Two student loan refinancing companies, LendKey and Earnest, have changed their student loan refinancing interest rates in recent weeks, according to LendEDU.
Effective August 10th, LendKey’s variable interest rate range for their student loan refinance product was altered slightly. LendKey, a leading lending partner of both banks and credit unions, now offers a variable rate range between 2.67 and 6.31 percent for student loan refinancing.
This new variable rates for LendKey mark an increase on both the low and high ends of the range. Previously, the online lending partner offered a variable interest rate range between 2.52 and 6.16 percent since June.
This is the fourth interest rate change by LendKey within the last year. In December of 2016, LendKey’s variable rate range was between 2.09 percent and 5.84 percent. In April, an increase was made to both the low and high end so that the new range was anywhere between 2.43 percent and 5.97 percent. The last increase came on June 1st which brought the variable interest rate range to between 2.52 percent and 6.16 percent. As mentioned, this was the last change until the most recent August update.
The fixed interest rates for LendKey’s student loan refinancing product remained unchanged during that time. They currently reside between 3.25 percent and 7.26 percent and has not been altered since December.
LendKey isn’t the only lender altering its interest rates on student loan refinancing.
Another student loan refinancing company, Earnest, made slight changes to its interest rates for its refinancing product on August 18th. The online lender and refinancing company now offers a new variable rate ranging between 2.81 and 6.19 percent for their refinancing product.
This alteration represents a slight rate slash on the high end for their student loan refinancing business while the low end remains the same. On August 1st, Earnest offered a variable interest rate range between 2.81 percent and 6.46 percent.
Whereas LendKey has steadily increased its variable interest rates, Earnest has been more sporadic in their modifications. On June 1st, the variable rate range for Earnest was anywhere between 2.80 and 6.28 percent. Then, the company changed their rates in mid-June so that the new range was between 2.61 and 6.28 percent. The next change brought the variable interest rate range for student loan refinancing to the aforementioned August 1st spectrum.
Earnest also made a change to the fixed interest rate range for their student loan refinancing product for the first time since mid-June. Effective August 18th, the fixed rate range is now between 3.35 and 6.39 percent. This change represents a decrease on the high end, as the previous range was anywhere from 3.35 to 6.49 percent.
Coincidentally, both LendKey and Earnest have been featured in LendEDU News in the past few weeks. On August 10th, LendEDU covered the Bloomberg report that revealed Earnest was teaming up with Barclays to find a buyer willing to spend $200 million on the student loan refinancing company. On August 16th, LendEDU reported that LendKey had raised $13 million in Series C funding to help them expand both their workforce and an office in Cincinnati.
Author: Dave Rathmanner
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