Refinancing with Earnest
Refinancing rates from 2.47% APR. Checking your rates won’t affect your credit score.Check out Earnest
Feeling the pinch of high student loan interest rates? If you have a stable job history, decent income, and good credit, you might be the perfect candidate for refinancing.
Despite private student loan refinancing being a relatively recent development as far as far as financial products go, the marketplace is quickly growing with viable options. As a result, student loan borrowers can choose lenders according to criteria such as interest rates, flexible repayment terms, and solid reputations – lenders such as PenFed.
What is PenFed?
In 2010, an experienced big-bank executive who realized smaller is better when it comes to financial services invested in the launch of CordiaGrad in 2010; the goal was to create a small financial institution that could focus on excellent customer service and student loan refinancing.
Recently, CordiaGrad changed its name to PenFed in order to better represent its mission to provide helpful refinancing options.
PenFed focuses on working with borrowers who have graduated and have at least two years of employment history, although they make exceptions for individuals with medical or dental degrees.
PenFed loans are originated by Bank of Virginia (member FDIC) and are serviced by University Accounting Services. In addition to student loan refinancing, PenFed also offers a checking account product for borrowers.
What PenFed does as a refinancing company
As a private student loan refinancing company and bank, PenFed can refinance federal, private, and Parent PLUS loans. The minimum loan amount is $20,000 and the maximum is $350,000 – though holders of medical or dental degrees who exceed the maximum are encouraged to reach out for a manual review.
Applicants can use PenFed’s Find My Rate tool to determine their loan’s interest rate without submitting an application or undergoing a credit check. As of this writing, variable rates range from 2.69% to 7.43% APR and fixed rates range from 3.25% to 7.03% APR.
These rates assume a 0.50% reduction for setting up auto-pay from your PenFed checking account. Checking accounts also include bill pay, mobile deposits, online banking, text banking, free ATMs nationwide, and an app to manage your money.
PenFed borrowers can opt for 5-year, 8-year, or 12-year loan repayment terms. Applications can be completed in as little as 15 minutes and you can check on the status of your application anytime by logging in to your account.
Applying for PenFed refinancing
To qualify for refinancing with PenFed, you must be a U.S. citizen at least 23 years of age. You must also hold at least a bachelor’s degree and have at least a two-year employment history.
To qualify without a cosigner, you must have an annual income of at least $42,000 and a strong credit history. If you make at least $25,000 and meet the other requirements, you may qualify to refinance with a cosigner.
PenFed now offers a cosigner release option for borrowers who have a cosigner on their refinanced PenFed loan. Borrowers may request a cosigner release after one year (12 consecutive months) of on-time payments. Like other lenders that offer cosigner release, PenFed then conducts a quick re-evaluation of the borrower’s financial and credit profile before granting the release.
Once you use the Find My Rate tool to confirm your interest rate, you can create an account and apply for preapproval. Then you’ll need to provide the following supplemental materials:
- Income verification: A paystub or tax return
- Photo ID: A driver’s license, passport, or state-issued ID card
- Payoff Verification Statements from each existing servicer: a statement that projects the payoff amount 10, 15, or 30 days into the future
- Graduation verification: A copy or photo of your diploma or transcripts
- Verification of two years minimum of employment: W-2s or 1099s will suffice, as well as offer letters that match up to your pay stub.
PenFed makes this process simple – you can upload a smartphone photo or screenshot directly into your application. Plus, there are no origination fees for PenFed student loans.
Making student loan payments to PenFed
If you refinance your student loans with PenFed, the most convenient method for making payments is through an auto-debit from your PenFed checking account.
As mentioned, setting up automatic payments from your PenFed account qualifies you for a 0.50% interest rate reduction. Bonus: because payments are made automatically, you don’t have to worry about being late or missing a payment.
Prefer to make automatic payments from another checking account? No problem! And you’ll still qualify for a rate discount of 0.25%.
There is never a penalty for paying your loan early. Though PenFed doesn’t offer deferment or forbearance, if you have trouble making payments for any reason, they do work with borrowers with extenuating circumstances on a case-by-case basis.
PenFed Contact Information
If you have federal or private student loans, a high credit rating, and stable employment, you have many resources at your disposal to help you refinance your student loan debt. Is PenFed refinancing right for you? The only way to find out for sure is to apply.
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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 5.87% APR (with Auto Pay). Variable rate loan rates range from 2.47% APR (with Auto Pay) to 5.87% 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 firstname.lastname@example.org, 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
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.
6 Important Disclosures for Citizens Bank.
Citizens Bank Disclosures
|2.57% – 6.98%3||Undergrad & Graduate||Visit SoFi|
|2.47% – 5.87%1||Undergrad & Graduate||Visit Earnest|
|2.47% – 8.03%4||Undergrad & Graduate||Visit Lendkey|
|2.80% – 6.22%2||Undergrad & Graduate||Visit Laurel Road|
|2.48% – 6.25%5||Undergrad & Graduate||Visit CommonBond|
|2.57% – 8.17%6||Undergrad & Graduate||Visit Citizens|