Earnest Student Loan Consolidation and Refinance Review

Michael Lux Consolidation, Student Loan Blog, Student Loan Consolidation Reviews, Student Loans 7 Comments

Earnest Student Loan Consolidation

Interest Rates
Co-Signer Release
Loan Terms
Repayment Length


Earnest looks at your financial different than other lenders. Instead of just credit score and income, they look at other factors that show financial responsibility.

Article Updated on 7/3/19 to include the latest interest rate information.

The growing numbers of student loan consolidation companies makes it difficult to keep up with everyone in the market.  As more companies enter the fray, it becomes even harder to find what makes one lender different from the next.  One company bucking the student loan consolidation and refinancing trend is Earnest.

The Earnest sales pitch is that you will get better results with them because they are better at making lending decisions.  Where some lenders look only to FICO and year income, Earnest takes a look at the big picture.  This big picture approach makes looking into Earnest a wise decision for many refinance shoppers.  As a result, Earnest currently gets the 8th spot in our student loan refinance company rankings.

Meet Earnest Basics

Like most lenders, Earnest offers both fixed-rate and variable-rate consolidation loans.  Presently, Earnest has very competitive rates with their variable-rate loans starting at 2.41% and their faxed-rate loans starting at 3.36%.  One thing that makes Earnest a little different is that they offer more than the traditional 5, 10, 15 and 20 year loans.  Borrowers are able to choose repayment lengths that fall anywhere on the 5 to 20 year spectrum, meaning if 18 years is ideal for you, you get 18 years to repay your loan.

Earnest calls this feature “precision pricing”.  This sliding scale may not appeal to everyone, but it has two main advantages.  For long-term planners with specific deadlines, such as retiring in 12 years, or buying a home in seven, precision pricing could be ideal.  It also works nicely for the people who know exactly how much they have in their monthly budget.  If you can spare exactly $327.42 per month, you can get a plan that fits your specific need.

Like other legitimate lenders out there, Earnest doesn’t charge any pre-payment penalties or loan origination fees.  Paying back your loan is just paying back principal and interest.

Navient Purchase of Earnest

When this article was first published, Earnest was a student loan startup out to make a name with their flexible repayment options.

As time went by Earnest grew and was ultimately purchased by Navient, a massive student loan company with a questionable reputation.

Unsurprisingly, the $155 million purchase of Earnest has led to some changes.  Some Earnest customers now complain of things be less consumer friendly and less transparent.

Those looking to refinance their student loans in order to get away from Sallie Mae/Navient should look to other lenders offering refinancing and consolidation services.

Earnest Advantages

One thing that we love about Earnest is that they service all of their own loans.  Many consolidation companies will refinance your debt, but then sell the consolidated loan to another company.  The quality of the new service you get can be a mystery.  Earnest keeps repayment in-house.  It doesn’t guarantee better service, but it is definitely better than the alternative.

The biggest advantage with Earnest, and the reason many people may chose to work with them, is their “big picture” approach to lending decisions.  The believe that by looking at more financial information, they can make a smarter decision when it comes to application approvals.  We reached out to Earnest to get an example of someone who could benefit from their method, and they provided the following response:

“We have a client who is a librarian with a Masters in English Literature. She makes a public librarian’s salary and is incredibly financially responsible — she pays her bills in full and on time and saves a substantial amount of money in both investment and non-investment accounts. But she also doesn’t have a great credit score — it’s not bad, but not great — because she simply doesn’t use traditional credit cards and credit products. That’s someone who could be instantly denied by a lot of traditional lenders (as well as Earnest competitors), but when we look at that profile, we see someone who is tremendously responsible with her money and deserves our best rates. We think our approach unlocks access to credit for a lot of people who truly deserve it.”

A couple of things stand out from this example: a less than perfect credit because of a limited history, and building a retirement account.  If you are someone who is very careful with their money, i.e. saving more than you spend and putting money aside for retirement, Earnest is definitely worth exploring.

Cause for Concern…

Earnest advertises a 2 min application for a credit approval, but practically speaking, we do have some concerns about this process.  The big advantage of Earnest, the big picture approach, could also become a big issue during the application and loan consolidation process.  Because Earnest examines more financial information, it means that Earnest will need access to more financial information.  It means more records to verify, and paperwork to put into place.

Ultimately, if sending in a little bit of extra information lowers your interest rate, it is time well spent, but it does increase the odds of headaches along the way.

Finally, Earnest provides consolidation services for federal student loans.  While this can be a smart financial move for some, for others it is a huge mistake.  Before you consolidate, make sure you know whether or not student loan consolidation is for you.

The Bottom Line

Earnest is probably the ideal option for people who are responsible with their money, but might not have a huge income or a perfect credit score.  If you think your credit score or yearly income don’t tell the full story, Earnest could be the ideal option.

Given that Earnest has loans with rates starting below 3% and a unique approach, they immediately get a spot in the top ten of our student loan consolidation rankings.  As we get feedback from borrowers about their experience (especially when it comes to the paperwork necessary to make the loan happen), we will adjust their rank accordingly.

To check out the rate you qualify for with Earnest, apply here.

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Alan Robert
Alan Robert

It seems there are a lot of negative reviews on this company around the internet. Most of them are people who are angry that they got denied. I get it, the application is extensive and invasive. However, most of these new loan companies require more than just a credit score to approve a loan. This allows for less defaults and in return they can give their customers a lower rate. I managed to get my crazy grad plus rate of almost 8% down to 4.5%!

Here are my stats for comparison: Income $150,000/year, savings $18,000, $0 retirement(I know, but I am maxing out my 401k now!), $10,000 credit card debt at the time, Loan amount $81,000. I graduated in may and applied with just an offer letter in july(didnt even get a pay check yet), something that SOFI wouldnt even consider. Everything went smooth after approval!

Reply to  Alan Robert

Yes, you’re correct. However, the reason people are upset isn’t because a random lender denies them. It’s because Earnest pitches a great story about how the founder had high-rate loans he couldn’t afford, and refinancing was an impossible dream but OMG it’s totally possible now and Earnest can make it happen.

If they came out and said “you need to be a highly, highly-qualified person [such as yourself], because we seriously don’t want any risk here”, I think we’d be fine with it. But to pretend that you’re a company out to help people when you’re really not, to require they sign over their banking credentials and the rest of your financial life, just to turn you down… that leaves a lot of people with a sour taste in their mouths.


You had to give them your bank account log on??? Why on earth would they need that? So that everyone in the company can log onto your bank account and do whatever they want with your money? Unbelievable. 🙁


I applied for a loan with very good credit and very healthy savings. They asked me for a picture ID and a copy of my taxes, then declined my request. They blamed it on income variability and income (I am self-employed) but I really dislike the intense scrutiny, as well as the request for access to your bank accounts and picture ID, and then a weak excuse for declining. I contacted them, and got more weak responses, but I feel that I was redlined. Also, i notice that most of the positive reviews are from Anonymous sources and all seem to follow certain clear story and reasoning patterns. I think they are probably fake. My stats are $60,000 loan, $60k in the bank, Income tax shows $50k/ year 730 credit. Denied


this loan company is corrupt. you should never have to give your checking account login info to a loan company to apply for a loan. what are they looking for? How many times you go to Star Bucks?


Just got off phone with Ernest. Was told that they do NOT ALLOW CO-SIGNERS. Seems strange for a lender who takes such extra effort to lower risk. I would think that is the point of having a strong co-signer.


I had a great experience with Earnest. I saved more than $40K by refinancing my student loans with them. They were quick and very responsive throughout the process. It took a few weeks to finalize and sign. I highly recommend it.