LendKey Student Loans Review 2021 | US News

LendKey’s digital platform connects borrowers who need private student loans or refinancing loans with credit unions and community banks. Since 2009, LendKey has helped more than 119,000 people by funding $4 billion in loans. The company offers fixed- and variable-rate loans for undergraduate and graduate students.

Borrowers can choose between fixed and variable rates for:

The application process depends on whether you are taking out a new loan or refinancing. Either way, you apply online, and LendKey will match you with the best lender for your needs.

For new loans: You can apply if you are enrolled at least half-time in a degree-granting program from an approved school. If you lack credit history and steady income, you may need a co-signer for your application.

The company recommends applying at least one month before tuition is due. Processing and certifying a loan may take several weeks but generally happens in less than 30 days, according to LendKey.

You may receive conditional approval for your loan quickly after initial review of your application and credit report. But final approval won’t come until after you submit supporting documents and your school certifies the loan.

For student loan refinancing: Private and federal loans in the student’s name can be refinanced with LendKey partners. Parent PLUS loans, however, cannot be refinanced through LendKey at this time.

You can refinance your loans even if you are in school, as long as you graduated with at least an associate degree from a participating Title IV institution. But you might not want to: You will have to start paying your loans right away, and you could lose certain borrower protections.

If you are ready to refinance, you will start with LendKey’s “check your rate” tool online to estimate annual percentage rates and terms. The tool uses a soft credit inquiry that will not hurt your credit. If you select a loan and apply for it, the lender will run a hard inquiry that might temporarily lower your credit score.

Next, you will indicate 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. After your documents have been approved, you will electronically review your loan disclosures and sign your loan agreement before LendKey pays off your old loans and creates a new refinanced loan.

Generally, this process takes at least 10 days and may be up to 30 days from the time you sign your loan agreement to the time LendKey pays off your loan. You are responsible for making your monthly payment with your previous loan servicer until that time.

Terms, fees and conditions hinge on your choice of loan. However, LendKey services all loans, and all applicants must be U.S. citizens or permanent residents and be at least the age of majority where they live.

The company advertises private student loans with fixed APRs from 3.99% or variable APRs from 1.49% when you opt for autopay. You may be able to borrow up to 100% of your school-certified cost of attendance, which can include tuition, room and board, books, and other related expenses.

You can apply to receive some or all of your funding with one application and one credit check, or you can borrow for one academic period. Interest only accrues on what you borrow, and you can cancel any additional future disbursements with no penalty.

If you are refinancing, you can choose from terms of five to 20 years and fixed APRs from 2.95% or variable APRs from 1.9% with autopay.

The minimum loan amount for refinancing is $5,000; it is $10,001 in Arizona, $10,001 in Connecticut; and $6,000 in Massachusetts. The maximum is $125,000 with an undergraduate degree, $175,000 with a graduate degree and $300,000 with select medical degrees.

Regardless of the loan you choose, your interest rate will be determined by a review of your credit profile, and a co-signer could help you obtain a lower rate. You can check your refinance rates with no harm to your credit on the lender’s website. LendKey’s online refinancing calculator and payment calculator can help you estimate monthly payments.

Borrowers do not pay either application fees or origination fees, but some lenders charges late fees and insufficient funds fees. Forbearance options are also available, but you will need to reach out to a customer care representative to find out what your lender offers.

The best ways to reduce the cost of your loan are to apply with a creditworthy co-signer, if possible, and to sign up for autopay.

A co-signer can help you obtain a lower interest rate than if you applied on your own. Typically, a co-signer is a creditworthy parent, grandparent or other adult who is willing to accept liability for the loan with you.

If you don’t have this option, you can still receive a 0.25 percentage point interest rate reduction by signing up to automatically deduct your monthly payments from a checking or savings account.

Borrowers need to be enrolled at least half-time in a degree-granting program from an approved school.

You should also be either a U.S. citizen or permanent resident and must be at least the age of majority where they live. If you don’t have a credit history and a steady income, you will likely need a co-signer for the application.

The company does not disclose a credit score or range of scores required by lender partners. If you are refinancing, you can see if you are eligible and check your rates without hurting your credit score.

You will receive an emailed adverse action notice if your loan application was rejected to explain the reason, according to LendKey. Another email may follow with a counteroffer, such as reapplying with a co-signer.

Forbearance options are available, but you will need to reach out to a customer service representative to find out what your lender offers. Death or disability discharge may be available at the lender’s discretion.

The company only specifies that refinancing is available in eligible states.

LendKey received 4.4 out of 5 stars from U.S. News. This rating is calculated based on the lender’s affordability, eligibility criteria and customer service. The average rating for lenders in the student loans category is 4.4 stars.

The company receives an A rating from the Better Business Bureau and an Excellent rating from Trustpilot based on about 300 customer reviews.

The Consumer Financial Protection Bureau logged three complaints in 2020 about LendKey’s student loans. The complaints were about credit monitoring or identity theft protection services, dealing with your lender or servicer, and getting a loan. Each complaint received a timely response and was closed with explanation.

You can reach out by phone or email to customer service for help applying for or managing a loan.

For new loans or student loan refinancing, you can call 888-549-9050 from 9 a.m. to 8 p.m. Eastern time Monday through Friday, fax 800-583-1416 or email [email protected]. If you already have a loan, call 888-966-9268 from 9 a.m. to 8 p.m. Eastern time Monday through Friday, fax 800-915-6912 or email [email protected].

If you have a loan, you can also sign into the LendKey portal to complete a number of tasks.

LendKey partners with credit unions and banks to offer various loans through its digital platform. Borrowers can apply online and check rates online for student loan refinancing with no harm to credit scores.

The LendKey portal allows co-signers to complete their portions of loan applications. Borrowers can also use the portal to access an account, continue a loan application, make a payment, view a statement and more.