Earnest student loan refinance was founded in 2013. They stand out for an underwriting approach based on a borrower’s earning potential.
In our 2019 Earnest student loan refinance review, we provide an overview of the company, pros, and cons as well as who may want to use them. Be sure to check out the other companies also by checking out our Best Student Loan Refinance Company review page.
As noted in our Student Loan Refinance Guide, FitBUX partners with seven student loan refinancing companies. We have an in-depth knowledge of their underwriting guidelines and have been asked by each company not to disclose certain items. We honor their wishes by not giving out specific information such as typical rates for various FICO scores and DTI ratios. If you’d like help based on your situation, I highly recommend using our free student loan refinance service in which we will help you choose the right student loan refinancing company.
Also, to help you, we developed a step-by-step student loan refinance checklist. Complete the info below and we’ll send you the checklist via email!
Table of Contents
Earnest Company Overview
As mentioned above, Earnest student loan refinance uses a unique approach to decide who qualifies for refinancing. They do so by incorporating your earnings potential. In 2017, Earnest was acquired by Navient.
- Currently, they offer fixed and variable rate student loans that range from 5 years – 20 years. Here is an article about fixed and variable rate student loans if you’d like to learn more.
- Current fixed interest rate: 3.45% – 6.99% (Reality: you will probably receive a rate in the 5% range)
- Current variable interest rate: 1.81% – 6.49%
- Loan amounts: $5k – $500k
- You have to have a 650 credit score or higher (Learn one trick to increasing your credit score in this article)
Pros of Using Earnest
Below are the pros of working with Earnest student loan refinance:
- Best Technology: Hands down, Earnest has the best technology of all the student loan refinance companies. From application to funding the loan, they are the fastest. FitBUX has had Members complete refinancing with Earnest in less than a day.
- Unique Approach: As mentioned, Earnest has a unique approach for qualifying you. This approach requires you to link your bank account so they can look at your banking history. Some call this a Pro because it may help qualify applicants who would not qualify with other refinance companies. Others call it a Con because they don’t want to link their accounts. If you don’t want to link your accounts, you don’t need to waste your time applying to refinance your student loans with Earnest.
- Easy To Be Approved: For new grads, Earnest student loan refinance is one of the easiest companies to be approved by. In addition, they provide an additional, albeit indirect, benefit to FitBUX members: 2 of our refinance partners offer to match or beat Earnest’s rate regardless of what you initially qualified for with these partners. We can get a low rate for our Member’s with Earnest and then have others compete to beat it. In the end, you benefit by getting the best rate!
Cons Of Using Earnest
Below are the Cons of refinancing with Earnest student loan refinance:
- Availability: Currently, Earnest does not offer student loan refinancing to residents of Delaware, Kentucky, and Nevada.
- Minimal Rep Support: Minimal Rep Support: One major benefit of FitBUX’s free refinance service is that we help our Members throughout the refinance process should they need it. We do so by having reps at each company we partner with in case you are having issues with front-line customer service. Unfortunately, we’re only getting very limited support from Earnest and often have to go through their general customer service line. They are also the hardest of the 7 companies for us to work with.
- Not Good For Non-New Grads: If you aren’t a recent graduate and have a decent credit score, then other refinance partners FitBUX works with will give you far better rates than Earnest.
- A Hard Credit Pull: This is actually a warning. When you apply for a quick rate with Earnest, they do a soft-credit check (i.e. it doesn’t hurt your credit score). However, if you go through this process and they don’t show you a rate initially, then they will say something along the lines of “Earnest needs more information to determine your eligibility. Please submit the following information.” What they don’t highlight when displaying this is that you are submitting a formal application at that point, i.e. they will do a hard credit check. A note of caution: 100% of the Members who had to complete this extra step have been denied. In short, if they don’t show you rates initially, then don’t continue.
- No Co-signor: They are the only student loan refinance partner FitBUX works with that doesn’t offer you the ability to add a co-signor.
- No Parent-Plus Loan: If you are a parent, then you can refinance your parent plus loan with Earnest. However, you can not transfer the loan to your child.
- Pick Your Loan Term: Earnest allows you to pick your loan term to an exact month. Some have stated this is a benefit. In reality it adds little value relative to selecting a longer-term loan and making prepayments. In fact, Earnest used to advertise this as a major selling point in their marketing. Now days, its not even mentioned on their student loan refinance site.
- Bought By Navient: As previously mentioned, Earnest was acquired by Navient. So far, they have kept operations separate. However, many times within 3 – 5 years, the company purchasing the new company will completely change everything about them…let’s hope that doesn’t happen. To read why I say that, check out this story about a FitBUX Member and Navient.
Earnest vs. Sofi
Earnest, Sofi, and Commonbond were the first innovators in the student loan refinance race. Many of you have seen/heard of Sofi because of their massive marketing efforts. Therefore, we get questions daily asking us to compare Earnest vs Sofi.
As I mention in the 2019 Sofi Student Loan Refinance review, Sofi tends to give really good interest rates to the best of the best. For example, those that go to “top notch” schools and have high paying jobs. In regards to interest rates, Earnest doesn’t come close to Sofi for those “upper echelon” student loan borrowers.
SoFi is also better for those that have a co-signer. This is obvious because Earnest doesn’t allow you to have a co-signor. However, if you are using a co-signer, there is a very good chance that another one of our student loan refinance partners will beat Sofi.
However, Earnest is 1,000x better for everybody else (as is Commonbond). That is, if you don’t have a co-signor, have a credit score that is 650-775, and have a good amount of student loan debt, then Earnest blows Sofi out of the water….its not even close in regards to who will give you a better interest rate.
Student Loan Refinance Company Reviews By FitBUX
Student loan planners are hard to find. If you would like free expert help deciding if student loan refinancing is right for you, check out FitBUX’s free student loan refinance service. You can also join us for our Secrets to Student Loan Refinancing Webinar.