LendKey is a marketplace platform that connects borrowers with a wide range of lenders, making it an excellent choice for those looking for private student loans. In this comprehensive review, we will dive into the various aspects of LendKey, including its services, terms, fees, customer satisfaction, and more. Whether you are an undergraduate, graduate student, or someone looking to refinance your student loans, LendKey may have the solution for you.
Table of Contents
- Introduction to LendKey
- LendKey Student Loans Overview
- Applying for LendKey Student Loans
- LendKey’s Loan Terms, Rates, and Fees
- Repayment Options and Benefits
- Eligibility Requirements for LendKey Student Loans
- LendKey’s Customer Satisfaction and Ratings
- LendKey’s Accessibility and User Experience
- Loan Forgiveness and Discharge Options
- Conclusion
1. Introduction to LendKey
LendKey was founded in 2009 as a marketplace platform that connects borrowers with various lenders, including credit unions and community banks. Unlike other companies that have a limited number of lending partners, LendKey offers borrowers access to hundreds of lenders, providing a wider range of loan options. This makes LendKey an ideal choice for those who value having multiple options and want to simplify the loan application process.
2. LendKey Student Loans Overview
LendKey primarily focuses on private student loans for both undergraduate and graduate students. Additionally, they also offer student loan refinancing and home improvement loans. By partnering with numerous financial institutions, LendKey aims to provide borrowers with competitive rates and favorable terms. Let’s explore the pros and cons of LendKey student loans.
Pros
- Six-month grace period on all loans: LendKey offers a generous grace period, allowing borrowers to defer full principal and interest payments until six months after graduation or leaving school.
- Connects borrowers to hundreds of lenders: Through LendKey’s marketplace platform, borrowers gain access to a vast network of credit unions and community banks, increasing the chances of finding the best loan offers.
- No application fees or origination fees: LendKey does not charge any upfront fees, making it more affordable for borrowers.
- Multiple loan options: LendKey offers private student loans for both undergraduate and graduate programs, catering to a wide range of educational needs.
Cons
- Aggregate and lifetime maximums apply: LendKey has borrowing limits, with a maximum loan amount of $120,000 for undergraduate programs and $160,000 for graduate programs. Additionally, there are aggregate limits that consider all student loans, including federal loans.
- Payments required while in school: Borrowers are required to make either interest-only or flat monthly payments while in school, which may be a drawback for those seeking full deferment.
- Only one loan repayment term: LendKey’s loans come with a standard 10-year repayment term, which may not offer as much flexibility compared to lenders with multiple repayment options.
- Eligibility requirements and policies vary by lender: Since LendKey connects borrowers with various lenders, the specific eligibility criteria and policies may vary.
In the next section, we will explore the process of applying for LendKey student loans and how the platform simplifies the loan application experience.
3. Applying for LendKey Student Loans
LendKey aims to streamline the loan application process by allowing borrowers to fill out one form and get connected to available lenders. This saves borrowers time and effort, eliminating the need to manually request quotes from multiple lenders. Here’s how the application process works:
Online Application: Borrowers can apply for new loans or refinancing through LendKey’s user-friendly online application form. The form collects essential information necessary for lenders to assess eligibility and provide loan offers.
- Matching with Lenders: Once the application is submitted, LendKey matches borrowers with suitable lenders from their extensive network. This ensures that borrowers receive personalized loan options tailored to their specific needs and financial circumstances.
- Conditional Approval: After the initial review of the application and credit report, borrowers may receive conditional approval for their loan. However, final approval is granted only after submitting supporting documents and having the loan certified by the borrower’s school.
- Document Submission: Borrowers are required to provide necessary documents, such as a copy of their government-issued ID, proof of income, and statements for each loan (in the case of refinancing). These documents help lenders verify the borrower’s information and finalize the loan agreement.
- Loan Agreement and Disbursement: Once the borrower’s documents are approved, they will electronically review the loan disclosures and sign the loan agreement. LendKey will then pay off the borrower’s old loans (in the case of refinancing) and create a new refinanced loan. The process typically takes at least 10 days, and borrowers are responsible for making their monthly payments with their previous loan servicer until the refinancing is completed.
By simplifying the loan application process and connecting borrowers with numerous lenders, LendKey aims to make the borrowing experience more convenient and efficient.
4. LendKey’s Loan Terms, Rates, and Fees
LendKey offers borrowers the choice between fixed and variable interest rates for their student loans. The specific rates, terms, and fees may vary depending on the lender chosen from LendKey’s network. Here’s an overview of the key aspects to consider:
Loan Types and Amounts
LendKey’s primary focus is on private student loans for undergraduate and graduate programs. The minimum loan amount is $2,000, and borrowers can borrow up to the total cost of attendance, with a maximum of $120,000 for undergraduate programs and $160,000 for graduate programs.
Interest Rates
LendKey provides competitive interest rates to borrowers, with both fixed and variable rate options available. As of July 2023, the fixed rates range from 4.39% to 8.30%, including a 0.25% discount for automatic payments. Variable rates range from 5.84% to 11.11%, also including a 0.25% autopay discount.
Loan Repayment Term
LendKey offers a standard 10-year repayment term for their student loans. While this term may not provide as much flexibility as lenders with multiple repayment options, it allows borrowers to plan their repayment over a fixed period.
Fees
One of the advantages of LendKey is that it does not charge any application fees or origination fees. This helps borrowers save on upfront costs and makes the borrowing process more affordable. However, it’s important to note that some lenders within LendKey’s network may charge late fees and nonsufficient funds fees, so borrowers should review the specific terms and conditions of their loan agreement.
In the next section, we will explore the repayment options and benefits available to borrowers through LendKey.
5. Repayment Options and Benefits
LendKey offers borrowers several repayment options to help them manage their student loan payments effectively. While the specific options may vary depending on the lender chosen, here are some common features offered through LendKey:
Grace Period
All LendKey loans come with a generous six-month grace period. During this period, borrowers are not required to make full principal and interest payments. Instead, they have the option to make either interest-only payments or a flat monthly payment, significantly reducing the financial burden while still making progress on their loan.
In-School Repayment Options
While borrowers are required to make some form of payment while in school, LendKey offers two options to make this more manageable:
- Interest-Only Payments: Borrowers can choose to make monthly payments that cover only the interest accrued on their loan. This helps keep the balance from growing during the in-school period.
- $25 Per Month Payments: Another option is to make a flat monthly payment of $25 while in school and during the grace period. This minimal payment provides some progress on the loan while still offering affordability.
Repayment Assistance Programs
LendKey’s partner lenders may offer various repayment assistance programs to borrowers facing financial hardship. These programs can include options such as forbearance, which allows borrowers to temporarily suspend or reduce their loan payments. However, it’s important to note that the availability of these programs may vary depending on the lender chosen.
In the next section, we will discuss the eligibility requirements for LendKey student loans.
6. Eligibility Requirements for LendKey Student Loans
To qualify for a LendKey student loan, borrowers need to meet certain eligibility requirements. Here’s an overview of the key criteria:
- Citizenship or Permanent Residency: Borrowers must be U.S. citizens or permanent residents to be eligible for a LendKey student loan.
- Enrollment Status: Borrowers must be enrolled at least half-time in an eligible degree-granting program. This requirement ensures that the loan is used for educational purposes.
- Income and Creditworthiness: While LendKey does not disclose a specific minimum credit score or income requirement on its website, having a creditworthy cosigner can improve the chances of approval and potentially lead to lower interest rates. The borrower or cosigner must have a minimum income of $24,000 per year.
It’s important to note that eligibility requirements may vary depending on the lender chosen from LendKey’s network. Additionally, some lenders may offer cosigner release options, while others may not. Borrowers should carefully review the terms and conditions of their loan agreement to understand the specific requirements and benefits associated with their loan.
In the next section, we will explore the customer satisfaction and ratings of LendKey.
7. LendKey’s Customer Satisfaction and Ratings
Customer satisfaction is an important aspect to consider when evaluating a student loan provider. LendKey has received positive feedback from borrowers, indicating a high level of customer satisfaction. Here are some key factors to consider.
Better Business Bureau (BBB) Rating
LendKey is accredited by the Better Business Bureau and holds an “A+” rating. This accreditation and high rating further demonstrate LendKey’s commitment to providing reliable and trustworthy lending services.
While LendKey has received positive customer feedback, it’s essential to remember that individual experiences may vary. Borrowers should conduct their due diligence and thoroughly review the terms and conditions of their loan before making a decision.
In the next section, we will explore the accessibility and user experience provided by LendKey.
8. LendKey’s Accessibility and User Experience
LendKey aims to provide a user-friendly and accessible platform for borrowers to apply for student loans. Here are some key aspects of LendKey’s accessibility and user experience:
Online Application Process
LendKey’s loan application process is entirely online, allowing borrowers to complete the entire process from the comfort of their own homes. This makes it convenient for borrowers to apply for loans and eliminates the need for in-person visits to a physical branch.
Resource Center
LendKey provides an extensive resource center on its website, offering educational guides and tools to help borrowers navigate the student loan process. The resource center provides valuable information on topics such as loan repayment options, financial planning, and managing student debt. Borrowers can access these resources to gain a better understanding of their options and make informed decisions.
Customer Support
LendKey provides customer support through phone and email channels. Borrowers can reach out to LendKey’s customer care team Monday through Friday from 9 a.m. to 8 p.m. EST. Additionally, borrowers can access their loan information and perform various tasks through the LendKey portal, further enhancing the user experience.
In the next section, we will discuss loan forgiveness and discharge options available through LendKey.
9. Loan Forgiveness and Discharge Options
In certain circumstances, borrowers may be eligible for loan forgiveness or discharge. However, it’s important to note that loan forgiveness and discharge options may vary depending on the lender chosen from LendKey’s network. Here are some common scenarios:
Death or Total and Permanent Disability
In the unfortunate event of a borrower’s death or total and permanent disability, some lenders within LendKey’s network may offer loan forgiveness. However, it’s crucial to review the specific terms and conditions of the loan agreement to understand the lender’s policies regarding loan forgiveness in such situations.
Federal Loan Discharge
LendKey’s student loans are private loans and do not offer the same federal loan discharge options available for federal student loans. Borrowers with federal student loans should explore the federal loan forgiveness and discharge programs offered by the Department of Education.
It’s important for borrowers to carefully review the terms and conditions of their loan agreement and contact their lender directly to inquire about loan forgiveness or discharge options.
In the final section, we will provide a summary of our review of LendKey student loans.
10. Conclusion
In conclusion, LendKey offers a convenient and efficient marketplace platform for borrowers seeking private student loans. With its extensive network of lenders, borrowers have access to a wide range of loan options. LendKey’s competitive interest rates, flexible repayment options, and favorable customer reviews make it an attractive choice for undergraduate and graduate students, as well as those looking to refinance their student loans.
While LendKey simplifies the application process and offers various benefits, it’s essential for borrowers to carefully review the terms and conditions of their loan agreement and understand the specific policies of their chosen lender. Additionally, borrowers should consider their own financial situation and compare loan offers from multiple lenders to ensure they are getting the best possible terms and rates.
Overall, LendKey’s marketplace platform provides a valuable service for borrowers, connecting them with reputable lenders and offering a seamless borrowing experience. Whether you’re pursuing higher education or looking to refinance your existing student loans, LendKey may be worth considering as a potential solution.
