If You’re Being Underpaid at Work, Here’s What You Can Do

 April 24, 2020
How Student Loan Hero Gets Paid

How Student Loan Hero Gets Paid

Student Loan Hero is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). Student Loan Hero does not include all lenders, savings products, or loan options available in the marketplace.

Advertiser Disclosure

Student Loan Hero Advertiser Disclosure

Student Loan Hero is an advertising-supported comparison service. The site features products from our partners as well as institutions which are not advertising partners. While we make an effort to include the best deals available to the general public, we make no warranty that such information represents all available products.

Editorial Note: This content is not provided or commissioned by any financial institution. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by the financial institution.

employee rights federal labor laws
Logo

We’ve got your back! Student Loan Hero is a completely free website 100% focused on helping student loan borrowers get the answers they need. Read more

How do we make money? It’s actually pretty simple. If you choose to check out and become a customer of any of the loan providers featured on our site, we get compensated for sending you their way. This helps pay for our amazing staff of writers (many of which are paying back student loans of their own!).

Bottom line: We’re here for you. So please learn all you can, email us with any questions, and feel free to visit or not visit any of the loan providers on our site. Read less

If you’ve ever asked yourself, “Am I being underpaid?” then know that you’re not alone. Forty-three percent of U.S. workers believe they’re not being paid appropriately. When you have student loan payments to make and financial goals to reach, believing you’re overworked and underpaid can be pretty disheartening.

Deciding how to deal with being underpaid will differ depending on your situation. To help you determine whether you’re really not making what you should be, we’ve compiled a list of signs that you’re being underpaid (and overworked perhaps), along with tips on how to deal with it.

Am I underpaid?
7 signs you’re being underpaid or not valued at work
How to deal with being underpaid
If I’m underpaid at work, what are my rights?
FAQ: Underpaid at work

Am I underpaid?

Sites like Indeed, LinkedIn, PayScale and Salary.com have job salary listings and salary comparison tools you can use to research and compare salaries in your field. The U.S. Bureau of Labor and Statistics website also posts wage data for over 800 occupations organized by state and metro area. If you’re interested in a career change, you can sort the occupations by median wage to search for well-paid jobs and underpaid jobs.

Offline, you can ask peers in the same field what their salary is to see if you are being paid fairly. If peers are tight-lipped about their earnings, consider answering calls from recruiters to find out the salary they’re offering. “Keep in mind they’re probably telling you the best case scenario just to get you excited [to move companies], but it’ll still give you a clue as to what the market is saying out there,” said Rita Friedman, a Philadelphia-based job search and career coach.

“Am I being paid enough for my job?” is a question we all ask ourselves at one point or another in our careers. Remember that salary is just one cog in the wheel that makes up your total compensation package. Besides your take-home pay, total compensation includes employer retirement matches, health care benefits, professional development opportunities and other office perks, according to Friedman. If you have a job with decent benefits, low stress and great coworkers, consider whether these perks are worth sacrificing a few extra thousand dollars per year.

7 signs you’re being underpaid or not valued at work

Since determining whether you’re being underpaid isn’t always easy, here are a few signs you’re not valued at work:

  • Coworkers are getting paid more: Pretty clear-cut here—You learn from peers that they’re making more than you for close to the same amount of work.
  • Raises are negligible or nonexistent: You’ve been with a company for a while and you’ve only seen cost of living salary increases of 1 to 2% and not much more.
  • New responsibilities are routinely put on your shoulders: Your tasks and duties have increased since taking the job, but your salary has not. You’re asked to take on extra work without extra compensation.
  • The office looks to you as the expert: When people have questions about policies and procedures, they turn to you. Sadly, your salary hasn’t increased much with seniority.
  • The company is profiting handsomely from your work: You see the company is making a direct ROI from relationships you have, deals you close and experience you bring to the table. However, you’re not seeing any compensation for the value you offer.
  • You are in a constant state of limbo: Your review keeps getting put off so you’re unable to have a conversation about your salary. You may be told there’s a freeze on raises or bonuses, and the freeze seems never-ending.
  • Your employer is encouraging you to “work off the clock”: You’re paid hourly and your boss asks you to work before “clocking in” or after “clocking out” to minimize overtime hours. This may be illegal. We’ll discuss your employment rights below.

If you’re seeing the above signs, it may be time to plot your next move whether it is talking to your manager or exploring other places of employment.

How to deal with being underpaid

Coming to the conclusion that you are underpaid isn’t a good feeling, but you shouldn’t storm into your boss’s office to air out your grievances without a plan. Here’s what to do when you’re underpaid:

Take stock of the situation

First, be honest with yourself. In some situations, it may not be the salary of your current job that is the problem because the salary is appropriate, Friedman said. Instead, you outgrew the role, and you’re ready for a new one inside or outside of your company.

Another factor to consider before asking for more money is whether the company can afford to give you an increase. Say you work in accounting for a small mom-and-pop business. Your salary may be lower than the industry average, but a raise may not be feasible. In this instance, pushing for a raise may just ruffle feathers, and it’s not worth the effort. It may just be time to move on.

If the company is capable of giving you a raise and seems receptive, start planning for the conversation. If you’re wondering how to ask for a raise when you’re underpaid and how to tell your boss you feel undervalued, we’ll tackle that next.

Put together your pitch

Write a sales pitch that will convince your boss you need a raise. Your pitch should be three or four sentences long explaining what you’re asking for, why you want it, and why it’s justified, Friedman said. Salary negotiation is just that — a negotiation. Be prepared for some pushback and be ready to explain the reason why you deserve a raise.

Schedule a raise meeting with your boss

Don’t surprise your boss with an awkward conversation about money. Instead, request to schedule a meeting to discuss compensation. At the end of the meeting, ask what the next step is and when you can follow up.

Often, a raise has to go through many layers of bureaucracy before you see the money. Human resources may have to give a stamp of approval. If you work for a company with clearly defined salary bands, human resources may even have to change your title to give you a raise, Friedman said.

Dust off your resume and play the field.

If you decide to look for opportunities elsewhere, pull out your resume, and make updates. Add new responsibilities, titles, or certifications you’ve gained since the last refresh. Ask a few people to proofread the resume to ensure there are no typos. Update your LinkedIn profile and start engaging with headhunters.

Prepare to negotiate with a new employer

Negotiating a higher salary with a new employer can be tricky if they ask what you’re currently making. Some states and cities even prohibit employers from inquiring about past salaries. If you don’t live in a location that regulates salary history questions, try to ask the salary range for the position early in the process to put the ball in their court.

“Your goal is always to get the other person to say the number first…whoever says the number first loses,” Friedman said. If the budget for the position is more than what you ask for, saying your salary requirement first can leave money on the table. After you get a few solid job offers, you can try using them as leverage to negotiate a raise or promotion with your current employer.

If I’m underpaid at work, what are my rights?

You have the right to earn at least minimum wage. The Fair Labor Standards Act (FLSA) has set the federal minimum wage at $7.25 per hour and $2.13 per hour for tipped employees. However, 29 states and D.C. have initiated a higher statewide minimum wage illustrated in the photo below.

Source: Department of Labor

You can review the minimum wage for your state on the U.S. Department of Labor website. Counties and cities can also choose to adopt a higher minimum wage than the state guideline. Check with your local government as well to see if your salary is fair given legal requirements.

Your right to overtime

If you’re a non-exempt employee, you’re entitled to at least one-and-a-half times your hourly wage for the hours you work past 40 in one week. The U.S. Department of Labor is strict on how employers must handle overtime pay. According to the website: “An announcement by the employer that no overtime work will be permitted, or that overtime work will not be paid for unless authorized in advance, also will not impair the employee’s right to compensation for compensable overtime hours that are worked.”

In essence, if you need to work more than 40 hours in a week to do your job, the employer may not withhold overtime pay from you even if you didn’t get prior authorization. If your employer is asking you to clock in and out at odd times to avoid logging overtime, you may be underpaid at work, and your employer may be violating your rights.

Being a salaried worker doesn’t mean you’re automatically exempt from overtime. “The determination of whether you’re eligible for overtime is based more on your job duties than how your employer classifies you,” said Marc Keegan, an employment attorney based in Atlanta. If you earn a salary but you do not have an executive, administrative or professional role that exempts you from overtime, you may be entitled to additional pay if you work over 40 hours. The law also states that you need to make at least $684 per week ($35,568 per year), or $107,432 per year if you’re a highly compensated employee, to be exempt from overtime.

Employee vs. independent contractor classification

“One of the biggest loopholes that employers will engage in now is to classify people as independent contractors when they’re not actually independent contractors,” Keegan said. Employers typically do not withhold taxes or offer employee benefits to contractors, so it’s cheaper for them to hire you on a contract basis.

Working from home, signing an independent contractor agreement or receiving a 1099 does not automatically mean you’re a contractor under FLSA. You may be eligible for overtime and benefits if a company has misclassified you as an independent contractor when you’re doing the work of an employee.

The IRS states: “…an individual is an independent contractor if the payer has the right to control or direct only the result of the work, not what will be done and how it will be done.”

Here are a few signs that you may be crossing the line between contractor and employee:

  • You do your work on company equipment
  • You’re assigned tasks that you can’t refuse
  • You work under the company’s brand
  • You regularly report to someone at the company
  • You’re not free to do work with other companies as you please
  • Your work processes are evaluated instead of just your final work product

How to report being underpaid

Underpaid at work and not sure what to do? The first step is checking your state labor website or the U.S. Department of Labor website for guidance. Your state may have an online complaint form or instructions for how to report being underpaid.

It’s usually a good idea to obtain legal counsel when filing a claim. The FLSA has an anti-retaliation provision that makes it illegal for an employer to punish you for doing so. It’s in the company’s best interest to settle with you if you have a valid claim — a negative effect of underpaying employees and losing in court is that the company will have to pay employee damages and attorney fees.

FAQ: Underpaid at work

How can I properly ask for a raise? How to professionally ask for a raise is a pretty straightforward process. Schedule a meeting with your boss to talk about your compensation. Come prepared for the meeting with a pitch detailing why you want a raise and why you believe you deserve one. If you’re not given a definitive answer, ask when you can follow up on the conversation.

Can you sue for being overworked? You can sue a company for underpaying you if your employer is breaking the law by not paying you minimum wage or overtime, or misclassifying the type of worker you are causing you to miss out on wages or benefits. Every situation is different, so hiring a lawyer can help you determine whether you have a case.

What is an underpayment letter? If your employer underpays you for hours worked, you can send a certified underpayment letter to your employer to demand payment. The letter should include the hours you worked, how much you’re owed, and a deadline for when you expect payment. You can also file a complaint with your state. Speak with an attorney if you need help drafting an underpayment of wages letter.

Christy Rakoczy contributed to this report.

Interested in refinancing student loans?

Here are the top 9 lenders of 2021!
LenderVariable APREligible Degrees 
1.88% – 6.15%1Undergrad
& Graduate

Visit Splash

1.88% – 5.64%2Undergrad
& Graduate

Visit Earnest

2.50% – 6.85%3Undergrad
& Graduate

Visit CommonBond

1.89% – 5.90%4Undergrad
& Graduate

Visit Laurel Road

1.99% – 6.59%5Undergrad
& Graduate

Visit SoFi

1.88% – 5.64%6Undergrad
& Graduate

Visit NaviRefi

1.90% – 5.25%7Undergrad
& Graduate

Visit Lendkey

2.39% – 6.01%Undergrad
& Graduate

Visit Elfi

2.13% – 5.25%8Undergrad
& Graduate

Visit PenFed

Check out the testimonials and our in-depth reviews!
1 Important Disclosures for Splash Financial.

Splash Financial Disclosures

Terms and Conditions apply. Splash reserves the right to modify or discontinue products and benefits at any time without notice. Rates and terms are also subject to change at any time without notice. Offers are subject to credit approval. To qualify, a borrower must be a U.S. citizen or permanent resident in an eligible state and meet applicable underwriting requirements. Not all borrowers receive the lowest rate. Lowest rates are reserved for the highest qualified borrowers. If approved, your actual rate will be within a range of rates and will depend on a variety of factors, including term of loan, a responsible financial history, income and other factors. Refinancing or consolidating private and federal student loans may not be the right decision for everyone. Federal loans carry special benefits not available for loans made through Splash Financial, for example, public service loan forgiveness and economic hardship programs, fee waivers and rebates on the principal, which may not be accessible to you after you refinance. The rates displayed may include a 0.25% autopay discount

The information you provide to us is an inquiry to determine whether we or our lenders can make a loan offer that meets your needs. If we or any of our lending partners has an available loan offer for you, you will be invited to submit a loan application to the lender for its review. We do not guarantee that you will receive any loan offers or that your loan application will be approved. Offers are subject to credit approval and are available only to U.S. citizens or permanent residents who meet applicable underwriting requirements. Not all borrowers will receive the lowest rates, which are available to the most qualified borrowers. Participating lenders, rates and terms are subject to change at any time without notice.

To check the rates and terms you qualify for, Splash Financial conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, the lender will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.

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 June 1, 2021.


2 Rate range above includes optional 0.25% Auto Pay discount. Important Disclosures for Earnest.

Earnest Disclosures

Interest Rate Disclosure

Actual rate and available repayment terms will vary based on your income. Fixed rates range from 2.48% APR to 5.79% APR (excludes 0.25% Auto Pay discount). Variable rates range from 1.88% APR to 5.64% APR (excludes 0.25% Auto Pay discount). For variable rate loans, although the interest rate will vary after you are approved, the interest rate will never exceed 36% (the maximum allowable for these loans). Earnest variable interest rate student loan refinance 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 2.04% and 5.8% to the one month LIBOR. Earnest rate ranges are current as of 6/8/2021, and are subject to change based on market conditions.

Auto Pay Discount Disclosure

You can take advantage of the Auto Pay interest rate reduction by setting up and maintaining active and automatic ACH withdrawal of your loan payment. The interest rate reduction for Auto Pay will be available only while your loan is enrolled in Auto Pay. Interest rate incentives for utilizing Auto Pay may not be combined with certain private student loan repayment programs that also offer an interest rate reduction. For multi-party loans, only one party may enroll in Auto Pay.

Student Loan Refinancing Loan Cost Examples

These examples provide estimates based on payments beginning immediately upon loan disbursement. Variable APR: A $10,000 loan with a 20-year term (240 monthly payments of $72) and a 5.89% APR would result in a total estimated payment amount of $17,042.39. For a variable loan, after your starting rate is set, your rate will then vary with the market. Fixed APR: A $10,000 loan with a 20-year term (240 monthly payments of $72) and a 6.04% APR would result in a total estimated payment amount of $17,249.77. Your actual repayment terms may vary.Terms and Conditions apply. Visit https://www.earnest. com/terms-of-service, e-mail us at [email protected], or call 888-601-2801 for more information on our student loan refinance product.

Earnest Loans are made by Earnest Operations LLC or One American Bank, Member FDIC. Earnest Operations LLC, NMLS #1204917. 535 Mission St., Suite 1663, San Francisco, CA 94105. California Financing Law License 6054788. Visit earnest.com/licenses for a full list of licensed states. For California residents (Student Loan Refinance Only): Loans will be arranged or made pursuant to a California Financing Law License.

One American Bank, 515 S. Minnesota Ave, Sioux Falls, SD 57104. Earnest loans are serviced by Earnest Operations LLC with support from Navient Solutions LLC (NMLS #212430). One American Bank and Earnest LLC and its subsidiaries are not sponsored by or agencies of the United States of America.

© 2021 Earnest LLC. All rights reserved.


3 Important Disclosures for CommonBond.

CommonBond Disclosures

Offered terms are subject to change and state law restriction. Loans are offered by CommonBond Lending, LLC (NMLS # 1175900), NMLS Consumer Access. 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 0.15% effective Jan 1, 2021 and may increase after consummation.


4 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.

  1. Checking your rate with Laurel Road only requires a soft credit pull, which will not affect your credit score. To proceed with an application, a hard credit pull will be required, which may affect your credit score.
  2. Savings vary based on rate and term of your existing and refinanced loan(s). Refinancing to a longer term may lower your monthly payments, but may also increase the total interest paid over the life of the loan. Refinancing to a shorter term may increase your monthly payments, but may lower the total interest paid over the life of the loan. Review your loan documentation for total cost of your refinanced loan.
  3. After loan disbursement, if a borrower documents a qualifying economic hardship, we may agree in our discretion to allow for full or partial forbearance of payments for one or more 3-month time periods (not to exceed 12 months in the aggregate during the term of your loan), provided that we receive acceptable documentation (including updating documentation) of the nature and expected duration of the borrower’s economic hardship. During any period of forbearance interest will continue to accrue. At the end of the forbearance period, any unpaid accrued interest will be capitalized and be added to the remaining principle amount of the loan.
  4. Automatic Payment (“AutoPay”) Discount: if the borrower chooses to make monthly payments automatically from a bank account, the interest rate will decrease by 0.25% and will increase back if the borrower stops making (or we stop accepting) monthly payments automatically from the borrower’s bank account. The 0.25% AutoPay discount will not reduce the monthly payment; instead, the discount is applied to the principal to help pay the loan down faster.

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 April 29, 2021. Information and rates are subject to change without notice.
 


5 Important Disclosures for SoFi.

SoFi Disclosures

Fixed rates from 2.49% APR to 6.94% APR (with autopay). Variable rates from 1.99% APR to 6.59% APR (with autopay). All variable rates are based on the 1-month LIBOR and may increase after consummation if LIBOR increases; see more at SoFi.com/legal/#1. If approved for a loan your rate will depend on a variety of factors such as your credit profile, your application and your selected loan terms. Your rate will be within the ranges of rates listed above. Lowest rates reserved for the most creditworthy borrowers. SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers, or may become available, such as Income Based Repayment or Income Contingent Repayment or PAYE. SoFi loans are originated by SoFi Lending Corp. or an affiliate (dba SoFi), a lender licensed by the Department of Financial Protection and Innovation under the California Financing Law, license #6054612; NMLS #1121636 (www.nmlsconsumeraccess.org). Additional terms and conditions apply; see SoFi.com/eligibility for details. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE.


6 Important Disclosures for Navient.

Navient Disclosures

1. NaviRefi loans are made by Earnest Operations LLC, a member of the Navient family of companies, subject to individual approval and underwriting criteria. California residents only: Loans made or arranged pursuant to a California Finance Lenders Law license. Additional terms and conditions apply.

– To qualify, you must be a U.S. citizen or non-citizen permanent resident of the United States, reside in a state we lend in, and satisfy our minimum eligibility criteria. You may find more information on loan eligibility here: https://www.navirefi.com/help-and-questions. Not all applicants will be approved for a loan, and not all applicants will qualify for the lowest rate. Loan terms are subject to eligibility. Approval and interest rate depend on the review of a complete application. Loan approval is subject to confirmation that your debt-to-income, free cash flow, credit history and application information meet the minimum requirements. You must have a minimum FICO score to be considered.

– You can choose between fixed and variable rates. Fixed interest rates are 2.75% – 6.04% APR (2.50% – 5.79% APR with Auto Pay discount). Starting variable interest rates are 2.13% – 5.89% APR (1.88% – 5.64% APR with Auto Pay discount). Variable rates are based on an index, the 30-day Average Secured Overnight Financing Rate (SOFR) plus a margin. Variable rates are reset monthly based on the fluctuation of the index. We do not currently offer variable rate loans in AK, CO, CT, HI, IL, KY, MA, MN, MS, NH, OH, OK, SC, TN, TX, and VA.

– You can take advantage of the 0.25% Auto Pay interest rate reduction by setting up and maintaining active and automatic ACH withdrawal of your loan payment. The interest rate reduction for Auto Pay will be available only while your loan is enrolled in Auto Pay. Interest rate incentives for utilizing Auto Pay may not be combined with certain private student loan repayment programs that also offer an interest rate reduction. NaviRefi rate ranges are current as of June 1, 2021 and are subject to change based on market conditions and borrower eligibility.

– Loan cost examples: These examples provide estimates based on payments beginning immediately upon loan disbursement. Variable APR: A $10,000 loan with a 20-year term (240 monthly payments of $72) and a 5.89% APR would result in a total estimated payment amount of $17,042. For a variable loan, after your starting rate is set, your rate will then vary with the market. Fixed APR: A $10,000 loan with a 20-year term (240 monthly payments of $72) and a 6.04% APR would result in a total estimated payment amount of $17,250. Your actual repayment terms may vary.

– The information provided on this page is updated as of 06/1/2021. Earnest Operations LLC reserves the right to modify or discontinue (in whole or in part) this loan program and its associated services and benefits at any time without notice. Check www.navirefi.com for the most up-to-date information. Terms and Conditions apply. Call 855-284-4893 for more information on our student loan refinance product.

– Earnest Operations LLC – NMLS #1204917, CA CFL #6054788 – 535 Mission St., Suite 1663, San Francisco, CA 94105.
Navient Solutions, LLC – NMLS #212430 – 123 Justison St., Wilmington, DE 19801. Visit https://navirefi.com/lending-licenses for a full list of licensed states.


7 Important Disclosures for LendKey.

LendKey Disclosures

Refinancing via LendKey.com is only available for applicants with qualified private education loans from an eligible institution. Loans that were used for exam preparation classes, including, but not limited to, loans for LSAT, MCAT, GMAT, and GRE preparation, are not eligible for refinancing with a lender via LendKey.com. If you currently have any of these exam preparation loans, you should not include them in an application to refinance your student loans on this website. Applicants must be either U.S. citizens or Permanent Residents in an eligible state to qualify for a loan. Certain membership requirements (including the opening of a share account and any applicable association fees in connection with membership) may apply in the event that an applicant wishes to accept a loan offer from a credit union lender. Lenders participating on LendKey.com reserve the right to modify or discontinue the products, terms, and benefits offered on this website at any time without notice. LendKey Technologies, Inc. is not affiliated with, nor does it  endorse,  any educational institution.

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 variable APR is only available for loan terms of  5 years and is reserved for applicants with FICO scores of at least 810.

As of 04/07/2021 student loan refinancing rates range from 1.90% APR – 5.25% Variable APR with AutoPay and 2.49% APR – 7.75% Fixed APR with AutoPay.


8 Important Disclosures for PenFed.

PenFed Disclosures

Annual Percentage Rate (APR) is the cost of credit calculating the interest rate, loan amount, repayment term and the timing of payments. Fixed Rates range from 2.89%-4.78% APR and Variable Rates range from 2.13%-5.25% APR. Both Fixed and Variable Rates will vary based on application terms, level of degree and presence of a co-signer. These rates are subject to additional terms and conditions and rates are subject to change at any time without notice. For Variable Rate student loans, the rate will never exceed 9.00% for 5 year and 8 year loans and 10.00% for 12 and 15 years loans (the maximum allowable for this loan). Minimum variable rate will be 2.00%. 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.

Published in Career & Jobs, Make More Money