Earnest was founded to fix an outdated approach to lending. We knew we could use technology to bring more transparency—and savings—to indebted grads. Through the hard work of dozens of data scientists, engineers, and designers, we built a modern solution from the ground up.
A solution that finds the sweet spot between what you can afford and what you should be paying in interest, never a single basis point more. A solution that puts the power in the hands of the client, not the bank. This unprecedented flexibility is the foundation of what makes Earnest different—and we call it Precision Pricing.
Precision Pricing in practice
HOW CUSTOM TERMS MEAN MORE SAVINGS
Say Jenny has a $100,000 loan, and she can afford to pay $1000/month.
At Traditional Bank, the monthly payment for a 10-year loan is just a bit more. That means she’s given a 15-year term instead—which has a much higher rate. (Longer terms have higher rates.)
But with Earnest, a $1000 monthly payment corresponds to an ‘in-between term’ of 10.5 years that’s totally unavailable at Traditional Bank.
This shorter term saves Jenny money since it has a lower rate and there’s less time for interest to accrue. Win-win!
Explore Precision Pricing
The slider below demonstrates how different monthly payments affect your rate and term. And remember—a shorter term can save just as much money as a lower APR.
Average savings calculation is based on all Earnest clients who refinanced student loans owned and serviced by Navient between 03/06/2017 and 03/31/2018. The savings figure 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 loans.
How we calculate the figures:
For the original student loans, the projected lifetime costs are calculated using the weighted average term of the original loans and the weighted average interest rate in effect in the month prior to the refinance event, including borrower benefits (e.g. automatic payment discounts).
For the refinanced loans, projected lifetime costs are calculated using the selected Earnest term and interest rate, also including borrower benefits.
Projected lifetime costs assume a principal balance of $75,000.
Projected monthly savings is derived by using the “projected lifetime savings” divided by the selected Earnest term
In order to calculate our average client savings, we excluded:
Savings from any client that selected an Earnest loan with a longer term than their Navient student loan terms
Loans resulting from a client refinancing the same Earnest loan with Earnest
Average client savings amount is not predictive or indicative of your individual cost savings. For example, your individual savings may differ based on your loan term and rate type selections, if you change your repayment options, or if you pay off your student loans early.
Explanation of Rates “With Autopay”
Rates shown include 0.25% APR reduction when 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 participation.