LendKey is a digital platform that connects borrowers with credit unions and community banks offering private student loans and student loan refinancing. This approach allows LendKey to offer competitive rates and terms by leveraging the lower cost structures of these smaller financial institutions. Here’s an overview of what LendKey provides and some key considerations:
Features and Services
- Private Student Loans: For students attending undergraduate or graduate programs, LendKey enables access to private student loans to cover educational expenses not met by federal loans, scholarships, or grants.
- Student Loan Refinancing: LendKey also offers refinancing options for existing student loans. This can be an attractive option for borrowers looking to lower their interest rates, reduce monthly payments, or change the term length of their loans.
- Competitive Interest Rates: Because LendKey partners with credit unions and community banks, it often can offer lower interest rates compared to traditional banks or large private lenders.
- No Origination Fees: LendKey loans typically come without origination fees, which can save borrowers money upfront.
- Co-Signer Release Option: Some LendKey lending partners allow for a co-signer release after a certain number of consecutive, on-time payments, which is a significant benefit for co-signers.
- Flexible Repayment Options: LendKey and its partners may offer various repayment options, including interest-only payments while in school or deferred payment options.
Benefits
- Savings: Potentially lower interest rates can result in significant savings over the life of the loan.
- Customer Service: LendKey is known for providing personalized customer service, with the ability to address concerns and questions through its platform.
- Simplicity: The application process is streamlined and done entirely online, making it easy for borrowers to apply for loans or refinancing.
Considerations
- Eligibility: Eligibility for loans or refinancing through LendKey depends on creditworthiness, which may require a co-signer, especially for students with limited credit history.
- Limited to Partner Institutions: The rates and terms offered are limited to what LendKey’s partnering credit unions and community banks can provide.
- Geographical Limitations: Some loan options might only be available to students or graduates in certain locations, depending on the lending institutions partnered with LendKey.
How It Works
- Application: Borrowers complete a single application on the LendKey website.
- Matching: LendKey matches the borrower with potential loans from its network of credit unions and community banks based on the borrower’s credit profile and loan needs.
- Selection and Approval: Borrowers can compare offers and select the best option for their needs. Upon selection, they go through the lending institution’s approval process.
LendKey stands out for its unique approach in the student loan space by leveraging the potential of community banks and credit unions to offer competitive loans and refinancing options. As with any financial decision, it’s important for borrowers to thoroughly research and compare their options, including federal loan alternatives, and consider their own financial situation and future repayment ability before committing to a loan or refinancing plan. Visit LendKey