LendKey Snapshot
LendKey offers both private student loans and student loan refinancing. By connecting borrowers with a network of 100+ lesser-known credit unions and community banks, LendKey allows you to work with smaller lenders with low rates and good customer service, rather than traditional lending institutions. LendKey’s student loan offering is available to undergraduate and graduate students. It’s best if you have strong credit and want generous cosigner release and forbearance policies.
Fixed APR Range: 4.39% to 11.11%
Variable APR Range: 5.84% to 11.11%
Loan Amounts: $1,000 up to the total cost of attendance, minus other aid received
Minimum Credit Score: 660
| Best Features | Drawbacks |
| • Work with a credit union or community bank, rather than a traditional lender • Access to competitive interest rates • Good grades could lower your rate • Offers up to 18 months of forbearance • Free borrower benefits like Career Assistance, Credit Health Analysis, and Federal Student Loan Assistance | • Eligibility criteria excludes part-time students, parents, and non-U.S. citizens/permanent residents • You can’t see if you’ll qualify and at what rate without a hard credit check • Varying cosigner release policies • Biweekly payment via autopay is not available • Limited repayment options • You may have to become a member of a credit union |
What’s Inside
- Interest Rates, Fees, and Terms
- Eligibility Requirements – Financial
- Eligibility Requirements – Personal
- Repayment Options
- Customer Service
- FAQ
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Best Features of LendKey Student Loans
Work with credit unions and community banks
LendKey allows you to access loan offers from a network of non-traditional lenders that you otherwise might have overlooked. On its platform, LendKey connects you with hundreds of community banks and credit unions simultaneously. While the credit unions and community banks don’t have the name recognition that some of the traditional banks and online lenders have, they typically offer lower rates and personalized customer service. In addition, the credit unions and community banks are often non-profits, so you’ll be working with a lender that has your best interest in mind.
Competitive interest rates and zero fees for qualified borrowers
When looking for a student loan, finding a low-interest rate is typically a top priority. If you qualify for a LendKey student loan, you’ll have access to competitive interest rates from credit unions and community banks that you might not be able to find elsewhere. While most of the lenders on LendKey’s platform do not charge any origination fees, application fees, or prepayment penalties, some may charge late fees, or insufficient funds fees. The terms will vary depending on which lender you choose, so be sure to read the terms and conditions of your loan carefully.
>> MORE: What is the average student loan interest rate?
| Undergraduate and Graduate Students | |
| Fixed APR* | 4.39% to 11.11% |
| Variable APR* | 5.84% to 11.11% |
Good grades could lower your rate
LendKey has developed the Academic Credit Score, a proprietary scoring model that assesses your creditworthiness by looking at standard metrics (you and your cosigner’s credit score) as well as non-traditional metrics such as your GPA and major. This allows LendKey to get a holistic understanding of who you are as a borrower and as a student. It also rewards you for your hard work in the classroom through lower rates on your student loan, and a lower rate could mean substantial savings over the lifetime of your loan.
Offers up to 18 months of forbearance due to economic hardship or natural disaster
If you experience economic hardship or a natural disaster, LendKey offers generous forbearance options (a pause on your repayment due to financial hardship, unemployment, or a disability).
LendKey offers up to 18 months of forbearance, in six-month increments. While LendKey handles forbearance on a case-by-case basis, it can be a helpful safety net if you were to fall into financial hardship.
>> MORE: Student loan forbearance: what is it & how to get it
Free borrower benefits like Career Assistance, Credit Health Analysis, and Federal Student Loan Assistance
When you borrow through LendKey’s platform, you’ll get free access to special borrower benefits that help you achieve your financial and personal goals. These benefits include:
Career Assistance: LendKey partners with NextJob to offer free tools and online resources to help you succeed, including:
- Online mock interviews
- A resume builder
- Hidden job opportunities waiting to be uncovered
- A personality test to help you find the right career path
Credit Health Analysis: To help you reach your financial goals, LendKey has partnered with Curu, a platform that provides comprehensive credit analysis designed to help you improve your credit health.
- Curu analyzes your spending, net worth, and credit utilization to generate personalized tasks that show your path to credit success.
- Curu displays your real-time financial account information all in one place so you always know where you stand.
- Curu sends you notifications for upcoming credit card payment due dates so you’ll never miss a payment again.
>> MORE: Compare LendKey student loan rates to other qualified lenders
Federal Student Loan Assistance: LendKey partners with Savi to provide an online, concierge service that searches across 150+ federal loan forgiveness and repayment options and recommends a path forward based on a borrower’s unique financial situation and goals. Savi then automates and digitizes the application process to reduce mistakes, simplify the process, and save time.
- Access a free, instant estimate of monthly savings
- Detect eligibility & simplify enrollment for national and state repayment and forgiveness programs
- Receive 1:1 support as needed from a team of student loan experts
Drawbacks of LendKey Student Loans
Strict eligibility criteria
In order to qualify for a private student loan through LendKey, borrowers must meet the following criteria:
- A U.S. citizen or permanent resident
- At least the age of majority in your state (typically 18 to 21)
- Enrolled at least half-time in a degree-granting program
- 3 years of credit history
- An annual income of $24,000-plus
LendKey’s strict eligibility criteria excludes part-time students, parents, non-U.S. citizens/permanent residents, and those who don’t meet the credit or income requirements.
If you do not meet LendKey’s criteria for a student loan, you may want to look to different lenders for your private student loan.
>> MORE: See which student loans you qualify for
Not a U.S. citizen or permanent resident? MPOWER and Prodigy Finance offer private student loans to international students. In addition, Earnest, College Ave, and Ascent all offer private student loans to international students who have a U.S. citizen as a cosigner.
Don’t have 3 years of credit history? Ascent and Funding U offer future income-based loans that don’t have a credit requirement.
Don’t have an annual income of $24,000? Ascent and Funding U offer future income-based loans that don’t have an income requirement.
>> MORE: How and where to get student loans for bad credit
You can’t see if you’ll qualify and at what rate without a hard credit check
Unlike many other online lenders, LendKey does not allow you to qualify and receive rate estimates without undergoing a hard credit check. This means you will have to undergo a hard credit check, which temporarily hurts your credit, in order to see if you qualify and at what rate.
If you want to see if you qualify and at what rate with over 17 different lenders, try our 2-minute form. It’s quick, easy, and does not impact your credit score.
Varying cosigner release policies
Most private student lenders require or strongly encourage you to apply with a cosigner. Given that young people generally have no/limited credit history, a cosigner can help you qualify for better loan terms.
If you earn less than $24,000 per year or have fewer than 36 months of credit history, a cosigner is required in order to borrow from LendKey.
Unfortunately, it’s not clear how quickly you can release your cosigner from your LendKey loan. Since LendKey partners with credit unions and community banks (each of which have their own internal policies), you will want to check with your specific lender to confirm their cosigner release policy.
>> MORE: What is a cosigner release policy? How can it protect you?
No biweekly payment via autopay
When you repay your student loan, your payments are due monthly by default. Instead, some borrowers choose to make biweekly payments via autopay — where you automatically pay half your monthly amount once every two weeks. Many borrowers use biweekly autopay in an effort to pay off their student debt faster and pay less in interest over the lifetime of the loan.
Unfortunately, when you borrow through LendKey, you don’t have the option to make biweekly payments via autopay.
You do, however, have the option to make greater-than-minimum payments via autopay. This means you have the option to pay more than your monthly balance in order to reduce the interest that accrues over time. With LendKey, you can set this up automatically so that the desired monthly payment is drawn from your bank account at the end of each month.
>> MORE: How to save thousands on student loans with autopay
Limited repayment options
LendKey only offers two repayment options on its private student loans, both of which require you to make in-school payments. Compared to other online lenders that offer up to four repayment options, LendKey’s repayment options may seem limited. With that said, if you’re able to make in-school payments, it’s the best way to reduce interest and minimize the amount of debt you owe.
Check out the table below to understand the difference between LendKey’s student loan repayment options: 1.) Flat-fee repayment and 2.) Interest-only repayment.
>> MORE: how to compare student loan repayment options
| Repayment Option | Terms | Pros | Cons |
| Flat Fee Repayment | Pay a flat fee of $25 a month while you’re in school for up to 60 months. Full payments are due after that point. | You can keep your loan balance in check, and reduce the total amount repaid. | You’ll still owe more than you borrowed when you graduate, but your loan balance won’t grow as quickly. |
| Interest-Only Repayment | Pay only interest while you’re in school. With this option, there is a maximum of 60 months of payments (5 years). | Your monthly payments will be more manageable, and your loan balance won’t grow while you’re in school. | You won’t make any progress paying down your loan balance while you’re a student. But at least you won’t owe more than you borrowed when it’s time to start making full payments. If you plan to take more than 60 months to complete your program, you will have to make full payments after the first 60 months. |
You may have to become a member of a credit union
One of the major advantages of borrowing through LendKey is that the platform allows you to access loan offers from a network of non-traditional lenders (credit unions and community banks) that you otherwise might have overlooked.
Unfortunately, that also means you may have to become a member of the institution you borrow from, which typically costs around $5. Although the process of becoming a member of a credit union is relatively simple, it adds another step to the borrowing process that traditional banks and online lenders don’t require.
>> MORE: Compare LendKey student loans to other qualified lenders
LendKey Student Loans: The Nuts and Bolts
Interest Rates, Fees, and Terms
| Fixed APR Range | 4.39% to 11.11% |
| Variable APR Range | 5.84% to 11.11% |
| Loan Terms | 5, 10, or 15 years. |
| Loan Amounts | $1,000 up to the total cost of attendance, minus other aid received. |
| Application or Origination Fee | No. |
| Prepayment Penalty | No. |
| Late Fees | Yes (If payment is not made within 15 days of the due date, the late fee is $5 to $10, depending on the lender). |
Eligibility Requirements – Financial
| Minimum Credit Score | 660. |
| Minimum Income | 24,000 per year. |
| Typical Credit Score of Approved Borrowers or Cosigners | 689. |
| Typical Income of Approved Borrower | $32,000. |
| Typical Income of Approved Cosigner | $85,000. |
| Maximum Debt-to-Income Ratio | 33%, not including housing costs. |
| Ability to qualify if you’ve filed for bankruptcy | Yes, after five years. |
Eligibility Requirements – Personal
| Citizenship | Borrowers must be U.S. citizens or permanent residents |
| Location | Available to borrowers in all 50 states. |
| Must be enrolled half-time or more | Yes. |
| School requirements | Any school authorized to receive federal aid. |
| Percentage of borrowers who have a cosigner | 90%+. |
Repayment Options
| In-school Repayment Options | Flat-fee repayment: Pay a flat fee of $25 per month while you’re in school for up to 60 months. Full payments are due after that point. Interest-only repayment: Only pay interest while you’re in school for up to 60 months. Full payments are due after that point. |
| Grace Period | 6 months. |
| In-school Deferment | No. |
| Military Deferment | No. |
| Disability Deferment | Did not disclose. |
| Forbearance | Yes, hardship and natural disaster forbearance for up to 18 months, in six month increments. |
| Cosigner Release | Yes (requires 24 months of timely repayments). Death or disability discharge: Not guaranteed by the loan agreement, but common practice, according to LendKey. |
| Death or Disability Discharge | Did not disclose. |
| Loan discharge if cosigner dies or becomes disabled | No. |
| Autopay | Allows for surplus payments via autopay: Yes. Allows for biweekly payments via autopay: No. |
Customer Service
| Loan Servicer | LendKey. |
| In-house Customer Service Team | Yes. |
| Process for Escalating Concerns | No. |
| Borrowers get assigned a personal customer service representative | No. |
| Average time from application to approval | Immediate. |
Before you take out a loan from LendKey…
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FAQ
Is LendKey a legitimate lender?
Yes, LendKey is legitimate. The platform connects borrowers with credit unions and community banks offering private student loans to undergraduates, graduate students, and parents, as well as student loan refinancing. Since its founding in 2009, LendKey has helped fund $3.1 billion in loans for 99,000-plus borrowers — it also services more than $2 billion worth of student loans.
Is LendKey available in all 50 states?
LendKey is available to borrowers in all 50 states.
How long does it take to get a LendKey student loan?
Submitting an application through LendKey takes a few minutes. Once you’ve submitted your loan application, LendKey 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 to actually receive your loan. Your school must approve the loan which may take between four to six weeks.
What happens if I don’t qualify for a LendKey student loan?
If you don’t qualify for a LendKey student loan, the company will inform you why. Depending on the reason, you may consider applying with a qualified cosigner or trying 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 ready to help you. And best of all, it won’t impact your credit score.
Are LendKey student loans federal or private?
LendKey’s student loans are private. Before you take out a private student loan, we recommend that you exhaust your federal funding options, including grants and scholarships.
Does applying for a loan through LendKey hurt my credit score?
Yes. In order to check your eligibility and receive your rate, LendKey will conduct a hard credit check. A hard credit check may temporarily impact your credit score.
>> MORE: Check your loan rates without hurting your credit
See LendKey’s disclosures here.
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