If you are worth you salt then you would have seen the advertising banners for lendkey while researching various sites for Student Loan or Refinancing information.
Lendkey would have no doubt come up as one that you should be looking at. Let’s delve in and break it down with a LendKey review.
LendKey – Who Are They ?
LendKey were founded in 2009 Lendkey is a financial platform for 13000 + community financial institutions allowing them to get digital and offer student refinancing options to you via their lenders.
If that’s not clear, lendkey is not a lender, but has this amazing platform to allow community lenders to get digital and offer you great loans at great rates. Simply put, it is more a market place for finding great offers and loans for student refinancing.
What Makes Them different
I suppose the real difference here is that they are primarily geared and invested in bringing local lenders and not-for-profit community banks into the refinancing market, when historically these institutions probably found it hard to compete with the larger well-known banks. If that way you have way more options available to you and can really pick, research and choose the lender giving you the best outcome.
The Benefits of Using LendKey
- Lower you payments
Just like any refinancing option when you decide to refinance you student loans you have the ability to probably lower you interest rate and reduce you monthly student loan repayments. LendKey offers you the same options as other student loan refinancing offers in that regard and will show you all the available loans and the interest rates that are attached to those loans.
Even if you think you are not in the market , their is no harm in learning what the opportunities are. You need not move forward in them , but it’s good learning.
- Simplify you life and Finances
Lendkey offers refinancing options for both Federal and private ( including Graduate loans) enabling you to move to one loan at hopefully a better rate. Life does become a little simpler when you are no longer juggling multiple loans and repayments
It is important if you are thinking of refinancing Federal loans that you learn what benefits you may be walking away from on the federal Loan.
Federal loans do offer a lot of benefits and options, so if you choose to consolidate and refinance you may have to give up these benefits
- No Origination or Establishment fees
This is a great benefit of LendKey. If you take a loan through one of the lenders through Lendkey then you will not have to pay an origination or loan establishment fee. These costs can be roughly anything between 2 -7 percent of the loan amount and that is a decent chunk of change. Most lenders will give you the option to roll that fee into the loan itself. It is still an extra cost though, that you save when using Lendkey.
- Flexible Loan Options
Lendkey compares and will match you with hundreds of lenders through their platform.Each lender will likely have a variety
of repayment options, terms and conditions for loan including variable loan terms between 5 and 30 years and super low rates (as low as 2.68% variable rates with auto pay selected and 5.1 % on fixed rates.)
The reason as I see if is that you see so many more Loan offers than you would see through a normal single selected banking environment. Lendkey brings all the local lenders and community offers from the banks which you may not normally see in the marketplace
Limitations of using LendKey and the platform.
Don’t get me wrong, I think Lendkey does offer heaps but a few things need to be pointed out in case you get caught up in the savings’ realization euphoria.
- Limited to the 13000 + Community lenders.
The market place is specifically targeting the local and community lenders, so you may not see comparisons between all the banks you are looking at. This is due to the pointed market Lendkey operates in. This is not a bait and switch option. They are upfront with regards whom they work with, it’s their business model and point of differentiation.
- Information and Research
Don’t forget you are not directly borrowing from Lendkey. They just facilitate the loan process between you and the lender. You still need to do you due diligence on the company offering the loan, researching the loan terms and fine print. This can be a little cumbersome and being time poor these days sometimes you do not have the free bandwidth to check yourself.
- Federal Student Loans Alert
Consolidating you Federal Loans is not always the best path forward for you. As discussed in another article here
Having Federal loan does allow you to participate in several repayments and loan forgiveness program including longer terms, income-based repayment plans, and total forgiveness if you meet certain federal requirements. If you consolidate you loans you are walking away from these options. So be smart and ask questions and investigate before you consolidate the loans.
You cannot undo what has been done in this regard. Just be super sure and educated before you decide to consolidate the Federal Loans.
The Application Process
Its not very different from all of the other online lenders offering loans and allowing you to check you rates.
You need to provide the below information to get that instant ( but not fully approved rate)
- Annual income
- School and degree type
- Loan amount and loan type
The application process, or at least the initial process is not very long after which you will receive offers from the different lenders. It is at that point you will need to go away and do your research on each lender and read the fine print of the agreement to make sure you have all you ducks in a row.
The Bottom Line
I think Lendkey is definitely an option when you are looking into refinancing your student loans. I like all market place type offerings as I am inclined to think the Lendkey are not overly interested in forcing a loan type down you throat. They just provide you with some comparisons and you can go and do the research and make the best decision from their.
Click here to find out what they can offer you or improve you Loan repayment Situation
Editorial Note: This content is not provided or commissioned by any financial institution. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by the financial institution