LendKey Student Loan Market Review 2022

Personal Finance Insider writes about products, strategies, and tips to help you make smart decisions with your money. We may receive a small commission from our partners, such as American Express, but our reports and recommendations are always independent and objective. The terms apply to the offers listed on this page. Read our editorial standards.

Should you use LendKey?

What is a student loan marketplace?

A student loan marketplace allows you to compare loan offers from multiple lenders Right away. The marketplace allows you to check your rates without affecting your credit score.

If you choose not to use a student loan marketplace, you will need to complete separate applications for each lender you are considering. You will then have to compare the terms of each loan yourself; a spreadsheet can be helpful here.

LendKey Review

LendKey too not a lender, and does not underwrite or finance loans. Instead, it matches you with one of its partner credit unions or community banks. The company offers student loan refinancing and new private student loans.

The term extends refinanced loans range from five to 20 years. Refinanced loans have variable rates between 1.90% to 5.25% with AutoPay and fixed rates between 2.49% to 7.93% with AutoPay. AutoPay offers you a 0.25% discount on the rate.

New LendKey loans are only for a term of 10 years. With a 0.25% Automatic Payment discount, new loans have a variable APR between 1.57% and 7.66%. Your fixed APR is between 3.99% to 7.66% with AutoPay.

You can borrow up to 100% of your cost of attendance with LendKey. The minimum loan amount for a new loan is $2,000, while the minimum for a refinanced loan is $5,000. The minimum to refinance is $10,001 in Arizona and Connecticut, and $6,000 in Massachusetts. Applying for a lower loan amount will not increase your chances of approval, since approval is based on a review of your credit.

The company doesn’t disclose a minimum credit score you’ll need to get a loan, but in general, the higher your score, the more likely you’ll be approved.

LendKey allows cosigners on your loans. Co-signers are not required, but they can improve your chances of getting a loan or qualify you for better terms than you would on your own.

You will not pay any origination fees or prepayment penalties with LendKey.

Who is LendKey best for?

LendKey is best for borrowers who don’t want the hassle of applying to multiple lenders and searching for the best rates. LendKey will handle this process for you with a simple app.

Plus, you might like LendKey if you can qualify for their lower rates, which are competitive with rates from many other major student loan lenders.

Is LendKey trustworthy?

LendKey has an A grade of the Better Business Bureau, a nonprofit organization focused on consumer protection and confidence. The BBB determines its ratings by evaluating a company’s response to customer complaints, honesty in advertising, and transparency about business practices.

A company’s BBB rating does not guarantee that it will have a good relationship with the lender, so take it with a grain of salt. Ask friends and family about their experience with the company before making a decision.

LendKey has not been involved in any recent controversy. LendKey has a clean history and an excellent BBB rating, so you can decide you’re comfortable borrowing from the lender.

How LendKey Compares to Other Loan Marketplaces

We’ve compared LendKey to two other lending marketplaces with similar offerings and signup processes: Credible and Lend-Grow.

LendKey has slightly higher minimum rates than Credible or Lend-Grow, but caps your rates lower than Credible. If you have an excellent credit score, you may be able to get a slightly lower interest rate with Credible or Lend-Grow.

Lend-Grow only offers student loan refinancing, so you’ll have to choose one of the other lenders if you want a new loan. In addition to student loan offers, Credible also allows you to search for personal loans, home loans, and mortgage refinance offers.

None of these loan markets have a mobile app or charge any fees.

Frequent questions

What is the benefit of a student loan marketplace?

A student loan marketplace shows you a list of lenders and the rate each would charge you. You won’t have to spend time filling out multiple applications with different lenders—it’s all in one place for you.

Why should I refinance my student loan?

Here are common reasons to refinance your student loans:

  • To lower your interest rate. This is probably the most common reason people refinance their student loans. If you can get a better interest rate—perhaps your credit score has improved, you’ve added a co-signer, or you’ve found a lender with more favorable terms—you’ll save money on your loan.
  • Switch from a variable interest rate to a fixed one. While variable rates often start out lower than fixed rates, you’re not guaranteed they’ll stay low indefinitely. You may prefer to lock in a fixed rate so you can create a fixed payment plan for your loan.
  • To change the length of your term. If your monthly student loan payments are too high for your current budget, you may want to spread your balance over an extended period of time. Keep in mind that if you extend the length of your term, you’ll likely pay more in total interest. If you want to save on general interest, you can reduce the term of your loan. This will allow you to aggressively pay down your debt by making higher monthly payments.

What happens if I refinance my federal student loan?

Be careful before deciding to refinance a federal student loan. Even if you can get a lower rate when you refinance a federal loan into a private loan, lose key protections that come with federal loans. For example, you will not be eligible for the COVID-19 related student loan repayment pause, currently in effect until August 31, 2022, and for federal student loan relief programs such as Public Service Loan Forgiveness.

You will also miss out on certain payment options like Income-Driven Payment Plansthat take into account your specific income and family size when determining monthly payments.

Previous post Bomb Shelter Book Review by Mary Laura Philpott
Next post Bullish investors are scared, but it will take more pain to give up stocks. They will get it.
%d bloggers like this: