Earnest private student loans review

Earnest offers private student loans with customizable terms, competitive rates, and a generous 9-month grace period. This lender is best suited for students and families with strong credit profiles who need to bridge funding gaps after exhausting federal aid options.

As a tech-forward lender owned by Navient, Earnest distinguishes itself through a data-driven underwriting process that considers more than just a credit score. They are particularly known for their flexibility, allowing borrowers to customize loan terms to fit a specific monthly budget—a feature they call “Precision Pricing.” Unlike traditional lenders that force you into standard 5, 10, or 15-year terms, Earnest allows you to select a term that aligns with your financial goals, potentially saving thousands in interest over the life of the loan.

While private loans are a helpful tool, they function differently than government aid. It is essential to maximize federal student loans and scholarships first, as these come with fixed rates and protections that private lenders rarely match. However, when those limits are reached, private financing becomes a necessary next step for many. According to Mark Kantrowitz, financial aid expert, “Private loans can be a good option when federal loans don’t cover the full cost of attendance.”

This review provides a transparent, detailed look at Earnest’s student loan offerings for the current academic year. You will learn about interest rate ranges, specific eligibility criteria for students and cosigners, and the pros and cons of their unique borrower protections. We will also walk through the application process and explore how their repayment flexibility compares to other top lenders. By the end, you will have the clear, actionable information needed to decide if Earnest is the right partner for your college funding strategy.

Earnest at a glance: quick decision framework

Before diving into the fine print, it is helpful to determine quickly if Earnest aligns with your financial profile and funding goals. Earnest is generally best suited for borrowers with established credit histories or those applying with a creditworthy cosigner who prioritize flexibility over traditional banking relationships.

Use this checklist to see if Earnest matches your current situation:

• Earnest is a fit if:
  • You or your cosigner have a credit score of 650 or higher.
  • You want to customize your monthly payment amount to fit a specific budget.
  • You value a digital-first experience and do not need a physical bank branch.
  • You anticipate needing a longer grace period after graduation to find employment.
• Earnest is NOT a fit if:
  • You are eligible for federal subsidies or need access to federal protections like Public Service Loan Forgiveness (PSLF).
  • You or your cosigner have a credit score below 650 or a history of bankruptcy.
  • You reside in Nevada (Earnest does not currently lend there).
  • You need a loan for less than $1,000.

This overview covers the essential loan terms available for the 2024-2025 academic year.

Source: Earnest.com (Terms accurate as of January 2025)

While many private lenders offer similar rates, Earnest differentiates itself through three specific borrower benefits designed to make repayment more manageable:

1. Precision Pricing: Instead of forcing you into a standard 10-year or 15-year term, Earnest allows you to choose your exact monthly payment amount. The system then adjusts your term and interest rate to match that budget, potentially saving you interest if you choose a higher payment.
2. 9-Month Grace Period: Most federal and private loans offer a 6-month grace period after graduation. Earnest provides 9 months, giving new graduates extra time to secure a job and settle finances before bills begin.
3. Skip-A-Payment: Once repayment begins, borrowers in good standing can request to skip one payment every 12 months to handle short-term financial emergencies without penalty (though interest continues to accrue).

According to Jason Delisle, a higher education finance expert, “The private market can and does innovate — offering options federal loans don’t.” Earnest’s approach to customizable terms is a prime example of this innovation, offering flexibility that rigid federal repayment schedules often lack. If these features align with your needs, the next sections will detail exactly how the costs and eligibility rules work.

Loan amounts, interest rates, and repayment terms

Understanding the specific costs and limitations of a loan is crucial before signing any agreement. Earnest structures its loans to cover the gap between federal aid and the total cost of college, but the exact terms depend heavily on the borrower’s or cosigner’s creditworthiness.

According to Earnest.com, as of January 2025, borrowers can request a minimum of $1,000 up to 100% of the school-certified Cost of Attendance (CoA). The CoA includes tuition, room and board, books, and other miscellaneous fees, minus any other financial aid received (such as scholarships, grants, or federal loans).

Unlike some lenders that impose strict lifetime borrowing caps, Earnest evaluates aggregate limits based on the degree type and the individual’s credit profile. This makes it a viable option for medical, law, or graduate students who may face higher tuition costs than the typical undergraduate cap allows.

Earnest offers both fixed and variable interest rates. Your specific rate is determined by your credit score, income, degree type, and the repayment term you choose. Generally, shorter repayment terms qualify for lower interest rates.

• Fixed Rates: These remain the same for the life of the loan, providing predictable monthly payments. According to Earnest.com, fixed rates are 2.99% - 12.78% APR as of January 2025 (including autopay discount).
• Variable Rates: These rates may start lower than fixed options but can fluctuate monthly based on market conditions (specifically the SOFR index). As reported by Earnest.com, variable rates are 0.94% - 11.44% APR as of January 2025.

Choosing between these options requires weighing risk against potential savings. According to Mark Kantrowitz, financial aid expert, “Private loans can offer variable interest rates, which may be lower than federal fixed rates initially.” However, if market rates rise, your monthly payment on a variable loan will increase.

Borrowers can also lower their rate by 0.25% by enrolling in Auto Pay. While Earnest does not currently offer loyalty discounts for existing customers, the Auto Pay reduction is standard across all their student loan products.

Most lenders restrict you to standard 5, 10, or 15-year terms. Earnest differs by offering terms ranging from 5 to 20 years, customizable in monthly increments. Through their “Precision Pricing” model, you can adjust your monthly payment slider to see how it affects your term and total interest cost.

The table below illustrates how different term lengths impact your monthly obligation and the total cost of borrowing a $20,000 loan at a hypothetical 7% fixed interest rate.

Source: College Finance calculation based on standard amortization (Examples for illustrative purposes only)

As shown above, extending your term lowers your monthly bill but significantly increases the total amount paid over time. For more details on how rates impact long-term costs, review our guide to student loan interest rates.

With these financial parameters established, the next step is determining if you meet the specific credit and enrollment criteria required to qualify for these rates.

Eligibility requirements and application process

While federal student loans are typically available to any student enrolled at an eligible school regardless of credit history, private lenders like Earnest operate differently. Approval depends heavily on your financial health and creditworthiness. Because Earnest uses a unique underwriting model that considers factors like savings patterns and earning potential, their eligibility criteria are specific and strictly enforced.

To qualify for an Earnest student loan, the primary borrower—or their cosigner—must demonstrate financial stability. According to Earnest.com, as of January 2025, the core requirements include:

• Credit Score: A minimum FICO score of 650 is required. However, the most competitive rates are generally reserved for scores in the high 700s.
• Credit History: Borrowers need at least three years of credit history. Since many college students have not yet established this, applying with a qualified cosigner is common practice.
• Income: There is a minimum income requirement of $35,000 per year for the primary borrower or cosigner.
• Debt-to-Income (DTI) Ratio: Earnest looks for a manageable debt load. While specific cutoffs vary, having a high amount of existing debt relative to income can hinder approval.
• Citizenship: Applicants must be U.S. citizens or Permanent Residents with a 10-year Permanent Resident Card. DACA recipients are also eligible to apply if they have a valid Social Security Number.

For most undergraduate students, meeting the income and credit history requirements alone is difficult. This is where a creditworthy cosigner—typically a parent, guardian, or relative—becomes essential. According to Mark Kantrowitz, financial aid expert, “Most students will need a cosigner to qualify for a private student loan.”

Adding a cosigner not only increases your chances of approval but can also significantly lower your interest rate. A unique benefit of Earnest is its transparent cosigner release policy. You can apply to release your cosigner from the loan obligation after making 24 consecutive, on-time monthly payments of principal and interest, provided you meet the credit and income requirements on your own at that time.

Earnest is known for its streamlined, digital-first application process. You can move from checking your rate to signing your loan agreement entirely online.

1. Check Your Rate (2 Minutes): Start by filling out a prequalification form on the Earnest website. This triggers a “soft credit pull,” which allows you to see estimated interest rates and terms without affecting your credit score.
2. Submit Full Application (15 Minutes): If you like the rates offered, proceed to the full application. This stage requires a “hard credit pull,” which may temporarily lower your credit score by a few points.
3. Upload Documentation: You will need to provide digital copies of key documents to verify your identity and finances. Be prepared to upload:
   • Government-issued ID (Driver’s license or passport)
   • Proof of income (Recent pay stubs or tax returns)
   • Proof of enrollment (Acceptance letter or transcript)
   • Payoff verification (if refinancing or consolidating)
4. School Certification and Disbursement: Once you sign the loan agreement, Earnest sends the details to your school for certification. The school confirms your enrollment and the loan amount (ensuring it doesn’t exceed the Cost of Attendance). Funds are then disbursed directly to the school on the dates they request, which can take anywhere from a few days to a few weeks depending on the university’s timeline.

Once your application is approved and the logistics are settled, you gain access to the specific borrower benefits that distinguish Earnest from traditional banks.

Unique features: Precision Pricing and borrower benefits

While interest rates often grab the headlines, the day-to-day experience of managing student debt is defined by the loan’s features. Earnest has built its reputation on offering borrower-centric tools that provide flexibility where traditional banks—and even federal loans—often remain rigid. These features are designed to align your loan repayment with your actual financial life, rather than forcing you into a standardized box.

Most private lenders restrict you to standard term buckets, typically offering only 5, 10, 15, or 20-year options. Earnest takes a radically different approach with its Precision Pricing model. This feature allows you to input the exact monthly payment you can afford based on your current budget. The system then automatically calculates the corresponding interest rate and loan term to match that specific number.

For example, if a standard 10-year term results in a $300 monthly payment but you know you can afford $350, you can adjust the payment slider in your dashboard. This adjustment might shorten your term to 8 years and 3 months, potentially lowering your interest rate and saving you money over the life of the loan. Conversely, if you need a lower payment, you can extend the term to the exact month needed to hit that target.

Federal Direct Loans and the majority of private lenders offer a six-month grace period after graduation before full principal and interest payments begin. Earnest extends this window to nine months. This extra quarter of a year can be critical for recent graduates who need more time to secure employment, relocate, or save for a rental deposit.

However, it is vital to understand the cost of this flexibility. Unlike subsidized federal loans, interest on private loans accrues during the grace period. If you utilize the full nine months without making payments, that accrued interest will be capitalized (added to your principal balance), increasing the total cost of your loan.

Financial stability rarely follows a straight line. Recognizing this, Earnest allows borrowers to skip one payment every 12 months to handle short-term financial emergencies, such as unexpected medical bills or car repairs. To qualify, you must be in good standing and have made at least six consecutive on-time payments of principal and interest.

According to Jason Delisle, a higher education finance expert, “The private market can and does innovate — offering options federal loans don’t.” This feature is a prime example of that innovation, offering a safety valve that protects your credit score during a tight month. Note that the skipped payment is not forgiven; it is moved to the end of your loan term, and interest continues to accumulate during the skip.

All these features are managed through a modern, user-friendly dashboard or mobile app. If you need assistance, Earnest relies on its “Client Happiness Team”—an in-house customer service group designed to provide quick answers via chat or email, avoiding the long hold times common with traditional loan servicers.

While these features offer significant convenience, it is equally important to understand the fee structures and what happens if you face long-term financial hardship beyond a single skipped payment.

Fees, forbearance options, and borrower protections

One of the most compelling aspects of Earnest’s student loan product is its simplified fee structure. While many lenders charge fees that can add up over time, Earnest has eliminated all standard administrative costs. This “no-fee” policy is designed to keep the cost of borrowing transparent and predictable.

According to Earnest.com, as of January 2025, Earnest charges zero fees in the following categories:

• Origination Fees: $0 (Federal loans currently charge 1.057% for undergraduates and 4.228% for PLUS loans as reported by StudentAid.gov for loans disbursed between October 1, 2024 and September 30, 2025).
• Prepayment Penalties: $0 (You can pay off your loan early at any time to save on interest).
• Late Payment Fees: $0.
• Returned Payment Fees: $0.

It is important to note that while Earnest does not charge a fee for late payments, missing a payment can still result in serious consequences. Late payments may be reported to credit bureaus, which can significantly damage your credit score and the credit score of your cosigner.

If you face involuntary unemployment or other financial hardships, Earnest offers a forbearance program to help you avoid default. Borrowers can request forbearance in three-month increments, up to a total of 12 months over the life of the loan. To be eligible, you generally must be in good standing and provide documentation of your financial difficulty.

While Earnest offers more flexibility than many private competitors, it cannot match the statutory protections provided by the federal government. Before refinancing federal debt or choosing a private loan, consider what you might be giving up:

• No Income-Driven Repayment (IDR): Federal loans offer plans that cap payments at a percentage of your discretionary income and offer forgiveness after 20–25 years. Earnest’s Precision Pricing allows you to lower payments by extending the term, but it is not linked to your income.
• No Public Service Loan Forgiveness (PSLF): Private loans are not eligible for federal forgiveness programs. If you plan to work in a non-profit or government role, utilizing federal student loans is almost always the superior choice.

Understanding these trade-offs is essential. While the lack of fees saves money upfront, the absence of federal safety nets means private loans require a higher degree of financial certainty.

Pros and cons of choosing Earnest

Every financial product involves trade-offs, and Earnest is no exception. While its technology-driven approach offers features that traditional banks rarely match, it is designed for a specific type of borrower. Weighing the advantages against the limitations is essential to determine if this lender aligns with your personal financial strategy.

Earnest stands out in the crowded private student loan market primarily due to its flexibility and lack of fees. The strongest arguments for choosing this lender include:

• Unmatched Customization: As detailed in the Precision Pricing section, the ability to choose your exact monthly payment and term length allows you to align debt service with your actual budget rather than arbitrary bank standards.
• Extended Grace Period: The 9-month grace period offers three months more breathing room than the federal standard or most competitors, providing a crucial buffer for new graduates entering the job market.
• Zero Fees: With no origination, prepayment, late, or returned payment fees, 100% of your loan proceeds go toward your education, and you won’t face penalty charges for accidental slip-ups (though credit reporting still applies).
• Skip-A-Payment: The option to skip one payment every 12 months provides a safety valve for short-term cash flow issues that many other private lenders do not offer.

Despite these benefits, Earnest is not the right solution for everyone. Potential drawbacks to consider include:

• Strict Eligibility: Earnest has high credit standards. It is generally difficult for undergraduate students to qualify without a creditworthy cosigner, and those with fair or poor credit will likely be denied.
• Variable Rate Risk: While starting rates can be low, variable interest rates are tied to market indices. If the economy shifts, your monthly payment could increase significantly over the life of the loan.
• Digital-Only Experience: There are no physical branches. If you prefer sitting down with a loan officer in person, Earnest’s 100% online model may feel impersonal.
• Navient Ownership: Earnest is a subsidiary of Navient, one of the largest student loan servicers in the country. Borrowers seeking a small, local credit union feel or those concerned with large servicer reputations may prefer other options.
• Limited Hardship Options: While they offer forbearance, it does not match the depth of federal protections, such as income-driven repayment plans or loan forgiveness programs.

Given these pros and cons, Earnest is best suited for students and families who have already maximized their federal financial aid and need to bridge a funding gap. It is specifically designed for borrowers who prioritize a sleek digital experience and have the credit history to back it up.

According to Betsy Mayotte, student loan expert, “Private loans can make sense for students who have strong credit or a creditworthy cosigner.” This is particularly true for Earnest, where the best rates and terms are reserved for those with strong financial profiles.

Earnest is likely the right choice if:

• You have a credit score of 650+ (or a cosigner who does).
• You want to pay off your loan aggressively and save on interest using a custom term.
• You are comfortable managing your finances entirely online.

You should look elsewhere if:

• You are eligible for federal Direct Subsidized loans (always prioritize these first).
• You plan to pursue a career in public service and need access to PSLF.
• You anticipate an unstable income after graduation and need income-driven repayment options.

Who should consider Earnest student loans

Earnest is designed for borrowers who have already maximized their federal student loans and need to bridge the gap between financial aid and the total cost of attendance. Because of its strict underwriting standards, this lender is an ideal partner for students and families with strong credit histories who prioritize interest savings and digital convenience over traditional banking relationships.

This lender is particularly well-suited for specific financial situations where federal limits fall short:

• Gap Funding for High-Cost Schools: Undergraduate limits often cap out at $5,500–$7,500 per year for dependent students. Earnest can cover the remaining tuition and room and board for students at expensive private universities without requiring multiple loan products.
• Graduate and Professional Students: Medical, law, and MBA students often face tuition bills that exceed federal Direct Unsubsidized Loan limits. Earnest’s high aggregate limits and custom terms make it a viable option for managing large balances responsibly.
• Strategic Repayers: Families who want to pay off debt aggressively can use Precision Pricing to set high monthly payments, thereby shortening the term and reducing total interest paid—a strategy difficult to execute with rigid standard repayment plans.

To determine if you are the right candidate for an Earnest loan, ask yourself the following questions. If you answer “Yes” to most of them, this lender is likely a strong fit:

• Have you already accepted all available federal subsidized and unsubsidized loans?
• Do you (or your cosigner) have a FICO score of 650 or higher and a history of on-time payments?
• Are you comfortable managing your finances entirely online without visiting a physical bank branch?
• Do you have a stable income source or a cosigner with steady employment?
• Is your primary goal to minimize total interest costs rather than securing the absolute lowest monthly payment possible?

If you answered “No” to the credit or income questions, or if you plan to work in public service, you should prioritize federal options that offer Public Service Loan Forgiveness (PSLF) and income-driven repayment plans, as private loans do not offer these protections.

For those who align with this profile, the application process is quick and transparent. The next section details exactly how to lock in your rate.

How to apply for Earnest private student loans

Applying for an Earnest student loan is a fully digital experience designed to be faster and more transparent than traditional bank processes. Because Earnest uses an automated underwriting system, you can often move from a rate check to a signed agreement in under 20 minutes, provided you have your documentation ready.

Once your documents are organized, follow these steps to secure your funding:

1. Get Your Rate Estimate (2 Minutes): Complete the prequalification form on the Earnest website. This triggers a soft credit inquiry, allowing you to view potential interest rates and eligibility without impacting your credit score.
2. Customize Your Loan: If approved, use the Precision Pricing slider to adjust your monthly payment. This is the time to decide if you prefer a lower monthly bill (longer term) or lower total interest costs (shorter term).
3. Add a Cosigner: If your rate is higher than expected, or if you are an undergraduate, you can invite a cosigner via email through the dashboard. Once they complete their portion of the application, your rates will update—often resulting in significant savings.
4. Submit and Upload: After selecting your final terms, submit the formal application. This initiates a hard credit check. You will then be prompted to upload the documents listed in the checklist above.
5. Sign the Promissory Note: Upon final approval, you must electronically sign the Master Promissory Note (MPN). This is your legal agreement to repay the loan.

While the application itself is fast, the funding timeline depends on your university. After you sign the MPN, Earnest sends a certification request to your school’s financial aid office to verify your enrollment and loan amount. This certification process typically takes 3 to 10 business days but can take longer during peak seasons (August and January).

Once the school certifies the loan, Earnest schedules the disbursement. Funds are sent directly to the school to cover tuition and fees. Any remaining balance is usually refunded to the student by the school for living expenses.

To maximize your savings, enroll in Auto Pay immediately during the application process to secure the 0.25% interest rate reduction. Additionally, according to Mark Kantrowitz, financial aid expert, “Private lenders sometimes offer benefits like autopay discounts,” so ensure you don’t miss this easy way to lower your cost of borrowing.

If you are ready to see what rates you qualify for, you can check your eligibility instantly.

Compare rates from 8+ lenders

Earnest stands out as one of the most borrower-friendly lenders in the private market, particularly for families and students with strong credit profiles. By combining technology-driven underwriting with features like Precision Pricing, it offers a level of customization that traditional banks simply do not match. If you have maximized your federal aid and need to bridge a funding gap, Earnest provides a transparent, low-cost solution that allows you to tailor your debt to your specific budget.

• Unmatched Flexibility: Unlike rigid 10-year terms, Precision Pricing lets you choose your exact monthly payment and adjusts the term to match, potentially saving you thousands in interest.
• Superior Safety Nets: With a 9-month grace period (vs. the standard 6 months) and a Skip-A-Payment option, Earnest offers more breathing room for new graduates entering the workforce.
• Zero Fees: The absence of origination, prepayment, and late fees ensures that 100% of your borrowed funds go toward your education.

While Earnest is a top-tier choice, it is not the only option. If you anticipate needing to remove a cosigner quickly, other lenders like Sallie Mae offer cosigner release after just 12 months, compared to Earnest’s 24-month requirement. Furthermore, if you are an upperclassman without a cosigner or credit history, lenders like Ascent may offer non-cosigner options based on your GPA and major, which Earnest does not currently provide.

Ultimately, financial aid works best when prioritized correctly: exhaust all federal student loans first to secure fixed rates and government protections. If a gap remains, Earnest is a leading contender worth vetting. Since checking your eligibility takes only two minutes and uses a soft credit check, you can view your potential rates with no risk to your credit score.

Find your best loan option

Frequently asked questions

Below are answers to the most common questions students and parents ask about Earnest, covering current rates, eligibility nuances, and repayment policies.

According to Earnest.com, as of January 2025, Earnest offers fixed interest rates of 2.99% - 12.78% APR and variable rates of 0.94% - 11.44% APR. These rates include the 0.25% Auto Pay discount. Your specific rate will depend on your credit profile, the repayment term you select via Precision Pricing, and whether you have a cosigner. (See Loan Amounts and Rates for more details).

Yes. Earnest offers a cosigner release option after you have made 24 consecutive, on-time monthly payments of both principal and interest. To qualify, the primary student borrower must undergo a credit review to ensure they meet the income and credit requirements independently. This is a longer timeline than some competitors (like Sallie Mae’s 12 months) but shorter than others that offer no release option at all.

Technically, yes, but it is difficult for most undergraduates. To qualify alone, you must meet the minimum FICO score requirement of 650, have a minimum annual income of $35,000, and demonstrate at least three years of credit history. Because most college students have not yet built this financial track record, applying with a creditworthy cosigner is usually necessary to get approved and secure competitive rates.

Earnest generally requires applicants to be U.S. citizens or Permanent Residents with a 10-year Permanent Resident Card. However, DACA recipients are eligible to apply if they have a valid Social Security Number and meet the standard credit and income criteria. International students studying in the U.S. on a visa (such as an F-1 visa) are not currently eligible.

No. As a private lender, Earnest does not offer federal forgiveness programs like Public Service Loan Forgiveness (PSLF) or Teacher Loan Forgiveness. If you plan to work in a qualifying public service field, you should prioritize federal student loans. However, Earnest does offer loan discharge in the unfortunate event of the student borrower’s death or total and permanent disability.

You should almost always exhaust federal subsidized and unsubsidized loans first, as they offer fixed rates and extensive protections regardless of your credit score. Earnest is best used as a secondary option to fill the “funding gap” after federal limits are reached, or for borrowers with excellent credit who can secure a private rate significantly lower than the current federal PLUS loan rate.

Additional resources

To ensure you make the most informed decision about your college financing, utilize these recommended tools and guides for further research.

• Maximize Federal Aid: Before applying for private loans, review our comprehensive FAFSA guide and federal student loans guide to ensure you have utilized all government options.
• Compare Lenders: Use our private student loan comparison tool to see how Earnest’s rates and terms stack up against other top-rated lenders.
• Earnest Tools: Visit the Earnest website to use their Precision Pricing calculator and check your specific rate estimates without affecting your credit score.
• Cosigner Strategy: If you are applying with a parent or guardian, read our complete guide to cosigners to understand the responsibilities involved.
• Debt Management: Plan for the future by exploring our guide to student loan refinancing and repayment strategies.