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Student Loans

Sparrow Student Loans Review

Compare real offers from multiple lenders

  • See real rates and repayment terms
  • No costs
  • No impact on your credit score

About the company

Sparrow is a tech-driven company that helps borrowers find affordable student loans. Its prequalification tool allows users to submit a form and compare real offers from multiple lenders.

Last year, Sparrow facilitated more than $220 million in student loan volume and presented more than 1 million prequalified loan offers to borrowers through its marketplace.

How does Sparrow work?

Sparrow serves as a comprehensive platform for student loans. In just three minutes, users can complete a prequalification form and gain access to personalized rates. Repayment terms can be shown side-by-side, allowing you to easily identify the best offer.

Best of all, Sparrow is completely free and won’t impact your credit score.

Rates, terms, and fees

The following table summarizes important terms to consider before using Sparrow.

Loan typesUndergraduate and graduate student loans
LendersBanks, credit unions, online lenders, and state agencies
Application process3-minute prequalification form
Eligibility requirementsNone with Sparrow; offer eligibility depends on the lender
Loan amountsVaries by lender
RatesNone; receive personalized rates based on borrower’s credit history and income
Repayment terms5 – 20 years
Cosigner option?Yes
FeesNo fees for using Sparrow

What are the eligibility requirements?

While there are no eligibility requirements to use Sparrow, minimum requirements set by each lender will determine if you prequalify for an offer. Here are a few requirements to consider:

  • Credit history: Lenders typically look at your credit history to gather insight into your past financial behavior. A positive credit history indicates you are responsible with credit and more likely to repay the loan on time.
  • Income: Your income shows lenders whether you have a stable and sufficient income to afford your monthly payments.
  • Cosigner: Approximately 90% of private student loan borrowers on Sparrow apply with a cosigner. A creditworthy cosigner can increase your chances of approval and may result in lower interest rates. If you don’t initially meet the eligibility requirements, you may have the option to add a cosigner.

How does repayment work?

Repayment terms and options will depend on the specific lender and loan type.

To see the repayment options you’ve prequalified for, you’ll need to fill out an application through Sparrow. 

Depending on your eligibility, you’ll see actual repayment plans from multiple lenders side-by-side. This can help you understand each loan’s APR, monthly repayment, total repayment amount, and repayment options before proceeding with an offer.

While the terms vary by lender, the lending partners Sparrow works with offer repayment terms ranging from five to 20 years.

Once you receive funds from your chosen lender, that lender will become the primary contact for any repayment questions.

How can Sparrow improve its comparison tool?

Sparrow offers a valuable tool for student loan borrowers looking to prequalify with multiple lenders, but there are always opportunities for improvement. Some ways in which it could enhance its comparison tool include:

  • Expanding the lender network: By partnering with more banks, financial technology companies, credit unions, and state agencies, Sparrow can offer an even broader range of loan options and competitive rates for borrowers.
  • Mobile app development: Creating a mobile app for Sparrow could offer users a more convenient way to access the platform and manage their loan applications on the go.
  • Real-time updates: Offering real-time updates on loan rates and terms, as well as notifications about changes in lender criteria, can keep users informed and help them stay on top of their loan search.
  • Display other lender benefits: Including more information about each lender’s unique benefits may help borrowers with their decision. Some lenders offer special discounts, career assistance, and repayment assistance.

What do borrowers have to say about Sparrow?

Trustpilot4 out of 5

Data collected May 5, 2023

Trustpilot was the only source of reviews we could find for Sparrow, but the overall theme was that those who used the tool were satisfied with their experience.

Many borrowers voiced appreciation for Sparrow’s user-friendly platform, highlighting access to a wide variety of lenders, multiple loan comparison features, and competitive interest rates. 

Some users even expressed that Sparrow’s customer service helped address their concerns and provide valuable resources.

A few borrowers reported issues, such as not hearing back after applying or encountering a lengthy prequalification process.

Does Sparrow have a customer service team?

Sparrow offers customer service support to assist users with any questions or concerns. To contact Sparrow, you can:

  • Call (646) 980-4056
  • Send an email to [email protected]
  • Use the chat box on its website
  • Send mail to 169 Madison Ave #2313, New York, NY 10016

How to apply through Sparrow?

Applying for a student loan through Sparrow can be completed by following these simple steps:

  1. Create an account or log in: You’ll need to create an account before you see offers. Some of the information you’ll be asked to submit includes your name, email, and phone number.
  2. Access your dashboard: Once your account is set up, navigate to your Sparrow dashboard.
  3. Complete the form: Fill out the three-minute form with the required information, such as your name, date of birth, citizenship status, address, email address, loan size, income and housing expenses, and school details.
  4. Receive personalized rates: After submitting the form, you’ll instantly see personalized rates from all the lenders you qualify with on your Sparrow dashboard.
  5. Compare loan options: Review repayment plans from multiple lenders side-by-side, comparing APR, monthly repayment, total repayment amount, and repayment options.
  6. Choose and apply for a loan: Select the loan option that best suits your needs and click the “Apply” button to proceed with the application. You’ll be directed to the lender’s website to complete the official loan application. Note this may result in a hard credit inquiry on your credit report.
  7. Submit required documents: Follow the lender’s instructions to provide any necessary documentation for the loan application process.
  8. Await approval: Once you’ve submitted your loan application, wait for the lender to respond with an offer of credit. This typically takes three to four business days.
  9. Sign and accept the loan offer: If approved, carefully review the loan terms and conditions, sign the agreement, and accept the loan offer.

What if I don’t receive any offers through Sparrow?

If you don’t receive any offers, you likely haven’t met the criteria of the lending partners. If that’s the case, consider the following:

  1. Add a cosigner: If you haven’t already included a cosigner, adding one can increase your chances of approval. About 90% of Sparrow’s private student loan borrowers apply with a cosigner.
  2. Revisit Sparrow later: Lending partners frequently update their eligibility criteria. If you’re still ineligible after adding a cosigner, try returning to Sparrow in a few weeks to see if any new opportunities have become available.

Sparrow FAQ

Does Sparrow offer private or federal student loans?

Sparrow is a comparison platform for private student loans, partnering with lenders to offer undergraduate and graduate student loans. It does not offer federal student loans, which the U.S. Department of Education provides.

Does applying with Sparrow hurt my credit?

Applying for personalized rates through Sparrow uses a soft credit pull, which does not hurt your credit score. However, once you proceed with a loan application on a specific lender’s website, a hard credit inquiry may be conducted, which could impact your credit score.

Does Sparrow require a cosigner?

Sparrow does not require a cosigner. However, having a cosigner can improve approval chances and result in better terms and lower interest rates. For those without a cosigner, Sparrow partners with several lenders that do not require a credit check or a cosigner.

How long does it take to get offers through Sparrow?

After completing Sparrow’s three-minute form, personalized rates display on your dashboard within 20 seconds. These are prequalified rates—not final offers. 

You will need to apply directly with the lender to finalize your loan. Lenders usually respond within three to four business days after you apply.

>> Read More: List of Student Loan Companies