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Your Earnest Loan and Coronavirus (COVID-19) - What You Need To Know

First and foremost, we’re here to help. We want you to know we’re making every effort to stay on top of current and recent developments about Coronavirus (COVID-19). Any updates we have will continue to be included in this article. 

Please see below for the latest Coronavirus updates related to your Earnest loan:

What can I do if I’m experiencing financial hardship or I anticipate that I will have a financial hardship in making my upcoming loan payments?

Coronavirus disaster forbearance payment postponement

During this time of national emergency, Earnest is offering up to three months of postponed payments, through a disaster forbearance, to qualified clients who request it. Interest accrues during forbearance, but will not be capitalized (added to the unpaid principal) at the end of the forbearance period. (Please note if the accrued interest is not paid and you use a different type of forbearance or deferment in the future, the interest could be capitalized at that future time depending upon your loan and state, Refer to your loan agreement for more information.) While we do not require payments during the forbearance period, you can always make extra payments to help lower the overall cost of your loan.

To request a disaster forbearance, please complete our request form found here. We ask that you provide the following details to help us efficiently deliver your available options:

  • Details of how COVID-19 has financially impacted you. (loss of employment, loss of wages, etc.)
  • The industry you and those affected in your household are currently working in.
  • If we’re able to postpone your payment temporarily, when do you anticipate being able to resume payments on your loan?

Please note, our response times are currently at ten days. However, we will process your request from the date received, and any scheduled manual or automatic payments will be processed until forbearance is approved.

The Federal Reserve recently dropped interest rates in response to Coronavirus, how does this impact my loan with Earnest? 

We completely understand your desire to take advantage of lower rates. Unfortunately, the Fed’s interest rate isn’t the only factor in how our interest rates are set. We are committed to offering you the most competitive rates we can find and to offering you the best rate possible based on the market conditions. We appreciate this is a time of uncertainty and we are doing our absolute best to provide as much information and support as we can as quickly as possible.

The White House recently announced plans to freeze interest payments on student loans, what is Earnest doing?

This announcement is in regards to federally-owned student loans. Earnest loans are not subject to this proposed policy change. While we’re not part of this policy change, we’ve created options for those experiencing financial hardship. Please take a look at the first question mentioned above on reaching out to us to learn more about your options.

What if I’m considering student loan refinancing during the current national emergency or have a pending application?

Due to recent events, including an executive order by the President to waive federal student loan interest during the COVID-19 crisis, we want Earnest clients to explore all their options before applying to refinance their federal student loans. 

Refinancing a federal student loan with a private lender means you will no longer have access to benefits of your federal loans, including the temporary 0% interest rate on federally held loans, and suspension of payments, which may last for a number of months.

Please carefully review your current and potential benefits with a federal loan servicer before refinancing. 

Call us at 1-888-601-2801 if you have a pending refinancing and want to review your options or cancel your pending loan, as described below:

If you recently refinanced your student loans with us, you have a right to cancel this transaction, without penalty, by midnight of the third business day after the day you received your Final Disclosures. Please see your Final Disclosures for the specific date and instructions on how to cancel. Your Final Disclosures were emailed to you with the subject line “Your Earnest Loan Agreement” on the day you finalized your loan. If you’re unable to locate your Final Disclosures, please reach out to our Client Happiness Team.

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