LendKey Student Loan Refinancing (And Private Loans) Review


(gentle music) – Hey guys, Max here. In this video for the College Investor, I’ll be reviewing LendKey student loan and refinancing company. So, let’s go. This video’s going to
have five different parts. Part number one is going
to be about LendKey’s refinancing student loan options. Number two’s gonna be about
the rates and the terms for refinancing student loans. Third will be a section on applying for and getting new private student loans. Number four, the fine print, the little things at
the end of the contract. Is there anything weird in there? We’re gonna check it out. And then lastly, number
five is the bottom line. Is it a good service, is it not? And I’m gonna give a report
card, a grade, on LendKey. Before we get to part one,
just a really, really short, really, really quick history on LendKey. So, they operate in three different ways. They offer student loan refinancing, new private student
loans and personal loans. And how they work is
they’re an aggregator, meaning they partner you,
the prospective loanee, to a loan person, a bank, a credit union. So they actually pair you
up with different offers, and then you, as the consumer, would choose which one is best. You’re not going to receive the money from LendKey for instance, but you will receive the money
from a bank or credit union and then LendKey actually
services the loan, so you’ll make the payments
to them a lot of times. But it gives you a ton of
options which is super helpful, especially when you’re
refinancing a student loan, you wanna figure out which
one is the best deal. And they’ll give you more
than a couple options to figure out which one
is the best for you. Now, to the fun part. Section one, refinancing
student loans, let’s go. So they judge you and based
upon your credit worthiness and a variety of pretty basic factors. First one is credit score, you need at least a 680 credit
score to qualify for this. So they really push, their big
thing is pushing a cosigner, because most people who
just finished college or are thinking about
refinancing their student loans, usually don’t have that good of credit. When you put the cosigner on though, after a 12 to 36 payment period,
you’re able to remove them because you’ve proved that
you are the real deal. Good for you. So, if you have a cosigner
or have super good credit, it could be a really good
thing on refinancing. But again, every situation
is super different. I will never stand here and tell you refinancing is the best option. Based upon your situation, take some other factors
into consideration, meaning the income-based federal program. This is not how private loans
work, they don’t have that. So if you’re on an income-based program, it may be in your best
bet to stay on that, until you’re able to get
perhaps a little more income or get onto your feet a little bit more, a little bit more established. Section numero dos. And that is rates and
terms for refinancing. LendKey’s pretty awesome. They offer a variety of different terms and a variety of different interest rates, depending upon which loan you choose. Their terms go from five,
seven, 10, 15, or 20. So there’s quite a few different options to choose from when
you’re talking about rate. Obviously, pretty easy to figure out, the shorter the term,
the higher the payment. So, stretching it out longer
will be a lower payment, but again you’re always
gonna pay more interest on a longer loan, so take
that into consideration. In regards to rates, on a fixed loan, the rates are between 3.15 to 8.54. So pretty competitive rates. Variable rates, 2.49 to 7.9 APR. Those are super competitive rates. I don’t know where you’re gonna find something better than that, so it could be a really good option. And lastly, you need at least
$5,000 minimum to refinance. And then super lastly,
is you can refinance, and this is a good thing, especially for those who are
coming out of university, you can refinance a parent plus loan into an individual person’s name. So Mommy and Daddy, who took
on your student loan debt, make sure to give them
a big kiss (smacks lips) ’cause they did a really
good thing for ya. But now you can start taking that, as an adult, a little more responsibility. So you can refinance
that parent plus loan, which could be in either
one or both your parents, into your individual name and
start becoming a real adult, a real, real man or real girl, real woman. Taking responsibility, do it. Number three, new student loans through a private institution. Without a cosigner, you need
a minimum income of $24,000, 24k, 24 karat magic, not
that, $24,000, minimum. And the rates for variable
new loan start at 4.7, fixed term starts at 5.36. We’re gonna take an
aside for a moment though and talk about the UI, user interface, it’s super, super, super,
super, yeah that many supers, super seamless and awesome. It’s a great website, a really, really, just an easy process,
it’s a super easy process. I’m glad they make it
easy, because I know, I’ve applied for a mortgage for instance and it was not an easy process, they wanted this, that, the other, it was a huge elongated process. LendKey definitely has it down, when it comes to user interface and how the process of getting money and getting a loan should be. Number four and that’s the fine print. What is in the fine print of the contract? In my best legalese opinion
and of the College Investor, the fine print looks pretty
legitimate, nothing too weird. They do push a cosigner pretty hard, ’cause they want you to qualify obviously, that’s the only weird thing. And in regards to, you may
receive identical offers from different banks, so
you may have a 5.5 APR from three different banks, doing the exact same term, the whole bit. So it’s up to you to do your due diligence do research on the banker credit union and figure out which one is going to support your needs and wants, as opposed to just clicking the one that looks the most convenient. Five, the bottom line and report card. I apologize, that was a super
lame attempt at a deep voice, I don’t have a deep
voice, but that’s okay. Anyway, so the bottom line is this, LendKey seems to have a
lot of things going for it. No origination cost, no application fees, a lot of good things going for it. Lots of different options in regards to banks and credit unions. It could be an awesome thing to refinance. And I think the cool thing is that refinancing out of
the parent plus loan, into the individual name,
to start giving your parents a little more, (laughs) a little more hope that you actually have your
crap together (laughs). Anyhow, so those are just
a couple of good things going for it and LendKey
is a super good option. But again, the double bottom
line, bottom, bottom line, is to only refinance when
it really does make sense. Just because it’s a lower interest rate, doesn’t always mean you should do it. Although it may feel good, or it may dollar and cents wise work out, what happens if you’re in a
job and then you lose your job? With the private loan, you
don’t have the safety net of the federal loan,
income-based repayment program. So, you have to make that
some monthly payment, whether you have a job or not have a job. So until you’re in a place
where you’re up on your feet and established, it may not
be a good idea to refinance. But again, if things work out together, the interest rate, you’re established, LendKey is one of the
best options you can take for refinancing a student loan. And the report card, it’s kind of like your last final in college,
we give a report card. So, drum roll (mimics drum roll) LendKey receives a 90 out of
100 on five different factors. This video is way too short
to go over the five factors. Go to the post and read it, but 90 out of 100, definitely a solid A. Could it improve? Sure, everybody can
improve, but we’ve seen some really good success, a
really good user interface. The five factors I talked
about were really, really good, so LendKey could be a good option for you in refinancing your student loan, getting a new private student
loan or a personal loan. They have loans for home improvement, so maybe your kitchen
needs to be remodeled. Anyway, LendKey is a
really, really good option for doing all three of
those different things. But I’m sure there’s more,
this is a very short video, very breve way of looking at LendKey. What experience have you guys had? What feedback, what good things, what bad things did I not touch on? Comment below, subscribe
to the College Investor, you won’t get wrong, Robert
has some really good stuff. So dive deep, comment below,
I wanna see some banter and you will see me in
the comments section. See you guys really soon. (gentle music)

Paul Whisler

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