Earnest vs Nelnet: Student loan refinancing compared
Earnest vs Nelnet: Earnest fits borrowers seeking customizable payments and precision pricing; Nelnet suits those prioritizing longer terms and federal-loan compatibility. You’ll learn how rates, approval odds, and protections compare—so you can choose confidently.
Learning objectives
By the end of this guide, you’ll be able to:
- Compare interest rates, repayment terms, and eligibility requirements between Earnest and Nelnet.
- Evaluate which lender’s underwriting approach fits your financial profile and credit history.
- Assess the specific borrower protections and hardship options offered by each lender.
- Make a confident decision on which lender is the best partner for your student loan refinancing journey.
Earnest vs Nelnet: at a glance
Before diving into the specific rates and terms, it helps to understand the fundamental differences between these two lenders. Refinancing generally makes sense when you can secure a lower interest rate, reduce your monthly payment, or wish to remove a cosigner from an existing loan. However, the right choice often depends on whether your primary goal is maximizing flexibility or prioritizing stability.
Earnest is a technology-forward lender (acquired by Navient in 2017) known for its “Precision Pricing” model. Rather than offering standard rate tiers, Earnest uses advanced algorithms to look beyond just credit scores, considering factors like savings patterns and career trajectory. This approach often allows creditworthy borrowers to access highly customized rates and terms.
Nelnet Bank is the private lending arm of Nelnet, a massive student loan servicer with decades of experience managing federal loans. For borrowers who value working with an established financial institution, Nelnet offers a sense of stability. Their refinancing product is straightforward, focusing on competitive fixed and variable rates with the backing of a trusted name in the industry.
The key difference lies in the user experience: Earnest offers unparalleled customization, allowing you to pick your exact monthly payment and adjust terms down to the month. Nelnet offers a more traditional lending experience with standard terms but brings deep expertise in loan servicing. As you compare, consider whether you prefer innovative digital tools or a classic banking relationship.
Earnest vs Nelnet: quick comparison table
To help you compare these options quickly, the table below outlines the core features, fees, and terms for both lenders. This snapshot provides the data you need to assess which lender aligns with your financial goals.
| Feature | Earnest | Nelnet Bank |
|---|---|---|
| Fixed APR Range | Competitive fixed rates available | Competitive fixed rates available |
| Variable APR Range | Competitive variable rates available | Competitive variable rates available |
| Loan Terms | 5–20 years (customizable) | 5, 7, 10, 15, 20 years |
| Loan Amounts | $5,000 – $500,000 | $5,000 – $500,000 (varies by degree) |
| Autopay Discount | 0.25% | 0.25% |
| Origination Fees | None | None |
| Late Fees | None | None |
| Cosigner Release | Not available for refi | Available after 24 on-time payments |
| Forbearance | Up to 12 months total | Up to 24 months total |
Source: Earnest.com, NelnetBank.com (Data effective as of January 2025).
Earnest vs Nelnet: rates and terms
Interest rates and repayment terms are often the deciding factors for borrowers. While both lenders offer competitive pricing, they determine these rates differently.
Earnest utilizes a unique underwriting model called “Precision Pricing.” Instead of simply placing you in a rate bucket based on your credit score, as of January 2025, Earnest evaluates a broader financial picture including your education, employment history, cash flow, and savings habits. This can result in a highly personalized rate that matches your specific budget.
Nelnet Bank follows a more traditional underwriting process. They primarily assess your credit score, income, and debt-to-income (DTI) ratio to determine your eligibility and interest rate. If you have a strong credit history and steady income, Nelnet provides competitive market rates that rival other top lenders.
Both lenders offer fixed and variable interest rates. A fixed rate remains the same for the life of the loan, providing predictability for your budget. A variable rate 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,” making them attractive for borrowers who plan to pay off their debt aggressively.
This is where Earnest distinguishes itself. While Nelnet offers standard term lengths of 5, 7, 10, 15, and 20 years, Earnest allows borrowers to choose their exact monthly payment amount. Based on the payment you choose, your term adjusts automatically—for example, you could have a term of 8 years and 4 months. This flexibility allows you to align your student loan payments perfectly with your monthly cash flow.
As shown in the comparison table above, both lenders cap their terms at 20 years, but Earnest’s ability to customize the timeline between 5 and 20 years offers a level of precision that traditional lenders like Nelnet generally do not match.
Eligibility and approval requirements
Understanding the eligibility criteria is crucial before applying, as it saves time and helps manage expectations regarding approval odds.
Earnest is known for strict but holistic eligibility requirements. As of January 2025, according to Earnest.com, borrowers must typically have a minimum credit score of 680, though they look at more than just the score. You must be employed or have a written job offer starting within 6 months. Uniquely, Earnest also requires that you have enough savings to cover at least two months of normal expenses. They generally do not allow cosigners for refinancing, meaning you must qualify on your own merits.
Nelnet Bank’s requirements are more aligned with traditional banking standards. As of January 2025, according to NelnetBank.com, they typically look for a minimum credit score around 680 and a minimum annual income of $36,000. They also pay close attention to your debt-to-income ratio. Unlike Earnest, Nelnet allows you to apply with a cosigner. This can be a significant advantage for younger borrowers or recent graduates who may not yet meet the income or credit requirements on their own.
Both lenders offer a quick pre-qualification process that involves a soft credit check, allowing you to see potential rates without hurting your credit score. If you proceed to a full application, you will need to provide documentation such as pay stubs, tax returns, and statements for the loans you wish to refinance. Approval times vary, but because Earnest uses an automated data retrieval system for bank accounts, their process can sometimes be faster for applicants who are comfortable linking their financial accounts.
Unique features and borrower benefits
Beyond the interest rate, the specific features offered by a lender can add significant value to your loan experience. Here is how Earnest and Nelnet compare in terms of borrower perks.
Earnest is built for borrowers who want active control over their debt. As of January 2025, according to Earnest.com, their standout features include:
- Skip-A-Payment: Borrowers can request to skip one payment every 12 months (after making 6 months of on-time payments). The skipped payment is added to the end of the loan term.
- Bi-weekly Payments: You can set up automatic payments every two weeks to pay off your loan faster and save on interest.
- No Fees: Earnest charges zero fees—no origination, prepayment, or late fees.
- Dashboard: A highly rated mobile app and dashboard make managing the loan simple.
Nelnet leverages its history as a major servicer to provide a reliable experience:
- Cosigner Release: As noted in the eligibility section, according to NelnetBank.com, Nelnet allows for cosigner release after 24 consecutive on-time payments. According to Mark Kantrowitz, financial aid expert, “Cosigner release is a valuable feature offered by some private lenders, rewarding responsible repayment.” This is a major advantage over Earnest for borrowers using a cosigner.
- Servicing Expertise: Because Nelnet services millions of federal loans, their customer service team is deeply experienced in handling complex student loan questions.
- Standard Autopay: Like Earnest, Nelnet offers a 0.25% interest rate reduction when you enroll in automatic payments.
If you anticipate needing a cosigner to qualify, Nelnet’s inclusion of a release option is a critical differentiator. However, if you qualify independently, Earnest’s payment flexibility offers tools to manage cash flow that Nelnet does not provide.
Hardship protections and forbearance options
No one plans for financial difficulty, but having a safety net is essential. It is important to remember that private student loans generally offer fewer protections than federal loans—refinancing federal loans means losing access to Income-Driven Repayment (IDR) plans and Public Service Loan Forgiveness (PSLF). However, both Earnest and Nelnet offer their own versions of hardship assistance.
As of January 2025, according to Earnest.com, Earnest offers a forbearance option for borrowers experiencing involuntary unemployment or other economic hardships. You can typically request forbearance in 3-month increments, up to a maximum of 12 months over the life of the loan. During this time, simple interest continues to accrue. They also offer loan discharge in the unfortunate event of the borrower’s death or total and permanent disability.
According to NelnetBank.com, Nelnet provides a slightly longer safety net. Borrowers may be eligible for up to 24 months of forbearance over the life of the loan for qualifying hardships. This extended duration can provide greater peace of mind for borrowers worried about long-term economic volatility. Like Earnest, Nelnet offers discharge policies for death and permanent disability.
While Nelnet offers a longer total duration for forbearance, both lenders require you to apply and prove hardship. If you have a high risk of income instability, maintaining your federal loans (and their access to income-driven plans) might be safer than refinancing with either private lender.
Which lender is right for you? Decision framework
Choosing between these two strong contenders comes down to your financial profile and personal preferences. Use this checklist to determine which lender aligns best with your situation.
Choose Earnest if:
- You want total control over your budget: You prefer to pick an exact monthly payment amount rather than being forced into a 5, 10, or 15-year bucket.
- You are financially established: You have a strong credit score (680+), steady income, and healthy savings habits that Earnest’s algorithm will reward.
- You do not need a cosigner: You can qualify for the loan entirely on your own.
- You value flexibility: Features like “Skip-A-Payment” and bi-weekly autopay appeal to your management style.
Choose Nelnet if:
- You need a cosigner: You require a cosigner to get approved or secure a lower rate, and you want the option to release them later.
- You value stability and tenure: You prefer borrowing from a bank with a long-standing reputation in the student loan industry.
- You want a longer safety net: The option for up to 24 months of forbearance provides extra security against long-term financial setbacks.
- You prefer standard terms: You want a straightforward, no-frills loan structure without complex customization options.
Still unsure? The most effective strategy is to check your rate with both. Since both lenders offer pre-qualification with a soft credit check, you can view your actual offers side-by-side without affecting your credit score.
Frequently asked questions
Yes, both lenders allow you to refinance federal student loans, private student loans, or a combination of both. However, be aware that by refinancing federal loans, you permanently lose federal benefits like income-driven repayment plans and loan forgiveness. For more details on this trade-off, review our complete guide to student loan refinancing.
As noted in the Unique Features section, Nelnet offers cosigner release after 24 consecutive on-time payments, subject to credit approval. Earnest generally does not offer cosigner release for their refinancing products because they typically do not accept cosigners for refinancing applications in the first place.
There is no single answer because rates depend entirely on your personal financial profile. Earnest’s precision pricing may offer lower rates for borrowers with excellent savings habits, while Nelnet may offer better rates for borrowers with strong cosigners. It is best to pre-qualify with both to see which model favors your specific situation.
The timeline from application to funding typically takes 2 to 4 weeks for both lenders. Earnest may be slightly faster for some users due to their automated financial data linking, but the speed often depends on how quickly you provide required documentation like payoff verification statements.
Yes, both Earnest and Nelnet allow parents to refinance Parent PLUS loans. This can be a good strategy to lower the interest rate, which is often higher on PLUS loans compared to other federal options.
Refinancing your student loans is a powerful way to take control of your debt, but the right partner matters. Earnest and Nelnet represent two different philosophies: Earnest offers high-tech customization for the independent, creditworthy borrower, while Nelnet provides a stable, cosigner-friendly option backed by decades of industry experience.
Key takeaways:
- Earnest excels for borrowers who want to customize their payment amount and term length down to the penny and month.
- Nelnet is the better choice if you need a cosigner or value the option of cosigner release later in the loan term.
- Both lenders offer competitive fixed and variable rates and charge no origination or prepayment fees.
- Pre-qualifying with multiple lenders is the only way to ensure you are getting the absolute lowest rate available to you.
Refinancing is a smart financial move when done thoughtfully. By comparing your options, you ensure that your new loan serves your financial future, not just your current monthly budget.
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References and resources
To further explore your options and verify details, consider these resources:
- Earnest.com – Official refinancing rates and calculator
- NelnetBank.com – Official product details and application
- StudentAid.gov – Information on federal loan consolidation and forgiveness
- CFPB Student Loan Resources – Unbiased guidance on managing student debt
- College Finance Refinancing Guide – Comprehensive guide to the pros and cons of refinancing
- Private Student Loans Hub – Compare other top lenders
- FAFSA Guide – Understanding your federal aid eligibility
