Refinancing with Earnest
Refinancing rates from 2.47% APR. Checking your rates won’t affect your credit score.
People enroll in college to get a better life. They think a degree will lead to better job prospects, higher salaries, and a more successful future. Unfortunately, going to school can be costly. When life gets in the way, many students have to drop out.
Whether you left school because of an illness or because your major just wasn’t for you, you’re still required to make payments on your student loan debt. Refinancing can help many people manage their student loans, but refinancing without completing your degree can be tricky.
Below, learn about your options for refinancing your debt and coming up with a repayment strategy if you didn’t complete your degree.
The United States is experiencing an education crisis. Of the millions of people who go to college each year, less than half actually complete their degrees. In fact, the U.S. is last in a list of 18 countries for college graduation rates.
To make matters worse, one of the most common reasons students leave school is because of finances. Many drop out to take a full-time job to make ends meet or to help support their families. But when they leave, their student loans remain. That can compound the issue, making it even more difficult to go back to school.
Refinancing without a degree
For many people, refinancing their student loans makes their debt more manageable. They may qualify for lower interest rate, different repayment term, and even a lower monthly payment. That switch can free up money in their budgets, giving them some much-needed breathing room.
However, if you didn’t complete your degree, finding a lender who will refinance your loans is difficult. Many lenders require degree completion to be eligible for refinancing offers.
But lenders who will refinance the loans of non-graduates do exist! Citizens Bank, for example, provides refinancing loans to eligible people who have not completed their degrees. They just have slightly different requirements to apply.
To be eligible, you must have at least $10,000 in student loans to refinance and you can longer attend school. You must be a U.S. citizen, permanent resident, or resident alien with a valid Social Security number.
If you did not complete your degree, Citizen’s Bank requires you to make at least 12 on-time payments on all the loans you want to refinance. If you do not yet qualify, you have to wait for 12 months and make qualifying payments to become eligible for refinancing.
Other repayment options
If you are not able to refinance, there are still ways to make your federal student loans easier to manage. You may be eligible for income-driven repayment plans, deferment, or forbearance.
Income-driven repayment plans
If you have federal student loans, you will usually enter a standard 10-year repayment once you leave school — whether you graduated or dropped out early. But if your payments under this plan are too large for you to handle, you may be eligible for an income-driven repayment plan.
There are four income-driven repayment plans: income-based repayment (IBR), income-contingent repayment (ICR), Pay As You Earn (PAYE), and Revised Pay As You Earn (REPAYE).
While each plan varies, the premise of all four is the same: Your monthly loan payment is capped at a percentage of your discretionary income, and your repayment term is extended. That can dramatically reduce your payments, freeing up more money in your budget for your essentials.
In some situations, you may be able to suspend payments while you get back on your feet. If you lost your job or are experiencing economic hardship that caused you to drop out of school, these options can give you a necessary break from payments.
Through deferment, you do not need to make payments for up to three years. Moreover, depending on the type of loans you have, the government may cover your interest payments. You may qualify for deferment if you are unemployed, are unable to find full-time employment, or are otherwise experiencing hardships.
If you do not qualify for deferment, you may be eligible for forbearance, where your payments are suspended for up to twelve months.
Unlike deferment, your loans will accumulate interest during this time. You can qualify for forbearance if your payments total more than 20 percent of your gross income, you are experiencing financial hardship, or are battling an illness.
To find out if you qualify for either deferment or forbearance, contact your loan servicer directly.
Managing student loans without a degree
If you left school and are struggling to manage your loans, do your homework to find out what options are available. You may be able to refinance your loans and get a more competitive interest rate, qualify for an income-driven repayment plan, or postpone payments through deferment or forbearance.
For more information on repayment options, learn how to apply for an income-driven repayment plan.
Interested in refinancing student loans?Here are the top 6 lenders of 2018!
|Lender||Variable APR||Eligible Degrees|
|Check out the testimonials and our in-depth reviews!
1 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 3.89% APR (with Auto Pay) to 6.97% APR (with Auto Pay). Variable rate loan rates range from 2.47% APR (with Auto Pay) to 6.30% 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 Month/Day/Year, 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 08/21/18. 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@example.com, or call 888-601-2801 for more information on ourstudent loan refinance product.
© 2018 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.
2 Important Disclosures for Laurel Road.
Laurel Road Disclosures
APR stands for “Annual Percentage Rate.” Rates listed include a 0.25% EFT discount, for automatic payments made from a checking or savings account. Interest rates as of 11/8/2018. Rates subject to change.
Variable rate options consist of a range from 3.27% per year to 6.09% per year for a 5-year term, 4.64% per year to 6.14% per year for a 7-year term, 4.69% per year to 6.19% per year for a 10-year term, 4.94% per year to 6.44% per year for a 15-year term, or 5.19% per year to 6.69% per year for a 20-year term, with no origination fees. APR is subject to increase after consummation. The variable interest rate will change on the first day of every month (“Change Date”) if the Current Index changes. The variable interest rates are based on a Current Index, which is the 1-month London Interbank Offered Rate (LIBOR) (currency in US dollars), as published on The Wall Street Journal’s website. The variable interest rates and Annual Percentage Rate (APR) will increase or decrease when the 1-month LIBOR index changes. The variable interest rates are calculated by adding a margin ranging from 0.98% to 3.80% for the 5-year term loan, 2.35% to 3.85% for the 7-year term loan, 2.40% to 3.90% for the 10-year term loan, 2.65% to 4.15% for the 15-year term loan, and 2.90% to 4.40% for the 20-year term loan, respectively, to the 1-month LIBOR index published on the 25th day of each month immediately preceding each “Change Date,” as defined above, rounded to two decimal places, with no origination fees. If the 25th day of the month is not a business day or is a US federal holiday, the reference date will be the most recent date preceding the 25th day of the month that is a business day. The monthly payment for a sample $10,000 loan at a range of 3.27% per year to 6.09% per year for a 5-year term would be from $180.89 to $193.75. The monthly payment for a sample $10,000 loan at a range of 4.64% per year to 6.14% per year for a 7-year term would be from $139.65 to $146.76. The monthly payment for a sample $10,000 loan at a range of 4.69% per year to 6.19% per year for a 10-year term would be from $104.56 to $111.98. The monthly payment for a sample $10,000 loan at a range of 4.94% per year to 6.44% per year for a 15-year term would be from $78.77 to $86.78. The monthly payment for a sample $10,000 loan at a range of 5.19% per year to 6.69% per year for a 20-year term would be from $67.05 to $75.68.
However, if the borrower chooses to make monthly payments automatically by electronic funds transfer (EFT) from a bank account, the variable rate will decrease by 0.25%, and will increase back up to the regular variable interest rate described in the preceding paragraph if the borrower stops making (or we stop accepting) monthly payments automatically by EFT from the designated borrower’s bank account.
3 Important Disclosures for SoFi.
4 Important Disclosures for LendKey.
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.
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 2.28% effective October 10, 2018.
6 Important Disclosures for Citizens Bank.
Citizens Bank Disclosures
|2.47% – 6.99%3||Undergrad & Graduate|
|2.47% – 6.30%1||Undergrad & Graduate|
|2.51% – 8.09%4||Undergrad & Graduate|
|3.02% – 6.44%2||Undergrad & Graduate|
|2.69% – 7.21%5||Undergrad & Graduate|
|2.79% – 8.39%6||Undergrad & Graduate|