LendKey is a network of community banks and credit unions where you can get private student loans. LendKey student loans can help you save money through their low-interest rates loan offers. Through this platform, you can get Private Student Loans, and You can also get a loan to Refinance your existing student debt.
We will explore both Private student loans and Student Loan Refinance offers through the LendKey platform. By the end of this review, you will know; the minimum credit score you need, how long it takes for loan approval, and the pros and cons of both types of student financing options.
Private Student Loan Review
LendKey provides low interest and cheap private student loans to those interested in pursuing their dreams through education but have limited to no financial means. If you are a student who loves to work with local and regional banks and credit unions, consider exploring LendKey.
When you apply with LendKey, there is one important piece of information to know: the death and disability claws. The death and disability protections are there but are not requirements. Although all LendKey lenders have forgiven student loans in the event of death and disability, they do not have the death and disability claws in the contract.
How are LendKey’s Interest Rates and Terms for Private Student Loans?
LendKey has a fixed rate of 4.25 to 12.59% APR and a variable rate of 1.13 to 11.23% APR for private student loans. If your credit score of less than 660, you won’t be eligible for a private student loan with LendKey. But you can include a cosigner with good credit to be able to get a student loan.
The terms for private student loans from LendKey’s network of Lenders range from 5years to 15years. The minimum you can borrow is $1000 up to the total cost of your education. Although you don’t have to pay for the application, origination, and prepayment fees, there is a 5% late payment fee. This late payment fee kicks in after 15 days of not paying the due amount.
When should you apply for a Private Student Loan on LendKey?
You should apply at least one month before when the tuition payment and other college fees are due. LendKey themselves even recommends applying earlier than the one month before your tuition due date. The early application is because you might be asked to provide additional documents.
Your school also needs to review and certify the loan, which could increase the time in the application process.
But how long does the application process usually take? It generally takes less than 30days for any lender on LendKey’s network to process and certify your private student loan.
What are the Requirements for Applying?
Compared to other private student loan lenders, LendKey has more strict requirements. Although the minimum credit score of borrowers is 660, the typical credit score of approved borrowers is 689. Below are the essential requirements you need to fulfill;
- You or your cosigner must be a US citizen or have a permanent resident status.
- Must be enrolled in an accredited university or higher education institution.
- You have a minimum credit score of at least 660
- Your debt-to-income ratio shouldn’t exceed 33%.
- Most lenders on the network require a minimum income of $24000 per year.
- If you need a cosigner, they must have a minimum credit score of 748 and an annual income of $85000 to increase your chances of getting the loan.
Student Loan Refinance Review
Apart from getting private student loans from LendKey, you can also refinance your existing student debt. LendKey has helped many students to save thousands of dollars through their student loan refinance program.
Lenkey has two options for student loan refinancing, depending on the type of loan you have.
1. If you have Federal student debt, you should go through the federal Direct Consolidation Loan Program, which the government offers.
Note: You will lose certain benefits like loan forgiveness and income-based repayment options when you refinance your federal student loan with a private lender.
2. The other option is to refinance your private student loan, which is pretty straightforward.
In addition to refinancing your student loan, LendKey also has a Student loan consolidation and refinancing program. With this program, you can combine both federal and private student loans into one. This consolidation usually comes with convenient payments and lower monthly payments.
How are the Interest Rates and Terms for Refinancing Your Student Loans?
LendKey offers a variety of different terms and interest rates depending on which one you choose. The lowest interest rate is at 1.90% for variable APR or 2.49% for a fixed APR. The terms are from 5 to 20 years which gives you more options to decide how long you want to repay your loan in full.
Note: The longer the repayment period, the lower the monthly payment. But, you will have to pay more interest over the life of the loan.
The minimum amount you need to borrow for student loan refinance is $5000. The maximum amount will depend solely on how much you owe or want to refinance.
What are the Requirements?
- You must be a US citizen or permanent resident.
- You should have at least an associate degree.
- The minimum credit score required is 660, with a minimum yearly income of 24,000.
- Your maximum debt-to-income ratio shouldn’t exceed 50%.
- You must be a resident in one of the 50 states except; West Virginia, North Dakota, Nevada, Rhode Island, or Maine. For these listed states, there are no loans available.
- Must be at least 18 years or older.
What are the benefits of LendKey Student Loans?
- There are no application, origination, or early repayment fees.
- The lenders on LendKey’s network offer hardship forbearance. You can pause payments for 6months at a time. It even extends up to 18 months for the entire life of the loan.
- LendKey offers a grace period of 6 months which begins after you graduate or are no longer enrolled in at least half your degree program. Once this grace period is over, you must start making regular payments for the principal and the interest balance.
- Unlike other lending aggregators, LendKey will be your direct servicer of the loan. It means you don’t have to deal with a third party if you need any assistance.
- You can add a cosigner if you don’t meet the minimum credit score requirement of 660.
- You’ll get a reduced interest rate of 0.25% if you sign up for automatic deduction on your student loan repayment.
- You can pay the monthly interest while you are still in school. The minimum amount is $25.
- You don’t need to be a full-time student to get a private student loan from LendKey.
- LendKey has fantastic customer service available to help you through any difficulties at any time.
What are the drawbacks of LendKey Student Loans:
- Not suitable for borrowers with bad credit or no credit. The minimum credit score is 660.
- If you are not making at least $24000 annually, you won’t be eligible for a student loan.
- LendKey does not operate in all 50 states.
- There are no income-based repayment options available. There are no loans available for West Virginia, North Dakota, Nevada, Rhode Island, or Maine residents.
How the application process works:
The application process is straightforward. All you need to do is to complete the online application form on Lendkey’s website. Once you apply, LendKey will conduct a soft credit check which won’t affect your credit score. After conducting a soft credit check, they will send you offers that you can choose the best for you.
Once you have chosen an offer, LendKey will conduct a hard credit check to make sure you meet the minimum requirements before approving the loan. You could be asked for additional documents depending on the lender whose offer you choose. But during the application process, LendKey will tell you all of the essential documents needed.
If you have all documents submitted, your loan will be disbursed within a month.
Frequently Asked Questions About LendKey Student Loans:
How long does it take LendKey to approve a loan? Although LendKey takes generally takes 30 days to process and certify your student loan. But some applications may take longer than 30 days if you need to submit more documents or your school delays approving your program.
Where is LendKey Located? LendKey is an online aggregator with its Head-Quater in New York, US. The Lending partners on LendKey’s network are scattered across the US except in West Virginia, North Dakota, Nevada, Rhode Island, or Maine.
Does LendKey have a prepayment penalty? No. LendKey does not charge you if you choose to pay off your loan early.
Does LendKey require a cosigner? It depends on your credit score and monthly income. If your credit score is below 660 and your income is less than $24000 per year, you need a cosigner. Otherwise, you wouldn’t need a cosigner if you met the essential requirements. For more details on the requirements, you can check the requirements subsections above. There is one for private student loans, and another for student loan refinance.
Bottom-Line
LendKey student loans are suitable for borrowers with a fair credit score of at least 660. If your credit score is below 660, and your yearly income is lower than $24000, you might want to consider including a cosigner or check out other lenders.
