• Skip to primary navigation
  • Skip to main content
Good Financial Cents®
Content is based on in-depth research & analysis. Opinions are our own. We may earn a commission when you click or make a purchase from links on our site. Learn more.
  • Make Money
    • Get Money Now
      • Ultimate Guide to Making Money
      • Need Money Now
      • Get Free Money Fast
      • Make Money Fast
      • Make $1K Per Month
    • Control Your Destiny
      • Self Employed Jobs
      • Make Money from Home
      • Hobbies That Make Money
      • How to Become a Freelance Writer
      • Small Business Ideas to Start
      • How to Become an Independent Contractor
      • Best Online Jobs
    • Passive Income
      • Passive Income Ideas
      • Multiple Streams of Income
      • Extra Income
      • Residual Income Ideas
      • Learn to Sell e-Books
      • Make Money on Facebook
      • Make Money on Tiktok
      • Best Online Survey Sites to Make Money
    • Explore More
      • Make Money for Teens
      • Best Online Colleges
      • Best Jobs No College Degree
      • Become a Millionaire
      • Careers for the Future
  • Manage Money
    • Best Of
      • Budgeting Tools
      • Personal Finance Software
      • Best Cashback Cards
    • Company Reviews
      • Personal Capital vs Mint
      • Personal Capital Review
      • SmartAsset Review
    • Guides
      • Buy or Lease a Car
      • What is Liquid Net Worth?
      • Setting Financial Goals
      • How to Budget
      • Ways to Save Money
    • Explore More
      • How Much Car Can I Afford?
      • Best Auto Refinance Companies
  • Invest
    • Best Of
      • Best Short and Long-Term Investments
      • Best Low Risk Investments
      • Best Online Stock Brokers
      • Best Crypto Exchanges
      • Best Short Term Investments
      • Best Long Term Investments
      • Best Trading Platforms
      • Best Investment Apps
    • Company Reviews
      • Lending Club
      • Robinhood
      • M1 Finance
      • Ally
      • TD Ameritrade
      • Fundrise
      • Betterment
      • Etrade
      • Wealthfront
    • Guides
      • Investing for Beginners
      • Investing Small Amounts of Money
      • Investing in Real Estate
      • No Money Down Real Estate
      • Bonds vs Stocks
      • Peer to Peer Lending
      • Best Hedges Against Inflation
      • Safe Bitcoin Investing in 2022
    • Explore More
      • Bitcoin vs. Real Estate
      • Betterment vs Wealthfront
      • Investing for College Students
      • Stock Market Alternatives
    • By Investment Amount
      • How to Invest $100
      • How to Invest $1K
      • How to Invest $5K
      • How to Invest $10K
      • How to Invest $20K
      • How to Invest $50K
      • How to Invest $100K
      • How to Invest $200K
      • How to Invest $500K
      • How to Invest $1M
  • Taxes
    • Best Of
      • Best Tax Relief Companies
      • Best Tax Software
    • Guides
      • Federal Income Tax Guide 2022
      • Taxes and Cryptocurrency
      • How to Do Your Own Taxes
      • How to Invest Your Tax Refund
      • Hiring a Professional Tax Preparer
      • Tax Tips for Freelancers
    • Company Reviews
      • TurboTax Review
      • H&R Block Review
      • Taxslayer
      • Tax Act
  • Insurance
    • Best Of
      • Best Life Insurance
      • Best Home Insurance
      • Best Auto Insurance
      • Cheap Term Life Insurance
      • Car Insurance For Young Adults
    • Guides
      • Term vs Whole Life
      • Different Types of Car Insurance
      • Average Cost of Car Insurance
    • Explore More
      • Life Insurance Over 50
      • Life Insurance Over 80
      • $1 Million Life Insurance
      • $2 Million Life Insurance
      • $3 Million Life Insurance
    • Company Reviews
      • Banner Life Insurance
      • Ladder Life Insurance
      • Health IQ
      • Haven Life
      • Policygenius
      • State Farm Auto Insurance Review
  • Retirement
    • Roth IRA
      • Best Places to Open a Roth IRA
      • Best Investments for Roth IRA
      • 7 Roth IRA Secrets
      • Roth IRA Conversion Guide
      • Roth IRA Rules
      • Roth IRA vs Roth 401k
      • Are Roth IRA Contributions Tax Deductible?
    • 401(k)
      • 401(k) Limits
      • 401(k) to Roth Rollover
      • Is 401(k) Enough for Retirement?
      • Maxed Out 401(k): What's next?
    • Traditional IRA
      • Traditional IRA Rules and Limits
      • Traditional IRA vs. 401(k)
      • Simple IRA Rules
      • SEP IRA Rules
      • How Much Do You Need to Start an IRA?
    • Explore More
      • SEP IRA vs. Roth IRA
      • 457 Plan for Successful Retirement
      • 401a Rollover Rules
      • How to Retire at 50
      • How to Retire at 55
  • Banking
    • Best Of
      • Best National Banks
      • Best High-Yield Savings Accounts
      • Best Checking Accounts
      • Best Savings Accounts
      • Best CD Rates
      • Best Money Market Accounts
    • Company Reviews
      • BBVA
      • Synchrony
      • Wells Fargo
    • Explore More
      • 9 Banking Alternatives for 2022
      • What is a Credit Union?
  • Home
    • Best Of
      • Best Mortgage Lenders
      • Best Mortgage Refinance Companies
      • Best Home Warranties
      • Best Homeowners Insurance
      • Best VA Loans
      • Best Mortgage Rates
      • Best Moving Companies
      • Best Home Security
    • Guides
      • Home Buying Checklist
      • Online Home Appraisal
      • How Much House Can I Afford?
      • First-time Homebuyer Programs
      • How to Get Approved for a Home Loan
      • Save Money When Building a House
      • How to Save for a Downpayment
      • When to Refinance Your Mortgage
    • Explore More
      • 15 vs. 30-year Mortgage
      • Home Warranty vs. Home Insurance
      • Veterans United Home Loan Review
      • Quicken Loans Review
      • HELOC vs Second Mortgage
      • DCU Mortgage Review
      • Costco Mortgage Program Review
      • USAA Mortgage Loan Review
  • Credit
    • Best Of
      • Best Credit Repair Companies
      • Best ID Theft Protection Services
      • Best Credit Report Options
      • Best Bad Credit Loans
    • Guides
      • How to Build Your Credit Score
      • How to Raise Your Credit Score in 5 Months
      • How to Dispute Your Credit Report
      • Hot to Remove Collections from Your Credit Reports
      • How Identity Theft Destroys Your Credit Score
    • Explore More
      • What is a Good Credit Score?
      • What is a Bad Credit Score?
  • Debt
    • Best Of
      • Best Debt Consolidation Loans
      • Best Personal Loans
      • Best Student Loans
      • Best Student Loan Refinance
    • Guides
      • How to Get Out of Debt
      • How to Get a Personal Loan Approved
      • How to Pay Off Student Loans Faster
      • Should I Consolidate My Debts?
      • Should I File for Bankruptcy?
    • Company Reviews
      • Credible
      • Sofi
Advertiser Disclosure (How We Make Money)
GoodFinancialCents.com has an advertising relationship with the companies included on this page. All of our content is based on objective analysis, and the opinions are our own. For more information, please check out our full disclaimer and complete list of partners.

Earnest Review | Student Loan Refinancing

Jeff Rose, CFP® | April 12, 2022

If you feel that your credit score doesn’t tell your whole financial story, you’re not alone.

Many people feel frustrated by their inability to get good loan refinancing rates based solely on their credit score. The people at Earnest understand that.

Their goal is to help you get a good rate to refinance your student loan even if your credit score is less than perfect.

What is Earnest?

Earnest is a private lender that can help you refinance your student loans by offering lower-than-average rates and repayment flexibility.

Earnest refinances loans ranging from $5,000 to $500,000. You can apply for loan refinancing as early as six months before graduation through

Earnest if you have a job offer or consistent income. While Earnest does have strict underwriting criteria, they account for more than just your credit score.

This is ideal for borrowers who have good financial habits but may not have an established credit score yet.

Earnest incorporates your savings, earning potential, spending habits, and personal debt to determine your eligibility.

Users are also able to set their own monthly payment amount. Earnest also allows you to increase monthly payments, make multiple extra payments, and make same-day payments without penalty.

This can all help you pay off your student loan more quickly.

Learn More about Earnest

Who is the Ideal Earnest User?

Earnest is a fantastic refinancing option for students or parents with a good enough financial standing to qualify for a loan without a cosigner.

Individuals with credit scores of 650 or higher will have no problem qualifying for loan refinancing through Eligible.

If your credit score is below this, you will need to otherwise prove that you have good financial habits.

You will likely qualify for a loan if you have at least two months of income saved, are current on rent payments, and spend less than you make.

If you are carrying too much personal debt, you may not qualify for loan refinancing.

Private Student Loans

Earnest began offering private student loans earlier this year.

It is a good option for those who need additional assistance outside of their federal loans.

Although Earnest does not allow loan refinancing applicants to apply with a cosigner, those applying for a private loan may apply with a cosigner.

Should I Refinance My Student Loan Through Earnest?

It is always important to consider the advantages and disadvantages of a loan refinancing company before closing on an offer.

Below are some points to consider before closing a loan through Earnest.

Advantages of Using Earnest Student Loans

Personalized Monthly Payments

This is perhaps one of the most unique aspects of Earnest. Known as their “precision pricing” model, this feature allows you to set what you would like your monthly payment to be and adjusts the loan term accordingly.

The loan term can be anywhere from five to 20 years.

Many other student loan lenders have set terms regarding repayment. Earnest’s precision pricing allows for unique loan periods that could help you meet your ideal monthly payments.

Skip one Payment Every 12 Months

If you make at least six months of consecutive payments on time, Earnest will give you the option of skipping a payment on your loan every 12 months. It is worth noting that the payment isn’t simply forgiven.

Instead, Earnest will spread out that payment over the remainder of your term and adjust your interest rate accordingly. The maturity date on your loan will also be extended.

It isn’t advised that you take advantage of this at every opportunity, but it can certainly help if money becomes tight at some point over the course of your loan.

Competitive Rates

Among its competitors, Earnest offers some of the lowest APRs around. Fixed rates begin at 3.24% APR for private student loans, while variable rates start at 1.19% APR.

No Additional Fees

Earnest does not charge any late fees, prepayment penalties, origination fees, or application fees. This means that all payments will go towards paying off the remainder of your loan.

Services Loans In-house

One of the benefits of refinancing through Earnest is that they service all of their loans. Many loan refinancing companies will consolidate your loan and then sell that loan to another company.

This can mean a toss-up in regards to the service you receive on the loan.

With Earnest, you never have to worry that your loan will be serviced by a third party.

Visit Earnest.com

Disadvantages of Using Earnest Student Loans

No Cosigner

One of the most notable downsides of Earnest is that they do not allow borrowers to apply with a cosigner. This can be a problem for borrowers with below-average credit scores or unestablished credit.

Not Available in Every State

Unfortunately, Earnest loans are not available to borrowers in every state. They do not offer loan refinancing in Alaska, Illinois, Minnesota, New Hampshire, Ohio, Tennessee, or Texas.

Variable rates are also not available to borrowers in Alaska, Illinois, Minnesota, New Hampshire, Ohio, Tennessee, or Texas.

Navient Ownership

It is worth noting that Earnest is owned by Navient. Navient is a student loan servicer that has been the target of several lawsuits regarding questionable servicing practices.

Earnest is run as a separate unit within Navient and continues to service its own loans.

It remains unclear the role that Navient plays in servicing loans taken out through Earnest.

How Do I Get Started With Earnest?

In order to get a rate, Earnest will perform a credit check. Earnest claims that their credit approval takes only two minutes, but there are some caveats to this.

Because Earnest takes a big-picture approach when it comes to your finances, this means verifying a lot more information than just your FICO score.

In order for Earnest to get a sense of your finances as a whole, this means lots of paperwork and information to verify.

Frustrating as it is, this could mean that you can get a lower rate than you otherwise would through another private lender.

Get Started With Earnest

What about Loan Deference or Forbearance?

In terms of deferment after graduation, Earnest will continue any grace period from your previous lender for up to nine months.

Earnest also allows borrowers to defer their student loans for up to 36 months if they are in pursuing a graduate degree, in the Peace Corps, or in the military.

Interest will continue to accrue during this deferment period.

Borrowers can apply for forbearance if they are experiencing economic hardship, such as unemployment or excessive debt burden. Voluntary resignation does not qualify as terms for unemployment and will likely be rejected as a reason for forbearance.

They will allow borrowers to put their loans into forbearance for up to 12 months. Earnest typically requires that borrowers make at least three months of loan payments before applying for forbearance

Like loan deferment, a forbearance period will continue to accrue interest. Any forbearance period will also be reported with credit agencies but likely will not affect your credit score.

Should You Choose Earnest?

Earnest is the only lender to offer low rates to people with average credit scores because of their expanded definition of financial well-being. This is wonderful news for people with credit scores in the mid-600s, but may not be the best option for those with credit scores above 700.

Earnest certainly doesn’t offer the lowest rates on the market, which is why it is always wise to shop around before deciding on a company to refinance your loan. There are several tools to help you do this, such as Credible. Be sure to consider all options to ensure you are getting the best rate for your loan.

Facebook LinkedIn Twitter

About the Author

Jeff Rose, CFP® is a Certified Financial Planner™, founder of Good Financial Cents, and author of the personal finance book Soldier of Finance. Jeff is an Iraqi combat veteran and served 9 years in the Army National Guard. His work is regularly featured in Forbes, Business Insider, Inc.com and Entrepreneur.

Facebook Twitter LinkedIn


You Might Also Enjoy

9 Best Personal Loans of 2022

9 Best Personal Loans of 2022

10 Best Debt Consolidation Loans for June 2022

10 Best Debt Consolidation Loans for June 2022

Best Loans for People with Bad Credit

Best Loans for People with Bad Credit

7 Best Student Loan Refinance Companies of 2022 - as of June

7 Best Student Loan Refinance Companies of 2022 - as of June

Should I File for Bankruptcy?

Should I File for Bankruptcy?

Almost Debt-Free to Nearly $1 Million in Debt: Why We Moved to Nashville

Almost Debt-Free to Nearly $1 Million in Debt: Why We Moved to Nashville

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

  • Make Money
  • Manage Money
  • Invest
  • Taxes
  • Insurance
  • Retirement
  • Banking
  • Home
  • Credit
  • Debt
  • About
  • Contact
  • Do Not Sell My Personal Information
  • Facebook LinkedIn Twitter

© 2022 Good Financial Cents®. All Rights Reserved. | Privacy Policy | Disclaimer | Licenses & Disclosures

All written content on this site is for information purposes only. Opinions expressed herein are solely those of AWM, unless otherwise specifically cited. Material presented is believed to be from reliable sources and no representations are made by our firm as to another parties’ informational accuracy or completeness. All information or ideas provided should be discussed in detail with an advisor, accountant or legal counsel prior to implementation.

All third party trademarks, including logos and icons, referenced in this website, are the property of their respective owners. Unless otherwise indicated, the use of third party trademarks herein does not imply or indicate any relationship, sponsorship, or endorsement between Good Financial Cents® and the owners of those trademarks. Any reference in this website to third party trademarks is to identify the corresponding third party goods and/or services.