LendKey Student Loan Refinancing: 2024 Review

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 refinance offering is available to graduates with strong credit and stable income. It’s best if you want to work with a credit union or community bank to access loan offers you otherwise might have overlooked. 

Fixed APR Range: 7.11% to 11.18%

Variable APR Range: N/A

Loan Amounts: $5,000 to $300,000, depending on degree

Minimum Credit Score: 680

Best Features	Drawbacks
• Work with a credit union or community bank, rather than a traditional lender • Access to competitive interest rates • 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 • Varying cosigner release policies • Loans aren’t available in Maine, Nevada, North Dakota, Rhode Island, or West Virginia • Biweekly payment via autopay is not available • You may have to become a member of a credit union

Compare LendKey Rates:

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

Best Features: LendKey Student Loan Refinance

Work with credit unions and community banks

LendKey allows you to access refinance 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 to refinance your student loan, finding a low interest rate is typically a top priority. If you qualify for a LendKey student loan refinance, 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. 

	LendKey Student Loan Refinance
Fixed APR*	7.11% to 11.18%
Variable APR*	N/A

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). 

On 5, 7, and 10-year loans, LendKey allows you to postpone payments for up to four months at a time, for up to 12 months total.

On 15 and 20-year loans, 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.

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.

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: LendKey Student Loan Refinance

Strict eligibility criteria

In order to qualify for student loan refinance through LendKey, borrowers must meet the following criteria:

1. A U.S. citizen or permanent resident
2. Graduated with at least an associate degree
3. You or your cosigner have a credit score of 660
4. You have an annual income of $24,000 per year, or $12,000 per year with a cosigner

LendKey’s strict eligibility criteria excludes non-U.S. citizens/permanent residents, non-graduates, parents, and those who don’t meet the credit or income requirements. 

Not a U.S. citizen or permanent resident? Prodigy Finance has looser residency requirements. In addition, SoFi offers student loan refinance to international students who have a U.S. citizen as a cosigner. 

Haven’t earned an associate’s degree? EDvestinU accepts borrowers without a degree.

Don’t have a credit score of 660 (or a creditworthy cosigner)? Earnest accepts borrowers with a lower credit score. 

Don’t have an annual income of $24,000? SoFi doesn’t have a minimum income requirement. 

If you do not meet LendKey’s criteria for a student loan, you may want to look elsewhere to refinance your private student loan. 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 bidding for your business. And best of all, it won’t 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 need to check with your specific lender to confirm their cosigner release policy.

Loans aren’t available in certain states

LendKey does not offer student loan refinance to borrowers who live in Maine, Nevada, North Dakota, Rhode Island, or West Virginia. If you live in any of these states, try using our rate comparison tool to see which refinance lenders you qualify with. 

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. 

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. 

LendKey Student Loan: The Nuts and Bolts

Interest Rates, Fees, and Terms

Fixed APR Range	7.11% to 11.18%
Variable APR Range	N/A
Loan Terms	5, 7, 10, 15, or 20 years.
Loan Amounts	$5,000 to $125,000 for undergraduate degrees; up to $250,000 for graduate degrees; and up to $300,000 for medical, dental or veterinary degrees.
Ability to transfer a parent loan to the student	No.
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, $12,000 per year with a cosigner.
Typical Credit Score of Approved Borrowers or Cosigners	751.
Typical Income of Approved Borrower	$65,000.
Maximum Debt-to-Income Ratio	50%.
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, except Maine, Nevada, North Dakota, Rhode Island, and West Virginia.
Must have graduated	Yes, with at least an associate degree.
Must have attended a school authorized to receive federal aid	Yes.
Percentage of borrowers who have a cosigner	37%+.

Repayment Options

Academic Deferment	No.
Military Deferment	No.
Disability Deferment	Did not disclose.
Forbearance	On 5, 7, and 10-year loans, postpone payments for up to four months at a time, for up to 12 months total. On 15 and 20-year loans, postpone payments for up to six months at a time, for 18 months total.
Cosigner Release	Did not disclose.
Death or Disability Discharge	Not guaranteed by the loan agreement, but common practice, according to LendKey.
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 approval to payoff	Did not disclose.

Before you take out a loan from LendKey…  

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

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, except Maine, Nevada, North Dakota, Rhode Island, and West Virginia.

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. However, you can speed up the process by requesting debt payoff letters from your current lenders and loan servicers.

What happens if I don’t qualify for a LendKey student loan?

If you don’t qualify for LendKey student loan refinance, the company will inform you why. Depending on the reason, you may consider applying with a qualified cosigner or try 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 bidding for your business. 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? 

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

See LendKey’s disclosures here.