Earnest vs LendKey: Which refinancing lender fits your situation?

Earnest is best for borrowers seeking maximum flexibility, custom loan terms, and a streamlined digital experience, while LendKey fits those looking for competitive rates from credit unions and community banks through a single marketplace. Whether you are a parent managing family finances or a graduate focused on lowering monthly payments, understanding these distinct models is key to finding the right fit.

Refinancing student debt is one of the most effective ways to reduce total interest costs or adjust monthly payments to fit a budget. However, not all lenders operate the same way. In this guide, you will learn how Earnest and LendKey differ in their pricing models, eligibility requirements, and unique borrower benefits.

By the end, you will be able to identify which lender aligns with your financial situation, compare their key features side-by-side, and take the next step toward refinancing with confidence.

Context: understanding Earnest and LendKey’s different approaches

Before comparing rates and terms, it is essential to understand the fundamental difference in how these two companies operate. This structural difference impacts everything from your application experience to who services your loan for the next decade.

Earnest operates as a direct lender. Acquired by Navient in 2017, Earnest uses a proprietary “precision pricing” model that evaluates more than just your credit score. When you borrow from Earnest, you are dealing with them directly from the application through the final payment. They are known for a tech-forward, user-friendly interface and a high degree of flexibility in how you structure your loan.

LendKey is not a lender itself but a marketplace platform. It connects borrowers with a network of hundreds of non-profit credit unions and community banks. When you apply through LendKey, their technology matches you with institutions that might otherwise be hard to find. If you accept a loan offer, your loan is funded and serviced by that specific credit union or bank, not LendKey. This model allows borrowers to access the typically lower rates and member-focused benefits of community lending institutions without visiting multiple branches.

For more background on how refinancing fits into the broader landscape, read our comprehensive guide to student loan refinancing.

Earnest vs LendKey: side-by-side comparison

To help you make a quick assessment, here is a direct comparison of the key features, rates, and terms offered by both platforms. While both can help you save money, their specific offerings cater to different needs.

Sources: Earnest.com and LendKey.com, as of October 2024. Rates include autopay discounts where applicable.

Interpreting the Data: Earnest offers higher loan limits, making it a strong contender for medical or law school graduates with significant debt. LendKey’s rates are highly competitive, often beating large banks because of the non-profit status of their credit union partners. However, LendKey’s loan limits are generally lower, which may require high-balance borrowers to refinance in batches.

Eligibility requirements: who qualifies for each lender

Meeting the basic eligibility criteria is the first hurdle in the refinancing process. While both lenders target responsible borrowers, their underwriting philosophies differ.

Earnest takes a holistic approach to underwriting. Rather than relying solely on a FICO score, they evaluate your full financial picture. According to Earnest’s eligibility guidelines as of October 2024, applicants typically need a minimum FICO score of 650. However, they also weigh factors like your savings patterns, career trajectory, and debt-to-income ratio. This makes Earnest a viable option for younger graduates with “thin” credit files who have secured good jobs and demonstrate financial responsibility.

LendKey acts as a gatekeeper for multiple institutions, so requirements can vary depending on which credit union funds the loan. According to LendKey’s partner disclosures as of October 2024, most partners require a minimum credit score of 660 to 680 and a minimum annual income of $24,000. Because these loans are funded by conservative community lenders, the underwriting can be slightly stricter regarding debt-to-income ratios compared to fintech lenders.

Both lenders require you to be a U.S. citizen or permanent resident and generally require that you have graduated with a degree. If your credit score is on the borderline, you might benefit from reading our guide on how to improve your credit score for refinancing.

Interest rates and how each lender determines your rate

The interest rate you are offered depends heavily on the lender’s pricing methodology.

Earnest’s Precision Pricing: Earnest uses machine learning to analyze hundreds of data points. This allows them to price risk more accurately than traditional banks. If you have a high income potential or excellent savings habits, Earnest may offer you a lower rate than your credit score alone would suggest. They reward financial behaviors that indicate you are likely to repay the loan, not just your past history.

LendKey’s Marketplace Model: With LendKey, your rate is determined by the specific credit union or bank that bids on your loan. Because credit unions are not-for-profit cooperatives, they often pass their tax savings on to members in the form of lower interest rates. While LendKey facilitates the connection, the specific rate table belongs to the partner institution. This can sometimes result in highly competitive offers for borrowers with strong credit profiles.

Both lenders offer fixed and variable rates. Fixed rates remain the same for the life of the loan, providing stability. Variable rates may start lower but can fluctuate with market conditions.

According to Mark Kantrowitz, financial aid expert, “Private loans can offer variable interest rates, which may be lower than federal fixed rates initially.” However, borrowers should be cautious with variable rates if they plan to take a long time to repay the loan, as rates can rise significantly.

Both Earnest and LendKey allow you to check your preliminary rate with a “soft pull,” which does not impact your credit score. This allows you to compare offers risk-free.

Loan terms and repayment flexibility

Beyond the interest rate, the structure of your repayment plan affects your monthly budget and total cost.

Earnest stands out for its unmatched term flexibility. While most lenders force you into 5, 10, 15, or 20-year buckets, Earnest allows you to choose your exact monthly payment (above the minimum) and sets the term to match. You could select a loan term of 7 years and 4 months if that fits your budget best. This precision helps borrowers optimize their payoff timeline to save on interest without overextending their monthly budget.

LendKey offers standard loan terms, typically 5, 7, 10, 15, and 20 years. While less customizable than Earnest, these options cover the needs of most borrowers. If you are looking for a straightforward 10-year refinance plan, LendKey’s standard terms are perfectly adequate.

Both lenders offer payment relief options, though they function differently. According to Earnest as of October 2024, their “Skip-a-Payment” feature allows borrowers to skip one payment every 12 months (after making 6 months of on-time payments), with the missed payment added to the end of the loan. LendKey’s hardship options vary by the partner lender but typically include standard forbearance for economic hardship.

For help deciding on the right timeline, see our guide on how to choose your refinancing loan term.

Unique features: what sets each lender apart

When rates are similar, the unique benefits of a lender can be the deciding factor.

Earnest excels in digital experience and borrower-centric features.

• No Fees: According to Earnest’s policy as of October 2024, they charge no origination fees, late fees, or prepayment penalties.
• Bi-weekly Payments: Their platform supports bi-weekly autopay, which can help you pay off your loan faster and reduce total interest.
• Dashboard: The user interface is modern and intuitive, making it easy to manage your loan from a smartphone.

LendKey offers the distinct advantage of community banking.

• Community Focus: Borrowing through LendKey supports local credit unions and community banks, which appeals to borrowers who prefer keeping their money out of large commercial banks.
• Member Benefits: Once your loan is funded, you become a member of that credit union. This may grant you access to other banking products, better rates on auto loans, or other member perks.
• Multiple Offers: A single application allows you to see offers from multiple institutions, acting as a mini-comparison tool within the platform itself.

According to Mark Kantrowitz, financial aid expert, “Private lenders sometimes offer benefits like autopay discounts or career support.” These perks can add value beyond the raw interest rate, so consider which ecosystem fits your lifestyle better.

Cosigner options and release policies

Many recent graduates need a cosigner to qualify for refinancing or to secure the lowest possible rate. However, most families have a goal of eventually removing the cosigner from the loan obligation.

Earnest has a clear and transparent cosigner release policy. According to Earnest as of October 2024, you can apply to release your cosigner after making 24 consecutive on-time payments of principal and interest. You must also meet their credit and income requirements on your own at that time.

LendKey’s policy is more variable because it depends on the partner institution. While many LendKey partners offer cosigner release, the timeframe can range from 12 to 48 months of on-time payments. Some partners may not offer cosigner release at all. It is critical to verify the specific terms of the partner credit union before signing the loan documents if cosigner release is a priority for you.

For parents, a clear release policy offers peace of mind that they won’t be on the hook for the loan indefinitely. For graduates, it provides a concrete goal to work toward.

Application process and customer experience

The journey from “apply” to “funded” looks different with each provider.

Earnest offers a seamless, end-to-end digital experience. You can link your financial accounts (like bank and investment accounts) during the application to verify income instantly, speeding up the approval process. Decisions are often made in minutes. Once approved, Earnest remains your point of contact for all servicing, questions, and payments.

LendKey starts with a centralized application where you enter your information once to check rates across their network. You will see a list of offers from different credit unions. Once you select an offer and upload your documents, the underwriting is finalized by LendKey. After the loan is funded, your relationship shifts to the specific credit union or bank. While LendKey may still facilitate the payment portal, your actual lender is the financial institution.

Both lenders typically complete the refinancing process within 2 to 4 weeks. Both also utilize soft credit pulls for initial rate estimates, meaning you can check your eligibility without harming your credit score.

Decision: which lender is right for you?

Choosing between Earnest and LendKey often comes down to your personal priorities regarding flexibility versus rate competitiveness.

Choose Earnest if:

• You want to customize your monthly payment to the exact dollar amount.
• You prefer a fully digital, tech-forward experience with a top-tier mobile app.
• You have a “thin” credit file but strong savings and career potential.
• You want a guaranteed, consistent policy for cosigner release (24 months).
• You value the safety net of a “Skip-a-Payment” option.

Choose LendKey if:

• You want to support and bank with a not-for-profit credit union or community bank.
• You are looking for the absolute lowest rate and have a strong credit history (680+).
• You want to compare multiple real offers from different institutions with one form.
• You are comfortable with your loan being serviced by a partner institution.
• You want to become a member of a credit union to access other banking perks.

The Best Strategy: Since both lenders allow you to check rates without impacting your credit score, the smartest move is often to apply to both. Compare the actual interest rates and terms offered to you specifically, as your profile may trigger a better deal with one than the other.

Important considerations before refinancing federal loans

Before you sign any paperwork, there is one critical factor to consider: federal protections.

If you are refinancing federal student loans (like Direct Unsubsidized or PLUS loans) into a private loan with Earnest or LendKey, you permanently lose access to federal benefits. This includes:

• Income-Driven Repayment (IDR) Plans: Plans like SAVE or IBR that cap payments based on your income.
• Public Service Loan Forgiveness (PSLF): The program that forgives balances after 10 years of public service work.
• Federal Forbearance and Deferment: Generous pause options during unemployment or economic hardship.

Who should NOT refinance federal loans? If you work in public service, have unstable income, or rely on IDR plans to make your payments affordable, you should stick with federal loans. Refinancing is irreversible.

Who can refinance safely? If you have high-interest private loans, or federal loans that you are certain you will pay off fully without needing forgiveness, refinancing can save you thousands. For a deeper dive into these trade-offs, read our guide on IDR vs. Refinancing.

If you have weighed these factors and are ready to proceed, comparing your options is the next logical step.

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Frequently asked questions

Refinancing generally requires good to excellent credit. According to Earnest as of October 2024, they typically require a 650+ FICO score, while LendKey partners usually look for 660-680+. If your score is below these thresholds, applying with a creditworthy cosigner can significantly improve your chances of approval with either lender.

No. Both Earnest and LendKey use a “soft credit pull” to provide you with personalized rate estimates. This does not appear on your credit report or lower your score. A “hard pull” is only performed if you accept an offer and proceed with the final loan application.

Yes, both lenders allow you to refinance Federal Parent PLUS loans. This can be a smart move for parents looking to lower their interest rate or transfer the debt to their child (if the child qualifies and agrees). For more details, see our Parent PLUS refinancing guide.

With Earnest, you have a single point of contact—Earnest services your loan for its entire life. With LendKey, customer service for the loan term is typically handled by the specific credit union or bank that funded your loan, meaning service quality can vary depending on the partner.

Absolutely. Since initial rate checks do not harm your credit, it is highly recommended to check rates with both platforms. This ensures you are not leaving money on the table by accepting the first offer you see.

Both lenders typically complete the process in 2 to 4 weeks. Earnest’s digital account linking can sometimes speed up income verification, while LendKey’s timeline may depend on the specific processing speed of the partner credit union.

Refinancing your student loans is a powerful financial move that requires careful consideration of both the numbers and the lender relationship. Here are the key takeaways to guide your choice:

• Earnest offers superior flexibility, allowing you to pick your exact payment amount and term, backed by a seamless digital platform.
• LendKey connects you with credit unions that may offer lower rates and member benefits, supporting community banking.
• Compare Offers: Because both use soft credit pulls, you should check rates with both lenders to see who offers the best deal for your specific credit profile.
• Federal Warning: Remember that refinancing federal loans means giving up IDR and PSLF protections—ensure this trade-off is worth the interest savings.

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References and resources

• Earnest Student Loan Refinancing – Official lender site for rates and terms.
• LendKey Student Loan Refinancing – Official marketplace site.
• Federal Student Aid – Official government source for federal loan information.
• Student Loan Refinancing Guide – College Finance’s complete overview.
• IDR vs Refinancing: Which Is Right for You? – Detailed comparison of federal vs private options.
• Parent PLUS Loan Refinancing Options – Specific guide for parents.
• FAFSA Guide – Understanding financial aid basics.