About lender
Sparrow, founded in 2020, initially started as a marketplace for student loans, exclusively dedicated to student finance. Vetted by esteemed universities like Boise State University and Chapman University, Sparrow's platform allows users to compare prequalified rates conveniently, facilitating better terms and cost savings. Apart from refinancing options, Sparrow provides loans for undergraduate, graduate, and professional degrees, catering to diverse educational needs.
Features
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Loan Limits. Sparrow offers loan amounts ranging from $1,000 to $500,000, providing flexibility to meet various financial needs.
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Flexible Repayment Plans. Sparrow provides flexible repayment options, allowing borrowers to choose a plan that suits their financial situation and preferences.
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No Prepayment Penalties. Borrowers can pay off their loans early without incurring any prepayment penalties, enabling them to save on interest costs and manage their finances efficiently.
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Available for Consumers and Businesses. Sparrow's loan offerings cater to both individual consumers and businesses, providing access to financing solutions tailored to their specific needs and goals.
Pros and cons
Pros
Cons
Reliability
With a Trustpilot rating of 4 out of 5, Sparrow appears to have a favorable reputation among its users. However, it's essential to consider other factors such as the number of reviews and the specific feedback provided to gauge its reliability accurately. Additionally, researching further into Sparrow's credentials, industry reputation, and customer experiences can provide a more comprehensive assessment of its reliability.
How to apply for a loan with Sparrow
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Visit the Sparrow website. Navigate to Sparrow's official website using your preferred web browser.
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Click "Find my private student loan". On the homepage or the loan options page, locate and click on the option that says "Find my private student loan." This will typically be prominently displayed to guide users to the loan application process.
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Click "Sign up". After selecting your role as either a borrower or cosigner, click on the "Sign up" button to proceed with creating an account.
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Register. You will be directed to a registration page where you need to provide necessary information to create your Sparrow account. This may include personal details such as your name, email address, and password. Follow the prompts to complete the registration process.
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Apply for a Loan. Once your account is created and you are logged in, you can proceed to apply for a loan. Navigate to the loan application section, where you will be guided through the necessary steps to complete your application. Provide all required information accurately and thoroughly.
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Submit Your Application. After filling out the loan application form, carefully review all the information you've provided to ensure accuracy and completeness. Once you're satisfied, submit your application through the Sparrow website.
Conditions
- Free Service. Sparrow is a free service, meaning users don't have to pay anything to create a Sparrow profile and compare loan offers on the site.
- Loan Terms. Sparrow's partner lenders offer student loans with various term lengths, including five-, seven-, eight-, 10-, 12-, 15-, and 20-year terms, catering to both undergraduate and graduate students. It's essential for students to confirm the specific terms with their lender, as loan terms may vary.
- Loan Amounts. The minimum loan amount that can be applied for through Sparrow's lending partners is $1,000. The maximum loan amount available is typically based on the school's certified costs minus any financial assistance received, such as scholarships or federal financial aid.
- Student Loan Refinancing. For student loan refinancing through Sparrow's partner lenders, the minimum loan amount is $10,000, and the maximum is $500,000.
- APR Ranges. Fixed and variable APR ranges differ among lenders. Fixed APRs typically range from 2.15% to 14.98%, while variable APRs range from 0.99% to 12.99%. It's important for borrowers to review and compare APRs from different lenders to find the most suitable option for their financial situation.
Requirements
- Student Enrollment. Loans must be for students enrolled in an educational program at least part-time. This ensures that the loans are used for educational purposes.
- Age Requirement. Applicants who are younger than the age of majority in their state of residence need a co-signer. This requirement helps ensure that minors have the necessary support and financial responsibility when applying for loans.
- Application Form. Students can complete an application form on Sparrow’s website to determine eligibility and prequalified rates. This step allows students to assess their eligibility and potential loan options before proceeding with the application process.
- Credit Score Consideration. Most lenders consider the applicant’s credit score when determining loan eligibility. Students with poor credit, no credit, or those who are just starting to build their credit history may want to consider applying with a co-signer even if they are old enough to apply independently. This may help them qualify for loan products with better terms and lower interest rates, enhancing their ability to manage their educational expenses effectively.
Ways to receive the money
You will receive the amount from Sparrow through the lender you are connected with, as Sparrow itself is not a lender. The funding method typically depends on the policies of the specific lender you are matched with. In many cases, funds are deposited directly to your school's financial aid office to cover tuition and other educational expenses. It's important to review the disbursement process and any specific instructions provided by your lender to ensure that the funds are received and allocated correctly.
Products
- Undergraduate Student Loans. Designed to provide financial assistance to undergraduate students pursuing their degrees.
- International Student Loans. Specifically crafted for international students studying in the United States, helping them finance their education expenses.
- Graduate Student Loans. Tailored for graduate students seeking financial support to pursue advanced degrees or professional studies.
- Student Loan Refinancing. Allows borrowers to refinance their existing student loans, potentially securing better terms and reducing overall interest costs.
- Parent Student Loans. Designed to assist parents or guardians in financing their child's education by providing loan options specifically tailored for them.
- Crest. Sparrow's innovative offering allows users to embed student loans into their products seamlessly without the need for coding. With Crest, users can build and launch their loan integration in minutes, streamlining the process and reducing development time significantly.
Other Student Loans
Reasons you may be denied for Sparrow services
- Insufficient Credit History. If you have a limited credit history or poor credit score, lenders may consider you a higher risk borrower, leading to a denial of services.
- Low Income or Employment Status. Lenders typically evaluate your income and employment status to assess your ability to repay the loan. If your income is insufficient or unstable, it may result in a denial.
- High Debt-to-Income Ratio. If your monthly debt obligations are high compared to your income, lenders may be hesitant to extend additional credit, leading to a denial of services.
- Unstable Enrollment Status. For student loans, maintaining a stable enrollment status is crucial. If you're not enrolled at least part-time in an eligible educational program, you may be denied services.
- Previous Loan Default. If you have a history of defaulting on loans or missing payments, lenders may view you as a risky borrower and deny your application for Sparrow services.
How to repay Sparrow loan
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Review Loan Terms. First, carefully review the loan agreement and terms provided by your lender. This will outline important details such as the repayment schedule, interest rate, and any fees associated with the loan.
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Contact Your Lender. Reach out to your lender directly to discuss repayment options and obtain specific instructions on how to make payments. Your lender will provide you with information on how to set up payments, whether it's through an online portal, by mail, or through automatic withdrawals.
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Set Up Payment Method. Follow the instructions provided by your lender to set up your preferred payment method. This may include linking a bank account for automatic withdrawals, setting up online payments through the lender's website, or sending payments by mail.
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Make Timely Payments. Ensure that you make payments on time according to the schedule outlined in your loan agreement. Late payments may result in additional fees or penalties, and could negatively impact your credit score.
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Monitor Your Loan Account. Keep track of your loan account regularly to monitor your repayment progress and ensure that payments are being processed correctly. If you encounter any issues or have questions about your loan repayment, don't hesitate to reach out to your lender for assistance.
Student Loans like Sparrow
LendKey
Utilizing cloud technology, LendKey connects borrowers with local lenders, offering transparent, accessible, and low-cost loan options, including private student loans. They have facilitated over $6.3 billion in funded loans, helping more than 160,000 borrowers achieve financial goals with lower interest rates. Their platform supports both borrowers and lenders with comprehensive marketing, operational, and technological infrastructure.
College Avenue
College Avenue specializes in private student loans and refinancing. They offer flexible repayment plans, customizable loan terms, and an easy-to-use online application process. Their focus is on providing a straightforward and borrower-friendly experience.
Ascent Funding
Ascent offers a range of student loan products, including loans that do not require a co-signer. They provide both undergraduate and graduate loans with various repayment plans and rewards for good academic performance.
Earnest
Earnest is known for its customizable student loan refinancing options. They offer competitive interest rates and flexible repayment terms, allowing borrowers to tailor their repayment plan to fit their financial situation.
Editorial opinion
Important
How to Choose a Lender
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Make sure to confirm whether the lender is licensed to operate in your state. You can verify this information with your state regulator or attorney general.
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Check if the lender is a member of a reputable association, such as the Community Financial Services Association of America. Membership in such organizations may provide an extra level of reliability.
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Carefully review all the terms and conditions of your payday loan contract.
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Thoroughly examine the interest rates on payday loans and ensure that your contract includes a detailed breakdown of the total cost of the loan.
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Take advantage of your right of rescission. Usually, you can rescind the loan within three days after signing the agreement. Alternatively, there is typically a "cooling-off" period, which allows you several days to thoroughly review the contract before making an informed decision to enter into a consumer loan agreement based on the terms specified by the lender.
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Choosing a payday lender is a significant decision that demands careful consideration and a good understanding of how such organizations operate.
Additional Resources
- Sparrow Customer Reviews
