LendKey Student Loan Reviews

Learn about the reviews on LendKey private student loans and refinancing. Discover its benefits, features, requirements and interest rate from here!

Updated by Gowtham Ramesh on 5th July 2019

LendKey is a platform where potential borrowers of student loans get connected with credit unions, community banks, and private lenders. It matches a qualified borrower for a loan with its partner lenders. This is applicable to all loans which are available from LendKey. If you take a loan you need to make sure that you understand your lenders' specific terms.

Apart from loans, LendKey also provides a program to refinance student loans. Their mission is to help borrowers save money on their loans. This is done by connecting them with the partnered credit unions and community banks, who have been providing student loans at a lower interest rate with great customer service to its student loan borrowers.

In this article, we will discuss in detail, the loans available under LendKey along with details of their loan refinancing program, its features, and terms. It must be noted that rates and terms of loans may be subjected to changes at frequent intervals.


List of Contents


Overview of LendKey Student Loan Refinancing

The following is the overview of the Student Loan Refinancing option offered by LendKey including their interest rates, terms, amounts, and other benefits.

Refinancing Factors Rates and Percentage
Reviewed loan Student loan refinancing
Interest rates Fixed: 3.49% - 8.93%
Variable: 2.7% - 8.96%
Loan terms 5, 7, 10, 15 and 20 years
Loan amounts $7,500 to $125,000 for undergraduate
$250,000 for graduate degrees
$300,000 for medical, dental, or veterinary degrees
Co-signer release available Yes
Can transfer a parent loan to the child No

Lendkey Student Loan Refinancing

When you apply for Student Loan Refinancing, they will match you with credit unions or other lenders depending on certain criteria such as location or affiliation with certain groups. They ask for your credit score, income, loan limits and many other things which will be used for evaluation to find you matching lenders.

Even after making a decision to refinance your student loans, you still need to know who to choose as a lender. LendKey can help you find the right lender by getting in touch with their partner community banks and credit unions. Local banks and credit unions do not have the recognition as compared with other bigger financial institutions. Hence, this service shows you offer that you might never be aware of or heard about it otherwise.

These lenders generally have certain requirements in selecting borrowers such as credit score, location, etc.. So reviews take your information and show you the offers from the bank and credit union based on your eligible.

For example, if you are in military then LendKey might show and provide you the Navy federal credit union to refinance your loan. If you see an offer such as Navy FCU, you can use LendKey Student Loan Refinancing to get an offer and proceed with the full application

Learn about the reviews on LendKey private student loans and refinancing

Source - pexels.com

Partners of refinancing generally offer you a variable rate starting from 2.44% and fixed rates from 3.64%. These rates may vary based on states and your choice of repayment terms of 5, 7, 10, 15, even 20 years.

If you opt for a longer repayment term, you can always pay off the loan before the schedule without getting any penalties for the early closure.


Features of Lendkey Student Loan Refinancing

The following includes the interest rates, eligibility criteria, repayment options and other important details of the LendKey Student Loan Refinancing.

Interest rate and fees

The interest rates of the LendKey Student Loan Refinancing are 2.44% for variable ARP and 3.64% for fixed ARP with AutoPay set up.

The actual rate will differ from lender to lender and will also be based upon, but not limited to, you and your cosigner's credit history.

  • No application or origination fee.

  • No prepayment penalty.

  • There are late fees for the repayment based on the lender from $5 to $15.

  • You need to qualify the soft credit check to see what your rate.

Eligibility

  • Credit score required for borrowers minimum is 660

  • Minimum income for the year is $24,000

  • Credit score for the approved borrowers or co-signer is 757 for approval

  • Maximum debt to income ration should be 43%

  • After 7 years you can qualify for filing a bankruptcy

  • Must be a citizen of U.S. or permanent resident

  • Loans are not provided to Maine, Nevada, North Dakota, Rhode Island or West Virginia.

  • Attend IV-accredited school with a degree-granting institution

  • 90%+ of the borrowers have a co-signer

  • Must have at least an associate degree

Repayment options

  • There is no academic deferment

  • There is no military deferment

  • Forbearance is on for 5,7 and 10-year term loans, postpone of payments can be done 4 times up to 12 months in total

  • For 15 or 20 years loans postpone payments for a period of 6 months up to 18 months in total

  • Interest-only payment for 15 to 20 years loan terms where it can be made only for the first 4 years

  • Discharge of loans in the event of death or disability of borrowers its guarantee it but it's common among lenders to discharge according to LendKey

  • It allows greater than minimum payments through autopay option

  • It does not allow biweekly payments through autopay

Other Features

Refinancing using LendKey makes the process easy and efficient. Here are some features that make LendKey very useful for the student loan borrowers who are looking to refinance.

Offers Lower interest rate

They offer variable rate from 2.81% to 8.79% and fixed rate from 3.49% to 8.92%

The interest rate is usually competing with big banks and online lenders who have to offer through the course with a strong credit score and income to qualify for lower rates it goes with the cosigner too. If you are qualified then the refinance loan could have considerably lower interest rates and save money over the duration of your student loan.

Multiple comparisons of offers

LendKey makes the shopping process for Student Loan Refinancing very easy and effortless. It is a smooth platform, easy to use and allows you to look for rates across multiple lenders at a single place.

You have to provide them with your basic information like your income, loan amount the school that you are going to. This information is reviewed to instantly let you know whether you pre-qualify or not for the refinancing.

The rate checks only when it involves a soft credit pull where it would not affect your credit score. Ensure that you are eligible for every offer that you consider.

Exclusive offers

Community banks and credit unions usually do not have a similar reach or the budget for marketing when compared to large banks and national online lenders. You might never hear about the local or small scale institutions that can give you lower rates and personalized customer services.

You will be getting a chance to get connect with these community leaders. Checking the rates does not require any commitment. Instead, you will get to see offers and decide for yourself.

Customer service

  • LendKey loans are serviced by LendKey themselves

  • It has an in-house customer service team

  • No, they won't process for the escalating concerns

  • No, borrowers don't get assistance from a dedicated banker, advisor or representative


Things to keep in mind about LendKey

Lendkey has a vast resource for student loan borrowers but it also has potential drawbacks. Considers the following points before deciding to refinance your student loans under any of the offers provided by LendKey.

Limited access

LendKey has partnered with 13,000+ community financial institutions to get you the student loan refinancing offers. This number goes down considerably depending on the lender's eligibility. You won't see offers from other banks or online lenders which can have better terms.

If your goal is to find the lowest interest rate, it is good to look around for options among the variety of lenders.

Extra research is needed on lenders

Lendkey matches with lenders but they do not necessarily provide all the information of every lender. Before getting an offer, take your time to find out about the best lender, their requirements, terms, and conditions.

Also, look for customer reviews. For example, you may find lenders offering more benefits like the release of co-signer, unemployment or skipping of payments under financial hardships which are not immediately disclosed by LendKey.

These facilitate your application with the lender as the loans ultimately come from the banks or credit unions themselves. It is better to make sure that you have answers to all your questions before finishing out any paperwork.


Top 5 reasons why LendKey Refinancing are different

There are several criteria used to score lenders. The following is the score given to LendKey on the 5 criteria. Scores are given as - Average, Below Average, and Above Average.

1 - Faster repayment: Average

Lenders need to score high by providing a variety of terms for repayment and to make extra payments easy. It is not easy to score high in this criteria.

2 - Discloses requirement and the limited cost: Above Average

The lender is required to score highly to limit their fees and the interest rates making it transparent. They must also allow the borrowers to get a personalized rate and an estimation before applying it.

3 - Serves a range of borrowers: Below Average

In order to serve their customers across different locations and under different situations, they need to provide services to a wide demographic.

4- Offers payment flexibility: Above Average

Lenders are required to provide and offer longer than 12 months of forbearance periods, for the military deferment or any other flexible repayment options which can help the borrowers in their hardships.

5 - Supports customers: Below Average

The lender needs to assign the borrowers an advisor and provides him multiple ways to get in touch with the customer service and the website needs to provide a full range of APR range fees and forbearance policies.

Expected improvement from LendKey

LendKey can be improved by providing refinancing to borrowers who do not hold a degree or a visa.


Overview of LendKey private student loan

Let's see the services that are offered by LendKey with information such as their loan term, loan amount, grace period and co-signer release which are offered by them.

Description Rates and Percentage
Reviewed loan Private student loan for undergraduates
Loan terms 10 years
Loan amounts $2,000 to $160,000
Grace period 6 months
Co-signer release available Yes, after 24 months

LendKey Private Student Loan

LendKey is one of the most interesting companies in the student loan industry as they are connected with all small, local banks and credit unions around the state providing access to all the great deals which might not be on your radar.

These lenders offer loans through LendKey who also acts as a servicer to these loans. You can apply online on their site and select the repayment option which suits you through the site and also make payments on it.

It allows the borrower to make use of the modern level customer service and provide the platform where you take advantage of getting loans through a smaller lender.

Benefits of LendKey Student Loan

Lendkey generally offers exceptional and remarkably attractive benefits to save your money. One such benefit is the reduction of your interest rate by 1% point after you have paid off 10% of your loan.

Additionally, as they work with financial institutions such as credit unions, they can offer loans at much lower interest rates compared to other financial institutions. Also to keep in mind that credit unions are nonprofit lenders, their purpose is to serve members than stockholders.

If you are a small business owner then LendKey could serve you really well. They offer great deals to their customers, to help the smaller financial institutions by showcasing them in front of potential customers through their online platform. They allow banks to operate at low costs, while they offer more competitive rates to the customers.


Features of LendKey Student Loans

This detail of LendKey is consist of all the information of the loans from the interest rate and fees, Requirement, Repayment options, and Customer service.

Interest rate and fees

Well, looking into the range of interest rates with other private loan providers. The actual rate will be based on these factors which include you and your co-signer credit history and your financial circumstances.

  • No application or origination fee.

  • No prepayment penalty.

  • There are late fees for the repayment based on the lender from $5 to $15.

  • There is no option for a personalized rate before applying.

Requirements

  • Credit score required for borrowers minimum is 660

  • Minimum income for the year is $24,000

  • Credit score for the approved borrowers or co-signer is 725 for approval

  • maximum debt to income ration should be 33%

  • After 5 years you can qualify for filing a bankruptcy

  • Must be a citizen of U.S. or permanent resident

  • Loans are not provided to Maine, Nevada, North Dakota, Rhode Island or West Virginia.

  • Attend IV-accredited school with a degree-granting institution.

  • 90%+ of the borrowers have a co-signer

  • Must be enrolled half-time or more

Repayment options

In-school

Flat fee repayment

Where borrowers need to pay a fee of $25 for a month while they are in school. You need to pay the full amount of principal plus interest after your 6 months of post-graduation grace period gets over.

Post-school

Standard Repayment

Borrowers have to make a monthly regular payment based on the interest rate and the loan terms agreed upon during loan application.

Other Features

In-school deferment  - You cannot request a deferred payment when you returning to the school.

Military deferment  - There are no such options available here that you can make use of.

Forbearance  - The borrower is eligible for 18 months of forbearance within the 6 months of increment and the life of the loan.

Discharge on death and disability  - The loan agreement doesn't guarantee on it, but the automatic discharge can be seen among lenders from LendKey

Repayment preferences

It allows you greater than minimum payments through the autopay option and it does not allow for a fortnight payment through their autopay.

Customer service

  • LendKey loans are serviced by LendKey themselves

  • It has an in-house customer service team

  • No, they won't process for the escalating concerns

  • No, borrowers don't get assistance from a dedicated banker, advisor or representative

  • The average time for the application to funding is around 27 days

Top 5 reasons why LendKey Private Loan are different

There are several options used into consideration overall the 5 categories available from various companies and have been rated on the base of three criteria Average, Below Average, and Above Average.

1 - Faster repayment: Below Average

Lenders need to score high by providing a variety of terms for repayment and to make extra payments easy. It is not easy to score high in this criteria.

2 - Discloses requirement and the limited cost: Above Average

The lender is required to score highly to limit their fees and the interest rates making it transparent. They must also allow the borrowers to get a personalized rate and an estimation before applying it.

3 - Serves a range of borrowers: Below Average

In order to serve their customers across different locations and under different situations, they need to provide services to a wide demographic.

4- Offers payment flexibility: Above Average

Lenders are required to provide and offer longer than 12 months of forbearance periods, for the military deferment or any other flexible repayment options which can help the borrowers in their hardships.

5 - Supports customers: Below Average

The lender needs to assign the borrowers an advisor and provides him multiple ways to get in touch with the customer service and the website needs to provide a full range of APR range fees and forbearance policies.

How to improve the Private Loan of LendKey

LendKey can be a great option if they provide some additional features such as personalized rate estimates without affecting credit, postponement of payments for those who have returned to school to serve in the military, etc.

The maximum rate of interest on the loan terms can be displayed on their website where community banks and credit unions join with LendKey and work out all the different characteristics of the loan. Their website can improve to provide customers with more information.


Conclusion

LendKey teams up with these private lenders to offer Private Student Loans. This may be a good option if your credit score does not qualify for other private loans since the loans offered via LendKey does not usually require high credit scores.

LendKey also offers you alternatives to get banks by bringing credit unions and local banks into the student loan refinancing market. As there is no commitment, there is no reason not to check with the LendKey to know the offers you get.

No offers are final until they run a hard credit check on your accounts. Assuming your credit score is good enough, you might not have any trouble getting a refinanced loan. As LendKey is not the real lender go through the agreement before signing. 

Also, note that refinanced student loans have some downsides if the refinanced loan is federal loan then you will be losing their perks and benefits such as protection and programs to make you pay effortlessly like an income-driven repayment plan or forgiveness program.

Before converting the federal loan into a private refinanced loan make sure that you understand the perks and benefits that you are loosing and look for new lenders to see if the offer does provide any protection under cases of financial hardship.

If you feel that refinancing is right for you then LendKey can help you get offers with competitive terms. You can consolidate multiple loans into a single loan with a single monthly payment, possibly at a lower interest rate. This can help you save some money on the student loan repayment in the long run.


FAQ's

  Does Lendkey have a prepayment penalty?


No, it does not charge on any application fees, origination fees or prepayment penalties. You don\'t get a penalty for paying your loan debts before the specified timeline further its very good to see it has no charges on it.

  Does LendKey refinance parent PLUS loan?


The PLUS borrowers are not attractive for candidates for refinancing because they have a long history of credit they need to make stable employment. Refinancing it can be a good option for parent PLUS to save money on the interest on the go.

  How Long does it take to refinance a student loan?


It usually takes around 30 to 60 days starting from the loan approval to the private loan refinancing is done. You need to make continue payments on the old loan of yours till your lender gives you notice that your old have been paid off.

  Is refinancing my student loans a good idea?


It gives you options to look around for with a lower rate of interest for a better deal. The higher the interest rate on the current loan then more you will be benefiting from refinancing for a lower rate. Where you also need to have good credit in order to meet the underwriting standards of the best lenders that can refinance student loans.

  Does LendKey refinance Sallie Mae Loans?


Despite Sallie Mae not providing refinancing offers such as others offer. But, both the private and federal student loan are eligible for refinancing where you can choose to refinance the single loan into a lesser interest rate or combine multiple into one. Refinancing will make loans into private one leaving the perks and benefits.

  Can you consolidate private student loans federal?


Private student loans cannot be consolidated with federal student loans. Where they have low-interest rate on the federal consolidation loan which is not available in the case of private education loans. But, there are several options which are available for the refinancing private education loans.

  How do I contact LendKey?


Phone (888) 549-9050 The hours of work are Monday to Friday from 8 am to 5 pm CST.

Email - customer.care@lendkey.com you can email them or log into your online account and contact.

  Is variable or fixed rate better?


In general interest rate are low on beginning and will increase so it\'s better to lock on to the loans with a fixed rate so based on the terms of your agreement the interest rate on the new loan will be same after the interest rate are high.

  What is a good interest rate on student loans?


In average the federal student loan interest rate is 4.81%  for the undergraduates, 6.38% for graduate students, and 7.44% for parent and graduate student loans. LendKey gives variable and fixed rates is 2.81% and 8.96% variable rates, 3.64% and 8.93% fixed rates.

  What is the grace period of LendKey?


The grace period of LendKey is provided for 6 months once the beginning of borrowers graduation and no longer listed half-time in degree programs. After the due of the grace period, you need to make the payments with principal and interest.