First, add your student loan to begin comparing. Then you'll be able to enter your refi details to see how much refinancing could save you.
Total Principal + Interest
The total value of the principal plus the interest across all your loans.
Student Loan Consolidation Basics
Consolidating student loans is a common way to simplify your bills and streamline your payments. It’s often, but not always, done in tandem with refinancing student loans, which lowers your rate. Read below to learn more about student loan consolidation, and how combining loans produces a weighted average interest rate.
Can refer to the original amount of money you borrowed, or the outstanding balance still owed on a loan, aside from the interest accrued.
APR (ANNUAL PERCENTAGE RATE)
An annual percentage rate refers to the comprehensive annual cost of credit, including the interest rate plus any fees or additional costs associated with the transaction.
Weighted Average Interest Rate
A single rate that represents the average of several loans with varying balances and interest rates. Loans with a higher balance have more ‘weight’ on the final rate. Minimum Monthly Payment
Minimum Monthly Payment
The payment required by your loan servicer in order to pay off the loan by the contracted term, found on your monthly statement.
What is the difference between student loan consolidation and refinancing?
Consolidation simply combines multiple student loans into one. That means one monthly payment instead of having to juggle many different ones, sometimes with multiple servicers. When you consolidate, your interest rate will be a weighted average of the interest rates on the loans you combine. You won’t save money on interest rates — but it can make life easier by reducing the amount of time you spend managing different payments.
Refinancing can be done with one loan or several, and involves getting a new loan with a different (usually lower) rate than before, due to changes in your financial situation. When you refinance, you typically work with a company to pay off the original loan(s) and get a new unified loan at a lower rate.
Can my spouse and I refinance and consolidate our loans together?
While we are not able to combine loans from two different individuals, we would be happy to consider two separate refinancing applications. For each application we would consider only individual income, but we can factor in any joint assets that you might share.
Refinancing is a great solution for employed or soon-to-be-employed graduates who have high-interest, unsubsidized Direct Loans, Graduate PLUS loans, and/or private loans.
We look for clients who have a strong history of financial responsibility, which can show itself in many ways. For example, some clients may have a limited credit history, but present healthy savings patterns and a career with strong earning potential. We also look for clients who have an income that supports both the life of the Earnest loan and their everyday living expenses. Positive payment history is another key part of our review process, as this demonstrates you are committed to making your payments in full for all of your existing debts.
You must also meet the following requirements:
You are at least 18 years old
You are a United States citizen or permanent resident
You reside in a state in which we lend
Your student loans were used to pay for a completed degree from a college or university that is accredited under Title IV. If you are unsure whether your school is accredited, you can consult this list.
Can I refinance loans that have been consolidated or refinanced previously?
Yes. Previous refinancing or consolidation does not affect the eligibility of your application. As long as the completed degree you have received was obtained at a school under the Title IV accredited list, we are able to refinance your existing loan.
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.