EDvestinU is a funny-sounding student loan refinance company that offers an excellent deal to certain student loan borrowers.
EDvestinU scores points for being a non-profit and for consumer transparency.
The short-term interest rates are not the most competitive, but EDvestinU excels in the long-term loan categories. As a result, EDvestinU ranks well in our student loan refinance company rankings.
EDvestinU Refinance Basics
| EDvestinU Overview | |
|---|---|
| Loan Terms | 5, 10, 15, and 20 Years |
| Variable Rate Loans | 8.03 - 9.78% |
| Fixed Rate Loans | 6.00 - 9.37% |
| Minimum Refinance Amount | $7,500 |
| New Borrower Bonus | $200 |
Borrowers can borrow a maximum of $200,000 in a student loan refinance.
EDvestinU is also a rarity in the student loan refinance world as they will allow Parent PLUS loans to be refinanced (by the parent).
Additionally, applicants for an EDvestinU loan are not required a college degree. Most lenders require a degree.
Finally, like the other legit refinance companies, there are no loan origination fees or prepayment penalties from EDvestinU.
Reviewing the EDvestinU Advantages
The longer you need to repay an EDvestinU loan, the better the interest rates get compared to other lenders. The 15-year fixed-rate and the 20-year fixed-rate loans are among the very best student loan refinance rates available.
EDvestinU is also one of the lenders participating in the Credible Platform, which allows borrowers to check actual rates offered by a number of different companies and get a $200 bonus for refinancing.
Lastly, EDvestinU gets major points for their transparency in the cosigner release program. Many lenders offer a cosigner release, but they always say that it is subject to credit approval. EDvestinU sets out the specific requirements to get a release. A borrower must: make 36 consecutive and on-time payments, have a FICO score above 699, and make more than $30,000 per year for student loan balances up to $100,000 or make more than $50,000 per year for balances above $100,000. Additionally, the borrower needs a debt-to-income rate of 43% or less, and cannot have any foreclosures, repossessions, wage garnishments, unpaid judgments, or bankruptcy proceedings.
While the requirements for a cosigner release are quite strict and take longer than some other lenders, we love that borrowers know exactly what is required to get the release. Hopefully, more lenders will adopt this policy.
EDvestinU Disadvantages
Even though we like the EDvestinU transparency on their cosigner release program, we do not like the fact that EDvestinU places such an emphasis on having cosigners.
In researching EDvestinU we used their refinance calculator to see what rates were offered for various circumstances. We noticed a disturbing pattern: In order to get the lowest advertised rates a cosigner with a FICO credit score above 800 is required. EDvestinU’s refinance calculator indicates that even for borrowers with credit scores of 800 or more, the only way to get the best advertised rate is with a cosigner.
From EDvestinU’s perspective, this policy makes sense. Having a cosigner makes the loan less risky, so it is somewhat understandable that they can offer a lower rate. That being said, we hate to see such an emphasis on having a cosigner because we think using a cosigner to refinance should be viewed as an option of last resort.
Like nearly all other student loan refinance companies, EDvestinU refinances federal student loans.
By refinancing federal loans with a private lender, borrowers give up all of the federal perks that come with the loan such as income-driven repayment plans and student loan forgiveness. For some borrowers, the perks are unnecessary and the lower interest rates justify the move. For others, it can be a mistake. The key is for borrowers to understand what they are giving up when they go through the refinance process.
Final Thoughts on EDvestinU
If you are looking to refinance your student loans for an extended period of time and you have a cosigner, EDvestinU may be the best option available.
EDvestinU is not without drawbacks, but it is unquestionably one of the better lenders on the market, and borrowers who are shopping refinance options would be wise to check their rate with EDvestinU.
