Here at finimpact.com, we strive to provide you timely, transparent, and relevant information on the various lenders, loan aggregators, and peer-to-peer solutions we cover. To this end, we’ve established a comprehensive rating system to quantitatively assess each of them.
It entailed researching each platform and categorizing loan offerings across the following two categories: undergraduate loans and graduate loans. Then, following the categorization exercise, our experts evaluated each platform based on seven parameters. All parameters were evaluated using a five-point scoring system
The seven parameters are outlined below. The first three reflect loan-type specificity; the latter four were rated at the platform level.
The overall score for each loan platform reflects an average of the underlying parameter scores (seven for Perks Bonus qualifiers and six for non-qualifiers). All of the parameters receive equal weighting. Finimpact believes this approach is optimal; however, if the environment evolves, we may look to weight some parameters more heavily than others.
The criteria used to determine the scores for the seven parameters differ by loan type (undergraduate loans and graduate loans.) Below, we outline the parameter details for each.
An undergraduate loan is an unsecured financing arrangement that facilitates the attainment of an undergraduate education. Typically, it includes all postsecondary coursework associated with obtaining a bachelor's degree at a college or university. Undergraduate loans are structured similarly to graduate loans, but they tend to carry lower interest rates.
The scoring criteria for the seven parameters are outlined below.
Loan Features
One star | Two Stars | Three Stars | Four Stars | Five Stars | |
Term Length | 5 year or less | Between 5 and 9 years | Between 9 and 14 years | Between 14 and 18 years | Over 18 years |
Loan Amount | Less than $50,000 | Between $50,000 and $100,000 | Between $100,000 and $200,000 | Between $200,000 and $400,000 | Less than $400,000 |
Loan Structure Optionality | Only Fixed or Only Variable Offering | N/A | N/A | N/A | Fixed & Variable Offerings |
Interest Rates and Fees
One star | Two Stars | Three Stars | Four Stars | Five Stars | |
Origination Fees | Over 6% | Between 4-6% | Between 2-4% | Between 0-2% | None |
Prepayment Fees | Prepayment fees exist | N/A | N/A | None | None with discounts |
Late Payment Fees | 2.5% or more | From 0% to 2.5% | From $25 to $50 or unspecified | Between $0 and $25 | None |
FIxed Interest Rates - Min | Over 3.9% | Between 3.6% and 3.9% | Between 3.3% and 3.6% | Between 3% and 3.3% | Under 3% |
Fixed Interest Rates - Max | Over 13% | Between 12% and 13% | Between 11% and 12% | Between 10% and 11% | Under 10% |
Qualification Leniency
One star | Two Stars | Three Stars | Four Stars | Five Stars | |
Minimum Credit Score | Over 675 | Between 651 and 675 | Between 626 and 650 | Between 601 and 625 | 600 or lower |
Enrollment Limitations (Institution Type & Course Load) | N/A | N/A | Enrollment limitations exist | N/A | None |
Co-signer/Joint Application Optionality | Prohibited | Required without Release | Required with Release | Optional without Release | Optional with Release |
Application Process
Default score | Subtraction of one star (-1 star) | Addition of one star (+1 star) | |
Informational Requirements | 3 stars | Overly Invasive Informational Requirements | N/A |
Hard/Soft Credit Pull | 3 stars | Hard-pull | N/A |
Turnaround Time | 3 stars | N/A | Application Processed in less than 24 hours |
Distinctively competitive offerings | 3 stars | N/A | Exist |
Customer Support
Access to Live Chat Customer Service Rep | +1 star |
Standard Call Center Support 9 - 6 EST | +1 star |
Expended Call Center Support | +1 star |
Multi-channel Support | +1 star |
Supplemental Support | +1 star |
User Reviews
This Parameter reflects the scores achieved from independent user review sites such as Trustpilot.com, WalletHub, and ConsumerAffairs.com
Perks Bonus
This is a bonus parameter that gives a loan platform the opportunity to boost its score. A 5.0 score is attainable, if a lender satisfies at least one of the flexibility items listed below, at least one of the mentorship items, and at least one of the technology items. If a lender does not meet the criteria, this parameter does not factor into the overall rating.
Flexibility:
Mentorship:
Technology:
A graduate loan is an unsecured financing arrangement that facilitates the attainment of a postgraduate education. Typically, this includes all coursework associated with obtaining a master's degree at a university. Graduate loans are structured similarly to undergraduate loans, but they tend to carry higher interest rates.
The scoring criteria for the seven parameters are outlined below.
Loan Features
One star | Two Stars | Three Stars | Four Stars | Five Stars | |
Term Length | 5 year or less | Between 5 and 9 years | Between 9 and 14 years | Between 14 and 18 years | Over 18 years |
Loan Amount | Less than $50,000 | Between $50,000 and $100,000 | Between $100,000 and $200,000 | Between $200,000 and $400,000 | Less than $400,000 |
Loan Structure Optionality | Only Fixed or Only Variable Offering | N/A | N/A | N/A | Fixed & Variable Offerings |
Interest Rates and Fees
One star | Two Stars | Three Stars | Four Stars | Five Stars | |
Origination Fees | Over 6% | Between 4-6% | Between 2-4% | Between 0%-2% | None |
Prepayment Fees | Prepayment fees exist | N/A | N/A | None | None with discounts |
Late Payment Fees | 2.5% or more | From 0% to 2.5% | From $25 to $50 or unspecified | Between $0 and $25 | None |
Fixed Interest Rates - Min | Over 4.7% | Between 4.3% and 4.7% | Between 4.9% and 4.3% | Between 3.5% and 3.9% | Under 3.5% |
Fixed Interest Rates - Max | Over 13% | Between 12% and 13% | Between 11% and 12% | Between 10% and 11% | Under 10% |
Qualification Leniency
One star | Two Stars | Three Stars | Four Stars | Five Stars | |
Minimum Credit Score | Over 675 | Between 651 and 675 | Between 626 and 650 | Between 601 and 625 | 600 or lower |
Enrollment Limitations (Institution Type & Course Load) | N/A | N/A | Enrollment limitations exist | N/A | None |
Co-signer/Joint Application Optionality | Prohibited | Required without Release | Required with Release | Optional without Release | Optional with Release |
Application Process
Default score | Subtraction of one star (-1 star) | Addition of one star (+1 star) | |
Informational Requirements | 3 stars | Overly Invasive Informational Requirements | N/A |
Hard/Soft Credit Pull | 3 stars | Hard-pull | N/A |
Turnaround Time | 3 stars | N/A | Application Processed in less than 24 hours |
Distinctively competitive offerings | 3 stars | N/A | Exist |
Customer Support
Access to Live Chat Customer Service Rep | +1 star |
Standard Call Center Support 9 - 6 EST | +1 star |
Expended Call Center Support | +1 star |
Multi-channel Support | +1 star |
Supplemental Support | +1 star |
User Reviews
This Parameter reflects the scores achieved from independent user review sites such as Trustpilot.com, WalletHub, and ConsumerAffairs.com
Perks Bonus
This is a bonus parameter that gives a loan platform the opportunity to boost its score. A 5.0 score is attainable, if a lender satisfies at least one of the flexibility items listed below, at least one of the mentorship items, and at least one of the technology items. If a lender does not meet the criteria, this parameter does not factor into the overall rating.
Flexibility:
Mentorship:
Technology: