Ascent vs Earnest: Private student loans compared
When comparing Ascent vs Earnest for private student loans, the choice often comes down to your credit history and flexibility needs. Ascent is generally the better option for students with limited credit history or those who want to qualify independently, thanks to their unique outcomes-based loan program. Earnest, on the other hand, is often the superior choice for borrowers (or cosigners) with strong credit profiles who want to optimize their interest rates and access flexible repayment features like skipping a payment.
For parents concerned about protecting their own financial standing, and students worried about managing future debt, choosing the right lender is a critical step. Both Ascent and Earnest are reputable, top-tier lenders, but they serve slightly different borrower profiles. This guide covers everything you need to know to make an informed decision, including interest rate structures, eligibility requirements, loan terms, and exclusive benefits.
You’ll learn exactly how these two lenders stack up against each other, allowing you to choose the financing path that aligns best with your family’s financial goals. Whether you prioritize building credit independently or securing the absolute lowest rate possible through a creditworthy cosigner, understanding these differences will help you borrow with confidence.
Context: How to use this comparison
Before diving into the specific features of Ascent and Earnest, it is essential to understand where private student loans fit into your broader college funding strategy. Private loans are designed to fill the funding gap that remains after you have exhausted all other options. You should always maximize scholarships, grants, and federal student loans first, as federal loans offer protections—such as income-driven repayment plans and loan forgiveness programs—that private lenders typically cannot match.
According to Mark Kantrowitz, financial aid expert, “Private loans can be a good option when federal loans don’t cover the full cost of attendance.” Once you have determined that additional funding is necessary, the goal becomes finding a loan that offers the most competitive cost and the right safety nets for your situation.
When comparing private lenders, focus on four key factors: interest rates, eligibility flexibility, repayment options, and unique borrower protections. The “best” lender is subjective; it depends entirely on your specific credit profile and repayment preferences. For example, a student applying alone will have different priorities than a parent co-signing a loan.
It is also important to note that checking your rates with private lenders like Ascent and Earnest typically involves a soft credit pull. This means you can see what interest rates and terms you might qualify for without impacting your credit score. This allows you to shop around and compare actual offers risk-free before submitting a formal application, which would result in a hard credit inquiry.
Quick comparison: Ascent vs Earnest at a glance
To help you quickly assess which lender might align with your needs, the table below outlines the core features, rates, and terms for both Ascent and Earnest. This high-level overview highlights the primary differences in their loan products, allowing you to see where each lender excels.
| Feature | Ascent | Earnest |
|---|---|---|
| Fixed APR Range | Competitive fixed rates available (rates vary by creditworthiness) | Competitive fixed rates available (often lower for high-credit borrowers) |
| Variable APR Range | Variable rates available | Variable rates available |
| Loan Amounts | $2,001 up to Cost of Attendance ($200,000 aggregate limit typically) | $1,000 up to Cost of Attendance (Aggregate limits apply) |
| Loan Terms | 5, 7, 10, 12, 15, or 20 years | 5, 7, 10, 12, 15 years |
| In-School Repayment | Deferred, Interest-only, $25 Flat, Immediate Repayment | Deferred, Interest-only, $25 Fixed, Full Principal & Interest |
| Origination Fee | None | None |
| Late Fee | Typically 5% of past due amount (min/max limits apply) | None |
| Cosigner Release | Available after 12 or 24 consecutive on-time payments (subject to eligibility) | Not available for student loans refinanced later; available on some in-school loans (check specific terms) |
| Autopay Discount | 0.25% – 1.00% (depending on loan type) | 0.25% |
| Standout Feature | Outcomes-Based Loan: Qualify without cosigner based on GPA/Major | Skip-A-Payment: Skip one payment every 12 months |
Source: AscentFunding.com and Earnest.com — terms effective as of October 2024. Rates and terms are subject to change.
Small differences in interest rates can have a massive impact on the total cost of a loan. For example, a 1% difference in APR on a $20,000 loan repaid over 10 years equals approximately $1,100–$1,200 in additional interest. Furthermore, features like cosigner release are critical for parents who want to help their children secure funding now but wish to be removed from the financial obligation once the graduate is employed and financially stable.
While the table above provides the raw data, the following sections will break down exactly how these rates are determined, who is eligible to apply, and which unique benefits could save you money or stress during repayment.
Interest rates: Ascent vs Earnest
Interest rates are often the deciding factor for many families. Both Ascent and Earnest offer competitive fixed and variable interest rates, but they determine these rates using different methodologies.
According to Ascent as of October 2024, their rates are determined based on the borrower’s (and cosigner’s) credit history, income, and the specific loan product selected. Ascent is distinct because they offer different rate structures for their cosigned loans versus their non-cosigned “outcomes-based” loans. Generally, the outcomes-based loans carry higher interest rates than cosigned loans because they represent a higher risk to the lender, but they provide access to funding that might otherwise be unavailable. Ascent also frequently offers an automatic payment discount, typically ranging from 0.25% to 1.00% depending on the specific loan type as of October 2024, which can significantly reduce the interest paid over the life of the loan.
Earnest is known for its “Precision Pricing” model. Rather than fitting borrowers into broad credit tiers, Earnest uses a more comprehensive underwriting process that looks at a wider array of financial data points. This allows them to offer highly customized rates that match a borrower’s specific budget. As of October 2024, Earnest offers a 0.25% autopay discount for borrowers who enroll in automatic payments. For borrowers with excellent credit scores and strong financial histories, Earnest often provides some of the lowest rates in the market because their model is designed to reward financial responsibility.
When choosing between fixed and variable rates with either lender, consider your tolerance for risk. Fixed rates remain the same for the life of the loan, providing predictable monthly payments. Variable rates may start lower but can fluctuate with market conditions, potentially increasing your monthly payment in the future. Your specific rate offer will depend heavily on your creditworthiness and whether you apply with a creditworthy cosigner.
Eligibility requirements: Ascent vs Earnest
Qualifying for a private student loan is the first hurdle for many students. The eligibility criteria for Ascent and Earnest differ significantly, particularly regarding students who do not have a cosigner.
Ascent’s eligibility:
Ascent is unique in the marketplace because of its focus on accessibility. They offer two distinct paths to eligibility: credit-based loans and outcomes-based loans.
According to Ascent as of October 2024, for credit-based loans (cosigned or non-cosigned), a credit score of roughly 660 or higher is often needed, along with a minimum income requirement usually around $24,000 for the current or previous year.
However, their Outcomes-Based Loan is the standout feature. This option allows college juniors and seniors (and sometimes sophomores) to qualify without a cosigner and without a credit score, provided they meet GPA requirements (typically 2.9+) and are within nine months of graduating. Ascent evaluates the student’s future earning potential based on their school, major, and graduation date rather than past credit history.
Earnest’s eligibility:
Earnest generally targets borrowers with established credit or those with strong cosigners. According to Earnest as of October 2024, the minimum credit score required is typically 650. However, Earnest looks beyond just the FICO score. Their eligibility assessment considers a borrower’s savings patterns, income trajectory, and debt-to-income ratio.
Earnest requires that the primary borrower or cosigner be a U.S. citizen or permanent resident (with a 10-year non-expired Green Card). Students must be enrolled at least half-time at a Title IV accredited school. Unlike Ascent, Earnest does not currently offer a specific non-credit-based loan product for undergraduates, meaning most undergraduate students will likely need a creditworthy cosigner to qualify.
According to Mark Kantrowitz, financial aid expert, “Most students will need a cosigner to qualify for a private student loan.” This reality makes Ascent’s non-cosigned option particularly valuable for students who cannot find a cosigner, while Earnest remains a top contender for families where a parent is willing and able to cosign to secure a lower rate.
Loan amounts, terms, and repayment options
Flexibility in how much you borrow and how you repay it can make a significant difference in your monthly budget after graduation. Both lenders offer robust options, but the details vary.
Loan amounts:
According to Ascent as of October 2024, borrowers can cover up to 100% of the school-certified cost of attendance, minus other financial aid. The minimum loan amount is typically $2,001, and the aggregate lifetime limit for undergraduate loans is generally capped at $200,000.
As of October 2024, Earnest also covers up to 100% of the cost of attendance, with a minimum loan amount of $1,000. Aggregate limits also apply, which include both federal and private student loans accumulated over the student’s education.
Loan terms:
Ascent offers a wide variety of loan terms, typically including 5, 7, 10, 12, 15, and sometimes 20-year repayment periods depending on the loan type (variable or fixed). This variety allows borrowers to choose between lower monthly payments (longer term) or lower total interest costs (shorter term).
Earnest also provides flexible terms, generally offering 5, 7, 10, 12, and 15-year options. A unique aspect of Earnest’s refinancing product (though less applicable to in-school loans) is the ability to choose an exact term limit to match a specific monthly payment budget, showcasing their emphasis on customization.
In-school repayment options:
Both lenders provide several ways to manage payments while the student is still in school:
- Deferred repayment: Make no payments while in school. Interest accrues and is added to the balance.
- Fixed repayment: Pay a small fixed amount (e.g., $25) every month to keep the habit of paying and offset some interest.
- Interest-only repayment: Pay only the interest charges each month to prevent the balance from growing.
- Full repayment: Start making full principal and interest payments immediately.
Both Ascent and Earnest offer a grace period after graduation—typically 9 months—before full repayment begins. This is generous compared to the standard 6-month grace period offered by federal loans and many other private lenders.
Fees comparison: What each lender charges
When calculating the true cost of a loan, fees can sometimes be a hidden burden. Fortunately, the private student loan market has moved away from many traditional fees, and both Ascent and Earnest are consumer-friendly in this regard.
Origination fees:
Neither Ascent nor Earnest charges an origination fee. This is a significant saving, as origination fees on some loans can run as high as 5% of the total loan amount, effectively reducing the cash available for tuition.
Prepayment penalties:
Both lenders allow borrowers to pay off their loans early without any penalty. This is a crucial feature for students who hope to land high-paying jobs and aggressively tackle their debt to save on interest.
Late fees:
This is one area where the two differ. According to Ascent as of October 2024, they may charge a late fee if a payment is not received within a certain number of days after the due date (typically 5% of the past due amount or a flat fee, whichever is less).
As of October 2024, Earnest does not charge late payment fees, adhering to their strict “no fees” policy. While this is a helpful safety net, borrowers should still strive to pay on time to avoid negative impacts on their credit reports.
Returned payment fees:
Earnest generally does not charge for returned payments (insufficient funds), adhering to their no-fee structure. Ascent may charge a fee for returned payments, consistent with standard banking practices.
Unique features: Ascent’s standout benefits
Ascent distinguishes itself with features designed to support students throughout their educational journey and into their careers. These benefits go beyond simple financing and offer tangible value for specific borrower needs.
1% cash back reward:
According to Ascent as of October 2024, borrowers can receive a 1% cash back reward on the principal amount of their loan upon graduation. To qualify, the student must meet certain criteria, such as graduating from the degree program associated with the loan and setting up automatic payments. This is a rare direct financial incentive that puts money back into the graduate’s pocket.
Outcomes-based loans:
As mentioned earlier, this is Ascent’s flagship differentiator. By allowing eligible juniors and seniors to borrow based on their future earning potential rather than current credit history, Ascent opens doors for students who lack cosigners. This feature is a game-changer for students whose parents cannot or will not cosign.
Cosigner release:
According to Ascent as of October 2024, borrowers can apply to release their cosigner after making 12 consecutive, on-time full principal and interest payments (subject to meeting credit and income requirements). For outcomes-based loans, this period may be 24 months. This is one of the shortest release periods in the industry, offering parents peace of mind that they won’t be liable for the loan indefinitely.
Student success resources:
Ascent invests heavily in borrower education, offering access to internship and career coaching, financial wellness courses, and scholarship giveaways. These resources are designed to help students succeed professionally, which in turn helps them repay their loans.
Unique features: Earnest’s standout benefits
Earnest focuses on flexibility and precision, creating a borrowing experience that adapts to the user’s life. Their features are particularly attractive to financially savvy borrowers who want control over their debt.
Skip-a-payment:
According to Earnest as of October 2024, borrowers can request to skip one payment every 12 months once they have entered full repayment. The skipped payment is moved to the end of the loan term, and interest continues to accrue, but this feature provides a critical safety valve during unexpected financial tight spots—like a car repair or moving expenses.
Precision pricing:
Earnest’s underwriting model allows them to offer rates tailored to a borrower’s specific financial health. This often results in highly competitive rates for borrowers with good credit. Additionally, their platform is known for its clean, user-friendly digital interface, making loan management simple.
Biweekly payments:
Earnest allows borrowers to set up biweekly payments (paying half the monthly amount every two weeks) rather than one monthly payment. Since there are 52 weeks in a year, this results in 26 half-payments, or 13 full payments per year. This simple strategy helps borrowers pay down their principal faster and save on total interest costs without significantly changing their monthly budget.
Customizable payment dates:
While many lenders assign a due date, Earnest allows borrowers to adjust their payment date to align with their paycheck schedule. This flexibility helps ensure that funds are available when the bill is due, reducing the stress of cash flow management.
Application process and customer experience
Applying for a private student loan can be stressful, but both Ascent and Earnest have streamlined their processes to be as digital and painless as possible.
The application experience:
Both lenders offer a fully online application process. You can start by checking your rate, which involves a soft credit inquiry. This step allows you to see potential interest rates and loan terms without affecting your credit score. If you like the offer, you proceed to the full application, which will require a hard credit pull.
For Ascent, the process may involve uploading transcripts or proof of enrollment, especially for the outcomes-based loan. Earnest may request access to bank account information to verify income and savings patterns as part of their comprehensive underwriting.
Timeline:
Approval timelines can vary. Pre-qualification is usually instant. Once the full application and documents are submitted, final approval typically takes a few days to a week. Following approval, the school must certify the loan amount, which depends on the university’s financial aid office timeline. It is always wise to apply at least 30 days before the tuition due date.
Customer support and hardship:
Both lenders are known for decent customer service, accessible via phone, email, and chat. Importantly, both offer hardship protections. If a borrower faces unemployment or economic distress, both Ascent and Earnest have forbearance options available (typically in 1-3 month increments), allowing borrowers to temporarily pause payments. This compassion is essential for young graduates navigating the early years of their careers.
Who should choose Ascent
Ascent is the clear winner for specific types of borrowers, particularly those who need flexibility regarding credit history.
You should choose Ascent if:
- You do not have a cosigner: If you are a junior or senior with a decent GPA but no established credit, Ascent’s outcomes-based loan is one of the few viable private options available.
- You want a fast cosigner release: For parents who are willing to cosign but want off the loan quickly, Ascent’s 12-month release option is among the fastest in the market.
- You want cash back: The 1% cash back reward at graduation is a nice bonus that can help with moving costs or a first loan payment.
- You are working on building credit: Ascent’s focus on students building their financial profile makes them a supportive partner for first-time borrowers.
Who should choose Earnest
Earnest is ideal for borrowers who prioritize low rates and payment flexibility, and who bring a strong financial profile to the table.
You should choose Earnest if:
- You have excellent credit (or a cosigner who does): Earnest’s precision pricing model rewards strong credit profiles with some of the most competitive rates available.
- You value a safety net: The “Skip-A-Payment” feature offers peace of mind that you have a backup plan for one month each year if money gets tight.
- You hate fees: With absolutely no late fees, origination fees, or returned payment fees, Earnest offers a worry-free fee structure.
- You want to pay off debt faster: The option for biweekly payments is a powerful tool for motivated borrowers who want to be debt-free sooner.
Ready to see your personalized rates? Compare offers from Ascent, Earnest, and other top lenders—checking rates won’t affect your credit score.
Frequently asked questions
Yes, Ascent is one of the few private lenders that offers a dedicated “Non-Cosigned Outcomes-Based Loan.” This option is available to eligible college juniors and seniors (and some sophomores) based on their GPA, major, and graduation date, rather than credit history alone.
No. As of October 2024, Earnest does not charge any origination fees, late fees, or prepayment penalties. This no-fee policy is a significant benefit for borrowers who want to avoid unexpected costs.
It depends on your credit profile. Earnest often offers lower rates for borrowers with excellent credit due to their precision pricing model. However, Ascent offers competitive rates and may be more accessible for borrowers with thinner credit files. Checking your rate with both lenders (via a soft credit pull) is the only way to know for sure.
According to Ascent as of October 2024, cosigner release is available after 12 consecutive on-time principal and interest payments (subject to eligibility). Earnest’s policy varies; while some in-school loans may offer cosigner release, refinanced loans typically do not. Borrowers should carefully check the specific terms in their loan agreement regarding cosigner release.
Yes. After you graduate and establish your own income and credit history, you can apply to refinance your student loans with a different lender to potentially secure a lower interest rate. For more details, check out our guide to student loan refinancing.
Choosing between Ascent and Earnest ultimately depends on your current financial situation and your future goals. Both lenders are excellent choices that provide safe, transparent funding for college, but they serve different needs.
Key takeaways:
- Ascent is the best choice for students who need to borrow without a cosigner or who want the fastest path to releasing a cosigner (12 months).
- Earnest is ideal for borrowers with strong credit who want to minimize costs with low rates, no fees, and flexible payment options like skipping a payment.
- Both lenders offer 9-month grace periods and cover up to 100% of the cost of attendance.
- Always exhaust federal options (FAFSA) before turning to private loans, as federal loans offer unique income-driven repayment protections.
Remember, you don’t have to guess. You can check your potential interest rates with both lenders in minutes without hurting your credit score. Seeing the actual numbers will give you the confidence to make the right choice for your education and your wallet.
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References and resources
To help you continue your research, here are direct links to the resources mentioned in this guide, along with additional helpful tools.
Lender resources:
College finance guides:
- Complete Guide to Private Student Loans
- FAFSA Guide: How to Apply for Federal Aid
- Federal vs. Private Loans: What You Need to Know
- How to Find and Apply for Scholarships
Government & official resources:
