Ascent vs Edly: Private student loans compared

In the Ascent vs Edly decision, choose Ascent for predictable costs and traditional loan protections, or choose Edly for income-based flexibility that protects you if your post-graduation earnings are low. Ascent offers standard private loans with fixed terms and cosigner release options, while Edly provides Income Share Agreements (ISAs) where repayment scales with your salary.

This distinction addresses the primary pain points for families: Parents often worry about cosigner credit risks and debt-to-income ratios, while students worry about managing fixed monthly payments when their early-career income is uncertain. This guide maps these trade-offs clearly.

You’ll learn how each lender handles eligibility, interest rates versus income shares, repayment flexibility, and which borrower profiles each company serves best. Before applying for either, ensure you have exhausted all federal financial aid options, including grants and federal loans, as they offer protections private lenders cannot match.

Context: Traditional private loans vs income share agreements

To make an informed choice between Ascent and Edly, you must first understand the structural difference between a traditional private student loan and an Income Share Agreement (ISA). These are two fundamentally different financial products with distinct rules, risks, and benefits.

Traditional private student loans (Ascent)
A traditional loan functions like a mortgage or car loan. You borrow a specific principal amount, and interest accrues at a fixed or variable Annual Percentage Rate (APR). You agree to pay back the principal plus interest over a set term (e.g., 10 years). The monthly payment is generally a fixed amount regardless of how much money you earn after graduation. The total cost of the loan is relatively predictable upfront, provided you make on-time payments.

Income share agreements (Edly)
An ISA is not a loan in the traditional sense. Instead of an interest rate, you agree to pay a fixed percentage of your future gross income (the “income share percentage”) for a set period. If you earn a high salary, your monthly payments increase; if you earn a low salary, they decrease. If your income falls below a specific “minimum income threshold,” you make no payments at all for that month. Because payments fluctuate with earnings, the total amount you repay is uncertain—you could pay back more or less than a traditional loan depending on your career success.

Both Ascent and Edly are legitimate financing options, but they require different mindsets. Ascent offers certainty and structure, while Edly offers flexibility and downside protection against low wages.

Quick comparison: Ascent vs Edly at a glance

When comparing these two options, the most immediate differences lie in how they calculate what you owe and who is responsible for the debt. The table below provides a high-level snapshot of how Ascent and Edly stack up against one another to help you orient your decision.

Source: Ascent and Edly official websites (details current as of January 2025).

Interpreting the differences
The most critical takeaway from this comparison is the nature of the obligation. With Ascent, you owe a debt that must be repaid on a schedule, usually requiring a creditworthy cosigner to secure the best rates. With Edly, you are leveraging your future income potential; while you don’t need a cosigner, your school must be a partner for you to be eligible. This makes Edly a more niche product compared to Ascent’s broader availability.

Ascent private student loans: Overview and key features

Ascent Funding has established itself as an innovative leader in the private student loan space by offering a wider range of products than many legacy banks. While they offer standard cosigned loans, they are particularly notable for creating pathways for students who might not have a cosigner or a long credit history.

Loan products
Ascent breaks its offerings into three main categories:

• Cosigned credit-based loan: This is their standard product, offering the most competitive rates. It requires a creditworthy cosigner (usually a parent or guardian) and is available to undergraduate and graduate students.
• Non-cosigned credit-based loan: Designed for undergraduate juniors and seniors or graduate students who have established their own credit history and income. This allows independent students to borrow without involving a parent.
• Outcomes-based loan: This is Ascent’s most unique differentiator. It is a non-cosigned option for college juniors and seniors that bases eligibility on future potential rather than just credit history. According to Ascent’s website, factors like GPA (typically 2.9+), school, major, and graduation date are used to approve funding.

Key differentiators
Ascent stands out by directly addressing the biggest hurdle in private lending: the cosigner requirement. According to Mark Kantrowitz, financial aid expert, “Most students will need a cosigner to qualify for a private student loan.” Ascent challenges this norm with their Outcomes-Based loan, providing access to students who lack family financial backing but have strong academic performance.

Additionally, Ascent offers a 1% cash back reward upon graduation, provided the student meets specific criteria. They also offer a cosigner release program, which allows the primary borrower to apply to remove the cosigner from the loan after making 24 consecutive on-time full principal and interest payments. This feature is highly attractive to parents who want to help their children get funded but do not want the debt on their credit report indefinitely.

Edly income share agreements: Overview and key features

Edly takes a completely different approach to education financing. Formerly known as Lumni, Edly is a marketplace for Income Share Agreements. They do not lend money in the traditional sense; rather, they facilitate agreements where investors fund a student’s education in exchange for a percentage of their future earnings.

How the Edly ISA works
When you receive funding through Edly, you do not accrue interest. Instead, you agree to the following terms:

• Income share percentage: The slice of your pre-tax monthly income you will pay back (e.g., 5%).
• Repayment term: The number of monthly payments you must make (e.g., 48 payments).
• Minimum income threshold: A salary floor (e.g., $30,000). If you earn less than this amount, your monthly payment is $0.
• Payment cap: A maximum limit on the total amount you will ever pay back, protecting high earners from paying an exorbitant amount.

Key differentiators
The primary advantage of Edly is the built-in downside protection. If a student graduates and struggles to find employment, or takes a low-paying job, they are not burdened with high monthly loan payments. The obligation pauses automatically. This aligns the cost of the financing with the value of the degree in the labor market.

However, availability is the main constraint. Edly only works with specific partner schools and programs—often those with strong employment data, such as coding bootcamps, nursing programs, or specific universities. Unlike a bank loan that can be used at almost any accredited college, Edly requires your program to be in their network.

Eligibility requirements: Who qualifies for each lender

Before comparing rates, you need to know if you can even get your foot in the door. Ascent has broader eligibility regarding schools, while Edly has stricter school requirements but looser credit requirements.

• Citizenship: You are a U.S. citizen, permanent resident, or DACA recipient (specific documentation required).
• School: You are enrolled at least half-time at an eligible Title IV-accredited institution.
• Credit (Cosigned): According to Ascent’s website, you have a cosigner with a minimum credit score (typically around 660-680+) and a minimum income (typically $24,000+).
• Credit (Non-Cosigned): You are a junior or senior with a GPA of 2.9 or higher (for the Outcomes-Based loan) OR have 2+ years of credit history and income (for the Credit-Based loan).
• Academic Progress: You are meeting Satisfactory Academic Progress (SAP) standards.

• School: You are attending one of Edly’s specific partner schools or programs. This is the most common disqualifier.
• Program type: You are typically in a career-focused major or vocational program with strong job placement data.
• Citizenship: You are a U.S. citizen or permanent resident.
• Credit: You do not need a credit check or a cosigner. Underwriting is based on the program you are attending and your academic standing.
• Enrollment: You must verify enrollment and are usually required to be close to graduation (junior/senior year or short-term programs).

Summary: If you have a creditworthy cosigner, you will likely qualify for Ascent at most colleges. If you lack a cosigner but are in a high-ROI program at a partner school, Edly is a strong contender.

Loan amounts and eligible expenses

Understanding how much you can borrow is essential for planning your academic year budget. The funding limits for Ascent and Edly differ significantly based on their business models.

Ascent loan limits
According to Ascent’s official website, Ascent offers substantial borrowing power suitable for covering the entire cost of university attendance.

• Minimum: Usually $2,001 (state minimums may vary).
• Maximum: Up to 100% of the school-certified Cost of Attendance (COA). This includes tuition, fees, room, board, books, and transportation.
• Aggregate limits: There is a lifetime limit on how much you can borrow, which generally caps around $200,000 for graduate students, though this varies by degree type.

Edly funding amounts
Edly’s funding is more targeted and program-specific.

• Amounts: Funding limits are determined by the specific agreement with the school. It often covers tuition and fees directly but may not always provide extra funds for living expenses (room and board), depending on the specific program’s setup.
• Structure: Because the risk is held by investors, the amounts are often capped lower than traditional private loans to manage risk exposure.

If you need to cover rent, groceries, and a laptop in addition to tuition, Ascent’s “Cost of Attendance” coverage is generally the more comprehensive option.

Rates and total cost comparison

This section addresses the most complex part of the comparison: calculating the true cost of borrowing. With Ascent, the cost is interest; with Edly, the cost is a share of your future labor.

Ascent rates and costs
Ascent offers both fixed rates of 2.89% - 15.31% and variable rates of 3.99% - 15.40%. As of January 2025, these rates depend heavily on the borrower’s (or cosigner’s) creditworthiness.

• Fixed rates: Your rate stays the same for the life of the loan, providing payment stability.
• Variable rates: Your rate can fluctuate with market conditions (typically tied to the SOFR index), meaning your payment could rise or fall.
• Discounts: According to Ascent’s website, Ascent offers a 0.25% interest rate reduction if you sign up for automatic payments.

Edly “rates” and costs
Edly does not use an APR. Instead, the cost is variable based on your success.

• Income share: According to Edly’s official website, income share percentages typically range from 2% to 10% of your gross monthly income.
• Repayment cap: Most Edly contracts include a cap (e.g., 1.5x or 2.0x the funded amount). This means if you borrow $10,000, you might never pay back more than $15,000 or $20,000, regardless of how high your salary goes.

The cost trade-off
According to Jason Delisle, higher education finance expert, “The private market can and does innovate—offering options federal loans don’t, such as variable rates or targeted underwriting.” This innovation creates a distinct trade-off.

Imagine you receive $15,000 in funding.

With Ascent, you might pay back a total of $22,000 over 10 years at a standard interest rate. This number is relatively fixed.

With Edly, if you land a high-paying job immediately, you might hit the payment cap and pay back $25,000 quickly. However, if you earn a modest salary, you might only pay back $16,000 over the term. If you are unemployed, you pay $0.

Repayment terms and flexibility

How you pay back the money is just as important as how much you pay. Flexibility can be a financial lifesaver during early career transitions.

Ascent repayment
Ascent operates on a traditional schedule. According to Ascent’s website, you choose a loan term—typically 5, 7, 10, 12, or 15 years.

• In-school options: You can choose to make interest-only payments, fixed $25 payments, or defer all payments until after graduation.
• Grace period: You typically get a 9-month grace period after graduation before full principal and interest payments begin (longer than the federal 6-month standard).
• Hardship: Ascent offers deferment and forbearance options (up to 24 months in some cases) for unemployment or economic hardship, but you must apply and be approved. Interest usually continues to accrue during these pauses.

Edly repayment
Edly’s repayment is inherently flexible because it is automated based on income.

• Repayment window: According to Edly’s website, you make payments for a set number of months (e.g., 48 months of payments).
• Income threshold: You only make payments when your income is above the minimum threshold (e.g., $30,000/year).
• Automatic adjustment: There is no need to “apply” for hardship deferment in the same way. If your verified income drops, your payment drops automatically. During months where you pay $0, the contract does not accrue interest, because there is no interest rate.

Fees and additional costs

Hidden fees can inflate the cost of borrowing. Here is how Ascent and Edly compare regarding administrative costs.

Source: Ascent and Edly fee schedules and disclosure statements (current as of January 2025).

Key insight: Ascent is very transparent about having zero origination fees, meaning 100% of the money you borrow goes to your school. With Edly and other ISAs, you must carefully read the specific contract for your school, as some programs may include upfront administrative fees or factor them into the repayment cap.

Borrower benefits and unique features

Beyond the money itself, both lenders offer perks that can add value to your experience.

Ascent benefits
Ascent focuses on rewarding responsible financial behavior.

• 1% cash back: Students can receive 1% of the loan principal back as a cash reward upon graduation.
• Cosigner release: According to Mark Kantrowitz, financial aid expert, “Cosigner release is a valuable feature offered by some private lenders, rewarding responsible repayment.” Ascent allows you to release your cosigner after just 24 on-time payments, which is one of the fastest release periods in the industry.
• Referral program: Borrowers can earn money by referring friends.

Edly benefits
Edly’s benefits are structural and career-oriented.

• Downside protection: The safety net of not owing money when unemployed is a massive psychological and financial benefit.
• Credit reporting: ISAs are technically not loans, so they may be reported differently to credit bureaus (though this practice is evolving). This can sometimes help students who want to keep their debt-to-income ratio lower for other purposes.
• Career support: Because investors only get paid if you get hired, Edly and its partner schools often provide robust career services and mentorship to ensure you find a job.

Application process and time to funding

When tuition deadlines are approaching, the speed and ease of the application process matter.

Applying with Ascent
Ascent offers a streamlined digital experience similar to modern fintech lenders.

• Pre-qualification: You can check your eligibility and view estimated rates without impacting your credit score (soft credit check).
• Process: The application takes about 15-20 minutes. You will need to upload proof of enrollment and ID. If you have a cosigner, they will receive an email to complete their portion.
• Timeline: Once approved, the school must certify the loan. Funding typically takes 2–4 weeks depending on your school’s financial aid office speed.

Applying with Edly
Edly’s process is often integrated with the school’s admission or financial aid process.

• Process: You typically apply through the Edly portal specific to your school. You will need to verify your enrollment and major.
• Credit check: There is generally no hard credit pull required since underwriting is based on academic data.
• Timeline: Funding timelines vary significantly by program partnership but can be faster than traditional loans for short-term bootcamps.

Pros and cons summary

To help you synthesize the details, here are the primary strengths and weaknesses of each option.

Which lender is right for you: Borrower profile recommendations

Making the final call depends on your specific assets (like a cosigner) and your risk tolerance. Use this framework to decide.

Choose Ascent if:

• You have a cosigner: If a parent or guardian with good credit is willing to sign, you will likely get a lower effective “cost” via a traditional loan than an ISA.
• You want predictability: You prefer knowing exactly what your monthly bill will be for the next 10 years.
• You need to cover living expenses: Ascent can fund up to the full cost of attendance, providing money for rent and books.
• You are a junior/senior without a cosigner: Ascent’s Outcomes-Based loan is one of the few non-ISA options for independent undergraduates.

Choose Edly if:

• You attend a partner school: You are enrolled in a bootcamp or university that specifically partners with Edly.
• You have no cosigner and limited credit: You cannot qualify for traditional private loans and are not a junior/senior eligible for Ascent’s outcomes loan.
• You are risk-averse regarding employment: You are worried about graduating into a recession or a tough job market and want the safety net of $0 payments during unemployment.
• You expect a variable income: You are entering a field where your income might start low and grow later, or fluctuate significantly.

Neither is right if: You have not yet maximized your federal Direct Subsidized and Unsubsidized loans. Federal loans offer lower fixed rates and government protections that neither Ascent nor Edly can fully match.

Frequently asked questions

Can I get an Ascent student loan without a cosigner?
Yes. Ascent offers two non-cosigned options: the Non-Cosigned Credit-Based Loan (for students with 2+ years of credit history) and the Outcomes-Based Loan (for college juniors and seniors with a 2.9+ GPA, regardless of credit history).

Is Edly a loan or an income share agreement?
Edly facilitates Income Share Agreements (ISAs). While it serves the same purpose as a loan (funding education), it is legally a contract to share a percentage of future income, not a debt obligation with an interest rate.

What happens if I can’t find a job after graduation with Edly?
This is a key feature of Edly. If your income is below the Minimum Income Threshold (e.g., $30,000), you generally do not make payments, and “interest” does not accrue because there is no interest rate.

Does Ascent offer a cosigner release?
Yes. You can apply to release your cosigner after making 24 consecutive on-time full principal and interest payments and meeting other credit criteria.

Can I use Edly at any school?
No. Edly is only available at specific partner schools and programs. You must check their website or your school’s financial aid office to see if your program is eligible.

The choice between Ascent and Edly represents a choice between two different financial philosophies. Ascent offers the stability and structure of a traditional loan with modern perks like cash back and cosigner release. Edly offers the flexibility and safety net of an Income Share Agreement, aligning your payments with your career success.

Key takeaways:

• Exhaust federal aid first: Always use federal grants and loans before applying to either lender.
• Ascent for predictability: Best for borrowers with cosigners or strong credit who want fixed terms and broad school eligibility.
• Edly for protection: Best for students at partner schools who need funding without a cosigner and want protection against low post-graduation income.
• Shop around: Rates and terms vary significantly based on your personal profile.

Both lenders offer legitimate solutions to bridge the gap between financial aid and the cost of your degree. The right choice depends on whether you prioritize the certainty of a fixed payment or the flexibility of an income-driven obligation.

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References and resources

• Ascent Student Loans Official Website
• Edly Official Website
• StudentAid.gov (Federal Loan Information)
• College Finance: How to Choose a Private Student Loan Lender
• College Finance: Federal vs. Private Student Loans Guide
• College Finance: Understanding Student Loan Interest Rates
• Consumer Financial Protection Bureau (CFPB) Student Loan Resources