Edly Snapshot
Edly Income-Based Repayment (IBR) Student Loans, originated by Edly’s lending bank FinWise Bank, Member FDIC, provide an alternative loan option for students. Degree-seeking students at an Edly-supported school currently have two loan options: the Edly IBR No Cosigner Student Loan (for university students without a cosigner) and the Edly IBR Cosigned Student Loan (for university students with a cosigner).
Students who are approved for an IBR No Cosigner Student Loan will not have to make payments while in school (borrowers with the IBR Cosigned Student Loan make modest in-school payments). After graduation, borrowers with either loan make payments based on their income. Due to the structure of IBR student loans, borrowers have a variety of benefits when it comes to repayment. An IBR Student Loan is best if you are seeking a loan option with no cosigner (the IBR No Cosigner Student Loan) and want competitive repayment terms and flexible repayment options.
Pros
Competitive repayment terms and few fees- Cap on how much you must repay
- Hardship forbearance is available if you don't meet the $30,000 annual gross income minimum threshold following graduation (interest will continue to accrue during the forbearance period)
- Two product types available depending upon the borrower’s needs (a No-Cosigner IBR Loan and a Cosigner IBR loan)
- No minimum credit score for student borrowers applying for the Cosigned product. Credit and underwriting requirements apply for both products
Cons
Doesn’t offer a repayment term longer than 12 years- Hard to predict upfront how much you’ll owe over the life of the loan
- Fewer schools are eligible for an Edly IBR Student Loan than traditional student loans
Best Features of an IBR Student Loan
Competitive effective annual percentage rates and few fees
The effective APR on an IBR student loan is based on your income after graduation. Depending on your income, you can score a pretty competitive effective annual percentage rate. Additionally, you won’t have to pay any origination, application, or prepayment fees. IBR student loans do have late fees, however.
Cap on how much you must repay
While IBR student loans can vary in terms of effective APR, you can rest assured knowing that there is a cap on how much you can owe. You will never have to pay back more than 2.25x what you borrowed (with an IBR No Cosigner Student Loan) or 2.5x (with an IBR Cosigned Student Loan) what you borrowed.
Hardship forbearance is available if you don’t earn above a minimum income threshold
While Edly’s 34-month post-graduation grace period (for the No Cosigner Student Loan) is shorter than the standard 6-month grace period on traditional student loans, you won’t actually have to start post-graduation repayment of your loan unless you meet their minimum income threshold. If you are in this circumstance, you may apply for hardship forbearance and defer repayment, although interest on the loan will continue to accrue. Note that with the IBR Cosigned Student Loan, however, borrowers will make modest in-school payments in addition to the post-graduation payments noted above.
No cosigner required for IBR No Cosigner Student Loan
Edly’s flagship product, the Edly IBR No Cosigner Student Loan, is a great option if you do not have a cosigner available to you. While the approval rate for students without a cosigner is typically around 8.84%, according to a LendEDU study, if you apply for an IBR No Cosigner Student Loan, your chances of approval are significantly higher. For borrowers who don’t qualify on their own or who want the flexibility of an IBR loan with the comfort of a cosigner, they may apply for the IBR Cosigned Student Loan.
Minimum credit score for student borrowers
IBR Student Loans do require the student borrower to have a minimum credit score to qualify for the IBR No Cosigner Student Loan but student borrowers without a credit score may still be considered. This makes the Edly IBR No Cosigner Student Loan a great option if you have no credit or no access to a creditworthy cosigner. If the student borrower does have a credit score, a minimum requirement will apply. Note that if you choose to apply with a cosigner for the Edly IBR Cosigned Student Loan, your cosigner will need to meet credit and underwriting requirements (credit is not run on student borrowers for the Edly IBR Cosigned Student Loan until they apply for the cosigner to be released).
The latest rates from Sparrow’s partners
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Drawbacks of IBR Student Loans
Doesn’t offer a maximum repayment term longer than 12 years
Unlike several other lenders, Edly does not offer a maximum repayment term longer than 12 years. While their 7-12 year repayment term offerings provide a decent variety of options, longer terms would be beneficial to borrowers looking to pay their loans off a longer period of time.
Hard to predict upfront how much you’ll owe over the life of the loan
Due to the nature of an income-based repayment loan, it’s hard to predict what your payments will be, and thus, how much you’ll pay by the end of your repayment term. When taking out a traditional student loan with a fixed interest rate, you can easily calculate how much you’ll end up paying overall. With an IBR loan, however, you cannot predict this in the same way.
Fewer schools are eligible for an Edly IBR Student Loan than traditional student loans
While most traditional student lenders work with a wide array of schools, Edly is much more selective about who they work with. Edly only works with schools and programs that they believe will give students the best chance for future success. Edly uses a variety of factors when determining which programs are eligible, such as performance statistics like graduation rates, placement rates, and certification exam pass rates. Due to Edly’s strict program eligibility criteria, your school may not be eligible to receive an Edly IBR Student Loan. Currently, Edly supports over 1,700 schools and programs. To see if your school is eligible, complete Sparrow’s 2-minute application.
Edly Eligibility Criteria, Repayment Options & More
Fees and Terms
Loan Terms
7-12 years (12-year maximum repayment window).
Loan Amounts
$5,000 to $15,000 per academic year, $25,000 lifetime.
Application or Origination Fee
None.
Prepayment Penalty
None.
Late Fees
The lesser of $25 or 6% of the past due amount.
Eligibility Requirements (Financial)
Minimum Credit Score
580 or no score for student borrowers on the IBR Non-Cosigned Student Loan. No
minimum for student borrower on the IBR Cosigned Student Loan.
Minimum Income
No set minimum
Minimum Credit Score of Approved Cosigners
600
Typical Income of Approved Student to Release the Cosigner
$30,000
Maximum Debt-to-Income Ratio
25%
Ability to qualify if you’ve filed for bankruptcy
No.
Eligibility Requirements (Personal)
Citizenship
Must be a U.S. citizen or permanent resident.
Location
Not available to residents of Colorado, Maine, Vermont, Iowa, and West Virginia.
Must be enrolled half-time or more
Yes.
School requirements
Must meet Satisfactory Academic Progress (SAP) requirements.
Percentage of borrowers who have a cosigner
Undisclosed.
Repayment Options
In-school repayment options
No in-school repayment for an IBR No Cosigner Student Loan; borrowers with an Edly IBR Cosigned Student Loan make modest, monthly in-school payments.
Grace period
Post-graduation repayment begins 4 months after graduation for an IBR No Cosigner Student Loan.
In-school Deferment
Yes (for an IBR No Cosigner Student Loan).
Military Deferment
Yes
Disability Deferment
Yes.
Forbearance
Borrowers may apply for hardship forbearance.
Cosigner Release
After six successive in-full, on-time post-graduation payments, student borrowers will need to submit an application to release the cosigner; meet minimum credit requirement, and is subject to credit evaluation and worthiness.
Death or Disability Discharge
Yes.
Loan discharge if cosigner dies or becomes disabled
N/A.
Autopay
Allows for surplus payments via autopay: Yes.
Allows for biweekly payments via autopay: No.
Customer Service
Loan Servicer
Firstmark/Nelnet.
In-house Customer Service Team
Yes.
Process for Escalating Concerns
Yes.
Borrowers get assigned a personal customer service representative
No.
Average time from application to approval
3 minutes.
Student loan rates from our partners
Ascent
Ascent’s undergraduate and graduate student loans are funded by Bank of Lake Mills, or DR Bank, each Member FDIC. Loan products may not be available in certain jurisdictions. Certain restrictions, limitations; and terms and conditions may apply. For Ascent Terms and Conditions please visit: www.AscentFunding.com/Ts&Cs. Rates are effective as of 4/1/2024 and reflect an automatic payment discount of either 0.25% (for credit-based loans) OR 1.00% (for undergraduate outcomes-based loans). Automatic Payment Discount is available if the borrower is enrolled in automatic payments from their personal checking account and the amount is successfully withdrawn from the authorized bank account each month. For Ascent rates and repayment examples please visit: AscentFunding.com/Rates. 1% Cash Back Graduation Reward subject to terms and conditions. Cosigned Credit-Based Loan student must meet certain minimum credit criteria. The minimum score required is subject to change and may depend on the credit score of your cosigner. Lowest rates require interest-only payments, the shortest loan term, a cosigner, and are only available for our most creditworthy applicants and cosigners with the highest average credit scores. Actual APR offered may be higher or lower than the repayment examples above, based on the amount of time you spend in school and any grace period you have before repayment begins.
Ascent’s undergraduate and graduate student loans are funded by Bank of Lake Mills, or DR Bank, each Member FDIC. Loan products may not be available in certain jurisdictions. Certain restrictions, limitations; and terms and conditions may apply. For Ascent Terms and Conditions please visit: www.AscentFunding.com/Ts&Cs. Rates are effective as of 4/1/2024 and reflect an automatic payment discount of either 0.25% (for credit-based loans) OR 1.00% (for undergraduate outcomes-based loans). Automatic Payment Discount is available if the borrower is enrolled in automatic payments from their personal checking account and the amount is successfully withdrawn from the authorized bank account each month. For Ascent rates and repayment examples please visit: AscentFunding.com/Rates. 1% Cash Back Graduation Reward subject to terms and conditions. Cosigned Credit-Based Loan student must meet certain minimum credit criteria. The minimum score required is subject to change and may depend on the credit score of your cosigner. Lowest rates require interest-only payments, the shortest loan term, a cosigner, and are only available for our most creditworthy applicants and cosigners with the highest average credit scores. Actual APR offered may be higher or lower than the repayment examples above, based on the amount of time you spend in school and any grace period you have before repayment begins.
LendKey
1 – Terms and Conditions Apply
Loan products, terms, and benefits may be modified or discontinued by participating lenders at any time without notice. Rates displayed are reserved for the most creditworthy consumers who enroll to make automatic monthly payments. Your initial rate will be determined after a review of your application and credit profile. Variable rates may increase after consummation. You must be either a U.S. citizen or Permanent Resident in an eligible state and from an eligible school, and meet the lender’s credit and income requirements to qualify for a loan. Certain membership requirements (including the opening of a share account, a minimum share account deposit, and the payment of any applicable association fees in connection with membership) may apply in the event that an applicant wishes to apply with, and accept a loan offered from, a credit union lender. If you are not a member of the credit union lender, you may apply and become a member during the loan application process if you meet the lender’s eligibility criteria. Applying with a creditworthy cosigner may result in a better chance of loan approval and/or lower interest rate. Loans for exam preparation classes, including, but not limited to, loans for LSAT, MCAT, GMAT, and GRE preparation, are not available via LendKey.com.
2 – Cosigner Release
Some lenders participating on LendKey.com may offer the benefit of cosigner release. Cosigner release is subject to lender approval. In order to qualify, the borrower, alone, must meet the following requirements: (1) Make the required number of consecutive, on-time full principal and interest payments as indicated in the borrower’s credit agreement during the repayment period (excluding interest-only payments) immediately prior to the request. Any period of forbearance will reset the repayment clock; (2) The account cannot be in delinquent status; (3) The borrower must provide proof of income indicating that he/she meets the income requirements and pass a credit review demonstrating that he/she has a satisfactory credit history and the ability to assume full responsibility of loan repayment; (4) No bankruptcies or foreclosures in the last sixty months; and (5) No loan defaults.
3 – Autopay Rate Reduction
Subject to floor rate and may require the automatic payments be made from a checking or savings account with the lender. The rate reduction will be removed and the rate will be increased by 0.25% upon any cancellation or failed collection attempt of the automatic payment and will be suspended during any period of deferment or forbearance. As a result, during the forbearance or suspension period, and/or if the automatic payment is canceled, any increase will take the form of higher payments.
4 – AutoPay Discount & Lowest Interest Rate
Subject to floor rate and may require the automatic payments be made from a checking or savings account with the lender. The rate reduction will be removed and the rate will be increased by 0.25% upon any cancellation or failed collection attempt of the automatic payment and will be suspended during any period of deferment or forbearance. As a result, during the forbearance or suspension period, and/or if the automatic payment is canceled, any increase will take the form of higher payments. The lowest advertised APR is only available for loan terms of 10 years and is reserved for the highest qualified applicants, taking into consideration the applicant’s credit and other factors.
1 – Terms and Conditions Apply
Loan products, terms, and benefits may be modified or discontinued by participating lenders at any time without notice. Rates displayed are reserved for the most creditworthy consumers who enroll to make automatic monthly payments. Your initial rate will be determined after a review of your application and credit profile. Variable rates may increase after consummation. You must be either a U.S. citizen or Permanent Resident in an eligible state and from an eligible school, and meet the lender’s credit and income requirements to qualify for a loan. Certain membership requirements (including the opening of a share account, a minimum share account deposit, and the payment of any applicable association fees in connection with membership) may apply in the event that an applicant wishes to apply with, and accept a loan offered from, a credit union lender. If you are not a member of the credit union lender, you may apply and become a member during the loan application process if you meet the lender’s eligibility criteria. Applying with a creditworthy cosigner may result in a better chance of loan approval and/or lower interest rate. Loans for exam preparation classes, including, but not limited to, loans for LSAT, MCAT, GMAT, and GRE preparation, are not available via LendKey.com.
2 – Cosigner Release
Some lenders participating on LendKey.com may offer the benefit of cosigner release. Cosigner release is subject to lender approval. In order to qualify, the borrower, alone, must meet the following requirements: (1) Make the required number of consecutive, on-time full principal and interest payments as indicated in the borrower’s credit agreement during the repayment period (excluding interest-only payments) immediately prior to the request. Any period of forbearance will reset the repayment clock; (2) The account cannot be in delinquent status; (3) The borrower must provide proof of income indicating that he/she meets the income requirements and pass a credit review demonstrating that he/she has a satisfactory credit history and the ability to assume full responsibility of loan repayment; (4) No bankruptcies or foreclosures in the last sixty months; and (5) No loan defaults.
3 – Autopay Rate Reduction
Subject to floor rate and may require the automatic payments be made from a checking or savings account with the lender. The rate reduction will be removed and the rate will be increased by 0.25% upon any cancellation or failed collection attempt of the automatic payment and will be suspended during any period of deferment or forbearance. As a result, during the forbearance or suspension period, and/or if the automatic payment is canceled, any increase will take the form of higher payments.
4 – AutoPay Discount & Lowest Interest Rate
Subject to floor rate and may require the automatic payments be made from a checking or savings account with the lender. The rate reduction will be removed and the rate will be increased by 0.25% upon any cancellation or failed collection attempt of the automatic payment and will be suspended during any period of deferment or forbearance. As a result, during the forbearance or suspension period, and/or if the automatic payment is canceled, any increase will take the form of higher payments. The lowest advertised APR is only available for loan terms of 10 years and is reserved for the highest qualified applicants, taking into consideration the applicant’s credit and other factors.
Earnest
Auto Pay Discount Disclosure
You can take advantage of the Auto Pay interest rate reduction by setting up and maintaining active and automatic ACH withdrawal of your loan payment. The interest rate reduction for Auto Pay will be available only while your loan is enrolled in Auto Pay. Interest rate incentives for utilizing Auto Pay may not be combined with certain private student loan repayment programs that also offer an interest rate reduction. For multi-party loans, only one party may enroll in Auto Pay.
Student Loan Origination (Private Student Loan) Interest Rate Disclosure
Actual rate and available repayment terms will vary based on your income. Fixed rates range from 4.36% APR to 16.15% APR (excludes 0.25% Auto Pay discount). Variable rates range from 5.87% APR to 16.45% APR (excludes 0.25% Auto Pay discount). Earnest variable interest rate student loan origination loans are based on a publicly available index, the 30-day Average Secured Overnight Financing Rate (SOFR) published by the Federal Reserve Bank of New York. The variable rate is based on the rate published on the 25th day, or the next business day, of the preceding calendar month, rounded to the nearest hundredth of a percent. The rate will not increase more than once per month. Although the rate will vary after you are approved, it will never exceed 36% (the maximum allowable for this loan). Please note, Earnest Private Student Loans are not available in Nevada. Our lowest rates are only available for our most credit qualified borrowers and contain our .25% auto pay discount from a checking or savings account. It is important to note that the 0.25% Auto Pay discount is not available while loan payments are deferred.
Earnest Private Student Loans are made by One American Bank, Member FDIC, or FinWise Bank, Member FDIC. One American Bank, 515 S. Minnesota Ave, Sioux Falls, SD 57104. Finwise Bank, 756 East Winchester, Suite 100, Murray, UT 84107
Earnest loans are serviced by Earnest Operations LLC, 535 Mission St., Suite 1663 San Francisco, CA 94105, NMLS #1204917, with support From Navient Solutions, LLC (NMLS #212430). One American Bank, FinWise Bank, and Earnest LLC and its subsidiaries, including Earnest Operations LLC, are not sponsored by agencies of the United States of America.
© 2024 Earnest LLC. All rights reserved.
Auto Pay Discount Disclosure
You can take advantage of the Auto Pay interest rate reduction by setting up and maintaining active and automatic ACH withdrawal of your loan payment. The interest rate reduction for Auto Pay will be available only while your loan is enrolled in Auto Pay. Interest rate incentives for utilizing Auto Pay may not be combined with certain private student loan repayment programs that also offer an interest rate reduction. For multi-party loans, only one party may enroll in Auto Pay.
Student Loan Origination (Private Student Loan) Interest Rate Disclosure
Actual rate and available repayment terms will vary based on your income. Fixed rates range from 4.36% APR to 16.15% APR (excludes 0.25% Auto Pay discount). Variable rates range from 5.87% APR to 16.45% APR (excludes 0.25% Auto Pay discount). Earnest variable interest rate student loan origination loans are based on a publicly available index, the 30-day Average Secured Overnight Financing Rate (SOFR) published by the Federal Reserve Bank of New York. The variable rate is based on the rate published on the 25th day, or the next business day, of the preceding calendar month, rounded to the nearest hundredth of a percent. The rate will not increase more than once per month. Although the rate will vary after you are approved, it will never exceed 36% (the maximum allowable for this loan). Please note, Earnest Private Student Loans are not available in Nevada. Our lowest rates are only available for our most credit qualified borrowers and contain our .25% auto pay discount from a checking or savings account. It is important to note that the 0.25% Auto Pay discount is not available while loan payments are deferred.
Earnest Private Student Loans are made by One American Bank, Member FDIC, or FinWise Bank, Member FDIC. One American Bank, 515 S. Minnesota Ave, Sioux Falls, SD 57104. Finwise Bank, 756 East Winchester, Suite 100, Murray, UT 84107
Earnest loans are serviced by Earnest Operations LLC, 535 Mission St., Suite 1663 San Francisco, CA 94105, NMLS #1204917, with support From Navient Solutions, LLC (NMLS #212430). One American Bank, FinWise Bank, and Earnest LLC and its subsidiaries, including Earnest Operations LLC, are not sponsored by agencies of the United States of America.
© 2024 Earnest LLC. All rights reserved.
College Ave
College Ave Student Loans products are made available through Firstrust Bank, member FDIC, First Citizens Community Bank, member FDIC, or M.Y. Safra Bank, FSB, member FDIC. All loans are subject to individual approval and adherence to underwriting guidelines. Program restrictions, other terms, and conditions apply.
*The 0.25% auto-pay interest rate reduction applies as long as the borrower or cosigner, if applicable, enrolls in auto-pay and authorizes our loan servicer to automatically deduct your monthly payments from a valid bank account via Automated Clearing House (“ACH”). The rate reduction applies for as long as the monthly payment amount is successfully deducted from the designated bank account and is suspended during periods of forbearance and certain deferments. Variable rates may increase after consummation. $5,000 is the minimum requirement to refinance. The maximum loan amount is $300,000 for those with medical, dental, pharmacy or veterinary doctorate degrees, and $150,000 for all other undergraduate or graduate degrees. Information advertised valid as of 08/25/2022. Variable interest rates may increase after consummation.
This informational repayment example uses typical loan terms for a refi borrower with a Full Principal & Interest Repayment and a 10-year repayment term, has a $40,000 loan and a 5.5% Annual Percentage Rate (“APR”): 120 monthly payments of $434.11 while in the repayment period, for a total amount of payments of $52,092.61. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary.
This informational repayment example uses typical loan terms for a freshman borrower who selects the Deferred Repayment Option with a 10-year repayment term, has a $10,000 loan that is disbursed in one disbursement and a 8.35% fixed Annual Percentage Rate (“APR”): 120 monthly payments of $179.18 while in the repayment period, for a total amount of payments of $21,501.54. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary.
Information advertised valid as of 3/07/2024. Variable interest rates may increase after consummation. Approved interest rate will depend on creditworthiness of the applicant(s), lowest advertised rates only available to the most creditworthy applicants and require selection of full principal and interest payments with the shortest available loan term.
College Ave Student Loans products are made available through Firstrust Bank, member FDIC, First Citizens Community Bank, member FDIC, or M.Y. Safra Bank, FSB, member FDIC. All loans are subject to individual approval and adherence to underwriting guidelines. Program restrictions, other terms, and conditions apply.
*The 0.25% auto-pay interest rate reduction applies as long as the borrower or cosigner, if applicable, enrolls in auto-pay and authorizes our loan servicer to automatically deduct your monthly payments from a valid bank account via Automated Clearing House (“ACH”). The rate reduction applies for as long as the monthly payment amount is successfully deducted from the designated bank account and is suspended during periods of forbearance and certain deferments. Variable rates may increase after consummation. $5,000 is the minimum requirement to refinance. The maximum loan amount is $300,000 for those with medical, dental, pharmacy or veterinary doctorate degrees, and $150,000 for all other undergraduate or graduate degrees. Information advertised valid as of 08/25/2022. Variable interest rates may increase after consummation.
This informational repayment example uses typical loan terms for a refi borrower with a Full Principal & Interest Repayment and a 10-year repayment term, has a $40,000 loan and a 5.5% Annual Percentage Rate (“APR”): 120 monthly payments of $434.11 while in the repayment period, for a total amount of payments of $52,092.61. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary.
This informational repayment example uses typical loan terms for a freshman borrower who selects the Deferred Repayment Option with a 10-year repayment term, has a $10,000 loan that is disbursed in one disbursement and a 8.35% fixed Annual Percentage Rate (“APR”): 120 monthly payments of $179.18 while in the repayment period, for a total amount of payments of $21,501.54. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary.
Information advertised valid as of 3/07/2024. Variable interest rates may increase after consummation. Approved interest rate will depend on creditworthiness of the applicant(s), lowest advertised rates only available to the most creditworthy applicants and require selection of full principal and interest payments with the shortest available loan term.
Edly IBR FAQs
Are IBR Student Loans legitimate?
Yes, IBR Student Loans are legitimate. Edly IBR Student Loans are offered through FinWise Bank, an FDIC-insured bank. Since its founding in 2019, Edly has provided an alternative method of college funding to students.
Are IBR Student Loans available in all 50 states?
IBR Student Loans are not available to residents of Colorado, Maine, Vermont, Iowa, and West Virginia.
How long does it take to get an IBR Student Loan?
Submitting an application through Edly takes a few minutes. Once you’ve submitted your loan application, Edly will instantaneously return a decision about your eligibility. If you qualify, you will receive the rate and terms of your loan.
It may take some time for your educational institution to receive your tuition. Your school must approve the loan which may take between four to six weeks. Upon certification, the funds are sent directly to your school.
What happens if I don’t qualify for an IBR Student Loan?
If you don’t qualify for an IBR student loan, the company will inform you why and may offer you the option to add a cosigner. Depending on the reason, you may also consider applying with a different lender. To check your rates across multiple lenders at once, try using Sparrow’s free search engine. In just two minutes, you can receive real, personalized offers from over 15 different lenders all ready to support you.
Is an IBR Student Loan federal or private?
IBR Student Loans are private student loans. Before you take on a private loan, we recommend that you exhaust your federal funding options, including grants and scholarships.
Does applying for a loan through Edly hurt my credit score?
In order to estimate what rate you qualify for, Edly conducts a soft credit check — this does not affect your credit score. If you choose to accept the terms offered by Edly, the company will conduct a hard credit check to verify your information. A hard credit check may impact your credit score.