We offer a variety of repayment terms and plans to help you pay back your loan while you complete your education. Feel free to use our student loan repayment calculator here to find a plan that works best for you!
Term Lengths
We offer repayment loan terms in 5, 7, 10, 12, and 15(1)-year increments. Note that not all applications will be approved for all repayment period terms. We carefully consider the information provided in the application, the credit report, and the expected cost of an Earnest loan. Therefore, we may only offer options that support the anticipated affordable repayment. For more information on what we look for in an application, you can review our eligibility criteria here.
Repayment Plans
The repayment plans will depend on whether you choose to apply on your own or with a cosigner. If you’re looking to apply as a solo borrower on your Earnest loan, we may offer deferred and fixed repayment plans. If you’re looking to apply with a cosigner on your Earnest loan, we may offer four repayment plans: deferred, fixed, interest-only, and full repayment. Check out this article if you are unsure if you should apply with a cosigner.
Find an in-depth explanation of Earnest’s in-school repayment options highlighted below.
- Deferred: $0 is due while you’re in school and during your 9 month grace period. Your 9 month grace period begins either after you graduate or if enrollment falls below eligibility. After the grace period ends, the full minimum monthly payments will be due. This option results in the highest accrued interest and the highest total cost of the loan.
- Fixed: While in school and for the 9 months following graduation, you’ll make monthly payments of $25. Nine months following your graduation, the full minimum monthly payments will be due.
- Interest-only: (This option is available for cosigned loans only.) While in school and for the 9 months following graduation, you’ll make monthly payments to cover the interest that accrued on your loan since the last payment. Nine months following your graduation, the full minimum monthly payments will be due.
- Full payment: (This option is available for cosigned loans only.) While in school and following graduation, the full minimum monthly payments will be due. This option will enable you to pay the least amount of interest during the life of the loan.
When does Repayment Begin?
If you choose a deferred repayment, the repayment period starts after your 9-month grace period ends(2). The 9-month grace period begins either after you’ve graduated or if enrollment falls below eligibility. However, if you choose the fixed, interest-only, or full payment options, the repayment period starts 25-60 days after the funds have been disbursed to your school. Please note that not all applications may be approved with every term length.
Choosing a Plan
When deciding which repayment option is right for you, it’s important to consider what financial commitment you will be able to meet while you’re in school. Clients with little savings and no plans to work while in school find that deferred or fixed repayment plans are good options. Whereas, clients with savings, a source of income, or some other source of loan payments (like a family member) generally find that interest-only or full repayment options work best for them.
If you choose an option that enables you to make no or partial payments while you’re in school and the 9-month grace period following graduation, it’s important to know a few things.
- To keep the loan in a no-payment or partial payment status while attending school, you are required to be enrolled at least half-time, without interruption, until the date of your graduation.
- If your school reports to us that you’re enrolled less than half-time or provides a last date of attendance, your loan will then enter a 9-month grace period. This is the 9 months following your graduation when you continue making the same payments while in school. The full minimum monthly payments will be due once your grace period ends.
- If you leave your program without completing a degree, you will enter the 9-month grace period. After the 9-month grace period, you will begin to make the full minimum monthly payments.
- Interest capitalization may occur on your loan, leading to a higher overall loan cost. Interest capitalization occurs when any accrued interest is added to your principal balance once your loan enters full repayment.
We hope the information written out above is helpful. If you prefer to see the info in a table format, check out the table below.
|
Deferred Available for cosigned and independent loans |
Fixed $25 Payment Available for cosigned and independent loans |
Interest-only Available for cosigned loans only |
Full repayment Available for cosigned loans only |
|
| How will my payments be set up? | $0 due until 9 months after graduation, full payments due thereafter. |
Pay $25 fixed monthly payments until 9 months after graduation, full payments due thereafter |
Pay just the interest that accrues on your loan each month until 9 months after graduation, full payments due thereafter |
Start making full principal & interest payments while in school and continuing after that |
| When will my first payment be due? | 9 months after graduation |
$25/fixed payments: 23-58 days after the first disbursement of your loan Full repayments: 9 months after you graduate |
Interest only payments: 23-58 days after the first disbursement of your loan Full repayments: 9 months after you graduate |
23-58 days after the first disbursement of your loan |
|
Enrollment Requirement? Must be enrolled at least “half time,” without interruption, until the date of your graduation. |
Yes, if your school reports to us that you’re enrolled less than half time, or provides a last date of attendance, your loan will then enter grace period and, full repayments will be due once your grace period ends | Yes, if your school reports to us that you’re enrolled less than half time, or provides a last date of attendance, your loan will then enter grace period and, full repayments will be due once your grace period ends | Yes, if your school reports to us that you’re enrolled less than half time, or provides a last date of attendance, your loan will then enter grace period and, full repayments will be due once your grace period ends | Not applicable |
|
Interest rate options |
Fixed/Variable | Fixed/Variable | Fixed/Variable | Fixed/Variable |
|
Grace Period Amount of time between when you graduate (or your last date of attendance) and when your first full payment will be due on your loan |
9 months | 9 months | 9 months | Not applicable |
| Overall loan cost | Results in the highest total loan cost. | Results in a small reduction to your total loan cost. |
Results in a larger reduction to your total loan cost. |
Results in the lowest total loan cost. |
1 Earnest’s Loan Cost Examples: This example provide estimates based on principal and interest payments beginning immediately upon loan disbursement. Variable APR: A $10,000 loan with a 15-year term (180 monthly payments of $118) and a 11.69% APR and a graduation date of January 2029 would result in a total estimated payment amount of $21,245. For a variable loan, after your starting rate is set, your rate will then vary with the market. Fixed APR: A $10,000 loan with a 15-year term (180 monthly payments of $127) and a 13.03% APR and a graduation date of January 2029 would result in a total estimated payment amount of $22,810.
This example provides estimates based on interest-only payments while in school. Variable APR: A $10,000 loan with a 15-year term (monthly payments of $97 while in school; monthly payments of $118 post-graduation) a 11.69% APR and a graduation date of January 2029 would result in a total estimated payment amount of $28,844. For a variable loan, after your starting rate is set, your rate will then vary with the market. Fixed APR: A $10,000 loan with a 15-year term (monthly payments of $109 while in school; monthly payments of $127 post-graduation) a 13.03% APR and a graduation date of January 2029 would result in a total estimated payment amount of $31,279. Your actual repayment terms may vary. Other repayment options are available.
This example provides estimates based on fixed $25 payments while in school. Variable APR: A $10,000 loan with a 15-year term (monthly payments of $97 while in school; monthly payments of $185 post-graduation) a 11.69% APR and a graduation date of January 2029 would result in a total estimated payment amount of $35,196. For a variable loan, after your starting rate is set, your rate will then vary with the market. Fixed APR: A $10,000 loan with a 15-year term (monthly payments of $97 while in school; monthly payments of $209 post-graduation) and a 13.03% APR would result in a total estimated payment amount of $39,631. Your actual repayment terms may vary. Other repayment options are available.
This example provides estimates based on deferred payments. Variable APR: A $10,000 loan with a 15-year term (monthly payments of $0 while in school; monthly payments of $208 post-graduation) a 11.69% APR and a graduation date of January 2029 would result in a total estimated payment amount of $37,389. For a variable loan, after your starting rate is set, your rate will then vary with the market. Fixed APR: A $10,000 loan with a 15-year term (monthly payments of $25 while in school; monthly payments of $234 post-graduation) a 13.03% APR and a graduation date of January 2029 would result in a total estimated payment amount of $42,129. Your actual repayment terms may vary. Other repayment options are available. It is important to note that the 0.25% Auto Pay discount is not available while loan payments are deferred.
2 Nine-month grace period is not available for borrowers who choose our Full Repayment (Principal and Interest Repayment) plan while in school.