Refinancing with Laurel Road
Refinancing rates from 1.99% APR. Checking your rates won’t affect your credit score.
Note that Earnest has temporarily stopped accepting employment offer letters for income verification, and for now, applicants must be currently employed to qualify. Self-employed applicants will be required to provide three years of 1040’s. For more details on how the coronavirus outbreak is impacting student loan refinancing and other issues, check out our Student Loan Hero Coronavirus Information Center.
* * *
Earnest student loan refinance helps borrowers save money by considering more than just their credit score during the application process. Earnest refinance is also known for flexibility, allowing customers to choose their repayment term and payment due date.
Earnest is a good fit for borrowers with stable financial history who won’t need to apply for refinancing with a cosigner’s help — and who prefer setting the terms of their repayment.
Earnest student loan refinance review: the basics
Earnest (which also does personal loans) offers student loan refinancing to college graduates who have their own college debt, as well as to parents who borrowed loans to pay for their child’s education.
Here are some features you can expect with Earnest student loan refinance:
- Earnest loan rates: Variable starting at 1.99% and fixed starting at 3.19%
- Receive a rate quote in two minutes
- Autopay discount of 0.25%
- The option to choose your minimum payment
- Repayment terms of between five and 20 years
- Deferment and forbearance options for borrowers who return to school or run into financial hardship
- No set income requirements
- No origination fees or prepayment penalties
- Minimum loan amount of $5,000 and maximum of $500,000
- Earnest’s minimum credit score of 650
To refinance student loans with Earnest, you must be at least 18 years old and a U.S. citizen or permanent resident. Your debt must also be from a Title IV accredited college or university, and you must have completed your degree or be set to do so in the current semester.
There’s plenty to love about Earnest if you plan to refinance student loans. Here are some of our favorite features:
If you’re wondering how long Earnest takes to review your fit for refinancing, keep in mind that you could apply for and receive a quote in two minutes. Just by entering some basic information and yourself, you could check whether the lender could be a fit for your repayment.
Does Earnest do a hard pull on your credit at this time? No, the company will perform only a soft check on your credit report to deliver quotes. The hard check that could temporarily ding your credit would only come during the formal application process.
One of the biggest advantages of Earnest refinancing loans is the fact that approval is possible even with a short or nonexistent credit history.
If you don’t have a strong credit history, Earnest could approve you for student loan refinancing based on several other factors (a particularly negative financial history, however, could prevent you from approval).
When you apply for Earnest student loans, you link your bank accounts to your Earnest profile. The process is similar to the way budgeting tools like Mint and Personal Capital work — that’s why Earnest’s asking for bank account information. It requires your username and password to access your account information.
While the lender does look at your credit report, it doesn’t rely entirely on this traditional method of assessing your reliability. Other aspects of your personal finances — including your checking, savings and investments accounts — are considered during the process.
Earnest’s approval process is unique because it looks not just at your income and current debt, but also other aspects, like your job history. Because of this, Earnest loans might offer an alternative for borrowers who can’t get a competitive rate with a more traditional lender.
If you’re looking to refinance without a degree, Earnest also opens refinancing to current students who are within six months of graduating and hold a job offer.
Earnest also offers flexible repayment terms that you can customize before locking in your loan. Instead of picking a repayment term and automatically receiving an interest rate and monthly payment, you’re in control. For example, you can choose your monthly payment from a broad range of options that Earnest provides. In fact, with excellent credit, you might choose from one of 180 options spanning every month between five and 20 years.
You also can choose to skip one payment a year and make it up later. Additionally, Earnest offers forbearance if you unexpectedly lose your job, as well as deferment if you’re returning to school or serving active duty in the military. These options allow you to temporarily pause your payments, making it a little easier to manage your student loan debt. Just be aware that interest will continue to accrue onto your balance while you’re away from repayment.
While Earnest offers certain advantages, there are some things to consider before you move forward with your application. The company doesn’t operate, for example, in Delaware, Kentucky and Nevada. Other factors to keep in mind include:
Even though Earnest uses factors beyond your credit history to determine your eligibility, you must still meet the minimum credit score requirement. In fact, to get the best of Earnest, you’ll need a score of 650 or above.
As a result, Earnest loans might not be an option you’ve had financial problems in the past. For instance, you might not qualify to refinance your student loans through Earnest if those loans aren’t in good standing or if you have accounts recently in collection.
However, most lenders also have minimum credit score requirements, so if you do have poor credit, you’ll likely need to improve your financial situation anyway before applying elsewhere.
With some lenders, such as SoFi and Citizens Bank, it’s possible to get a cosigner to help you qualify for student loan refinancing. Earnest student loans, however, don’t have a cosigner option for refinancing. So, if you don’t qualify on your own, you won’t be able to improve your chances by getting a cosigner to help you.
While Earnest offers parents the ability to refinance Parent PLUS Loans borrowed from the federal government, it doesn’t enable you to refinance loans into your child’s name. If your family desires that option, check out CommonBond, which would allow you to transfer debt to your son or daughter.
If you plan to manage your refinanced loan repayment on a mobile device, keep in mind that the Earnest app (available on iOS and ) has mostly received negative reviews — “Earnest app not working” is a common complaint. With that said, the company has said that the app allows customers to view your balance and submit payments, among other features.
Earnest: Paying with credit card not possible
For all of its flexibility elsewhere, Earnest doesn’t allow customers to make their student loan payments with a credit card. You could still pay digitally from your checking or savings account.
Refinancing federal student loans turns them private
Besides issues to consider that are specific to Earnest student loan refinancing, there are some general caveats to refinancing when it comes to federal loans.
Even though refinancing can help you reduce your interest rate in some cases, it’s important to understand that you will lose certain borrower protections if you refinance federal student loans.
Once you refinance with Earnest, for example, you’ll be ineligible for federal income-driven repayment plans and federal student loan forgiveness programs. Given this, you want to make sure you don’t need any governmental programs before you turn your debt private through refinancing.
Is Earnest refinancing right for you?
Now that you know Earnest is legit and, possibly, a great option for your repayment, you might raring for the next step. Before you decide, compare lenders who refinance student loans. Generally speaking, Earnest might be a good choice if you:
- Have good financial habits, like saving money regularly
- Can show regular income and can comfortably afford the monthly payments
- Don’t plan to take advantage of income-driven repayment or student loan forgiveness for your federal student loans
- Have higher interest rates on your current student loans than what’s offered for your refinancing loan
In the end, Earnest student loan refinancing offers flexibility and options that can work well for some borrowers. Carefully consider your situation and your financial needs as you make a decision about your student loans.
Student Loan Hero has independently collected the above information related to Earnest refinancing loans, which is current as of March 26, 2020, unless otherwise noted. Earnest has neither provided nor reviewed the information shared in this article.
The information in this article is accurate as of the date of publishing.
Interested in refinancing student loans?Here are the top 6 lenders of 2020!
|Lender||Variable APR||Eligible Degrees|
|1.99% – 6.65%1||Undergrad & Graduate|
|1.99% – 7.10%2||Undergrad & Graduate|
|2.99% – 6.44%3||Undergrad & Graduate|
|2.39% – 6.01%||Undergrad |
|1.99% – 6.43%4||Undergrad & Graduate|
|3.18% – 6.07%5||Undergrad & Graduate|
|Check out the testimonials and our in-depth reviews!
1 Important Disclosures for Laurel Road.
Laurel Road Disclosures
All credit products are subject to credit approval.
Laurel Road began originating student loans in 2013 and has since helped thousands of professionals with undergraduate and postgraduate degrees consolidate and refinance more than $4 billion in federal and private school loans. Laurel Road also offers a suite of online graduate school loan products and personal loans that help simplify lending through customized technology and personalized service. In April 2019, Laurel Road was acquired by KeyBank, one of the nation’s largest bank-based financial services companies. Laurel Road is a brand of KeyBank National Association offering online lending products in all 50 U.S. states, Washington, D.C., and Puerto Rico. All loans are provided by KeyBank National Association, a nationally chartered bank. Member FDIC. For more information, visit www.laurelroad.com.
As used throughout these Terms & Conditions, the term “Lender” refers to KeyBank National Association and its affiliates, agents, guaranty insurers, investors, assigns, and successors in interest.
Assumptions: Repayment examples above assume a loan amount of $10,000 with repayment beginning immediately following disbursement. Repayment examples do not include the 0.25% AutoPay Discount.
Annual Percentage Rate (“APR”): This term represents the actual cost of financing to the borrower over the life of the loan expressed as a yearly rate.
Interest Rate: A simple annual rate that is applied to an unpaid balance.
Variable Rates: The current index for variable rate loans is derived from the one-month London Interbank Offered Rate (“LIBOR”) and changes in the LIBOR index may cause your monthly payment to increase. Borrowers who take out a term of 5, 7, or 10 years will have a maximum interest rate of 9%, those who take out a 15 or 20-year variable loan will have a maximum interest rate of 10%.
KEYBANK NATIONAL ASSOCIATION RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE.
This information is current as of June 23, 2020. Information and rates are subject to change without notice.
2 Important Disclosures for Splash Financial.
Splash Financial Disclosures
Splash Financial loans are available through arrangements with lending partners. Your loan application will be submitted to the lending partner and be evaluated at their sole discretion. For loans where a credit union is the lender, or a purchaser of the loan, in order to refinance your loans, you will need to become a credit union member.
The Splash Student Loan Refinance Program is not offered or endorsed by any college or university. Neither Splash Financial nor the lending partner are affiliated with or endorse any college or university listed on this website.
You should review the benefits of your federal student loan; it may offer specific benefits that a private refinance/consolidation loan may not offer. If you work in the public sector, are in the military or taking advantage of a federal department of relief program, such as income based repayment or public service forgiveness, you may not want to refinance, as these benefits do not transfer to private refinance/consolidation loans.
Splash Financial and our lending partners reserve the right to modify or discontinue products and benefits at any time without notice. To qualify, a borrower must be a U.S. citizen and meet our lending partner’s underwriting requirements. Lowest rates are reserved for the highest qualified borrowers. This information is current as of May 1, 2020.
Fixed APR: Annual Percentage Rate [APR] is the cost of credit calculating the interest rate, loan amount, repayment term and the timing of payments. Fixed Rate options range from 2.88% (without autopay) to 7.27% (without autopay) and will vary based on application terms, level of degree and presence of a co-signer. Rates are subject to change without notice. Fixed rate options without an autopay discount consist of a range from 2.88% per year to 6.21% per year for a 5-year term, 3.40% per year to 6.25% per year for a 7-year term, 3.45% to 5.08% for a 8-year term, 3.89% per year to 6.65% per year for a 10-year term, 4.18% per year to 5.11% per year for a 12-year term, 4.20% per year to 7.05% per year for a 15-year term, or 4.51% per year to 7.27% per year for a 20-year term, with no origination fees. The fixed interest rate will apply until the loan is paid in full (whether before or after default, and whether before or after the scheduled maturity date of the loan).
Variable APR: Annual Percentage Rate [APR] is the cost of credit calculating the interest rate, loan amount, repayment term and the timing of payments. Variable rate options range from 1.99% (with autopay) to 7.10% (without autopay) and will vary based on application terms, level of degree and presence of a co-signer. Our lowest rate option is shown with a 0.25% autopay discount. Our highest rate option does not include an autopay discount. The variable rates are based on the Variable rate index, is based on the one-month London Interbank Offered Rate (“LIBOR”) published in The Wall Street Journal on the twenty-fifth day, or the next business day, of the preceding calendar month. As of April 27, 2020, the one-month LIBOR rate is 0.43763%. The interest rate on a variable rate loan is comprised of an index and margin added together. The margin is a fixed amount (disclosed at the time of your loan application) added each month to the index to determine the next month’s variable rate. Variable rate options without an autopay discount consist of a range from 2.01% per year to 6.30% per year for a 5-year term, 4.00% per year to 6.35% per year for a 7-year term, 2.09% per year to 3.92% per year for a 8-year term, 4.25% per year to 6.40% per year for a 10-year term, 2.67% per year to 4.56% per year for a 12-year term, 3.44% per year to 6.65% per year for a 15-year term, 4.75% per year to 6.93% per year for a 20-year term, or 5.14% per year to 7.10% for a 25-year term, with no origination fees. APR is subject to increase after consummation. Variable interest rates will fluctuate over the term of the borrower’s loan with changes in the LIBOR rate, and will vary based on applicable terms, level of degree earned and presence of a co-signer. The maximum variable rate may be between 9.00% and 16.00%, depending on loan term. The floor rate may be between 0.54% and 4.21%, depending on loan term. These rates are subject to additional terms and conditions, and rates are subject to change at any time without notice. Such changes will only apply to applications taken after the effective date of change.
3 Important Disclosures for SoFi.
4 Important Disclosures for Earnest.
To qualify, you must be a U.S. citizen or possess a 10-year (non-conditional) Permanent Resident Card, reside in a state Earnest lends in, and satisfy our minimum eligibility criteria. You may find more information on loan eligibility here: https://www.earnest.com/eligibility. Not all applicants will be approved for a loan, and not all applicants will qualify for the lowest rate. Approval and interest rate depend on the review of a complete application.
Earnest fixed rate loan rates range from 3.19% APR (with Auto Pay) to 6.43% APR (with Auto Pay). Variable rate loan rates range from 1.99% APR (with Auto Pay) to 6.43% APR (with Auto Pay). For variable rate loans, although the interest rate will vary after you are approved, the interest rate will never exceed 8.95% for loan terms 10 years or less. For loan terms of 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% (the maximum rates for these loans). Earnest variable interest rate loans are based on a publicly available index, the one month London Interbank Offered Rate (LIBOR). Your rate will be calculated each month by adding a margin between 1.82% and 5.50% to the one month LIBOR. The rate will not increase more than once per month. Earnest rate ranges are current as of June 15, 2020, and are subject to change based on market conditions and borrower eligibility.
Auto Pay discount: If you make monthly principal and interest payments by an automatic, monthly deduction from a savings or checking account, your rate will be reduced by one quarter of one percent (0.25%) for so long as you continue to make automatic, electronic monthly payments. This benefit is suspended during periods of deferment and forbearance.
The information provided on this page is updated as of 6/15/2020. Earnest reserves the right to change, pause, or terminate product offerings at any time without notice. Earnest loans are originated by Earnest Operations LLC. California Finance Lender License 6054788. NMLS # 1204917. Earnest Operations LLC is located at 302 2nd Street, Suite 401N, San Francisco, CA 94107. Terms and Conditions apply. Visit https://www.earnest.com/terms-of-service, email us at [email protected], or call 888-601-2801 for more information on our student loan refinance product.
© 2020 Earnest LLC. All rights reserved. Earnest LLC and its subsidiaries, including Earnest Operations LLC, are not sponsored by or agencies of the United States of America.
5 Important Disclosures for CommonBond.
Offered terms are subject to change. Loans are offered by CommonBond Lending, LLC (NMLS # 1175900). If you are approved for a loan, the interest rate offered will depend on your credit profile, your application, the loan term selected and will be within the ranges of rates shown. All Annual Percentage Rates (APRs) displayed assume borrowers enroll in auto pay and account for the 0.25% reduction in interest rate. All variable rates are based on a 1-month LIBOR assumption of 0.19% effective June 10, 2020.