Frequently asked questions – Lendkey Private Student Loans

Before You Apply

Can I edit my application after I submit it? There is certain information that may be edited after an application is submitted, but some changes require starting a new application.

How do I find my cost of attendance? Your cost of attendance includes tuition and may also include expenses such as room & board, transportation, books, supplies, and various other school-related expenses. We recommend checking your institution’s financial aid website or getting in contact with your financial aid office directly to determine your cost of attendance and what expenses can be included.

Can this loan be used to pay for my laptop, textbooks, and other personal expenses? This loan may be used for qualified education-related expenses that are certified by your institution. This may include tuition, room & board, transportation expenses, laptop, textbooks, and related materials. To figure out what expenses are part of your institution’s cost of attendance, check out your school’s financial aid website or contact your school’s financial aid office directly.

Can the loan be sent directly to me instead of my school? Loan funds are disbursed directly to your institution. The school will then apply those funds directly to your outstanding tuition balance. If there are leftover funds after the school applies the loan to your outstanding balance, the remainder may be refunded in accordance with your school’s refund policy.

Can I borrow for one academic period or the entire school year? Applying for the whole academic year means you may receive some or all of your education funding with one application and a single credit check. You may also apply for a single academic period at a time. Interest only accrues on the funds that have been disbursed and there is no penalty to cancel any additional future disbursements. Whichever option is best for you depends on the strength of you and/or your cosigner’s credit profile at the time of application.

Can I get a loan for a previous semester? Yes, your loan can be used to cover a past-due balance if the application is received within ninety (90) days of the end of your previous academic period. You must also be registered and enrolled in the current academic period at the same institution.

What information do I need when applying? You will need to know the school you are attending, the academic period you are applying for, the loan amount you are requesting, your social security number, and cosigner contact information if you are applying with one.

When should I apply? We typically recommend applying at least one month prior to when the funds are due or earlier. Conditional approval for a loan may occur quickly after an initial review of your application and credit report, however it is not final approval since you may be asked to submit additional supporting documentation (e.g., proof of income, identification, etc.). Your school must also certify your loan, which may add more time to your application process. While it generally takes less than thirty days to process and certify a loan, in some instances it may take several weeks.

How much can I borrow? You may be able to borrow up to 100% of your school-certified cost of attendance. This may include tuition, room and board, textbooks, and other related education expenses. To figure out what expenses are part of your institution’s cost of attendance, check out your school’s financial aid website or contact your school’s financial aid office directly.

What is the difference between federal and private loans? Federal student loans are provided by the federal government, while private student loans come from private financial institutions, like banks and credit unions.

A key difference is that federal student loans are more accessible. You can receive a federal student loan without a cosigner or credit history. Furthermore, there are generally beneficial repayment options with federal loans that may not be available with certain private student loans. However, there are borrowing limits on federal student loans, and students may have to supplement them with other funding options. A private student loan serves as a way for you to fill the funding gap between the cost of attending school and the amount in federal loans, grants, and scholarships available to you. Private student loans are credit-based loans, so you may need to demonstrate an established credit history or have a cosigner with an established credit history in order to qualify.

How do I apply for federal student aid? You can complete the FAFSA online at Federal Student Aid. You’ll need to create an FSA ID, gather all relevant information, and keep track of both federal and local submission deadlines at studentaid.gov. It’s best to submit FAFSA as soon as possible because the deadline is June 30th. For more information, reach out to your school’s financial aid office.

Do I need to submit the Free Application for Federal Student Aid (FAFSA) in order to apply for a LendKey loan? No, it is not a requirement to complete the FAFSA form before applying for a LendKey loan. Although it is not a requirement, it is strongly advised to submit your FAFSA form ahead of time, so you know what federal aid you qualify for.

Cosigner Information

Can I authorize a third party on my account? Yes, on the last page of the borrower application there will be a section that will allow you to add an authorized user who we will be able to communicate with regarding your loan. If you add an authorized user, you will need to provide their name, phone number, and email address. There are limitations to what information can be disclosed to the authorized user versus the borrower or cosigner.

If I cosign for a student loan, can I be released later? Cosigner release is subject to lender approval. In order to qualify, the borrower, alone, must meet the following requirements: (1) Make the required number of consecutive, on-time full principal and interest payments as indicated in the borrower’s credit agreement during the repayment period (excluding interest-only payments) immediately prior to the request. Any period of forbearance will reset the repayment clock; (2) The account cannot be in delinquent status; (3) The borrower must provide proof of income indicating that he/she meets the income requirements and pass a credit review demonstrating that he/she has a satisfactory credit history and the ability to assume full responsibility of loan repayment; (4) No bankruptcies or foreclosures in the last sixty months; and (5) No loan defaults.

What responsibilities do I have as a cosigner? The cosigner shares the same responsibilities as the borrower for the loan. This includes ensuring on-time monthly payments. That means as the cosigner, you may experience the same positive impact on your credit score as the borrower for making on-time monthly payments but will likely face the same negative credit impact for late or missed payments.

How do I add a cosigner to my application? On the first page of the borrower application, there will be a question asking you if you would like to apply with a cosigner. After selecting “yes,” the next page of the application will allow you to enter your cosigner’s name and email address so we can email them a link to complete the cosigner part of the application.

What information do I need when applying as a cosigner? For the cosigner portion of the application, you will need to provide information such as your permanent address, social security number, and income information.

Who should be my cosigner? Typically, your cosigner may be a parent, grandparent, guardian, or other adult who is creditworthy and willing to assume legal responsibility for the loan liabilities along with you. A cosigner may increase your chances of approval or help you qualify for better terms.

Do I need a cosigner? A cosigner is not required, but it may improve your chances of getting approved. Private student loans offered on LendKey’s website are credit-based, so a credit and income review will be performed. It can be difficult as a student to have an established credit history and a steady source of income, so a cosigner may help meet the loan application guidelines. Furthermore, a cosigner with an established credit history may help you qualify for better terms that could save you money in the long-term.

Eligibility

What is the minimum and maximum amount I can borrow? The minimum loan amount is $2,000 and the maximum loan amount is the cost of attendance minus any aid you have already received.

Will lowering my loan amount help my chances of approval? The conditional approval of your loan is based on an initial credit review and is not tied to your requested loan amount, so requesting a lower loan amount will not improve your chances of being approved.

Do I need to be a full-time student to qualify for a LendKey loan? No, you do not have to be a full-time student to qualify for a student loan. However, you must be enrolled at least half-time in a degree-granting program from an eligible school.

Terms

Who will be servicing this loan? LendKey will be the servicer of your loan. To reach our loan servicing department with any questions, you may call us at 888-966-9268 or email us at servicing@lendkey.com

What if I need help making my monthly payments? Your lender may offer forbearance for students facing financial hardship during the repayment period. In forbearance, no monthly payment is required but interest still accrues and may be capitalized (i.e., added to your principal balance) when you exit the forbearance period. Certain conditions must be met in order to be approved for forbearance.

Are there penalties for paying off my loan early? No, there are no prepayment penalties, and such payments will be applied in accordance with your loan agreement.

How do I get my auto-pay interest rate reduction? You can receive a 0.25% interest rate reduction when you sign up to automate payments from your checking or savings account each month.

What is the best way to reduce the overall cost of my loan? If you apply for a student loan with a creditworthy cosigner, you may be eligible for a lower interest rate, reducing the cost over your loan term. Additionally, making monthly payments while in school may reduce the total amount of interest that accrues on your loan, saving you money in the long run. After graduation, you could refinance your student loans to shorten your loan term and/or interest rate.

Is there a grace period? The grace period is a 6-month period of time that begins once you graduate or are no longer enrolled at least half-time in a degree granting program. After the grace period, you must begin making regular principal and interest payments.

What is the repayment term? The repayment term is 10 years.

Which rate should I choose: Variable or Fixed? The fixed interest rate will never change throughout the life of the loan. This may make it easier to plan ahead because you will always know the interest you will be charged. The variable rate you are offered when your application has been conditionally approved may be lower than the fixed rate offered. This means that if the rate index decreases or remains consistent, you may save money over time over the fixed rate, but the opposite occurs if the rate index increases. When selecting a variable rate, it is important to understand that when the rate increases, so does your required payment amount.

What is the difference between a fixed interest rate and variable interest rate? A fixed interest rate is consistent and will never change, whereas a variable rate may increase or decrease monthly based on a rate index (see your Private Education Loan Application and Solicitation Disclosure for more information when you apply). This means your monthly payment may fluctuate over time.

How will my interest rate be determined? This is a credit-based loan, so the interest rate you receive will be determined based on a review of your credit profile. If you are applying with a cosigner, we will use the better of the two credit profiles when determining the interest rate.

Do you charge any application fees? No, there are no application fees or origination fees when applying for a LendKey Private Student Loan.

Do you offer hardship forbearance? Yes, many lenders on our platform offer forbearance for financial hardship. In the event you require hardship forbearance, reach out to your customer care representative for the specific forbearance available from your lender.

Are there fees associated with my loan? Yes, some lenders on our platform have late fees and insufficient fund fees. Please review your loan documentation during the application process for specific fee information.