Earnest Student Loan Refinancing: 2024 Review

Earnest Snapshot

Earnest offers both private student loans and student loan refinancing.¹ With competitive interest rates, customizable repayment plans, and a forward-looking eligibility criteria, Earnest is a good fit for borrowers who don’t have a cosigner but have a strong credit score.¹ 

Fixed APR Range: 4.96% to 9.79%* (includes 0.25% auto pay discount)

Variable APR Range: 5.49 % to 9.74%* (includes 0.25% auto pay discount)

Loan Amounts: $5,000 ($10,000 for California residents) to $500,000

Minimum Credit Score: 650

Best Features	Drawbacks
• Competitive interest rates • Customizable payments and loan terms  • Merit-based rates • Option to skip one monthly payment every year3 • Allows biweekly payments via autopay4	• Refinancing is unavailable in Kentucky and Nevada • Variable interest rates aren’t available for borrowers in all states • You can’t apply with a cosigner • Student borrowers cannot take over parent PLUS loans that parents took out on their behalf

What’s Inside

• Interest Rates, Fees, and Terms
• Eligibility Requirements – Financial
• Eligibility Requirements – Personal
• Repayment Options
• Customer Service
• FAQ

Compare Earnest Student Loan Refinance Rates:

Rather than searching for lenders one-by-one, we recommend starting the process with an automated student loan refinance search tool. With the free Sparrow application, you can see the rates and terms you’d qualify for with 17+ premier lenders. 

>> MORE: Compare Earnest refinance rates to other student loans

Best Features of Refinancing with Earnest

Competitive interest rates and zero fees for qualified borrowers

When looking to refinance your student loan, finding a low interest rate is typically a top priority. If you qualify to refinance through Earnest, you’ll have access to some of the best rates in the industry. In addition, you won’t have to pay origination fees, application fees, prepayment penalties, late fees, or insufficient funds fees. 

	Earnest Student Loan Refinancing
Fixed APR*	4.96% to 9.79%*
Variable APR*	5.49 % to 9.74%*

Customizable payments and loan terms

Earnest offers expansive repayment options that allow you to customize your terms before locking in your loan. Unlike most lenders, Earnest allows you to set the exact payment amount you want without being restricted to standardized options that are not right for you. In addition, you can even specify the exact number of months in which you want to pay off your loan. 

If you are looking for a lender that offers flexibility to match your monthly payments to your budget, Earnest is an excellent option for you.

>> MORE: How to know if I should refinance my student loan

Merit-based rates

Earnest offers a unique merit-based underwriting process that allows you to get approved with even a short or nonexistent credit history. Earnest’s underwriting approach looks at traditional financial data (credit score) as well as alternative financial data (bank account information) to provide personalized loan offers. 

This can save you thousands, or even or tens of thousands, of dollars over other lending options that only look at your credit score to determine your rates.

Option to skip one monthly payment every year³

Earnest is the only lender that allows you to skip one monthly payment on your student loan every year. Therefore, 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,⁴ 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. 

Earnest also allows borrowers to make same-day payments and schedule multiple extra payments at once.

>> MORE: How to save thousands on student loans with autopay

Drawbacks of Refinancing with Earnest

Refinancing isn’t available to borrowers in Kentucky and Nevada

If you live in Kentucky or Nevada, you’ll have to consider other lenders to refinance your private student loan. Complete the Sparrow application to compare real rates from more than 17 different lenders to make sure you’re getting the best rate possible. 

Variable interest rates aren’t available to borrowers in all states

Variable interest rates are not available to borrowers in Alaska, Illinois, Minnesota, New Hampshire, Ohio, Tennessee, and Texas. So if you’re a borrower from one of these states and set on a variable interest rate, you’ll want to explore other lenders.

>> MORE: What’s the difference between variable vs fixed interest rates for student loans

You can’t apply with a cosigner

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 typically help you qualify for better loan terms. However, Earnest does not allow you to apply for refinancing with a cosigner. 

>> MORE: What is a private student loan cosigner?

Student borrowers 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). However, Earnest 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 Earnest — it will just be in your name, not the student’s name.

>> MORE: What you need to know about a parent PLUS loan

Earnest: The Nuts and Bolts

Interest Rates, Fees, and Terms

Fixed APR Range	4.96% to 9.79%*
Variable APR Range	5.49 % to 9.74%*
Loan Terms	Choose a term between 5 and 20 years.5 Choose a precise loan term, down to the month.
Loan Amounts	$5,000 ($10,000 for California residents) to $500,000.
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	650.
Minimum Income	No minimum. Applicants must have a written job offer for employment starting within six months or have consistent income.
Typical Credit Score of Approved Borrowers or Cosigners	Did not disclose.
Typical Income of Approved Borrower	$135,000.
Maximum Debt-to-Income Ratio	65%.
Ability to qualify if you’ve filed for bankruptcy	Yes, if you don’t have accounts recently in collection and after the bankruptcy drops off your credit report. This happens after seven years for Chapter 13 bankruptcy and after 10 years for Chapter 7.

Eligibility Requirements – Personal

Citizenship	Must be a U.S. citizen or possess a 10-year, non-conditional green card.
Location	Not available to borrowers in Kentucky and Nevada. Variable rates aren’t available to borrowers in Alaska, Illinois, Minnesota, New Hampshire, Ohio, Tennessee, and Texas.
Must have graduated	Yes, but you may be able to refinance in your last semester before graduating if you have an income or job offer.
Must have attended a school authorized to receive federal aid	Yes.
Percentage of borrowers who have a cosigner	Borrowers cannot apply with a cosigner.

Repayment Options

In-school Deferment	Yes.
Military Deferment	Yes.
Disability Deferment	Yes.
Forbearance	Up to 12 months available, in 3-month increments, if you have: • An involuntary decrease in income, such as a reduction in hours, unpaid leave, or a change from full-time to part-time employment. • An involuntary loss of employment at no fault of your own. • A significant increase in essential costs such as medical expenses, emergency home repairs, or child care.
Cosigner Release	There’s no option to add a cosigner, but refinancing removes the original cosigner.
Death or Disability Discharge	Yes.
Loan discharge if cosigner dies or becomes disabled	No option for a cosigner.
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	No.
Borrowers get assigned a personal customer service representative	No.
Average time from approval to payoff/application to approval	Timeline varies by applicant, but generally, 2-5 business days.

Before you take out a loan from Earnest…  

Complete the Sparrow application to compare real rates from more than 17 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

Is Earnest a legitimate lender?

Yes, Earnest is a legitimate lender that was founded in 2013. The online lender has helped over 164,000 borrowers refinance $14.5 billion in student loans. 

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.⁶ 

>> MORE: Private vs federal student loans

Is Earnest available in all 50 states?

No. Earnest is not available to borrowers in Kentucky and Nevada. In addition, variable rates aren’t available to borrowers in Alaska, Illinois, Minnesota, New Hampshire, Ohio, Tennessee, and Texas.

How long does it take to refinance my student loan through Earnest?

Submitting an application through Earnest takes a few minutes. Once you’ve submitted your loan application, Earnest will return a decision as soon as possible, typically within 2-5 business days. Then, if you qualify, you will receive the rate and terms of your loan.

Does applying for a loan through Earnest⁷ hurt my 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).

>> MORE: Why your credit score may drop because of a student loan

What happens if I don’t qualify for student loan refinancing through Earnest?

If you don’t qualify for refinancing through Earnest, the company will inform you why. Then, depending on the reason, you may 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 ready to help you get the best rate.

>> MORE: Compare the best student loan refinance rates

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 the total cost of your refinanced loan.

2 Actual rate and available repayment terms will vary based on your income. Fixed rates range from 5.21% APR to 10.04% APR (excludes 0.25% Auto Pay discount). Variable rates range from 5.74% APR to 9.99% 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. The maximum rate for your loan is 9.13% if your loan term is 10 years or less. For loan terms of more than 10 years to 15 years, the interest rate will never exceed 9.21%. For loan terms over 15 years, the interest rate will never exceed 9.24%. Please note, we are not able to offer variable rate loans in AK, IL, MN, NH, OH, TN, and TX. 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.

3 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.

4 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. 

5 Earnest’s Loan Cost Examples: These examples provide estimates based on payments beginning immediately upon loan disbursement. Variable APR: A $10,000 loan with a 20-year term (240 monthly payments of $72) and a 5.89% APR would result in a total estimated payment amount of $17,042.39. 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 20-year term (240 monthly payments of $72) and a 6.04% APR would result in a total estimated payment amount of $17,249.77. Your actual repayment terms may vary.

6 You may lose benefits associated with your underlying federal and/or private loans if you refinance such as federal Income-driven Repayment Plans, Economic Hardship Deferment, Public Service Loan Forgiveness, or other deferment and forbearance options. If you file for bankruptcy, you may still be required to pay back this loan.

7 Loan Eligibility criteria: Your debt is from paying for education at a Title IV accredited school. The debt is from your education or your child’s. The debt you’re refinancing is for a completed degree or one that will be completed at the end of this semester. You are currently the primary borrower on the student loans you would like to refinance, and you will remain the primary borrower after refinancing. You must reside in the District of Columbia or one of the 47 states Earnest Operations LLC is authorized to lend in (all but Delaware, Kentucky, and Nevada). This is strictly a student loan refinance product. There is no opportunity to borrow more than your outstanding qualifying student loan amount. You must be the age of majority in your state or older at the time you apply, as well as be a United States citizen or Permanent Resident Alien without conditions. 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. Please note, we are not able to offer variable rate loans in AK, IL, MN, NH, OH, TN, and TX.

Earnest Loans are made by Earnest Operations LLC. Earnest Operations LLC, NMLS #1204917. 535 Mission St., Suite 1663, San Francisco, CA 94105. California Financing Law License 6054788. Visit www.earnest.com/licenses for a full list of licensed states. For California residents: Loans will be arranged or made pursuant to a California Financing Law License.

Earnest loans are serviced by Earnest Operations LLC with support from Navient Solutions LLC (NMLS #212430). Earnest LLC and its subsidiaries, including Earnest Operations LLC, are not sponsored by agencies of the United States of America.

 © 2023 Earnest LLC. All rights reserved.

See Earnest’s disclosures here.

Sparrow receives compensation from Earnest on a per-funded loan basis.