Earnest is an online direct lender for student loans and personal loans. They operate under the name Earnest Operations LLC in the United States. This direct lender also owns One American Bank, and they work closely with Navient Solutions LLC.
With Earnest Operations LLC, you can get both personal and student loans at cheaper interest rates than most loan providers. One of the best things about this company is that they have a human touch in their services. They will offer you the best rates based on the information you provided during your online application.
So what do you need to know about Earnest Loans? Let’s explore the different loans earnest offers and see if they are a suitable option for you.
What Types Of Loans Does Earnest offer?
As a direct lender, Earnest Operations LLC offers 2 types of loans; student loans and personal loans. You can also get Refinance Student Loans from Earnest. Now let’s explore these different loans and their benefits to see if it resonates with your situation.
1. Private Student Loans:
Loan Amount & Terms$1000 – $57,500 Start Paying 9 months after your graduation or leaving school |
Interest Rates APR0.99% – 2.94% You can use a cosigner if your credit score is below 650. |
Earnest offers different private student loans for general education and professional levels. They have loans for Undergraduates, Graduates(including MBA, Medical School, and Law School).
Now let’s dive deep into each private student loan type and see the benefits and the different negative aspects.
Undergraduate Private Student Loans:
With their Undergraduate Private Student Loans, you can cover up to 100% of your college costs. Earnest has different options for Dependent Undergraduates and Independent Undergraduates. Dependent Undergraduates can borrow up to $31,000, of which $23,000 is subsidized. While Independent Undergraduates can borrow up to $57,500, of which $23,000 is subsidized.
Graduate Private Student Loans (including MBA, Medical School, and Law School):
The Graduate Student Loan can also cover 100% of your program’s costs. Like the undergraduate student loans, you also benefit from the lower interest rates with flexible repayment options. You also get a decision within 72 hours of submitting your online application.
Private Student Loans Refinancing:
Most lenders will charge you an origination fee for Private Student Loans. Still, Earnest does not charge you any fee whatsoever. You can completely refinance your student loans cheaper than with other lenders. This feeless service is one of the main driving factors of Earnest Operations LLC’s success.
With Refinancing, the rates start at 1.88% APR for variable rates and 2.48% for fixed rates. One thing to note is that Earnest does not offer variable rates to students in the following states; AK, IL, MN, NH, OH, TN, and TX. So if you are from one of these states, you only get the fixed rates.
Benefits of Private Student Loans For Earnest:
- No application fees are involved.
- The ability to skip a payment once a year.
- You have a 0.25% discount on your repayment if you set automatic deductions.
- You can include a cosigner.
- There is a 9-month grace period for looking for a job and getting your finance in order.
- You can make a $25 monthly payment while still in school. These monthly payments go into the interest.
- Connect with an actual human if you need any assistance.
- Benefit from a flexible repayment plan and the ability to choose a suitable plan for your situation.
- Enjoy a lower interest rate of 0.99% APR for variable rates or a 2.99% APR for fixed rates.
- The application process is simple, and it only takes 2 minutes to complete. You also get a faster decision within 72 hours.
- You can easily manage your loan using their user-friendly app.
With every lender, some drawbacks could prevent or discourage you from using their services. So let’s look at the cons.
Drawbacks of Private Student Loans From Earnest:
- Earnest Operations LLC does not serve New York residents. So if you are from NY, you should consider other lending options.
- If you don’t have a FICO score of at least 650, you won’t get this loan. For Dependent Undergraduates, your cosigner must also have a score of at least 650.
- Your school must be a Title IV-qualified not-for-profit 4-year institution.
- The maximum amount you can get for your entire studies is $57,500. This amount could not be enough for other programs.
- For student loan refinance, the lowest rate starts at 1.88%.
Requirements For Private Student Loans From Earnest:
- You are at least 18 years or older. Depending on your state of residence, the minimum age of majority could be 19 years.
- Be a US citizen or possess a 10-year non-conditional permanent resident card. For dependent undergraduate loans, your cosigner must be a US citizen or has a permanent residence status.
- You enrolled in a school full-time either as a Freshman, Junior, or Sophomore. For Seniors, you must be enrolled at least half the time for your college program.
- You are pursuing a bachelor’s degree.
- Must have a FICO score of at least 650 and an income of at least $35,000 per year. You should also have at least three years of credit history.
- You don’t have an account that is currently in collections.
- The minimum amount to request is $1000.
2. Personal Loans From Earnest:
Loan Amount & Terms$1000 – $250,000 The repayment terms is between 6 to 144 months |
Interest Rates APRStarting from 2.49% The higher your credit score, the lower your interest rate. |
Earnest has partnered with Fiona to offer personal loans at the most competitive rates. Within 60 seconds of submitting your application, you get custom personal loan offers that best suit your need and financial situation. Unlike student loans from Earnest, you do not need a high credit score to get a personal loan through Earnest.
This guide might interest you – 10 Simple ways to improve your credit score to get lower interest loans ➔.
The loan terms are from 6 to 144 months. You can borrow from $1000 right up to $250,000 at a low APR of 2.49%. The amount you will be eligible for depends on your monthly income. Additionally, you will require a current checking account or a savings account to get the funds transferred into your account.
Although you do not need collateral for these personal loans, the amount you can get depends on the accurate data you submitted during the application. So make sure you submit accurate data to avoid rejection of your application.
Benefits of Personal Loans Through Earnest:
- You can still get a loan with bad credit. Your credit score doesn’t have to be high.
- These loans have one of the lowest APRs of 2.49% compared to other lenders with APRs as high as 15%.
- You have a longer repayment term of up to 144 months.
- You receive multiple offers to choose the best one suitable for you.
- Approval is almost guaranteed as long as you provide valid and accurate information during the online application process.
What do you need to get a personal loan through Earnest?
- You are a US citizen or have a permanent residence status.
- You are 18 years or older.
- Have a monthly income of at least $1200. Alimonies and other benefits also count.
- You have a checking or savings account to receive the loan.
Frequently Asked Questions About Earnest Loans
- Is Earnest legit? Earnest is a legitimate company operating under the name Earnest Operations LLC. They also have a financing license.
- How long does Earnest’s loan review take? The review process is done within 72 hours.
- Is Earnest a direct lender? Yes, Earnest is a direct lender for student loans. But personal loans are through Fiona.
- Does Earnest have prepayment Penalties? No, they do not have a penalty fee if you repay your loan early.
- Does Earnest have hidden fees? No, Earnest is very transparent with the interest rates. There is no origination fee or any other hidden fee.
Do this before applying for a private student loan with Earnest:
It would be a wise decision if you first exhaust your options with Federal student loans before applying for a private student loan. Federal student loans have a lot more benefits than private student loans.
If you decide on private student loans, make sure you compare different lenders to get the best rates. Consider lenders with flexible repayment options, lower interest rates, and cashback benefits.
Loan Amount & Terms$1000 – $57,500 Start Paying 9 months after your graduation or leaving school |
Interest Rates APR0.99% – 2.94% You can use a cosigner if your credit score is below 650. |
Loan Amount & Terms$1000 – $250,000 The repayment terms is between 6 to 144 months |
Interest Rates APRStarting from 2.49% The higher your credit score, the lower your interest rate. |
Bottom-Line:
Earnest Operations LLC is a direct lender you can count on. They have a lot of positive reviews from students across the US. You can easily benefit from one of the best interest rates in the market for student loans and personal loans.
