When you refinance your student loans, you can take advantage of a lower interest rate while also consolidating multiple loans into one monthly payment. The caveat is that you typically need good or excellent credit (at least a 670 credit score) in order to qualify.
Earnest Student Loan Refinancing stands out for giving student loan borrowers a better chance at qualifying. With Earnest, fair credit applicants with a minimum credit score of 650 can qualify, and there are no minimum income requirements. For these reasons, Select ranked Earnest Student Loan Refinancing on our list of the top student loan refinance companies.
Read on for the full details of Earnest's Student Loan Refinancing, including the APRs, perks, fees, loan amounts and term lengths. (See our methodology for more information on how we choose the best student loan refinance companies.)
Earnest Student Loan Refinancing review
Actual rate and available repayment terms will vary based on your financial profile. Our lowest rates are only available for the most credit qualified existing cosigned loan borrowers who receive the 0.25% Loyalty discount and requires selection of our shortest term offered, full principal and interest payment while in school, and enrollment in our 0.25% Auto Pay discount. Enrolling in Auto Pay is not required as a condition for approval. Interest rates are subject to change.
Residents of Hawaii must request a loan of at least $1,501.
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. It is important to note that the 0.25% Auto Pay discount is not available when loan payments are deferred during the interim period as a result of selecting the deferred repayment option.
To be eligible for the Loyalty Discount, applicants must have previously obtained an Earnest Private Student Loan and apply using the same email address associated with that loan. Only one Loyalty Discount may be applied per eligible Earnest Private Student Loan. Not all applicants may qualify. This offer cannot be combined with Earnest's Rate Match program. Earnest may modify or discontinue this offer at any time and without notice, however, once a Loyalty Discount is earned, it will not be taken away.
Nine-month grace period is not available for borrowers who choose our Principal and Interest Repayment plan while in school.
Earnest clients may skip a payment through a single, one-month forbearance during a 12 month period. Your first request to skip a pay can be made once you've made at least 6 months of consecutive on-time full principal and interest 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. Any unpaid accrued interest may capitalize (added to the principal balance) at the end of the forbearance period by adding unpaid accrued interest to the outstanding principal as permitted by law and the terms of the loan agreement. 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.
Earnest Student Loan Refinancing APR
Earnest offers both variable and fixed APRs. Variable interest rates fluctuate over the life of the loan, while fixed rates stay the same for the duration of the loan term.
Earnest's variable rates start at 5.88%. Fixed rates start at 3.95%. Both variable and fixed APRs are eligible for a 0.25% autopay discount.
Variable rates are not available on Earnest loans in the following states: AK, IL, MN, NH, OH, TN and TX.
Perks
Being able to refinance through Earnest with fair credit is a huge perk. Most other refinancing lenders require borrowers to have at least good credit in order to qualify.
In addition to pulling your credit report, refinancing lenders in general look at your income as well. With Earnest, however, it publicizes that there is no minimum income requirement.
Earnest offers payment protections for borrowers, like a 9-month grace period, as well as personal loan customization. Borrowers who refinance can choose their preferred payment amount based on their budget, select biweekly or monthly payments and increase their payment and/or adjust their payment date at any time. And, if you're short on cash one month, Earnest allows qualified borrowers to skip one payment every 12 months and make it up later.
Fees
Earnest does not charge borrowers any origination fees to take out a refinancing loan. There are also no late fees, disbursement fees or early payoff penalties.
Loan amounts
Loan sizes start at a minimum of $5,000 and go up to $550,000. For California residents, the minimum loan amount is $10,000.
Term lengths
Borrowers have flexibility, with loan terms ranging between 5 to 20 years.
Bottom line
Earnest Student Loan Refinancing is the best option for borrowers looking to refinance with fair credit. You won't need to meet a minimum income requirement to apply for refinancing with Earnest and if you're a student loan borrower with fair credit, you have many more refinancing options. We also recommend SoFi® Private Student Loan Refinancing (Select's top-ranked pick) for its perks like free career coaching, financial advice from planners and a Career Advisory Group that can help you look for new employment. Read our full review of SoFi Student Loan Refinancing here.
Our methodology
To determine which student loan refinance companies are the best for borrowers, Select analyzed and compared private student loan funding from national banks, credit unions and online lenders. We narrowed down our ranking by only considering those that offer low student loan refinancing rates and prequalification tools that don't hurt your credit.
While the companies we chose in this article consistently rank as having some of the more competitive interest rates for refinancing, we also compared each company on the following features:
- Broad availability: All of the companies on our list refinance both federal and private student loans, and they each offer a variable and fixed interest rate to choose from.
- Flexible loan terms: Each company provides a variety of financing options that you can customize based on your monthly budget and how long you need to pay back your student loan.
- No origination or signup fee: None of the companies on our list charge borrowers an upfront "origination fee" for refinancing your loan.
- No early payoff penalties: The companies on our list do not charge borrowers for paying off loans early.
- Streamlined application process: We made sure companies offered a fast online application process.
- Co-signer options: Each company on our list allows for a co-signer if the direct borrower does not qualify for refinancing on their own.
- Autopay discounts: All of the companies listed already calculate autopay discounts into their advertised rates.
- Private student loan protections: Though you lose federal student loan benefits when you refinance, each company on our list offers some type of their own financial hardship protection for borrowers.
- Loan sizes: The above companies refinance loans in an array of sizes, from $5,000 to $550,000. Each company advertises its respective loan sizes, and completing a preapproval process can give you an idea of what your interest rate and monthly payment would be.
- Credit requirements/eligibility: We took into consideration the minimum credit scores and income levels required if this information was available.
- Customer support: Every company on our list provides customer service available via telephone, email or secure online messaging. We also opted for lenders with an online resource hub or advice center to help you educate yourself about the student loan refinancing process.
After reviewing the above features, we sorted our recommendations by best for overall refinancing needs, having a co-signer, applying with a good credit score, refinancing parent loans and medical school loans.
Note that the rates and fee structures for private student loan refinancing are not guaranteed forever; they are subject to change without notice and they often fluctuate in accordance with the Fed rate. Choosing a fixed-rate APR when you refinance will guarantee that your interest rate and monthly payment will remain consistent throughout the entire term of the loan.
Your refinanced rate depends on your credit score, income, debt-to-income (DTI) ratio, savings, payment history and overall financial health. To refinance your student loan(s), lenders will conduct a hard credit inquiry and request a full application, which could require proof of income, identity verification, proof of address and more.
