Earnest at a Glance
Here are the key facts about Earnest private student loans for the 2025-2026 school year:
- Fixed rates: 2.89% to 16.49% APR (with autopay)
- Variable rates: 4.99% to 16.85% APR (with autopay)
- Fees: Zero. No origination fee, no late payment fee, no prepayment penalty, no returned payment fee.
- Loan terms: 5, 7, 10, 12, and 15 years
- Cosigner release: Not available
- Autopay discount: 0.25% rate reduction
- Standout features: 9-month grace period and skip-a-payment (once per year)
Before applying for any private student loan, make sure you have exhausted your federal student loan options first. For the 2025-2026 school year, federal Direct Subsidized and Unsubsidized Loans carry a fixed rate of 6.39% for undergraduates and 7.94% for graduate students. Federal PLUS Loans carry a rate of 8.94%. Federal loans also offer income-driven repayment plans and potential loan forgiveness that private loans do not.
That said, the landscape is changing. The One Big Beautiful Bill Act (OBBBA) introduces caps on PLUS Loan borrowing and phases out Grad PLUS Loans entirely. These changes make private lenders like Earnest increasingly relevant for students who need to fill larger funding gaps.
Loan Types Offered
Earnest offers a focused lineup of student loans covering undergraduate, graduate, and professional programs, along with refinancing for existing student debt.
Undergraduate Student Loan
The Earnest undergraduate student loan is designed for students pursuing a bachelor's degree at an eligible four-year institution. Borrowers must be enrolled full-time and be a U.S. citizen or permanent resident (or have a cosigner who is). The loan covers educational expenses and offers multiple in-school repayment options to fit different budgets.
Graduate Student Loan
Earnest offers a general graduate student loan for students enrolled in master's or doctoral programs. This loan covers tuition and related costs for a wide range of graduate fields. The same flexible repayment options and zero-fee structure apply.
International Graduate Student Loan
For international students pursuing a graduate degree at an eligible U.S. institution, Earnest offers a dedicated loan product. International students must apply with a creditworthy U.S. citizen or permanent resident cosigner to qualify.
MBA Loan
Earnest offers a specialized loan for students pursuing a Master of Business Administration. This product is tailored to the unique cost structure of MBA programs, which often involve higher tuition and living expenses. The MBA loan includes the same repayment flexibility and zero fees as other Earnest products.
Medical School Loan
The Earnest medical school loan serves students in MD, DO, and other medical degree programs. Medical students often face some of the highest education costs, and this loan is designed to help bridge the gap after federal aid is used.
Law School Loan
Earnest offers a dedicated law school loan for students pursuing a Juris Doctor (JD) degree. Like the other professional program loans, it features the same competitive rates, zero fees, and flexible repayment terms.
Student Loan Refinancing
Earnest student loan refinancing allows borrowers to combine and refinance existing federal or private student loans into a single new loan with a potentially lower rate. Keep in mind that refinancing federal loans into a private loan means you lose access to federal benefits like income-driven repayment and Public Service Loan Forgiveness.
Current Interest Rates
Earnest offers both fixed and variable interest rates. Your rate depends on your creditworthiness, loan term, repayment option, and whether you enroll in autopay.
Fixed Rates
Fixed rates stay the same for the life of the loan. Earnest fixed APRs range from 3.14% to 16.74% without the autopay discount, or 2.89% to 16.49% with autopay enrolled. A fixed rate gives you predictable monthly payments that will not change over time, regardless of market conditions.
Variable Rates
Variable rates can change over time based on market conditions. Earnest uses the 30-day Average SOFR (Secured Overnight Financing Rate) as its benchmark index. Variable APRs range from 5.24% to 17.10% without autopay, or 4.99% to 16.85% with autopay enrolled.
Variable rates may start lower than fixed rates, but they carry the risk of increasing over the life of the loan. If you prefer predictable monthly payments, a fixed rate may be the better choice.
Autopay Discount
All Earnest borrowers can receive a 0.25% interest rate reduction by enrolling in automatic payments. The discount applies as long as autopay remains active. This is a standard benefit offered by most private student lenders.
Fees and Costs
Earnest has one of the simplest fee structures in the private student loan industry: there are no fees at all. This is a major differentiator and one of the key reasons borrowers choose Earnest.
- Origination fee: None
- Late payment fee: None
- Prepayment penalty: None
- Returned payment fee: None
Compare this to federal loans, which charge origination fees of up to 4.228% on PLUS Loans. On a $10,000 loan, that federal origination fee would cost you $422.80 upfront. With Earnest, you receive the full loan amount you are approved for.
The zero-fee policy also means that if you miss a payment, Earnest will not charge you a late fee. While you should always make payments on time to protect your credit, the absence of late fees provides a safety net that most other lenders do not offer. Even Sallie Mae charges late fees of up to $25 per missed payment.
Eligibility and Application
Who Can Apply
To apply for an Earnest student loan, you must be a U.S. citizen or permanent resident, or have a cosigner who is. You must have reached the age of majority in your state. You must be enrolled full-time at an eligible four-year institution. Earnest requires borrowers to meet its underwriting standards, which consider credit history, income, and other financial factors.
Credit Requirements
Earnest does not publish a minimum credit score for the primary borrower. The company uses an underwriting process that looks at your full financial profile, including credit history, income, savings, and other factors. If you are applying with a cosigner, they must have a minimum credit score of 650, at least 3 years of credit history, and annual income of at least $35,000.
How to Apply
You can apply online at earnest.com in about 15 minutes. You will need your Social Security number, school information, and financial details. If you are applying with a cosigner, they will need to provide their information as well. Earnest offers a rate check tool that lets you see estimated rates with a soft credit pull before submitting a full application.
Cosigner Policy
Earnest allows borrowers to apply with a cosigner, but there is one important caveat: cosigner release is not available at Earnest. This means that once a cosigner signs onto a loan, they remain responsible for the debt for the entire life of the loan. This is a notable downside compared to lenders like Sallie Mae, which offers cosigner release after 12 consecutive payments, or SoFi, which offers cosigner release after 24 payments.
Cosigner Requirements
If you apply with a cosigner, they must meet the following minimum requirements:
- Credit score of 650 or higher
- At least 3 years of credit history
- Annual income of at least $35,000
- Must be a U.S. citizen or permanent resident
What This Means for Borrowers
The lack of cosigner release is one of Earnest's biggest drawbacks. If your cosigner wants to eventually be removed from the loan, your only option is to refinance the loan into your own name once you qualify on your own. This is an important factor to discuss with your cosigner before applying. Make sure both the borrower and cosigner understand this commitment upfront.
Repayment Options
Earnest offers several in-school repayment options and a range of repayment terms. It also offers a unique skip-a-payment feature that adds extra flexibility after graduation.
Deferred Repayment
With deferred repayment, you make no payments ($0) while you are enrolled in school. Interest still accrues during this time and is added to your loan balance. After you graduate or leave school, you have a 9-month grace period before full payments begin. This option keeps your costs lowest while in school but results in a higher total loan cost over time.
Fixed Repayment
With fixed repayment, you pay $25 per month while in school. This is more than zero but less than the full interest amount. It helps reduce the total interest you will pay over the life of the loan without requiring a large monthly commitment. The 9-month grace period still applies after leaving school.
Interest-Only Repayment
With interest-only repayment, you pay only the accruing interest each month while in school. This prevents interest from capitalizing and keeps your total loan balance from growing. This option is available for cosigned loans only. After your 9-month grace period, you begin making full principal and interest payments.
Full Repayment
With full repayment, you begin making full principal and interest payments right away while still in school. This option results in the lowest total loan cost because interest does not capitalize and you start paying down your principal immediately. This option is also available for cosigned loans only.
Repayment Terms
Earnest offers repayment terms of 5, 7, 10, 12, and 15 years. The 12-year option is less common among private lenders and gives borrowers an additional choice between the standard 10 and 15-year terms. Shorter terms mean higher monthly payments but lower total interest costs. Longer terms reduce your monthly payment but increase the total amount you pay over the life of the loan.
Grace Period
All repayment options include a 9-month grace period after you graduate, leave school, or drop below the required enrollment status. During the grace period, you are not required to make payments, though you can choose to do so. Earnest's 9-month grace period is longer than the 6-month grace period offered by most private lenders and federal loans. This extra time can be valuable as you transition from school to the workforce.
Skip-a-Payment Feature
One of Earnest's most unique features is the ability to skip one payment per year without penalty. To use this feature, you must first make 6 consecutive on-time payments. After your first skip, you must make 12 more consecutive on-time payments before you can skip again. Skipped payments are not forgiven. Interest continues to accrue during the skipped month, and it is added to your remaining balance. However, the flexibility to pause a payment when times are tight is a meaningful benefit that few other lenders offer.
Borrower Benefits
Earnest offers a clean set of borrower benefits focused on flexibility and simplicity.
- 9-month grace period: Earnest gives you 3 extra months compared to the standard 6-month grace period. This gives new graduates more time to find a job and get settled before student loan payments begin.
- Skip-a-payment: You can skip one loan payment per year after making 6 consecutive on-time payments. This provides a safety net during months when money is tight. Most private lenders do not offer this benefit.
- Zero fees: No origination fee, no late payment fee, no prepayment penalty, and no returned payment fee. You get the full loan amount you are approved for, and you will never be charged extra for paying off your loan early or being a few days late.
- Flexible repayment terms: With five term options (5, 7, 10, 12, and 15 years), you can find a balance between monthly payment size and total loan cost that works for your budget.
- 0.25% autopay discount: Enroll in automatic payments and your interest rate drops by 0.25%.
- Multiple in-school repayment options: Choose from deferred, fixed ($25/month), interest-only, or full repayment while still in school.
How Earnest Compares
Earnest is one of several major private student loan lenders. Here is how it stacks up against a few well-known competitors.
Earnest vs. Sallie Mae: Sallie Mae offers a wider range of loan products, including loans for part-time students, career training programs, and dental/medical residencies. Sallie Mae also offers cosigner release after 12 consecutive payments, which Earnest does not offer at all. However, Earnest charges zero fees (Sallie Mae charges late fees), offers a 9-month grace period versus Sallie Mae's 6 months, and provides the skip-a-payment feature. If cosigner release is important to you, Sallie Mae has the advantage. If fees and repayment flexibility matter more, Earnest is the stronger choice.
Earnest vs. SoFi: Both SoFi and Earnest share a zero-fee philosophy and target borrowers with solid credit profiles. SoFi offers career coaching, unemployment protection, and a member community that Earnest does not match. SoFi also offers cosigner release after 24 payments, while Earnest does not offer cosigner release at all. On the other hand, Earnest offers a longer 9-month grace period (versus SoFi's 6 months) and the skip-a-payment feature, which SoFi does not have. Both are excellent choices, but the right pick depends on which benefits matter most to you.
Earnest vs. College Ave: College Ave offers a straightforward private student loan with similar coverage and competitive rates. College Ave also offers cosigner release, which Earnest does not. However, Earnest's zero-fee policy, 9-month grace period, and skip-a-payment feature give it an edge in borrower flexibility. College Ave may be a better fit if cosigner release is a priority.
Pros and Cons
Pros
- Zero fees of any kind, including no origination fee, no late payment fee, and no prepayment penalty
- 9-month grace period after leaving school, 3 months longer than the industry standard
- Skip-a-payment feature lets you pause one payment per year without penalty
- Competitive fixed and variable rates with a 0.25% autopay discount
- Five repayment term lengths (5, 7, 10, 12, and 15 years), including the less common 12-year option
- Multiple in-school repayment options (deferred, fixed, interest-only, full repayment)
- Specialized loans for MBA, medical school, law school, and international graduate students
- Simple, transparent online application with soft credit check for rate estimates
Cons
- No cosigner release available. Once a cosigner signs, they stay on the loan for its full life.
- Requires full-time enrollment at an eligible four-year institution
- Interest-only and full repayment options are only available for cosigned loans
- No career coaching or unemployment protection benefits (unlike SoFi)
- Variable rates can increase over time based on SOFR changes
- No hardship or income-driven repayment options after graduation
- Refinancing federal loans means losing access to federal protections like income-driven repayment and Public Service Loan Forgiveness
Frequently Asked Questions
Does Earnest charge any fees on student loans?
No. Earnest charges zero fees on its student loans. There is no origination fee, no late payment fee, no prepayment penalty, and no returned payment fee. This is one of Earnest's biggest advantages over other private lenders and federal loans, which charge origination fees of up to 4.228%.
Does Earnest offer cosigner release?
No. Earnest does not offer cosigner release on any of its student loan products. Once a cosigner signs onto an Earnest loan, they remain responsible for the debt for the entire life of the loan. If you want to remove a cosigner, your only option is to refinance the loan into your own name through Earnest or another lender once you qualify independently.
What is Earnest's skip-a-payment feature?
Earnest allows borrowers to skip one loan payment per year without penalty. To qualify, you must first make 6 consecutive on-time payments. After your first skip, you must make 12 more consecutive on-time payments before you can skip again. Interest continues to accrue during the skipped month, but there is no fee or negative mark on your credit.
How long is Earnest's grace period?
Earnest offers a 9-month grace period after you graduate, leave school, or drop below the required enrollment status. This is 3 months longer than the standard 6-month grace period offered by most private lenders and federal loans. During the grace period, you are not required to make payments, though you can choose to do so.
What credit score do I need for an Earnest student loan?
Earnest does not publish a minimum credit score for the primary borrower. The company evaluates your full financial profile, including credit history, income, savings, and other factors. If you apply with a cosigner, the cosigner must have a minimum credit score of 650, at least 3 years of credit history, and annual income of at least $35,000.
What repayment options does Earnest offer?
Earnest offers four in-school repayment options: deferred ($0 while in school), fixed ($25 per month while in school), interest-only (pay only accruing interest, cosigned loans only), and full repayment (full payments immediately, cosigned loans only). After the 9-month grace period, you make full monthly payments based on your chosen repayment term of 5, 7, 10, 12, or 15 years.
Can I refinance my student loans with Earnest?
Yes. Earnest offers student loan refinancing for both federal and private student loans. You can combine multiple loans into a single new loan with a potentially lower rate. Keep in mind that refinancing federal loans into a private loan means losing access to federal benefits like income-driven repayment plans and Public Service Loan Forgiveness.
How do Earnest variable rates work?
Earnest variable rates are based on the 30-day Average SOFR (Secured Overnight Financing Rate) plus a margin determined by your creditworthiness. As SOFR moves up or down, your variable rate adjusts accordingly. Variable APRs range from 4.99% to 16.85% with autopay. If you prefer predictable payments, consider a fixed rate instead.
The Bottom Line
Earnest is a strong private student loan option for borrowers in 2026 who value simplicity, flexibility, and a clean fee structure. Its zero-fee policy, 9-month grace period, and skip-a-payment feature combine to create one of the most borrower-friendly private loan experiences available. The range of specialized loan products for MBA, medical, law, and international graduate students makes Earnest a versatile choice across program types.
The biggest limitation is the lack of cosigner release. If your cosigner wants the option to be removed from the loan after you establish your own credit, you may want to compare Earnest with Sallie Mae or SoFi, both of which offer cosigner release programs.
Remember: always exhaust your federal student loan options before turning to private loans. Federal loans offer fixed rates, income-driven repayment plans, and forgiveness programs that private loans cannot match. But if you have used up your federal aid and still need funds, Earnest is an excellent option to consider, especially if you want a lender that keeps things simple with zero fees and gives you room to breathe with a longer grace period and the ability to skip a payment when needed.
With the OBBBA changes limiting PLUS Loan availability and eliminating Grad PLUS Loans, more students will need to explore private lending. Earnest's combination of competitive rates, zero fees, and flexible repayment features makes it well-positioned to meet that demand.
Ready to plan your student loan strategy? Create your free CollegeLens plan to compare your options and build a personalized funding roadmap.
-- Sravani at CollegeLens