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3.99% to 11.06%
APR
Varies by lender
Min. Credit Score
Product Name | LendKey Private Student Loans |
---|---|
APR | 3.99% to 11.06% |
Interest Rate Type | Fixed |
Minimum Loan Term | 5 years |
Maximum Loan Term | 15 years |
Requirements | Be US citizen or permanent resident and 18 years old |
Review by
Kellye Guinan was a financer writer for Finder, covering everything from loans from auto to personal to business finance.
LendKey is ideal if you’re looking to borrow from a local bank or credit union to pay for school. Its network of lenders offer relatively competitive rates and flexible repayment options. In addition, you can get a 0.25% rate discount if you choose to sign up for autopay after picking a lender.
There’s a catch, though. You’re limited to a maximum 15-year loan term, which can be burdensome if you can’t afford high monthly repayments after graduating. You might want to look elsewhere if you want to spread your loan repayments out over 20 or 25 years.
Still on the fence? Check out our list of other student loan providers that might be a better fit.
Because LendKey partners with different lenders, it doesn’t have a list of eligibility requirements. Instead, it encourages potential borrowers to submit an online form to check eligibility.
But in general, you need to meet the following criteria to take out a student loan:
LendKey is an online connection service that connects borrowers with a student loan provider that can help finance their education. It currently partners with a range of local banks and credit unions.
You can borrow all the way up to your school-certified cost of attendance. While you can choose between fixed or variable interest rates, its partners only offer loan terms of 5 years to 15 years. However, you can apply for up to five years of in-school deferment before repayments begin.
Since LendKey’s partners don’t charge application or origination fees, the main cost you need to worry about is interest. You can choose between fixed or variable rates: Fixed rates range from 4.99% to 11.24% APR, while variable rates span from 3.99% to 11.06% APR. Late fees and prepayment penalties vary based on the partner you’re matched with.
LendKey’s partners offer a 0.25% rate discount to borrowers who sign up for autopay. Other discounts may be available, depending on the lender you’re partnered with.
LendKey’s partners offer repayment terms from 5 years to 15 years. However, you can apply to have your repayments deferred for up to five years while you’re in school. As for the different repayment plans available, that will depend on the specific lender you’re matched with.
In general, most providers offer these three repayment options at a minimum:
It depends on the lender you’re connected with. Many offer in-school deferment and forbearance for financial hardship.
If granted forbearance, your monthly repayments will be reduced or put on hold entirely. However, interest continues to accrue during this time. When repayments begin again, that interest is capitalized and added to your loan balance. This means you’re effectively paying interest on interest. This can result in higher monthly repayments and a more expensive loan in the long run.
There are a few perks of taking out a student loan through one of LendKey’s partner lenders, including:
Consider these potential drawbacks before taking out a student loan through one of LendKey’s partners:
LendKey gets mostly positive reviews from customers as of September 2019. While its six reviews on the Better Business (BBB) website are negative, it scores a 4.5 out of 5 on Trustpilot, based on over 130 reviews. LendKey is accredited with the BBB and receives an A+ rating based on factors like transparency and time in business.
Several borrowers praised how simple and effective the process was. The few complaints against the company revolve around mishandled repayments and poor customer service. One borrower claimed LendKey failed to deduct repayments on the due date, then charged late fees. Another said they found no help from LendKey when dealing with a difficult financial situation.
Ready to get connected with a lender? Follow these steps to get started:
Follow the directions to complete your application.
While it varies by lender, you’ll typically need to provide the following for you or your cosigner:
Because LendKey isn’t a lender itself, your servicer will depend on the lender you apply with. Reach out to your lender for details on how and where to make repayments.
LendKey was founded in 2009 in response to the financial crisis and partners with hundreds of banks and credit unions to help them reach more borrowers. In addition to student loans, LendKey also offers student loan refinancing and home improvement loans — both for homeowners and contractors.
Want to borrow through a direct provider instead? Read our guide to student loans to compare your options.