Lendkey Student Loan Refinancing Review

Private Student Loan Market Overview

The private student loan market in the US is substantial. According to data from the Consumer Financial Protection Bureau (CFPB), the outstanding balance of private student loans was approximately $119 billion in 2020, and private loans made up approximately 10% of all student loan debt in the US. The private student loan market has grown over the years as the cost of higher education has increased, and more students have turned to private loans to supplement federal loans and cover the cost of tuition and other expenses.

Why do Students Go to Private Lenders ?

Students may go to private lenders for student loans because:

• Ineligibility for federal loans: If a student does not meet the eligibility requirements for federal student loans, they may turn to private lenders for funding.
• Insufficient funds from federal loans: If the amount of federal student loans a student is eligible for is not enough to cover their educational expenses, they may look to private loans to fill the gap.
• Alternative loan options: Private lenders may offer loan options, such as variable interest rates or different repayment terms, that are not available with federal student loans.
• Cosigner requirements: Some private lenders may offer loans to students who do not have established credit or a strong financial history, but require a cosigner to guarantee the loan.
• Faster disbursement: Private lenders may disburse loan funds more quickly than federal loans, which can be beneficial for students who need the funds to pay for expenses in a timely manner.

What is Lendkey ?

LendKey is a technology-enabled lending platform that connects borrowers with a, network of community banks and credit unions. The company's mission is to make borrowing simple, transparent, and affordable for borrowers by providing them with a variety of loan options and competitive rates.

Lendkey Company Information

Lendkey was founded in 2009 by Vince Passione and Mike Stallmeyer with the goal of making borrowing simple, transparent, and affordable for borrowers by connecting them with a network of community banks and credit unions.

The founders had the idea of creating a platform that would make it easier for borrowers to access loans from community banks and credit unions, which typically offer more favorable terms than larger national banks. At the time, these institutions were not able to reach a large number of borrowers because of the lack of technology. The LendKey student loan platform aimed to bridge that gap by providing borrowers with an easy-to-use online application process and a wide range of loan options.

The company started out by offering student loans and later expanded to personal loans and home improvement loans. LendKey's platform matches borrowers with the best loan options from its network of lenders, and it also provides borrowers with a range of tools and resources to help them make informed decisions about their loans.

LendKey quickly gained traction among borrowers and lenders alike, and the company has grown significantly since its founding. As of 2022, LendKey has origintated $5.0 billion in lending capital and service more than $2.3 billion in loans on behalf of hundreds of banks and credit unions. In all, more than 135,000 consumers have had their financing needs met through lenders that partner with LendKey.

Types of LendKey Student Loans

LendKey student loan products are broadly categorized in the below categories: 

1. Undergraduate student loans: Loans designed to help cover tuition and other education-related expenses for undergraduate students.
2. Graduate student loans: Loans designed to help cover tuition and other education-related expenses for graduate students.
3. Refinance loans: Loans designed to help students and parents consolidate their existing student loan debt into a single, lower-interest loan.
4. Parent loans: Loans designed to help parents cover the cost of their child's education.

LendKey's Features 

LendKey offers a variety of loan options and features to borrowers. Some of the key features of LendKey include:

• Network of Community Banks and Credit Unions: LendKey partners with a network of community banks and credit unions to provide borrowers with a wide range of loan options and competitive rates.
• Transparent and User-Friendly: LendKey's platform is designed to be transparent and easy to use. Borrowers can see all of the loan options and rates available to them up front, and there are no hidden fees or charges. Additionally, LendKey's platform makes it easy for borrowers to compare loan options and choose the one that best fits their needs.
• Variety of Loan Products: LendKey offers a range of loan products, including student loans, personal loans, and home improvement loans.
• Online Application and Approval: Borrowers can apply for a loan on LendKey's website, and the platform will match them with the best loan options from its network of lenders. The process is done entirely online, and borrowers can check the status of their application and get approved in minutes.
• Personalized Service: LendKey offers personalized service to its customers. Borrowers can contact LendKey's customer service team with any questions or concerns, and the team will work with borrowers to find the best loan options for their specific needs.
• Auto-Pay and Electronic Signature: LendKey offers a feature of automatic payments, which makes it easy for borrowers to stay on top of their loan payments and avoid late fees. Additionally, LendKey's platform allows borrowers to sign loan documents electronically, which makes the process more convenient.
• Credit Union and Community Bank Partnership: LendKey partners with credit unions and community banks, which allows borrowers to get loans from local lenders, and also supports local communities.
• Refinancing: LendKey offers refinancing options for student loans and personal loans.

Overall, LendKey is a good option for those looking for a personal loan, student loan refinance or home improvement loan, as it offers competitive rates and a user-friendly process. It's worth comparing LendKey's loan options to those from other lenders to see which one offers the best terms for your specific situation.

How does Lendkey Work?

You apply online for new loan or existing loan refinancing and LendKey will match you with the best lender based on your needs. 

For new loans -  Lendkey recommends to begin the process at least a month in advance before the tuition is due as Processing and certifying a loan may take several weeks.

The process of applying for a new loan through LendKey typically involves the following steps:

1. Gather information: Before applying, gather information about your education and financial history, including information about your school, the amount you need to borrow, and your credit score.
2. Apply online: Apply for a loan through the LendKey website or mobile app. Provide information about your education and financial history, including information about your school, the amount you need to borrow, and your credit score.
3. Review loan options: If you are approved for a loan, you will receive loan options from a network of community banks and credit unions. Review the terms and conditions of each loan option, including interest rates, repayment terms, and fees, to determine which loan is best for you.
4. Select a loan: Choose the loan that best meets your needs and complete the loan application process.
5. Sign and submit: Review and sign the loan documents and submit the required information to LendKey.
6. Receive disbursement: Once your loan is approved and funded, the funds will be disbursed directly to your school to cover tuition and other education-related expenses.

Note - Conditional approval may be granted for your loan quickly after initial review of your application and credit report. However, final approval and disbursement of loan won't come until supporting documentation is submitted and the school certifies the loan.

The process of refinancing a student loan through LendKey typically involves the following steps:

1. Check eligibility: Review your existing student loan debt to determine if you are eligible for refinancing. LendKey typically requires a credit score of 660 or higher and proof of income.
2. Apply online: Apply for refinancing through the LendKey website or mobile app. Provide information about your existing student loan debt and your credit and income history.
3. Review refinance options: If you are approved for refinancing, you will receive loan options from a network of community banks and credit unions. Review the terms and conditions of each loan option, including interest rates, repayment terms, and fees, to determine which loan is best for you.
4. Select a loan: Choose the loan that best meets your needs and complete the loan application process.
5. Sign and submit: Review and sign the loan documents and submit the required information to LendKey.
6. Receive disbursement: Once your loan is approved and funded, the funds will be used to pay off your existing student loan debt. You will then make payments on your new loan directly to LendKey.

Lendkey Student Loan Eligibility Requirements

Below are some of the key eligibility requirements.

1. Age - You must be at the age of majority where you live. 
2. Residency - LendKey loans are currently only available to US citizens or permanent residents. To apply for a loan through LendKey, you must show your proof of US citizenship or permanent residency. 
3. Enrollment - Loan Borrowers need to be enrolled at least half-time in a degree-granting program from an approved school to take out a private student loan through LendKey. You can also refinance your loans even if you are in school, as long as you graduated with at least an associate degree from a participating Title IV institution. 
4. Credit History and Income - To apply for a loan you need to show a minimum credit score and income level. If you don't have a credit history and a steady income, you will likely need a co-signer for the application.

Lendkey's Minimum Credit-Score Requirements

The minimum credit score required to apply for a loan through LendKey varies depending on the lender and the loan product. LendKey partners with community banks and credit unions to offer student loans, personal loans, and home improvement loans, and each lender sets its own minimum credit score requirements. A higher credit score can increase your chances of being approved for a loan and getting a better interest rate. However, the exact minimum credit score required to apply for a loan through LendKey will depend on the lender and the loan product, as well as other factors such as income and debt-to-income ratio.

In general, a  credit score of 660 and up has a good chance of approval. 

Lendkey's Fees 

LendKey may charge various fees associated with its loan products, including:

• Origination fee: A fee charged by the lender to cover the cost of processing and underwriting the loan.
• Late payment fee: A fee charged if a payment is received after the due date.
• Prepayment penalty: A fee charged if you pay off the loan before the end of the loan term.

It is important to review and understand the specific fees associated with each loan offered through LendKey before accepting the loan. This includes reviewing the origination fee, late payment fee, and any prepayment penalties, so that you can make an informed decision about the loan that best meets your needs and budget.

Keep in mind that the fees charged by LendKey may vary depending on the lender and the loan product, so it is recommended that you review the fees associated with each loan before applying.

Lendkey's Interest Rate and Loan Duration

For new loan, the Lendkey student loan interest rates, when you opt for autopay, are listed below :

• Fixed APRs - From 4.89% or 
• Variable APRs - From 5.21%

Interest rate on Refinancing with autopay:

• Fixed APRs - From 4.49% or 
• Variable APRs from 4.38% 

Amount of Loan disbursement: You may be able to borrow up to 100% of your school-certified cost of attendance, which can include tuition, room and board, books, and other expenses. 

When is the interest Accrued : You can get approved for a full academic year at once, but interest only accrues on what you borrow, and you can cancel any future disbursements with no penalty. 

Does Lendkey Offer Loan Forbearance

Lendkey offers a 6 month grace period after you graduate or otherwise stop being enrolled at least half-time in your program. The forbearance options are available on an individual basis. You will need to reach out to a customer service representative to find out what your lender offers. 

Is Lendkey a Scam ?

The Better Business Bureau rates LendKey at an A+ ranking which puts it in an exceptional category. The company also has an excellent rating of 4.5 out of 5 stars from Trustpilot based on more than 388 reviews.

The Consumer Financial Protection Bureau logged 43 complaints from 2020 to 2022. The top issue was trouble with how payments were handled. All complaints received a timely response. LendKey closed all complaints with an explanation or  monetary/ nonmonetary relief.

All of the stats above point to Lendkey not being a scam but a legit loan lending company.