Earnest Review Overview

In a marketplace where all lenders blur together, Earnest sticks out as a legitimately different lender. 

Earnest evaluates applications differently and approves some borrowers that might get rejected by other more traditional lenders.

The Earnest sales pitch is that you will get better results with them because they are better at making lending decisions. Where some lenders look only to FICO and year income, Earnest looks at the big picture.

This big picture approach makes looking into Earnest a wise decision for many refinance shoppers. As a result, Earnest currently gets the 6th spot in our student loan refinance company rankings.

Meet Earnest Basics

Earnest Overview
Loan Terms	5 - 20 Years
Variable Rate Loans	5.89% - 9.74%^
Fixed Rate Loans	3.95% - 9.74%^
Minimum Credit Score	665
Minimum Refinance Amount	$5,000
New Borrower Bonus	$150^

Like most lenders, Earnest offers both fixed-rate and variable-rate loans. One thing that makes Earnest a little different is that they provide more than the traditional 5, 10, 15, and 20-year loans. Borrowers can choose repayment lengths that fall anywhere on the 5 to 20-year spectrum, meaning if 18 years is ideal for you, you get 18 years to repay your loan.

Earnest calls this feature “precision pricing.” This sliding scale may not appeal to everyone, but it has two main advantages. For long-term planners with specific deadlines, such as retiring in 12 years or buying a home in seven, precision pricing could be ideal. It also works nicely for people who know exactly how much they have in their monthly budget. If you can spare exactly $327.42 per month, you can get a plan that fits your specific need.

Like other legitimate lenders out there, Earnest doesn’t charge any pre-payment penalties or loan origination fees. Paying back your loan is just paying back principal and interest.

Help for more Borrowers: Most refinance lenders only accept borrowers with completed bachelor’s degrees.

Earnest will refinance borrowers with associate’s degrees and borrowers who didn’t finish school.

Navient Purchase of Earnest

When this article was first published, Earnest was a student loan startup out to make a name with their flexible repayment options.

As time went by, Earnest grew and was ultimately purchased by Navient, a massive student loan company with a questionable reputation.

Unsurprisingly, the $155 million purchase of Earnest has led to some changes. Some Earnest customers now complain that things are less consumer-friendly and less transparent.

Those looking to refinance their student loans to get away from Sallie Mae/Navient should look to other lenders offering refinancing services.

Earnest Advantages

One thing that we love about Earnest is that they service all of their loans. Many lenders will refinance your debt but then sell the loan to another company. The quality of the new service you get can be a mystery. Earnest keeps repayment in-house. It doesn’t guarantee better service, but it is better than the alternative.

The most significant advantage with Earnest, and the reason many people may choose to work with them, is their “big picture” approach to lending decisions. They believe that they can make a smarter decision on application approvals by looking at more financial information. We reached out to Earnest to get an example of someone who could benefit from their method, and they provided the following response:

“We have a client who is a librarian with a Masters in English Literature. She makes a public librarian’s salary and is incredibly financially responsible — she pays her bills in full and on time and saves a substantial amount of money in both investment and non-investment accounts. But she also doesn’t have a great credit score — it’s not bad, but not great — because she simply doesn’t use traditional credit cards and credit products. That’s someone who could be instantly denied by a lot of traditional lenders (as well as Earnest competitors), but when we look at that profile, we see someone who is tremendously responsible with her money and deserves our best rates. We think our approach unlocks access to credit for a lot of people who truly deserve it.”

A couple of things stand out from this example: a less-than-perfect credit because of a limited history and building a retirement account. If you are very careful with your money, i.e., saving more than you spend and putting money aside for retirement, Earnest is worth exploring.

However, it is worth pointing out that getting approved for an Earnest loan will still require a credit score of at least 680.

Cause for Concern

Earnest advertises a 2 min application for credit approval, but practically speaking, we do have some concerns about this process. The major advantage of Earnest, the big picture approach, could also become a big issue during the application and loan refinance process. Because Earnest examines more financial information, it means that Earnest will need access to more financial information. It means more records to verify and paperwork to put into place.

Ultimately, if sending in a little bit of extra information lowers your interest rate, it is time well spent, but it does increase the odds of headaches along the way.

Finally, Earnest refinances federal student loans. Refinancing federal loans with a private lender is a risky trade. Borrowers can get better interest rates, but they give up federal perks like Income-Driven Repayment plans and student loan forgiveness. While this can work for some borrowers, for others, it is a huge mistake. Before you refinance, make sure you know whether or not student loan refinancing is for you.

Frequently Asked Questions About Earnest

Earnest Refinance Review: Final Thoughts

Earnest is probably the ideal option for people who are responsible with their money but might not have a huge income or a perfect credit score. If you think your credit score or yearly income doesn’t tell the whole story, Earnest could be the best option.

Given that Earnest has loans with rates starting below 5% and a unique approach, they get a spot in the top five of our student loan refinance rankings.

To check out the rate you qualify for with Earnest, apply here.

—

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

The post Earnest Student Loan Refinance Review appeared first on The Student Loan Sherpa.

The borrowers who understand the critical distinctions between the two lenders will better position themselves to find the best deal.

Basic Terms from Laurel Road and Earnest

Variable-Rate Loans	5.29% - 9.20%	5.89% - 9.74%^
Fixed-Rate Loans	4.99% - 8.90%	3.95% - 9.74%^
Loan Terms	5, 7, 10, 15, and 20 Years	5 - 20 Years
Minimum Loan	$5,000	$5,000
Signup Bonus	NA	$150^

^ The lowest listed rate for Earnest is a 5-year variable rate loan, and rates for both lenders are listed as an APR. Please see the Earnest Disclosure for more details on rates and bonus terms.

At first glance, there isn’t much separating these two lenders. Both variable and fixed-rate loans appear in similar ranges.

However, things get interesting as we dig deeper into the two lenders.

Key Differences Between Lenders

Laurel Road and Earnest approach student loan refinancing from two unique perspectives.

Earnest, at its core, is a tech company. They believe that with the information provided in a short application, they can understand a borrower’s finances far more comprehensively than a traditional lender. Credit score and income are still important factors, but Earnest looks beyond these conventional metrics. For example, If you diligently save for retirement each month, it may help your cause with Earnest.

Laurel Road, however, is a product of a traditional bank. At first glance, this might seem like a negative, but it does have some benefits for borrowers. The majority of the major refinance lenders are tech-driven companies. Interest rates with tech-focused lenders tend to move very quickly with the broader market. The lenders backed by a bank tend to change rates a little slower. During times of inflation, traditional banking lenders often have the lowest interest rates.

Finally, Laurel Road places a big emphasis on doctors and those in the medical field. They seem to understand that a young physician’s starting salary is likely to increase considerably in the future. As a result, many recent medical school graduates find the best deal with Laurel Road.

Interest Rates Offered and Reader Feedback

The strategies used by the two lenders are interesting, but ultimately, the interest rates are the most important details.

More specifically, the interest rates actually offered by the two lenders are the most important details. In many cases, the lenders that advertise the lowest interest rates are not the lenders that offer the lowest interest rates.

In the case of Earnest, borrowers have reported a wide variety of interest rate outcomes. Many readers of this site have found the best deal with Earnest. Others have been insulted by surprisingly high rates. This is likely attributable to the unique formulas employed by Earnest.

Laurel Road tends to offer rates pretty close to their advertised rates in various loan categories. Unfortunately, Laurel Road tends to be in the middle of the road regarding approvals. They are not terribly strict, but a rejection at Laurel Road doesn’t necessarily mean a borrower can’t get approved anywhere.

Deciding Between Laurel Road and Earnest

These two lenders sit at the top of the student loan refinance rankings. Additionally, they have both been towards the top for many years.

If you are a borrower who is very responsible financially, but you don’t have a long credit history, or you have a lower income, Earnest should probably be the first company you check out.

However, Laurel Road should be your first stop if you are in the medical field.

If you don’t fit into either of these small boxes, both companies merit serious consideration. Checking rates with both lenders is often well worth the 10-15 minutes required to get an offer.

Finally, Earnest offers a $150 bonus to borrowers who refinance using the links on this page.

Other Lenders to Consider

	Splash is extremely focused on interest rates. They consistently have the lowest rates in numerous loan categories. Read more...
	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...
	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 Laurel Road vs. Earnest Student Loan Refinance Showdown appeared first on The Student Loan Sherpa.

Even though these lenders both offer low interest rates, there are major differences between the two companies. From the source of funding to the approval process, Citizens Bank and Earnest use very different strategies.

The borrowers that identify and understand these differences will find the best refinance deal.

Citizens Bank vs. Earnest: Refinance Basics

Interest Rates	6.92% - 12.34%	5.89% - 9.74%^
Loan Terms	5, 7, 10, 15, and 20 Years	5 - 20 Years
Minimum Loan	$10,000	$5,000
Signup Bonus	-	$150^

Both lenders offer solid interest rates, with Earnest usually offering slightly lower rates to the best-qualified borrowers.

One of the first significant differences is the repayment length options. Citizens offers the more traditional 5, 7, 10, 15, and 20-year repayment plans. Earnest borrowers can pick any length between 5 and 20 years. If a borrower wanted to repay their loan in precisely 6 years and 7 months, Earnest would create that loan. The benefit of that level of specificity isn’t apparent, but for borrowers who want a specific loan length, Earnest is the only lender offering this feature.

From a terms and conditions standpoint, the lenders are pretty similar. Like most legitimate lenders, there are no prepayment, origination, or application fees with Citizens Bank or Earnest.

Both lenders also refinance federal loans into private loans. Refinancing a federal loan into a private loan is risky because borrowers lose federal perks and protections. However, all refinance lenders provide federal consolidation, so it is hard to fault Citizens or Earnest. Nonetheless, borrowers with federal loans should carefully consider their options before refinancing their loans with any private lender.

A Note About Earnest Ownership Several years ago Earnest was purchased by Naivent. Given Navient’s lousy reputation among student loan borrowers, there was concern that Earnest’s quality would drop.

Fortunately, there hasn’t been a noticeable difference in borrower feedback since this purchase. However, borrowers that wish to distance themselves from Navient may also want to avoid Earnest.

Citizens Bank Advantages

Citizens Bank is one of the few remaining traditional banks offering student loan refinancing. Most of the larger lenders: SoFi, CommonBond, and Earnest, are considered fin-tech companies.

The fin-tech lenders depend on investor interest in student loans to fund loans. If investor interest drops, these lenders have to raise rates. A bank like Citizens can fund their own loans. Borrowers out to find the lowest possible refinance rate should check rates with bank-based and fin-tech lenders to secure the best deal.

Another big advantage to Citizens is that they will refinance loans for borrowers without a degree. Most of the other student loan refinance companies require applicants to have a degree.

Earnest Advantages

The one aspect that separates Earnest from all other refinance lenders is their application process.

Typically, lenders care about two numbers when making credit decisions: monthly debt-to-income ratio and credit score. Earnest looks at the bigger financial picture of applicants. For example, a borrower who sets aside money each month in a retirement account or savings account may fair better with Earnest.

In the past, the additional information that Earnest required meant completing the application took longer. Today, getting approved with Earnest takes about 10 minutes, which is comparable to most other lenders.

Finally, Earnest offers a $150 Bonus to new customers who apply through this link. Full terms and conditions on the bonus program are available here.

Deciding Between Earnest and Citizens

Most borrowers looking to refinance should consider both Earnest and Citizens Bank.

Borrowers without a degree will find Citizens is one of the few lenders willing to refinance. Borrowers who need a very specific repayment length should focus on Earnest.

Ultimately, most borrowers will benefit from checking rates with both lenders. Earnest and Citizens use very different criteria for determining approval and interest rates. One borrower may get an excellent rate from Earnest while another might find a far better deal with Citizens. The exact lender formulas are closely guarded secrets, so borrowers looking for the lowest possible rate must shop around.

Click here to check rates with Citizens Bank.

Click here to check rates with Earnest.

The post Earnest vs. Citizens Bank Student Loan Refinance Comparison 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.

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.

Not surprisingly, the two companies have a lot in common. Both lenders offer excellent rates, but there are reasons some borrowers may want to steer clear of both options.

SoFi and Earnest Basics

Variable-Rate Loans	5.99% – 9.99%	5.89% – 9.74%^
Fixed-Rate Loans	4.49% – 9.99%	3.95% – 9.74%^
Loan Terms	5, 7, 10, 15, and 20 Years	5 – 20 Years
Minimum Loan	$5,000	$5,000
Signup Bonus	NA	$150^

^ The lowest listed rate for Earnest is a 5-year variable rate loan, and rates for both lenders are listed as an APR. Please see the Earnest Disclosure for more details on rates and bonus terms.

On the surface, these two lenders look nearly identical. However, by digging a little deeper, some critical distinctions emerge.

Key Differences

Perhaps the most significant difference between the two companies is the application criteria for getting approved. As we noted in our review of SoFi, the credit score and income requirements are pretty high. In contrast, Earnest places less value on these two financial indicators. The Earnest approach looks at more financial records to better understand your responsibility with money and ability to pay. That is why they ask to connect your bank accounts and investment accounts (if you have them).

The downside to the Earnest approach is that they may require more records before your loan reaches final approval. Depending upon your circumstances, this could be a good thing or a bad thing.

A Red Flag for Each Lender

Both lenders have solid reputations.

However, each lender also has a skeleton in their closet that may upset potential borrowers.

When Earnest first entered the refinance market, it was a tech-based startup. They set out to be better than the rest by offering excellent rates and flexible terms. Several years ago, Earnest was purchased by Navient, a company disliked by many student loan borrowers. As noted in the comprehensive review of Earnest, this purchase was finalized many years ago, and it doesn’t seem to have changed Earnest. However, whether or not this is a problem is up to each individual borrower.

Similarly, SoFi is a tech-driven lender with consumer-friendly focus. As SoFi has grown, it has remained independent, and largely remained borrower-friendly. However, in the spring of 2023, SoFi made the decision to file a lawsuit to end the federal student loan payment and interest pause. As a result of this decision, some borrowers may choose not to work with SoFi.

The Sherpa Perspective: Nearly every major lender in the student loan refinance space is a for-profit company. As such, each lender has made some decisions that will likely upset some borrowers.

If I was refinancing my loans today, I’d pick the lender the offers the lowest rate and use them to save as much money as I could. The second another lender offers a lower rate, I’d refinance again. Lenders ultimately make decisions in their best business interests. As a consumer, I tend to do the same.

Important Similarities Between SoFi and Earnest

Now that we know the reasons borrowers might want to avoid these two lenders, it is important first to explain why they both rank highly on the student loan refinance lender rankings.

In addition to the low-interest rates, both companies offer similar terms that most borrowers should expect. For starters, neither company charges any origination fee. Along the same line, neither company charges any prepayment fee. Most telling is that contracts with both lenders have provisions for loan discharge in the event of disability or death. This is a term that not all lenders include but one that borrowers should demand.

The SoFi Advantage

The thing that separates SoFi from Earnest, and all other lenders, is their job placement program. When you apply for student loan refinancing, it usually means you are in a pretty good financial situation. Otherwise, you would have little chance of approval.

Few people consider the possibility of losing their job during this time.

Most lenders are willing to provide a short deferment or forbearance, but SoFi has employees who will help you find a new job or a better job. They bet that they will spend less money helping people find a job than what they would spend trying to collect the debt for people who fall behind. Nobody plans on losing their job, but if you do, you will likely be glad you opted to get your loan through SoFi. This program is part of the reason that SoFi checks in toward the top of our student loan rankings.

Another aspect of SoFi that borrowers should like is their transparency. Due to the federal interest rate freeze during the Covid-19 pandemic, borrowers with federal loans were much better off choosing not to refinance. This site evaluated how each lender did advising borrowers to make a smart decision. SoFi had the best guidance.

Reasons to Pick Earnest

Two big factors could make Earnest a better option for borrowers.

The first Earnest edge is the deeper dive they take into an applicant’s finances. Borrowers who keep an emergency fund and save for retirement may help their application with Earnest. Most other lenders ignore these signs of creditworthiness.

Secondly, Earnest allows borrowers to get very flexible with their repayment length. Most lenders force borrowers to pick between a 5, 7, 10, 15, or 20-year loan. At Earnest, a borrower can select a customized repayment length between 5 and 20 years.

Finally, Earnest also offers $150 to new borrowers who refinance their loans.

Sherpa Thoughts on Comparing SoFi vs. Earnest

I’ve been watching and reviewing student loan refi companies for the past decade.

Based on what I have seen during that time, I’d give SoFi a very slight edge. Generally speaking, borrowers who apply with SoFi have slightly better odds at getting approval, but there are undoubtedly many cases where Earnest comes out ahead.

These two lenders are structured very similarly as they are both categorized as “fin-tech” companies. For borrowers, this means the rate they offer will depend upon investor interest in student loan refinancing. At times Earnest will have more available capital and be more likely to approve a borrower. Other times, SoFi will have more funding available and be more aggressive about getting new customers.

Anyone looking to find the best student loan refinance rate should certainly consider both SoFi and Earnest.

Other Lenders to Consider

	Splash is extremely focused on interest rates. They consistently have the lowest rates in numerous loan categories. Read more...
	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...
	LendKey partners with smaller banks and credit unions across the country. This approach results in higher approval numbers and competitive loan terms. Read more...

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