Refinancing with Earnest
Refinancing rates from 2.47% APR. Checking your rates won’t affect your credit score.
At $435 per credit, Pennsylvania is the second most expensive state to attend college. And at $35,196 per student, the state’s graduates also have the highest average student loan balance in the country.
However, there are plenty of options for financing an education in the Keystone State, including taking out Pennsylvania student loans. Here’s what you need to know.
Pennsylvania student Loans: Federal options
Federal student loans for college or graduate school are available to all students, including those living in Pennsylvania. Start the process by filling out the Free Application for Federal Student Aid (FAFSA). Submitting the FAFSA makes you eligible for federal grants, work-study opportunities, and federal loans.
Once you access federal loans, you’re assigned a servicer. You could be matched with FedLoan Servicing, also known as the Pennsylvania Higher Education Assistance Agency, though that’s not guaranteed for Pennsylvania residents.
Federal Direct Loans
As an undergraduate borrower, you have access to Direct Subsidized and Direct Unsubsidized Loans.
The benefit of Direct Subsidized Loans is that the government pays the interest while you’re enrolled in school and during your grace period. That’s not the case with Direct Unsubsidized Loans.
Both loans, like all federal loans, come with fixed interest rates. Federal loan borrowers can also access income-driven repayment (IDR) plans. Qualified borrowers can decrease payments to as low as 10% of their discretionary income on IDR plans.
Additionally, federal loans provide repayment protections not typically offered by private lenders, such as student loan deferment and forbearance. Deferment allows you to pause payments for up to three years on your federal loans. Forbearance allows you to stop making payments for up to 12 months.
Undergraduate borrowers face a limit on the amount they can borrow via federal student loans. The limit depends on whether you’re a dependent or an independent student and how far along you are in college.
Graduate borrowers are eligible only for Direct Unsubsidized Loans, but they can borrow a higher amount — $20,500 per year, as of the 2017-2018 academic year.
Once you’re done with your undergraduate or graduate degree, you become eligible for a Direct Consolidation Loan. It allows you to package your outstanding loans into one new loan.
Consolidating your debt with the federal government won’t lower your interest rate the way that student loan refinancing could (more on that below). The interest rate of your Direct Consolidation Loan would be a weighted, rounded-up average of the rates on your previous loans.
Federal PLUS Loans
Federal PLUS Loans allow you to fill any gaps in paying for your school’s cost of attendance. For undergraduate borrowers, your mom or dad could take out a Parent PLUS Loan in their name.
The rates for PLUS Loans also are fixed, but they tend to be higher. Parent PLUS Loans include an interest rate of 7.00%, but Direct Unsubsidized Loans carry a rate of 4.45%.
The interest rate on Graduate PLUS Loans also is 7.00%. But unlike the $20,500 annual limit on Direct Unsubsidized Loans, PLUS Loans allow you to borrow up to the full cost of attendance of your program. That makes PLUS Loans helpful for future lawyers, medical professionals, and others who face high education costs.
All PLUS Loans require you to have better than adverse credit history. Otherwise, you could obtain an endorser, usually a relative or friend with good credit and a stable income, who acts as a cosigner on the loan and agrees to repay it if you don’t.
Pennsylvania student Loans: Private lenders
The conventional wisdom is to rely first on federal loans for college and graduate school. They come with stronger borrower protections and the ability to alter your repayment plan or pursue student loan forgiveness.
But there are times when it’s better to choose private loans over federal loans.
One example is when you have a creditworthy cosigner who can help you score a lower interest rate. Also, private lenders allow you to choose your servicer and pick a variable interest rate, which isn’t possible under federal loans.
Private student loans
Many top private lenders work with students going to school all across the country, not just in Pennsylvania.
If you don’t have an established credit history or a good credit score, or if you want lower interest rates, you likely will need a creditworthy cosigner on your private loan application in order to qualify. Your cosigner also agrees to help you repay the loan if you’re unable to do it yourself.
Student loan refinancing
Refinancing allows you to consolidate your education-related debt into one new loan at a lower interest rate if qualified. The stronger your credit score and debt-to-income ratio, the more likely you are to benefit from refinancing.
Make sure you rate-shop various student loan refinancing companies before picking a private lender. And remember that having a cosigner on your application could yield better loan terms.
Whether you’re in or out of school, review all your options for Pennsylvania student loans. Also, take the time to explore other financing options. After all, Pennsylvania is among states with generous grant programs — and you don’t have to pay back the award.
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|