loan refinancing. I can provide you with comprehensive information about the concepts and features discussed in this article.
Best Features: LendKey Student Loan Refinance
LendKey is a platform that allows borrowers to access student loan refinancing offers from a network of non-traditional lenders, such as credit unions and community banks. Here are the key features discussed in the article:
1. Work with credit unions and community banks: LendKey connects borrowers with hundreds of credit unions and community banks simultaneously. While these lenders may not have the same name recognition as traditional banks and online lenders, they often offer lower interest rates and personalized customer service.
2. Competitive interest rates and zero fees: LendKey offers competitive interest rates from credit unions and community banks, which may be lower than rates offered by other lenders. Most of the lenders on LendKey's platform do not charge origination fees, application fees, or prepayment penalties. However, some lenders may charge late fees or insufficient funds fees, so it's important to read the terms and conditions of your loan carefully.
3. Forbearance options: LendKey offers up to 18 months of forbearance in case of economic hardship or natural disasters. For loans with terms of 5, 7, and 10 years, borrowers can postpone payments for up to four months at a time, for a total of up to 12 months. For loans with terms of 15 and 20 years, LendKey offers up to 18 months of forbearance in six-month increments. The specific terms of forbearance may vary depending on the lender.
4. Borrower benefits: LendKey provides several free borrower benefits, including:
-
Career Assistance: LendKey partners with NextJob to offer tools and online resources to help borrowers succeed in their careers, such as online mock interviews, resume builders, and job opportunity discovery.
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Credit Health Analysis: LendKey has partnered with Curu to provide comprehensive credit analysis designed to help borrowers improve their credit health. Curu analyzes spending, net worth, and credit utilization to generate personalized tasks and notifications.
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Federal Student Loan Assistance: LendKey partners with Savi to provide an online service that searches for federal loan forgiveness and repayment options based on a borrower's unique financial situation and goals. Savi also automates and digitizes the application process.
Drawbacks: LendKey Student Loan Refinance
While LendKey offers several advantages, there are also some drawbacks to consider:
1. Strict eligibility criteria: To qualify for student loan refinancing through LendKey, borrowers must meet strict eligibility criteria, including being a U.S. citizen or permanent resident, having at least an associate degree, having a credit score of 660 or higher, and meeting specific income requirements. Non-U.S. citizens/permanent residents, non-graduates, parents, and those who don't meet the credit or income requirements may not be eligible. However, there are other lenders that may have looser eligibility requirements for certain circ*mstances, such as Prodigy Finance and SoFi.
2. Varying cosigner release policies: Many private student loan lenders, including LendKey, require or encourage borrowers to apply with a cosigner, especially if they have limited credit history or a low income. LendKey's cosigner release policy may vary depending on the specific lender. Borrowers should check with their lender to understand the requirements and process for cosigner release.
3. No biweekly payment via autopay: LendKey does not offer the option to make biweekly payments via autopay. Biweekly payments can help borrowers pay off their loans faster and reduce interest costs. However, LendKey does allow borrowers to set up autopay for greater-than-minimum payments, which can still help reduce interest over time.
4. Membership requirement: Borrowing through LendKey may require becoming a member of the credit union or community bank from which you borrow. This membership typically comes with a small cost, around $5. While the process of becoming a member is relatively simple, it adds an extra step to the borrowing process compared to traditional banks and online lenders.
LendKey FAQs
Here are answers to some common questions about LendKey:
Q: Is LendKey a legitimate lender? A: Yes, LendKey is a legitimate lender. It has been in operation since 2009 and has funded billions of dollars in loans for thousands of borrowers. It also services a significant amount of student loan debt.
Q: Is LendKey available in all 50 states? A: LendKey is available to borrowers in all 50 states, except for Maine, Nevada, North Dakota, Rhode Island, and West Virginia.
Q: How long does it take to get a LendKey student loan? A: The application process for a LendKey student loan takes only a few minutes. Once you submit your application, you will receive an instant decision about your eligibility. However, the time it takes to receive your loan funds may vary depending on the specific lender. Requesting debt payoff letters from your current lenders can speed up the process.
Q: What happens if I don't qualify for a LendKey student loan? A: If you don't qualify for a LendKey student loan refinance, the company will inform you of the reasons. Depending on the reasons, you may consider applying with a qualified cosigner or exploring other lenders. Sparrow's free search engine can help you check rates across multiple lenders at once without impacting your credit score.
Please note that the information provided here is based on this article, and it's always a good idea to verify the details and eligibility requirements directly with LendKey or other lenders before making any financial decisions.
