Top 20 of the most commonly asked questions about Earnest

At Earnest, we understand the challenges and doubts that often come with managing your student loans¹. It can be stressful and confusing and it helps to know you’re not the only one with questions. In fact, it’s good to ask your lender lots of questions because the more you understand your loans, the better decisions you can make for your financial future.

We’ve put together a list of the top 20 questions our Client Happiness team receives from borrowers like you. So, let’s dive in and provide you with the guidance you need to make informed decisions.

Top 10 student loan questions

1. What is student loan certification and how does it work?

When you apply for a private student loan, we need to confirm with the school that you’re borrowing the correct amount. This process ensures that you’re only borrowing what you need and not taking on additional student debt. Your school’s financial aid office will work with us to certify the loan and determine the appropriate amount.

2. What is the Auto Pay discount and how does it work?

Our Auto Pay discount is designed to make managing your loan payments easier and more affordable. When you enroll in Auto Pay, your loan payments will be automatically deducted from your bank account each month. As a reward for enrolling, you’ll receive a 0.25% interest rate reduction². You can enroll in Auto Pay by logging into your Earnest account or you can reach out to our Client Happiness team and they’ll help you sign up.

3. Why didn’t the full amount I was approved for get sent to my school?

The amount you’re approved for may not always be the same as the amount disbursed to your school. This is because we work with your school’s financial aid office to ensure that the funds are used for qualified educational expenses. Sometimes, your school may adjust the loan amount based on your financial aid package and cost of attendance.

You might wonder why your school controls the amount when you are borrowing money from us. This is because funding your education works like a collaboration between us and your school. It’s designed to ensure you’re not taking on more debt than you need.

4. What repayment options do you offer while in school?

When you’re approved for a loan, you can select your payment, rate, and term. We have four different repayment options³ for student loans:

• Deferred payments: You pay nothing while in school and during your 9-month grace period after graduation⁴. Payments start when your grace period ends.

• Fixed: You pay $25 a month⁵ while you’re in school and 9 months after graduation. Once your 9-month grace period ends, you start full payments. This is our most popular option because it’s affordable for most students and could take a lot of money off your loan.

• Full repayment: You make the full payment while in school. This is the fastest way to pay off your loan.

• Interest-only: This option is only available on cosigned loans. While in school and during your 9-month grace period, you will make interest payments. After the grace period is up, you’ll be making full payments.

We recommend visiting our student loan repayment calculator to find out how each payment option impacts the total cost of your loan.

5. Can my loan cover housing and living expenses?

Yes, private student loans can cover a wide range of educational expenses, including tuition, books, supplies, and living expenses such as housing and transportation to school. However, our loans don’t cover lifestyle expenses not related to your college education such as your gym membership, car payments, or travel expenses (even if it’s to see your parents on break).

6. Does the money get sent to the student or the school?

The money is always sent to the school and not the student. Once your school receives the funds, they will apply them to your student account.

7. What happens after I sign the loan agreement?

After you sign your loan agreement, your loan will go through a process called disbursement. This means that the funds will be sent to your school, and they will apply them to your student account. You will start receiving communication from our team regarding your repayment and can always reach out to our Client Happiness team for any assistance during this time.

8. Can I refinance my student loans later on with you guys?

If you want to explore refinancing your loan down the road, we offer refinancing options that may help you save money or lower your monthly payments⁶. You should know that you will still have to apply and submit a credit check when refinancing your student loans with Earnest. As a current client we understand that may be frustrating, but we need to see your latest credit report to give you the right interest rate estimate.

9. When does my loan become active?

Your loan becomes active once the disbursement process is complete, and the funds are sent to your school. From that point, your loan will start to collect interest (this is also known as accruing interest). You can use the student loan repayment calculator to find out how much interest your loan will accrue.

10. Can I apply for funds to cover the next few years?

We don’t offer multi-year approval at this time. We understand it’s a more convenient option for some students, but we want to make sure you don’t take on more debt than absolutely necessary. If you’d like for us to offer this option in the future, we encourage you to let our Client Happiness team know and they’ll pass your feedback to our product team.

Top 10 student loan refinancing questions

1. How long does the application process take?

While everyone is different, our refinancing application can take as little as 10 minutes if you have all the necessary identification, banking, and employment documents handy. Most of our clients are approved in 24 hours, but approval can take a few days if there are details we need to check. We might ask you for more information or for additional documents when making the final decision.

2. If I refinance, how does the payoff process work with my old lender?

When you refinance your student loans with Earnest, we take care of the payoff process with your old lender. Once your application is approved, we will work directly with your current lender to get the necessary information and pay off your loan seamlessly.

The process takes about 10 days to complete. Although we’ve sent the money to your loan servicer at this point, they haven’t applied it to your account immediately. Generally speaking, most loan servicers take between 1-3 weeks to apply the money to your account.

3. How do I get payment relief on my refinanced loans?

If you’re going through a hard time financially we offer relief options including temporary forbearance and a Skip a Payment⁷ feature that allows you to skip one payment a year without fees or penalties. We evaluate forbearance on a case-by-case basis and do our best to help. If you’re struggling, talk to our team to discuss your options.

4. What are your interest rates/can you give me an estimate?

Yes, you can get a free rate check for refinancing. It only takes a few minutes and it won’t hurt your credit. Keep in mind that interest rates can vary depending on various factors, such as creditworthiness, loan term, and market conditions. Once you get a rate estimate, you can use our refinance calculator to see if your new rate will help you save.

5. I refinanced with Earnest, but should I still make payments on my old loan?

Yes, it’s important to continue making payments on your previous loan until the refinancing process is complete. It usually takes about 10 days for your loans to be transferred to Earnest. As mentioned above, most loan servicers can take anywhere between 1-3 weeks to apply money to your account once they receive the payment from us. Until that happens, keep making all of your payments on time. Once your old loan is paid off, you can start making payments on your new loan with Earnest.

6. How do bi-weekly payments work?

Bi-weekly payments can help you pay down your loan faster and save on interest over time. Instead of making one monthly payment, you make half of your regular monthly payment every two weeks. Over the course of a year, you end up making an extra payment, accelerating your progress. You can set up automatic bi-weekly payments, making it easier to stay on track.

7. Can I reapply with a cosigner to get a lower interest rate?

If you initially applied for refinancing without a cosigner but believe that adding one could help you secure a lower interest rate, you can explore the option of reapplying with a cosigner. A cosigner with a good credit history and financial stability can potentially increase your chances of getting a lower interest rate.

8. Can I refinance my child’s or spouse’s loans for them?

At this time, only the primary can apply to refinance their student loans. In the meantime, we encourage you to talk to your child or spouse about their financial situation and to check their rates.

9. Why was I approved for more than I requested?

Sometimes, this happens if the amount you’re eligible for on your credit report is more than you requested. Don’t worry, you can choose which federal or private student loans you’d like to refinance and you don’t need to agree to the full amount.

10. When will my previous loan be paid off?

It usually takes about 10 days for Earnest to pay off your previous lender. The timing can depend on multiple factors, such as the payoff process with your old lender and the timing of disbursement for your new loan with Earnest. Keep in mind that most lenders take anywhere from 1-3 weeks to apply the payment to your account once they receive it from Earnest. If it’s been more than 10 days, please let us know.

Our Client Happiness team earns rave reviews

Customer service at lenders doesn’t always have the best reputation but at Earnest, over 94% of people who speak with support give them a positive rating. We also answer customer calls in 2 minutes or less so you can take your loans off your to-do list as quickly as possible.

We believe that when you understand your loans, you’re going to make better financial decisions. That’s why our Client Happiness team is there to answer all of your questions, no matter how simple or complex. Many of them know what it feels like to struggle with student debt, and they want to do everything in their power to help.

You can learn more about our Client Happiness team here.