Earnest vs ELFI: Which refinancing lender is right for you?

Earnest offers maximum flexibility and customization tools ideal for tech-savvy borrowers who want precise payment control, while ELFI provides dedicated human loan advisors and strong customer service for borrowers who value personalized guidance throughout the process. Whether you’re a recent graduate seeking lower monthly payments and reduced interest costs, or a parent looking to refinance Parent PLUS loans and potentially exit a cosigner role, both lenders offer competitive solutions to meet your financial goals.

In this comprehensive comparison, we will analyze specific interest rate structures, detailed eligibility requirements, and the unique features that set these two industry leaders apart. By the end of this guide, you’ll know which lender offers the best rates for your credit profile, understand each lender’s unique strengths, and have a clear decision framework for choosing between Earnest and ELFI.

How to use this comparison

Refinancing is a powerful tool for borrowers with good-to-excellent credit (typically 650 or higher), stable income, and existing private loans—or federal loans they are willing to convert. However, it is not for everyone. If you are pursuing Public Service Loan Forgiveness (PSLF), rely on Income-Driven Repayment (IDR) plans, or anticipate needing federal forbearance, you should not refinance federal loans. Moving federal debt to a private lender creates a new private loan, permanently forfeiting federal benefits like IDR eligibility and forgiveness programs. For more details on these trade-offs, review our guide to federal vs. private refinancing.

When comparing Earnest and ELFI, focus on three main savings levers: the interest rate, which has the biggest impact on total cost; the loan term, which balances monthly affordability against total interest paid; and available discounts like autopay. We have structured this guide to help you make a confident decision efficiently.

Start with the Quick Comparison table below to see if you meet the basic eligibility criteria for each lender. If both options look viable, use the detailed Decision Framework later in the article to match your personal priorities—such as digital flexibility versus human support—to the right lender.

Earnest vs ELFI: Quick comparison

The table below provides a side-by-side view of how these lenders stack up on critical features. Use this to quickly assess which lender aligns with your credit profile and repayment goals.

Source: Earnest and ELFI websites (eligibility criteria and product details accessed January 2025).

Before you proceed: Remember that refinancing federal loans means losing access to federal protections like IDR and PSLF. However, checking your preliminary rates with private lenders typically involves only a soft credit inquiry, which does not impact your credit score.

If you are ready to see what rates you qualify for, you can compare options from multiple top lenders at once.

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Interest rates and how they’re determined

While both lenders offer competitive pricing, the way they determine your specific interest rate differs slightly, which can impact which lender offers you the better deal. Understanding these differences is key to securing the lowest possible cost of borrowing.

According to Earnest’s website as of January 2025, their underwriting model is distinct because it looks beyond just your credit score. They utilize a “merit-based” approach that considers your education, career trajectory, savings patterns, and financial behavior. This holistic view can be advantageous for borrowers who have responsible financial habits and strong earning potential but perhaps a thinner credit history. Earnest offers fixed rates of 2.47% - 7.99% APR and variable rates of 1.74% - 7.99% APR, giving you the choice between locking in a steady payment or gambling on potentially lower initial rates that fluctuate with the market.

ELFI (Education Loan Finance) generally adheres to more traditional underwriting standards, placing heavy emphasis on credit history, debt-to-income ratio, and income stability. According to ELFI’s rate disclosures accessed in January 2025, they offer fixed rates of APR and variable rates of APR for borrowers with strong credit profiles. Because ELFI is backed by SouthEast Bank, they often provide rates that rival or beat larger fintech competitors for highly qualified candidates.

Both lenders allow you to choose between fixed and variable rates. A fixed rate remains the same for the life of the loan, providing stability and predictable monthly payments—ideal for most borrowers in a rising rate environment. A variable rate may start lower than a fixed rate but can increase (or decrease) monthly based on market conditions. Variable rates are generally best suited for borrowers who plan to pay off their loan very quickly, minimizing the risk of future rate hikes.

For a deeper dive into current trends, you can read our guide on student loan interest rates.

Eligibility requirements compared

Before applying, it is essential to ensure you meet the basic criteria. Refinancing eligibility is stricter than undergraduate lending because there is no federal backing.

According to Earnest’s eligibility requirements as of January 2025, the minimum credit score requirement is 680. However, because they look at savings and cash flow, a high score alone isn’t always the only factor. ELFI similarly requires a minimum credit score of 680 as of January 2025. Both lenders require a history of on-time payments and no recent bankruptcies or foreclosure proceedings.

Income stability is critical for refinancing. According to ELFI’s eligibility page accessed in January 2025, the minimum annual income requirement is $35,000. Earnest also maintains a minimum income requirement of $35,000 as of January 2025. Both lenders require you to be employed or have a written job offer starting soon. For recent graduates, this means you typically cannot refinance until you have secured employment.

Both lenders generally require you to have graduated from a Title IV accredited university. Earnest allows you to refinance loans for a degree that was not completed in very specific circumstances, but generally, a degree is required. You must be a U.S. citizen or permanent resident to qualify with either lender. International students would typically need a qualified U.S. cosigner, though policies on this vary and are often restrictive.

According to Mark Kantrowitz, financial aid expert, “Most students will need a cosigner to qualify for a private student loan.” This is especially true for refinancing if your income or credit history hasn’t yet matured. Adding a creditworthy cosigner can not only help you qualify but also significantly lower your interest rate with either lender.

Loan terms and flexibility options

This section highlights where Earnest and ELFI diverge significantly. The structure of your loan determines your monthly obligation and how easily you can manage payments during life changes.

Earnest is widely recognized for its “Precision Pricing” feature. According to Earnest’s product details accessed in January 2025, borrowers can customize their loan term to the exact month—for example, choosing a 7-year, 3-month term to hit a specific monthly payment target. This is a unique feature in the industry, where most lenders only offer standard 5, 10, 15, or 20-year blocks. Earnest also allows borrowers to switch between fixed and variable rates once every six months, providing flexibility if market conditions change.

ELFI offers standard repayment terms of 5, 7, 10, 15, and 20 years. While they lack the month-by-month customization of Earnest, their term options cover the needs of most borrowers. A key differentiator for ELFI is their loan limits: according to ELFI’s website accessed in January 2025, they have no maximum loan amount for qualified borrowers, whereas Earnest caps refinancing at $500,000. This makes ELFI a strong contender for medical, legal, or dental professionals with exceptionally high debt loads.

Earnest offers a “Skip-a-Payment” feature, allowing eligible borrowers to skip one payment every 12 months (though interest continues to accrue). This can be a financial lifesaver during unexpected emergencies. ELFI does not market a specific skip-a-payment feature but does offer standard forbearance options for economic hardship, handled on a case-by-case basis through their customer support team.

Borrower benefits and perks

Beyond the interest rate and term, the additional benefits a lender provides can add significant value to your repayment experience. According to Mark Kantrowitz, financial aid expert, “Private lenders sometimes offer benefits like autopay discounts or career support,” which can distinguish one lender from another when rates are similar.

According to Earnest’s website as of January 2025, borrowers receive a 0.25% interest rate reduction when enrolling in automatic payments. This is a standard industry perk that effectively lowers your cost of borrowing. ELFI’s rates are typically quoted without an autopay discount, meaning the rate you see is the rate you get, though they occasionally run promotions. Always compare the final effective APR after any discounts are applied.

• Earnest: In addition to the Skip-a-Payment feature mentioned earlier, Earnest offers a bi-weekly payment option. By paying half your monthly payment every two weeks, you end up making one extra full payment per year, which shortens your loan term and saves on interest automatically without feeling the pinch in your monthly budget.
• ELFI: ELFI’s standout perk is their “Personal Loan Advisor” model. According to ELFI’s website accessed in January 2025, every borrower is assigned a specific loan advisor who serves as a single point of contact from application through funding. This eliminates the frustration of explaining your situation to a different call center agent every time you dial in.

Both lenders are fee-friendly. According to their respective websites accessed in January 2025, neither Earnest nor ELFI charges origination fees, application fees, or prepayment penalties. This means you can pay off your loan early with either lender to save on interest without incurring any fines. Both lenders also offer death and disability discharge policies, which forgive the loan balance if the primary borrower dies or becomes permanently disabled—a critical protection for your estate and family.

Cosigner policies and release options

For many parents and students, the ability to release a cosigner from the loan obligation is a decisive factor. This feature allows the primary borrower to take full responsibility for the loan once they meet credit and income requirements, protecting the parent’s credit and debt-to-income ratio.

According to ELFI’s website as of January 2025, cosigner release is available for refinancing loans. Borrowers can apply to release their cosigner after making 12 consecutive, on-time full principal and interest payments. The primary borrower must also meet ELFI’s credit and income criteria on their own at the time of the request. According to Mark Kantrowitz, financial aid expert, “Cosigner release is a valuable feature offered by some private lenders, rewarding responsible repayment,” and ELFI’s 12-month timeline is relatively fast compared to industry averages.

According to Earnest’s policy disclosures accessed in January 2025, they generally do not offer cosigner release for their student loan refinancing product. If you refinance with a cosigner through Earnest, that cosigner is typically tied to the loan until it is paid in full or refinanced again. To remove a cosigner, you would likely need to refinance the loan again entirely—either with Earnest (as a solo applicant) or with a different lender. This is a crucial distinction for parents who view refinancing as a temporary step toward their child’s financial independence.

Application process and customer experience

The application experience reflects the core philosophy of each lender: Earnest focuses on digital efficiency, while ELFI focuses on human connection.

Earnest is designed for the digital native. Their application process is streamlined, paperless, and can be completed largely via their mobile-optimized platform. You can upload documents, link financial accounts for income verification, and sign paperwork electronically. If you prefer a self-service model where you can manage everything from a dashboard without needing to speak to a human, Earnest is built for you.

ELFI prides itself on customer service. Upon starting an application, you are assigned a Personal Loan Advisor. This advisor can answer questions via phone, text, or email and guide you through documentation requirements. For borrowers who feel overwhelmed by the refinancing process or have complex income situations (like self-employment) that require explanation, having a dedicated human advocate can be invaluable.

Both lenders allow you to check your rate availability online in minutes. Crucially, this pre-qualification process uses a soft credit pull, which means checking your rates with both Earnest and ELFI will not impact your credit score. A hard credit inquiry is only performed if you officially submit a full application after selecting a rate.

Which lender is right for you? Decision framework

Choosing between Earnest and ELFI often comes down to your personal preferences regarding flexibility versus support, and your specific need for cosigner release.

Important Reminder: Before you finalize any private refinance loan, remember that if you are refinancing federal student loans, you will permanently lose access to federal income-driven repayment plans, Public Service Loan Forgiveness (PSLF), and federal forbearance options. Ensure your job is stable and your emergency fund is solid before converting federal debt to private debt. For more on this, read our federal vs. private refinancing guide.

Checking your rates is risk-free and takes only a few minutes. Since pre-qualification uses a soft credit check, it is smart to get quotes from multiple lenders to see who offers you the lowest APR.

Check your rates with Earnest, ELFI, and others (Trusted by 50,000+ students and families)

Frequently asked questions

Yes, both Earnest and ELFI allow you to refinance federal student loans, private student loans, and Parent PLUS loans. However, remember that refinancing federal loans with a private lender means you forfeit federal benefits like access to Income-Driven Repayment (IDR) plans and Public Service Loan Forgiveness (PSLF).

According to both lenders’ eligibility disclosures accessed in January 2025, the minimum credit score required is typically 680. However, meeting the minimum score does not guarantee approval or the lowest advertised rates, as both lenders also consider income, debt-to-income ratio, and payment history.

Rates are highly individualized. Earnest may offer better rates to borrowers with thin credit files but strong savings habits due to their holistic underwriting. ELFI often provides highly competitive rates for borrowers with established credit histories and higher incomes. The only way to know for sure is to check your rate with both, which you can do without hurting your credit score.

Yes, both lenders refinance Parent PLUS loans. Parents can refinance these loans in their own name to get a lower rate. Alternatively, some lenders allow the child (student) to refinance the Parent PLUS loan into their own name, effectively transferring the debt from parent to child, provided the child meets the income and credit requirements.

According to ELFI’s website as of January 2025, you can apply for cosigner release after 12 months of on-time principal and interest payments. Earnest, however, generally does not offer cosigner release for refinanced student loans; the cosigner remains on the loan until it is paid off or refinanced again.

No. According to their websites accessed in January 2025, neither Earnest nor ELFI charges application fees, origination fees, or prepayment penalties. This means 100% of your loan balance goes toward paying off your old loans.

Both Earnest and ELFI are top-tier lenders that offer transparent terms, competitive rates, and no origination fees. The choice ultimately depends on your specific needs regarding flexibility and service.

• Earnest is the winner for customization, offering precision pricing and unique features like skipping a payment, making it ideal for the digitally savvy borrower.
• ELFI wins on service and high-balance accommodations, making it the better choice for those who want a personal advisor or need to release a cosigner down the road.
• Recommendation: Since both lenders offer rate checks that don’t affect your credit score, the smartest move is to apply for pre-qualification with both. Compare the actual APR and terms offered to you side-by-side before making your final decision.

Refinancing has the potential to save you thousands of dollars over the life of your loan. By securing a lower interest rate today, you can reduce your monthly burden and become debt-free faster.

Compare rates from 8+ lenders (Trusted by 50,000+ students and families)

References and resources

To ensure you have the most accurate and helpful information, we recommend consulting these official sources and guides:

• StudentAid.gov – Official U.S. Department of Education site for federal loan information.
• Consumer Financial Protection Bureau (CFPB) – Resources for understanding student loan options.
• College Finance: Complete Guide to Student Loan Refinancing
• College Finance: Federal vs. Private Loan Refinancing Explained
• College Finance: Best Student Loan Refinance Lenders of 2025