With interest rates projected to rise by 0.60 percentage points for undergraduate students and 10% for postgraduate, choosing the right lender is even more critical. One of the private lenders that has grown in popularity in the recent years is Earnest. The lender mostly operates online and offers personal loans and student loan refinancing. Although the firm was acquired by Navient in 2017, it still operates under its original brand, Earnest. The company stands out from the pool of lenders and loan refinancers mainly because of its underwriting approach, where one’s qualification is determined based on earning potential and data from connected financial accounts. A typical borrower from the company is one who saves more regularly and has a good payment history, as well as minimal personal and credit card debt. In addition, unlike most lenders, co-signers are not needed when applying through Earnest. Given the presence of many private lenders in the market, making a sound choice depends on one’s access to information. As such, this article offers a synthesized Earnest student loans review with the goal of helping graduates choose the right loan refinancing plan.
Is Earnest Student Loans Refinancing Right for You?
Before you make the decision to refinance with a particular lender, it is important to compare several choices. This ensures that you get the best rates possible. Refinancing is essentially the process of getting a new loan in the place of an existing one but at lower rates. The higher your interest, the more you are likely to benefit from a refinancing arrangement. With the recent surge in the rates charged on student loans, institutions such as Earnest, Prosper and Laurel Road have developed programs to assist borrowers to save money in the long term by speeding up the process of loan repayment. When choosing the best deal for repayment, you should also consider the flexibility offered. Here are some pointers as to what may make Ernest loans a good choice:
- It considers the bigger picture —Earnest differentiates itself from other lenders through the methods of evaluating potential borrowers. You need to demonstrate the ability to save money and responsibly handle your finances and should have a job. Your career trajectory and saving pattern help the lender assess your creditworthiness in a way that is different from other providers.
- There are no fees charged for taking out a loan or for making early payments. The only possible fee is the one charged for missed payment as the lender does not apply origination or prepayment fees.
- The plan is designed with the lender in mind, as they can choose the minimum monthly payment. Please note that the less you pay each month, the longer your repayment period.
- There is the possibility of skipping a payment, as long as you make it up later. Skip ups must be formally requested.
While the deal sounds good, there are certain things to watch out for, which must be covered in this Earnest loans review. For instance, like other private loan refinancing options, there are some major drawbacks, some of which are specific to Earnest. For example, the arrangement is a high standard, meaning that applicants are required to display a near-spotless credit record. This tends to eliminate most borrowers. There is also the issue of losing out on federal benefits, including debt forgiveness. These could be some of the reasons for the relatively low Earnest loans BBB rating of B-. The business is also not accredited by the Better Business Bureau (BBB). However, in our own rating, and given the attractive annual percentage rate (APR), we present the following judgment in relation to student refinancing:
Rise Credit Loans Review: Great Small Loan Lender
When conducting a review of a loan facility, it is best to compare it with another arrangement from a different company. Most Earnest personal loans reviews omit this information. In this case, we have chosen to consider Rise Credit. One thing that makes Rise formidable is its honest approach to business, admitting that its rates are not the lowest. The question we need to ask, however, should be ‘is rise credit loans legit?’. The simple response would be affirmative since the company offers transparent terms. Borrowers can take between $500 to $5,000. However, Rise charges high APRs ranging from 36% to 365%, with late fees and origination fees that vary from state to state.
So, is rise loans legit? Yes, compared to Earnest that is not BBB accredited, Rise loans BBB rating is A. However, you may need to consider other available lending options as the loans carry a hefty APR. Other lenders like Earnest offer faster and cheaper loans.
How to Apply for Earnest Refinance Student Loans
The next element of good Earnest student loans reviews is the application process. Applying for student loans with this company is quite simple. The lender uses a unique underwriting process that considers your earning potential and savings history. You can refinance with Earnest by following these simple steps:
- Estimate your current student loan rate
- Fill out the application online
- Link your financial accounts
- Consent to hard credit pull
- Pick a rate (variable or fixed), term, and payment
- Send the relevant documents
This article has reviewed Earnest student loan refinancing, considering whether it is a good decision. For comparison, we have also explored the question ‘is rise loans legitimate?’ From the discussion, it is important to note that, while Earnest offers an attractive APR and a unique model for analyzing creditworthiness, there are other legitimate options out there worth considering. Read carefully and assess whether refinancing is the right decision.