LendKey Student Loan Refinancing Review 2024 | Is LendKey Good for Student Loans?

Are you drowning in student loan debt, desperately seeking a lifeline to financial freedom?

If so, you’re not alone.

An average student graduates college with more than $30,000 in student loans. Those who go on to Universities and Colleges will graduate with even more debt, many times in the six figures for professional degrees.

Borrowers (students) don’t always realize that their loans are costing them more than they think. Interest is tacked on to the loan amount (i.e., principal) making the total cost of the loan greater. While there is no way to eliminate student loan debt without paying it off, there are some tactics to reduce the overall cost of the principal and interest combined.

One way is with a student loan refinance.

Many borrowers are eligible to refinance but don’t know where to start. The first step is to get familiar with how student loan refinancing works.

Understanding Student Loan Refinancing: A Fresh Start

Picture this: You graduate from college, eager to embark on your professional journey, but those student loans loom overhead like storm clouds. Enter student loan refinancing – a simple yet powerful strategy that can offer a fresh start.

So, how does this Student Loan Refinance work?

Imagine replacing your existing student loans with a new one at a much lower interest rate. That means lower monthly payments and, most importantly, less money spent on interest over time.

You could be saving thousands of dollars refinancing your student loans.

Leading the charge in this financial rescue mission is LendKey. LendKey is a digital platform, a marketplace that connects borrowers who need private student loans (or refinancing loans) with lenders – non-profit credit unions and banks.

In this LendKey review article, we’ll explore how this platform can help you save money and regain control over your finances through student loan refinancing.

Save Money with Student Loan Refinancing

What is LendKey?

LendKey is a student loan marketplace, a digital platform that connects borrowers (who need private student loans or refinancing loans) with lenders (credit unions and community banks) that offer private student loans and student loan refinancing.

LendKey, founded in 2009, is a digital lending marketplace, that partners with hundreds of local and regional financial institutions, allowing borrowers to shop around and compare all the options in one place.

Since 2009, LendKey has funded more than $4.1 billion in loans and has serviced more than $2.1 billion on behalf of its partner banks and credit unions.

LendKey: Key Details | Student Loan Refinance

Loan Amount: Private loans: Up to 100% of the cost of attendance | Refinancing loans: $5,000 to $300,000

APR from: Private loans: 6.03% to 11.11% Variable APR, 4.89% to 10.39% Fixed APR (with autopay) | Refinancing loans: 5.27% to 8.18% Variable APR, 5.24% to 10.68% Fixed APR (with autopay)

Term lengths: Refinancing loans: 5 to 20 years

Grace period: 6 months

Repayment terms: Private loans: Not specified | Refinancing: 5 to 20 years

Loan types: Private, refinancing

Cosigner required? No

What Types of Student Loans Does LendKey Offer?

Borrowers can choose between fixed and variable rates for:

• Student loan refinancing.
• Graduate student loans.
• Undergraduate student loans.

How Does LendKey Work?

LendKey has made it a hassle-free application process when it comes to applying for both new and refinanced loans.

Your loan refinancing journey begins by filling out an application, and LendKey’s expert system will match you with the best lender suited to your requirements.

For those seeking new loans, LendKey suggests submitting your application at least a month before your tuition deadline. The loan processing and certification process typically takes a few weeks, often under 30 days, as per LendKey. After the initial assessment of your application and credit report, you might swiftly receive conditional loan approval. However, the final approval depends on submitting supporting documents and your school certifying the loan.

If you’re considering student loan refinancing, LendKey offers a “check your rate” tool online to estimate annual percentage rates and terms. This tool employs a soft credit check, ensuring no impact on your credit score. If you select a loan and apply for it, the lender will conduct a harder inquiry that could temporarily lower your credit score.

Next, you will choose the loans you want to refinance and provide documents such as a copy of your government-issued ID, proof of income, and statements for each loan. Once your documents have been approved, you will electronically review your loan disclosures and sign the loan agreement before LendKey pays off your old loans and creates a new refinanced loan.

Normally, this entire process takes at least 10 days, though it may extend up to 30 days from the time you sign your loan agreement to the time LendKey pays off your loan. Until that time, you are responsible for making your monthly payment with your previous loan servicer.

» RELATED: How to Get a Loan for a Small Business. Explained in 11 Crucial Steps

Pros & Cons of LendKey Student Loan Refinancing

Benefits of Using LendKey

• Lower Your Payments: You can reduce your interest rate, lower your monthly payments, and save thousands over the lifetime of your loan when you refinance student loans.
• Simplify Your Finances: Through LendKey’s lenders you’ll be able to refinance student loans, both federal and private, including graduate loans, into one convenient loan at a great rate.
• No Charges/Application/Origination Fees: When you refinance student loans through LendKey, you won’t be charged with any origination fees from the lenders.
• Flexible Options: Many lenders offer various repayment options, including fixed and variable rate loans from 5 – 20 years.
• Co-signers are optional: Co-signers are accepted but not required and may improve your chances of approval or help you obtain better terms.

Drawbacks of LendKey

• Refinancing Rate estimates are only available for refinancing.
• Some lenders may charge late and insufficient funds fees.
• Loans aren’t available in North Dakota, Nevada, Maine, Rhode Island, or West Virginia.

LendKey Student Loan Requirements

Student loan requirements can differ among lenders, yet LendKey maintains straightforward eligibility criteria. In order to qualify through LendKey, students should:

• Be enrolled at least half-time in a qualifying or eligible degree program or school.
• Hold U.S. citizenship or permanent residency.
• Attain legal adult status in their state of residence.

Additional eligibility conditions are determined by LendKey’s extensive network of over 300 partners, comprising banks and credit unions. In the end, LendKey only presents you with offers that match your eligibility status.

Who is this loan good for?

If you’re aiming to simplify the process of comparing loans, LendKey stands out as an excellent choice.

With its network, you can effortlessly review various offers from numerous smaller lenders known for competitive rates and top-notch customer service.

LendKey Student Loans Are Best for:

• Borrowers who want an Online digital application process.
• Students who plan to use a co-signer to qualify for a loan.
• Borrowers who want to check rates for student loan refinancing.
• Students looking for attractive rates, starting as low as 4.89 percent fixed APR.

Additionally, for students considering refinancing, LendKey proves to be a favorable option due to its attractive rates.

What Are LendKey’s Terms, Fees, and Conditions?

Loan Eligibility and Conditions:

• LendKey serves all types of loans.
• Applicants must be U.S. citizens or permanent residents.
• Applicants should meet the age of majority requirement in their state.

Private Student Loans:

• Fixed APRs start from 4.39%, and variable APRs from 5.84% (with autopay).
• Potential to borrow up to 100% of certified school expenses.
• Expenses covered include tuition, room and board, books, and more.
• Approval is possible for an entire academic year; interest accrues only on borrowed amounts.
• Flexibility to cancel future disbursements without penalties.

Student Loan Refinancing:

• Refinancing term options: 5 to 20 years.
• Fixed APRs from 5.24%, variable APRs from 4.76% (with autopay).
• Minimum refinancing amount: $5,000 (varies by state).
• No application or origination fees.
• Note: Some lenders may impose late fees or insufficient funds fees.

Credit Score Requirements

LendKey doesn’t reveal specific credit score requirements from lender partners. Refinancers can explore eligibility and rates without impacting their credit score.

Application Outcomes:

If your loan application is declined, LendKey sends an email explaining the reason (adverse action notice).

There’s a possibility of receiving a follow-up email offering alternatives, like reapplying with a co-signer.

LendKey Application Process

You can get preliminary loan offers by filling out a quick, simple application. You’ll need to provide information related to your income, loan amount, and the school you attended. The minimum loan amount is $5,000. Here are the maximum borrowing amounts:

• Undergraduate degree holders: $125,000
• Graduate degree holders: $175,000
• Medical degree holders: $300,000

Unlike a hard credit inquiry, LendKey’s soft credit check won’t impact your credit score. Within just a few minutes, you’ll see interest rates and loan terms on student loans from lenders that match your location and characteristics.

LendKey – Student Loan Refinancing in 5 Simple Steps

» Apply for LendKey Student Loan Refinancing

FAQs – LendKey Student Loan Refinancing