LendKey offers borrowers competitive annual percentage rates (APRs) and other benefits that make it a top competitor.
As far as private student loans go, LendKey is a great option. Many borrowers enjoy working with LendKey because they prefer borrowing and working with credit unions and small banks. For students with a credit history or co-signer with credit history, it can be an even better match for undergraduate and graduate students.
Even though there are many benefits to a LendKey private student loan, those with a poor credit history are at a bit of a disadvantage with this student loan type. Continue reading to discover if a LendKey private student loan is the right choice for you.
Pros:
Cons:
LendKey is dedicated to helping students and families with funding their higher education. Since 2009, LendKey has partnered with banks and credit unions to help borrowers make the best financial decisions by offering various loan options. They offer different loan repayment plans, so students can start paying back their loans while in school or defer payment until after graduation. Ultimately, this helps borrowers make the best financial decisions for their unique circumstances.
Fast facts:
LendKey recommends that borrowers have a co-signer so that they can have a higher chance of approval and lower loan rates. By having a co-signer with a good credit history and demonstrates certain income requirements, you are more likely to have competitive loan rates with LendKey.
In addition, they recommend that students start paying off loans while in school. Although this is not a requirement, they believe that repaying private student loans while in school will help borrowers in the long run. This is because students will be repaying federal student loans after graduation, and they don’t want to put too much pressure on students to pay back federal and private student loans at the same time.
The Better Business Bureau (BBB) gives LendKey an “A” rating, which means the lender has scored somewhere between 94 and 96.99. This is one of the higher rating options, as the highest letter rating is an A+. Having this rating indicates that LendKey ranks high among other businesses but has some areas for improvement.
The BBB uses these criteria to rate businesses:
Each criterion for ranking has different ranges of points. Although LendKey hasn’t received a perfect score, they are still ranked quite high. In fact, the lowest ranking, an “F” rating, includes points 0 through 59.99.
Additionally, LendKey has 4.5 out of 5 stars on Trustpilot. One borrower described the application process as “one of the easiest applications” they’d ever completed. Many borrowers explain that LendKey is transparent, straightforward, and has wonderful customer service. Although there are some bad reviews, out of over 250 reviews, 80% rate LendKey as “Excellent.”
If you want a student loan that requires a simple application process, loan refinancing options, the funding you need for school, and a competitive APR, you should consider LendKey. LendKey offers borrowers a variety of benefits so that they get the most out of their investment.
Like any lender, there are some potential drawbacks for LendKey borrowers. Even though there aren’t many drawbacks to a private student loan with LendKey, it’s important that you consider the following when making your decision:
Minimum loan amount: $5,000
Loan term options: They have terms anywhere from five to 20 years.
Multi-year approval available: Not disclosed
Fixed and variable rates available: Yes
Fixed low APR: 4.99%
Fixed high APR: 9.01%
Variable low APR: 2.99%
Variable high APR: 8.15%
In-school payment options: Yes
Grace period: 6 months
Co-signer release available: Co-signer release is subject to lender approval. To qualify for co-signer release, a borrower must make payments on time, be in good status, provide proof of income, have no bankruptcies, and have not defaulted on loans.
Loan servicer: LendKey does not outsource servicing of its private student loans.
Interest rate discounts: LendKey offers a 0.25% autopay discount.
Other rewards or services: LendKey borrowers have access to career assistance, a credit score analysis, and payment for referring a friend.
Income requirements: The borrower or co-signer must have a minimum annual income of $24,000.
Credit score requirements: Borrowers must have a minimum of 36 months of established credit history. Most approved applicants have a credit score in the mid-to-high 700s.
Eligibility for international borrowers: No
Application or origination fees: None
Soft pull rate check availability: Yes
Funding higher education can be challenging enough, especially when you’re bombarded with different loan types. Federal student loans offer many advantages and are backed by the federal government. On the other hand, private student loans are student loans made by private lenders. These lenders can include banks, credit unions, schools, and state agencies.
In this section, we’ll break down the differences between federal and private student loans.
Typically, applying for a private student loan should be done after all federal options have been exhausted. The federal government offers four types of student aid: grants, scholarships, work-study, and federal student loans. Since student loans cap at a certain point, many students need additional funds to cover the costs associated with their education.
Undergraduate federal student loans max between $5,500 and $12,500 per year, while graduate and professional federal student loans allow students to borrow up to $20,500 annually, depending on their financial status.
Often, federal student loans are the best choice for students because of their benefits. For instance, there are different loan forgiveness and cancellation programs that private student loans simply cannot offer. Even though most borrowers may not need these options, private student loans do not usually have these advantages:
If you borrow from LendKey, you may be able to have deferment and forbearance options. Normally, deferring loan payments with LendKey is rare. In fact, they have a minimum $25 monthly payment for borrowers, even while they are attending school.
However, they do offer deferment to military veterans and others if under specific circumstances. Although they do not usually offer deferment, borrowers do have forbearance provisions. Borrowers usually can use up to 18 months of forbearance in six-month intervals.
LendKey is best for borrowers with some credit history. If you prefer to work with small banks and credit unions, LendKey is a great option. Although you do not need an extensive credit history to qualify for a private student loan with LendKey, you will have lower rates by having a good credit history or a co-signer with a good history. Overall, LendKey private student loans have competitive fixed and variable APRs.
Deciding to attend college and build your career is a great first step in investing in your future. Although it may seem overwhelming at first, funding your education can be eased with the right information.
At CollegeFinance.com, we are passionate about bringing you the right information so that you can make the most informed decisions. We are confident that with the right tools and resources regarding planning, borrowing, and repaying student loans, you will be able to shape your future the way you want.
That’s why we’ve made it our mission to provide readers with the information they need to plan for their next steps. Get the most out of your college investment by taking advantage of CollegeFinance.com’s resources.