Earnest Student Loan Refinancing: A Smart Move for Graduates?
What Is Student Loan Refinancing?
Student loan refinancing allows borrowers to replace one or more existing student loans with a new loan—ideally at a lower interest rate or better repayment terms. This can lead to reduced monthly payments, lower interest paid over time, and greater financial freedom.
About Earnest
Earnest is a well-known fintech lender specializing in student loan refinancing and private student loans. Founded in 2013 and acquired by Navient in 2017, Earnest has gained a strong reputation for flexible repayment options, transparency, and competitive interest rates.
Key Features of Earnest Student Loan Refinancing
- Low Interest Rates
- Fixed rates: ~4.96% to 9.74% APR (as of early 2025)
- Variable rates: ~5.72% to 9.99% APR
- Rates depend on credit, income, and loan terms.
- No Fees
- No origination fees
- No prepayment penalties
- No late fees (unique feature!)
- Custom Repayment Terms
Earnest allows you to pick precise loan terms (anywhere between 5 and 20 years) instead of being limited to fixed-term options. - Forbearance & Hardship Options
Temporary forbearance may be offered during financial hardship, including job loss or medical issues. - Skip a Payment Option
Once every 12 months, borrowers in good standing can choose to skip one monthly payment. - Parent PLUS Refinancing
Parents with federal Parent PLUS loans can refinance in their name or transfer the loan to their child (if eligible).
Who Should Consider Earnest?
Earnest may be a good fit for:
- Borrowers with strong credit (typically 650+ or higher)
- Those with a stable income and a low debt-to-income ratio
- Graduates looking for flexible repayment plans
- People with multiple student loans seeking simplicity and lower rates
Who Should Avoid Refinancing?
You should not refinance federal student loans with any private lender, including Earnest, if you want to retain:
- Federal protections like income-driven repayment (IDR) plans
- Public Service Loan Forgiveness (PSLF)
- Deferment and forbearance programs
- CARES Act benefits (0% interest, paused payments — though these are ending)
Once refinanced, federal loans become private and lose these benefits.
Requirements for Earnest Refinancing
- Must be a U.S. citizen or permanent resident
- Must have graduated from a Title IV-accredited school
- Must have a stable income or job offer
- Minimum loan amount: $5,000 (varies by state)
- No bankruptcies within the past 3 years
Application Process
- Check Rates Online — Soft credit pull only.
- Submit Full Application — Includes employment and income verification.
- Get Approval & Choose Terms — Customize your repayment length and monthly payment.
- Loan Payoff — Earnest pays off your existing loans directly.
- Start Repayment — Usually begins within a month of refinancing.
Earnest vs. Other Lenders
Final Thoughts
Earnest offers one of the most flexible and borrower-friendly refinancing options available. If you’re not relying on federal benefits and are confident in your financial stability, refinancing through Earnest could save you thousands in interest and give you better control over your debt.
However, always compare rates and consider your long-term goals before making the leap.