LendKey Review: Private Student Loan and Refinancing
- August 15, 2018
- Posted by: Jeff Gitlen
- Category: Student Loans
LendKey offers both private student loans and student loan refinance options to student loan borrowers and this review will take a look at both. One major difference between LendKey and other lenders is who does the lending.
LendKey is technically many different companies as it consists of over one-hundred different non-profit credit unions and community banks. Due to this unique aspect, LendKey provides student loans with a focus on the borrower, not the profit margin. This allows borrowers to receive beneficial and competitive terms on both new student loans and refinanced loans.
There are several different options offered by LendKey that borrowers can choose from when browsing their site - private loans and refinanced loans. These options can help borrowers pay for their higher education or save money on their student loan debt, and the company provides some competitive refinancing rates.
LendKey's Private Student Loan Options
When looking for a private student loan with LendKey, borrowers are only given the option of a variable rate. The minimum rate that borrowers can get is 2.99% APR but this may go as high as 9.07% APR.
Like any competitive student loan refinancing provider, LendKey provides several opportunities to reduce interest rates on private student loans. Setting up automatic payments online results in a 0.25% reduction in the current interest rate.
Additionally, if 10% of the student loan has been paid back by the time the borrower enters the full repayment period, 1.0% APR is dropped from the current interest rate which means a maximum discount of 1.25% is available.
There are no application or origination fees associated with LendKey's private student loan options.
The application process for a private student loan is one of LendKey's key strengths. The entire process only takes about three minutes total, and it is straightforward and simple to understand. After several questions are answered, the application is submitted and subjected to immediate review. This makes the entire process run smoothly, and it effectively relays the desired information to the applicant.
LendKey's Student Loan Refinancing Options
When looking to refinance a private student loan with LendKey, there are several different starting rates to choose from. Borrowers may be able to switch to a variable rate as low as 2.67% APR or a fixed rate as low as 3.25% fixed APR. There are several different repayment terms to choose from when refinancing. Borrowers can choose among 5, 7, 10, 15, and 20 year repayment lengths.
There are no application or origination fees associated with LendKey's student loan refinancing offerings.
When deciding to utilize Lendkey's refinancing options, a refinance calculator tool is provided which makes it easy to determine the best path forward. The tool requires simple inputs that does not even require typing; the end result shows the current picture of the borrower's situation and any benefits or negatives he or she may receive by refinancing.
LendKey's website interface is easy to understand and move through which improves the overall customer experience. The different offerings and perks are easy to find and there is a FAQ section that can help clear up any confusion.
LendKey provides extensive resources that help borrower's learn more about their options. These include scenario calculations to help borrowers understand how refinancing exactly works. These all help the borrower gain a better grasp on the student loan or refinancing process as a whole.
What to Consider
LendKey makes the cosigner policy known on its website. If borrowers' credit is not up to par, they are much more likely to be approved with a cosigner when getting a new private student loan or when refinancing.
LendKey private student loans and refinancing options are good choices for those looking for:
- Competitive interest rates
- Flexible repayment plans
- Interest rate discounts and helpful resources
- Student loans are available to borrowers about to attend or currently enrolled in a higher education institution
- Minimum private student loan interest rate of 2.99% APR
- Fixed interest rate minimum of 3.25% APR for refinancing
- Variable interest rate minimum of 2.67% APR for refinancing
- Repayment Terms: 5, 7, 10, 15, and 20 years
- 0.25% interest rate discount for using auto-pay
- 1.0% interest rate discount for paying 10% of a private student loan by the time payment period starts
- Simple and fast application process
- No application, origination, or disbursement fees
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