Earnest Snapshot
Earnest offers both private student loans and student loan refinancing.1 Earnest’s student loans are available to undergraduate, graduate, and professional students. It is best if you are seeking competitive interest rates, unique borrower perks, and flexible repayment options that allow you to find a loan that matches your budget.
Fixed APR Range: 4.42% to 15.90%* (undergrad; includes 0.25% auto pay discount); 4.42% to 14.30%* (grad; includes 0.25% auto pay discount)
Variable APR Range: 5.62% to 16.20%* (undergrad; includes 0.25% auto pay discount); 5.89% to 14.97%* (grad; includes 0.25% auto pay discount)
Loan Amounts: $1,000 up to the total cost of attendance
Minimum Credit Score: 650
| Best Features | Drawbacks |
| • Competitive interest rates • Flexible repayment options • Wide range of loan terms to match your budget • Nine-month grace period3 • Option to skip 1 monthly payment per year4 • Allows biweekly payments via autopay5 | • Loans aren’t available to borrowers in Nevada • Students enrolled less than half-time are not eligible • No cosigner release |
What’s Inside
- Interest Rates, Fees, and Terms
- Eligibility Requirements – Financial
- Eligibility Requirements – Personal
- Repayment Options
- Customer Service
- FAQ
Best Features of Earnest Student Loans
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 an Earnest student loan, you’ll have access to some of the best rates in the industry. Earnest’s variable and fixed interest rates are typically lower than competing student lenders. In addition, you won’t have to pay origination fees, application fees, prepayment penalties, late fees, or insufficient funds fees.
| Undergraduate | Graduate, MBA, Law and Medical Students | |
| Fixed APR* | 4.42% to 15.90%* | 4.42% to 14.30%* |
| Variable APR* | 5.62% to 16.20%* | 5.89% to 15.97%* |
Variety of in-school repayment options
Earnest offers you four repayment options for your student loans.6
If possible, it’s beneficial to make in-school loan payments in order to reduce the amount of interest you pay over time.
| Repayment Option | Terms | Pros | Cons |
| Immediate Repayment | Make full payments as soon as the loan is disbursed, while you’re still in school. | You will minimize the interest you pay, resulting in the greatest savings. Because you’re paying down both interest and principal while you’re still in school, you’ll already have made a good start on repaying your loan by the time you graduate. | For many students, it’s not realistic to make full monthly payments while still enrolled in college. |
| Interest-Only Repayment | Pay only interest while you’re in school. | 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. |
| Partial Repayment | Pay $25 per month while you’re in school to reduce accrued interest. | 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. |
| Deferred Repayment | Don’t make any payments while you’re in school. Begin repayment after graduation or 6 months after graduation. | You won’t have to make payments while you’re in school. | You will likely pay the highest overall cost since unpaid interest will be added to your principal amount at the end of your grace period. |
Note: Parents borrowing on behalf of students are limited to interest only and immediate repayment options.
Wide range of loan terms to match your budget
Earnest offers a wide range of loan terms to reduce the burden of your student debt. If you have a cosigner, you can choose a loan term of 5, 7, 10, 12, or 15 years. If you don’t have a cosigner, you’ll have to choose between a 10, 12 or 15-year loan term, unless you are a graduate student. In that case, you may be considered for 5, 7, 10, 12, and 15 year loan terms.6
Offers a nine-month grace period3
After you are no longer in school at least halftime – because you’ve graduated, left school, or dropped below half-time enrollment – you have a grace period before you begin making full principal and interest monthly payments. While most lenders offer a six-month grace period, some require immediate repayment.
Earnest, on the other hand, offers a nine-month grace period on its student loans. This can be a massive benefit if you need some extra time to find a job and stabilize your income.
Be careful though – interest starts to accrue as soon as the loan is disbursed so delaying your payments means you’ll be paying more interest over the lifetime of your loan.
Option to skip one monthly payment every year4
Earnest is the only lender that allows you to skip one monthly payment on your student loan every year. This can be incredibly helpful if you lose your job or face an unexpected expense.
In order to qualify, you must:
- Make the request at least five business days before the payment is due.
- Make the request after six months of timely payments of both interest and principal.
While this feature can be extremely helpful when life hits a bump in the road, do note that the principal and interest from that payment will be spread out across your remaining payments, resulting in increased monthly payments.
Allows biweekly payment via autopay
When you repay your student loan, your payments are due monthly by default. Instead, Earnest gives you the option 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.
In addition to offering biweekly payments via autopay, Earnest gives you 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 Earnest, you can set this up automatically so that the desired monthly payment is drawn from your bank account at the end of each month.
Drawbacks of Earnest Student Loans
Loans aren’t available to borrowers in Nevada
If you live in Nevada, you’ll have to consider other lenders for your private student loan. A variety of lenders offer private student loans to borrowers in Nevada, such as College Ave, Ascent, and more.
Students enrolled less than half-time are not eligible
If you are not enrolled in school at least half-time, you are ineligible for student loans through Earnest. If you’re studying less than half-time, you may want to consider another lender for your private student loan.
No cosigner release
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.
Many private student lenders allow you to release your cosigner after a few years of timely payments (typically 1-2 years). This essentially means that the cosigner is no longer liable for repaying the loan in the event that you (the borrower) are unable to make payments.
While becoming a cosigner can be daunting, the cosigner release policy is meant to ease the burden and make it less risky. Unfortunately, Earnest does not offer any form of cosigner release. Instead, you will have to apply to refinance your student loan, which is only available once you’ve graduated.
Earnest: The Nuts and Bolts
Interest Rates, Fees, and Terms
| Fixed APR Range | 4.42% to 15.90%* (undergrad); 4.42% to 14.30%* (grad) |
| Variable APR Range | 5.62% to 16.20%* (undergrad); 5.89% to 15.97%* (grad) |
| Loan Terms | For cosigned loans: 5, 7, 10, 12 or 15 years.6 For solo borrowers: 10, 12 or 15 years.6 For graduate students with non-cosigned loans, you may be considered for 5, 7, 10, 12, and 15-year loan terms.6 |
| Loan Amounts | $1,000 up to cost of attendance. |
| Application or Origination Fee | No. |
| Prepayment Penalty | No. |
| Late Fees | No. |
Eligibility Requirements – Financial
| Minimum Credit Score | 650. |
| Minimum Income | $35,000 for cosigned loans. |
| Typical Credit Score of Approved Borrowers or Cosigners | Did not disclose. |
| Typical Income of Approved Borrower | Did not disclose. |
| Maximum Debt-to-Income Ratio | 65%. |
| Ability to qualify if you’ve filed for bankruptcy | No. |
Eligibility Requirements – Personal
| Citizenship | Primary borrower must have a Social Security number. International students are eligible if applying with a cosigner who is a U.S. citizen or permanent resident. |
| Location | Not available to borrowers in Nevada. |
| Must be enrolled half-time or more | Yes. |
| School requirements | Any school authorized to receive federal aid. |
| Percentage of borrowers who have a cosigner | Did not disclose. |
Repayment Options
| In-school Repayment Options | Immediate repayment: Make full payments as soon as the loan is disbursed, while you’re in school. Interest-only repayment: Only pay interest while you’re in school. Fixed repayment: Pay $25 a month during school. Deferred repayment: Wait to make payments until you’re out of school. |
| Grace Period | 9 months. |
| In-school Deferment | Yes. |
| Military Deferment | Yes. |
| Internship, Residency, or Fellowship Deferment | Borrowers can defer payments for up to 48 months during a medical residency, internship, or fellowship program. |
| Forbearance | Up to 12 months available. |
| Cosigner Release | No. Borrowers may refinance with Earnest and release their cosigner. |
| Death or Disability Discharge | Yes, if the borrower dies or suffers a permanent disability. |
| Loan discharge if cosigner dies or becomes disabled | No. |
| Autopay | Allows for surplus payments via autopay: Yes. Allows for biweekly payments via autopay: Yes. |
Customer Service
| Loan Servicer | Earnest. |
| 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 | Online application: a few minutes. Approval: Varies by applicant. |
Before you take out a loan from Earnest…
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.
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FAQ
Is Earnest7 a legitimate lender?
Yes, Earnest is a legitimate lender that was founded in 2013 and has been providing private student loans since 2019.
Is Earnest available in all 50 states?
Earnest is available in all 50 states except Nevada.
How long does it take to get an Earnest student loan?
Submitting an application through Earnest takes a few minutes. Once you’ve submitted your loan application, Earnest will return a decision about your eligibility, but the exact timeline of this response varies by applicant. If you qualify, you will receive the rate and terms of your loan.
What happens if I don’t qualify for an Earnest student loan?
If you don’t qualify for an Earnest 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 Earnest student loans federal or private?
Earnest loans are private loans. Before you take on a private loan, we recommend that you exhaust your federal loan options.8
Does applying for a loan through Earnest hurt my credit score?
Applying for a loan through Earnest could hurt your credit score. Earnest has both eligibility check (hard credit check that may temporarily impact your credit score) and rate check (soft credit check, which will not impact your credit score).
Earnest Disclosures
1 Choosing to refinance to a longer term may lower your monthly payment, but increase the amount of interest you may pay. Choosing to refinance to a shorter term may increase your monthly payment, but lower the amount of interest you may pay. Review your loan documentation for total cost of your refinanced loan.
2 Actual rate and available repayment terms will vary based on your income. Fixed rates range from 4.67% APR to 16.15% APR (excludes 0.25% Auto Pay discount). Variable rates range from 5.87% APR to 16.35% APR (excludes 0.25% Auto Pay discount). Earnest variable interest rate student loan refinance loans are based on a publicly available index, the 30-day Average Secured Overnight Financing Rate (SOFR) published by the Federal Reserve Bank of New York. The variable rate is based on the rate published on the 25th day, or the next business day, of the preceding calendar month, rounded to the nearest hundredth of a percent. The rate will not increase more than once per month. Although the rate will vary after you are approved, it will never exceed 36% (the maximum allowable for this loan). Please note, Earnest Private Student Loans are not available in Nevada. Our lowest rates are only available for our most credit qualified borrowers and contain our .25% auto pay discount from a checking or savings account. It is important to note that the 0.25% Auto Pay discount is not available while loan payments are deferred.
3 Nine-month grace period is not available for borrowers who choose our Principal and Interest Repayment plan while in school.
4 Earnest clients may skip one payment every 12 months. Your first request to skip a payment can be made once you’ve made at least 6 months of consecutive on-time payments, and your loan is in good standing. The interest accrued during the skipped month will result in an increase in your remaining minimum payment. The final payoff date on your loan will be extended by the length of the skipped payment periods. Please be aware that a skipped payment does count toward the forbearance limits. Please note that skipping a payment is not guaranteed and is at Earnest’s discretion. Your monthly payment and total loan cost may increase as a result of postponing your payment and extending your term.
5 You can take advantage of the Auto Pay interest rate reduction by setting up and maintaining active and automatic ACH withdrawal of your loan payment from a checking or savings account. The interest rate reduction for Auto Pay will be available only while your loan is enrolled in Auto Pay. Interest rate incentives for utilizing Auto Pay may not be combined with certain private student loan repayment programs that also offer an interest rate reduction. For multi-party loans, only one party may enroll in Auto Pay. It is important to note that the 0.25% Auto Pay discount is not available while loan payments are deferred.
6 Earnest’s Loan Cost Examples: These examples provide estimates based on principal and Interest payments beginning immediately upon loan disbursement. Variable APR: A $10,000 loan with a 15-year term (180 monthly payments of $118.28) and a 11.69% APR would result in a total estimated payment amount of $21,290.40. For a variable loan, after your starting rate is set, your rate will then vary with the market. Fixed APR: A $10,000 loan with a 15-year term (180 monthly payments of $126.82) and a 13.03% APR would result in a total estimated payment amount of $22,827.79.
These examples provide estimates based on interest only payments while in school. Variable APR: A $10,000 loan with a 15-year term (180 monthly payments of $145.41) and a 11.69% APR would result in a total estimated payment amount of $26,173.03. For a variable loan, after your starting rate is set, your rate will then vary with the market. Fixed APR: A $10,000 loan with a 15-year term (180 monthly payments of $156.59) and a 13.03% APR would result in a total estimated payment amount of $28,186.67. Your actual repayment terms may vary. Other repayment options are available.
These examples provide estimates based on fixed $25 payments while in school. Variable APR: A $10,000 loan with a 15-year term (180 monthly payments of $169.92) and a 11.69% APR would result in a total estimated payment amount of $30,584.74. For a variable loan, after your starting rate is set, your rate will then vary with the market. Fixed APR: A $10,000 loan with a 15-year term (180 monthly payments of $188.42) and a 13.03% APR would result in a total estimated payment amount of $33,915.55. Your actual repayment terms may vary. Other repayment options are available.
These examples provide estimates based on deferred payments. Variable APR: A $10,000 loan with a 15-year term (180 monthly payments of $174.79) and a 11.69% APR would result in a total estimated payment amount of $31,462.16. For a variable loan, after your starting rate is set, your rate will then vary with the market. Fixed APR: A $10,000 loan with a 15-year term (180 monthly payments of $193.75) and a 13.03% APR would result in a total estimated payment amount of $34,874.28. Your actual repayment terms may vary. Other repayment options are available. It is important to note that the 0.25% Auto Pay discount is not available while loan payments are deferred.
7 Loan Eligibility criteria: Eligible students must: 1) For college Freshmen, Sophomores and Juniors, attend, or be enrolled to attend, a Title IV school full-time. For college Seniors and Graduate students, attend, or be enrolled to attend, a Title IV school at least half-time; and 2) be pursuing a Bachelor’s or Graduate degree. Earnest private student loans are subject to credit qualification, completion of a loan application, verification of application information, self-certification of loan amount, and school
certification.
Before applying for private student loans, it’s best to maximize your other sources of financial aid first. It’s recommended to use a 3-step approach to assembling the funds you need: 1) Look for funds you don’t have to pay back, like scholarships, grant and work-study opportunities. 2) Next, fill out a FAFSA® form to apply for federal student loans. Federal student loans do not require a credit check or cosigner, and offer various protections if you’re struggling with payments. 3) Finally, consider a private student loan to cover any difference between your total cost of attendance and the amount not covered in steps 1 and 2. For more information, visit the Department of Education website at https://studentaid.ed.gov.
Earnest Private Student Loans are made by One American Bank, Member FDIC. One American Bank, 515 S. Minnesota Ave, Sioux Falls, SD 57104.
Earnest loans are serviced by Earnest Operations LLC, 535 Mission St., Suite 1663 San Francisco, CA 94105, NMLS #1204917, with support From Navient Solutions, LLC (NMLS #212430). One American Bank and Earnest LLC and its subsidiaries, including Earnest Operations LLC, are not sponsored by agencies of the United States of America.
© 2022 Earnest LLC. All rights reserved.
See Earnest’s disclosures here.
Sparrow receives compensation from Earnest on a per-funded loan basis.