Refinancing with Earnest
Refinancing rates from 2.49% APR. Checking your rates won’t affect your credit score.
Since the 1970s, Sallie Mae has serviced or provided education loans for families to pay for college and graduate school.
Although Sallie Mae used to be government-sponsored, it’s now a private company that offers private student loans to student and parents. (Its offshoot company, Navient, continues to service federal student loans.)
This distinction is important if you’re exploring Sallie Mae consolidation, as your options will be different depending on whether you have federal or private student loans.
Sallie Mae consolidation loans are no more
Before 2008, Sallie Mae offered consolidation loans. If you had multiple student loans, you were able to combine them through Sallie Mae consolidation.
But Sallie Mae no longer offers a consolidation loan, nor does it offer student loan refinancing. The company now primarily provides private student loans for college, as well as for career training and K-12 schools.
Of course, just because Sallie Mae consolidation loans are no longer a thing doesn’t mean you’re out of luck. Borrowers have a wide range of choices for repaying their student debt, whether they need consolidation (for federal loans only) or refinancing (for federal or private loans).
Consolidation for your federal student loans
If you have federal student loans, you can consolidate them with a federal Direct Consolidation Loan. Any recent Sallie Mae loans won’t count, since those are private, but people who borrowed years ago might have once had their federal student loans serviced by Sallie Mae.
Furthermore, federal student loans serviced by Navient could also qualify. According to Federal Student Aid, Stafford Loans, Direct Loans, and Direct PLUS Loans are all eligible for consolidation.
Consolidation can help you manage repayment more easily since you’ll only have a single bill to track. Plus, it lets you choose new terms for the loan, perhaps extending them to 20 or 25 years.
Extending your terms could help if you’re struggling to pay bills since it means your monthly payment will go down. But it also means you’ll be in debt for longer, so you’ll pay more interest over the life of the loan.
Plus, consolidation could cause your interest rate to slightly increase, as your new rate will be the weighted average of your previous rates rounded up to the nearest one-eighth of a percentage point. Still, this increase in interest might be worth it if you need the relief that comes with lower monthly student loan bills.
Refinancing for both federal and private student loans
Another repayment option is student loan refinancing. Although Sallie Mae doesn’t offer refinancing, other banks, credit unions, and online lenders do. Leading lenders in the refinancing space include Citizens Bank, SoFi, and Earnest.
Both private and federal student loans are eligible for refinancing. You can choose to refinance a single loan, perhaps to lower its interest rate, or multiple ones to combine them.
Note that if you refinance federal student loans, they essentially become private loans. As a result, you lose access to federal programs and protections such as income-driven repayment plans and Public Service Loan Forgiveness.
To refinance, you must meet a lender’s underwriting requirements for credit and income — or apply with a cosigner who does. Depending on your or your cosigner’s creditworthiness, you could qualify for lower interest rates than the ones you have.
Plus, you can choose new repayment terms, perhaps lengthening your term to lower monthly payments or shortening it to move up your repayment date.
Estimate the long-term costs before you make changes
Both consolidation and student loan refinancing give you the opportunity to restructure your debt in a way that makes it easier to repay.
Consolidation can simplify your debt and lower your monthly payments with a longer repayment term. But refinancing could save you money with a lower interest rate and also allow you to select a shorter or longer term, depending on your goals.
Whichever option you choose, make sure you understand how it could impact your finances.
Play around with our student loan payment calculator to estimate the short- and long-term costs of consolidating or refinancing. And if you chose refinancing, shop around to get the best available rates.
By getting a clear understanding of your costs of borrowing, you can make an informed choice about consolidating your Sallie Mae or federal student loans.
Interested in refinancing student loans?Here are the top 6 lenders of 2019!
|Lender||Variable APR||Eligible Degrees|
|Check out the testimonials and our in-depth reviews!
1 Important Disclosures for SoFi.
2 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 3.50% APR (with Auto Pay) to 7.89% APR (with Auto Pay). Variable rate loan rates range from 2.49% APR (with Auto Pay) to 7.27% 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 April 17, 2019, 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 04/17/2019. 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 firstname.lastname@example.org, or call 888-601-2801 for more information on our student 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.
3 Important Disclosures for Laurel Road.
Laurel Road Disclosures
However, if the borrower chooses to make monthly payments automatically by electronic funds transfer (EFT) from a bank account, the fixed rate will decrease by 0.25%, and will increase back up to the regular fixed 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.
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.
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.
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 2.48% effective April 10, 2019.
6 Important Disclosures for Citizens Bank.
Citizens Bank Disclosures
|2.49% – 7.27%1||Undergrad & Graduate|
|2.49% – 6.65%3||Undergrad & Graduate|
|2.49% – 7.41%4||Undergrad & Graduate|
|2.50% – 6.65%2||Undergrad & Graduate|
|2.49% – 7.11%5||Undergrad & Graduate|
|2.98% – 9.72%6||Undergrad & Graduate|