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At Earnest, we are building the bank of the future. That means we’re hard at work to fix broken financial systems with better software, better data science, and better design in order to save our clients time and money—and help them achieve their dreams faster.

One place we are applying our technology to do that? Customized borrowing for those who are refinancing student loans.

Earnest is the first and only company of its kind to use smarter technology to save money for clients through personalized loan terms—an innovative departure from traditional loans that are limited to terms of five, 10, 15, or 20 years. For our clients that can add up to thousands of dollars in additional savings on top of savings from refinancing alone.1

At the core of our service is Precision Pricing™, a feature that allows student loan borrowers who are refinancing to customize loan terms and interest rates according to their personal budget.

How does Precision Pricing work to save you money?

When you refinance your student loans with Earnest, we start with you. We ask: How much can you budget to pay down your debt every month?

Once we know your budget—let’s say it’s $1,200 per month—and your total loan amount, Precision Pricing pinpoints the exact interest rate, down to a basis point, that you should be paying. It also creates your payoff term to the nearest month, even if it’s not a uniform number—that might be five years and one month or 10 years and seven months for example—as it fits your budget.

Precision Pricing: The Basics

1. Set the monthly payment that works with your budget.

2. Get a custom interest rate and term based on your monthly payment.

3. Save money over the life of your loan.

This is a completely reimagined way to borrow money—one that starts with the borrower’s needs, rather than the lender’s. Earnest’s Precision Pricing liberates you from the one-size-fits-all terms that all other student loan refinancers use.

A Case Study

Katie is a recent MBA graduate and has a $100,000 loan she’s refinancing with Earnest. She knows she can afford to pay down $1,000 per month toward that debt but can’t pay more than that.

precision pricing body

With Precision Pricing, Katie’s budgeted payment means she can pay off her loan in just over 10 years at an interest rate of 4.74%. That’s her custom Earnest term and rate, which saves her an extra $2,350 compared to other refinancing companies.

With another refinancer, Katie had only two choices: Take a 10-year loan and pay $1,042 a month (she cannot afford this) at 4.61% or take the 15-year loan and pay $798 a month (she can pay more than this) at 5.12%. Even if she opts to pay $1,000 a month on that 15-year loan, she’s still locked into that higher interest rate, paying an extra $2,350 over the life of the loan.

Your Budget, Your Loan

Precision Pricing at Earnest is about working with you—our goal is to get you to the sweet spot between what you can afford and what you should be paying in interest, never a single basis point more.

1 Learn more about Earnest calculations in disclaimers available at Earnest.com.

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