LendKey Student Loan Refinancing Review
LendKey specializes in community lending. Instead of funding your loan directly, they’ll get your loan funded by a community lender through an entirely online process. If you have a graduate or undergraduate student loan, you may refinance through LendKey. A dedicated loan specialist will walk you through the process, from the first step to the last.
In this review, we have highlighted different aspects of refinancing with LendKey. Are you wondering if LendKey is the right move for you? Let’s find out!
|A Quick Look at LendKey Student Loan Refinancing|
|Fixed APR||3.25% – 7.26%|
|Variable APR||2.67% – 6.31%|
|Loan terms offered (years)||5, 7, 10, 15, 20|
|Balance maximum||$175k (Undergraduate) and $250k (Graduate)|
Interest rates & terms
With variable rates starting at 2.67% APR and fixed rates starting at 3.25% APR, LendKey offers some of the lowest student loan refinance rates available. Not sure which to choose? Learn the difference between a fixed and variable rate here.
Terms are also flexible, ranging from 5 to 20 years. Repayment options vary by lender and may include full payments, interest only payments, and deferred payments. Sign up for automatic debit from a checking or savings account and you’ll receive a 0.25% discount on your interest rate.
How much can you borrow with LendKey?
With LendKey, you can refinance anywhere from $7,500 to $175,000.
Eligibility requirements, interest rates, and loan terms will vary by lender. Here are some general requirements.
- 680 credit score
- Student loan amount of $7,500 to $175,000
- Income of at least $24,000
Where does LendKey stand out?
Low interest rates. Because LendKey is working with smaller, community lenders, you’ll be getting some of the lowest interest rates available.
Cosigner release. If you originally took out a student loan with a cosigner to get a lower rate, LendKey offers their borrowers the option to release their cosigner. After you have made 12 full on-time payments in a row, you can apply for a cosigner release.
Repayment options. With lots of community lenders to choose from, you can choose the best repayment options to fit your needs, including interest-only payments for up to four years.
The drawbacks of refinancing with LendKey?
Degree required. You must have completed an Undergraduate Degree (BA/BS) or a Graduate Degree (MA/MS, MBA, JD, PhD) in order to refinance with LendKey. If you didn’t complete your degree, you’ll have to look for a different lender.
Additional requirements. In order to qualify for certain offers, you’ll need to meet the additional requirements of the credit union. This could include paying a sign-up fee, belonging to an organization, attending a specific church, or living in a certain community.
LendKey has an A+ rating with the Better Business Bureau. Reviews on their site are positive and most customers cite having a dedicated loan specialist to oversee the entire process as a very positive part of their experience. In most cases, customers are asked to join a local credit union, which may incur a fee. However, in most cases, this is well worth it, since the local banks and credit unions can usually offer much better rates and terms when compared to larger banks.
Is LendKey student loan refinancing right for you?
LendKey consolidates both federal and private student loans. There can be some drawbacks to this, so it’s good to understand student loan consolidation before making any decisions. If you’re a student who’s just out of college and are expecting to have a lower salary, taking advantage of the 4-year interest-only payment plan could be advantageous. Otherwise, securing a lower interest rate on your student loans is always an advantage that’s well in reach with LendKey. When you join a local bank or credit union, you’ll also have access to additional financial products they offer, such as checking and savings accounts, as well as low-rate mortgages and auto loans.
If you are still curious about how LendKey stacks up to other lenders in the space, check out this student loan refinance lender comparison table. The table allows you to compare several lenders, including LendKey, all in one spot.
Ready to apply?
If LendKey student loan refinancing is right for you, and you are ready to apply, here are eight steps to refinancing your student loan using the LendKey platform:
- Gather your documents. This includes your pay stubs, monthly housing costs, school information, loan amount, and loan billing statements.
- Prequalification. Complete a single page form online with your personal information, loan information, and school information to see if you qualify and preview rates. This will not affect your credit score.
- Apply online. If you like what you see, continue on to complete the full application.
- Review. LendKey will review your loan application and may request additional information, like employment verification or tax returns.
- Choose a loan. Once your application is accepted, you’ll receive multiple loan offers from community banks and credit unions. Compare loan terms, rates, and fees to decide which is best for you.
- Sign loan documents. Once you’ve verified all your loan information, electronically sign the loan documents to agree to the loan terms.
- Join the credit union. If your loan is through a credit union, you’ll be asked to join, and possibly pay a fee as part of your loan process. There may also be other requirements that need to be met, such as belonging to a specific organization or having a specific career.
- Disbursement. Once your loan gets funded, your lender will pay off your existing student loan. You’ll then begin making payments to your new lender.
What You’ll Need
- Annual income.
- School information.
- Loan type(s) and amount(s).