EARNEST INC
LARGO, FLORIDA

Projected savings for clients who provided outstanding balance, APR, and current monthly payment amount for their existing student loan(s) All refinancings by clients who chose a longer term than their existing student loan. (Why: some clients choose longer loan terms to match their monthly loan obligations to their unique life circumstances; while we encourage clients to take advantage of Earnest’s flexible term and monthly payment features, these cases are not indicative of the savings that result from lower rates through better data.) Rates shown include 0.25% APR reduction where client agrees to make monthly principal and interest payments by automatic electronic payment. Use of autopay is not required to receive an Earnest loan. Savings calculations are based on refinancing $121,825 in student loans at an existing loan servicer’s interest rate of 7.5% fixed APR with 10 years, 6 months remaining on the loan term. The other lender’s savings and APR (light green line) represent what would happen if those loans were refinanced at the other lender’s best fixed APRs. The Earnest savings and APR (white line) represent refinancing those loans at Earnest’s best fixed APRs. Savings is computed as the difference between the future scheduled payments on the existing loans and payments on new Earnest and “other lender” loans. The calculation assumes on-time loan payments, no change in interest rates, and no prepayment of loans. Individuals portrayed as Earnest clients on this site are actual clients and were compensated for their time to participate. Questions? We’re here to help. Earnest is an attempt to correct those flaws, and in the process save young borrowers thousands of dollars. Beryl and his growing team launched the company last year with a personal loan product designed to cover major life events like relocation or marriage, and introduced a student loan refinancing product in January. Unlike traditional loan providers, which evaluate borrowers’ credit histories through the lens of the FICO system, and unlike startups such as LendUp, to assess borrowers’ risk of default, Earnest approves applicants based on a comprehensive snapshot of their career history and their finances. That message is resonating: Earnest is on track to hit a lending run rate of $1 billion by the end of the year. According to the company, the average customer paying off a bachelor’s degree will save $11,143 with Earnest; savings are even higher for graduate-level degree-holders like MBAs ($14,740) and lawyers ($30,715). One of the customers who participated in the company’s student loan refinancing pilot, Beryl says, was a librarian with a master’s degree in English literature. “This person makes a librarian’s salary but pays all bills on time and saves a huge amount of money each month.” In Earnest’s world, that borrower can refinance and save thousands of dollars, based on those good habits. Earnest is not alone in seeing an opportunity to profit from the existing system’s shortcomings. Startups CommonBond and SoFi, for example, also offer refinancing at lower rates. But Beryl is confident that Earnest’s flexible model, which allows borrowers to adjust their payment schedule with just a few clicks, will win over his millennial peers. Earnest also allows borrowers to set terms according to their preferred monthly outlay, and benefit from the lower interest rate associated with finishing payments in 7.8 years versus 10, or 14.1 years versus 15. The average Earnest loan term: 8.4 years, a metric that would be nonsensical for other loan servicers with standard 5-, 10-, or 15-year terms to analyze. Between 6-10% of Earnest’s customers have “We’re not trying to get into a price war with the other guys,” Beryl says. “But we are trying to win on customer service and design and better software.” Not to mention Bloody Marys. When Earnest noticed that many prospective customers were dropping off at the point where they needed to track down their original student loan documentation (no small task), the company decided to launch a $200 brunch reimbursement program. The idea was simple: Finish the administrative tasks associated with refinancing, and then treat your friends to pancakes. The “click through” on that word-of-mouth marketing has been strong, with Earnest’s organic site traffic hovering north of 90%. “We’re trying to build a company that will be awesome for the next 100 years,” says Beryl–one side of bacon at a time. Staff writer Ainsley (O'Connell) Harris covers the business of technology with a focus on financial services and education. Follow her on Twitter at Projected savings for clients who provided outstanding balance, APR, and current monthly payment amount for their existing student loan(s) All refinancings by clients who chose a longer term than their existing student loan. (Why: some clients choose longer loan terms to match their monthly loan obligations to their unique life circumstances; while we encourage clients to take advantage of Earnest’s flexible term and monthly payment features, these cases are not indicative of the savings that result from lower rates through better data.) Rates shown include 0.25% APR reduction where client agrees to make monthly principal and interest payments by automatic electronic payment. Use of autopay is not required to receive an Earnest loan. Savings calculations are based on refinancing $121,825 in student loans at an existing loan servicer’s interest rate of 7.5% fixed APR with 10 years, 6 months remaining on the loan term. The other lender’s savings and APR (light green line) represent what would happen if those loans were refinanced at the other lender’s best fixed APRs. The Earnest savings and APR (white line) represent refinancing those loans at Earnest’s best fixed APRs. Savings is computed as the difference between the future scheduled payments on the existing loans and payments on new Earnest and “other lender” loans. The calculation assumes on-time loan payments, no change in interest rates, and no prepayment of loans.