Meet Splash Financial

In the student loan refinance marketplace, Splash Financial is a medium-sized lender that often has some of the best-advertised rates. The downside is that they tend to be a little bit more picky than other lenders.

Splash Financial first entered the student loan refinance business as a lender focusing exclusively on young doctors in their residency or a fellowship. As Splash grew, refinancing expanded to all college graduates. Unfortunately, Splash might not be the best choice for all student loan borrowers.

Splash Financial Basic Terms

Splash offers both fixed-rate and variable-rate student loan refinancing. Borrowers wishing to refinance with Splash can borrow a minimum of $5,000, and there is no maximum. Like other legitimate lenders, there are no prepayment or loan origination fees with Splash Financial.

As shown in the table below, borrowers have a wide range of repayment lengths available. This represents a slight deviation from the more typical industry standard of 5, 7, 10, 15, and 20 year repayment periods.

* The lowest listed rate includes a .25% autopay discount. See full Splash disclosure for more details.

Splash Interest Rates

The refinance rates with Splash are among the best in the industry.

Because Splash works with several different credit unions, they can offer a wide range of loan lengths and terms. This flexibility can occasionally create some strange outcomes. For example, Splash may offer lower rates on their 8-year loan than what they offer on a 7-year loan. For this reason, borrowers should take a very close look at the rates offered across loan types with Splash. Don’t assume that a longer loan will have a higher interest rate.

Over the past year, Splash interest rates have consistently been among the best in the market. Here again, Splash having relationships with multiple credit unions works out well for borrowers. Lenders with more limited financial resources may increase rates if the single bank they work with has a shortage of available funds. Splash can stay consistently low because they can tap into various credit unions.

Splash Advantages – Where Splash Financial Excels

One aspect of Splash Financial that we especially liked in our review of the company was how they responded to criticism in their initial refinance product. Splash charged loan origination fees and received justifiable criticism. Splash responded to consumer complaints and eliminated all loan origination fees. No lender gets everything right, and it is a very good sign when a lender accepts responsibility for an error in judgment and makes things better.

Though Splash now serves a broader audience, the specialty of Splash is still refinancing for doctors. They even offer special rates for doctors who are still in training.

A final advantage to Splash is that they offer new customers a bonus of up to $500 for signing up. This is one of the largest bonuses currently on the market, but it is only available to those refinancing at least $50,000 in student debt. We think the bonus is nice, but in the long run, the rate will be the number that makes a difference in a consumer’s bottom line.

Splash Disadvantages – Some Red Flags to Review

The two major disadvantages with Splash apply to nearly all student loan refinancing companies.

First, Splash Financial offers consolidation and refinancing of federal student loans. For some borrowers, this move makes sense, but for others, it can be a mistake. When borrowers refinance federal loans, they give up perks such as income-driven repayment plans and forgiveness programs like Public Service Loan Forgiveness. For some, the lower interest rates justify giving up federal protections. For others, it is a huge mistake. Federal borrowers should carefully consider their options before refinancing loans with a private lender.

The second issue to highlight is the Splash cosigner release program. Splash advertised that a cosigner could be released from the loan after one year of on-time payments. All cosigners should understand that they are committed to the loan for the life of the loan and that a cosigner release is far from a certainty. Securing a release requires a re-evaluation of the borrower’s credit, and there is minimal incentive for any lender to grant this release.

Finally, we also note that Splash is a very young company. In some cases, this can mean an excellent opportunity for consumers, and in others, it can be the cause of headaches. That being said, Splash works with several well-established credit unions, and the feedback we have received thus far has mainly been positive.

Review Final Thoughts

Splash may be somewhat new to student loan refinancing. However, their refinance product is the real deal. At present, Splash has probably the best range of interest rate offerings out of any lender on the market.

As a result of the excellent rates and positive reviews from Student Loan Sherpa readers, Splash Financial has been elevated to first place in our student loan refinance lender rankings. Borrowers looking to lock in lower student loan interest rates would be wise to check their rates with Splash to see how they stack up against other lenders.

Other Lenders to Consider:

	ELFI is a traditional bank with a major focus on quality customer service. Getting approved is hard for some borrowers, but those that do get approved receive excellent interest rates. Read more...
	SoFi is the biggest name in the student loan refinance space. They consistently offer excellent rates with high approval numbers. Read more...
	Earnest attempts to look at the big picture for borrowers. The application requires a bit more information, but it doesn't take long to complete, and could result in an approval where other lenders might reject. Read more...
	LendKey partners with smaller banks and credit unions across the country. This approach results in higher approval numbers and competitive loan terms. Read more...

The post Splash Financial Student Loan Refinance Review appeared first on The Student Loan Sherpa.

On the surface, there are a ton of similarities between these two companies. Both are fairly well known, and both advertise low rates and reasonable loan terms.

However, under the hood, these two lenders are very different. The key differences between Splash and Earnest can have a massive impact on which lender is best for borrowers.

Earnest vs. Splash Financial: The Basics

Interest Rates	3.99%* – 9.99%	5.89% – 9.74%^
Loan Terms	5 – 20 Years	5 – 20 Years
Minimum Loan	$5,000	$5,000
Signup Bonus	Up to $500	$150^

^ The lowest listed rate for Earnest is a 5-year variable rate loan and expressed as an APR. Please see the Earnest Disclosure for more details on rates and bonus terms.
* See Splash Disclosure for full details.

The basic terms and conditions with both Splash and Earnest are very similar. Splash tends to advertise slightly better interest rates, but overall, the numbers are very close.

Neither lender charges loan origination fees, application fees, or prepayment penalties. However, the lack of extra fees isn’t really a selling point as most legitimate refinance lenders avoid these fees.

Finally, both lenders will refinance federal student loans. This option may work for some borrowers, but for others, it would be a huge mistake. Borrowers considering this option should tread carefully.

The Big Splash Financial Advantage

The big advantage to Splash Financial is the variety of funding sources that they have at their disposal.

Even though this variety isn’t readily apparent to the borrower, the consequences are profound. The most noteworthy benefit is that Splash consistently has the best interest rates in many different loan categories. Since this site started tracking rate offerings, Splash usually ranks towards the top in our refinance rate rankings across many different loan types. Additionally, borrowers are more likely to get approved due to the many different funding opportunities.

This combination of excellent rates and strong approval numbers is the reason that Splash currently ranks at the top of our student loan refinance rankings.

For more about Splash, check out our Splash Financial Review.

Where Earnest Has the Edge

One aspect of the business model separates Earnest from all of the other refinance companies.

When making rate and approval decisions, Earnest takes a deeper dive into an applicant’s finances. Rather than focusing on credit score and income, Earnest looks at education level, income potential, savings, and spending habits.

For example, where most lenders don’t care about retirement contributions, Earnest wants to know how much you set aside. Earnest doesn’t require a 401(k) savings to get a loan, but they look more favorably upon the borrowers who do. They figure that setting aside money for retirement is a sign of financial responsibility. These applicants are more likely to get approved and more likely to get a lower interest rate.

When Earnest first entered the market in 2013, it had a well-deserved reputation for having a complicated application. However, as the years passed and the Earnest technology improved, the Earnest application simplified. Applicants can now complete an Earnest application in about 10 minutes, which is comparable to most other lenders.

To learn more about Earnest, check out our Earnest Review.

Picking the Best Lender

Ultimately, the best lender for most borrowers is the one that offers the best interest rate. For this reason, shopping around and rate checking with multiple lenders is the preferred method.

Splash currently ranks first in this site’s lender rankings because they consistently offer the best rate to applicants. However, given the unique approach used by Earnest, many borrowers will find they offer the best rate.

If you are someone who has a limited credit history but excellent spending habits, Earnest might be a good starting point. Most other borrowers should probably start with Splash.

Click here to check your rate with Earnest.

Click here to check your rate with Splash Financial.

The post Earnest vs. Splash Financial: Student Loan Refinance Showdown appeared first on The Student Loan Sherpa.

For many years, SoFi dominated our student loan refinance rankings leaderboard. SoFi had a combination of excellent interest rate offerings and high approval numbers that other lenders couldn’t match. Over the last couple of years, the market caught up with SoFi. In the case of Splash Finacial, they now offer lower interest rates than SoFi for many borrowers.

Deciding which company is better will depend upon borrower circumstances.

SoFi vs. Splash Financial: The Basics

Interest Rates	3.99%* - 9.99%	5.99% - 9.99%
Loan Terms	5 - 20 Years	5, 7, 10, 15, and 20 Years
Minimum Loan	$5,000	$5,000
Signup Bonus	Up to $500	NA

From the above table, it should be pretty clear that there are many similarities between these two lenders.

Outside of the numbers, the lenders are pretty consistent on terms as well. Neither company charges loan origination fees or prepayment penalties, and there are no major red flags with either lender from a loan servicing perspective.

Finally, both companies refinance both federal and private loans. Borrowers with federal loans should carefully consider their decision to refinance. Once federal loans are refinanced with a private lender, all of the federal perks, such as income-driven repayment plans and student loan forgiveness, are permanently eliminated.

SoFi Advantages

Refinancing with SoFi comes with two distinct advantages that most lenders cannot beat.

The SoFi Brand – While SoFi started as a student loan refinance company, it has grown considerably. SoFi now offers mortgages, personal loans, and investment management services. SoFi wants the student loan customers to become mortgage customers and wealth management customers. They call their customers “members.” The benefit to consumers is that they can expect higher quality service. If SoFi wants their borrowers to use other services, they need to treat them right.

SoFi Job Placement – One of the perks of being a SoFi “member” is the career coaching available to all customers. The advantage of helping borrowers find jobs is that they are more likely to repay their loans. Borrowers who lose their job may find this to be a valuable resource.

For more details on SoFi, be sure to check out our full SoFi Refinance Review.

Splash Financial Advantages

Splash current sits at the top of our student loan refinance rankings. The reason for this placement is simple: Splash has the best mix of low interest rates and high approval numbers.

Splash works with an extensive network of funding sources. As a result, Splash customers are more likely to get approved and more likely to get a low interest rate.

A final advantage to Splash is the $500 Bonus for customers who refinance at least $50,000 in student loans. Borrowers should still seek out the lender offering the best interest rate, as a slight rate difference will quickly add up to over $500 in savings for a large loan. However, the bonus is a great perk of going through the refinance process.

Further details on Splash are available on the Splash Financial Refinance Review.

Deciding Between Splash and SoFi

Ultimately, very little separates the two companies.

Borrowers that get identical rate offers may wish to go with SoFi for the member advantages, but most decisions should be determined by the lender that offers the lower interest rate.

Over the past year, Splash has consistently been the lender that offers the best rates. However, each borrower is different, and each lender uses a different formula for deciding what rate to offer. For this reason, borrowers are advised to shop around for the best rate. When rate shopping, both SoFi and Splash are worthy of consideration.

Click here to check your rate with Splash Financial.

Click here to check your rate with SoFi.

The post SoFi vs. Splash Financial: Student Loan Refinance Comparison appeared first on The Student Loan Sherpa.

Many readers have asked me about who the best lender is or what lender has the lowest interest rates. Focusing on the best lender or the lowest advertised rate doesn’t work. One lender might be an excellent choice for some borrowers but a massive mistake for others.

I’ve seen countless borrowers apply to just one or two companies when refinancing. This is a mistake.

Today I’ll cover the importance of shopping around and explain how to do it in less than an hour.

What Does it Mean to Shop Around for a Student Loan Refinance Lender?

If you were shopping around for a book, you would check prices with several stores and then buy it from the store with the best price.

Shopping for student loan refinancing is a bit more complicated because each customer gets offered a different deal. Lender A might offer you an excellent rate, but your friend might get a terrible rate. Yet, with lender B, the reverse is true.

In student loan refinancing, the lender that offers the lowest interest rate may not be the lender that advertises the best interest rate.

Thus, if a borrower wants to find the best option, they have to actually check rates with multiple lenders to find the lowest rate offered.

Will Shopping Around to Hurt My Credit Score?

The biggest fear for borrowers rate-shopping is that it will hurt their credit score.

As consumers, most of us have had it drilled into our heads that too many credit checks hurt our credit score. Fortunately, rate shopping usually means multiple credit inquiries are treated as a single pull. Whether you investigate one lender or 12, the impact on your credit score is identical.

It is usually recommended that borrowers rate shop within a 30-day window. However, some credit models limit this window to 14 days, so the best practice is to spend less than two weeks rate shopping.

Fortunately, the actual time spent checking rates takes significantly less than two weeks.

Rate Shopping Doesn’t Take Long

Checking rates with just a single lender takes about 10 minutes, but it takes a bit more time to shop around.

If you wanted, checking rates with every single national lender would take about 2 or 3 hours. Those interested in the comprehensive approach can find a list of national student loan lenders here.

However, it’s possible to thoroughly shop around in less time.

Rate Shop In Under an Hour

• Check rates with the lenders advertising the best rates. We know that the best rate offered and the lowest advertised rates can be different, but investigating the lenders offering the best rates is a good starting point.
• Check rates with the top companies. On this site, I constantly update lender rankings based upon my research feedback received from borrowers. The lenders at the top of the rankings are the ones I deem most likely to approve a broad cross-section of readers and give them a good rate. The current rankings are available here.
• Check rates on a couple of lending platforms. Some “lenders” are actually networks of lenders. So a single rate check means checking rates with several different companies. For this reason, I’d make sure to always check rates with the following companies:
  • LendKey – Small banks and not-for-profit credit unions use LendKey to offer student loan refinancing. LendKey matches borrowers looking to refinance with local lenders. This allows smaller banks and credit unions to compete with larger companies. It also gives borrowers the chance to check rates with multiple smaller local banks at the same time.
  • Splash Financial – Splash works with an extensive network of lending partners, including many top national lenders. Checking rates with Splash is an efficient way to shop around in little time.
  • Credible – Like Splash, Credible has a large network of lenders. Surprisingly, there is little overlap between the Splash network and the Credible network. For borrowers, this means two applications check rates with many different lenders.

Utilizing the above resources, borrowers can spend less than an hour rate shopping and cover a ton of ground.

The post Why Should I Shop Around for Student Loan Refinancing? appeared first on The Student Loan Sherpa.

Unfortunately, the “fast” and “simple” process often ends with a rejection for borrowers.

Rather than focusing on the easiest application, today we will focus on hunting down the easiest approval.

Borrower Circumstances Improve Odds of Approval with Certain Refinance Lenders

Each refinance lender has its own unique formula for determining who gets approved, what interest rate is offered.

Some lenders have a reputation for catering to specific groups of borrowers. If you fall into a targeted demographic, your odds of getting approved increase dramatically.

• If you have medical school debt – The residency salary is often dwarfed by medical school debt. Large debt and a smaller income can be devastating for refinancing approval odds. However, Laurel Road has a clear focus on young physicians. Their formulas account for the low starting salary but high earning potential. As a result, Laural Road may be the easiest place for a young doctor to get approval.
• If you have money in a retirement or savings account – At most lenders, credit score and debt-to-income ratios are the primary concerns. This is unfortunate for savers who have demonstrated financial responsibility. A notable exception to this rule is Earnest. Applicants to Earnest can document their savings to get lower interest rates and increased odds of approval.

Sadly, the list of lenders targeting specific groups is short. In most cases, shopping around is the best way to get a loan.

Borrowers short on time can cast a wide net by targeting lenders that work with many different companies.

• LendKey – LendKey works with a long list of local, not-for-profit credit unions to create a national student loan lender. Borrowers that apply are paired with a local credit union. By applying, borrowers are essentially checking rates with many smaller credit unions that don’t advertise their loans.
• Credible – Credible has a continually evolving roster of national lenders on its platform. Credible doesn’t directly offer student loans. Instead, they allow borrowers to check rates with about a dozen lenders with one application.
• Splash Financial – Splash started out as a smaller lender but has grown quickly by offering a mix of in-house loans and loans offered by other lenders. Over the last year, Splash has gone from being a more selective lender to one of the easiest approvals in the business.

Surprisingly, the overlap between the lenders on LendKey, Credible, and Splash lenders is minimal. By spending approximately 30 minutes, borrowers can cast a very wide net. Not only does this approach increase the odds of approval, but it also helps borrowers ensure they have found the lowest interest rate available.

Refinance Company Health and Available Funding Influences the Chances of Getting a Loan

Lenders short on cash will be far more strict with loan approvals. Limited finances mean the lender may be more selective, and that interest rates might be a bit higher. Their goal is to maximize profits from a smaller pool of money.

The flipside of this equation is the lenders who are well funded. Finding customers is the biggest obstacle for these lenders. Thus, they will offer better interest rates to a wider group of borrowers.

However, lenders don’t advertise how well funded they are or how desperate they are for new borrowers. The best I can do is infer who is most likely to approve borrowers based upon trends and feedback received from readers to this site. I try to incorporate this information in the refinance lender rankings. If a company has tightened up its approval requirements, it will fall in the rankings.

Presently, lenders ELFI and CommonBond are approving borrowers at a higher than expected rate. Meanwhile, SoFi approval rates seem to be dropping. Individual experiences may be different, but that is the trend I am seeing based upon reader feedback.

The Lesson for Borrowers

Predicting which lender is most likely to approve any individual borrower is an inexact science. We can make predictions based upon the previously discussed borrower and lender health, but it is hard to say anything for certain.

However, the one thing that can be said for certain is that the more applications you submit, the better your chances are for approval. Some borrowers may strike out completely, but it isn’t unusual to see a borrower get rejected at two lenders and then approved with a third.

Generally speaking, borrowers have two main objections to checking rates with many different lenders:

• It takes too much time. The time commitment is a fair concern, but for most people, it is time well spent. Each application normally takes 10 to 15 minutes. A reduced interest rate can save hundreds or even thousands of dollars per year. As far as time commitments are concerned, spending some time shopping around is time well spent.
• I Don’t Want Multiple Credit Inquiries – Protecting your credit score is always a good idea. Fortunately, consumers are not penalized for rate shopping with multiple lenders. While there may be a slight drop in credit score for checking with one lender, each subsequent lender is treated as shopping around and does not impact the credit score. The window for shopping around is 14 to 45 days depending upon the credit model in use.

In short, if you are looking for an approval or low interest rates, your best bet is to visit at least 3-5 lenders.

Turning a Student Loan Refinance Rejection Into an Approval

If you shop around and receive only rejections, hope is not lost.

The two crucial numbers to try to improve are your credit score and debt-to-income (DTI) ratio. One of the quickest ways to improve things is to pay down credit card balances. A reduction in credit card debt can help both your credit score and DTI.

However, many tricks can be used to quickly increase your chances for approval after a rejection.

The post These Student Loan Refinance Lenders Offer the Easiest Approvals appeared first on The Student Loan Sherpa.

In our student loan rankings, we provide a template for sorting through the various companies, but it isn’t an exact science. The reality is that the best student loan refinance lender is usually the one offering the best interest rate.

SoFi, Laurel Road, LendKey, Earnest, Citizens, and Splash are the lenders that most frequently appear in these reader emails. This makes sense because these lenders spend the most on advertising and offer some of the best interest rates in the student loan consolidation business.

Advertised Rates vs. Actual Interest Rates

If there is one concept that anyone shopping student loan refinance companies should understand, it is the difference between advertised rates and actual interest rates.

Advertised interest rates vary from company to company and can fluctuate based upon the market and cost of borrowing. Most of the top lenders will all be within a fraction of a percent of each other. However, just because a company advertises the lowest interest rate, it does not mean that it will offer any particular borrower the best interest rate.

Actual interest rates depend upon a number of different factors. The potential borrower’s credit score, income, debt-to-income ratio, occupation, and school all can be considered.

However, each lender may treat these factors differently. For example, Earnest also considers your retirement account balances. From their perspective, if you are saving a ton of money for retirement at a young age, it is a sign you are probably a responsible borrower. Each company guards its exact formula closely.

Lenders make money by offering the best rates to the consumers who are the lowest risk. The better they do identifying these consumers, the more money they will make.

What this means for you the borrower is that each lender will apply your particular information to their credit evaluation formula. SoFi may decide you are too much of a credit risk and decline your application or offer you a higher interest. Meanwhile, LendKey might look at exactly the same information and conclude that you are a safe bet, and offer you their lowest interest rate. Because each borrower is different and each lender looks at borrowers differently, it is impossible to know what lender will have the best rate.

A final factor that should be considered is the term of the loan. Laurel Road might offer an excellent rate on a short-term variable-rate loan, but the long-term fixed-rate loan might come with a really high interest rate. Meanwhile, Splash could do the opposite. Their fixed-rate loans might be the best deal, but their variable-rate offers don’t hold up. The only way to know what a lender will offer and what deal you can get is to apply.

Shopping Around

The extended discussion about advertised rates vs. actual rates is necessary to explain the importance of shopping around.

When it comes to student loan refinancing, that means applying with a number of companies to find the best deal.

The major credit bureaus encourage shopping around because multiple credit inquiries are treated the same as a single check, so long as they were within 14 days (some even give you longer). This means that the only downside to applying to multiple lenders is the time it takes to fill out the applications. It may be a bit of a headache, but the potential savings make it time well spent.

Those concerned about the time commitment required to shop around should estimate that it takes about 10 minutes per lender to check rates.

We have prepared a full list of lenders in our rankings and also included links to current promotions with most lenders.

What is the point of Rankings?

The rankings should be useful for a couple of reasons.

First, it provides a starting point for your research. Having all the companies in one place provides a guide for where you should go when shopping around.

Second, it is helpful when comparing the offers two companies have made.

Suppose SoFi and Citizens both offer the same interest rate for your consolidation. Part of the reason SoFi is ranked number one is because of its favorable cosigner release terms and because of its career development opportunities for borrowers who lose jobs. This gives them the edge in our rankings, so if the interest rates are close, it is a good tie-breaker.

Bottom Line

Finding the best student loan company is all about doing a little bit of extra legwork.

There are some differences between SoFi, Laurel Road, LendKey, Earnest, Citizens, and Splash, but at the end of the day they are all offering similar services and the best choice is typically the lender with the best rate.

The extra effort to find the best rate is minimal and it pays off.

Put together a list of lenders you are considering. Send out applications to each lender. Evaluate who has the best deal. Compare how the companies did from a customer service perspective. By the time you have offers and experience with the lenders, you should know what lender is best for you.

Shopping around in this manner will ensure that you save as much money as possible. At present, these lenders are advertising the lowest interest rates.

The post Deciding Between SoFi, Laurel Road, LendKey, Earnest, Citizens, and Splash appeared first on The Student Loan Sherpa.