content
stringlengths 11
1.23k
| title
stringlengths 12
99
| url
stringlengths 24
149
| instruction
stringlengths 137
1.48k
|
|---|---|---|---|
The average annual salary for Americans with a high school diploma is just under $40,000 per year, according to the Motley Fool, while people with a bachelor’s degree make an average of $80,478 per year.
Networking circles
Going to college provides a wealth of networking opportunities that can greatly benefit students in their future careers. Whether it’s through attending career fairs, joining student organizations, or participating in internships, college students have access to many resources for meeting and connecting with professionals in their desired fields.
Additionally, professors and alumni can serve as valuable connections, providing students with industry insights and potential job leads. Networking during college can also lead to lifelong friendships and collaborations, making it a valuable investment in both personal and professional growth.
Job security | Should You Go to College? 11 Pros & Cons Earnest Blog | https://www.earnest.com/blog/should-i-go-to-college/ | ###Instruction Tell me about:
Should You Go to College? 11 Pros & Cons Earnest Blog
from web page:
https://www.earnest.com/blog/should-i-go-to-college/
###Response
The average annual salary for Americans with a high school diploma is just under $40,000 per year, according to the Motley Fool, while people with a bachelor’s degree make an average of $80,478 per year.
Networking circles
Going to college provides a wealth of networking opportunities that can greatly benefit students in their future careers. Whether it’s through attending career fairs, joining student organizations, or participating in internships, college students have access to many resources for meeting and connecting with professionals in their desired fields.
Additionally, professors and alumni can serve as valuable connections, providing students with industry insights and potential job leads. Networking during college can also lead to lifelong friendships and collaborations, making it a valuable investment in both personal and professional growth.
Job security |
Job security
College grads enjoy more job security than people without a bachelor’s degree. In February 2022, for example, the Bureau of Labor Statistics reported that high school graduates over the age of 25 with no college education had an unemployment rate of 4.5%. During that same month, college graduates had a 2.2% unemployment rate.
In general, the more postsecondary education you have, the more job security you’ll have. And you’ll make more money, too. In 2018, the Bureau of Labor Statistics reported that people over 25 with master’s degrees had an unemployment rate of 2.1%. Those employed full-time had a median weekly salary of $1,434. Bachelor’s degree holders in the same study had a slightly higher unemployment rate of 2.2%, and a median salary of $1,198 per week.
By comparison, people with associate’s degrees had an unemployment rate of 2.8% and a median weekly salary of $862.
Career opportunities | Should You Go to College? 11 Pros & Cons Earnest Blog | https://www.earnest.com/blog/should-i-go-to-college/ | ###Instruction Tell me about:
Should You Go to College? 11 Pros & Cons Earnest Blog
from web page:
https://www.earnest.com/blog/should-i-go-to-college/
###Response
Job security
College grads enjoy more job security than people without a bachelor’s degree. In February 2022, for example, the Bureau of Labor Statistics reported that high school graduates over the age of 25 with no college education had an unemployment rate of 4.5%. During that same month, college graduates had a 2.2% unemployment rate.
In general, the more postsecondary education you have, the more job security you’ll have. And you’ll make more money, too. In 2018, the Bureau of Labor Statistics reported that people over 25 with master’s degrees had an unemployment rate of 2.1%. Those employed full-time had a median weekly salary of $1,434. Bachelor’s degree holders in the same study had a slightly higher unemployment rate of 2.2%, and a median salary of $1,198 per week.
By comparison, people with associate’s degrees had an unemployment rate of 2.8% and a median weekly salary of $862.
Career opportunities |
Career opportunities
Going to college can have numerous career benefits outside of increased earning potential and job security. For example, certain jobs and industries require a college degree for entry-level positions, so with a college degree, you’re in some cases immediately more marketable as an applicant.
College also provides access to career services, such as resume building, interview preparation, and job search assistance, which can further enhance a student’s career prospects. Maybe the most valuable to students is the ability to capitalize on a school’s connections with local and national businesses. This could help you land internships to explore multiple career paths, which could save you much time and frustration once you graduate and pick a career. Overall, going to college can provide a solid foundation for a successful and fulfilling career.
Specialized knowledge | Should You Go to College? 11 Pros & Cons Earnest Blog | https://www.earnest.com/blog/should-i-go-to-college/ | ###Instruction Tell me about:
Should You Go to College? 11 Pros & Cons Earnest Blog
from web page:
https://www.earnest.com/blog/should-i-go-to-college/
###Response
Career opportunities
Going to college can have numerous career benefits outside of increased earning potential and job security. For example, certain jobs and industries require a college degree for entry-level positions, so with a college degree, you’re in some cases immediately more marketable as an applicant.
College also provides access to career services, such as resume building, interview preparation, and job search assistance, which can further enhance a student’s career prospects. Maybe the most valuable to students is the ability to capitalize on a school’s connections with local and national businesses. This could help you land internships to explore multiple career paths, which could save you much time and frustration once you graduate and pick a career. Overall, going to college can provide a solid foundation for a successful and fulfilling career.
Specialized knowledge |
Specialized knowledge
One of the primary benefits of attending college is the specialized knowledge that students gain in their chosen field of study. Depending on the major, students can learn everything from the fundamentals of biology to the nuances of international business law. This specialized knowledge is often taught by experts in the field, providing students with access to the latest research, theories, and practices in their chosen area of study.
Gaining this specialization can be essential for success in many careers, as it allows students to understand the complexities of their field and stay up-to-date with the latest trends and advances. It can also be valuable for pursuing graduate studies or for starting a business in a specific industry.
Transferable skills | Should You Go to College? 11 Pros & Cons Earnest Blog | https://www.earnest.com/blog/should-i-go-to-college/ | ###Instruction Tell me about:
Should You Go to College? 11 Pros & Cons Earnest Blog
from web page:
https://www.earnest.com/blog/should-i-go-to-college/
###Response
Specialized knowledge
One of the primary benefits of attending college is the specialized knowledge that students gain in their chosen field of study. Depending on the major, students can learn everything from the fundamentals of biology to the nuances of international business law. This specialized knowledge is often taught by experts in the field, providing students with access to the latest research, theories, and practices in their chosen area of study.
Gaining this specialization can be essential for success in many careers, as it allows students to understand the complexities of their field and stay up-to-date with the latest trends and advances. It can also be valuable for pursuing graduate studies or for starting a business in a specific industry.
Transferable skills |
Transferable skills
College is not just a place to gain specialized knowledge in one particular field of study. It is also a place where students can develop a wide range of transferable skills that can be applied to many different careers and life situations.
For example, students learn critical thinking, problem-solving, and analytical skills that can be used in any job that requires decision-making. In addition, college provides opportunities to develop communication skills, both written and verbal, as well as teamwork and collaboration skills through group projects and presentations. Time management, organization, and leadership skills are also developed through managing coursework, extracurricular activities, and internships. These skills are highly valued by employers and can be essential for success in any career path.
The college experience | Should You Go to College? 11 Pros & Cons Earnest Blog | https://www.earnest.com/blog/should-i-go-to-college/ | ###Instruction Tell me about:
Should You Go to College? 11 Pros & Cons Earnest Blog
from web page:
https://www.earnest.com/blog/should-i-go-to-college/
###Response
Transferable skills
College is not just a place to gain specialized knowledge in one particular field of study. It is also a place where students can develop a wide range of transferable skills that can be applied to many different careers and life situations.
For example, students learn critical thinking, problem-solving, and analytical skills that can be used in any job that requires decision-making. In addition, college provides opportunities to develop communication skills, both written and verbal, as well as teamwork and collaboration skills through group projects and presentations. Time management, organization, and leadership skills are also developed through managing coursework, extracurricular activities, and internships. These skills are highly valued by employers and can be essential for success in any career path.
The college experience |
The college experience
While you probably wouldn’t go to a four-year college just for the fun times, the college experience is one to savor. For most students who haven’t done a gap year, it’s the first time they’re living away from home — sometimes thousands of miles away — and experiencing real independence. That can be hard and confusing at times, but it can also be an incredible challenge that pushes you as a person and sets you up for long-term success.
Every year of college brings new opportunities for growth, development, and personal relationships. Even if you stay in-state, do part-time enrollment, or live at home to save money, you’ll still have valuable experiences. It’s all about what you make of it. The more proactive you are about finding and taking advantage of exciting opportunities through your degree program, the more you’ll be able to explore your passions, discover new interests, and set yourself up for success in all areas of life post-graduation. | Should You Go to College? 11 Pros & Cons Earnest Blog | https://www.earnest.com/blog/should-i-go-to-college/ | ###Instruction Tell me about:
Should You Go to College? 11 Pros & Cons Earnest Blog
from web page:
https://www.earnest.com/blog/should-i-go-to-college/
###Response
The college experience
While you probably wouldn’t go to a four-year college just for the fun times, the college experience is one to savor. For most students who haven’t done a gap year, it’s the first time they’re living away from home — sometimes thousands of miles away — and experiencing real independence. That can be hard and confusing at times, but it can also be an incredible challenge that pushes you as a person and sets you up for long-term success.
Every year of college brings new opportunities for growth, development, and personal relationships. Even if you stay in-state, do part-time enrollment, or live at home to save money, you’ll still have valuable experiences. It’s all about what you make of it. The more proactive you are about finding and taking advantage of exciting opportunities through your degree program, the more you’ll be able to explore your passions, discover new interests, and set yourself up for success in all areas of life post-graduation. |
Cons of going to college
A degree may be unnecessary
While there are certainly many fields that require a college degree, it is important to recognize that higher education is not always necessary for every career. In some cases, on-the-job training, apprenticeships, or vocational programs may provide more direct pathways to success.
For example, many skilled trades such as plumbing, electrician work, or construction can be learned through apprenticeships or certification programs. Similarly, some professions such as sales, customer service, or creative writing may place more value on practical skills and experience than on academic credentials. Ultimately, the decision to pursue higher education should be based on personal goals, interests, and career aspirations.
Student loan debt | Should You Go to College? 11 Pros & Cons Earnest Blog | https://www.earnest.com/blog/should-i-go-to-college/ | ###Instruction Tell me about:
Should You Go to College? 11 Pros & Cons Earnest Blog
from web page:
https://www.earnest.com/blog/should-i-go-to-college/
###Response
Cons of going to college
A degree may be unnecessary
While there are certainly many fields that require a college degree, it is important to recognize that higher education is not always necessary for every career. In some cases, on-the-job training, apprenticeships, or vocational programs may provide more direct pathways to success.
For example, many skilled trades such as plumbing, electrician work, or construction can be learned through apprenticeships or certification programs. Similarly, some professions such as sales, customer service, or creative writing may place more value on practical skills and experience than on academic credentials. Ultimately, the decision to pursue higher education should be based on personal goals, interests, and career aspirations.
Student loan debt |
Student loan debt
How much debt you might graduate with depends on a lot of different factors, including family income, field of study, university of choice, and whether you have the ability to work during school. Statistics on this vary based on whether private loans are taken into consideration, but a typical student these days has about $30,000 in outstanding debt upon graduation, according to NerdWallet. Some people graduate with less, while others graduate with tens of thousands more.
You may find it useful to analyze statistics about the average debt upon graduation specific to each university you’re considering. You can find comprehensive statistics for colleges across the country from U.S. News & World Report’s college rankings.
You may spend money on a degree you don’t use | Should You Go to College? 11 Pros & Cons Earnest Blog | https://www.earnest.com/blog/should-i-go-to-college/ | ###Instruction Tell me about:
Should You Go to College? 11 Pros & Cons Earnest Blog
from web page:
https://www.earnest.com/blog/should-i-go-to-college/
###Response
Student loan debt
How much debt you might graduate with depends on a lot of different factors, including family income, field of study, university of choice, and whether you have the ability to work during school. Statistics on this vary based on whether private loans are taken into consideration, but a typical student these days has about $30,000 in outstanding debt upon graduation, according to NerdWallet. Some people graduate with less, while others graduate with tens of thousands more.
You may find it useful to analyze statistics about the average debt upon graduation specific to each university you’re considering. You can find comprehensive statistics for colleges across the country from U.S. News & World Report’s college rankings.
You may spend money on a degree you don’t use |
You may spend money on a degree you don’t use
College is a time to take risks and explore what you’re interested in, but it can also be expensive to take too much time figuring out what you want to do. If you decide you want to study politics, and then you graduate and realize you really want to be a doctor, you may need to go back to school and essentially start over. That will cost a lot of extra money. It’s also important to remember that you have to pay back your student loans even if you don’t finish your degree.
If you’re not sure of your course of study or if you get confused part way through, it’s OK to take some time off to reevaluate. You might find it helpful to take a gap year between high school and college, and/or to take some classes at a less expensive community college to explore your interests.
Is college worth it? | Should You Go to College? 11 Pros & Cons Earnest Blog | https://www.earnest.com/blog/should-i-go-to-college/ | ###Instruction Tell me about:
Should You Go to College? 11 Pros & Cons Earnest Blog
from web page:
https://www.earnest.com/blog/should-i-go-to-college/
###Response
You may spend money on a degree you don’t use
College is a time to take risks and explore what you’re interested in, but it can also be expensive to take too much time figuring out what you want to do. If you decide you want to study politics, and then you graduate and realize you really want to be a doctor, you may need to go back to school and essentially start over. That will cost a lot of extra money. It’s also important to remember that you have to pay back your student loans even if you don’t finish your degree.
If you’re not sure of your course of study or if you get confused part way through, it’s OK to take some time off to reevaluate. You might find it helpful to take a gap year between high school and college, and/or to take some classes at a less expensive community college to explore your interests.
Is college worth it? |
Is college worth it?
Ultimately, you’ll have to decide for yourself whether college is worth the expense. While most college graduates earn more money in their lifetimes than people without bachelor’s degrees, everyone’s experience is different — and some people do struggle to pay off their loans if they borrow more than they can easily afford to pay back on entry-level salaries.
If you want to pursue a career that requires specialized knowledge, you may not be able to get interviews without having a degree, even if you’re incredibly smart and talented. In this case, if money is a barrier, you can try decreasing the cost by taking College Board-certified Advanced Placement classes, which can earn you college credit to help you graduate early. You should also fill out the FAFSA to find out whether you’re qualified for federal grants you won’t have to pay back.¹ | Should You Go to College? 11 Pros & Cons Earnest Blog | https://www.earnest.com/blog/should-i-go-to-college/ | ###Instruction Tell me about:
Should You Go to College? 11 Pros & Cons Earnest Blog
from web page:
https://www.earnest.com/blog/should-i-go-to-college/
###Response
Is college worth it?
Ultimately, you’ll have to decide for yourself whether college is worth the expense. While most college graduates earn more money in their lifetimes than people without bachelor’s degrees, everyone’s experience is different — and some people do struggle to pay off their loans if they borrow more than they can easily afford to pay back on entry-level salaries.
If you want to pursue a career that requires specialized knowledge, you may not be able to get interviews without having a degree, even if you’re incredibly smart and talented. In this case, if money is a barrier, you can try decreasing the cost by taking College Board-certified Advanced Placement classes, which can earn you college credit to help you graduate early. You should also fill out the FAFSA to find out whether you’re qualified for federal grants you won’t have to pay back.¹ |
If you’re not ready to decide just yet, that’s completely fine. You can always take a gap year and apply later, after you’ve had some work experience and saved up some money.
Learn more about Earnest student loans | Should You Go to College? 11 Pros & Cons Earnest Blog | https://www.earnest.com/blog/should-i-go-to-college/ | ###Instruction Tell me about:
Should You Go to College? 11 Pros & Cons Earnest Blog
from web page:
https://www.earnest.com/blog/should-i-go-to-college/
###Response
If you’re not ready to decide just yet, that’s completely fine. You can always take a gap year and apply later, after you’ve had some work experience and saved up some money.
Learn more about Earnest student loans |
Are you trying to fill the gap between financial aid and college expenses? Earnest offers flexible terms, no fees, and a 9-month grace period² compared to the 6-month grace period offered by other lenders. To see our latest interest rates, visit our private student loans page. Find out what your student loan payments could look like with our free student loan calculator. If you'd like to lower your interest rate, refinancing could be for you. Get My Rate Authors at Earnest We are a skilled team of design, math, finance, and technology geeks who noticed a lack of trust in the financial system and decided to do something about it. We also like to write articles to help clients with any financial challenge they may face. Disclaimer: This blog post provides personal finance educational information, and it is not intended to provide legal, financial, or tax advice. 1 Before applying for private student loans, it’s best to maximize your other sources of financial aid first. It’s recommended to use a 3-step approach to assembling the funds you need: 1) Look for funds you don’t have to pay back, like scholarships, grant, and work-study opportunities. 2) Next, fill out a FAFSA(R) form to | Should You Go to College? 11 Pros & Cons Earnest Blog | https://www.earnest.com/blog/should-i-go-to-college/ | ###Instruction Tell me about:
Should You Go to College? 11 Pros & Cons Earnest Blog
from web page:
https://www.earnest.com/blog/should-i-go-to-college/
###Response
Are you trying to fill the gap between financial aid and college expenses? Earnest offers flexible terms, no fees, and a 9-month grace period² compared to the 6-month grace period offered by other lenders. To see our latest interest rates, visit our private student loans page. Find out what your student loan payments could look like with our free student loan calculator. If you'd like to lower your interest rate, refinancing could be for you. Get My Rate Authors at Earnest We are a skilled team of design, math, finance, and technology geeks who noticed a lack of trust in the financial system and decided to do something about it. We also like to write articles to help clients with any financial challenge they may face. Disclaimer: This blog post provides personal finance educational information, and it is not intended to provide legal, financial, or tax advice. 1 Before applying for private student loans, it’s best to maximize your other sources of financial aid first. It’s recommended to use a 3-step approach to assembling the funds you need: 1) Look for funds you don’t have to pay back, like scholarships, grant, and work-study opportunities. 2) Next, fill out a FAFSA(R) form to |
don’t have to pay back, like scholarships, grant, and work-study opportunities. 2) Next, fill out a FAFSA(R) form to apply for federal student loans. Federal Direct subsidized and unsubsidized loans, excluding PLUS Loan for Parents and PLUS Loan for Graduate and Professional Students which require a credit check and a credit worthy endorser if the parent or graduate or professional student has adverse credit, do not require a credit check or cosigner, and offer various protections if your struggling with your payments. 3) Finally, consider a private student loan to cover any difference between your total cost of attendance and the amount not covered in steps 1 and 2. For more information, visit the Department of Education website at https://studentaid.ed.gov. 2 Nine-month grace period is not available for borrowers who choose our Principal and Interest Repayment plan while in school. Let us do the math Use our calculators to aggregate multiple student loans or preview your potential savings from refinancing with Earnest. I want to Refi my student loan Consolidate my student loans Current Loan Balance Next: Add Your New Loan Earnest Loans are made by Earnest Operations | Should You Go to College? 11 Pros & Cons Earnest Blog | https://www.earnest.com/blog/should-i-go-to-college/ | ###Instruction Tell me about:
Should You Go to College? 11 Pros & Cons Earnest Blog
from web page:
https://www.earnest.com/blog/should-i-go-to-college/
###Response
don’t have to pay back, like scholarships, grant, and work-study opportunities. 2) Next, fill out a FAFSA(R) form to apply for federal student loans. Federal Direct subsidized and unsubsidized loans, excluding PLUS Loan for Parents and PLUS Loan for Graduate and Professional Students which require a credit check and a credit worthy endorser if the parent or graduate or professional student has adverse credit, do not require a credit check or cosigner, and offer various protections if your struggling with your payments. 3) Finally, consider a private student loan to cover any difference between your total cost of attendance and the amount not covered in steps 1 and 2. For more information, visit the Department of Education website at https://studentaid.ed.gov. 2 Nine-month grace period is not available for borrowers who choose our Principal and Interest Repayment plan while in school. Let us do the math Use our calculators to aggregate multiple student loans or preview your potential savings from refinancing with Earnest. I want to Refi my student loan Consolidate my student loans Current Loan Balance Next: Add Your New Loan Earnest Loans are made by Earnest Operations |
Consolidate my student loans Current Loan Balance Next: Add Your New Loan Earnest Loans are made by Earnest Operations LLC or One American Bank, Member FDIC, or FinWise Bank, Member FDIC:. Earnest Operations LLC NMLS #1204917 nmlsconsumeraccess.org List of licensed states 535 Mission St., Suite 1663, San Francisco, CA 94105 One American Bank 515 S. Minnesota Ave Sioux Falls, SD 57104 FinWise Bank, Member FDIC 756 East Winchester Suite 100 Murray, UT 84107 Earnest loans are serviced by Earnest Operations LLC (NMLS #1204917) with support from Navient Solutions, LLC (NMLS #212430). One American Bank, FinWise Bank, and Earnest LLC and its subsidiaries, including Earnest Operations LLC, are not sponsored by or agencies of the United States of America. For California residents (Student Loan Refinance Only): Loans will be arranged or made pursuant to a California Financing Law License. Contact Us: 888-601-2801 Contact Us: 888-601-2801 © 2023 Earnest LLC. All rights reserved. | Should You Go to College? 11 Pros & Cons Earnest Blog | https://www.earnest.com/blog/should-i-go-to-college/ | ###Instruction Tell me about:
Should You Go to College? 11 Pros & Cons Earnest Blog
from web page:
https://www.earnest.com/blog/should-i-go-to-college/
###Response
Consolidate my student loans Current Loan Balance Next: Add Your New Loan Earnest Loans are made by Earnest Operations LLC or One American Bank, Member FDIC, or FinWise Bank, Member FDIC:. Earnest Operations LLC NMLS #1204917 nmlsconsumeraccess.org List of licensed states 535 Mission St., Suite 1663, San Francisco, CA 94105 One American Bank 515 S. Minnesota Ave Sioux Falls, SD 57104 FinWise Bank, Member FDIC 756 East Winchester Suite 100 Murray, UT 84107 Earnest loans are serviced by Earnest Operations LLC (NMLS #1204917) with support from Navient Solutions, LLC (NMLS #212430). One American Bank, FinWise Bank, and Earnest LLC and its subsidiaries, including Earnest Operations LLC, are not sponsored by or agencies of the United States of America. For California residents (Student Loan Refinance Only): Loans will be arranged or made pursuant to a California Financing Law License. Contact Us: 888-601-2801 Contact Us: 888-601-2801 © 2023 Earnest LLC. All rights reserved. |
Skip to content Sorry there are currently no additional articles in this category Earnest Loans are made by Earnest Operations LLC or One American Bank, Member FDIC, or FinWise Bank, Member FDIC:. Earnest Operations LLC NMLS #1204917 nmlsconsumeraccess.org List of licensed states 535 Mission St., Suite 1663, San Francisco, CA 94105 One American Bank 515 S. Minnesota Ave Sioux Falls, SD 57104 FinWise Bank, Member FDIC 756 East Winchester Suite 100 Murray, UT 84107 Earnest loans are serviced by Earnest Operations LLC (NMLS #1204917) with support from Navient Solutions, LLC (NMLS #212430). One American Bank, FinWise Bank, and Earnest LLC and its subsidiaries, including Earnest Operations LLC, are not sponsored by or agencies of the United States of America. For California residents (Student Loan Refinance Only): Loans will be arranged or made pursuant to a California Financing Law License. Contact Us: 888-601-2801 Contact Us: 888-601-2801 © 2023 Earnest LLC. All rights reserved. | Student Loan Borrowing Archives - Earnest Blog | https://www.earnest.com/blog/category/student-loans/ | ###Instruction Tell me about:
Student Loan Borrowing Archives - Earnest Blog
from web page:
https://www.earnest.com/blog/category/student-loans/
###Response
Skip to content Sorry there are currently no additional articles in this category Earnest Loans are made by Earnest Operations LLC or One American Bank, Member FDIC, or FinWise Bank, Member FDIC:. Earnest Operations LLC NMLS #1204917 nmlsconsumeraccess.org List of licensed states 535 Mission St., Suite 1663, San Francisco, CA 94105 One American Bank 515 S. Minnesota Ave Sioux Falls, SD 57104 FinWise Bank, Member FDIC 756 East Winchester Suite 100 Murray, UT 84107 Earnest loans are serviced by Earnest Operations LLC (NMLS #1204917) with support from Navient Solutions, LLC (NMLS #212430). One American Bank, FinWise Bank, and Earnest LLC and its subsidiaries, including Earnest Operations LLC, are not sponsored by or agencies of the United States of America. For California residents (Student Loan Refinance Only): Loans will be arranged or made pursuant to a California Financing Law License. Contact Us: 888-601-2801 Contact Us: 888-601-2801 © 2023 Earnest LLC. All rights reserved. |
Skip to content student-loans How Long Does It Take to Get a Student Loan? (Federal and Private) By Ted Vrountas Updated on December 19, 2023 No surprises. Pick your rate, term, and payment with Earnest. Learn More If you’re in the final stages of preparing for college, you might be wondering, “how long does it take to get a student loan?” Unfortunately, the answer isn’t so simple.
Between submitting your FAFSA and getting a federal student loan¹, both the federal government and your school need to process your information. On the other hand, a private student loan can be borrowed in as little as a few hours. Here’s what you need to know about when to apply for student loans.
Key takeaways Generally, getting a federal student loan can take anywhere between a few weeks and a few months
Getting a private student loan can generally take a few hours to a few weeks | How Long Does It Take to Get a Student Loan? (Federal and Private) Earnest Blog | https://www.earnest.com/blog/how-long-does-it-take-to-get-a-student-loan/ | ###Instruction Tell me about:
How Long Does It Take to Get a Student Loan? (Federal and Private) Earnest Blog
from web page:
https://www.earnest.com/blog/how-long-does-it-take-to-get-a-student-loan/
###Response
Skip to content student-loans How Long Does It Take to Get a Student Loan? (Federal and Private) By Ted Vrountas Updated on December 19, 2023 No surprises. Pick your rate, term, and payment with Earnest. Learn More If you’re in the final stages of preparing for college, you might be wondering, “how long does it take to get a student loan?” Unfortunately, the answer isn’t so simple.
Between submitting your FAFSA and getting a federal student loan¹, both the federal government and your school need to process your information. On the other hand, a private student loan can be borrowed in as little as a few hours. Here’s what you need to know about when to apply for student loans.
Key takeaways Generally, getting a federal student loan can take anywhere between a few weeks and a few months
Getting a private student loan can generally take a few hours to a few weeks |
Getting a private student loan can generally take a few hours to a few weeks
You should always apply for federal loans first because they have more flexible repayment options and opportunities for forgiveness
Federal loans have borrowing limits, so if you can’t cover the full cost of attendance with their help, you can use private student loans to make up the difference How long does it take to get a student loan?
How long it takes to get a student loan will vary based on whether it’s private or federal. Here are some timelines for each.
Federal student loans
Generally, getting a federal student loan can take from a few weeks to a few months to go from application to disbursement. The process typically involves the following steps: Complete the Free Application for Federal Student Aid (FAFSA) online at fafsa.gov. This application determines your eligibility for federal student aid, including loans. | How Long Does It Take to Get a Student Loan? (Federal and Private) Earnest Blog | https://www.earnest.com/blog/how-long-does-it-take-to-get-a-student-loan/ | ###Instruction Tell me about:
How Long Does It Take to Get a Student Loan? (Federal and Private) Earnest Blog
from web page:
https://www.earnest.com/blog/how-long-does-it-take-to-get-a-student-loan/
###Response
Getting a private student loan can generally take a few hours to a few weeks
You should always apply for federal loans first because they have more flexible repayment options and opportunities for forgiveness
Federal loans have borrowing limits, so if you can’t cover the full cost of attendance with their help, you can use private student loans to make up the difference How long does it take to get a student loan?
How long it takes to get a student loan will vary based on whether it’s private or federal. Here are some timelines for each.
Federal student loans
Generally, getting a federal student loan can take from a few weeks to a few months to go from application to disbursement. The process typically involves the following steps: Complete the Free Application for Federal Student Aid (FAFSA) online at fafsa.gov. This application determines your eligibility for federal student aid, including loans. |
The FAFSA will then be processed by the Department of Education, which will send you a Student Aid Report (SAR) that summarizes your financial aid eligibility.
Your school’s financial aid office will use your SAR to determine your eligibility for federal student loans and other forms of aid and will send you an award letter outlining the types and amounts of aid you are eligible for.
If you decide to accept a federal student loan, you will need to complete entrance counseling and sign a Master Promissory Note (MPN), which is a legal document that outlines the terms and conditions of the loan. | How Long Does It Take to Get a Student Loan? (Federal and Private) Earnest Blog | https://www.earnest.com/blog/how-long-does-it-take-to-get-a-student-loan/ | ###Instruction Tell me about:
How Long Does It Take to Get a Student Loan? (Federal and Private) Earnest Blog
from web page:
https://www.earnest.com/blog/how-long-does-it-take-to-get-a-student-loan/
###Response
The FAFSA will then be processed by the Department of Education, which will send you a Student Aid Report (SAR) that summarizes your financial aid eligibility.
Your school’s financial aid office will use your SAR to determine your eligibility for federal student loans and other forms of aid and will send you an award letter outlining the types and amounts of aid you are eligible for.
If you decide to accept a federal student loan, you will need to complete entrance counseling and sign a Master Promissory Note (MPN), which is a legal document that outlines the terms and conditions of the loan. |
Your school will then disburse the loan funds directly to your account to pay for your educational expenses. It’s important to note that the specific process for getting a federal student loan can vary depending on the type of loan you are applying for and your individual circumstances. Your school’s financial aid office can provide more detailed information about the process and answer any questions you may have.
Private student loans
Private student loans can be approved in as little as a few hours to two weeks. Typically it will take around 1-2 weeks to receive the funds after approval, though it may be longer depending on the lender and the type of loan you choose. | How Long Does It Take to Get a Student Loan? (Federal and Private) Earnest Blog | https://www.earnest.com/blog/how-long-does-it-take-to-get-a-student-loan/ | ###Instruction Tell me about:
How Long Does It Take to Get a Student Loan? (Federal and Private) Earnest Blog
from web page:
https://www.earnest.com/blog/how-long-does-it-take-to-get-a-student-loan/
###Response
Your school will then disburse the loan funds directly to your account to pay for your educational expenses. It’s important to note that the specific process for getting a federal student loan can vary depending on the type of loan you are applying for and your individual circumstances. Your school’s financial aid office can provide more detailed information about the process and answer any questions you may have.
Private student loans
Private student loans can be approved in as little as a few hours to two weeks. Typically it will take around 1-2 weeks to receive the funds after approval, though it may be longer depending on the lender and the type of loan you choose. |
To get a private student loan, you need to apply directly through a non-federal lender such as a bank, credit union, or online-only entity, and meet their borrowing requirements. The application process typically requires your Social Security number, financial forms, employment information, and the desired loan amount. If you have a cosigner, you’ll have to provide their information as well. It’s important to note that many private student loans require a minimum income or credit score, so borrowers should be prepared for a credit check and application process.
Once you’ve completed this, you’ll be notified by the lender whether you’re approved and when you can expect to see the funds. Some lenders may require you to pay your school with the funds, though most will pay them directly.
When should I apply for student loans? | How Long Does It Take to Get a Student Loan? (Federal and Private) Earnest Blog | https://www.earnest.com/blog/how-long-does-it-take-to-get-a-student-loan/ | ###Instruction Tell me about:
How Long Does It Take to Get a Student Loan? (Federal and Private) Earnest Blog
from web page:
https://www.earnest.com/blog/how-long-does-it-take-to-get-a-student-loan/
###Response
To get a private student loan, you need to apply directly through a non-federal lender such as a bank, credit union, or online-only entity, and meet their borrowing requirements. The application process typically requires your Social Security number, financial forms, employment information, and the desired loan amount. If you have a cosigner, you’ll have to provide their information as well. It’s important to note that many private student loans require a minimum income or credit score, so borrowers should be prepared for a credit check and application process.
Once you’ve completed this, you’ll be notified by the lender whether you’re approved and when you can expect to see the funds. Some lenders may require you to pay your school with the funds, though most will pay them directly.
When should I apply for student loans? |
When should I apply for student loans?
Your first step to getting approved for federal student loans is filling out your FAFSA. This will determine how much, and what kind, of federal aid you’re eligible for. The FAFSA usually opens on October 1 for the following academic year and closes on June 30. Try to submit your FAFSA as early as possible, because some federal aid programs are first-come-first-served. Keep in mind that in some cases, your state or school may require you to apply even earlier. Double-check FAFSA deadlines for your state or call your school’s financial aid office to confirm.
For private student loans, there’s no deadline, but your lender needs to have time to disburse the funds. When the process can take a few hours to a few weeks, you should give yourself a month at minimum.
How much can I get in student loans? | How Long Does It Take to Get a Student Loan? (Federal and Private) Earnest Blog | https://www.earnest.com/blog/how-long-does-it-take-to-get-a-student-loan/ | ###Instruction Tell me about:
How Long Does It Take to Get a Student Loan? (Federal and Private) Earnest Blog
from web page:
https://www.earnest.com/blog/how-long-does-it-take-to-get-a-student-loan/
###Response
When should I apply for student loans?
Your first step to getting approved for federal student loans is filling out your FAFSA. This will determine how much, and what kind, of federal aid you’re eligible for. The FAFSA usually opens on October 1 for the following academic year and closes on June 30. Try to submit your FAFSA as early as possible, because some federal aid programs are first-come-first-served. Keep in mind that in some cases, your state or school may require you to apply even earlier. Double-check FAFSA deadlines for your state or call your school’s financial aid office to confirm.
For private student loans, there’s no deadline, but your lender needs to have time to disburse the funds. When the process can take a few hours to a few weeks, you should give yourself a month at minimum.
How much can I get in student loans? |
How much can I get in student loans?
The amount you can borrow in student loans varies based on your financial need. You won’t know how much you can get until you submit your FAFSA and receive your award letter. That said, there are limits to how much you can take out in federal loans, regardless of need.
Borrowing limits Direct Subsidized Loans
Direct Subsidized loans are offered to undergraduate students based on financial need. While you’re in school at least half-time, during the six-month grace period, and during deferment, the government pays the interest on these loans. Over the course of your college career, the maximum amount you can borrow in Direct Subsidized Loans is $23,000. Here are the annual loan limits based on your year in school: First-year students: $3,500 per year
Second-year students: $4,500 per year
Third-year students and up: $5,500 per year Borrowing limits for Direct Unsubsidized Loans | How Long Does It Take to Get a Student Loan? (Federal and Private) Earnest Blog | https://www.earnest.com/blog/how-long-does-it-take-to-get-a-student-loan/ | ###Instruction Tell me about:
How Long Does It Take to Get a Student Loan? (Federal and Private) Earnest Blog
from web page:
https://www.earnest.com/blog/how-long-does-it-take-to-get-a-student-loan/
###Response
How much can I get in student loans?
The amount you can borrow in student loans varies based on your financial need. You won’t know how much you can get until you submit your FAFSA and receive your award letter. That said, there are limits to how much you can take out in federal loans, regardless of need.
Borrowing limits Direct Subsidized Loans
Direct Subsidized loans are offered to undergraduate students based on financial need. While you’re in school at least half-time, during the six-month grace period, and during deferment, the government pays the interest on these loans. Over the course of your college career, the maximum amount you can borrow in Direct Subsidized Loans is $23,000. Here are the annual loan limits based on your year in school: First-year students: $3,500 per year
Second-year students: $4,500 per year
Third-year students and up: $5,500 per year Borrowing limits for Direct Unsubsidized Loans |
Third-year students and up: $5,500 per year Borrowing limits for Direct Unsubsidized Loans
Direct Unsubsidized loans can be borrowed by both graduate and undergraduate students. Unlike Direct Subsidized Loans, the government does not pay the interest on these loans while you’re in school. The maximum amount you can borrow is based on whether you’re a dependent or independent student.
Dependent student limits: First-year undergraduate: $5,500
Second-year undergraduate: $6,500
Third-year undergraduate and up: $7,500 Independent student limits: First-year undergraduate: $9,500
Second-year undergraduate: $10,500
Third-year undergraduate and up: $12,500
Graduate or professional: $20,500 Borrowing Limits for Direct PLUS Loans | How Long Does It Take to Get a Student Loan? (Federal and Private) Earnest Blog | https://www.earnest.com/blog/how-long-does-it-take-to-get-a-student-loan/ | ###Instruction Tell me about:
How Long Does It Take to Get a Student Loan? (Federal and Private) Earnest Blog
from web page:
https://www.earnest.com/blog/how-long-does-it-take-to-get-a-student-loan/
###Response
Third-year students and up: $5,500 per year Borrowing limits for Direct Unsubsidized Loans
Direct Unsubsidized loans can be borrowed by both graduate and undergraduate students. Unlike Direct Subsidized Loans, the government does not pay the interest on these loans while you’re in school. The maximum amount you can borrow is based on whether you’re a dependent or independent student.
Dependent student limits: First-year undergraduate: $5,500
Second-year undergraduate: $6,500
Third-year undergraduate and up: $7,500 Independent student limits: First-year undergraduate: $9,500
Second-year undergraduate: $10,500
Third-year undergraduate and up: $12,500
Graduate or professional: $20,500 Borrowing Limits for Direct PLUS Loans |
Graduate or professional: $20,500 Borrowing Limits for Direct PLUS Loans
Direct PLUS Loans are available to a few different types of borrowers. There’s the Grad PLUS Loan that’s available to grads and professional students, and the Parent PLUS Loan that parents of dependents students are eligible for. These can be used to cover the full cost of attendance, and there are no annual borrowing limits like the loans above.
Should I take out federal or private student loans?
Generally, you should always try to take out as much as you can in federal loans before you take out private student loans. That’s because federal loans offer many repayment options, opportunities for forgiveness, and protections for hardship. For example: Federal student loans have deferment and forbearance options, which allow you to pause your payments in periods of difficulty. Private lenders may offer these, but they are not required to. | How Long Does It Take to Get a Student Loan? (Federal and Private) Earnest Blog | https://www.earnest.com/blog/how-long-does-it-take-to-get-a-student-loan/ | ###Instruction Tell me about:
How Long Does It Take to Get a Student Loan? (Federal and Private) Earnest Blog
from web page:
https://www.earnest.com/blog/how-long-does-it-take-to-get-a-student-loan/
###Response
Graduate or professional: $20,500 Borrowing Limits for Direct PLUS Loans
Direct PLUS Loans are available to a few different types of borrowers. There’s the Grad PLUS Loan that’s available to grads and professional students, and the Parent PLUS Loan that parents of dependents students are eligible for. These can be used to cover the full cost of attendance, and there are no annual borrowing limits like the loans above.
Should I take out federal or private student loans?
Generally, you should always try to take out as much as you can in federal loans before you take out private student loans. That’s because federal loans offer many repayment options, opportunities for forgiveness, and protections for hardship. For example: Federal student loans have deferment and forbearance options, which allow you to pause your payments in periods of difficulty. Private lenders may offer these, but they are not required to. |
Federal student loans offer payment plans based on your income, called Income-Driven Repayment, that allow you to repay your loan based on how much you earn.
Federal student loans are always fixed-rate, while private lenders may offer rates that change with the market (variable-rate loans).
Federal student loan rates are set by the federal government, and borrowers, no matter their credit, are offered the same fixed rate. Private student loan rates are based on creditworthiness, and most borrowers require a cosigner.
Federal student loans offer forgiveness options through Public Service Loan Forgiveness and Income-Driven Repayment Plans, while private loans do not. | How Long Does It Take to Get a Student Loan? (Federal and Private) Earnest Blog | https://www.earnest.com/blog/how-long-does-it-take-to-get-a-student-loan/ | ###Instruction Tell me about:
How Long Does It Take to Get a Student Loan? (Federal and Private) Earnest Blog
from web page:
https://www.earnest.com/blog/how-long-does-it-take-to-get-a-student-loan/
###Response
Federal student loans offer payment plans based on your income, called Income-Driven Repayment, that allow you to repay your loan based on how much you earn.
Federal student loans are always fixed-rate, while private lenders may offer rates that change with the market (variable-rate loans).
Federal student loan rates are set by the federal government, and borrowers, no matter their credit, are offered the same fixed rate. Private student loan rates are based on creditworthiness, and most borrowers require a cosigner.
Federal student loans offer forgiveness options through Public Service Loan Forgiveness and Income-Driven Repayment Plans, while private loans do not. |
Federal student loans are also eligible for widespread relief like the Biden-Harris debt relief plan, and the COVID emergency relief. Private loans are not eligible for any of these options. Of course, there are limits on federal student borrowing, and if you aren’t offered enough aid by your school, you may have no choice but to turn to private student loans. Before you do, there are also other options to consider, like: Writing a financial aid appeal letter
Considering Parent PLUS loans
Applying for scholarships and grants
Attending an in-state, public school
Starting at community college and transferring
Getting a part-time job
Using retirement funds to pay for college
Paying for school with a HELOC How can I check the status of my student loan? | How Long Does It Take to Get a Student Loan? (Federal and Private) Earnest Blog | https://www.earnest.com/blog/how-long-does-it-take-to-get-a-student-loan/ | ###Instruction Tell me about:
How Long Does It Take to Get a Student Loan? (Federal and Private) Earnest Blog
from web page:
https://www.earnest.com/blog/how-long-does-it-take-to-get-a-student-loan/
###Response
Federal student loans are also eligible for widespread relief like the Biden-Harris debt relief plan, and the COVID emergency relief. Private loans are not eligible for any of these options. Of course, there are limits on federal student borrowing, and if you aren’t offered enough aid by your school, you may have no choice but to turn to private student loans. Before you do, there are also other options to consider, like: Writing a financial aid appeal letter
Considering Parent PLUS loans
Applying for scholarships and grants
Attending an in-state, public school
Starting at community college and transferring
Getting a part-time job
Using retirement funds to pay for college
Paying for school with a HELOC How can I check the status of my student loan? |
Paying for school with a HELOC How can I check the status of my student loan?
You can check the status of your FAFSA online or by phone. To check online, first log in to fafsa.gov. Next, select whether you’re a student, parent, or preparer. After you hit “continue,” you should see the “My FAFSA” page if you’ve started or submitted a FAFSA. Here, you can see the status of your FAFSA regardless of whether you submitted it online or by mail. If you submitted by mail, you’ll need to wait around 7-10 days for it to be processed before you can check its status.
Learn more about Earnest private student loans | How Long Does It Take to Get a Student Loan? (Federal and Private) Earnest Blog | https://www.earnest.com/blog/how-long-does-it-take-to-get-a-student-loan/ | ###Instruction Tell me about:
How Long Does It Take to Get a Student Loan? (Federal and Private) Earnest Blog
from web page:
https://www.earnest.com/blog/how-long-does-it-take-to-get-a-student-loan/
###Response
Paying for school with a HELOC How can I check the status of my student loan?
You can check the status of your FAFSA online or by phone. To check online, first log in to fafsa.gov. Next, select whether you’re a student, parent, or preparer. After you hit “continue,” you should see the “My FAFSA” page if you’ve started or submitted a FAFSA. Here, you can see the status of your FAFSA regardless of whether you submitted it online or by mail. If you submitted by mail, you’ll need to wait around 7-10 days for it to be processed before you can check its status.
Learn more about Earnest private student loans |
Are you trying to fill the gap between financial aid and college expenses? Earnest offers flexible terms, no fees, and a 9-month grace period² compared to the 6-month grace period offered by other lenders. Find out what your student loan payments could look like with our free student loan calculator and visit our private student loans page for the latest interest rates. Want to save thousands on student loans? A cosigner could help. Learn More Ted Vrountas Ted Vrountas is a freelance content manager with more than a decade of experience. In addition to managing a team of writers, he writes and edits content on personal finance topics like student loans, refinancing, debt consolidation, and money management. His goal is to help readers create a future where they don't have to stress about finances. Disclaimer: This blog post provides personal finance educational information, and it is not intended to provide legal, financial, or tax advice. Information in this blog is subject to change. For current rates, please visit www.earnest.com. 1 Before applying for private student loans, it’s best to maximize your other sources of financial aid first. It’s recommended to use a | How Long Does It Take to Get a Student Loan? (Federal and Private) Earnest Blog | https://www.earnest.com/blog/how-long-does-it-take-to-get-a-student-loan/ | ###Instruction Tell me about:
How Long Does It Take to Get a Student Loan? (Federal and Private) Earnest Blog
from web page:
https://www.earnest.com/blog/how-long-does-it-take-to-get-a-student-loan/
###Response
Are you trying to fill the gap between financial aid and college expenses? Earnest offers flexible terms, no fees, and a 9-month grace period² compared to the 6-month grace period offered by other lenders. Find out what your student loan payments could look like with our free student loan calculator and visit our private student loans page for the latest interest rates. Want to save thousands on student loans? A cosigner could help. Learn More Ted Vrountas Ted Vrountas is a freelance content manager with more than a decade of experience. In addition to managing a team of writers, he writes and edits content on personal finance topics like student loans, refinancing, debt consolidation, and money management. His goal is to help readers create a future where they don't have to stress about finances. Disclaimer: This blog post provides personal finance educational information, and it is not intended to provide legal, financial, or tax advice. Information in this blog is subject to change. For current rates, please visit www.earnest.com. 1 Before applying for private student loans, it’s best to maximize your other sources of financial aid first. It’s recommended to use a |
for private student loans, it’s best to maximize your other sources of financial aid first. It’s recommended to use a 3-step approach to assembling the funds you need: 1) Look for funds you don’t have to pay back, like scholarships, grant, and work-study opportunities. 2) Next, fill out a FAFSA(R) form to apply for federal student loans. Federal Direct subsidized and unsubsidized loans, excluding PLUS Loan for Parents and PLUS Loan for Graduate and Professional Students which require a credit check and a credit worthy endorser if the parent or graduate or professional student has adverse credit, do not require a credit check or cosigner, and offer various protections if your struggling with your payments. 3) Finally, consider a private student loan to cover any difference between your total cost of attendance and the amount not covered in steps 1 and 2. For more information, visit the Department of Education website at https://studentaid.ed.gov. 2 Nine-month grace period is not available for borrowers who choose our Principal and Interest Repayment plan while in school. Let us do the math Use our calculators to aggregate multiple student loans or preview your potential | How Long Does It Take to Get a Student Loan? (Federal and Private) Earnest Blog | https://www.earnest.com/blog/how-long-does-it-take-to-get-a-student-loan/ | ###Instruction Tell me about:
How Long Does It Take to Get a Student Loan? (Federal and Private) Earnest Blog
from web page:
https://www.earnest.com/blog/how-long-does-it-take-to-get-a-student-loan/
###Response
for private student loans, it’s best to maximize your other sources of financial aid first. It’s recommended to use a 3-step approach to assembling the funds you need: 1) Look for funds you don’t have to pay back, like scholarships, grant, and work-study opportunities. 2) Next, fill out a FAFSA(R) form to apply for federal student loans. Federal Direct subsidized and unsubsidized loans, excluding PLUS Loan for Parents and PLUS Loan for Graduate and Professional Students which require a credit check and a credit worthy endorser if the parent or graduate or professional student has adverse credit, do not require a credit check or cosigner, and offer various protections if your struggling with your payments. 3) Finally, consider a private student loan to cover any difference between your total cost of attendance and the amount not covered in steps 1 and 2. For more information, visit the Department of Education website at https://studentaid.ed.gov. 2 Nine-month grace period is not available for borrowers who choose our Principal and Interest Repayment plan while in school. Let us do the math Use our calculators to aggregate multiple student loans or preview your potential |
while in school. Let us do the math Use our calculators to aggregate multiple student loans or preview your potential savings from refinancing with Earnest. I want to Refi my student loan Consolidate my student loans Current Loan Balance Next: Add Your New Loan Related Articles Should You Go to College? 11 Pros & Cons 14 min. read What’s the Best Pre-Med Major? 13 min. read Federal Student Loan Forgiveness Update and How to Prepare for Payments 8 min. read Earnest Loans are made by Earnest Operations LLC or One American Bank, Member FDIC, or FinWise Bank, Member FDIC:. Earnest Operations LLC NMLS #1204917 nmlsconsumeraccess.org List of licensed states 535 Mission St., Suite 1663, San Francisco, CA 94105 One American Bank 515 S. Minnesota Ave Sioux Falls, SD 57104 FinWise Bank, Member FDIC 756 East Winchester Suite 100 Murray, UT 84107 Earnest loans are serviced by Earnest Operations LLC (NMLS #1204917) with support from Navient Solutions, LLC (NMLS #212430). One American Bank, FinWise Bank, and Earnest LLC and its subsidiaries, including Earnest Operations LLC, are not sponsored by or agencies of the United States of America. For California residents (Student Loan | How Long Does It Take to Get a Student Loan? (Federal and Private) Earnest Blog | https://www.earnest.com/blog/how-long-does-it-take-to-get-a-student-loan/ | ###Instruction Tell me about:
How Long Does It Take to Get a Student Loan? (Federal and Private) Earnest Blog
from web page:
https://www.earnest.com/blog/how-long-does-it-take-to-get-a-student-loan/
###Response
while in school. Let us do the math Use our calculators to aggregate multiple student loans or preview your potential savings from refinancing with Earnest. I want to Refi my student loan Consolidate my student loans Current Loan Balance Next: Add Your New Loan Related Articles Should You Go to College? 11 Pros & Cons 14 min. read What’s the Best Pre-Med Major? 13 min. read Federal Student Loan Forgiveness Update and How to Prepare for Payments 8 min. read Earnest Loans are made by Earnest Operations LLC or One American Bank, Member FDIC, or FinWise Bank, Member FDIC:. Earnest Operations LLC NMLS #1204917 nmlsconsumeraccess.org List of licensed states 535 Mission St., Suite 1663, San Francisco, CA 94105 One American Bank 515 S. Minnesota Ave Sioux Falls, SD 57104 FinWise Bank, Member FDIC 756 East Winchester Suite 100 Murray, UT 84107 Earnest loans are serviced by Earnest Operations LLC (NMLS #1204917) with support from Navient Solutions, LLC (NMLS #212430). One American Bank, FinWise Bank, and Earnest LLC and its subsidiaries, including Earnest Operations LLC, are not sponsored by or agencies of the United States of America. For California residents (Student Loan |
LLC, are not sponsored by or agencies of the United States of America. For California residents (Student Loan Refinance Only): Loans will be arranged or made pursuant to a California Financing Law License. Contact Us: 888-601-2801 Contact Us: 888-601-2801 © 2023 Earnest LLC. All rights reserved. | How Long Does It Take to Get a Student Loan? (Federal and Private) Earnest Blog | https://www.earnest.com/blog/how-long-does-it-take-to-get-a-student-loan/ | ###Instruction Tell me about:
How Long Does It Take to Get a Student Loan? (Federal and Private) Earnest Blog
from web page:
https://www.earnest.com/blog/how-long-does-it-take-to-get-a-student-loan/
###Response
LLC, are not sponsored by or agencies of the United States of America. For California residents (Student Loan Refinance Only): Loans will be arranged or made pursuant to a California Financing Law License. Contact Us: 888-601-2801 Contact Us: 888-601-2801 © 2023 Earnest LLC. All rights reserved. |
Skip to content student-loans 9 Common Mistakes When Borrowing Undergraduate Student Loans By Kassondra Cloos Updated on December 19, 2023 It's never too early to look into your student loan options Learn More The process of getting student loans for undergraduate study can be complicated. And when taking on debt is involved, the stakes are high. Just a few small errors could end up costing you thousands of dollars in the long run. If you’re applying for undergraduate student loans, here are nine common mistakes to avoid.
Not filling out your FAFSA ASAP
The more you receive in financial aid, the less in loans you need to borrow. That’s where the FAFSA (Free Application for Federal Student Aid) comes in. | 9 Common Mistakes When Borrowing Undergraduate Student Loans - Earnest Blog | https://www.earnest.com/blog/student-loans-undergraduate/ | ###Instruction Tell me about:
9 Common Mistakes When Borrowing Undergraduate Student Loans - Earnest Blog
from web page:
https://www.earnest.com/blog/student-loans-undergraduate/
###Response
Skip to content student-loans 9 Common Mistakes When Borrowing Undergraduate Student Loans By Kassondra Cloos Updated on December 19, 2023 It's never too early to look into your student loan options Learn More The process of getting student loans for undergraduate study can be complicated. And when taking on debt is involved, the stakes are high. Just a few small errors could end up costing you thousands of dollars in the long run. If you’re applying for undergraduate student loans, here are nine common mistakes to avoid.
Not filling out your FAFSA ASAP
The more you receive in financial aid, the less in loans you need to borrow. That’s where the FAFSA (Free Application for Federal Student Aid) comes in. |
Filling out your FAFSA is the first step to determining how much the federal government can offer you in financial aid based on your family income, the school you’re going to, and other factors. Since financial aid is money you don’t have to pay back — like grants, scholarships, and work-study awards — this should be completed before you consider taking out any loans for college. Depending on your financial need and which school you choose to attend, you may be able to have nearly all of your college costs covered by grants you don’t have to pay back.
The FAFSA is also your first step to borrowing federal student loans. So once you know how much you’re eligible to receive in financial aid, your SAR (Student Aid Report) will also tell you how much you’re eligible to borrow in federal student loans. The FAFSA opens every year on October first and generally closes on June 30, but the deadline may vary depending on the state and institution you’re applying to. | 9 Common Mistakes When Borrowing Undergraduate Student Loans - Earnest Blog | https://www.earnest.com/blog/student-loans-undergraduate/ | ###Instruction Tell me about:
9 Common Mistakes When Borrowing Undergraduate Student Loans - Earnest Blog
from web page:
https://www.earnest.com/blog/student-loans-undergraduate/
###Response
Filling out your FAFSA is the first step to determining how much the federal government can offer you in financial aid based on your family income, the school you’re going to, and other factors. Since financial aid is money you don’t have to pay back — like grants, scholarships, and work-study awards — this should be completed before you consider taking out any loans for college. Depending on your financial need and which school you choose to attend, you may be able to have nearly all of your college costs covered by grants you don’t have to pay back.
The FAFSA is also your first step to borrowing federal student loans. So once you know how much you’re eligible to receive in financial aid, your SAR (Student Aid Report) will also tell you how much you’re eligible to borrow in federal student loans. The FAFSA opens every year on October first and generally closes on June 30, but the deadline may vary depending on the state and institution you’re applying to. |
Regardless, it’s a good idea to get this form in as soon as possible, since some aid is offered on a first-come first-served basis. Contact your school’s financial aid office to find out about any opportunities for additional need-based aid you may not be aware of.
Borrowing private student loans first
While private student loans can offer attractive interest rates for people with the highest credit scores, you should always max out federal loans available to you before you borrow private loans¹. This is because federal student loans from the U.S. Department of Education offer protections and flexible repayment options (like income-driven repayment) for borrowers that private lenders may not offer. To name just a few of the perks of federal loans: You’ll be protected in the event your school closes down: If you’re not able to finish studying because your school closes down for some reason, you won’t be on the hook to pay back your student loans. | 9 Common Mistakes When Borrowing Undergraduate Student Loans - Earnest Blog | https://www.earnest.com/blog/student-loans-undergraduate/ | ###Instruction Tell me about:
9 Common Mistakes When Borrowing Undergraduate Student Loans - Earnest Blog
from web page:
https://www.earnest.com/blog/student-loans-undergraduate/
###Response
Regardless, it’s a good idea to get this form in as soon as possible, since some aid is offered on a first-come first-served basis. Contact your school’s financial aid office to find out about any opportunities for additional need-based aid you may not be aware of.
Borrowing private student loans first
While private student loans can offer attractive interest rates for people with the highest credit scores, you should always max out federal loans available to you before you borrow private loans¹. This is because federal student loans from the U.S. Department of Education offer protections and flexible repayment options (like income-driven repayment) for borrowers that private lenders may not offer. To name just a few of the perks of federal loans: You’ll be protected in the event your school closes down: If you’re not able to finish studying because your school closes down for some reason, you won’t be on the hook to pay back your student loans. |
You’ll have access to flexible loan repayment plans: Federal student loan borrowers can apply to reduce their minimum required monthly payments so that they’re not paying more than they can afford.
Usually, you don’t need to go through a credit check: Unlike loans from private lenders, the application process for federal loans usually doesn’t require a credit check or minimum credit score, as long as you’re a student applying for yourself. Essentially all undergraduate and graduate students who are U.S. citizens or permanent residents may be eligible for a federal loan. Parents and guardians applying for Direct PLUS loans for dependent undergraduate students, and graduate and professional students applying for PLUS loans, have to undergo a credit check to make sure there are no adverse marks on their credit history. Borrowers with adverse credit history will need to meet additional requirements to qualify. | 9 Common Mistakes When Borrowing Undergraduate Student Loans - Earnest Blog | https://www.earnest.com/blog/student-loans-undergraduate/ | ###Instruction Tell me about:
9 Common Mistakes When Borrowing Undergraduate Student Loans - Earnest Blog
from web page:
https://www.earnest.com/blog/student-loans-undergraduate/
###Response
You’ll have access to flexible loan repayment plans: Federal student loan borrowers can apply to reduce their minimum required monthly payments so that they’re not paying more than they can afford.
Usually, you don’t need to go through a credit check: Unlike loans from private lenders, the application process for federal loans usually doesn’t require a credit check or minimum credit score, as long as you’re a student applying for yourself. Essentially all undergraduate and graduate students who are U.S. citizens or permanent residents may be eligible for a federal loan. Parents and guardians applying for Direct PLUS loans for dependent undergraduate students, and graduate and professional students applying for PLUS loans, have to undergo a credit check to make sure there are no adverse marks on their credit history. Borrowers with adverse credit history will need to meet additional requirements to qualify. |
If you get subsidized Federal Direct Loans, interest won’t accrue during your studies: As long as your enrollment is at least half-time, interest won’t start accruing until after the end of your grace period. (Direct unsubsidized loans start accruing interest immediately after disbursement.)
You may be eligible for student loan forgiveness: There are several ways to qualify for student loan forgiveness, but only for student loan debt borrowed from the government. If you get a job in a qualifying public service career, you may be able to get the remainder of your loans canceled after you meet eligibility requirements, including making 120 on-time payments. You may also be able to get the remainder of your loans canceled or forgiven if you’re still making payments on undergraduate education loans after 20 years of repayment. | 9 Common Mistakes When Borrowing Undergraduate Student Loans - Earnest Blog | https://www.earnest.com/blog/student-loans-undergraduate/ | ###Instruction Tell me about:
9 Common Mistakes When Borrowing Undergraduate Student Loans - Earnest Blog
from web page:
https://www.earnest.com/blog/student-loans-undergraduate/
###Response
If you get subsidized Federal Direct Loans, interest won’t accrue during your studies: As long as your enrollment is at least half-time, interest won’t start accruing until after the end of your grace period. (Direct unsubsidized loans start accruing interest immediately after disbursement.)
You may be eligible for student loan forgiveness: There are several ways to qualify for student loan forgiveness, but only for student loan debt borrowed from the government. If you get a job in a qualifying public service career, you may be able to get the remainder of your loans canceled after you meet eligibility requirements, including making 120 on-time payments. You may also be able to get the remainder of your loans canceled or forgiven if you’re still making payments on undergraduate education loans after 20 years of repayment. |
The Department of Education makes sure you understand what you’re getting into: You’ll have to participate in some financial literacy training before you sign your promissory note for any kind of loan options from the government, including Direct Plus Loans and Parent Plus Loans. These online programs will make sure you fully understand the debt you’re taking on. They’ll help you understand what happens after your final academic year and what your repayment options will be for the loan program of your choice. Not calculating interest
Regardless of whether you’re a dependent undergraduate student seeking a student loan or a mid-career professional seeking a business loan, you should always understand the total cost of your loan before you go through with a loan application. Depending on your interest rate and repayment terms, a $10,000 loan could easily become $18,000 to $20,000 or more over time. | 9 Common Mistakes When Borrowing Undergraduate Student Loans - Earnest Blog | https://www.earnest.com/blog/student-loans-undergraduate/ | ###Instruction Tell me about:
9 Common Mistakes When Borrowing Undergraduate Student Loans - Earnest Blog
from web page:
https://www.earnest.com/blog/student-loans-undergraduate/
###Response
The Department of Education makes sure you understand what you’re getting into: You’ll have to participate in some financial literacy training before you sign your promissory note for any kind of loan options from the government, including Direct Plus Loans and Parent Plus Loans. These online programs will make sure you fully understand the debt you’re taking on. They’ll help you understand what happens after your final academic year and what your repayment options will be for the loan program of your choice. Not calculating interest
Regardless of whether you’re a dependent undergraduate student seeking a student loan or a mid-career professional seeking a business loan, you should always understand the total cost of your loan before you go through with a loan application. Depending on your interest rate and repayment terms, a $10,000 loan could easily become $18,000 to $20,000 or more over time. |
It’s wise to spend some time calculating how you can reduce your overall loan cost. For example, if you make extra payments during the school year, or whenever you have the cash to spare, you can reduce your interest payments over time. Even just $10 per month adds up to over $1,000 over the span of a standard 10-year repayment plan.
Not paying attention to the loan type
It’s extremely important to understand what type of loan you’re borrowing. Loans with fixed interest rates do not change at all during the course of repayment, regardless of how the Federal Reserve may increase or decrease the prime rate. All federal loans have fixed rates, which are not impacted by your credit score. Loans with variable interest rates, however, may fluctuate significantly from the outset of your loan throughout the course of repayment. | 9 Common Mistakes When Borrowing Undergraduate Student Loans - Earnest Blog | https://www.earnest.com/blog/student-loans-undergraduate/ | ###Instruction Tell me about:
9 Common Mistakes When Borrowing Undergraduate Student Loans - Earnest Blog
from web page:
https://www.earnest.com/blog/student-loans-undergraduate/
###Response
It’s wise to spend some time calculating how you can reduce your overall loan cost. For example, if you make extra payments during the school year, or whenever you have the cash to spare, you can reduce your interest payments over time. Even just $10 per month adds up to over $1,000 over the span of a standard 10-year repayment plan.
Not paying attention to the loan type
It’s extremely important to understand what type of loan you’re borrowing. Loans with fixed interest rates do not change at all during the course of repayment, regardless of how the Federal Reserve may increase or decrease the prime rate. All federal loans have fixed rates, which are not impacted by your credit score. Loans with variable interest rates, however, may fluctuate significantly from the outset of your loan throughout the course of repayment. |
Because of this, variable rates are usually lower at the outset of a loan than fixed rates, but choosing them is a bit of a gamble. Earnest allows borrowers in good standing to apply to refinance² their loans again through Earnest after four months of consecutive on-time payments, so that you can switch from a variable rate to fixed or vice-versa if you’d like to.
This can be a great way to lower your loan interest rates if you’ve improved your credit history and increased your score from fair to good credit³. (Note that this will require a new loan application and a hard credit check, which could impact your credit score.)
Borrowing more than you need | 9 Common Mistakes When Borrowing Undergraduate Student Loans - Earnest Blog | https://www.earnest.com/blog/student-loans-undergraduate/ | ###Instruction Tell me about:
9 Common Mistakes When Borrowing Undergraduate Student Loans - Earnest Blog
from web page:
https://www.earnest.com/blog/student-loans-undergraduate/
###Response
Because of this, variable rates are usually lower at the outset of a loan than fixed rates, but choosing them is a bit of a gamble. Earnest allows borrowers in good standing to apply to refinance² their loans again through Earnest after four months of consecutive on-time payments, so that you can switch from a variable rate to fixed or vice-versa if you’d like to.
This can be a great way to lower your loan interest rates if you’ve improved your credit history and increased your score from fair to good credit³. (Note that this will require a new loan application and a hard credit check, which could impact your credit score.)
Borrowing more than you need |
Borrowing more than you need
You can borrow student loans to cover the full cost of college using either a mix of federal and private loans, or just one of the two. If you’re a dependent undergraduate student, you’ll be subject to aggregate loan limits for Direct Unsubsidized and Subsidized loans, but your parents may be able to borrow Parent Plus Loans on your behalf to fund the gap between what you’ve borrowed and what you need to pay.
That said, you should only borrow exactly as much as you need, and nothing more. If you have the option to work and save up a bit of money so you can put some cash toward your education, that will save you a lot of money over time. There are also lots of other ways to afford college without going into debt.
Not shopping around | 9 Common Mistakes When Borrowing Undergraduate Student Loans - Earnest Blog | https://www.earnest.com/blog/student-loans-undergraduate/ | ###Instruction Tell me about:
9 Common Mistakes When Borrowing Undergraduate Student Loans - Earnest Blog
from web page:
https://www.earnest.com/blog/student-loans-undergraduate/
###Response
Borrowing more than you need
You can borrow student loans to cover the full cost of college using either a mix of federal and private loans, or just one of the two. If you’re a dependent undergraduate student, you’ll be subject to aggregate loan limits for Direct Unsubsidized and Subsidized loans, but your parents may be able to borrow Parent Plus Loans on your behalf to fund the gap between what you’ve borrowed and what you need to pay.
That said, you should only borrow exactly as much as you need, and nothing more. If you have the option to work and save up a bit of money so you can put some cash toward your education, that will save you a lot of money over time. There are also lots of other ways to afford college without going into debt.
Not shopping around |
Not shopping around
You need to choose a lender you trust. After all, you’ll be with them for potentially up to 20 years of repayment. Shop around to compare rates and save money, and make sure to compare benefits, too. Earnest, for example, allows borrowers in good standing to request to skip a payment4 once per year if times get tough. And Earnest’s Client Happiness Team will take calls from all current and prospective borrowers to help you understand your options and chat through what makes Earnest different.
Not finding a creditworthy cosigner | 9 Common Mistakes When Borrowing Undergraduate Student Loans - Earnest Blog | https://www.earnest.com/blog/student-loans-undergraduate/ | ###Instruction Tell me about:
9 Common Mistakes When Borrowing Undergraduate Student Loans - Earnest Blog
from web page:
https://www.earnest.com/blog/student-loans-undergraduate/
###Response
Not shopping around
You need to choose a lender you trust. After all, you’ll be with them for potentially up to 20 years of repayment. Shop around to compare rates and save money, and make sure to compare benefits, too. Earnest, for example, allows borrowers in good standing to request to skip a payment4 once per year if times get tough. And Earnest’s Client Happiness Team will take calls from all current and prospective borrowers to help you understand your options and chat through what makes Earnest different.
Not finding a creditworthy cosigner |
Not finding a creditworthy cosigner
If you’re a current student or recent graduate, you may not have had time to build up a substantial credit history yet. So, your interest rates will be higher if you try to apply for a loan without a cosigner. A cosigner is someone with good credit who agrees to pay back your loan if you can’t. The higher their credit score, the better rates you’ll get. And even a small improvement in interest rate can translate to hundreds or even thousands of dollars saved over the life of the loan. Just beware that your cosigner’s credit score could be impacted if you can’t make payments on your loan, so you should be confident you’ll be able to pay back the debt before you ask someone to help you.
Not planning your repayment strategy | 9 Common Mistakes When Borrowing Undergraduate Student Loans - Earnest Blog | https://www.earnest.com/blog/student-loans-undergraduate/ | ###Instruction Tell me about:
9 Common Mistakes When Borrowing Undergraduate Student Loans - Earnest Blog
from web page:
https://www.earnest.com/blog/student-loans-undergraduate/
###Response
Not finding a creditworthy cosigner
If you’re a current student or recent graduate, you may not have had time to build up a substantial credit history yet. So, your interest rates will be higher if you try to apply for a loan without a cosigner. A cosigner is someone with good credit who agrees to pay back your loan if you can’t. The higher their credit score, the better rates you’ll get. And even a small improvement in interest rate can translate to hundreds or even thousands of dollars saved over the life of the loan. Just beware that your cosigner’s credit score could be impacted if you can’t make payments on your loan, so you should be confident you’ll be able to pay back the debt before you ask someone to help you.
Not planning your repayment strategy |
Not planning your repayment strategy
It’s extremely important to understand how you’re going to pay back your loans before you borrow them. If you don’t, you could end up in a bad situation where you have to seek deferment or forbearance to avoid defaulting on your loans. This will likely result in your loan accruing even more interest, and it could hurt your credit score, too.
Setting up auto-pay can save you from missing a payment—and get you a rate discount
If you have trouble keeping track of multiple payments and deadlines, setting up automatic payments can save you a lot of trouble. It can also save you money. Many lenders, including Earnest, will give you a small annual percentage rate “APR” discount (Earnest’s is .25% APR5) as a thank-you for signing up for auto-pay.
Consolidating can take some of the hassle out of making payments | 9 Common Mistakes When Borrowing Undergraduate Student Loans - Earnest Blog | https://www.earnest.com/blog/student-loans-undergraduate/ | ###Instruction Tell me about:
9 Common Mistakes When Borrowing Undergraduate Student Loans - Earnest Blog
from web page:
https://www.earnest.com/blog/student-loans-undergraduate/
###Response
Not planning your repayment strategy
It’s extremely important to understand how you’re going to pay back your loans before you borrow them. If you don’t, you could end up in a bad situation where you have to seek deferment or forbearance to avoid defaulting on your loans. This will likely result in your loan accruing even more interest, and it could hurt your credit score, too.
Setting up auto-pay can save you from missing a payment—and get you a rate discount
If you have trouble keeping track of multiple payments and deadlines, setting up automatic payments can save you a lot of trouble. It can also save you money. Many lenders, including Earnest, will give you a small annual percentage rate “APR” discount (Earnest’s is .25% APR5) as a thank-you for signing up for auto-pay.
Consolidating can take some of the hassle out of making payments |
Consolidating can take some of the hassle out of making payments
If you have federal student loans from multiple loan servicers, consolidation can bring all of them together so you have just one simple monthly payment. Unlike refinancing, consolidation won’t lower your interest rate. Your rate may actually increase slightly, as it will be a weighted average of your existing rates on each loan. However, consolidation may make it easier for you to keep track of bills and balances, which may save you money if you’ve missed payments in the past.
Explore potential jobs and careers to make a budget | 9 Common Mistakes When Borrowing Undergraduate Student Loans - Earnest Blog | https://www.earnest.com/blog/student-loans-undergraduate/ | ###Instruction Tell me about:
9 Common Mistakes When Borrowing Undergraduate Student Loans - Earnest Blog
from web page:
https://www.earnest.com/blog/student-loans-undergraduate/
###Response
Consolidating can take some of the hassle out of making payments
If you have federal student loans from multiple loan servicers, consolidation can bring all of them together so you have just one simple monthly payment. Unlike refinancing, consolidation won’t lower your interest rate. Your rate may actually increase slightly, as it will be a weighted average of your existing rates on each loan. However, consolidation may make it easier for you to keep track of bills and balances, which may save you money if you’ve missed payments in the past.
Explore potential jobs and careers to make a budget |
Explore potential jobs and careers to make a budget
It’s worth exploring careers in your field of interest to find out how much they typically pay a recent undergrad. Your actual salary may vary significantly, but this could help you formulate a sample budget for your life after higher education. You could live at home with your parents for a year or two after college to save money, or you may want to focus on finding a career that’s eligible for Public Service Loan Forgiveness.
Planning to refinance can be a great way to save money | 9 Common Mistakes When Borrowing Undergraduate Student Loans - Earnest Blog | https://www.earnest.com/blog/student-loans-undergraduate/ | ###Instruction Tell me about:
9 Common Mistakes When Borrowing Undergraduate Student Loans - Earnest Blog
from web page:
https://www.earnest.com/blog/student-loans-undergraduate/
###Response
Explore potential jobs and careers to make a budget
It’s worth exploring careers in your field of interest to find out how much they typically pay a recent undergrad. Your actual salary may vary significantly, but this could help you formulate a sample budget for your life after higher education. You could live at home with your parents for a year or two after college to save money, or you may want to focus on finding a career that’s eligible for Public Service Loan Forgiveness.
Planning to refinance can be a great way to save money |
Planning to refinance can be a great way to save money
While federal student loans have a lot of flexibility for borrowers, they also can have higher interest rates than private loans. You could refinance your loans after graduation through a credit union or other private lender, such as Earnest, which can save you a significant amount of money if you can get lower interest rates. To work on improving your credit score so you can get a good rate, start making small payments on your loans while you’re still in school and/or apply for a credit card to build your credit history. Just make sure you pay off those cards in full each month so you don’t end up with additional debt.
Read our FAQs about refinancing.
Not making payments during school | 9 Common Mistakes When Borrowing Undergraduate Student Loans - Earnest Blog | https://www.earnest.com/blog/student-loans-undergraduate/ | ###Instruction Tell me about:
9 Common Mistakes When Borrowing Undergraduate Student Loans - Earnest Blog
from web page:
https://www.earnest.com/blog/student-loans-undergraduate/
###Response
Planning to refinance can be a great way to save money
While federal student loans have a lot of flexibility for borrowers, they also can have higher interest rates than private loans. You could refinance your loans after graduation through a credit union or other private lender, such as Earnest, which can save you a significant amount of money if you can get lower interest rates. To work on improving your credit score so you can get a good rate, start making small payments on your loans while you’re still in school and/or apply for a credit card to build your credit history. Just make sure you pay off those cards in full each month so you don’t end up with additional debt.
Read our FAQs about refinancing.
Not making payments during school |
Read our FAQs about refinancing.
Not making payments during school
Unless you have Direct Subsidized Loan from the federal government, your loan will continue to accrue interest while you’re in school. Usually, even with private student loans, you’re not technically required to make any payments on your loan until after your grace period. But if you can manage to make interest-only payments, it’s wise to do so. That’s because of a concept known as “interest capitalization.”
Interest capitalization refers to a point in the loan borrowing process when accrued interest is added to the principal. This increases your loan balance, and then all future interest payments are calculated based on that new, higher balance.
How interest capitalizes post-graduation | 9 Common Mistakes When Borrowing Undergraduate Student Loans - Earnest Blog | https://www.earnest.com/blog/student-loans-undergraduate/ | ###Instruction Tell me about:
9 Common Mistakes When Borrowing Undergraduate Student Loans - Earnest Blog
from web page:
https://www.earnest.com/blog/student-loans-undergraduate/
###Response
Read our FAQs about refinancing.
Not making payments during school
Unless you have Direct Subsidized Loan from the federal government, your loan will continue to accrue interest while you’re in school. Usually, even with private student loans, you’re not technically required to make any payments on your loan until after your grace period. But if you can manage to make interest-only payments, it’s wise to do so. That’s because of a concept known as “interest capitalization.”
Interest capitalization refers to a point in the loan borrowing process when accrued interest is added to the principal. This increases your loan balance, and then all future interest payments are calculated based on that new, higher balance.
How interest capitalizes post-graduation |
How interest capitalizes post-graduation
Let’s say, for example, that you borrowed $10,000 in student loans for undergraduate study. If you make interest payments while you’re in school—just the interest, not including any extra money to go toward the principal balance—that loan will have a balance of $10,000 when you graduate. Once you start making your regular monthly payments, your outstanding loan amount will decrease as you pay down the principal. Interest only accrues on your principal balance, so you will eventually start noticing that you pay less interest each month on your remaining balance as your principal decreases.
If you don’t make interest payments while in school, however, all that interest will become part of your principal balance.
Learn more about Earnest student loans | 9 Common Mistakes When Borrowing Undergraduate Student Loans - Earnest Blog | https://www.earnest.com/blog/student-loans-undergraduate/ | ###Instruction Tell me about:
9 Common Mistakes When Borrowing Undergraduate Student Loans - Earnest Blog
from web page:
https://www.earnest.com/blog/student-loans-undergraduate/
###Response
How interest capitalizes post-graduation
Let’s say, for example, that you borrowed $10,000 in student loans for undergraduate study. If you make interest payments while you’re in school—just the interest, not including any extra money to go toward the principal balance—that loan will have a balance of $10,000 when you graduate. Once you start making your regular monthly payments, your outstanding loan amount will decrease as you pay down the principal. Interest only accrues on your principal balance, so you will eventually start noticing that you pay less interest each month on your remaining balance as your principal decreases.
If you don’t make interest payments while in school, however, all that interest will become part of your principal balance.
Learn more about Earnest student loans |
Are you trying to fill the gap between financial aid and college expenses? Earnest offers flexible loan terms, no prepayment or origination fees, and a 9-month grace period6 compared to the 6-month grace period offered by other lenders. Find out what your student loan payments could look like with our free student loan calculator, and for the latest interest rates visit our private student loans page. It's never too early to look into your student loan options Learn More Kassondra Cloos Kassondra Cloos is a writer, editor, and former Earnest client. She refinanced her own student loans with Earnest after graduating and has first-hand experience with the refinancing process. She has been writing about personal finance and student loans since 2017. She also writes about sustainable travel and adventure for The Guardian, Outside, Backpacker, and many other publications. You can find more of her work via her travel newsletter, Out of Office. Disclaimer: This blog post provides personal finance educational information, and it is not intended to provide legal, financial, or tax advice. 1 Before applying for private student loans, it’s best to maximize your other sources of | 9 Common Mistakes When Borrowing Undergraduate Student Loans - Earnest Blog | https://www.earnest.com/blog/student-loans-undergraduate/ | ###Instruction Tell me about:
9 Common Mistakes When Borrowing Undergraduate Student Loans - Earnest Blog
from web page:
https://www.earnest.com/blog/student-loans-undergraduate/
###Response
Are you trying to fill the gap between financial aid and college expenses? Earnest offers flexible loan terms, no prepayment or origination fees, and a 9-month grace period6 compared to the 6-month grace period offered by other lenders. Find out what your student loan payments could look like with our free student loan calculator, and for the latest interest rates visit our private student loans page. It's never too early to look into your student loan options Learn More Kassondra Cloos Kassondra Cloos is a writer, editor, and former Earnest client. She refinanced her own student loans with Earnest after graduating and has first-hand experience with the refinancing process. She has been writing about personal finance and student loans since 2017. She also writes about sustainable travel and adventure for The Guardian, Outside, Backpacker, and many other publications. You can find more of her work via her travel newsletter, Out of Office. Disclaimer: This blog post provides personal finance educational information, and it is not intended to provide legal, financial, or tax advice. 1 Before applying for private student loans, it’s best to maximize your other sources of |
financial, or tax advice. 1 Before applying for private student loans, it’s best to maximize your other sources of financial aid first. It’s recommended to use a 3-step approach to assembling the funds you need: 1) Look for funds you don’t have to pay back, like scholarships, grant, and work-study opportunities. 2) Next, fill out a FAFSA(R) form to apply for federal student loans. Federal Direct subsidized and unsubsidized loans, excluding PLUS Loan for Parents and PLUS Loan for Graduate and Professional Students which require a credit check and a credit worthy endorser if the parent or graduate or professional student has adverse credit, do not require a credit check or cosigner, and offer various protections if your struggling with your payments. 3) Finally, consider a private student loan to cover any difference between your total cost of attendance and the amount not covered in steps 1 and 2. For more information, visit the Department of Education website at https://studentaid.ed.gov. 2 You may lose benefits associated with your underlying federal and/or private loans if you refinance such as federal Income-driven Repayment Plans, Economic Hardship Deferment, | 9 Common Mistakes When Borrowing Undergraduate Student Loans - Earnest Blog | https://www.earnest.com/blog/student-loans-undergraduate/ | ###Instruction Tell me about:
9 Common Mistakes When Borrowing Undergraduate Student Loans - Earnest Blog
from web page:
https://www.earnest.com/blog/student-loans-undergraduate/
###Response
financial, or tax advice. 1 Before applying for private student loans, it’s best to maximize your other sources of financial aid first. It’s recommended to use a 3-step approach to assembling the funds you need: 1) Look for funds you don’t have to pay back, like scholarships, grant, and work-study opportunities. 2) Next, fill out a FAFSA(R) form to apply for federal student loans. Federal Direct subsidized and unsubsidized loans, excluding PLUS Loan for Parents and PLUS Loan for Graduate and Professional Students which require a credit check and a credit worthy endorser if the parent or graduate or professional student has adverse credit, do not require a credit check or cosigner, and offer various protections if your struggling with your payments. 3) Finally, consider a private student loan to cover any difference between your total cost of attendance and the amount not covered in steps 1 and 2. For more information, visit the Department of Education website at https://studentaid.ed.gov. 2 You may lose benefits associated with your underlying federal and/or private loans if you refinance such as federal Income-driven Repayment Plans, Economic Hardship Deferment, |
and/or private loans if you refinance such as federal Income-driven Repayment Plans, Economic Hardship Deferment, Public Service Loan Forgiveness, or other deferment and forbearance options. If you file for bankruptcy, you may still be required to pay back this loan. 3 Choosing to refinance to a longer term may lower your monthly payment, but increase the amount of interest you may pay. Choosing to refinance to a shorter term may increase your monthly payment, but lower the amount of interest you may pay. Review your loan documentation for the total cost of your refinanced loan. 4 Earnest clients may skip a payment through a one, one-month forbearance during a 12 month period. Your first request to skip a pay can be made once you’ve made at least 6 months of consecutive on-time full principal and interest payments, and your loan is in good standing. The interest accrued during the skipped month will result in an increase in your remaining minimum payment. The final payoff date on your loan will be extended by the length of the skipped payment periods. Any unpaid accrued interest may capitalize (added to the principal balance) at the end of the forbearance period by adding unpaid | 9 Common Mistakes When Borrowing Undergraduate Student Loans - Earnest Blog | https://www.earnest.com/blog/student-loans-undergraduate/ | ###Instruction Tell me about:
9 Common Mistakes When Borrowing Undergraduate Student Loans - Earnest Blog
from web page:
https://www.earnest.com/blog/student-loans-undergraduate/
###Response
and/or private loans if you refinance such as federal Income-driven Repayment Plans, Economic Hardship Deferment, Public Service Loan Forgiveness, or other deferment and forbearance options. If you file for bankruptcy, you may still be required to pay back this loan. 3 Choosing to refinance to a longer term may lower your monthly payment, but increase the amount of interest you may pay. Choosing to refinance to a shorter term may increase your monthly payment, but lower the amount of interest you may pay. Review your loan documentation for the total cost of your refinanced loan. 4 Earnest clients may skip a payment through a one, one-month forbearance during a 12 month period. Your first request to skip a pay can be made once you’ve made at least 6 months of consecutive on-time full principal and interest payments, and your loan is in good standing. The interest accrued during the skipped month will result in an increase in your remaining minimum payment. The final payoff date on your loan will be extended by the length of the skipped payment periods. Any unpaid accrued interest may capitalize (added to the principal balance) at the end of the forbearance period by adding unpaid |
accrued interest may capitalize (added to the principal balance) at the end of the forbearance period by adding unpaid accrued interest to the outstanding principal as permitted by law and the terms of the loan agreement. 5 You can take advantage of the Auto Pay interest rate reduction by setting up and maintaining active and automatic ACH withdrawal of your loan payment from a checking or savings account. The interest rate reduction for Auto Pay will be available only while your loan is enrolled in Auto Pay. Interest rate incentives for utilizing Auto Pay may not be combined with certain private student loan repayment programs that also offer an interest rate reduction. For multi-party loans, only one party may enroll in Auto Pay. FOR SLO ONLY - It is important to note that the 0.25% Auto Pay discount is not available while loan payments are deferred. 6 Nine-month grace period is not available for borrowers who choose our Principal and Interest Repayment plan while in school. Let us do the math Use our calculators to aggregate multiple student loans or preview your potential savings from refinancing with Earnest. I want to Refi my student loan Consolidate my student loans | 9 Common Mistakes When Borrowing Undergraduate Student Loans - Earnest Blog | https://www.earnest.com/blog/student-loans-undergraduate/ | ###Instruction Tell me about:
9 Common Mistakes When Borrowing Undergraduate Student Loans - Earnest Blog
from web page:
https://www.earnest.com/blog/student-loans-undergraduate/
###Response
accrued interest may capitalize (added to the principal balance) at the end of the forbearance period by adding unpaid accrued interest to the outstanding principal as permitted by law and the terms of the loan agreement. 5 You can take advantage of the Auto Pay interest rate reduction by setting up and maintaining active and automatic ACH withdrawal of your loan payment from a checking or savings account. The interest rate reduction for Auto Pay will be available only while your loan is enrolled in Auto Pay. Interest rate incentives for utilizing Auto Pay may not be combined with certain private student loan repayment programs that also offer an interest rate reduction. For multi-party loans, only one party may enroll in Auto Pay. FOR SLO ONLY - It is important to note that the 0.25% Auto Pay discount is not available while loan payments are deferred. 6 Nine-month grace period is not available for borrowers who choose our Principal and Interest Repayment plan while in school. Let us do the math Use our calculators to aggregate multiple student loans or preview your potential savings from refinancing with Earnest. I want to Refi my student loan Consolidate my student loans |
your potential savings from refinancing with Earnest. I want to Refi my student loan Consolidate my student loans Current Loan Balance Next: Add Your New Loan Related Articles How Much Does an MBA Increase Your Salary? 15 min. read How to Estimate How Much a Degree is Worth 9 min. read Current Student Loan Interest Rates (Federal and Private) 19 min. read Earnest Loans are made by Earnest Operations LLC or One American Bank, Member FDIC, or FinWise Bank, Member FDIC:. Earnest Operations LLC NMLS #1204917 nmlsconsumeraccess.org List of licensed states 535 Mission St., Suite 1663, San Francisco, CA 94105 One American Bank 515 S. Minnesota Ave Sioux Falls, SD 57104 FinWise Bank, Member FDIC 756 East Winchester Suite 100 Murray, UT 84107 Earnest loans are serviced by Earnest Operations LLC (NMLS #1204917) with support from Navient Solutions, LLC (NMLS #212430). One American Bank, FinWise Bank, and Earnest LLC and its subsidiaries, including Earnest Operations LLC, are not sponsored by or agencies of the United States of America. For California residents (Student Loan Refinance Only): Loans will be arranged or made pursuant to a California Financing Law License. Contact Us: | 9 Common Mistakes When Borrowing Undergraduate Student Loans - Earnest Blog | https://www.earnest.com/blog/student-loans-undergraduate/ | ###Instruction Tell me about:
9 Common Mistakes When Borrowing Undergraduate Student Loans - Earnest Blog
from web page:
https://www.earnest.com/blog/student-loans-undergraduate/
###Response
your potential savings from refinancing with Earnest. I want to Refi my student loan Consolidate my student loans Current Loan Balance Next: Add Your New Loan Related Articles How Much Does an MBA Increase Your Salary? 15 min. read How to Estimate How Much a Degree is Worth 9 min. read Current Student Loan Interest Rates (Federal and Private) 19 min. read Earnest Loans are made by Earnest Operations LLC or One American Bank, Member FDIC, or FinWise Bank, Member FDIC:. Earnest Operations LLC NMLS #1204917 nmlsconsumeraccess.org List of licensed states 535 Mission St., Suite 1663, San Francisco, CA 94105 One American Bank 515 S. Minnesota Ave Sioux Falls, SD 57104 FinWise Bank, Member FDIC 756 East Winchester Suite 100 Murray, UT 84107 Earnest loans are serviced by Earnest Operations LLC (NMLS #1204917) with support from Navient Solutions, LLC (NMLS #212430). One American Bank, FinWise Bank, and Earnest LLC and its subsidiaries, including Earnest Operations LLC, are not sponsored by or agencies of the United States of America. For California residents (Student Loan Refinance Only): Loans will be arranged or made pursuant to a California Financing Law License. Contact Us: |
Loan Refinance Only): Loans will be arranged or made pursuant to a California Financing Law License. Contact Us: 888-601-2801 Contact Us: 888-601-2801 © 2023 Earnest LLC. All rights reserved. | 9 Common Mistakes When Borrowing Undergraduate Student Loans - Earnest Blog | https://www.earnest.com/blog/student-loans-undergraduate/ | ###Instruction Tell me about:
9 Common Mistakes When Borrowing Undergraduate Student Loans - Earnest Blog
from web page:
https://www.earnest.com/blog/student-loans-undergraduate/
###Response
Loan Refinance Only): Loans will be arranged or made pursuant to a California Financing Law License. Contact Us: 888-601-2801 Contact Us: 888-601-2801 © 2023 Earnest LLC. All rights reserved. |
Sign InGet Started Updated November 20, 2023 Private Student Loans Seriously Simple. Seriously Supportive. You are not a number. Get the flexibility, low rates, and security you need, along with the personal guidance you deserve. Let’s get started Check your eligibility. No credit impact. I am a Student Cosigner I (my student) is earning this degree Bachelor's Graduate I live in We currently do not provide student loans in this state. Continue Over 6,000 reviews and a 4.7 star rating US News named us one the Best Loan Companies for private student loans Over 236,000 clients trust Earnest Trusted by over 800 universities nationwide as a preferred lender Apply Now Interest Rates A cosigner could lower your rate Want a lower interest rate? Cosigned student loans tend to have lower interest rates because cosigners usually have a longer credit history. Plus, students are 5X more likely to be approved with a cosigner. Cosigner 4.49% ( including 0.25% Auto Pay discount ) fixed rates Are loans that have an interest rate that will not fluctuate over time. Independent 5.80% ( including 0.25% Auto Pay discount ) fixed rates Are loans that have an interest rate that will not fluctuate over | Private Student Loans, Pick What You Pay | Earnest | https://www.earnest.com/student-loans | ###Instruction Tell me about:
Private Student Loans, Pick What You Pay | Earnest
from web page:
https://www.earnest.com/student-loans
###Response
Sign InGet Started Updated November 20, 2023 Private Student Loans Seriously Simple. Seriously Supportive. You are not a number. Get the flexibility, low rates, and security you need, along with the personal guidance you deserve. Let’s get started Check your eligibility. No credit impact. I am a Student Cosigner I (my student) is earning this degree Bachelor's Graduate I live in We currently do not provide student loans in this state. Continue Over 6,000 reviews and a 4.7 star rating US News named us one the Best Loan Companies for private student loans Over 236,000 clients trust Earnest Trusted by over 800 universities nationwide as a preferred lender Apply Now Interest Rates A cosigner could lower your rate Want a lower interest rate? Cosigned student loans tend to have lower interest rates because cosigners usually have a longer credit history. Plus, students are 5X more likely to be approved with a cosigner. Cosigner 4.49% ( including 0.25% Auto Pay discount ) fixed rates Are loans that have an interest rate that will not fluctuate over time. Independent 5.80% ( including 0.25% Auto Pay discount ) fixed rates Are loans that have an interest rate that will not fluctuate over |
5.80% ( including 0.25% Auto Pay discount ) fixed rates Are loans that have an interest rate that will not fluctuate over time. Cosigner 4.49% ( including 0.25% Auto Pay discount ) fixed rates Are loans that have an interest rate that will not fluctuate over time. Independent 5.80% ( including 0.25% Auto Pay discount ) fixed rates Are loans that have an interest rate that will not fluctuate over time. These are our lowest starting rates and contain our 0.25% Auto Pay discount from a checking or savings account. Some borrowers may see higher rates based on their credit. Trustpilot The Best Rates 100% Rate Match Guarantee We’ll match any competitor rate and give you a $100 Amazon gift card once your rate match is finalized. Call us today to get a rate match (888) 601-2801. Learn More Expert Help Client Happiness is at the heart of Earnest Questions or concerns? Our in-house Client Happiness team has the power to solve your problems and set you up for success. We can even assist you in submitting your application over the phone. | Private Student Loans, Pick What You Pay | Earnest | https://www.earnest.com/student-loans | ###Instruction Tell me about:
Private Student Loans, Pick What You Pay | Earnest
from web page:
https://www.earnest.com/student-loans
###Response
5.80% ( including 0.25% Auto Pay discount ) fixed rates Are loans that have an interest rate that will not fluctuate over time. Cosigner 4.49% ( including 0.25% Auto Pay discount ) fixed rates Are loans that have an interest rate that will not fluctuate over time. Independent 5.80% ( including 0.25% Auto Pay discount ) fixed rates Are loans that have an interest rate that will not fluctuate over time. These are our lowest starting rates and contain our 0.25% Auto Pay discount from a checking or savings account. Some borrowers may see higher rates based on their credit. Trustpilot The Best Rates 100% Rate Match Guarantee We’ll match any competitor rate and give you a $100 Amazon gift card once your rate match is finalized. Call us today to get a rate match (888) 601-2801. Learn More Expert Help Client Happiness is at the heart of Earnest Questions or concerns? Our in-house Client Happiness team has the power to solve your problems and set you up for success. We can even assist you in submitting your application over the phone. |
You can reach us via email and web chat; if you prefer to speak to a real person call between 5 am-5 pm PST, Monday-Friday, at (888) 601-2801. Find the best loan for you Benefits Financial responsibility meets college funding Radically-Flexible Terms Pick your payment from 4 options. Adjust your term down to the month for an ideal loan. 50% Longer Grace Period For students who need time to start payments, we give 9 months vs. the standard 6 months. Save On Interest With 0.25% Auto Pay discount and lower your chances of accidentally missing a payment. Apply Now Get help A helping hand for cosigners Cosigning isn’t always easy, unless it’s with Earnest. Our cosigners have access to expert help, a convenient mobile application and secure end-to-end encryption to protect their financial information. Easily start the application for a student and share with a single tap of a button
Mobile-friendly cosigner invitation if your student starts the application first | Private Student Loans, Pick What You Pay | Earnest | https://www.earnest.com/student-loans | ###Instruction Tell me about:
Private Student Loans, Pick What You Pay | Earnest
from web page:
https://www.earnest.com/student-loans
###Response
You can reach us via email and web chat; if you prefer to speak to a real person call between 5 am-5 pm PST, Monday-Friday, at (888) 601-2801. Find the best loan for you Benefits Financial responsibility meets college funding Radically-Flexible Terms Pick your payment from 4 options. Adjust your term down to the month for an ideal loan. 50% Longer Grace Period For students who need time to start payments, we give 9 months vs. the standard 6 months. Save On Interest With 0.25% Auto Pay discount and lower your chances of accidentally missing a payment. Apply Now Get help A helping hand for cosigners Cosigning isn’t always easy, unless it’s with Earnest. Our cosigners have access to expert help, a convenient mobile application and secure end-to-end encryption to protect their financial information. Easily start the application for a student and share with a single tap of a button
Mobile-friendly cosigner invitation if your student starts the application first |
Email and SMS updates to keep you informed about where you are in the application process Get Started Compare A step above the competitionA step above the competition It makes sense to explore your options. See how we stack up against our competitors and make the best choice for you. SallieMae Discover Citizens Earnest Horizontal Logo SallieMae Discover Citizens eligibility check eligibility check eligibility check eligibility check zero fees zero fees zero fees zero fees 9-month grace period 9-month grace period 9-month grace period 9-month grace period choice of loan terms choice of loan terms choice of loan terms choice of loan terms skip 1 payment a year skip 1 payment a year skip 1 payment a year skip 1 payment a year Feature comparison current as of March 1, 2023 Questions? Get the FAQs on Private Student Loans What federal loan alternatives should I consider before applying for a private student loan? Before applying for private student loans, it’s best to look at other sources of financial aid and check out the Department of Education website at studentaid.gov. It’s recommended that you use a 4-step approach to get the funds you need: | Private Student Loans, Pick What You Pay | Earnest | https://www.earnest.com/student-loans | ###Instruction Tell me about:
Private Student Loans, Pick What You Pay | Earnest
from web page:
https://www.earnest.com/student-loans
###Response
Email and SMS updates to keep you informed about where you are in the application process Get Started Compare A step above the competitionA step above the competition It makes sense to explore your options. See how we stack up against our competitors and make the best choice for you. SallieMae Discover Citizens Earnest Horizontal Logo SallieMae Discover Citizens eligibility check eligibility check eligibility check eligibility check zero fees zero fees zero fees zero fees 9-month grace period 9-month grace period 9-month grace period 9-month grace period choice of loan terms choice of loan terms choice of loan terms choice of loan terms skip 1 payment a year skip 1 payment a year skip 1 payment a year skip 1 payment a year Feature comparison current as of March 1, 2023 Questions? Get the FAQs on Private Student Loans What federal loan alternatives should I consider before applying for a private student loan? Before applying for private student loans, it’s best to look at other sources of financial aid and check out the Department of Education website at studentaid.gov. It’s recommended that you use a 4-step approach to get the funds you need: |
1) Look for educational funding you don’t have to pay back, like scholarships, Pell grants, in addition to other grants, and work-study opportunities.
2) Fill out a FAFSA® form to apply for federal student loans. Federal unsubsidized loans don’t collect interest while you are in school. Most federal student loans don’t require a credit check or a qualifying cosigner, and offer federal programs if you’re struggling with payments.
3) Consider asking a parent to look at federal parent loans. The Parent PLUS loan is issued directly to parents or guardians of current students.
4) Look at a private student loan to cover any differences between your total cost of attendance and the amount not included in steps 1-3.
To learn more about federal student loan programs, visit the U.S. Department of Education. You can also fill out a free application for federal student aid or FAFSA® here. | Private Student Loans, Pick What You Pay | Earnest | https://www.earnest.com/student-loans | ###Instruction Tell me about:
Private Student Loans, Pick What You Pay | Earnest
from web page:
https://www.earnest.com/student-loans
###Response
1) Look for educational funding you don’t have to pay back, like scholarships, Pell grants, in addition to other grants, and work-study opportunities.
2) Fill out a FAFSA® form to apply for federal student loans. Federal unsubsidized loans don’t collect interest while you are in school. Most federal student loans don’t require a credit check or a qualifying cosigner, and offer federal programs if you’re struggling with payments.
3) Consider asking a parent to look at federal parent loans. The Parent PLUS loan is issued directly to parents or guardians of current students.
4) Look at a private student loan to cover any differences between your total cost of attendance and the amount not included in steps 1-3.
To learn more about federal student loan programs, visit the U.S. Department of Education. You can also fill out a free application for federal student aid or FAFSA® here. |
The best private student loans should give you a low interest rate that will complement your federal financial aid. Keep in mind that you will accumulate student loan interest on both federal student loans and private student loans over time, so you want to find the lowest rates possible.
Before looking for loans with private financial institutions, such as online lenders, credit unions, or banks, explore all of your education loan options with the federal government. What is the most I can borrow with student loans? Federal loans have different loan limits. They depend on the type of student loan, what year of school the student is applying for, as well as whether the student is considered a dependent (relying on their parents/guardian for financial support) or independent.
A student is considered independent if he or she meets any one of the criteria below: Is married
Is in grad school
Will be 24 years old before January 1 of the school year for which they’re applying | Private Student Loans, Pick What You Pay | Earnest | https://www.earnest.com/student-loans | ###Instruction Tell me about:
Private Student Loans, Pick What You Pay | Earnest
from web page:
https://www.earnest.com/student-loans
###Response
The best private student loans should give you a low interest rate that will complement your federal financial aid. Keep in mind that you will accumulate student loan interest on both federal student loans and private student loans over time, so you want to find the lowest rates possible.
Before looking for loans with private financial institutions, such as online lenders, credit unions, or banks, explore all of your education loan options with the federal government. What is the most I can borrow with student loans? Federal loans have different loan limits. They depend on the type of student loan, what year of school the student is applying for, as well as whether the student is considered a dependent (relying on their parents/guardian for financial support) or independent.
A student is considered independent if he or she meets any one of the criteria below: Is married
Is in grad school
Will be 24 years old before January 1 of the school year for which they’re applying |
Is in grad school
Will be 24 years old before January 1 of the school year for which they’re applying
Has been legally emancipated from parents or guardians
Has a child or dependent
Is on active duty or a veteran of the U.S. armed forces
Was orphaned or in foster care after age 13
Was determined to be an unaccompanied/homeless youth Below are the borrowing limits for different students.
Dependent undergraduate students
First year: $5,500 total / $3,500 subsidized
Second year: $6,500 total / $4,500 subsidized
Third year and beyond: $7,500 total / $5,500 subsidized
Total limit: $31,000 / $23,000 subsidized
Independent undergraduate students
First year: $9,500 total / $3,500 subsidized
Second year: $10,500 total / $4,500 subsidized
Third year and beyond: $12,500 total / $5,500 subsidized
Total limit: $57,500 / $23,000 subsidized
Graduate students (unsubsidized only)
Annual limit: $20,500
Total limit: $138,500 (including undergraduate loans) | Private Student Loans, Pick What You Pay | Earnest | https://www.earnest.com/student-loans | ###Instruction Tell me about:
Private Student Loans, Pick What You Pay | Earnest
from web page:
https://www.earnest.com/student-loans
###Response
Is in grad school
Will be 24 years old before January 1 of the school year for which they’re applying
Has been legally emancipated from parents or guardians
Has a child or dependent
Is on active duty or a veteran of the U.S. armed forces
Was orphaned or in foster care after age 13
Was determined to be an unaccompanied/homeless youth Below are the borrowing limits for different students.
Dependent undergraduate students
First year: $5,500 total / $3,500 subsidized
Second year: $6,500 total / $4,500 subsidized
Third year and beyond: $7,500 total / $5,500 subsidized
Total limit: $31,000 / $23,000 subsidized
Independent undergraduate students
First year: $9,500 total / $3,500 subsidized
Second year: $10,500 total / $4,500 subsidized
Third year and beyond: $12,500 total / $5,500 subsidized
Total limit: $57,500 / $23,000 subsidized
Graduate students (unsubsidized only)
Annual limit: $20,500
Total limit: $138,500 (including undergraduate loans) |
Annual limit: $20,500
Total limit: $138,500 (including undergraduate loans)
Direct PLUS loans, which are another type of federal loan available to graduate students only, do not have the same restrictions—but they have higher rates than regular federal student loans.
Private student loan lenders have different limits that vary depending on the cost of attendance of the school. A private student loan may cover up to 100% of the cost of attendance. Before applying for a private student loan, remember to apply for federal aid. You can start the application process for a federal loan on the FAFSA® website. Who is eligible for Earnest private student loans? Eligible students must be: Attending, or enrolled to attend, full-time at an eligible 4-year Title IV institutions
Residing in the District of Columbia or a state that Earnest lends in (all but NV)
The age of majority in their state of residence | Private Student Loans, Pick What You Pay | Earnest | https://www.earnest.com/student-loans | ###Instruction Tell me about:
Private Student Loans, Pick What You Pay | Earnest
from web page:
https://www.earnest.com/student-loans
###Response
Annual limit: $20,500
Total limit: $138,500 (including undergraduate loans)
Direct PLUS loans, which are another type of federal loan available to graduate students only, do not have the same restrictions—but they have higher rates than regular federal student loans.
Private student loan lenders have different limits that vary depending on the cost of attendance of the school. A private student loan may cover up to 100% of the cost of attendance. Before applying for a private student loan, remember to apply for federal aid. You can start the application process for a federal loan on the FAFSA® website. Who is eligible for Earnest private student loans? Eligible students must be: Attending, or enrolled to attend, full-time at an eligible 4-year Title IV institutions
Residing in the District of Columbia or a state that Earnest lends in (all but NV)
The age of majority in their state of residence |
The age of majority in their state of residence
A U.S. Citizen or Permanent Resident or have a cosigner who is a U.S. Citizen or Permanent Resident View full eligibility details on our Eligibility page.
If you meet all of Earnest’s eligibility criteria, you may be approved for a loan as a solo applicant—but applying with a cosigner who has good credit may increase your chances of approval. Many students see higher interest rates if they apply without a cosigner.
If you are not a U.S. Citizen or Permanent Resident, you may only apply with a cosigner who is.
If you apply with a cosigner and later would like to do a cosigner release, we regret to inform you that we do not offer this option at this time. However, you can refinance your student loans in your own name without a cosigner upon graduation. Refinancing is subject to the following eligibility requirements.
Please keep in mind our eligibility criteria for student loan cosigners: A U.S. Citizen or Permanent Resident | Private Student Loans, Pick What You Pay | Earnest | https://www.earnest.com/student-loans | ###Instruction Tell me about:
Private Student Loans, Pick What You Pay | Earnest
from web page:
https://www.earnest.com/student-loans
###Response
The age of majority in their state of residence
A U.S. Citizen or Permanent Resident or have a cosigner who is a U.S. Citizen or Permanent Resident View full eligibility details on our Eligibility page.
If you meet all of Earnest’s eligibility criteria, you may be approved for a loan as a solo applicant—but applying with a cosigner who has good credit may increase your chances of approval. Many students see higher interest rates if they apply without a cosigner.
If you are not a U.S. Citizen or Permanent Resident, you may only apply with a cosigner who is.
If you apply with a cosigner and later would like to do a cosigner release, we regret to inform you that we do not offer this option at this time. However, you can refinance your student loans in your own name without a cosigner upon graduation. Refinancing is subject to the following eligibility requirements.
Please keep in mind our eligibility criteria for student loan cosigners: A U.S. Citizen or Permanent Resident |
3+ years of good credit history
A minimum credit score of 650
No history of bankruptcy
Minimum yearly income of $35,000 (in USD)
Both primary and cosigner must live in the District of Columbia or a state that we lend in (all but NV), but they do not need to both live in the same state. Do I qualify for federal or private student loans? Federal student loans and private student loans have different qualifications for student loan borrowers. You must fill out a FAFSA® to find out if you qualify for federal financial aid. You do not need to fill out a FAFSA® for a private student loan. Federal and private student loans may also have different loan terms, grace periods, repayment plans, and monthly payments.
The table below compares eligibility requirements for federal loans vs. Earnest private student loans: Federal Student Loans Private Student Loans Must be a citizen or eligible permanent resident | Private Student Loans, Pick What You Pay | Earnest | https://www.earnest.com/student-loans | ###Instruction Tell me about:
Private Student Loans, Pick What You Pay | Earnest
from web page:
https://www.earnest.com/student-loans
###Response
3+ years of good credit history
A minimum credit score of 650
No history of bankruptcy
Minimum yearly income of $35,000 (in USD)
Both primary and cosigner must live in the District of Columbia or a state that we lend in (all but NV), but they do not need to both live in the same state. Do I qualify for federal or private student loans? Federal student loans and private student loans have different qualifications for student loan borrowers. You must fill out a FAFSA® to find out if you qualify for federal financial aid. You do not need to fill out a FAFSA® for a private student loan. Federal and private student loans may also have different loan terms, grace periods, repayment plans, and monthly payments.
The table below compares eligibility requirements for federal loans vs. Earnest private student loans: Federal Student Loans Private Student Loans Must be a citizen or eligible permanent resident |
Must be a citizen or eligible permanent resident OR have a cosigner who is Can live in any state to qualify for financial aid
You live in the District of Columbia or a state that we lend in (all but NV) Must have a high school diploma or equivalent
No diploma or GED requirement At least half-time enrollment at an eligible institution
Full-time enrollment at an eligible institution Must submit the FAFSA® for a federal loan
Must apply directly with the private lender No specific age requirement
Must be the age of majority (18 in all states except Alabama [19], Mississippi [21], and Nebraska [19]) Must maintain Satisfactory Academic Progress for a federal loan
No Satisfactory Academic Progress necessary No credit-based requirements | Private Student Loans, Pick What You Pay | Earnest | https://www.earnest.com/student-loans | ###Instruction Tell me about:
Private Student Loans, Pick What You Pay | Earnest
from web page:
https://www.earnest.com/student-loans
###Response
Must be a citizen or eligible permanent resident OR have a cosigner who is Can live in any state to qualify for financial aid
You live in the District of Columbia or a state that we lend in (all but NV) Must have a high school diploma or equivalent
No diploma or GED requirement At least half-time enrollment at an eligible institution
Full-time enrollment at an eligible institution Must submit the FAFSA® for a federal loan
Must apply directly with the private lender No specific age requirement
Must be the age of majority (18 in all states except Alabama [19], Mississippi [21], and Nebraska [19]) Must maintain Satisfactory Academic Progress for a federal loan
No Satisfactory Academic Progress necessary No credit-based requirements |
No Satisfactory Academic Progress necessary No credit-based requirements
Must meet credit requirements or have a cosigner who does for a private lender, such as Earnest Do I need a cosigner? If you meet all of Earnest’s eligibility criteria, you may be approved for a loan as an independent applicant. However, applying with a cosigner who has good credit may increase the probability of getting approved and may lower the cost of your loan.
If you are not a U.S. Citizen or Permanent Resident, you may only apply with a cosigner who is.
Please keep in mind our eligibility criteria for cosigners: A U.S. Citizen or Permanent Resident
3+ years of good credit history
A minimum credit score of 650
No history of bankruptcy
Minimum yearly income of $35,000 (in USD)
Both primary and cosigner must live in the District of Columbia or a state that we lend in (all but NV), but they do not need to both live in the same state What are the advantages of private student loans vs. federal student loans? Benefits | Private Student Loans, Pick What You Pay | Earnest | https://www.earnest.com/student-loans | ###Instruction Tell me about:
Private Student Loans, Pick What You Pay | Earnest
from web page:
https://www.earnest.com/student-loans
###Response
No Satisfactory Academic Progress necessary No credit-based requirements
Must meet credit requirements or have a cosigner who does for a private lender, such as Earnest Do I need a cosigner? If you meet all of Earnest’s eligibility criteria, you may be approved for a loan as an independent applicant. However, applying with a cosigner who has good credit may increase the probability of getting approved and may lower the cost of your loan.
If you are not a U.S. Citizen or Permanent Resident, you may only apply with a cosigner who is.
Please keep in mind our eligibility criteria for cosigners: A U.S. Citizen or Permanent Resident
3+ years of good credit history
A minimum credit score of 650
No history of bankruptcy
Minimum yearly income of $35,000 (in USD)
Both primary and cosigner must live in the District of Columbia or a state that we lend in (all but NV), but they do not need to both live in the same state What are the advantages of private student loans vs. federal student loans? Benefits |
Federal student loans offer borrowers certain protections that private student loans may not, such as income-based repayment, public service loan forgiveness. That includes any future waiver or government forgiveness.
Private student loans offer different loan terms and may offer lower student loan interest rates. Federal student loans tend to offer Income-based repayment or loan forgiveness. Meanwhile, a private lender may offer other benefits, such as flexible payment terms or a lower interest rate.
Borrowing limits Federal student loans have borrowing limits (similar to limits on credit cards). If the cost of attendance exceeds the federal loan amount, that means you will need to cover the leftover cost. Graduate students may apply for no-cap Direct PLUS loans from the government, but undergraduate students do not have a Direct loan option.
Cost of attendance | Private Student Loans, Pick What You Pay | Earnest | https://www.earnest.com/student-loans | ###Instruction Tell me about:
Private Student Loans, Pick What You Pay | Earnest
from web page:
https://www.earnest.com/student-loans
###Response
Federal student loans offer borrowers certain protections that private student loans may not, such as income-based repayment, public service loan forgiveness. That includes any future waiver or government forgiveness.
Private student loans offer different loan terms and may offer lower student loan interest rates. Federal student loans tend to offer Income-based repayment or loan forgiveness. Meanwhile, a private lender may offer other benefits, such as flexible payment terms or a lower interest rate.
Borrowing limits Federal student loans have borrowing limits (similar to limits on credit cards). If the cost of attendance exceeds the federal loan amount, that means you will need to cover the leftover cost. Graduate students may apply for no-cap Direct PLUS loans from the government, but undergraduate students do not have a Direct loan option.
Cost of attendance |
Cost of attendance
Many students choose to apply for a loan with a private lender to cover their leftover college costs, such as books, housing, or computers. Earnest private student loans, in addition to covering the entire cost of attendance, also have rates that are based on the credit profile of you and/or any cosigner you have. This may mean higher or lower rates than those offered by federal loans, depending on the credit profile.
Grace periods and origination fees
A private student loan may offer a longer deferment period or grace period
than a federal student loan. Some private lenders, such as Earnest, don’t charge an origination fee while some federal student loans do.
Auto Pay benefits
With Earnest, you can get a 0.25% APR rate discount when you agree to make monthly principal and interest payments by automatic electronic payment. Also, being enrolled in Auto Pay | Private Student Loans, Pick What You Pay | Earnest | https://www.earnest.com/student-loans | ###Instruction Tell me about:
Private Student Loans, Pick What You Pay | Earnest
from web page:
https://www.earnest.com/student-loans
###Response
Cost of attendance
Many students choose to apply for a loan with a private lender to cover their leftover college costs, such as books, housing, or computers. Earnest private student loans, in addition to covering the entire cost of attendance, also have rates that are based on the credit profile of you and/or any cosigner you have. This may mean higher or lower rates than those offered by federal loans, depending on the credit profile.
Grace periods and origination fees
A private student loan may offer a longer deferment period or grace period
than a federal student loan. Some private lenders, such as Earnest, don’t charge an origination fee while some federal student loans do.
Auto Pay benefits
With Earnest, you can get a 0.25% APR rate discount when you agree to make monthly principal and interest payments by automatic electronic payment. Also, being enrolled in Auto Pay |
helps most of our clients make on-time payments because the minimum payment is automatically deducted from their accounts.
For both private student loans and federal student loans, you must sign a promissory note stating that you will repay the full amount. Essentially, a promissory note is your student loan contract.
Forgiveness Programs
Students who take out private student loans do not qualify for any current or future federal benefits or student loan forgiveness programs. That includes any current or future federal student debt cancellation or student debt relief. However, some private student loan companies offer forbearance and will work with you in a debt relief plan, depending on your individual situation. | Private Student Loans, Pick What You Pay | Earnest | https://www.earnest.com/student-loans | ###Instruction Tell me about:
Private Student Loans, Pick What You Pay | Earnest
from web page:
https://www.earnest.com/student-loans
###Response
helps most of our clients make on-time payments because the minimum payment is automatically deducted from their accounts.
For both private student loans and federal student loans, you must sign a promissory note stating that you will repay the full amount. Essentially, a promissory note is your student loan contract.
Forgiveness Programs
Students who take out private student loans do not qualify for any current or future federal benefits or student loan forgiveness programs. That includes any current or future federal student debt cancellation or student debt relief. However, some private student loan companies offer forbearance and will work with you in a debt relief plan, depending on your individual situation. |
Repayment Plans Federal student loans offer unique benefits, such as income-driven repayment plans, whereas now all private loans have the same option. Earnest Private Student Loans for example, offers four different repayment plans and you can learn more about them here. Does Earnest offer flexible repayment options? First, Earnest offers a deferment period that’s 3 months longer than most lenders. That means you don’t have to make student loan payments up to 9 months
after you graduate. However, if you choose to make interest or principal balance payments while still in school, you will not be able to defer your loan payment after graduation.
To learn more about Earnest student loan repayment terms, visit the Help Center.
With Earnest, you can choose from four repayment plans to pay off your student loan balance. | Private Student Loans, Pick What You Pay | Earnest | https://www.earnest.com/student-loans | ###Instruction Tell me about:
Private Student Loans, Pick What You Pay | Earnest
from web page:
https://www.earnest.com/student-loans
###Response
Repayment Plans Federal student loans offer unique benefits, such as income-driven repayment plans, whereas now all private loans have the same option. Earnest Private Student Loans for example, offers four different repayment plans and you can learn more about them here. Does Earnest offer flexible repayment options? First, Earnest offers a deferment period that’s 3 months longer than most lenders. That means you don’t have to make student loan payments up to 9 months
after you graduate. However, if you choose to make interest or principal balance payments while still in school, you will not be able to defer your loan payment after graduation.
To learn more about Earnest student loan repayment terms, visit the Help Center.
With Earnest, you can choose from four repayment plans to pay off your student loan balance. |
With Earnest, you can choose from four repayment plans to pay off your student loan balance.
To make in-school payments more manageable, Earnest allows students to make $25 automatic payments while they are in school. Other in-school repayment options include paying for the accrued interest, deferring payment for 9 months after graduation, or making the interest and principal payment on your loan. Also, Earnest does not have any prepayment penalties, late fees, or origination fees. What kind of interest rates or APR does Earnest charge? APR
An APR (both fixed and variable APR) is the interest rate plus any fees you pay your lender, but because Earnest does not charge origination fees, our interest rates are equal to our APR, or “annual percentage rate.”
For details on this, check out our blog post on the topic.
Interest Rates | Private Student Loans, Pick What You Pay | Earnest | https://www.earnest.com/student-loans | ###Instruction Tell me about:
Private Student Loans, Pick What You Pay | Earnest
from web page:
https://www.earnest.com/student-loans
###Response
With Earnest, you can choose from four repayment plans to pay off your student loan balance.
To make in-school payments more manageable, Earnest allows students to make $25 automatic payments while they are in school. Other in-school repayment options include paying for the accrued interest, deferring payment for 9 months after graduation, or making the interest and principal payment on your loan. Also, Earnest does not have any prepayment penalties, late fees, or origination fees. What kind of interest rates or APR does Earnest charge? APR
An APR (both fixed and variable APR) is the interest rate plus any fees you pay your lender, but because Earnest does not charge origination fees, our interest rates are equal to our APR, or “annual percentage rate.”
For details on this, check out our blog post on the topic.
Interest Rates |
For details on this, check out our blog post on the topic.
Interest Rates
There are two types of interest rates – fixed interest and variable interest. A fixed rate will not change and tends to be higher. A variable rate loan tends to offer lower interest rates, but that interest can fluctuate, making your payment less predictable over the life of the loan. Before taking out a private student loan, make sure to compare interest rates and read the fine print on all of your loan applications. | Private Student Loans, Pick What You Pay | Earnest | https://www.earnest.com/student-loans | ###Instruction Tell me about:
Private Student Loans, Pick What You Pay | Earnest
from web page:
https://www.earnest.com/student-loans
###Response
For details on this, check out our blog post on the topic.
Interest Rates
There are two types of interest rates – fixed interest and variable interest. A fixed rate will not change and tends to be higher. A variable rate loan tends to offer lower interest rates, but that interest can fluctuate, making your payment less predictable over the life of the loan. Before taking out a private student loan, make sure to compare interest rates and read the fine print on all of your loan applications. |
Earnest offers both fixed and variable interest rates. If the interest rate stays the same throughout your Earnest loan term, you have a fixed interest rate; it will not change throughout the repayment period. If you have a variable interest rate, it may change over time. After you graduate and begin working, you may want to consider refinancing your student loan debt for lower interest rates. You can learn more about student loan refinancing with Earnest here and about loan products from Earnest partners. Does Earnest offer consolidation loans for students? We offer student loan refinancing. Please visit our refinancing page to learn more and to check your interest rate.
We do not offer student loan consolidation at this time. These types of loans tend to combine all loan payments into one, while refinancing is meant to give you a more favorable interest rate or payment. | Private Student Loans, Pick What You Pay | Earnest | https://www.earnest.com/student-loans | ###Instruction Tell me about:
Private Student Loans, Pick What You Pay | Earnest
from web page:
https://www.earnest.com/student-loans
###Response
Earnest offers both fixed and variable interest rates. If the interest rate stays the same throughout your Earnest loan term, you have a fixed interest rate; it will not change throughout the repayment period. If you have a variable interest rate, it may change over time. After you graduate and begin working, you may want to consider refinancing your student loan debt for lower interest rates. You can learn more about student loan refinancing with Earnest here and about loan products from Earnest partners. Does Earnest offer consolidation loans for students? We offer student loan refinancing. Please visit our refinancing page to learn more and to check your interest rate.
We do not offer student loan consolidation at this time. These types of loans tend to combine all loan payments into one, while refinancing is meant to give you a more favorable interest rate or payment. |
Although you can refinance multiple student loans with Earnest, a consolidation loan differs from student loan refinancing even though they can be used to achieve the same financial goal. How quickly can I get my student loan? When your loan is approved, we will send money directly to your school in a process called disbursement. The disbursement date is set by the school and cannot be adjusted by our team. | Private Student Loans, Pick What You Pay | Earnest | https://www.earnest.com/student-loans | ###Instruction Tell me about:
Private Student Loans, Pick What You Pay | Earnest
from web page:
https://www.earnest.com/student-loans
###Response
Although you can refinance multiple student loans with Earnest, a consolidation loan differs from student loan refinancing even though they can be used to achieve the same financial goal. How quickly can I get my student loan? When your loan is approved, we will send money directly to your school in a process called disbursement. The disbursement date is set by the school and cannot be adjusted by our team. |
You can visit our Help Center to learn more. All of our student loan servicing is done in-house, and we are happy to answer any questions you may have about your loan or application. What kinds of private student loan options does Earnest offer? We offer the following school loans, all of which fall under the Private Student Loans category: Private Graduate Student Loans for those in graduate school, Law School Loans, Medical School Loans, Undergraduate Student Loans, Business School Loans, Cosigned Student Loans, and Parent Loans. Do you offer loans to international students? If you are an international student, you will need to apply for a Cosigned Student Loan with a creditworthy cosigner who is a U.S. Citizen or permanent resident. | Private Student Loans, Pick What You Pay | Earnest | https://www.earnest.com/student-loans | ###Instruction Tell me about:
Private Student Loans, Pick What You Pay | Earnest
from web page:
https://www.earnest.com/student-loans
###Response
You can visit our Help Center to learn more. All of our student loan servicing is done in-house, and we are happy to answer any questions you may have about your loan or application. What kinds of private student loan options does Earnest offer? We offer the following school loans, all of which fall under the Private Student Loans category: Private Graduate Student Loans for those in graduate school, Law School Loans, Medical School Loans, Undergraduate Student Loans, Business School Loans, Cosigned Student Loans, and Parent Loans. Do you offer loans to international students? If you are an international student, you will need to apply for a Cosigned Student Loan with a creditworthy cosigner who is a U.S. Citizen or permanent resident. |
To find out what creditworthiness (or recommended credit score) a cosigner needs to have and more information, check our eligibility guide to learn more. Do you offer coronavirus relief for your clients? The world has changed with the COVID-19 pandemic and the Biden Administration has extended the payment pause on federal student loans until December 31, 2022. We are confident that we will get through this together, and will continue to do everything within our power to support students and their families on their journey to higher education. If you have any questions about the White House COVID-19 student loan relief, we encourage you to visit the studentaid.gov page regularly to check for updates about loan relief. View MoreView Less Have more questions? Visit the Help Center. Quick Start Guide Am I a good fit for an Earnest private student loan? Before applying for private student loans with Earnest, use this checklist to see if you’re ready. View full eligibility details. I’m a student I’m a cosigner I’ve factored in contributions from my family, such as 529 plans (aka money already designated for your education). I’ve applied for grants, scholarships, and work-study | Private Student Loans, Pick What You Pay | Earnest | https://www.earnest.com/student-loans | ###Instruction Tell me about:
Private Student Loans, Pick What You Pay | Earnest
from web page:
https://www.earnest.com/student-loans
###Response
To find out what creditworthiness (or recommended credit score) a cosigner needs to have and more information, check our eligibility guide to learn more. Do you offer coronavirus relief for your clients? The world has changed with the COVID-19 pandemic and the Biden Administration has extended the payment pause on federal student loans until December 31, 2022. We are confident that we will get through this together, and will continue to do everything within our power to support students and their families on their journey to higher education. If you have any questions about the White House COVID-19 student loan relief, we encourage you to visit the studentaid.gov page regularly to check for updates about loan relief. View MoreView Less Have more questions? Visit the Help Center. Quick Start Guide Am I a good fit for an Earnest private student loan? Before applying for private student loans with Earnest, use this checklist to see if you’re ready. View full eligibility details. I’m a student I’m a cosigner I’ve factored in contributions from my family, such as 529 plans (aka money already designated for your education). I’ve applied for grants, scholarships, and work-study |
529 plans (aka money already designated for your education). I’ve applied for grants, scholarships, and work-study opportunities (aka money you don’t have to pay back). I’ve filled out the FAFSA® to maximize my Federal financial aid (aka money you borrow that comes with repayment protections). Apply Now I am a U.S. Citizen or Permanent Resident Both my student and I live in the District of Columbia or a state in which Earnest is licensed to lend – all but NV. (Note: you do not need to live in the same state.) My income is above $35,000 per year My credit score is above 650 Apply Now Link Copied Ready to apply? Here’s how it works. 1 Apply online Fill out a quick online application on your own or with a cosigner. 2 Get a quick decision Hear back on your application in less than 72 hours. 3 Pick your payment Pick your repayment option, pay monthly or every two weeks. Apply Now Trustpilot *Earnest’s Loan Cost Examples: These examples provide estimates based on principal and Interest payments beginning immediately upon loan disbursement. Variable APR: A $10,000 loan with a 15-year term (180 monthly payments of $118.28) and a 11.69% APR would result in a total estimated payment amount of | Private Student Loans, Pick What You Pay | Earnest | https://www.earnest.com/student-loans | ###Instruction Tell me about:
Private Student Loans, Pick What You Pay | Earnest
from web page:
https://www.earnest.com/student-loans
###Response
529 plans (aka money already designated for your education). I’ve applied for grants, scholarships, and work-study opportunities (aka money you don’t have to pay back). I’ve filled out the FAFSA® to maximize my Federal financial aid (aka money you borrow that comes with repayment protections). Apply Now I am a U.S. Citizen or Permanent Resident Both my student and I live in the District of Columbia or a state in which Earnest is licensed to lend – all but NV. (Note: you do not need to live in the same state.) My income is above $35,000 per year My credit score is above 650 Apply Now Link Copied Ready to apply? Here’s how it works. 1 Apply online Fill out a quick online application on your own or with a cosigner. 2 Get a quick decision Hear back on your application in less than 72 hours. 3 Pick your payment Pick your repayment option, pay monthly or every two weeks. Apply Now Trustpilot *Earnest’s Loan Cost Examples: These examples provide estimates based on principal and Interest payments beginning immediately upon loan disbursement. Variable APR: A $10,000 loan with a 15-year term (180 monthly payments of $118.28) and a 11.69% APR would result in a total estimated payment amount of |
a 15-year term (180 monthly payments of $118.28) and a 11.69% APR would result in a total estimated payment amount of $21,290.40. For a variable loan, after your starting rate is set, your rate will then vary with the market. Fixed APR: A $10,000 loan with a 15-year term (180 monthly payments of $126.82) and a 13.03% APR would result in a total estimated payment amount of $22,827.79. | Private Student Loans, Pick What You Pay | Earnest | https://www.earnest.com/student-loans | ###Instruction Tell me about:
Private Student Loans, Pick What You Pay | Earnest
from web page:
https://www.earnest.com/student-loans
###Response
a 15-year term (180 monthly payments of $118.28) and a 11.69% APR would result in a total estimated payment amount of $21,290.40. For a variable loan, after your starting rate is set, your rate will then vary with the market. Fixed APR: A $10,000 loan with a 15-year term (180 monthly payments of $126.82) and a 13.03% APR would result in a total estimated payment amount of $22,827.79. |
These examples provide estimates based on interest only payments while in school. Variable APR: A $10,000 loan with a 15-year term (180 monthly payments of $118.28) and a 11.69% APR would result in a total estimated payment amount of $26,173.03. For a variable loan, after your starting rate is set, your rate will then vary with the market. Fixed APR: A $10,000 loan with a 15-year term (180 monthly payments of $126.82) and a 13.03% APR would result in a total estimated payment amount of $28,186.67. Your actual repayment terms may vary. Other repayment options are available. | Private Student Loans, Pick What You Pay | Earnest | https://www.earnest.com/student-loans | ###Instruction Tell me about:
Private Student Loans, Pick What You Pay | Earnest
from web page:
https://www.earnest.com/student-loans
###Response
These examples provide estimates based on interest only payments while in school. Variable APR: A $10,000 loan with a 15-year term (180 monthly payments of $118.28) and a 11.69% APR would result in a total estimated payment amount of $26,173.03. For a variable loan, after your starting rate is set, your rate will then vary with the market. Fixed APR: A $10,000 loan with a 15-year term (180 monthly payments of $126.82) and a 13.03% APR would result in a total estimated payment amount of $28,186.67. Your actual repayment terms may vary. Other repayment options are available. |
These examples provide estimates based on fixed $25 payments while in school. Variable APR: A $10,000 loan with a 15-year term (180 monthly payments of $162.65) and a 11.69% APR would result in a total estimated payment amount of $30,584.74. For a variable loan, after your starting rate is set, your rate will then vary with the market. Fixed APR: A $10,000 loan with a 15-year term (180 monthly payments of $181.27) and a 13.03% APR would result in a total estimated payment amount of $33,915.55. Your actual repayment terms may vary. Other repayment options are available. | Private Student Loans, Pick What You Pay | Earnest | https://www.earnest.com/student-loans | ###Instruction Tell me about:
Private Student Loans, Pick What You Pay | Earnest
from web page:
https://www.earnest.com/student-loans
###Response
These examples provide estimates based on fixed $25 payments while in school. Variable APR: A $10,000 loan with a 15-year term (180 monthly payments of $162.65) and a 11.69% APR would result in a total estimated payment amount of $30,584.74. For a variable loan, after your starting rate is set, your rate will then vary with the market. Fixed APR: A $10,000 loan with a 15-year term (180 monthly payments of $181.27) and a 13.03% APR would result in a total estimated payment amount of $33,915.55. Your actual repayment terms may vary. Other repayment options are available. |
These examples provide estimates based on deferred payments. Variable APR: A $10,000 loan with a 15-year term (180 monthly payments of $174.79) and a 11.69% APR would result in a total estimated payment amount of $31,462.16. For a variable loan, after your starting rate is set, your rate will then vary with the market. Fixed APR: A $10,000 loan with a 15-year term (180 monthly payments of $193.75) and a 13.03% APR would result in a total estimated payment amount of $34,874.28. Your actual repayment terms may vary. Other repayment options are available. It is important to note that the 0.25% Auto Pay discount is not available while loan payments are deferred. | Private Student Loans, Pick What You Pay | Earnest | https://www.earnest.com/student-loans | ###Instruction Tell me about:
Private Student Loans, Pick What You Pay | Earnest
from web page:
https://www.earnest.com/student-loans
###Response
These examples provide estimates based on deferred payments. Variable APR: A $10,000 loan with a 15-year term (180 monthly payments of $174.79) and a 11.69% APR would result in a total estimated payment amount of $31,462.16. For a variable loan, after your starting rate is set, your rate will then vary with the market. Fixed APR: A $10,000 loan with a 15-year term (180 monthly payments of $193.75) and a 13.03% APR would result in a total estimated payment amount of $34,874.28. Your actual repayment terms may vary. Other repayment options are available. It is important to note that the 0.25% Auto Pay discount is not available while loan payments are deferred. |
SLR making principal and Interest payments beginning immediately upon loan disbursement. Variable APR: A $10,000 loan with a 20-year term (240 monthly payments of $107.96) and a 11.69% APR would result in a total estimated payment amount of $25,909.23. For a variable loan, after your starting rate is set, your rate will then vary with the market. Fixed APR: A $10,000 loan with a 20-year term (240 monthly payments of $117.37) and a 13.03% APR would result in a total estimated payment amount of $28,169.13. Facebook LinkedIn Instagram Earnest Loans are made by Earnest Operations LLC or One American Bank, Member FDIC, or FinWise Bank, Member FDIC: Earnest Operations LLC NMLS #1204917 nmlsconsumeraccess.org List of licensed states 535 Mission St., Suite 1663 San Francisco, CA 94105 One American Bank, Member FDIC 515 S. Minnesota Ave Sioux Falls, SD 57104 FinWise Bank, Member FDIC 756 East Winchester Suite 100 Murray, UT 84107 Earnest loans are serviced by Earnest Operations LLC (NMLS #1204917) with support from Navient Solutions, LLC (NMLS #212430). One American Bank, FinWise Bank, and Earnest LLC and its subsidiaries, including Earnest Operations LLC, are not sponsored by | Private Student Loans, Pick What You Pay | Earnest | https://www.earnest.com/student-loans | ###Instruction Tell me about:
Private Student Loans, Pick What You Pay | Earnest
from web page:
https://www.earnest.com/student-loans
###Response
SLR making principal and Interest payments beginning immediately upon loan disbursement. Variable APR: A $10,000 loan with a 20-year term (240 monthly payments of $107.96) and a 11.69% APR would result in a total estimated payment amount of $25,909.23. For a variable loan, after your starting rate is set, your rate will then vary with the market. Fixed APR: A $10,000 loan with a 20-year term (240 monthly payments of $117.37) and a 13.03% APR would result in a total estimated payment amount of $28,169.13. Facebook LinkedIn Instagram Earnest Loans are made by Earnest Operations LLC or One American Bank, Member FDIC, or FinWise Bank, Member FDIC: Earnest Operations LLC NMLS #1204917 nmlsconsumeraccess.org List of licensed states 535 Mission St., Suite 1663 San Francisco, CA 94105 One American Bank, Member FDIC 515 S. Minnesota Ave Sioux Falls, SD 57104 FinWise Bank, Member FDIC 756 East Winchester Suite 100 Murray, UT 84107 Earnest loans are serviced by Earnest Operations LLC (NMLS #1204917) with support from Navient Solutions, LLC (NMLS #212430). One American Bank, FinWise Bank, and Earnest LLC and its subsidiaries, including Earnest Operations LLC, are not sponsored by |
Bank, FinWise Bank, and Earnest LLC and its subsidiaries, including Earnest Operations LLC, are not sponsored by or agencies of the United States of America. For California residents (Student Loan Refinance Only): Loans will be arranged or made pursuant to a California Financing Law License. Contact Us: 888-601-2801 Contact Us: 888-601-2801 © 2023 Earnest LLC. All rights reserved. | Private Student Loans, Pick What You Pay | Earnest | https://www.earnest.com/student-loans | ###Instruction Tell me about:
Private Student Loans, Pick What You Pay | Earnest
from web page:
https://www.earnest.com/student-loans
###Response
Bank, FinWise Bank, and Earnest LLC and its subsidiaries, including Earnest Operations LLC, are not sponsored by or agencies of the United States of America. For California residents (Student Loan Refinance Only): Loans will be arranged or made pursuant to a California Financing Law License. Contact Us: 888-601-2801 Contact Us: 888-601-2801 © 2023 Earnest LLC. All rights reserved. |
Skip to content student-loans The Differences Between Parent PLUS Loans and Private Student Loans for Parents By Carolyn Morris Updated on December 18, 2023 Cosign today. Help a student get approved. Learn more Congratulations parents! Your child is headed off to college or graduate school. This is the moment you have probably been planning for years: Paying for their education.
In the ideal scenario, their education can be funded either through your savings and/or scholarships. But borrowing money may also need to be part of the financial equation for students and parents alike.
College students themselves may be eligible to borrow both federal and private loans under their own name, or with a cosigner. Parents can also borrow student loans for their child and there are both federal and private loans available just for them. Below, we’ll focus only on the loans available for parents.
Read more: How Much Does College Cost?
Do You Qualify for Parent PLUS Loans? Complete the FAFSA | Differences Between Parent PLUS Loans & Private Parent Student Loans | https://www.earnest.com/blog/parent-plus-loan-is-more-expensive-than-you-think/ | ###Instruction Tell me about:
Differences Between Parent PLUS Loans & Private Parent Student Loans
from web page:
https://www.earnest.com/blog/parent-plus-loan-is-more-expensive-than-you-think/
###Response
Skip to content student-loans The Differences Between Parent PLUS Loans and Private Student Loans for Parents By Carolyn Morris Updated on December 18, 2023 Cosign today. Help a student get approved. Learn more Congratulations parents! Your child is headed off to college or graduate school. This is the moment you have probably been planning for years: Paying for their education.
In the ideal scenario, their education can be funded either through your savings and/or scholarships. But borrowing money may also need to be part of the financial equation for students and parents alike.
College students themselves may be eligible to borrow both federal and private loans under their own name, or with a cosigner. Parents can also borrow student loans for their child and there are both federal and private loans available just for them. Below, we’ll focus only on the loans available for parents.
Read more: How Much Does College Cost?
Do You Qualify for Parent PLUS Loans? Complete the FAFSA |
Read more: How Much Does College Cost?
Do You Qualify for Parent PLUS Loans? Complete the FAFSA
No matter what your financial situation, the first step for parents and college-bound students is completing the FAFSA, or the Free Application for Student Aid.
Graduate school students are typically considered independent students and do not need parents’ information to complete the FAFSA.
This form will ask for your family finances to determine how much your child (who is considered a dependent as an undergraduate) is eligible to receive in financial aid and borrow based on the school’s cost of attendance.
You also may be eligible to borrow through the federal government’s Parent PLUS Loan program. However, do not automatically assume these federal loans are the best borrowing option for parents.
Disadvantages of the Parent PLUS Loan Program | Differences Between Parent PLUS Loans & Private Parent Student Loans | https://www.earnest.com/blog/parent-plus-loan-is-more-expensive-than-you-think/ | ###Instruction Tell me about:
Differences Between Parent PLUS Loans & Private Parent Student Loans
from web page:
https://www.earnest.com/blog/parent-plus-loan-is-more-expensive-than-you-think/
###Response
Read more: How Much Does College Cost?
Do You Qualify for Parent PLUS Loans? Complete the FAFSA
No matter what your financial situation, the first step for parents and college-bound students is completing the FAFSA, or the Free Application for Student Aid.
Graduate school students are typically considered independent students and do not need parents’ information to complete the FAFSA.
This form will ask for your family finances to determine how much your child (who is considered a dependent as an undergraduate) is eligible to receive in financial aid and borrow based on the school’s cost of attendance.
You also may be eligible to borrow through the federal government’s Parent PLUS Loan program. However, do not automatically assume these federal loans are the best borrowing option for parents.
Disadvantages of the Parent PLUS Loan Program |
Disadvantages of the Parent PLUS Loan Program
Unlike the Stafford loans that are offered to students which have no credit check and the lowest rates offered by the government, Parents PLUS loans are among the priciest federal student loans and do require a minimal credit check. Not only are the interest rates higher than Stafford loans, they also have a kind of hidden cost—every PLUS loan has a hefty origination fee.
Parent PLUS Loan interest rates and fees are high
Parent PLUS loans have a fixed interest rate for the entire term of the loan. The origination fee on top of the loan is a percentage of the loan amount. Visit the U.S. Department of Education’s Parent PLUS Loan page to learn about the current interest rate and loan fee rate for Parent PLUS Loans.
Repayment of Parent PLUS Loans starts right away | Differences Between Parent PLUS Loans & Private Parent Student Loans | https://www.earnest.com/blog/parent-plus-loan-is-more-expensive-than-you-think/ | ###Instruction Tell me about:
Differences Between Parent PLUS Loans & Private Parent Student Loans
from web page:
https://www.earnest.com/blog/parent-plus-loan-is-more-expensive-than-you-think/
###Response
Disadvantages of the Parent PLUS Loan Program
Unlike the Stafford loans that are offered to students which have no credit check and the lowest rates offered by the government, Parents PLUS loans are among the priciest federal student loans and do require a minimal credit check. Not only are the interest rates higher than Stafford loans, they also have a kind of hidden cost—every PLUS loan has a hefty origination fee.
Parent PLUS Loan interest rates and fees are high
Parent PLUS loans have a fixed interest rate for the entire term of the loan. The origination fee on top of the loan is a percentage of the loan amount. Visit the U.S. Department of Education’s Parent PLUS Loan page to learn about the current interest rate and loan fee rate for Parent PLUS Loans.
Repayment of Parent PLUS Loans starts right away |
Repayment of Parent PLUS Loans starts right away
There’s another key difference between parent loans and students’ loans: Parents who use PLUS federal loans are expected to start paying once the loan is disbursed. However, parents can request a deferment while their child is in school—and repayment would start six months after graduation, for example.
Are There Any Benefits to Parent PLUS Loans?
The one benefit that Parent PLUS loans do have in common with other student loans is that they are eligible for one of the government’s income-based repayment programs. However, even that benefit is limited for parents. Qualified Parent PLUS loans are only eligible for the income-contingent repayment, which caps payments at 20% of income with forgiveness after 25 years.
While these PLUS loans might be bundled up into an award letter from a school’s financial aid offer, parents should consider all their options first. As always, it pays to shop around and find the best fit for each family. | Differences Between Parent PLUS Loans & Private Parent Student Loans | https://www.earnest.com/blog/parent-plus-loan-is-more-expensive-than-you-think/ | ###Instruction Tell me about:
Differences Between Parent PLUS Loans & Private Parent Student Loans
from web page:
https://www.earnest.com/blog/parent-plus-loan-is-more-expensive-than-you-think/
###Response
Repayment of Parent PLUS Loans starts right away
There’s another key difference between parent loans and students’ loans: Parents who use PLUS federal loans are expected to start paying once the loan is disbursed. However, parents can request a deferment while their child is in school—and repayment would start six months after graduation, for example.
Are There Any Benefits to Parent PLUS Loans?
The one benefit that Parent PLUS loans do have in common with other student loans is that they are eligible for one of the government’s income-based repayment programs. However, even that benefit is limited for parents. Qualified Parent PLUS loans are only eligible for the income-contingent repayment, which caps payments at 20% of income with forgiveness after 25 years.
While these PLUS loans might be bundled up into an award letter from a school’s financial aid offer, parents should consider all their options first. As always, it pays to shop around and find the best fit for each family. |
Advantages of Private Student Loans for Parents
Private student loans may be a good alternative for parents who are looking to borrow for their student’s education¹. These can be used to pay for both undergraduate and graduate education.
Low-interest rates for private students loans for parents
With private loans, the applicant’s rate will be based on their financial profile—which may mean those with a great credit history may get rates that are better than the government’s Parent PLUS loans. Rates for private student loans vary so it’s best to check each lender’s website for the latest rate information.
Check Earnest’s interest rates for private parent student loans on our Private Parent Loan page.
No origination fees for private parent student loans | Differences Between Parent PLUS Loans & Private Parent Student Loans | https://www.earnest.com/blog/parent-plus-loan-is-more-expensive-than-you-think/ | ###Instruction Tell me about:
Differences Between Parent PLUS Loans & Private Parent Student Loans
from web page:
https://www.earnest.com/blog/parent-plus-loan-is-more-expensive-than-you-think/
###Response
Advantages of Private Student Loans for Parents
Private student loans may be a good alternative for parents who are looking to borrow for their student’s education¹. These can be used to pay for both undergraduate and graduate education.
Low-interest rates for private students loans for parents
With private loans, the applicant’s rate will be based on their financial profile—which may mean those with a great credit history may get rates that are better than the government’s Parent PLUS loans. Rates for private student loans vary so it’s best to check each lender’s website for the latest rate information.
Check Earnest’s interest rates for private parent student loans on our Private Parent Loan page.
No origination fees for private parent student loans |
No origination fees for private parent student loans
The great cost savings, however, is in the fees. Many newer private student loan lenders do not have origination fees. Some lenders may also allow borrowers other than the immediate parents to borrow (e.g. extended family). Lastly, borrowers typically have a choice between fixed or variable-rate loans with private loans.
Loans are just one piece of the discussion you’re likely having around how you and your child will pay for college.
Refinancing Your Existing Parent Loans | Differences Between Parent PLUS Loans & Private Parent Student Loans | https://www.earnest.com/blog/parent-plus-loan-is-more-expensive-than-you-think/ | ###Instruction Tell me about:
Differences Between Parent PLUS Loans & Private Parent Student Loans
from web page:
https://www.earnest.com/blog/parent-plus-loan-is-more-expensive-than-you-think/
###Response
No origination fees for private parent student loans
The great cost savings, however, is in the fees. Many newer private student loan lenders do not have origination fees. Some lenders may also allow borrowers other than the immediate parents to borrow (e.g. extended family). Lastly, borrowers typically have a choice between fixed or variable-rate loans with private loans.
Loans are just one piece of the discussion you’re likely having around how you and your child will pay for college.
Refinancing Your Existing Parent Loans |
If you have existing Parent PLUS loans, remember that refinancing your parent loans² can be a smart move to reduce your interest rate or change the loan terms so your monthly payment better matches your monthly budget3. Cosign today. Help a student get approved. Learn more Carolyn Morris Carolyn is a content marketer and editor who specializes in financial services. With over a decade of experience in the financial services industry, Carolyn has a passion for demystifying the loan application and repayment process for students and their families Disclaimer: This blog post provides personal finance educational information, and it is not intended to provide legal, financial, or tax advice. 1 Before applying for private student loans, it’s best to maximize your other sources of financial aid first. It’s recommended to use a 3-step approach to assembling the funds you need: 1) Look for funds you don’t have to pay back, like scholarships, grant, and work-study opportunities. 2) Next, fill out a FAFSA(R) form to apply for federal student loans. Federal Direct subsidized and unsubsidized loans, excluding PLUS Loan for Parents and PLUS Loan for Graduate and Professional | Differences Between Parent PLUS Loans & Private Parent Student Loans | https://www.earnest.com/blog/parent-plus-loan-is-more-expensive-than-you-think/ | ###Instruction Tell me about:
Differences Between Parent PLUS Loans & Private Parent Student Loans
from web page:
https://www.earnest.com/blog/parent-plus-loan-is-more-expensive-than-you-think/
###Response
If you have existing Parent PLUS loans, remember that refinancing your parent loans² can be a smart move to reduce your interest rate or change the loan terms so your monthly payment better matches your monthly budget3. Cosign today. Help a student get approved. Learn more Carolyn Morris Carolyn is a content marketer and editor who specializes in financial services. With over a decade of experience in the financial services industry, Carolyn has a passion for demystifying the loan application and repayment process for students and their families Disclaimer: This blog post provides personal finance educational information, and it is not intended to provide legal, financial, or tax advice. 1 Before applying for private student loans, it’s best to maximize your other sources of financial aid first. It’s recommended to use a 3-step approach to assembling the funds you need: 1) Look for funds you don’t have to pay back, like scholarships, grant, and work-study opportunities. 2) Next, fill out a FAFSA(R) form to apply for federal student loans. Federal Direct subsidized and unsubsidized loans, excluding PLUS Loan for Parents and PLUS Loan for Graduate and Professional |
subsidized and unsubsidized loans, excluding PLUS Loan for Parents and PLUS Loan for Graduate and Professional Students which require a credit check and a credit worthy endorser if the parent or graduate or professional student has adverse credit, do not require a credit check or cosigner, and offer various protections if your struggling with your payments. 3) Finally, consider a private student loan to cover any difference between your total cost of attendance and the amount not covered in steps 1 and 2. For more information, visit the Department of Education website at https://studentaid.ed.gov. 2 You may lose benefits associated with your underlying federal and/or private loans if you refinance such as federal Income-driven Repayment Plans, Economic Hardship Deferment, Public Service Loan Forgiveness, or other deferment and forbearance options. If you file for bankruptcy, you may still be required to pay back this loan. 3 Choosing to refinance to a longer term may lower your monthly payment, but increase the amount of interest you may pay. Choosing to refinance to a shorter term may increase your monthly payment, but lower the amount of interest you may pay. Review | Differences Between Parent PLUS Loans & Private Parent Student Loans | https://www.earnest.com/blog/parent-plus-loan-is-more-expensive-than-you-think/ | ###Instruction Tell me about:
Differences Between Parent PLUS Loans & Private Parent Student Loans
from web page:
https://www.earnest.com/blog/parent-plus-loan-is-more-expensive-than-you-think/
###Response
subsidized and unsubsidized loans, excluding PLUS Loan for Parents and PLUS Loan for Graduate and Professional Students which require a credit check and a credit worthy endorser if the parent or graduate or professional student has adverse credit, do not require a credit check or cosigner, and offer various protections if your struggling with your payments. 3) Finally, consider a private student loan to cover any difference between your total cost of attendance and the amount not covered in steps 1 and 2. For more information, visit the Department of Education website at https://studentaid.ed.gov. 2 You may lose benefits associated with your underlying federal and/or private loans if you refinance such as federal Income-driven Repayment Plans, Economic Hardship Deferment, Public Service Loan Forgiveness, or other deferment and forbearance options. If you file for bankruptcy, you may still be required to pay back this loan. 3 Choosing to refinance to a longer term may lower your monthly payment, but increase the amount of interest you may pay. Choosing to refinance to a shorter term may increase your monthly payment, but lower the amount of interest you may pay. Review |
to refinance to a shorter term may increase your monthly payment, but lower the amount of interest you may pay. Review your loan documentation for the total cost of your refinanced loan. Let us do the math Use our calculators to aggregate multiple student loans or preview your potential savings from refinancing with Earnest. I want to Refi my student loan Consolidate my student loans Current Loan Balance Next: Add Your New Loan Related Articles Paying for Medical School with Loans 10 min. read The Pros and Cons of Grad School: 12 Points to Consider 11 min. read How Much Can I Get In Student Loans? 18 min. read Earnest Loans are made by Earnest Operations LLC or One American Bank, Member FDIC, or FinWise Bank, Member FDIC:. Earnest Operations LLC NMLS #1204917 nmlsconsumeraccess.org List of licensed states 535 Mission St., Suite 1663, San Francisco, CA 94105 One American Bank 515 S. Minnesota Ave Sioux Falls, SD 57104 FinWise Bank, Member FDIC 756 East Winchester Suite 100 Murray, UT 84107 Earnest loans are serviced by Earnest Operations LLC (NMLS #1204917) with support from Navient Solutions, LLC (NMLS #212430). One American Bank, FinWise Bank, and Earnest LLC and its | Differences Between Parent PLUS Loans & Private Parent Student Loans | https://www.earnest.com/blog/parent-plus-loan-is-more-expensive-than-you-think/ | ###Instruction Tell me about:
Differences Between Parent PLUS Loans & Private Parent Student Loans
from web page:
https://www.earnest.com/blog/parent-plus-loan-is-more-expensive-than-you-think/
###Response
to refinance to a shorter term may increase your monthly payment, but lower the amount of interest you may pay. Review your loan documentation for the total cost of your refinanced loan. Let us do the math Use our calculators to aggregate multiple student loans or preview your potential savings from refinancing with Earnest. I want to Refi my student loan Consolidate my student loans Current Loan Balance Next: Add Your New Loan Related Articles Paying for Medical School with Loans 10 min. read The Pros and Cons of Grad School: 12 Points to Consider 11 min. read How Much Can I Get In Student Loans? 18 min. read Earnest Loans are made by Earnest Operations LLC or One American Bank, Member FDIC, or FinWise Bank, Member FDIC:. Earnest Operations LLC NMLS #1204917 nmlsconsumeraccess.org List of licensed states 535 Mission St., Suite 1663, San Francisco, CA 94105 One American Bank 515 S. Minnesota Ave Sioux Falls, SD 57104 FinWise Bank, Member FDIC 756 East Winchester Suite 100 Murray, UT 84107 Earnest loans are serviced by Earnest Operations LLC (NMLS #1204917) with support from Navient Solutions, LLC (NMLS #212430). One American Bank, FinWise Bank, and Earnest LLC and its |
with support from Navient Solutions, LLC (NMLS #212430). One American Bank, FinWise Bank, and Earnest LLC and its subsidiaries, including Earnest Operations LLC, are not sponsored by or agencies of the United States of America. For California residents (Student Loan Refinance Only): Loans will be arranged or made pursuant to a California Financing Law License. Contact Us: 888-601-2801 Contact Us: 888-601-2801 © 2023 Earnest LLC. All rights reserved. | Differences Between Parent PLUS Loans & Private Parent Student Loans | https://www.earnest.com/blog/parent-plus-loan-is-more-expensive-than-you-think/ | ###Instruction Tell me about:
Differences Between Parent PLUS Loans & Private Parent Student Loans
from web page:
https://www.earnest.com/blog/parent-plus-loan-is-more-expensive-than-you-think/
###Response
with support from Navient Solutions, LLC (NMLS #212430). One American Bank, FinWise Bank, and Earnest LLC and its subsidiaries, including Earnest Operations LLC, are not sponsored by or agencies of the United States of America. For California residents (Student Loan Refinance Only): Loans will be arranged or made pursuant to a California Financing Law License. Contact Us: 888-601-2801 Contact Us: 888-601-2801 © 2023 Earnest LLC. All rights reserved. |
Sign InCheck My Rate Updated December 13, 2023 REFINANCE STUDENT LOANS There’s a faster way to pay off your student loans Take control of your student loans. Refinancing could help you pay off your debt faster so you can focus on your future. Explore My Rates APR Starting at . % fixed APR Starting at . % variable (including 0.25% Auto Pay discount) Trusted by thousands of clients from Why Earnest? Rates How it Works Reviews FAQs Check My Rate As was announced by the U.S. Department of Education (ED), federal student loans have resumed accruing interest starting September 1, 2023, and federal student loan payments were reinstated starting in October. Please note that you may lose benefits associated with your underlying federal loans, such as federal Income-driven Repayment Plans (an example of which is the SAVE plan), Economic Hardship Deferment, Public Service Loan Forgiveness, or other deferment and forbearance options, if you refinance into a private loan. If you file for bankruptcy, you may still be required to pay back this loan. See https://studentaid.gov for more information. WHY EARNEST? Easy refinancing, clear progress With Earnest, you get the options you need to | Refinance Student Loans: Rated 5/5 on NerdWallet - Earnest | https://www.earnest.com/refinance-student-loans | ###Instruction Tell me about:
Refinance Student Loans: Rated 5/5 on NerdWallet - Earnest
from web page:
https://www.earnest.com/refinance-student-loans
###Response
Sign InCheck My Rate Updated December 13, 2023 REFINANCE STUDENT LOANS There’s a faster way to pay off your student loans Take control of your student loans. Refinancing could help you pay off your debt faster so you can focus on your future. Explore My Rates APR Starting at . % fixed APR Starting at . % variable (including 0.25% Auto Pay discount) Trusted by thousands of clients from Why Earnest? Rates How it Works Reviews FAQs Check My Rate As was announced by the U.S. Department of Education (ED), federal student loans have resumed accruing interest starting September 1, 2023, and federal student loan payments were reinstated starting in October. Please note that you may lose benefits associated with your underlying federal loans, such as federal Income-driven Repayment Plans (an example of which is the SAVE plan), Economic Hardship Deferment, Public Service Loan Forgiveness, or other deferment and forbearance options, if you refinance into a private loan. If you file for bankruptcy, you may still be required to pay back this loan. See https://studentaid.gov for more information. WHY EARNEST? Easy refinancing, clear progress With Earnest, you get the options you need to |
for more information. WHY EARNEST? Easy refinancing, clear progress With Earnest, you get the options you need to refinance your student loans to fit your life. And the option to refinance later when life changes. Combine your private and federal loans | Refinance Student Loans: Rated 5/5 on NerdWallet - Earnest | https://www.earnest.com/refinance-student-loans | ###Instruction Tell me about:
Refinance Student Loans: Rated 5/5 on NerdWallet - Earnest
from web page:
https://www.earnest.com/refinance-student-loans
###Response
for more information. WHY EARNEST? Easy refinancing, clear progress With Earnest, you get the options you need to refinance your student loans to fit your life. And the option to refinance later when life changes. Combine your private and federal loans |
Save with Auto Pay and never miss a payment
Choose a payment amount that fits your budget
Select biweekly or monthly payments
Increase payments to pay off your loan faster
Adjust your payment date
Make extra or early payments with no fees | Refinance Student Loans: Rated 5/5 on NerdWallet - Earnest | https://www.earnest.com/refinance-student-loans | ###Instruction Tell me about:
Refinance Student Loans: Rated 5/5 on NerdWallet - Earnest
from web page:
https://www.earnest.com/refinance-student-loans
###Response
Save with Auto Pay and never miss a payment
Choose a payment amount that fits your budget
Select biweekly or monthly payments
Increase payments to pay off your loan faster
Adjust your payment date
Make extra or early payments with no fees |
Skip a payment without penalties Check My Rate Learn More About Refinancing Student Loans Refinance Private vs Federal Student Loans Refinancing federal student loans is not the same as refinancing private student loans. Here’s why. Refinance vs. Consolidating The difference between refinancing and consolidating student loans, which one is right for you? Learn more. What is Student Loan Refinancing Find out what student loan refinancing is, how it works, and how it could benefit you. Learn more. Find a low interest rate We work hard to give you low rates to help you pay off your debt faster Check Your Rate Starting at 5.99% ( including 0.25% Auto Pay discount ) variable rates May fluctuate over time with the market Starting at 5.19% ( including 0.25% Auto Pay discount ) fixed rates Stay the same despite market conditions Starting at 5.99% ( including 0.25% Auto Pay discount ) variable rates May fluctuate over time with the market Starting at 5.19% ( including 0.25% Auto Pay discount ) fixed rates Stay the same despite market conditions These are our lowest starting rates and contain our 0.25% Auto Pay discount from a checking or savings account. Some borrowers may see higher | Refinance Student Loans: Rated 5/5 on NerdWallet - Earnest | https://www.earnest.com/refinance-student-loans | ###Instruction Tell me about:
Refinance Student Loans: Rated 5/5 on NerdWallet - Earnest
from web page:
https://www.earnest.com/refinance-student-loans
###Response
Skip a payment without penalties Check My Rate Learn More About Refinancing Student Loans Refinance Private vs Federal Student Loans Refinancing federal student loans is not the same as refinancing private student loans. Here’s why. Refinance vs. Consolidating The difference between refinancing and consolidating student loans, which one is right for you? Learn more. What is Student Loan Refinancing Find out what student loan refinancing is, how it works, and how it could benefit you. Learn more. Find a low interest rate We work hard to give you low rates to help you pay off your debt faster Check Your Rate Starting at 5.99% ( including 0.25% Auto Pay discount ) variable rates May fluctuate over time with the market Starting at 5.19% ( including 0.25% Auto Pay discount ) fixed rates Stay the same despite market conditions Starting at 5.99% ( including 0.25% Auto Pay discount ) variable rates May fluctuate over time with the market Starting at 5.19% ( including 0.25% Auto Pay discount ) fixed rates Stay the same despite market conditions These are our lowest starting rates and contain our 0.25% Auto Pay discount from a checking or savings account. Some borrowers may see higher |
rates and contain our 0.25% Auto Pay discount from a checking or savings account. Some borrowers may see higher rates based on their credit. Variable rates not available in AK, IL, MN, NH, OH, TN, and TX. Here’s how it works 1 Check your rate in 3 minutes Get a quick rate estimate with no impact to your credit score. 2 Submit an application Fill out your application online or over the phone to secure a low rate. 3 Customize your loan Choose your rate, term, and payment amount that works for your budget. Check My Rate ABOUT REFINANCING An easier way to pay off your student loans Simplify your loans You could: get a better rate, remove a cosigner, and combine all your loans into one easy payment. Pay off debt faster You could pay more each month with a lower interest rate for faster pay-off. Focus on your goals Or you could lower your payments to build up savings, buy a house, or contribute to your retirement. Check My Rate REVIEWSHere’s why our clients love us Show previous reviews “What a relief Compared with other refinance options, Earnest offered me the best rate and was the most transparent.” *Edited for clarity and brevity Stephanie ★★★★★ “Happy I found Earnest The approval process was much | Refinance Student Loans: Rated 5/5 on NerdWallet - Earnest | https://www.earnest.com/refinance-student-loans | ###Instruction Tell me about:
Refinance Student Loans: Rated 5/5 on NerdWallet - Earnest
from web page:
https://www.earnest.com/refinance-student-loans
###Response
rates and contain our 0.25% Auto Pay discount from a checking or savings account. Some borrowers may see higher rates based on their credit. Variable rates not available in AK, IL, MN, NH, OH, TN, and TX. Here’s how it works 1 Check your rate in 3 minutes Get a quick rate estimate with no impact to your credit score. 2 Submit an application Fill out your application online or over the phone to secure a low rate. 3 Customize your loan Choose your rate, term, and payment amount that works for your budget. Check My Rate ABOUT REFINANCING An easier way to pay off your student loans Simplify your loans You could: get a better rate, remove a cosigner, and combine all your loans into one easy payment. Pay off debt faster You could pay more each month with a lower interest rate for faster pay-off. Focus on your goals Or you could lower your payments to build up savings, buy a house, or contribute to your retirement. Check My Rate REVIEWSHere’s why our clients love us Show previous reviews “What a relief Compared with other refinance options, Earnest offered me the best rate and was the most transparent.” *Edited for clarity and brevity Stephanie ★★★★★ “Happy I found Earnest The approval process was much |
transparent.” *Edited for clarity and brevity Stephanie ★★★★★ “Happy I found Earnest The approval process was much better than other companies and truly focused on helping people reduce their interest rates." *Edited for brevity Lauren ★★★★★ "The best place to refinance In only 5 minutes I was approved at half the monthly cost and interest percentage! I'm glad I went through Earnest!” *Edited for brevity Ryan ★★★★★ "Such a stress-reliever For the first time, it feels like I may be able to actually pay down my student loan debt and have some control over my future.” *Edited for brevity Courtney ★★★★★ “Earnest is awesome Got a much better rate with them and was able to refinance again when my credit score got better!” *Edited for brevity Sabrina ★★★★★ Show next reviews The right partner mattersThe right partner matters See why Earnest is the top choice SoFi Laurel Road Earnest Horizontal Logo SoFi Laurel Road in-house servicing in-house servicing in-house servicing customized loan terms customized loan terms customized loan terms skip 1 payment a year skip 1 payment a year skip 1 payment a year biweekly autopayments biweekly autopayments biweekly autopayments * Feature | Refinance Student Loans: Rated 5/5 on NerdWallet - Earnest | https://www.earnest.com/refinance-student-loans | ###Instruction Tell me about:
Refinance Student Loans: Rated 5/5 on NerdWallet - Earnest
from web page:
https://www.earnest.com/refinance-student-loans
###Response
transparent.” *Edited for clarity and brevity Stephanie ★★★★★ “Happy I found Earnest The approval process was much better than other companies and truly focused on helping people reduce their interest rates." *Edited for brevity Lauren ★★★★★ "The best place to refinance In only 5 minutes I was approved at half the monthly cost and interest percentage! I'm glad I went through Earnest!” *Edited for brevity Ryan ★★★★★ "Such a stress-reliever For the first time, it feels like I may be able to actually pay down my student loan debt and have some control over my future.” *Edited for brevity Courtney ★★★★★ “Earnest is awesome Got a much better rate with them and was able to refinance again when my credit score got better!” *Edited for brevity Sabrina ★★★★★ Show next reviews The right partner mattersThe right partner matters See why Earnest is the top choice SoFi Laurel Road Earnest Horizontal Logo SoFi Laurel Road in-house servicing in-house servicing in-house servicing customized loan terms customized loan terms customized loan terms skip 1 payment a year skip 1 payment a year skip 1 payment a year biweekly autopayments biweekly autopayments biweekly autopayments * Feature |
1 payment a year skip 1 payment a year biweekly autopayments biweekly autopayments biweekly autopayments * Feature comparison current as of November 1, 2022 Get the FAQs on student loan refinancing Should I refinance my student loans? Refinancing student loans makes sense for people who are eligible for a lower interest rate. People with undergraduate and graduate degrees are eligible for refinancing. You could apply for refinancing after graduation, but most people wait until after their deferment period is over (especially for subsidized student loans where interest does not accrue during the deferment period). | Refinance Student Loans: Rated 5/5 on NerdWallet - Earnest | https://www.earnest.com/refinance-student-loans | ###Instruction Tell me about:
Refinance Student Loans: Rated 5/5 on NerdWallet - Earnest
from web page:
https://www.earnest.com/refinance-student-loans
###Response
1 payment a year skip 1 payment a year biweekly autopayments biweekly autopayments biweekly autopayments * Feature comparison current as of November 1, 2022 Get the FAQs on student loan refinancing Should I refinance my student loans? Refinancing student loans makes sense for people who are eligible for a lower interest rate. People with undergraduate and graduate degrees are eligible for refinancing. You could apply for refinancing after graduation, but most people wait until after their deferment period is over (especially for subsidized student loans where interest does not accrue during the deferment period). |