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finder.com’s rating: 4.9 / 5.0
★★★★★
Starting at 1.05% APR with autopay
APR
Cost of attendance
Max. Loan Amount
650
Min. Credit Score
Product Name | Earnest Student Loans |
---|---|
Minimum Loan Amount | $1,000 |
Max. Loan Amount | Cost of attendance |
APR | Starting at 1.05% APR with autopay |
Interest Rate Type | Variable |
Fixed rate | 3.49% APR with autopay |
Minimum Loan Term | 5 years |
Maximum Loan Term | 20 years |
Requirements | Enrolled full time at eligible Title IV school, 650+ credit score, $35,000+ income, clean credit history, live in eligible state, US citizen or permanent resident, age of majority |
Review by
Anna Serio is a trusted lending expert and certified Commercial Loan Officer who's published more than 1,000 articles on Finder to help Americans strengthen their financial literacy. A former editor of a newspaper in Beirut, Anna writes about personal, student, business and car loans. Today, digital publications like Business Insider, CNBC and the Simple Dollar feature her professional commentary, and she earned an Expert Contributor in Finance badge from review site Best Company in 2020.
Earnest’s longer-than-average nine-month grace period and flexible in-school repayment options make it stand out from other private student loan providers. With a wide range of loan terms to choose from, you can pick a repayment plan that best fits your monthly budget. And you won’t have to worry if you occasionally can’t make a payment on time — Earnest charges zero late fees. It also comes with the option to skip a repayment once a year.
However, you’ll want to make sure Earnest is available in your state before applying — it currently doesn’t offer new loans in Nevada. And if you want to take your cosigner off your loan down the road, your only option is to refinance it in your own name.
Not sold on Earnest? Check out our list of other student loan providers to compare even more options.
Earnest offers both fixed and variable rates. Fixed rates start at 3.49% APR with autopay, while variable rates currently start at 1.05% APR — also including the 0.25% autopay discount. To get and keep that discount, you have to enroll in autopay and keep it active through the life of your loan. You also can’t combine it with other discounts through loan repayment programs.
To protect borrowers from unexpected changes in the lending market, Earnest caps variable rates at 8.95%, 9.95% or 11.95% depending on the loan term.
Earnest doesn’t charge any fees to apply, nor does it have any late payment or prepayment penalties. Its terms run from five to 20 years, and you can borrow up to the cost of attendance. Use the calculator below to see how much an Earnest student loan might cost you each month — if you start making full repayments right away.
The rate and term you qualify for depends on factors like you or your cosigner’s credit score and income, while your loan amount depends on your school’s cost of attendance.
If you choose to defer or make partial repayments on your loan, you can expect a higher monthly cost than the calculator above shows.
Yes, you can qualify for a 0.25% rate discount when you sign up for automatic repayments. You can’t combine the discount with others you may receive from repayment plans. And if you have a multiparty loan, only one party can enroll in autopay.
Earnest has two sets of eligibility requirements: one for students and one for cosigners. Students who apply on their own must meet both sets of requirements.
Earnest also considers several factors beyond your credit rating when assessing your application:
Earnest private student loans work by directly sending money to your school to cover up to your full cost of attendance. Earnest recommends that you first apply to grants, scholarships and federal aid and also consider what your family can afford to pay before turning to its private student loan option.
You can apply online on your own or with a cosigner. If approved, Earnest confirms your loan amount with your financial aid office and sends the funds directly to your school. You can choose to start making full or reduced repayments right away to save on interest. Or you can hold off on repayments entirely until nine months after graduation.
No, Earnest currently only offers loans to students. You can find lenders that offer them by reading our guide to parent loans.
BBB accredited | Yes |
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BBB rating | A+ |
BBB customer reviews | 1.63 out of 5 stars, based on 24 customer reviews |
Trustpilot Score | 4.7 out of 5 stars, based on 2,596 customer reviews |
Customer reviews verified as of | 16 October 2020 |
Earnest has four repayment options while you’re in school and the nine months after you drop below half-time enrollment. Payments typically begin between 23 and 58 days after Earnest disburses your loan, with the exception of deferred repayments.
Deferred repayments allow you to hold off on repayments entirely until your grace period is up. This option is available to borrowers who applied both with and without a cosigner.
This option allows you to make $25 monthly repayments until your grace period is up. Depending on how much you borrow, this option can help you reduce the amount of interest that Earnest adds to your loan. Or if your interest payments are lower than $25 a month, it can also help you get a head start on repaying your loan.
Fixed repayments are available to all borrowers.
Make payments on the interest that adds up while you’re still in school and during your grace period. This option helps you avoid having interest added to your balance and makes your monthly repayments less expensive. You must apply with a cosigner to be eligible.
Begin making full repayments on your loan balance and interest 23 to 58 days after your loan is disbursed. This is the least-expensive option since you’ll pay less interest and avoid having any unpaid interest added to your balance. However, you must apply with a cosigner to be eligible.
Yes, Earnest offers forbearance if you face a financial hardship that affects your ability to repay. This can include:
Quitting your job or getting fired doesn’t count as a financial hardship, according to Earnest. If you become permanently disabled, Earnest fully discharges your student loan.
From its extra-long grace period to its lack of late fees, here are a few perks of taking out a student loan from Earnest:
Consider these potential drawbacks before taking out a private student loan from Earnest:
Yes, Earnest is a legitimate private student loan provider. You can easily access its lending licenses on its website. And it take steps to protect the information you enter online, like using SSL encryption. It also doesn’t sell your information to third parties — though it may share it with partners for business use.
You can apply for an Earnest student loan online. Check that you meet Earnest’s eligibility requirements before you get started. Once you’re sure you qualify, follow these steps to get started:
Once you submit the application, Earnest presents offers for different rates and terms you might qualify for. Select the offer you prefer and follow the directions to sign the loan documents.
You might have heard that Earnest was acquired by student loan servicer Navient in 2017. But the company still services its own student loans. That means you’ll apply for and repay your student loans through the same company. If you’re not happy with Earnest as a servicer, consider refinancing.
Earnest is a direct online lender that specializes in student loans. Rather than just relying on your credit score, this lender considers other factors like spending and savings habits, employment, levels of education and more.
It just started offering private student loans in 2019, and previously provided personal loans. You can also refinance student loans through Earnest.
Read our guide to student loans to weigh your options and see how Earnest compares to the competition.
★★★★★ — Excellent
★★★★★ — Good
★★★★★ — Average
★★★★★ — Subpar
★★★★★ — Poor
We rate student loan providers on a scale of 1 to 5 stars based on factors like transparency, costs and customer experience. We don’t take into account elements like eligibility criteria, state availability or payment frequency — we save that for our reviews.