Earnest Graduate School Loans Review

Earnest graduate student loans offer a flexible alternative to federal Grad PLUS loans for creditworthy borrowers, featuring no origination fees and customizable repayment terms. With its unique “precision pricing” model, Earnest allows students to tailor monthly payments to their budget, potentially saving thousands in interest compared to high-fee federal options.

In this comprehensive review, you’ll learn how Earnest compares to federal options and other private lenders. By the end of this guide, you will be able to:

• Compare Earnest’s rates and terms against federal Grad PLUS loans to determine the most cost-effective option.
• Evaluate eligibility requirements for borrowers and cosigners.
• Understand unique features like the 9-month grace period and Skip-A-Payment benefit.
• Navigate the application process to secure funding before tuition deadlines.

As a modern fintech lender, Earnest moves beyond rigid credit scores, looking at a borrower’s broader financial profile—including savings patterns and career potential—to offer competitive rates. For graduate students facing funding gaps after maximizing Direct Unsubsidized Loans, or for families with strong credit looking to avoid the high costs of federal Grad PLUS loans, Earnest provides a compelling solution. While federal loans offer income-driven repayment plans, private options like Earnest focus on reducing the total cost of borrowing through lower interest rates and fee elimination.

Context: how Earnest fits into graduate school financing

Most financial experts recommend a specific order of operations for graduate funding: free money (scholarships and grants) first, followed by federal Direct Unsubsidized Loans. To access these, you must first file the FAFSA. According to StudentAid.gov, eligible graduate students can borrow up to $20,500 annually in Direct Unsubsidized Loans as of October 2024. Because these loans come with flexible repayment options and access to Public Service Loan Forgiveness (PSLF), they should generally be maximized before looking elsewhere.

However, the total cost of attendance for medical, law, or business school often exceeds that $20,500 limit. This leaves a funding gap that must be filled by either federal Grad PLUS loans or private options like Earnest.

Earnest is designed specifically for this “gap” financing. Unlike the federal system, which offers a “one-size-fits-all” rate for Grad PLUS loans, Earnest underwrites loans based on financial health. For borrowers with excellent credit—or those with creditworthy cosigners—this can result in interest rates significantly lower than the federal fixed rate. Additionally, avoiding the federal origination fee can save borrowers hundreds or thousands of dollars upfront.

The trade-off is clear: by choosing Earnest, you forego access to federal benefits like income-driven repayment plans and forgiveness programs. Therefore, Earnest is best suited for borrowers who are confident in their post-graduation income and prioritize minimizing total interest costs over federal safety nets.

According to Betsy Mayotte, President of The Institute of Student Loan Advisors (TISLA), “In general, federal loans should be your first stop, but private loans can be appropriate when you’ve maxed out your federal eligibility.”

At-a-glance: Earnest vs. Grad PLUS quick comparison

Deciding between federal Grad PLUS loans and a private lender like Earnest primarily comes down to a trade-off between cost and flexibility versus safety and access. While Grad PLUS loans offer standardized terms for everyone regardless of income, Earnest rewards financial stability with potentially lower costs.

The following comparison highlights the key differences to help you determine which option aligns with your financial strategy.

Source: Earnest.com and StudentAid.gov (Federal rates and fees effective for the 2024–2025 academic year; Earnest example rate used for illustrative purposes only).

The data reveals a distinct cost advantage for Earnest if you have excellent credit. The combination of a 0% origination fee and potentially lower interest rates can save borrowers thousands over the life of the loan. However, this comes at the cost of federal protections. As financial aid expert Mark Kantrowitz notes, “Private loans can offer variable interest rates, which may be lower than federal fixed rates initially,” making them attractive for those prioritizing immediate savings.

Earnest is likely the superior choice for your gap financing if you meet the following criteria:

• You have a strong credit history (or a cosigner who does): To beat the federal rate of 9.08%, you or your cosigner typically need a credit score in the high 600s or 700s and a stable financial history.
• You want to avoid upfront fees: On a $30,000 loan, the federal origination fee costs you over $1,200 immediately. Choosing Earnest puts that money back into your tuition or living expenses.
• You do not plan to use Public Service Loan Forgiveness (PSLF): If you intend to work in the private sector with a high income, you likely won’t benefit from federal forgiveness programs, making the lower interest rate of a private loan more valuable.

If you have decided that the potential savings outweigh the loss of federal protections, the next step is ensuring you meet the specific underwriting criteria required for approval.

Eligibility requirements for Earnest graduate loans

Unlike federal loans, which generally require only a simple credit check for adverse history, Earnest evaluates your comprehensive financial profile to determine eligibility. This process, known as underwriting, ensures that borrowers have the ability to repay the loan without facing financial hardship. Because Earnest offers some of the most competitive rates in the market, their eligibility standards are stricter than many other lenders.

To qualify for an Earnest graduate loan, you—or your cosigner—must meet specific financial, academic, and residency criteria.

Earnest uses a unique underwriting model that considers your savings patterns, career potential, and financial habits alongside traditional metrics. However, there are hard minimums you must meet to be considered:

• Minimum Credit Score: According to Earnest, you typically need a FICO score of at least 650. However, approval at the lowest advertised rates usually requires a score in the mid-to-high 700s. If your score is lower, you may need to focus on improving your credit score before applying.
• Minimum Income: As reported by Earnest, the primary borrower or cosigner must have a verifiable annual income of at least $35,000.
• Credit History: You must have a clean financial history with no bankruptcy proceedings in the past three years and no accounts currently in collections.
• Debt-to-Income Ratio: While Earnest does not publish a strict cutoff, they assess your “free cash flow” to ensure you have enough income remaining after paying existing debts and living expenses to afford the new loan payments.

Many graduate students, particularly those who have been in school full-time, may not meet the income or credit history requirements on their own. In these cases, adding a creditworthy cosigner—such as a parent, guardian, or spouse—can be the key to approval.

A cosigner agrees to take legal responsibility for the loan if you cannot pay. This reduces the lender’s risk and can help you secure a lower interest rate. 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 graduate students who have high potential future earnings but limited current income.

Beyond finances, you must meet specific enrollment standards to receive funding:

• Enrollment Status: You must be enrolled at least half-time in a degree-granting graduate program.
• Eligible Schools: Your institution must be a Title IV school authorized to accept federal financial aid. Earnest generally does not lend to students attending for-profit institutions.
• Residency: You must be a U.S. citizen or a Permanent Resident with a 10-year non-expired Green Card. International students are typically not eligible, even with a U.S. cosigner, though eligibility rules can vary by lender.
• Age: You must be at least the age of majority in your state of residence (usually 18, but 19 or 21 in some states).

If you meet these requirements, you are positioned to move forward with the application. The next major factor to consider is what specific terms—rates, fees, and limits—you can expect based on your profile.

Interest rates, fees, and loan amounts

Understanding the total cost of your graduate loan involves more than just looking at the interest rate. It requires analyzing the complete pricing structure, including fees, term lengths, and available discounts. Earnest distinguishes itself in the private market through a low-fee model and a highly customizable approach to setting loan terms.

Earnest offers both fixed and variable interest rates, allowing borrowers to choose the strategy that best fits their risk tolerance. Your specific rate is determined by your creditworthiness (or that of your cosigner), your financial history, and the loan term you select.

• Fixed Rates: Earnest fixed rates are 2.99% - 12.78% APR. These rates remain the same for the life of the loan, providing predictable monthly payments. This is often the preferred choice for students who want stability and protection against future market rate hikes.
• Variable Rates: Earnest variable rates are 0.94% - 11.44% APR. These rates may start lower than fixed options but can fluctuate monthly based on market conditions (typically tied to the SOFR index). While this can offer initial savings, your payments could increase if the market changes.

As of October 2024, Earnest’s rates are competitive with or lower than federal Grad PLUS rates for highly qualified borrowers. However, unlike federal loans where everyone gets the same rate, Earnest rewards strong financial profiles with lower costs.

One of Earnest’s most distinct features is “Precision Pricing.” Most lenders force you into standard repayment blocks of 5, 10, or 15 years. Earnest takes a different approach by allowing you to choose your exact monthly payment or desired loan term based on your budget.

When finalizing your loan, you can use a slider tool to adjust your payment amount. This automatically calculates the corresponding term, which can be as specific as 7 years and 4 months or 11 years and 2 months (typically ranging from 5 to 15 years). This flexibility allows you to optimize your loan to pay the least amount of interest possible while keeping the monthly payment affordable for your specific income level.

Earnest is known for its “no-fee” policy, which can result in significant upfront savings compared to federal options.

• No Origination Fees: As noted in the comparison above, federal Grad PLUS loans charge a fee of over 4% that is deducted from your disbursement. Earnest charges 0%, meaning if you borrow $20,000, the full $20,000 goes to your school.
• No Late Fees: Uniquely among lenders, Earnest does not charge a fee for late payments. While late payments can still damage your credit score and accrue interest, you won’t be penalized with an extra charge for an accidental slip-up.
• No Prepayment Penalties: You can pay off your loan early or make extra payments at any time without a fee, allowing you to save on interest.

Earnest allows graduate students to borrow up to the total Cost of Attendance (COA) as certified by their school, minus any other financial aid received. The minimum borrowing amount is generally $1,000. While there are aggregate loan limits (a cap on the total amount of student debt you can hold), these are typically high enough to accommodate medical, law, and MBA students.

To further reduce costs, borrowers can take advantage of the Auto Pay Discount. According to Earnest, by enrolling in automatic payments, you receive a 0.25% interest rate reduction. While this may seem small, on a large graduate loan balance, it can save hundreds of dollars over the repayment term.

Once you have determined the right loan amount and term structure, the next critical step is understanding how you will pay it back—and what flexibility exists if your financial situation changes.

Repayment options and unique features

While low interest rates are often the primary draw for private loans, the flexibility of repayment terms is equally important for long-term financial health. Earnest distinguishes itself from many other lenders—and the federal government—by offering a suite of features designed to adapt to a graduate student’s changing financial life. As Jason Delisle of the American Enterprise Institute notes, “The private market can and does innovate — offering options federal loans don’t, such as variable rates or targeted underwriting.”

Most student loan lenders, including the federal government, place borrowers into rigid repayment “buckets” of 10, 20, or 25 years. Earnest offers a more customizable approach known as “Precision Pricing.”

This feature allows you to select your monthly payment amount based on your specific budget, rather than being forced into a predetermined term. When you adjust your target monthly payment, the loan term adjusts automatically to match. For example, instead of choosing between a 10-year or 15-year term, you might find that a term of 11 years and 4 months results in the exact monthly payment you can afford. Repayment terms for graduate loans generally range from 5 to 15 years, giving you control over how quickly you become debt-free.

How you manage your loan while you are still in school can significantly impact your total debt after graduation. Earnest provides four distinct repayment options during the in-school period and the grace period:

• Deferred Repayment: You make no payments while in school. Interest continues to accrue and will be added to your principal balance (capitalized) when repayment begins, increasing the total cost of the loan.
• Fixed Repayment: According to Earnest, you pay a flat fee of $25 per month while enrolled. This helps offset some accruing interest and builds a habit of repayment without a heavy financial burden.
• Interest-Only Repayment: You pay the accrued interest each month. This prevents the loan balance from growing while you are in school, ensuring you graduate owing only the original principal amount.
• Full Principal and Interest: You begin making full payments immediately. This is the most aggressive strategy and results in the lowest total cost of borrowing, though it requires significant income while studying.

Beyond standard repayment structures, Earnest offers several features that provide extra breathing room for recent graduates.

Extended 9-Month Grace Period
According to Earnest, most federal and private loans offer a 6-month grace period after graduation before full payments begin, but Earnest extends this to 9 months. This additional quarter of a year can be critical for graduate students transitioning into competitive fields like law or medicine, where securing a residency or passing bar exams may delay full-time income.

Skip-A-Payment Feature
Financial surprises happen. As reported by Earnest, eligible borrowers can skip one payment every 12 months without penalty. To qualify, you must be in good standing and have made on-time payments for at least six consecutive months. While interest continues to accrue during the skipped month and the final payoff date is pushed back, this feature provides a safety valve for unexpected expenses that federal loans do not offer outside of formal deferment or forbearance requests.

Biweekly Autopay
To help borrowers pay off debt faster, Earnest allows for biweekly automatic payments. By paying half of your monthly bill every two weeks, you end up making 26 half-payments (or 13 full payments) per year rather than 12. This simple strategy reduces the principal balance faster and lowers the total interest paid over the life of the loan.

These features make the repayment process smoother, but they are only accessible if you are approved for the loan in the first place. For many graduate students, accessing these benefits—and the lowest interest rates—requires the assistance of a financial partner.

Cosigner options and release policy

For many graduate students, the biggest hurdle to securing a low-interest private loan isn’t a lack of future potential, but a lack of current credit history. Even if you have a strong income trajectory, lenders like Earnest look at your financial picture today. This is where a creditworthy cosigner becomes a powerful tool in your financing strategy.

Adding a cosigner—typically a parent, spouse, or other financially stable adult—does more than just get you approved. It allows you to “borrow” their credit score, often unlocking the lowest advertised interest rates. According to Mark Kantrowitz, financial aid expert, “Most students will need a cosigner to qualify for a private student loan.” This is a standard part of the process and not a reflection of your future capability to repay.

One of the most significant advantages Earnest offers over federal Grad PLUS loans is the potential for cosigner release. With a federal Grad PLUS loan, if you require an “endorser” (the federal equivalent of a cosigner) due to adverse credit, that endorser usually remains liable for the life of the loan. Earnest, however, provides a clear exit strategy.

You can apply to remove your cosigner from the loan obligation once you have established your own financial footing. According to Earnest, to qualify for cosigner release, you must meet the following criteria:

• 24 Consecutive On-Time Payments: You must make two years of on-time payments consisting of both principal and interest. Note that interest-only or fixed $25 payments made during school do not count toward this tally; the clock typically starts once full repayment begins.
• Creditworthiness Check: At the time of the request, you (the primary borrower) must meet Earnest’s underwriting standards on your own. This includes passing a credit check and proving sufficient income to manage the debt without assistance.
• Good Standing: The loan cannot be in forbearance or deferment when you apply for release.

Cosigner release is not automatic; you must actively request it. Once you have made your 24th qualifying payment, you can submit a request form to Earnest. They will review your current credit profile, income, and payment history.

If approved, your cosigner is completely absolved of legal responsibility for the remaining balance. This protects their credit score and debt-to-income ratio from being impacted by your student loan in the long term. If your request is denied (usually due to income or credit score issues), the loan continues as is, and you can reapply for release after improving your financial metrics.

With a clear understanding of who will be on the loan—whether just you or you and a cosigner—you are ready to navigate the application steps to secure your funding.

Application process and timeline

One of the primary advantages of choosing a fintech lender like Earnest over traditional banks is the streamlined, digital-first application process. Unlike the paperwork-heavy processes of the past, Earnest allows borrowers to complete the entire application online, often in a single sitting. However, understanding the timeline is critical to ensuring your funds arrive before your tuition bill is due.

The process begins with a preliminary rate check, which takes about two minutes. You will provide basic information—such as your degree type, school, income, and requested loan amount. Earnest performs a soft credit inquiry at this stage, meaning you can view your estimated interest rates and terms without impacting your credit score. This allows you to compare Earnest’s offer against federal Grad PLUS loans or other private lenders risk-free.

If you like the rates offered, you proceed to the full application. At this point, a hard credit inquiry will occur. You (and your cosigner, if applicable) will need to upload digital copies of key documents to verify your identity and financial standing:

• Government-issued ID (Driver’s license or passport)
• Proof of income (Recent pay stubs or tax returns)
• Proof of residence
• Enrollment verification (if currently available)

Once Earnest approves your application, they must send it to your university for “school certification.” This is a mandatory step where the financial aid office confirms your enrollment status and verifies that the loan amount does not exceed your Cost of Attendance (COA). You cannot borrow more than the school’s certified limit, regardless of how much Earnest approved you for.

While Earnest can approve an application in a matter of days, the school certification process can take several weeks, especially during peak seasons like August and January. To avoid stress, it is best to apply at least 30 days before your tuition deadline.

• Application & Approval: 1–3 business days (if documents are complete).
• School Certification: 2–4 weeks (depends entirely on your school’s financial aid office).
• Disbursement: Funds are sent directly to the school on the date set by the university, usually at the start of the semester.

With the logistics of the application understood, it is time to weigh the final verdict on whether this loan is the right fit for your education goals.

Ready to see your specific rate? Check your rate with Earnest in 2 minutes (won’t affect your credit score).

Pros and cons of Earnest graduate school loans

No student loan product is universally perfect; the right choice depends entirely on your specific financial goals, career trajectory, and risk tolerance. Earnest offers a compelling package for creditworthy borrowers who want to minimize costs, but it lacks the safety nets inherent in the federal system. Weighing these strengths and limitations is essential before signing a promissory note.

Earnest is designed to compete on cost and flexibility, offering features that often surpass standard federal terms for qualified applicants.

• Significant Upfront Savings: The absence of an origination fee is a major financial advantage. By avoiding the ~4% fee charged on federal Grad PLUS loans, you effectively lower your total borrowing cost immediately.
• Precision Pricing: Unlike the rigid 10- or 25-year terms common elsewhere, Earnest allows you to customize your loan term to the month. This helps you find a monthly payment that fits your budget without extending the loan longer than necessary.
• Extended Grace Period: The 9-month grace period provides three extra months of breathing room compared to the standard 6-month federal window, which is particularly valuable for graduates seeking employment or residency placements.
• Payment Flexibility: Features like Skip-A-Payment and biweekly autopay offer a level of control over repayment that is rare in the private market.
• Cosigner Release: The clear path to releasing a cosigner after 24 on-time payments offers an exit strategy for parents or spouses that federal Grad PLUS endorsers generally do not have.

While the financial terms are attractive, private loans come with structural limitations that can be risky depending on your career path.

• Loss of Federal Protections: This is the most significant trade-off. Earnest loans are not eligible for federal Income-Driven Repayment (IDR) plans or Public Service Loan Forgiveness (PSLF). If you plan to work in public service or expect a lower starting salary, this could be a dealbreaker.
• Strict Eligibility Standards: Unlike federal loans, which are available to almost any graduate student without adverse credit, Earnest requires a strong credit history and verifiable income. Many students will not qualify without a cosigner.
• Variable Rate Risk: If you choose a variable rate to secure a lower initial payment, you take on the risk that interest rates—and your monthly payments—could rise significantly over time.
• Limited Hardship Options: While Earnest offers some forbearance options, they are not as generous or long-term as federal deferment policies for economic hardship or unemployment.

The decision ultimately comes down to a balance between potential savings and necessary security. If you are confident in your high-income career path and want to aggressively pay down debt, the math often favors Earnest. However, if you value the safety net of payments tied to your income, federal loans remain the gold standard.

As Betsy Mayotte, President of The Institute of Student Loan Advisors (TISLA), advises, “In general, federal loans should be your first stop, but private loans can be appropriate when you’ve maxed out your federal eligibility.”

Earnest is best viewed not as a replacement for subsidized federal aid, but as a strategic tool for bridging funding gaps or replacing high-fee Grad PLUS loans for borrowers with strong financial profiles. Understanding these pros and cons clarifies exactly who stands to benefit most from this lender.

Who should consider Earnest graduate loans

Determining whether Earnest is the right partner for your graduate education requires a clear assessment of your financial health and career trajectory. While the potential for interest savings is significant, Earnest loans are designed for a specific type of borrower and are not a universal replacement for federal aid.

Earnest is likely the superior strategic choice for your funding gap if you fit the following profile:

• You have excellent credit: You or your cosigner have a FICO score of 700+ and a stable income history, qualifying you for rates that beat the fixed federal Grad PLUS rate.
• You have exhausted cheaper federal options: You have already maximized your Direct Unsubsidized Loans ($20,500 annual limit) and still need funds to cover tuition or living costs.
• You are entering the private sector: You do not intend to pursue Public Service Loan Forgiveness (PSLF) and are confident in your ability to make standard monthly payments without relying on income-driven safety nets.
• You want to avoid fees: You want to ensure 100% of your borrowed amount goes to school expenses rather than losing ~4% to federal origination fees.

If this sounds like you, securing a private loan could save you thousands of dollars over the life of your debt.

Find out how much you could save. See your personalized rate with Earnest (checking won’t affect your credit score).

Conversely, you should likely stick with federal Grad PLUS loans or compare other private student loan lenders if:

• You need federal protections: If you plan to work for a non-profit or government agency, the value of PSLF forgiveness far outweighs the interest rate savings of a private loan.
• Your credit is “fair” or “building”: If your credit score is in the mid-600s and you do not have a creditworthy cosigner, you may be denied by Earnest or offered a rate higher than the federal cap.
• Your income is uncertain: If you anticipate a lower starting salary or variable income, federal Income-Driven Repayment (IDR) plans provide a safety valve that private lenders cannot match.

By identifying which category you fall into, you can make a borrowing decision that aligns with your long-term financial security rather than just immediate needs.

Earnest stands out as a leading choice for graduate students and families focused on minimizing the total cost of borrowing. By eliminating the origination fees charged by federal Grad PLUS loans and offering competitive interest rates to creditworthy applicants, this lender provides a financially efficient way to cover funding gaps.

As you weigh your options, keep these core advantages in mind:

• Upfront Savings: With no origination fees, you avoid the ~4% deduction taken from federal Grad PLUS loans.
• Budget Control: Precision Pricing allows you to customize your monthly payment and loan term to fit your post-graduation income.
• Future Flexibility: The option to release a cosigner after 24 on-time payments offers a clear path to financial independence.

Remember, private loans should generally be considered only after you have maximized your $20,500 in federal Direct Unsubsidized Loans. If you still need funds, your next step is to check your rate. Because Earnest uses a soft credit inquiry for pre-qualification, you can view your estimated rate and terms with no impact to your credit score. We recommend comparing this offer against other top-rated lenders to ensure you secure the best possible terms for your education.

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If you still have questions about eligibility, timing, or how Earnest compares to other options, the following frequently asked questions address the most common concerns for graduate borrowers.

Frequently asked questions

Below are answers to the most common questions students and families have when evaluating Earnest for graduate school financing. These responses address eligibility nuances and specific loan features to help you make a confident decision.

According to Earnest, you typically need a minimum FICO score of 650 for the primary borrower or cosigner. However, meeting the minimum does not guarantee the lowest interest rate. To beat the federal Grad PLUS fixed rate, you generally need a score in the mid-to-high 700s along with a stable income history. If your credit score is on the lower end, applying with a creditworthy cosigner is the most effective way to secure competitive terms.

Yes, as long as you are enrolled at least half-time at an eligible Title IV degree-granting institution. You do not need to be a full-time student to qualify. This flexibility makes Earnest a strong option for working professionals pursuing an MBA or master’s degree in the evenings. Keep in mind that you must maintain at least half-time status to keep your loan in in-school deferment.

Both are leading private lenders, but they offer different benefits. Earnest is often favored for its borrower-friendly features, such as zero late fees, a 9-month grace period, and the ability to customize your payment amount via Precision Pricing. Sallie Mae is a larger lender that may offer a wider range of niche loan products, such as specific loans for bar study or medical residency. We recommend you compare rates from multiple lenders to see which offers the lowest cost for your specific credit profile.

Yes. Private student loans do not have prepayment penalties, meaning you can refinance your Earnest loan with another lender at any time if interest rates drop or your credit score improves. Conversely, you can also refinance existing loans with Earnest. However, proceed with caution if refinancing federal loans, as doing so permanently removes federal protections like income-driven repayment and forgiveness.

Yes. Earnest lends up to 100% of the school-certified Cost of Attendance, making their loans suitable for high-cost professional programs like law, business, and medical school. The extended 9-month grace period is particularly valuable for these students, as it provides extra time to study for the bar exam or secure a medical residency before full repayment begins.

References and resources

To assist you in making an informed decision about your graduate school financing, we have compiled the essential resources and tools referenced throughout this guide. Use these links to verify current rates, compare federal options, and start your application.

• Earnest Rate Check: View your personalized rate and terms in about two minutes without affecting your credit score.
• Federal Student Aid: Visit StudentAid.gov to review current Grad PLUS interest rates, origination fees, and entrance counseling requirements.
• College Finance Educational Guides:
  • Best Private Student Loans Guide
  • Complete Guide to FAFSA
  • Student Loan Refinancing Guide
• Budgeting Tools: Use the Earnest Precision Pricing calculator to estimate how different loan terms will impact your monthly budget.