ISL Education Lending Student Loan Refinancing: 2024 Review

ISL Education Lending Snapshot

ISL Education Lending is a nonprofit student loan lender offering both private student loans and student loan refinancing. ISL Education Lending refinance loans are best for borrowers who want to work with a nonprofit lender, want competitive interest rates, on-site loan servicing, or want to refinance without having a degree.

Fixed APR Range: 6.94% to 11.83%

Variable APR Range: N/A

Loan Amounts: $5,000 ($10,000 for California residents) to $300,000

Minimum Credit Score: 670

Best Features	Drawbacks
• Competitive interest rates and zero fees • You can refinance without a degree • Cosigner release option after 24 months	• Only one loan repayment term for in-school refinancing • Students cannot take over parent PLUS loans that parents took out on their behalf • No biweekly payment via autopay

Best Features of Refinancing with ISL Education Lending

Competitive interest rates and zero fees

When looking for a student loan, finding a low-interest rate is typically a top priority. If you qualify for an ISL refinance loan, you’ll have access to competitive interest rates, and won’t have to pay origination fees, application fees, or prepayment penalties.

You can refinance while in school and without a degree

While most lenders require you to have graduated in order to refinance, ISL allows you to refinance in school or without a degree.

Cosigner release option after 24 months

If you need a cosigner for your refinance loan, ISL might be a good option for you. Unlike several other lenders, ISL allows you to release your cosigner after the first 24 months of consecutive timely payments and meeting the underwriting and credit criteria at the time the cosigner release is requested. This can be helpful if you want to build credit in your own name.

Drawbacks of Refinancing with ISL Education Lending

Only one loan repayment term for in-school refinancing

While very few lenders offer refinancing while still enrolled, if you refinance with ISL while still in school, you will only have a 15-year repayment term.

Students cannot take over parent PLUS loans that parents took out on their behalf

If your parent has taken out a Parent PLUS loan or a private student loan in their name, some lenders give your parent the option to transfer the loan to your name (so long as you are the primary applicant). Unfortunately, ISL does not allow students to refinance parent PLUS loans in the student’s name.

If you are a parent who took out a parent PLUS loan, you can still refinance that loan through ISL — it will just be in your name, not the student’s name. However, you can request your student to be a cosigner on the loan.

If you’re looking for a lender that does allow you to transfer parent PLUS loans to the student, you may want to consider another lender.

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 refinance through ISL, 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 ISL, you can set this up automatically so that the desired monthly payment is drawn from your bank account each month.

ISL Education Lending: The Nuts and Bolts

Interest Rates, Fees, and Terms

Fixed APR Range	6.94% to 11.83%
Variable APR Range	N/A
Loan Terms	5, 7, 10, 15, or 20 years.
Loan Amounts	$5,000 ($10,000 for California residents) up to $300,000.
Ability to transfer a parent loan to the student	No.
Application or Origination Fee	No.
Prepayment Penalty	No.
Late Fees	No.

Eligibility Requirements – Financial

Minimum Credit Score	670.
Minimum Income	N/A – No income requirement.
Typical Credit Score of Approved Borrowers or Cosigners	750; 760 for cosigners.
Typical Income of Approved Borrower	N/A – No income requirement.
Maximum Debt-to-Income Ratio	40%. Can be 45% for those with a mortgage making a combined income of >$100,000, or 25% if no mortgage or rent is included.
Ability to qualify if you’ve filed for bankruptcy	Yes, after 7 years have passed.

Eligibility Requirements – Personal

Citizenship	Must be a U.S. citizen or permanent resident.
Location	Available to borrowers in all 50 states except Maine and Oregon.
Must have graduated	No.
Must have attended a school authorized to receive federal aid	No.
Percentage of borrowers who have a cosigner	Around 37%.

Repayment Options

Academic Deferment	Yes, borrowers are eligible for up to 24 months of general deferment which can be used for academic purposes. There is no specific academic deferment.
Military Deferment	Yes.
Disability Deferment	Did not disclose.
Forbearance	No.
Cosigner Release	Yes, after the first 24 months of consecutive on-time payments if underwriting and credit criteria is met.
Death or Disability Discharge	Yes, the loan will be forgiven if the borrower dies or becomes permanently disabled, even if the loan is cosigned.
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	Aspire Servicing Center.
In-house Customer Service Team	Yes.
Process for Escalating Concerns	Yes.
Borrowers get assigned a personal customer service representative	No.
Average time from approval to payoff	5-7 days.

Before you take out a loan from ISL Education Lending…

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.

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FAQ

Is ISL Education Lending a legitimate lender?

Yes, ISL is a nonprofit student lender that offers both student loan refinancing and private student loans.

Is ISL Education Lending available in all 50 states?

No, ISL is not available in Maine or Oregon.

How long does it take to get an ISL Education Lending refinance loan?

Submitting an application through ISL takes a few minutes. Once you’ve submitted your loan application and submitted documents for underwriting purposes, ISL will review and return a decision, typically in one day. If you qualify, you will receive the rate and terms of your loan as soon as ISL pulls your credit. You will not need to wait until after documentation has been submitted to receive your rate.

It may take some time to actually receive your loan. You can speed up the process by requesting debt payoff letters from your existing lenders and loan servicers.

What happens if I don’t qualify for an ISL Education Lending refinance loan?

If you don’t qualify for an ISL Education Lending refinance 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 ISL Education Lending refinance loans federal or private?

ISL loans are private loans. Before you take on a private loan, we recommend that you exhaust your federal loan options. If you are refinancing federal student loans, you may be forfeiting important benefits. Be sure to understand what federal loan benefits you may lose before you choose to refinance federal student loans.

Does applying for a loan through ISL Education Lending hurt my credit score?

In order to estimate what rate you qualify for, ISL conducts a soft credit check, which does not affect your credit score. If you choose to move forward and apply for the ISL loan, the company will conduct a hard credit check to verify your information. A hard credit check may temporarily impact your credit score.

See ISL Education Lending’s disclosures here.