IT'S EASY TO FALL FOR LOAN REFINANCING THIS ATTRACTIVE
Shorter Term Lengths
Refinancing a Federal Direct Parent PLUS, FFEL Parent PLUS loan, or private student loan can dramatically shorten your overall loan term—getting you closer to retirement or paying down your debt.
Lower Interest Rates
Been on your best financial behavior? Earnest rewards financial responsibility like savings, on-time payments, and investing in your retirement with lower rates when you refinance.
Customized Loan Terms
Only Earnest allows you to personalize your loan term based on your budget and goals. Optimize for a faster payoff, or for more monthly income.
Refinancing is easier with Earnest
ONLINE APPLICATION AND INTUITIVE DASHBOARD = MORE SAVINGS AND LESS HASSLE
Transparent terms and rates with no fees
Consolidate your private and federal loans into one adjustable payment
Save on interest with optional bi-weekly payments
Switch between fixed and variable interest rates
Personalized loan dashboard
Service from Earnest for the life of your loan
Branchless online operation saves you money
Understanding you better, underwriting you better
ACCESS LOWER RATES THROUGH DEEPER DATA
Earnest uses data science and custom software to better understand your full financial profile and reduce our overhead costs. This lets us offer our clients lower, more personalized rates than traditional lenders can.
Reasons for refinancing Parent PLUS loans range the gamut. But the benefit of refinancing is always the same: having more money in your bank account to do the things you dream of. So whether it’s a big vacation, preparing to send more kids to college, or well-earned retirement—you’re ready.
Average savings calculation is based on all Earnest clients who refinanced their student loans between 1/1/15 and 6/10/16. The savings of a particular client is calculated by subtracting the projected lifetime cost of their Earnest refinancing from the projected total cost of their original student loan, which is calculated using the original loan’s APR and monthly payment based on the same principal balance as their requested Earnest loan.
Projected Lifetime Cost of Original Student Loan – Projected Lifetime Cost of Earnest Refinancing = Projected Savings
The average savings calculation is the sum of all projected savings divided by the number of clients included in the projected savings calculation. These calculations assume that clients’ interest rates will not change over time, that clients make all payments on-time, and that no loans will be prepaid.
Here’s what our math includes:
Projected savings for clients who provided outstanding balance, APR, and current monthly payment amount for their existing student loan(s)
Both fixed and variable rate loans
And here’s what our math excludes, and why:
Savings from any client who stated that the current interest rate on their loan was greater than 12%. (Why: this is intended to filter out any cases where client error may skew the savings calculation higher.)
For any client who stated that the projected term of their loan was greater than 25 years, we do not include in our calculation any additional savings that might be realized if their existing loan were to take longer than 25 years to pay off in-full. (Why: 25 years is the maximum term allowed for a Federal student loan, or the cap on any Federal student loan under Income Based Repayment.)
Savings from any client whose indicated monthly payment was not sufficient to pay down the loan balance over time. (Why: this is intended to filter out any cases where the client misstated either their monthly payment amount, interest rate, or both.)
All refinancings by clients who chose a longer term than their existing student loan. (Why: some clients choose longer loan terms to match their monthly loan obligations to their unique life circumstances; while we encourage clients to take advantage of Earnest’s flexible term and monthly payment features, these cases are not indicative of the savings that result from lower rates through better data.)
Explanation of Rates “With Autopay”
Rates shown include 0.25% APR reduction where client agrees to make monthly principal and interest payments by automatic electronic payment. Use of autopay is not required to receive an Earnest loan.
Explanation of Precision Pricing™ Savings
Savings calculations are based on refinancing $121,825 in student loans at an existing loan servicer’s interest rate of 7.5% fixed APR with 10 years, 6 months remaining on the loan term. The other lender’s savings and APR (light green line) represent what would happen if those loans were refinanced at the other lender’s best fixed APRs. The Earnest savings and APR (white line) represent refinancing those loans at Earnest’s best fixed APRs.
Savings is computed as the difference between the future scheduled payments on the existing loans and payments on new Earnest and “other lender” loans. The calculation assumes on-time loan payments, no change in interest rates, and no prepayment of loans.
Individuals portrayed as Earnest clients on this site are actual clients and were compensated for their time to participate.