Repayment of loan
Earnest is quite flexible in terms of repayments. If you took a student loan to refinance option, you could file for an academic or military deferment.
The borrowers can who face an involuntary decrease in income, loss of employment, or increase in essential costs can take a forbearance. The option allows for the postponement of loan payments in three-month increments. Total forbearance can be up to 12 months.
You can also take a skipped payment once in 12 months. The loan payment will be issued upon the total loan balance, so your following payment will be slightly higher.
Earnest's private student loan product offers an immediate loan payment option. You can contribute full payments as soon as your funds are transferred. Alternatively, borrowers can choose not to contribute towards their personal loans while at school or pay a $25 extra on a payment date.
The deferment period for student loans can last until a nine-month grace period is over or up to 48 months if a borrower takes a medical residency, fellowship, or internship.
After your deferment period is over, you will need to make your monthly payments in full. Each monthly payment is an even part of your total loan balance.
Payment options
Standard repayment. You will make monthly payments, both of interest and principal amount. It is the fastest option to pay your loan back.
Interest-only payment. You will contribute your loan payments only in interest. Typically, you can take a six-month program. It can be combined with extended-term and forbearance.
Extended-term. You can contribute lower monthly payments for a longer-term. This option can last about 30 years and will gradually decrease your loan balance.
Rate reduction. Suits if you can't make full payments due to financial difficulties but are still able to make lower payments. It lasts about six months.
Deferment. This option reduces your monthly payments for some time.
Forbearance. Postpones payments for some time. You can still contribute towards your loan during this period.
Loan forgiveness. The borrowers may be disabled, die, or experience other factors that make them unable to pay back their loans. Earnest can forgive your loan in such a situation.
Conditions of a loan extension
Borrowers can extend their payment date by seven days. It is possible by changing the autopay date through a personal account on Earnest.
Another option to extend the loan term is deferment. It is possible not to contribute anything towards the loan payment as long as your grace period lasts. It may be extended for a nine-month grace period, for all loans, and up to 48 months for loans taken to cover medical residency, fellowship, or internship. A skipped payment, which you can take once in 12 months, counts towards deferment.
Early Payoff
If you can afford to make a larger payment, there is an option to do it through autopay. You can also contribute payment bi-weekly.
Earnest allows its customers to make same-day payments and schedule extra payments simultaneously.
