PharmD Savings Disclaimers

Explanation of $28,016 Average PharmD Client Savings

Average savings calculation is based on all Earnest clients with a Doctor of Pharmacy (PharmD) who refinanced their student loans between 1/1/15 and 9/1/15.

Simply put:

Projected Lifetime Cost of Refinanced 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 10%. (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.)
  • Savings from any client whose Total Savings to Total Loan Balance was greater than 95%. (Why: this is intended to filter out any cases where client error may skew the savings calculation higher.)
  • 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 on Earnest loans include 0.25% APR reduction where a 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 $100,000 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.