Earnest Student Loans Review - My Experience Using Earnest

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Earnest Offers A New Way To Save On Your Student Loans

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(Money Under 30 Rating)

Ranking

9/10

Earnest is one of the lowest cost student loan lenders in the industry, charging low interest rates and no fees. They offer flexible repayment terms, like skipping a payment every 12 months.

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Fees

10/10

Loan amounts

10/10

Flexibility

10/10

Loan products

9/10

Ease of application

9/10

Best for:

Average+ credit
Large student loans
Flexible payment terms
No fees and low rates

Review of: Earnest | Reviewed by: David Weliver | Last modified: May. 9, 2022

Editor's Note - You can trust the integrity of our balanced, independent financial advice. We may, however, receive compensation from the issuers of some products mentioned in this article. Opinions are the author's alone. This content has not been provided by, reviewed, approved or endorsed by any advertiser, unless otherwise noted below.

If you’re looking for a direct lender who cuts out the red tape and gives you a low-interest rate student loan (or student loan refinance) – with no fees – you need to check out Earnest.

You can get a rate quote in just two or three minutes, without affecting your credit score. And if you get a loan through Earnest, you’ll enjoy complete flexibility in determining your monthly payment, even while your loan is in repayment.

What is Earnest?

Based in San Francisco, CA, and launched in 2014, Earnest provides private student loans, student loan refinances, and even personal loans.

Earnest is designed for those who are seeking private student loan financing, or the ability to refinance their current student loan debts into a new loan with a lower interest rate and/or a lower monthly payment.

The company has Better Business Bureau rating of “A+”, the highest rating on their scale ranging from A+ to F.

What loan programs does Earnest offer?

Private student loans

Earnest offers six different types of private student loans for current students:

Undergraduate private student loans
Graduate private student loans
Cosigned private student loans
Business school loans
Medical school loans
Law school loans

Private loans come with the following features:

Nine-month grace period
The ability to skip a payment once each year
Provides up to 100% of your school’s certified cost of attendance
The minimum loan amount is $1,000, up to the full cost of your attendance
Loan terms of five or seven years if you are qualifying alone, or five to 15 years if you are qualifying with a cosigner

Even though a nine-month grace period is offered, you will still have the option to make fixed payments as low as $25, or interest-only payments, to lower the amount of principal that will be due once the grace period ends.

To qualify for a private student loan, you must:

be enrolled in school full-time, have attained the age of majority as defined by your state of residence
be either a US citizen or permanent resident
have at least three years of credit history with a minimum FICO score of 650, with no bankruptcy on your credit report, and no accounts currently in collection have a minimum annual income of $35,000 per year

If you don’t meet the above qualifications, you can add a cosigner to your loan.

Unlike some private student loan lenders, Earnest does not offer the ability to have a cosigner released from the loan. The cosigner must remain on the loan until it is paid in full.

Unfortunately, if you’re from Alaska, Connecticut, Hawaii, Illinois, New Hampshire, Nevada, Texas, or Virginia, you’re not eligible for private student loans.

Student loan refinances

Minimum loan amount: $5,000

You can use the student loan refinance program to refinance both federal and private student loans. The minimum loan amount is $5,000, and the maximum is up to the full amount you owe on existing student loan debts.

You must be a US citizen to qualify

To qualify, you must be a US citizen or permanent resident alien, at least 18 years of age, and be the primary borrower on the student loans you want to refinance.

Available in most states

Student loan refinances are available in the District of Columbia and all states except Delaware, Kentucky, and Nevada.

In addition, if you are still in school, you must be enrolled less than half time, with your student loans already in repayment status.

You must be employed to qualify

You must be employed with consistent income, or have a written job offer for a position that starts within six months.

Credit score minimum: 650

The minimum credit score requirement is 650, your student loans must all be in good standing, you must be current on your rent or mortgage payments, and not have a bankruptcy on your credit report or any accounts recently in collection.

You have to spend less than you earn

You must also spend less than you earn, have at least two months of normal expenses in savings, and show a pattern of increasing bank account balances.

Personal loans

Loan amounts from $5,000-$75,000

Earnest makes personal loans available in amounts ranging from $5,000 all the way up to $75,000.

Personal loans are available for just about any purpose including weddings, home-improvement, vacations, moving and relocation, engagement rings, debt consolidation, and medical expenses.

Prohibited loan purposes include tuition, business capital, and purchase money real estate loans.

Earnest doesn’t just consider your credit score

Earnest goes beyond your credit score alone in determining your eligibility.

They also look at your personal savings patterns, education and earning potential. The combination of all factors will make it easier for them to offer you the lowest possible rate.

Short application

When you make an application, the loan decision will typically take between five and 10 business days. If your loan is approved, the funds will be transferred in your bank account just one or two business days after signing your loan documents.

You must be a US citizen to qualify

To qualify, you must be a US citizen or a permanent resident alien and be at least 18 years old.

Earnest personal loans are available in the District of Columbia and all states except Alabama, Delaware, Kentucky, Nevada, and Rhode Island.

Minimum credit score: 680

The minimum credit score is 680, and you must not have declared bankruptcy within the last three years. In addition, you cannot have any open collection accounts.

You must also spend less than you earn, have at least two months of normal living expenses (including housing) in savings, and show a pattern of increasing bank account balances.

My experience using Earnest

Wanted to share a bit more about what it was like to use Earnest.

First and foremost, you’ve got to know that Earnest provides three different loan types: new private student loans, refinancing of existing student loans, and personal loans.

The sign-up process is similar for all three types. For simplicity’s sake, I’ll demonstrate the sign-up process for student loan refinances below.

The application process uses five input screens, with the first asking for basic information:

Earnest Step 1 - Earnest

On the second screen, you’ll be asked to provide your education history:

Earnest Step 2 - Earnest

The third screen will ask you about your financial situation, including annual income, liquid assets, and house payment.

Earnest Step 3 - Earnest

Input screen number four will ask for residential information.

Earnest Step 4 - Earnest

Screen number five will ask you to create a password as well as to enter your Social Security number.

You’ll also need to check a box acknowledging several disclosures, and an “I’m not a robot” box.

Earnest Step 5 - Earnest

Once you’ve completed this screen, you’ll check the green “Get Your Rate” button, and your rate will be provided.

The entire process can be completed in just a couple of minutes.

Ernest uses a “soft credit pull”, so your credit score won’t be dinged by an inquiry from the platform. Naturally, once you make a formal application, a hard credit pull will be conducted. You’ll also be required to provide documentation proving your education, income, and existing loan balances.

How much does Earnest cost?

Earnest does not charge an application or origination fee on its private student loans or student loan refinances. There are also no prepayment penalties and no late fees.