Earnest Student Loans: A Money Review

When scholarships and federal aid fall short, many families turn to private student loans to bridge the gap in college funding. Navigating the world of private student loans can seem daunting, but with careful research and comparison, you can find the lender that best fits your needs. One such lender to consider is Earnest. This comprehensive review explores Earnest’s offerings, weighing its advantages and disadvantages to help you make an informed decision about financing your education.

Earnest Student Loans: An Overview

Earnest is a private student loan lender that provides a range of financial products, including student loans and student loan refinancing. They offer loans to undergraduate and graduate students, as well as parent loans. Earnest stands out due to its flexible repayment options, including multiple repayment terms and in-school payment choices.

The Pros of Earnest Student Loans

Earnest offers several attractive benefits that make it a competitive option in the private student loan market:

• No Fees: Earnest distinguishes itself by not charging any fees whatsoever. This includes application fees, origination fees, prepayment penalties, and even late fees.
• Extended Grace Period: Earnest provides a nine-month grace period after graduation, leaving school, or dropping below half-time enrollment. This extended grace period gives borrowers extra time to secure employment and stabilize their finances before repayment begins.
• Rate Match Guarantee: If you receive a lower interest rate offer from another lender after applying for a loan with Earnest, they will match that rate and give you a \$100 Amazon gift card. To be eligible, you must have a completed application, provide documentation of the competitive offer, and have a valid email address. The offer must not include any discounts.
• Skip-a-Payment Program: Earnest allows borrowers to skip one monthly payment per year without penalty. While interest continues to accrue during this skipped month, the borrower will not be reported as delinquent to credit bureaus.

The Cons of Earnest Student Loans

While Earnest offers numerous benefits, there are also some potential drawbacks to consider:

• No Cosigner Release Option: Earnest does not offer a cosigner release program. The only way to remove a cosigner from the loan is to refinance the loan entirely in the student’s name.
• No Loans for Associate’s Degrees: Earnest exclusively provides loans to students pursuing bachelor’s and graduate degrees, as well as to parents. Students seeking funding for a two-year associate’s degree will need to explore other lending options, starting with federal student loans.

A Closer Look at the Pros

• Fee-Free Lending: While many lenders have eliminated application, origination, and prepayment fees, Earnest sets itself apart by also waiving late fees. This can provide significant relief for borrowers who occasionally miss a payment due date.
• Generous Grace Period: The standard grace period for most student loans is six months. Earnest’s nine-month grace period provides borrowers with additional breathing room to find a job and adjust to post-graduation life before loan payments begin.
• Rate Match Guarantee: This feature encourages transparency and competition among lenders. If you find a better rate elsewhere, Earnest is willing to match it, ensuring you get the most competitive interest rate possible.
• Skip-a-Payment Flexibility: Life can be unpredictable. The ability to skip one payment per year without penalty can be a valuable safety net during unexpected financial hardships.

Understanding the Cons

• Cosigner Release Limitations: A cosigner takes on significant risk by guaranteeing a student loan. Many lenders offer a cosigner release option after a certain period of on-time payments, allowing the cosigner to be removed from the loan agreement. The absence of this option with Earnest means the cosigner remains responsible for the loan until it is paid off or refinanced.
• Focus on Four-Year Degrees: By limiting its loan offerings to bachelor’s and graduate degrees, Earnest excludes students pursuing associate’s degrees. These students will need to seek funding from other sources, such as federal student loans or other private lenders that cater to two-year programs.

Earnest’s Student Loan Offerings

Earnest provides a variety of private student loan products tailored to different academic programs and borrower needs:

• Undergraduate Loans: These loans can cover any college-certified expenses, including tuition, books, laptops, and study abroad programs.
• Graduate Student Loans: Graduate students can access the same benefits as undergraduate borrowers, with the added flexibility of no enrollment requirement.
• MBA Loans: Students pursuing an MBA can apply for loans with the same terms and benefits as graduate student loans.
• Medical School Loans: Earnest offers funding for qualified medical school applicants, with the option to defer payments during residency or internship.
• Law School Loans: Law school students can access private student loans through Earnest, with terms aligned with the graduate student loan package.
• Cosigned Loans: Applying with a creditworthy cosigner can increase the likelihood of approval and potentially lower the interest rate.
• Parent Loans: Parents, guardians, and sponsors can take out private parent student loans for a prospective student.
• International Student Loans: Earnest offers loans to international students pursuing specific master’s degrees (MBA, Engineering) or law degrees. These loans are currently available without a cosigner to citizens of Canada, India, Mexico, and South Korea, with plans to expand the program in the future.

Loan Application Process

The application process is designed to be convenient, with the ability to apply and upload documents online via computer or mobile device. Loan approval decisions are typically made within one day. Once the loan is signed, Earnest will send the funds directly to the school. Earnest services its own loans, meaning you’ll work with them throughout the entire loan lifecycle, from origination to repayment.

Interest Rates and Terms

Earnest’s private student loan terms and interest rates vary depending on the loan type and the borrower’s credit history. Applying with a cosigner can potentially lower the interest rate. Earnest offers both fixed and variable interest rate options. As of August 2025, fixed rates range from 3.19% to 16.49%, while variable rates range from 4.99% to 17.10% (both starting rates include an autopay discount).

Financial Stability and Reputation

Founded in 2013, Earnest has served over 200,000 students and parents. It was acquired by Navient in 2017 and operates as an independent subsidiary. Earnest acquired the scholarship application platform Going Merry in 2021 and has partnered with Nova Credit to expand its international private student loan program.

Accessibility and Customer Service

Earnest is an online lender, making it accessible to anyone with internet access. They offer a quick eligibility check on their website to assess potential loan options. Earnest provides customer support via email (hello@earnest.com) and phone (1-888-601-2801), available Monday through Friday from 5 a.m. to 5 p.m. PST. Their website also features a comprehensive Help Center and a virtual assistant chatbot to answer frequently asked questions.

Customer Satisfaction

Earnest is accredited by the Better Business Bureau (BBB) and holds an A+ rating. While some complaints on the BBB site mention issues with payment modifications and loan denials after pre-approval, customer reviews on TrustPilot are generally positive, averaging 4.6 out of 5 stars based on thousands of reviews.

Frequently Asked Questions

• Is Earnest a legitimate lender? Yes, Earnest is a legitimate company that provides private student loans to qualified borrowers.
• Are Earnest loans federal student loans? No, Earnest offers private student loans, not federal loans. Federal student loans are issued by the U.S. Department of Education.
• Is Earnest a good option for student loans? Earnest offers competitive rates, flexible repayment options, and no fees, making it a potentially good option for many students. However, it’s essential to compare Earnest’s offerings with other lenders and consider your individual financial situation before making a decision.
• Are Earnest student loans eligible for forgiveness? Earnest loans are not eligible for federal student loan forgiveness programs. However, they may qualify for state or local forgiveness programs.

Choosing the right student loan lender is a crucial step in financing your education. By carefully evaluating the pros and cons of lenders like Earnest, you can make an informed decision that aligns with your financial goals and helps you achieve your academic aspirations.