LendKey Private Student Loans Review: Connect with Community Banks, Credit Unions

Advertiser Disclosure

Student Loan Hero Advertiser Disclosure

Our team at Student Loan Hero works hard to find and recommend products and services that we believe are of high quality. We sometimes earn a sales commission or advertising fee when recommending various products and services to you. Similar to when you are being sold any product or service, be sure to read the fine print to help you understand what you are buying. Be sure to consult with a licensed professional if you have any concerns. Student Loan Hero is not a lender or investment advisor. We are not involved in the loan approval or investment process, nor do we make credit or investment related decisions. The rates and terms listed on our website are estimates and are subject to change at any time.

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.

lendkey-review-student
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

When you shop around for a private student loan, you might apply with multiple banks and credit unions to compare offers. But when you look into LendKey private student loans, this process is already baked into the cake.

On its platform, LendKey promises to connect you with hundreds of community banks and credit unions simultaneously. You can access lenders you might have otherwise overlooked and, ideally, compare multiple loan offers in one place.

In addition to the student loan refinancing it offers to graduates, LendKey’s partner lenders also offer in-school loans with competitive interest rates and some partner lenders even offer an an attractive cosigner release policy. Read on for all the details.

LendKey student loans review: The basics

To be eligible at LendKey — founded in 2009 with offices in New York City and Cincinnati — you have to be a U.S. citizen or permanent resident attending an eligible school. You must also meet the specific lender’s credit and income requirements to qualify for a loan. You (or your cosigner), for example, would need a credit score of at least 660.

Keep in mind that because LendKey would be your servicer, not your lender, the terms of your loan would depend on your lending bank or credit union. With that said, here are the basics of private student loans serviced by LendKey:

  • Available for undergraduate and graduate students
  • Borrow as little as $2,000 and as much as $120,000 (undergraduates) or $160,000 (graduate students)
  • Fixed and variate interest rates available
  • No application or origination fees
  • No prepayment penalties
  • 6-month low-payment grace period after you leave school (see below)
  • Autopay rate discount of 0.25%
  • Up to 18 months of forbearance
  • Cosigner release offered after 12-36 prompt monthly payments

There are also some factors of LendKey private student loans that might not be as appealing:

  • You’re required to apply with a cosigner when your income is below $24,000 or you have less than 3 years of credit history
  • You must make interest-only or fixed $25 payments while enrolled in school and during the grace period
  • Only a 10-year repayment term is available

What we like about LendKey private student loans

Given that LendKey is more of a marketplace than a lender, you might not be surprised to learn that its application process generally takes less than 15 minutes and is relatively easy to follow.

When applying, you’ll be asked for information about your school, major and citizenship status. You’ll also have to give your Social Security number and total annual income, and you must agree to undergo a credit check. After that, you’ll receive a loan offer.

Here are a few factors that could make that offer more attractive in your eyes.

Your ‘Academic Credit Score’ could lower your rate

You might wonder why LendKey also asks you to select the range of your grade point average (GPA) or send over your latest transcripts. This is because the company uses the information to assess your reliability.

Your GPA, course of study and class-standing information — right alongside your (or your cosigner’s) credit history — is plugged into LendKey’s proprietary credit scoring model. This is referred to this as your Academic Credit Score, and the better it is, the better the chance you have to score lower interest rates.

A lower rate could mean significant savings. Say you qualify for a 6.00% interest rate and intend to borrow $10,000 for your next year of school. Repaying your five-figure debt over a 10-year term would cost you $3,322 in interest, according to our monthly payment calculator.

Now say your Academic Credit Score dragged down your loan application, so you only qualified for a 9.00% rate. Repaying that $10,000 over the same term would include $5,201 of interest.

Release your cosigner in 1 to 3 years

Most undergraduate student loans offered by private lenders require or strongly encourage you to apply with a cosigner. As a teen or 20-something, you likely don’t have the income or credit history to apply on your own anyway.

At LendKey, you’ll need to attach this guarantor to your loan application if you earn less than $24,000 per year or have fewer than 36 months of credit history.

On the plus side, some LendKey network lenders have a cosigner release policy that would allow you to thank your Mom, Dad or other guarantor and send them on their merry way after 12 to 36 months of full and prompt payments.

Pause your repayment for up to 18 months

Hiccups are a part of life, so naturally, you could expect to experience one during your student loan repayment as well. A significant benefit of borrowing from one of LendKey’s member lenders is that you could pause your repayment for up to 18 months (in six-month increments).

The forbearance policy is especially generous when compared with competitors. Even some top-rated lenders max out their offering at 12 months.

Borrowing from a company that promises relatively extensive hardship protection will not only put your mind at ease — it could lower your costs and keep your finances from additional harm, avoiding a serious incident like student loan default.

But be aware that, like most competitors, LendKey’s policy allows interest to accrue and capitalize onto your loan balance while you step away from repayment.

What to keep in mind about LendKey private student loans

You might find LendKey’s platform user-friendly, but remember that it’s not your lender — the bank or credit union would be.

That explains, at least in part, why you must complete a full application off the bat, subjecting yourself to a hard credit check. There’s no way, at least currently, for the company to help you prequalify faster and with less effect on your credit.

Here are a few more factors to consider before choosing LendKey as your loan servicer:

You might not receive multiple loan offers

The real boon of borrowing from LendKey is that it can help you rate-compare among lenders and connect you with lesser-known lenders you might not have considered on your own.

Unfortunately, depending on your borrowing situation, LendKey might not truly deliver part of this key benefit. After completing the first stage of your application, for example, you might be asked to select your lender, only to find a single credit union available.

In other cases, your state of residence might restrict you to just one of LendKey’s partner lenders. And even if LendKey’s prescribed lender offers a suitable loan agreement, you might still need to hunt around elsewhere to ensure you find the best loan available.

You are required to make in-school payments

There are plenty of benefits of making in-school payments: Beginning to repay your loan while you’re enrolled could beef up your credit history, for example, and also stop interest from ballooning your balance.

Many LendKey partner lenders, however, lock you into this choice. They require borrowers — regardless of their financial situation or personal preference — to either make interest-only payments or fixed $25 payments while enrolled and after, while enjoying a grace period.

If you’d rather take the higher toll of accruing interest in exchange for the freedom to put off repayment, you might prefer a lender like College Ave, which offers four in-school repayment options, including full deferment.

You might need to join a credit union first

If your LendKey application directs you to select one or more credit unions, you will also have to apply — and pay for — membership at the credit union itself. The process isn’t especially difficult, and the costs can often be as low as $1-$5, but there’s more red tape here than if you elected to borrow from a bank or online-only lender.

If you don’t see a discounted rate or other unique benefits to joining and borrowing from a not-for-profit credit union, you might test the waters with no-fee online lenders, such as Ascent.

Are LendKey private student loans right for you?

When shopping around for a private student loan, we recommend comparing rates with at least three lenders. That way, you’ll find the least costly — or best overall — loan agreement for your borrowing needs.

You could qualify for relatively low interest rates from LendKey’s partner lenders. These community banks and credit unions also tack on one of the more generous forbearance policies available among private lenders.

On the downside, you might prefer full deferment to the in-school repayment options required by LendKey’s partners. More critically, you might wonder if the company lives up to its promise as a marketplace if it only connects you with a single lender, rather than a few.

Even if it doesn’t serve as a one-stop shop, however, you could consider LendKey one of the “lenders” you request quotes from before making your final decision. Additionally, if you like the idea of borrowing from a nonprofit lender like LendKey’s partners, you can also explore some of the other ways to find credit union student loans that are a good fit for you.

Need a student loan?

Here are our top student loan lenders of 2019!
LenderVariable APREligibility 
* The Sallie Mae partner referenced is not the creditor for these loans and is compensated by Sallie Mae for the referral of Smart Option Student Loan customers.

1 = Sallie Mae Disclaimer: Click here for important information. Terms, conditions and limitations apply.

2 Important Disclosures for Earnest.

Earnest Disclosures

  1. Rates include 0.25% Auto Pay Discount
  2. Explanation of Rates “With Autopay” (APD)
    Rates shown include 0.25% APR discount when client agrees to make monthly principal and interest payments by automatic electronic payment. Use of autopay is not required to receive an Earnest loan.

    Available Terms
    For Cosigned loans – 5, 7, 10, 12, 15 years. 
    Primary Only – 10, 12, 15 years

    In school deferred payment is not available in AL, AZ, CA, FL, MA, MD, MI, ND, NY, PA, and WA).


3 Important Disclosures for College Ave.

CollegeAve Disclosures

College Ave Student Loans products are made available through either Firstrust 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.

(1)All rates shown include the auto-pay discount. The 0.25% auto-pay interest rate reduction applies as long as a valid bank account is designated for required monthly payments. Variable rates may increase after consummation.

(2)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 disbursement 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.

(3)As certified by your school and less any other financial aid you might receive. Minimum $1,000.

Information advertised valid as of 7/1/2019. Variable interest rates may increase after consummation.


4 Important Disclosures for Discover.

Discover Disclosures

  1. Students who get at least a 3.0 GPA (or equivalent) qualify for a one-time cash reward on each new Discover undergraduate and graduate student loan. Reward redemption period is limited. Please visit DiscoverStudentLoans.com/Reward for any applicable reward terms and conditions.
  2. View Auto Reward Debit Reward Terms and Conditions at DiscoverStudentLoans.com/AutoDebitReward.
  3. Aggregate loan limits apply.
  4. The interest rate ranges represent the lowest and highest interest rates offered on Discover student loans, including Undergraduate, Graduate, Health Professions, Law and MBA Loans. The fixed interest rate is set at the time of application and does not change during the life of the loan. The variable interest rate is calculated based on the 3-Month LIBOR index plus the applicable Margin percentage. The margin is based on your credit evaluation at the time of application and does not change. For variable interest rate loans, the 3-Month LIBOR is 2.50% as of July 1, 2019. Discover Student Loans will adjust the rate quarterly on each January 1, April 1, July 1 and October 1 (the “interest rate change date”), based on the 3-Month LIBOR Index, published in the Money Rates section of the Wall Street Journal 15 days prior to the interest rate change date, rounded up to the nearest one-eighth of one percent (0.125% or 0.00125). This may cause the monthly payments to increase, the number of payments to increase or both. Please click https://www.discover.com/student-loans/interest-rates.html
    for more information about interest rates

5 Important Disclosures for CommonBond.

CommonBond Disclosures

A government loan is made according to rules set by the U.S. Department of Education. Government loans have fixed interest rates, meaning that the interest rate on a government loan will never go up or down.

Government loans also permit borrowers in financial trouble to use certain options, such as income-based repayment, which may help some borrowers. Depending on the type of loan that you have, the government may discharge your loan if you die or become permanently disabled.

Depending on what type of government loan that you have, you may be eligible for loan forgiveness in exchange for performing certain types of public service. If you are an active-duty service member and you obtained your government loan before you were called to active duty, you are entitled to interest rate and repayment benefits for your loan.
If you are unable to pay your government loan, the government can refer your loan to a collection agency or sue you for the unpaid amount. In addition, the government has special powers to collect the loan, such as taking your tax refund and applying it to your loan balance.

A private student loan is not a government loan and is not regulated by the Department of Education. A private student loan is instead regulated like other consumer loans under both state and federal law and by the terms of the promissory note with your lender.
If you refinance your government loan, your new lender will use the proceeds of your new loan to pay off your government loan. Private student loan lenders do not have to honor any of the benefits that apply to government loans. Because your government loan will be gone after refinancing, you will lose any benefits that apply to that loan. If you are an active-duty service member, your new loan will not be eligible for service member benefits. Most importantly, once you refinance your government loan, you will not able to reinstate your government loan if you become dissatisfied with the terms of your private student loan.

If your private student loan has a fixed interest rate, then that rate will never go up or down. If your private student loan has a variable interest rate, then that rate will vary depending on an index rate disclosed in your application. If the interest rate on the new private student loan is less than the interest rate on your government loans, your payments will be less if you refinance.
If you are a borrower with a secure job, emergency savings, strong credit and are unlikely to need any of the options available to distressed borrowers of government loans, a refinance of your government loans into a private student loan may be attractive to you. You should consider the costs and benefits of refinancing carefully before you refinance.

If you don’t pay a private student loan as agreed, the lender can refer your loan to a collection agency or sue you for the unpaid amount.

Remember also that like government loans, most private loans cannot be discharged if you file bankruptcy unless you can demonstrate that repayment of the loan would cause you an undue hardship. In most bankruptcy courts, proving undue hardship is very difficult for most borrowers.


6 Important Disclosures for PNC.

PNC Disclosures

  1. Annual Percentage Rates (APRs): APRs from 4.52% to 11.11% are for the fully deferred repayment option, include the 0.50% interest rate discount for automatic payment and encompass the full range of APRs for the three repayment term options (5, 10 and 15 year). APRs within this range may vary based on the repayment term chosen. See break down of APR ranges by repayment terms below.
  2.  

  3. Fixed Annual Percentage Rates (APRs): APRs range from 4.52% to 9.58% for a 5-year term. APRs range from 5.05% to 10.26% for a 10-year term. APRs range from 5.55% to 10.84% for a 15-year term. Fixed rates are based on the creditworthiness of the borrower and co-signer, if any. Loan Payment Example: The monthly payment per $10,000 borrowed at a fixed rate range of 5.05% APR to 10.26% APR for 10 years means you would make 120 payments which may range from $131.94 to $207.24. For the fixed rate loan, the monthly payment will remain fixed for the term of the loan. Payments may vary for other repayment term options.

    Variable Annual Percentage Rates (APRs): APRs range from 4.90% to 9.92% for a 5-year term. APRs range from 5.38% to 10.57% for a 10-year term. APRs range from 5.85% to 11.11% for a 15-year term. Variable rates are based on the London Interbank Offered Rate (LIBOR) index plus a margin depending on the creditworthiness of the borrower and co-signer, if any. The LIBOR index, adjusted quarterly, is equal to the average of the one-month LIBOR rates as published in the “Money Rates” section of the Wall Street Journal on the first business day of each of the three (3) calendar months immediately preceding each quarterly adjustment date. The LIBOR index is currently 2.47%. If the index increases or decreases, your rate will increase or decrease accordingly. Loan Payment Example: The monthly payment per $10,000 borrowed at a variable rate range of 5.38% APR to 10.57% APR for 10 years means you would make 120 payments which may range from $135.93 to $212.65. For the variable rate loan, the monthly payment may increase or decrease if the interest rate increases or decreases. Payments may vary for other repayment term options.

    APRs and loan payment examples are for the fully deferred repayment option for the Undergraduate & Graduate loan programs and include the 0.50% interest rate discount for automatic payments. The lowest APR is available to well qualified applicants. Your actual APR will be based on your credit qualifications, selection of fixed or variable rate option, loan program, repayment term, repayment option and whether you elect the automatic payment feature. Loan payment examples assume 30 days to first payment after the deferment period (45 months in school and 6 month grace period). Payments vary for other rates, repayment terms and repayment options.

    In addition to Undergraduate and Graduate loans, PNC offers loans for Health & Medical Professions, Health Professions Residency and Bar Study. Rates may vary by loan program and are subject to change at any time. Visit pnconcampus.com for current rates, additional loan payment examples and more details about the Solution loan products.

  4. Automatic Payment Discount: During repayment, an interest rate discount of 0.50% is available for automatic payments. Borrower must be making scheduled payments that include both principal and interest. Interest only payments do not qualify for the 0.50% interest rate discount. Automatic payment can be established through the loan servicer American Education Services (AES). Advertised rates include the 0.50% automatic payment interest rate discount. The rate discount will be applied at the time automatic payment is established. If automatic payment is not established, the available rates will be 0.50% higher than the advertised rates. If automatic payment is established and discontinued at any time during repayment, the borrower will no longer receive an automatic payment discount and the rate will increase by 0.50%. Discount may also be suspended during periods of forbearance or deferment. Payments may be made from a checking or savings account. A federal regulation limits the number of transfers that may be made from a savings or money market account. Please contact your financial institution for more information on transfer limitations on savings accounts.
  5. Repayment Options: Immediate, interest only payments while in school and full deferment of principal and interest options available. Interest will continue to accrue during periods of deferment. You will receive quarterly interest statements during this deferment period. Paying the interest as it accrues each quarter will save you money over the repayment term of the loan because any accrued interest that you do not pay will be added to the principal balance at the end of the deferment.
  6. Co-Signer Release: A request to release a co-signer requires that, as of the date of the request, you have made at least forty-eight (48) consecutive timely payments of principal and interest with no periods of forbearance or deferment within the forty-eight (48) month timeframe. “Timely payment” means each payment is made no later than the 15th day after the scheduled due date of the payment. “Consecutive payment” means the minimum monthly payment must be made for the most recent forty-eight (48) months straight without any interruption. To qualify for a co-signer release, the borrower must submit a request, meet the consecutive, timely payment requirements, provide proof of income and pass a credit check.
  7. Tax Deductibility: Interest may be tax deductible. Consult a tax advisor.

Please note: PNC reserves the right to modify or discontinue the terms of these program at any time without notice. You are encouraged to explore all scholarship, grant and federal borrowing options before applying for a private loan. Private loans are subject to credit approval.

PNC is a registered service mark of The PNC Financial Services Group, Inc.
© 2019 The PNC Financial Services Group, Inc. All rights reserved. PNC Bank, National Association.

3.98% – 11.35%*,1Undergraduate and Graduate

Visit SallieMae

3.99% – 11.44%2Undergraduate and Graduate

Visit Earnest

3.96%
11.98%
3
Undergraduate, Graduate, and Parents

Visit College Ave

4.72%
11.87%
4
Undergraduate and Graduate

Visit Discover

3.66% – 9.64%5Undergraduate and Graduate

Visit CommonBond

4.90% – 11.11%6Undergraduate and Graduate

Visit PNC

Our team at Student Loan Hero works hard to find and recommend products and services that we believe are of high quality. We sometimes earn a sales commission or advertising fee when recommending various products and services to you. Similar to when you are being sold any product or service, be sure to read the fine print to help you understand what you are buying. Be sure to consult with a licensed professional if you have any concerns. Student Loan Hero is not a lender or investment advisor. We are not involved in the loan approval or investment process, nor do we make credit or investment related decisions. The rates and terms listed on our website are estimates and are subject to change at any time.

You're on your way...

We'll take you to Lendingtree.com where you'll be able to fill out one form to get multiple personal loan offers, based on your creditworthiness.