Introduction to Earnest student loan refinancing

Is Earnest the right choice for refinancing your student loans? For many borrowers, the answer is yes—especially if you value flexibility. Earnest distinguishes itself in the crowded refinancing market through its tech-forward “Precision Pricing” model, which allows you to customize your loan term and monthly payment down to the dollar, rather than forcing you into standard 5, 10, or 15-year buckets. If you have a strong credit history and steady income, Earnest offers some of the most competitive rates and borrower-friendly features available today.

Founded in 2013 and acquired by Navient in 2017, Earnest was built on the premise that traditional credit scores don’t tell the whole story. While they certainly look at credit history, they utilize a data-driven underwriting process that considers your savings patterns, education, and earning potential to offer rates that reflect your true financial responsibility. This approach often results in lower rates for responsible borrowers who might be overlooked by legacy banks.

This review covers everything you need to know to make an informed decision, including detailed eligibility requirements, a breakdown of their unique features like “Skip-a-Payment,” and a transparent look at the pros and cons. Whether you are a recent graduate managing your own debt or a parent looking to refinance PLUS loans, understanding these details will help you determine if Earnest aligns with your financial goals.

Eligibility requirements and qualification criteria

Earnest is known for its “holistic” approach to underwriting, but that does not mean they accept everyone. In fact, because they offer such competitive rates and flexible terms, their standards for approval can be quite rigorous. Understanding these requirements upfront can save you time and help you gauge your likelihood of approval before you apply.

According to Earnest as of January 2025, prospective borrowers must meet specific financial and educational benchmarks. Unlike some lenders that rely solely on FICO scores and debt-to-income ratios, Earnest uses an algorithm that analyzes your financial habits. They want to see that you spend less than you earn and maintain positive bank account balances. This means your banking history matters just as much as your credit report.

To qualify for Earnest refinancing, you generally need to meet the following criteria:

• Credit Score: According to Earnest, a minimum FICO score of 650 is typically required. However, the average approved borrower often has a score closer to 700 or higher.
• Income and Employment: You must be employed or have a written job offer starting within six months. There is no hard minimum income listed, but you must earn enough to cover your living expenses and the new loan payments comfortably.
• Education: You must have graduated from a Title IV-accredited institution. Earnest refinances loans for both undergraduate and graduate degrees.
• Citizenship: You must be a U.S. citizen or a Permanent Resident (possessing a 10-year Green Card).
• Financial History: You cannot have any history of bankruptcy or accounts currently in collections.
• Loan Minimums: According to Earnest, you generally need to be refinancing at least $5,000 in student debt ($10,000 for California residents).

It is also important to note state availability. As of early 2025, Earnest offers refinancing in almost all states, but specific restrictions may apply depending on where you live. For example, variable-rate loans may not be available in every jurisdiction. Always check their official eligibility page for the most current state-specific lists.

If you are a parent looking to refinance Parent PLUS loans, you are subject to the same criteria. You can refinance those loans into your own name, or you can transfer them to your child (the student) through refinancing, provided the student meets all the income and credit criteria listed above on their own.

Interest rates, loan terms, and precision pricing

The primary motivation for refinancing is usually to secure a lower interest rate or a better repayment term. Earnest excels in this area by offering a level of customization that is rare in the student loan industry. While most lenders force you to choose between a 5, 7, 10, 15, or 20-year term, Earnest utilizes a feature called Precision Pricing.

Precision Pricing allows you to select your exact monthly payment based on your budget. Once you set your desired payment, Earnest calculates the corresponding term and interest rate. This means you could end up with a loan term of 7 years and 4 months, or 12 years and 2 months. This flexibility empowers you to pay off debt as aggressively as your budget allows without being pigeonholed into a standard term that might be slightly too expensive or too long.

Earnest offers both fixed and variable interest rates. Choosing between them depends on your risk tolerance and how quickly you plan to pay off the loan.

• Fixed Rates: Your interest rate remains the same for the life of the loan. This provides stability and predictable monthly payments, which is ideal for borrowers with longer terms or tight budgets.
• Variable Rates: These rates often start lower than fixed rates but can fluctuate monthly based on market conditions (specifically the SOFR index). This option is riskier but can save money for borrowers who plan to pay off their loan very quickly.

Source: Earnest.com (Rates include 0.25% Auto Pay discount; effective as of January 2025)

Earnest is confident in their pricing, backed by their “Rate Match Guarantee.” According to Earnest, if you are approved for a student loan refinance loan by another lender with a lower rate, Earnest states they will match it and give you a $100 Amazon gift card once your loan is finalized. To qualify, you must provide valid documentation of the competitor’s offer within specific timeframes. This feature ensures that if you are a highly qualified borrower, you don’t have to choose between Earnest’s features and a competitor’s slightly lower rate—you can likely get both.

Your specific rate is determined by your credit profile, income, and the loan term you choose. Generally, shorter terms come with lower interest rates. By using the Precision Pricing slider during the application process, you can see in real-time how adjusting your payment amount impacts your APR.

For a broader look at how these numbers stack up against the market, you can check our comprehensive analysis of current market conditions and compare multiple lenders to find the best option for your situation.

Unique features and borrower benefits

According to Jason Delisle, higher education finance expert, “The private market can and does innovate — offering options federal loans don’t.” Earnest is a prime example of this innovation. Beyond just interest rates, they offer a suite of borrower benefits designed to make repayment easier and more adaptable to real life. These features are what truly differentiate Earnest from legacy banks.

One of the most popular features is the ability to skip a payment. According to Earnest, once every 12 months, qualified borrowers can request to skip a monthly payment without penalty. This can be a financial lifesaver if you encounter an unexpected expense, like a car repair or medical bill.

It is important to understand the mechanics: the skipped payment is not forgiven. Instead, it is added to the end of your loan term, and interest continues to accrue during the skip period. To qualify, you typically need to have made at least six months of consecutive on-time payments. This feature provides a safety net that is rare among private lenders.

Most lenders operate on a monthly billing cycle, but Earnest allows you to set up biweekly payments to align with your paycheck. By paying half of your monthly payment every two weeks, you end up making 26 half-payments per year—which equals 13 full monthly payments. This “extra” payment per year is applied directly to your principal balance, which can shorten your loan term and save you significant money on interest over the life of the loan without you feeling a major pinch in your budget.

Transparency is a core part of the Earnest value proposition. According to Earnest, they charge zero fees for the following:

• No Origination Fees: You pay nothing to process the loan.
• No Prepayment Penalties: You can pay off your loan as early as you want without a fee.
• No Late Fees: While you should always pay on time to protect your credit score, Earnest does not charge a monetary fee if you miss a deadline.

Earnest offers a highly rated mobile app that allows you to manage every aspect of your loan from your phone. You can adjust your payment dates, make extra payments, and even change your payment amount if your budget allows. This level of control is appealing to digital-native borrowers who want to manage their debt as easily as they manage their other subscriptions.

When you combine these features, Earnest offers a repayment experience that feels modern and user-centric. If these features sound like they would help you manage your debt better, it might be time to see what rates you qualify for.

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Types of loans eligible for refinancing

Before applying, you need to confirm that your current loans are eligible for refinancing. Earnest is quite comprehensive in what they accept, covering the vast majority of education debt held by U.S. graduates.

You can refinance both federal and private student loans with Earnest. This includes:

• Federal Direct Loans: Subsidized and Unsubsidized loans.
• Graduate PLUS Loans: Loans taken out by graduate students.
• Parent PLUS Loans: Loans taken out by parents for their undergraduate children.
• Private Student Loans: Loans from banks, credit unions, or other online lenders.
• Perkins Loans: Older federal loans based on financial need.

Earnest also supports refinancing for loans used for second degrees, such as medical school, dental school, law school, and MBA programs. As long as the degree was earned at a Title IV-accredited school, the associated debt is likely eligible.

Earnest offers specific flexibility for Parent PLUS loans. Parents can refinance these loans to secure a lower rate while keeping the loan in their own name. Alternatively, they can transfer the loan to the child (the student) through refinancing. For this to happen, the student must apply as the primary borrower and meet all of Earnest’s credit and income requirements independently. This is a great strategy for parents looking to retire and remove education debt from their credit report.

There are a few limitations. You typically cannot refinance:

• Loans in the name of someone else (unless doing a Parent PLUS transfer).
• Loans from non-accredited schools.
• Personal loans that were used for education expenses but are not classified as student loans.

Application process and timeline

Earnest has streamlined the application process to be as efficient as possible. Because they are a fintech company, the entire experience is digital, designed to move you from quote to funding quickly.

The first step is to check your rate. You will provide basic information—name, address, education history, income, and estimated loan balance. Earnest performs a soft credit check at this stage. This allows you to see your estimated interest rates and terms without impacting your credit score. If you like the numbers you see, you can proceed to the full application.

Once you select a loan term, you will need to upload documentation to verify your identity and financial status. Thanks to their tech-forward platform, you can often link your bank accounts directly, allowing Earnest to verify your income and savings automatically. Otherwise, you may need to upload:

• Government-issued ID (Driver’s license or passport)
• Proof of income (Recent pay stubs or tax returns)
• Payoff verification statements from your current loan servicers

After you submit your full application, Earnest will perform a hard credit check. This may temporarily lower your credit score by a few points. According to Earnest, their underwriting team (or automated system) will review your financial profile in depth. This process typically takes 3 to 5 business days, though it can be faster for straightforward applications.

Upon approval, you will sign your final promissory note electronically. According to Earnest, they then coordinate with your existing loan servicers to pay off your old loans. This funding process generally takes another 3 to 10 business days depending on how quickly your old servicer processes the payment. You should continue making payments on your old loans until you receive written confirmation that they have been paid in full.

The entire timeline, from checking your rate to your old loans being paid off, typically spans 2 to 3 weeks. You can track the status of your application in real-time through your Earnest dashboard.

Customer service and borrower experience

In an industry often criticized for poor service, Earnest aims to stand out with its “Client Happiness Team.” Unlike many loan servicers that outsource customer support to large, impersonal call centers, Earnest maintains an in-house support team dedicated to resolving borrower issues.

You can reach the Client Happiness Team via phone, email, or chat. According to Earnest as of January 2025, phone support is generally available Monday through Friday, from 5:00 AM to 5:00 PM Pacific Time. They are known for providing relatively quick responses compared to federal loan servicers.

Borrower feedback for Earnest is generally positive, reflected in high ratings on third-party review sites like Trustpilot and the Better Business Bureau. Customers frequently praise the ease of the mobile app and the simplicity of the dashboard. The ability to change payment dates and make extra principal-only payments with a few clicks is frequently cited as a major benefit.

However, no lender is perfect. Some negative reviews cite frustration with the strict underwriting criteria. Applicants who are rejected for “insufficient savings” or “debt-to-income ratio” often feel the process is opaque. Additionally, because Earnest services its own loans (rather than handing them off immediately), your relationship remains with them long-term. This is generally a pro, but it means you are dependent on their specific policies for hardship assistance.

If you encounter financial hardship, according to Earnest, they offer a forbearance policy (typically up to 12 months in 3-month increments) for situations like involuntary job loss. While not as generous as federal deferment options, it is a solid safety net for a private lender.

Pros and cons of Earnest refinancing

To help you weigh your options, here is a balanced look at the strengths and weaknesses of refinancing with Earnest compared to other major lenders.

The biggest potential drawback for many borrowers is the lack of a cosigner release option. If you apply with a cosigner to get a better rate, that cosigner remains legally responsible for the loan until it is paid off in full or until you refinance again with a different lender. If removing a cosigner after 24 or 36 months is a priority for you, other lenders might be a better fit.

However, for borrowers who qualify on their own or don’t mind the permanent cosigner attachment, the pros—specifically the flexibility of Precision Pricing and the Skip-a-Payment safety net—often outweigh the limitations.

Who is Earnest best for?

Earnest is not a one-size-fits-all solution. Based on their underwriting model and feature set, they are an ideal fit for a specific type of borrower.

Earnest is best suited for financially stable professionals with a credit score above 680 and a steady income. If you have a solid “financial runway” (savings in the bank) and want to pay off your debt aggressively, Earnest’s flexible terms will allow you to save the maximum amount of interest.

They are also a great choice for tech-savvy borrowers who want a “set it and forget it” approach to payments but appreciate the ability to manage everything from a high-quality mobile app. The biweekly payment feature is perfect for those who want to automate interest savings without doing the math themselves.

• Borrowers needing a cosigner release: If you plan to remove your cosigner after a few years of on-time payments, consider lenders that offer this feature after demonstrating payment history and creditworthiness.
• Borrowers with thin credit or low savings: If you live paycheck to paycheck, Earnest’s algorithm may reject you even if your credit score is decent. You might have better luck with lenders that stick to traditional debt-to-income metrics.
• Those pursuing Public Service Loan Forgiveness: If you work for a non-profit or government entity, you should generally keep your federal loans in the federal system to take advantage of forgiveness programs.

Earnest has established itself as a top-tier contender in the student loan refinancing space by treating borrowers as more than just a credit score. Their emphasis on financial behavior, combined with the ability to customize your loan term down to the month, offers a level of control that can help you become debt-free faster. With competitive rates, no fees, and unique perks like the Skip-a-Payment option, they offer a borrower-friendly experience that is hard to beat for those who qualify.

As you make your decision, keep these three factors in mind:

• Check your rate first: It takes two minutes and won’t hurt your credit score.
• Compare the total cost: Use the Precision Pricing tool to see how different terms affect your total interest paid.
• Verify eligibility: Ensure you meet the savings and credit requirements to avoid a wasted application.

Refinancing is a powerful tool to take control of your financial future. If Earnest’s flexible, tech-forward approach appeals to you, the next step is to see what rate they can offer you today.

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References and resources

To further research your options and verify the details of your student loan journey, we recommend consulting the following resources:

• Earnest Official Website – For direct access to eligibility criteria, disclosures, and the rate checking tool.
• StudentAid.gov – The official source for information on federal loan benefits, consolidation, and forgiveness programs.
• Student Loan Refinance Calculator – Use a refinance calculator to help you estimate your monthly savings and compare offers.
• Guide to Refinancing Parent PLUS Loans – Learn more about the specific considerations and strategies for parents refinancing education debt.
• Income-Driven Repayment Plans Explained – Understand the federal repayment options and what you give up before refinancing federal loans into private loans.