Earnest Expands Refinancing Flexibility for Graduate Students

Features help graduate students start saving earlier and align repayment with post-graduation income

Earnest, a leading fintech company on a mission to empower people on their journey from debt to wealth, announced that eligible graduate students will now have the ability to refinance before graduation while maintaining their existing grace period for up to nine months, helping them reduce interest accrual on high-rate loans and better align their first payment with the start of full-time work.

Many graduate and professional students secure job offers months before graduation, with start dates within six months of completing their programs. Historically, refinancing options have not reflected that timing: most lenders do not consider future income in underwriting or match a borrower’s grace period. This has forced qualified borrowers to delay refinancing and continue making high-interest payments, causing them to miss out on potential savings when rates are low.

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Meanwhile, the financial stakes are rising — federal Grad PLUS loan rates are at 9.08% for the 2024–2025 academic year and 8.94% for 2025–2026, according to Federal Student Aid, while new federal loan caps going into effect on July 1st will limit how much graduate and professional students can borrow. More borrowers are relying on a mix of federal and private loans at higher rates and accruing significant interest before repayment begins.

“Too often, the moment when it’s smartest to refinance doesn’t line up with when borrowers are allowed to — especially now, as rising Grad PLUS rates and new federal loan caps push more graduate students to explore a mix of financing options,” said Matt Palese, acting CEO of Earnest. “Graduate students who have secured jobs and know their earning power shouldn’t have to wait to start saving. With this offering, we’re giving them the flexibility to refinance on their timeline and step into their careers on stronger financial footing. At Earnest, our goal is to meet borrowers at pivotal moments like this — helping them move from managing debt to building wealth with confidence.”

With Earnest Job Offer Refinancing + Grace Period Match, eligible borrowers can:

• Refinance within six months of graduation instead of waiting until repayment begins
• Keep their existing grace period (up to nine months), upon refinancing, rather than starting principal and interest payments right away
• Qualify using future income including a signed offer letter for a job starting within six months

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