Edly Private Student Loans: 2025 Review

Edly IBR Student Loan, funded by FinWise Bank, Member FDIC Snapshot

Edly Income-Based Repayment (IBR) Student Loans, originated by Edly’s lending bank FinWise Bank, Member FDIC, provide an alternative loan option for students. Degree-seeking students at an Edly-supported school currently have two loan options: the Edly IBR No Cosigner Student Loan (for university students without a cosigner) and the Edly IBR Cosigned Student Loan (for university students with a cosigner).

Students who are approved for an IBR No Cosigner Student Loan will not have to make payments while in school (borrowers with the IBR Cosigned Student Loan make modest in-school payments). After graduation, borrowers with either loan make payments based on their income. Due to the structure of IBR student loans, borrowers have a variety of benefits when it comes to repayment. An IBR Student Loan is best if you are seeking a loan option with no cosigner (the IBR No Cosigner Student Loan) and want competitive repayment terms and flexible repayment options.

APR: Borrowers will never pay more than 2.25x their borrowed amount (with the IBR No Cosigner Student Loan) or 2.5x their borrowed amount (with the IBR Cosigned Student Loan), which translates to a maximum 23% APR.

Loan Amounts: $5,000 to $15,000 per academic year, $ 25,000-lifetime maximum.

Minimum Credit Score: Yes, student borrowers without a credit score may also be considered and student borrowers must meet credit and underwriting requirements upon release of the cosigner

Best Features

Drawbacks

• Competitive repayment terms and few fees
• Cap on how much you must repay
• Hardship forbearance is available if you don’t meet the $30,000 annual gross income minimum threshold following graduation (interest will continue to accrue during the forbearance period)
• Two product types available depending upon the borrower’s needs (a No-Cosigner IBR Loan and a Cosigner IBR loan)
• No minimum credit score for student borrowers applying for the Cosigned product. Credit and underwriting requirements apply for both products

• Doesn’t offer a repayment term longer than 12 years
• Hard to predict upfront how much you’ll owe over the life of the loan
• Fewer schools are eligible for an Edly IBR Student Loan than traditional student loans

Compare Edly’s Rates:

Rather than searching for lenders one-by-one, we recommend comparing Edly’s rates with a student loan search tool. With the free Sparrow application, you can see the rates and terms you’d qualify for with 17+ premier lenders.

Here are Edly’s rates in comparison to other top lenders:

Best Features of an IBR Student Loan

Competitive effective annual percentage rates and few fees

The effective APR on an IBR student loan is based on your income after graduation. Depending on your income, you can score a pretty competitive effective annual percentage rate. Additionally, you won’t have to pay any origination, application, or prepayment fees. IBR student loans do have late fees, however.

Cap on how much you must repay

While IBR student loans can vary in terms of effective APR, you can rest assured knowing that there is a cap on how much you can owe. You will never have to pay back more than 2.25x what you borrowed (with an IBR No Cosigner Student Loan) or 2.5x (with an IBR Cosigned Student Loan) what you borrowed.

Hardship forbearance is available if you don’t earn above a minimum income threshold

While Edly’s 34-month post-graduation grace period (for the No Cosigner Student Loan) is shorter than the standard 6-month grace period on traditional student loans, you won’t actually have to start post-graduation repayment of your loan unless you meet their minimum income threshold. If you are in this circumstance, you may apply for hardship forbearance and defer repayment, although interest on the loan will continue to accrue. Note that with the IBR Cosigned Student Loan, however, borrowers will make modest in-school payments in addition to the post-graduation payments noted above.

No cosigner required for IBR No Cosigner Student Loan

Edly’s flagship product, the Edly IBR No Cosigner Student Loan, is a great option if you do not have a cosigner available to you. While the approval rate for students without a cosigner is typically around 8.84%, according to a LendEDU study, if you apply for an IBR No Cosigner Student Loan, your chances of approval are significantly higher. For borrowers who don’t qualify on their own or who want the flexibility of an IBR loan with the comfort of a cosigner, they may apply for the IBR Cosigned Student Loan.

Minimum credit score for student borrowers

IBR Student Loans do require the student borrower to have a minimum credit score to qualify for the IBR No Cosigner Student Loan but student borrowers without a credit score may still be considered. This makes the Edly IBR No Cosigner Student Loan a great option if you have no credit or no access to a creditworthy cosigner. If the student borrower does have a credit score, a minimum requirement will apply. Note that if you choose to apply with a cosigner for the Edly IBR Cosigned Student Loan, your cosigner will need to meet credit and underwriting requirements (credit is not run on student borrowers for the Edly IBR Cosigned Student Loan until they apply for the cosigner to be released).

Drawbacks of IBR Student Loans

Doesn’t offer a maximum repayment term longer than 12 years

Unlike several other lenders, Edly does not offer a maximum repayment term longer than 12 years. While their 7-12 year repayment term offerings provide a decent variety of options, longer terms would be beneficial to borrowers looking to pay their loans off a longer period of time.

Hard to predict upfront how much you’ll owe over the life of the loan

Due to the nature of an income-based repayment loan, it’s hard to predict what your payments will be, and thus, how much you’ll pay by the end of your repayment term. When taking out a traditional student loan with a fixed interest rate, you can easily calculate how much you’ll end up paying overall. With an IBR loan, however, you cannot predict this in the same way.

Fewer schools are eligible for an Edly IBR Student Loan than traditional student loans

While most traditional student lenders work with a wide array of schools, Edly is much more selective about who they work with. Edly only works with schools and programs that they believe will give students the best chance for future success. Edly uses a variety of factors when determining which programs are eligible, such as performance statistics like graduation rates, placement rates, and certification exam pass rates. Due to Edly’s strict program eligibility criteria, your school may not be eligible to receive an Edly IBR Student Loan. Currently, Edly supports over 1,700 schools and programs. To see if your school is eligible, complete Sparrow’s 2-minute application.

Edly IBR Student Loans: The Nuts and Bolts

Interest Rates, Fees, and Terms

Effective APR	Variable based on borrowers’ projected income and IBR rate, but typically 9.4-23%.
Loan Terms	7-12 years (12-year maximum repayment window).
Loan Amounts	$5,000 to $15,000 per academic year, $25,000 lifetime.
Application or Origination Fee	None.
Prepayment Penalty	None.
Late Fees	The lesser of $25 or 6% of the past due amount.

Eligibility Requirements – Financial

Minimum Credit Score	580 or no score for student borrowers on the IBR Non-Cosigned Student Loan. No minimum for student borrower on the IBR Cosigned Student Loan.
Minimum Income	No set minumum.
Minimum Credit Score of Approved Cosigners	600
Typical Income of Approved Student to Release the Cosigner	$30,000
Maximum Debt-to-Income Ratio	25%
Ability to qualify if you’ve filed for bankruptcy	No

Eligibility Requirements – Personal

Citizenship	Must be a U.S. citizen or permanent resident.
Location	Not available to residents of Colorado, Maine, Vermont, Iowa, and West Virginia.
Must be enrolled half-time or more	Yes.
School requirements	Must meet Satisfactory Academic Progress (SAP) requirements.
Percentage of borrowers who have a cosigner	Undisclosed.

Repayment Options

In-school repayment options	No in-school repayment for an IBR No Cosigner Student Loan; borrowers with an Edly IBR Cosigned Student Loan make modest, monthly in-school payments.
Grace period	Post-graduation repayment begins 4 months after graduation for an IBR No Cosigner Student Loan.
In-school Deferment	Yes (for an IBR No Cosigner Student Loan).
Military Deferment	Yes.
Disability Deferment	Yes.
Forbearance	Borrowers may apply for hardship forbearance.
Cosigner Release	After six successive in-full, on-time post- graduation payments, student borrowers will need to submit an application to release the cosigner; meet minimum credit requirement, and is subject to credit evaluation and worthiness.
Death or Disability Discharge	Yes.
Loan discharge if cosigner dies or becomes disabled	N/A.
Autopay	Allows for surplus payments via autopay: Yes. Allows for biweekly payments via autopay: No.

Customer Service

Loan Servicer	Firstmark/Nelnet.
In-house Customer Service Team	Yes.
Process for Escalating Concerns	Yes.
Borrowers get assigned a personal customer service representative	No.
Average time from application to approval	3 minutes.

Before you take out an IBR Student Loan…

Complete the Sparrow application to compare real rates from more than 15 different lenders to make sure you’re getting the best rate possible.

See real rates, not rate ranges or estimates: Sparrow’s rates mimic those of our lenders so you know what rate you’re getting from each lender.

No impact on your credit score: Checking your rates on Sparrow won’t impact your credit score.

Data Privacy: Sparrow doesn’t sell your information, so don’t worry about getting calls from that random number that won’t leave you alone.

FAQ

Are IBR Student Loans legitimate?

Yes, IBR Student Loans are legitimate. Edly IBR Student Loans are offered through FinWise Bank, an FDIC-insured bank. Since its founding in 2019, Edly has provided an alternative method of college funding to students.

Are IBR Student Loans available in all 50 states?

IBR Student Loans are not available to residents of Colorado, Maine, Vermont, Iowa, and West Virginia.

How long does it take to get an IBR Student Loan?

Submitting an application through Edly takes a few minutes. Once you’ve submitted your loan application, Edly will instantaneously return a decision about your eligibility. If you qualify, you will receive the rate and terms of your loan.

It may take some time for your educational institution to receive your tuition. Your school must approve
the loan which may take between four to six weeks. Upon certification, the funds are sent directly to
your school.

What happens if I don’t qualify for an IBR Student Loan?

If you don’t qualify for an IBR student loan, the company will inform you why and may offer you the option to add a cosigner. Depending on the reason, you may also consider applying with a different lender. To check your rates across multiple lenders at once, try using Sparrow’s free search engine. In just two minutes, you can receive real, personalized offers from over 15 different lenders all ready to support you.

Is an IBR Student Loan federal or private?

IBR Student Loans are private student loans. Before you take on a private loan, we recommend that you exhaust your federal funding options, including grants and scholarships.

Does applying for a loan through Edly hurt my credit score?

In order to estimate what rate you qualify for, Edly conducts a soft credit check — this does not affect your credit score. If you choose to accept the terms offered by Edly, the company will conduct a hard credit check to verify your information. A hard credit check may impact your credit score.

Product Disclosure: Loan Application and Solicitation Disclosure