For our student loan refinance product, deferment may be available to clients pursuing graduate education and while serving active military duty. Generally, interest accrues during the deferment period.
Forbearance is a protection that may be offered by Earnest for clients that are experiencing a documented and verifiable hardship such as:
- Involuntary decrease in income (e.g. reduction in hours, unpaid leave, or change from full-time to part-time employment)
- Involuntary loss of employment (defined as termination at no fault of the client)
- Significant increase in costs that are essential to the home or family (e.g. increase in medical expenses, emergency home repairs or child care)
- Parental leave
We typically require at least 3 months of payments before being eligible for forbearance. Please note that a voluntary resignation from employment, outside of extenuating circumstances, would not qualify for forbearance. During forbearance, interest continues accruing on your loan. We do report periods of forbearance to credit agencies, but this does not affect your credit score.
In the unfortunate event of death or total and permanent disability, Earnest will discharge all student loans.