Earnest Private Student Loans Review: Term Flexibility and Borrower Protections

What you need to know:

• Earnest private student loans come with flexible in-school repayment options and a wide range of loan terms, including Rate Match of competitors' interest rates.
• Customers have access to unique borrower benefits, like an extended grace period and the option to skip a payment once per year.
• Earnest private student loans may be difficult to qualify for without a cosigner.

Earnest is consistently one of the top refinancing lenders for student loans. But it also offers private student loans that are packed with borrower benefits.

Borrowers can choose from multiple in-school repayment options, depending on their financial needs. They can also take advantage of an extended grace period that’s three months longer than the industry standard.

But Earnest private student loans aren’t available in all states and might be hard to qualify for on your own.

Read on for our Earnest private student loans review, including rates, terms and what to expect when applying.

Earnest

• Fixed interest rates starting at 3.47% APR
• Variable interest rates starting at 4.99% APR

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Earnest private student loans review

Earnest private student loans are available to undergraduate and graduate students with or without a cosigner.

Here’s a breakdown of its private student loan product.

Pros of Earnest private student loans

• Rate match. Earnest will match competitor's interest rates while still offering additional discounts such as auto-pay interest savings.
• Flexible in-school repayment options. Choose from $25 fixed monthly payments, interest-only payments, deferred payment until after graduation, or interest and principal payments.
• Customized repayment options. Choose to pay monthly or every two weeks.
• Extended grace period. Earnest provides up to nine months of deferment after graduation, if eligible.
• Forbearance is available. Borrowers are eligible for up to 12 months of forbearancefor verifiable hardship (e.g. unpaid maternity leave, involuntary loss of employment, decrease in income, etc.).
• Option to skip a payment. Eligible borrowers may skip one payment every 12 months, but each instance counts toward your overall forbearance limit.
• Deferment options might be available. You might be able to postpone payments if you’re enrolling in grad school or you’re active duty military personnel serving during a war, military operation or national emergency.
• No fees. This includes no origination, late payment, prepayment or returned payment charges.
• Autopay discount. Earnest offers a 0.25% interest rate discount for making automatic payments. But it can’t be combined with certain repayment programs that already offer a rate reduction.
• Full loan discharge. This is available if you become totally and permanently disabled or pass away.

Cons of Earnest

• No cosigner release available. However, you have the option to refinance with Earnest later down the road, which automatically releases your cosigner.
• Can’t preview your rates without a hard credit check. Unlike with Earnest’s refinancing loan, you’ll have to complete the full application to receive your rate.
• Eligibility may depend on your state residence. Earnest private student loans aren’t available to residents of Nevada. Both the primary borrower and cosigner must live in an eligible state.
• Requires full-time enrollment. Exceptions are made for college seniors and graduate students who are enrolled at least half-time.

Earnest private student loans eligibility requirements

To be eligible for an Earnest private student loan, you must:

• Be a U.S. Citizen or possess a Permanent Resident Card (or have a cosigner who meets this requirement).
• Live in the District of Columbia or in an eligible state (all but Nevada). You’ll also need to be the age of majority as defined by your state.
• Be enrolled full-time as a freshman, sophomore, or junior at a four-year, Title IV-qualified school. Seniors and grad students must be enrolled at least half-time.
• Have a FICO score of 650 or more and at least three years of credit history. If applying with a cosigner, only the cosigner must meet this requirement.
• Have an annual income of $35,000 or more (or have a cosigner who meets this requirement).

Application process: What to expect

Earnest doesn’t have a prequalifying tool for its private student loans. So, you’ll have to complete a full application online to receive an interest rate offer based on your creditworthiness.

Because Earnest’s private student loans have rigid financial requirements, it encourages borrowers to apply with a cosigner. Earnest states that having a cosigner can increase your chance of approval by six times. And it might provide you with access to lower rates.

Earnest’s application process takes less than 10 minutes to complete. You’ll need to provide personal, professional and financial information, such as:

• Your address, birthday, social security number and academic progress.
• Relevant employment information (e.g. employer name, salary, estimated future earnings, etc.)
• Requested loan amount.

If prompted, you might need to submit supporting financial documentation, like a recent pay stub or a recent monthly statement to verify a brokerage account. But you won’t need to do so with the initial application.

Once you’ve submitted your application, you should receive a response within 72 hours.

Are Earnest private student loans right for you?

We always recommend exhausting all opportunities for federal financial aid (e.g. grants, scholarships and federal student loans) before turning to private student loans.

Private student loans typically have higher interest rates and fewer borrower protections in place. But, depending on your financial situation, you might need to use private loans to fill any remaining funding gaps.

Earnest private student loans can be a good fit if you prioritize repayment flexibility both in-school and after graduation. It might be a good option, if you think you’ll benefit from unique perks, like being able to skip a payment every 12 months.

As a company, Earnest has a solid reputation for its application process, customer service and competitive rates. And unlike other private lenders that partner with a third-party for loan servicing, Earnest functions as both the lender and loan servicer. So, you’ll have continuity throughout your repayment journey.

Shop around with at least three lenders to find the best rates and terms for your private student loans. If you decide to use Earnest, you might receive a cash-back bonus through Student Loan Planner®.