Earnest Reviews: Student Loan Refinancing and Private Student Loans

Full Review

Earnest is ideal for borrowers who want to refinance college debt and pay it off quickly. Its customizable repayment options make it easy to increase monthly minimum payments, make multiple extra payments at once and make same-day payments.

Founded in 2013, Earnest also stands out for an underwriting approach based on a borrower's earning potential and the financial accounts they connect. Typical Earnest borrowers save money regularly, historically make on-time payments, and have minimal credit card or personal loan debt.

Earnest at a glance

• Customizable payments and loan terms.

• No late fees.

» MORE: Earnest personal loan review

How Earnest student loan refinancing could improve

Earnest, like other five-star lenders, isn't perfect. Earnest could improve by:

• Refinancing loans for borrowers in all 50 states.

Earnest student loan refinancing details

• Interest rates, fees and termsInterest rates, fees and terms

  • Soft credit check to qualify and see what rate you’ll get: Yes.

  • Loan terms: Borrowers can choose from 180 loan terms, ranging from five to 20 years. They can customize their loan term and payment amounts based on their budget.

  • Loan amounts: $5,000 to $500,000. In California and New Mexico, the minimum is $10,000 and $10,001, respectively.

  • Can transfer a parent loan to the child: No.

  • Application or origination fee: No.

  • Prepayment penalty: No.

  • Late fees: No.

  Compare Earnest’s range of interest rates with other student loan refinance lenders. Your actual rate will depend on factors including your — or your co-signer’s — credit history and financial situation. To see what rate Earnest will offer you, apply on its website.

• RequirementsRequirements

  Financial

  Earnest has a unique underwriting approach that considers the earning potential for your career and data from the financial accounts you connect. At a minimum, you need to connect the checking account where your paycheck is deposited so Earnest can verify your income.

  You can also choose to connect accounts for your savings, investments, credit cards and other loans to give Earnest more insight into your financial picture.

  • Minimum credit score: 665.

  • Minimum income: No minimum. Applicants must be employed or receive consistent income.

  • Median credit score of approved borrowers: 750.

  • Median income of approved borrowers: The weighted average income was $140,000 with the median being well below the weighted average as high income/high debt graduate degrees (MBA, Medical School) bring the weighted average up.

  • Maximum debt-to-income ratio: No DTI requirement.

  • Can qualify if you’ve filed for bankruptcy: Bankruptcy cannot be present on the credit report to qualify for a refi with Earnest. Depending on the type of bankruptcy that was filed, this could be within 7-10 years.

  Other

  • Citizenship: Must be a U.S. Citizen, possess a Permanent Resident Card (10-year non-conditional or 2-year conditional), are a Deferred Action for Childhood Arrivals (DACA) Recipient, are an Asylee, or hold an H-1B visa with a U.S. Citizen cosigner.

  • DACA borrowers: DACA students can qualify without a co-signer.

  • Location: Available to borrowers in Washington, D.C., and all states except Nevada. Variable rates aren’t available to borrowers in Alaska, Illinois, Minnesota, New Hampshire, Ohio, Tennessee and Texas.

  • Must have graduated: No. Borrowers refinancing a loan for an incomplete degree must have a 700 credit score. The incomplete degree must be from a not-for-profit school the borrower attended over six years ago.

  • Must have attended a school authorized to receive federal aid: Yes.

  • Percentage of borrowers who have a co-signer: 10%.

• Repayment optionsRepayment options

  • Academic deferment: Yes. Individuals who return to school for a graduate degree can defer repayment for up to 36 months.

  • Internship or residency deferment: Yes. Borrowers in a qualified internship or residency program can postpone payments for up to 36 months in 12-month increments.

  • Military deferment: Yes.

  • Hardship forbearance: Yes, borrowers can postpone payments for up to 12 consecutive months.

  • Skip a payment: Borrowers can skip one month payment every 12 months. A borrower’s first request to skip a payment can be made once they've made at least 6 months of consecutive on-time payments and the loan is in good standing.

  • Natural disaster forbearance: Yes.

  • Administrative forbearance: Yes.

  • Interest-only payments: Yes. Borrowers can make interest-only payments for up to 24 months in three-month increments.

  • Co-signer release available: There's no option to add a co-signer, but refinancing removes the original co-signer.

  • Death or total and permanent disability discharge: Yes.

  • Loan discharge if co-signer dies or becomes totally and permanently disabled: No.

  Repayment preferences

  • Allows greater-than-minimum payments via autopay: Yes.

  • Allows biweekly payments via autopay: Yes.

  Earnest also allows borrowers to make same-day payments and schedule multiple extra payments at once.

• Customer serviceCustomer service

  • Loan servicer: Earnest.

  • In-house customer service team: Yes.

  • Process for escalating concerns: Yes.

  • Borrowers get assigned a dedicated banker, advisor or representative: No.

  • Average time from approval to payoff: Usually 10 days.

• ExtrasExtras

  Earnest stands apart from other student loan refinance lenders with these features:

  • Customize your monthly payment: Earnest’s precision pricing feature lets borrowers save on interest by choosing an exact monthly payment amount. It adjusts your repayment term to match the amount you choose — even if that results in a seven-year-and-two-month loan, for example.

  • Easily adjust your payments: You can call Earnest to increase your minimum monthly payment at any time to pay off the loan faster.

  • Referral bonus: You can receive $200 for each person you refer who successfully refinances their student loans with Earnest.

» MORE: How to refinance student loans in 7 steps

Before refinancing with Earnest

Before deciding on a student loan refinance lender, compare multiple student loan refinance options to make sure you’re getting the best rate you qualify for. In addition to interest rates, compare lenders’ repayment options and the flexibility they offer borrowers who are struggling to make payments.

» MORE: Earnest vs. SoFi: Which is better for refinancing student loans?

If you aren’t eligible to refinance with Earnest

If Earnest denies your refinance application, the lender will let you know why. Depending on the reason, you may want to consider other lenders or need a co-signer.

Full Review

Earnest began offering private student loans in April 2019. It's an alternative for borrowers who have exhausted their federal student loan options and need additional money to cover college costs.

Earnest stands out for its unique repayment options, including the ability to skip one payment per year.

Earnest private student loans at a glance

• Option to skip one payment every 12 months.

• The nine-month grace period is longer than most lenders offer.

• Loans aren't available in Nevada.

How Earnest could improve

Earnest could improve its private student loan product by:

• Lending to borrowers in all 50 U.S. states.

Earnest private student loan details

• Interest rates, fees and termsInterest rates, fees and terms

  • Soft credit check to qualify and see what rate you’ll get: Yes.

  • Loan terms: 5, 7, 10, 12 or 15 years.

  • Loan amounts: $1,000 up to the annual cost of attendance with an aggregate limit of $400,000. Residents of Hawaii must request a loan of at least $1,501.

  • Application or origination fee: No.

  • Prepayment penalty: No.

  • Late fees: No.

  Compare Earnest's range of interest rates with private student loan lenders. Your actual rate will depend on factors including your credit history and financial situation. To see what rate Earnest will offer you, apply on its website.

• RequirementsRequirements

  Financial

  • Minimum credit score: The minimum credit score for a borrower without a co-signer is 650. If a borrower uses a co-signer, the minimum credit score for a co-signer is 650.

  • Minimum income: Borrowers without a co-signer have a minimum income requirement of $35,000. If a borrower has a co-signer, the co-signer's minimum income is $35,000.

  • Median credit score of approved borrowers: Roughly 770.

  • Median income of approved borrowers: Median income for borrowers with no-cosigner is $57,900. For borrowers with a co-signer, it’s $110,000, and it’s $134,500 for co-signers.

  • Maximum debt-to-income ratio: No DTI requirement.

  • Can qualify if you’ve filed for bankruptcy: Bankruptcy can not be present on credit report.

  Other

  • Citizenship: International students can qualify if they have a co-signer who is a U.S. citizen or permanent resident. The primary borrower must have a Social Security number.

  • DACA borrowers: DACA students can qualify independently without a co-signer.

  • Location: Not available to borrowers in Nevada.

  • Must be enrolled half-time or more: Yes.

  • Loan can be used for past due tuition: Yes, up to 365 days past due.

  • Types of schools served: Any school that is Title-IV qualified and not-for-profit.

  • Percentage of borrowers who have a co-signer: Did not disclose.

• Repayment optionsRepayment options

  In-school repayment options

  • Full payment.

  • Interest only.

  • Full deferred.

  • Other partial payment: Defer payment till end of 9-month grace period. Make monthly $25 in-school payments (incl. grace period). Make interest-only in school payments (incl. grace period). Make full principal and interest payments.

  Post-school repayment options

  • Grace period: 9 months.

  • Income-based repayment option: No.

  • In-school deferment: Yes, borrowers can ask to defer payments when returning to school for up to 48 months when enrolled at least half-time in an undergraduate or graduate program.

  • Military deferment: Yes.

  • Temporary lower payments: Yes. Borrowers can make interest-only payments on their loan in three-month increments for up to 24 months.

  • Skip-a-payment: Borrowers can skip one payment every 12 months. A borrower can make the first request if they've made six months of on-time consecutive payments and are in good standing.

  • Forbearance: Borrowers can pause payments for up to 12 months.

  • Co-signer release available: No.

  • Death or total and permanent disability discharge available: Yes.

  • Loan discharge if co-signer dies or becomes totally and permanently disabled: Yes.

  Repayment preferences

  • Allows greater-than-minimum payments via autopay: Yes.

  • Allows biweekly payments via autopay: Yes.

• Customer serviceCustomer service

  • Loan servicer: Earnest.

  • In-house customer service team: Yes.

  • Process for escalating concerns: Yes.

  • Borrowers get assigned a dedicated banker, advisor or representative: No.

  • Average time from application to approval: Some will know instantly. Those requiring manual review will take a few days.

Before applying for a Earnest student loan

Before taking out an Earnest student loan or any other private student loan, exhaust your federal student loan options first. Submit the Free Application for Federal Student Aid, known as the FAFSA, to apply.

» MORE: NerdWallet’s FAFSA Guide

Compare your private student loan options to make sure you’re getting the best rate you qualify for. In addition to interest rates, look at lenders’ repayment alternatives and the flexibility they offer to borrowers who struggle to make payments.

If you aren’t eligible for an Earnest student loan

If Earnest denies your student loan application, the lender will let you know why. Depending on the reason, you may want to consider other lenders or, if you haven’t already, try applying with a co-signer.

If you don’t have access to a co-signer — or still aren’t eligible with one — consider lenders that don’t require co-signers or specialize in bad or no credit student loans.

STUDENT LOAN REFINANCE RATINGS METHODOLOGY

Our survey of more than 29 banks, credit unions and online lenders offering student loans and student loan refinancing includes the top 10 lenders by market share and the top 10 lenders by online search volume, as well as lenders that serve specialty or nontraditional markets.

We consider 41 features and data points for each financial institution. Depending on the category, these include the availability of biweekly payments through autopay, minimum credit score and income requirement disclosures, availability to borrowers in all states, extended grace periods and in-house customer service.

The stars represent ratings from poor (one star) to excellent (five stars). Ratings are rounded to the nearest half-star.