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LendKey Student Loan Refinancing
If you’re trying to figure out how to pay for college, you’re in good company these days. More and more students and families have turned to student loans to finance their educations. In fact, there is a whopping $1.6 trillion of student loan debt out there, with the average student carrying over $32,000 in student loans.
If you’re worried about how you’ll make those payments while you’re in college or after you graduate, it makes sense to try to obtain student loans on the best possible terms. Fortunately, there are online platforms like LendKey that can help you find the best student loans that are available. Let’s take a close look at LendKey and the services it offers, so you can see if this financial platform could help you out.
Onto our LendKey student loan refinancing review!
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What is LendKey?
What is LendKey student loan refinancing? LendKey was founded in 2007 and serves as a third-party online loan marketplace. It connects prospective borrowers who need student loans with a (generally smaller) institutional lenders, like credit unions and local banks.
The platform is dedicated to identifying the optimal loan rates for new loans, or helps borrowers refinance their student loans at more competitive rates. LendKey has recently begun providing borrowers access to home improvement loans as well.
It is important to note that LendKey is not a lender; instead, it connects you with a lender whose terms are supposed to be the most favorable for your personal financial situation.
- Private Student Loan
- Student Loan Refinancing
- Home Improvement Loans
LendKey suggests that the applicants fill out a FAFSA form before applying so they can have a better idea of the Federal-aid they are eligible for. Federal loans can often be a better option than private loans because they are generally cheaper with better conditions.
Next, we have LendKey home improvement loans, a recent addition to their range of services.
LendKey Eligibility Requirements
To qualify for the LendKey platform, you must either be a US or permanent resident. You must have at least an associate degree and attended a school authorized to receive Federal aid.
You must also have a credit score of 660 or higher. Prospective borrowers must have an income of $24,000 per year, although if the borrower has a co-signer, his or her income only needs to be $12,000 or more.
The borrower’s debt to income ration can be no more than 50 percent. Finally, LendKey’s services are not available in Maine, Nevada, North Dakota, Rhode Island, or West Virginia.
If you’re pursuing a home improvement loan through LendKey, you will need to have a contractor identified to do the improvements that LendKey approves.
The eligibility criteria are different for each service.
LendKey Private Student Loan
- Credit Score. At least 660.
- Income. At least $24000 per year.
- Debt To Income Ratio. 33% at most.
- Co-Signer. Better to have one.
- School Type. Any school.
LendKey Student Loan Refinancing
Credit Score. At least 660.
Income. At least $24000 per year. At least $12000 with a co-signer.
Debt To Income Ratio. 50% at most.
Qualification Level. Must at least have an associate degree.
School Type. Attended a school eligible for federal aid.
How it Works
Using LendKey’s student loan services is simple. You simply click on Apply Now, select the type of loan you need, and fill out the online forms. You’ll have to provide detailed information about your location, your school, or the amount of student loan debt you’re attempting to refinance.
During the application process, LendKey will conduct a hard credit check on you which could temporarily affect your credit score. LendKey will bring up several competitive loan offers for you to consider; if you select one, you will work with the lender through LendKey’s interface until your loan is approved.
LendKey’s fixed APRs vary from between 4.25 and 12.35 percent, while its variable APRs can be between 1.25 and 11.76 percent. Loans can range from $1,000 up to the total cost of school attendance and are provided on 5, 10, and 15-year terms. Loans provided through LendKey are eligible for up to 18 months forbearance, in 6-month increments. There are no application fees or prepayment penalties on LendKey loans, but late fees may apply depending on the lender.
LendKey Rates and Terms
LendKey Private Student Loans
- Borrowing limit. $1000 up to the total cost of attendance, excluding any other aid received.
- Loan term. 5 years, 10 years, 15 years.
- APR. Fixed: 4.25% – 12.35%. Variable: 1.25% – 11.76%.
- Origination Fee. No
- Prepayment Penalty. No.
- Late Fee. $5 – $15.
- Grace Period. 6 months grace period after graduating.
Applicants must be enrolled for at least half-time of a degree-awarding recognized institute, so they do not have to be a full-time student. LendKey suggests that applicants add a co-signer to their application if they are looking for reduced rates, however, this will mean that the co-signer will share the risks if the original signer defaults on loan payments.
It must be noted that the personal student loans cover the full amount of the cost of attendance unless the applicant already has other aid under the same head.
There are no origination or hidden fees apart from those mentioned. No early payment penalty means there is an incentive to save on interest payments if borrowers can pay early.
If borrowers choose the AutoPay option, they can access even lower rates than the ones mentioned above. Applicants can also use the student loan calculator on the website to get an idea of the rates involved.
LendKey Student Loan Refinancing
Borrowing Limit. Undergrad degree: $5000 – $125,000. Graduate degree: $250,000 – $300,000. Medical, Dental, and Veterinary degree: Up to $300,000.
Loan Term. 5 years, 7 years, 10 years, 15 years, 20 years.
APR. Fixed: 3.19% – 7.75%. Variable: 2.61 – 5.25%.
Prepayment Penalty. No
Origination Fee. No
Late Payment Penalty. $5 – $15
With the refinance option, eligible qualified applicants can consolidate and refinance their loans to make payments easier. LendKey requires qualification for refinancing because qualified applicants are more likely to have better credit scores and therefore a better income. This increases the chance of receiving better rates from lenders. Applicants can refinance their private and federal loans with the refinance option.
It is important to note that applicants must have studied in an eligible institution that is recognized by the lenders of LendKey. The list of eligible institutions is available on the website. Applicants can also use the student loan calculator to get an idea of the rates they may be offered if they apply for funding.
LendKey Application Process
The LendKey application process is fast and convenient. The first step is to go through a brief set of questions on the LendKey site. These questions will mainly ask the applicant about the city they live in, their school, and other similar details to match them with the best lenders possible.
Once this process is complete, the site will match applicants with a list of relevant lending programs. Applicants will then have to choose the program they think will best suit their needs and will be required to fill in another application form. This form will send all the relevant data over to the lender, and from that point, the applicant will be transferred to the lender’s site.
It is advisable for applicants to check whether they prequalify for a lender or not, as pre-qualification only requires a soft credit check that doesn’t affect credit scores. They should also look for other possible options outside of LendKey.
Once a lender is chosen for a loan through LendKey, the lender will perform a hard check that will affect credit scores.
Upon finalization of the loan, the funds will be transferred to the educational institution. It must be remembered that these are standard student loans provided by credit unions and community banks and funds are transferred directly to the schools and not the borrower.
LendKey Customer Service
LendKey can be contacted via several different methods, depending on your requirements.
- New Student Loans: If you need a new student loan, you can contact LendKey as follows:
- Telephone: (888) 549-9050, Monday-Friday 9am-8pm Eastern
- Fax: (800) 583-1416
- Email: [email protected]
- Existing Student Loans and Refinancing: Customers who want to discuss their current loans or refinance their student loans can contact LendKey as follows:
- Telephone: (888) 966-9268, Monday-Friday 9am-8pm Eastern
- Fax: (800) 915-6912
- Email: [email protected]
- Home Improvement: To contact LendKey about home improvement loans, use the following methods:
- Telephone: (866) 840-3502
- Email: [email protected]
LendKey Reviews & Complaints
LendKey has an excellent rating of 4.5 stars on Trustpilot, based on just over 200 reviews. reviews. Of those reviews, 80 percent of users gave LendKey an excellent rating, while only 3 percent issued a “bad” rating. However, with only 200 or so reviews logged so far, LendKey’s Trustpilot profile is still immature. Additionally, LendKey is also accredited with the Better Business Bureau and holds an “A” BBB rating as well.
LendKey has been in the business for a long time and has generated positive reviews among its user base. They have tried to put as much information out there on the site as they can, but in the end, borrowers have to connect with individual lenders, so there is a limit to what LendKey can control during the process.
Some users complain that the information about lenders is not completely available. Matchmaking sites like LendKey come with caveats and one of those caveats is to carry out personal due diligence before accepting the final offer with any lender. This may prevent users from negative experiences. In addition to this, if users take their time to dig around the LendKey site for information, they can find most of the things that they need to make an informed decision.
LendKey Pros and Cons
- Ease of Use. It is simple to use the LendKey platform and find competitive rates for student and home improvement loans.
- Forbearance. The loan forbearance option gives you tremendous flexibility for how and when you repay your student loans.
- Competitive Rates. The fixed and variable APRs on LendKey loans will often be superior to loan rates found elsewhere.
- Hard Credit Check. LendKey will do a hard credit check when you apply for a loan, which could impact your credit rating.
- Availability. LendKey Loans are not available in several states.
If you’re shopping for better student loan rates, here are a few alternative platforms to consider in addition to LendKey:
- College Ave Student Loans
Parting Thoughts: A Great Platform for Competitive Loan Rates
If you’re shopping for a student loan or want to refinance the student loans you have, LendKey can be a great option for you. It is easy to use and does a great job of finding the best rates available to you, and even has a generous forbearance option. However, keep in mind that you’ll undergo a hard credit check during the LendKey application process and that LendKey isn’t available everywhere. So, log in to LendKey when you get a chance, and see if the platform could work for you.
Get Started With LendKey
LendKey helps you save money on your loans so you can do what you want to do in your life.
Thanks for reading our LendKey student loan refinancing review.
You may also be interested in Credible Student Loans.