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Edly Review

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Danielle Greving
Aug. 17, 2023
6 min read
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Edly Summary
Edly is an educational lending platform that offers alternatives to traditional private student loans with income-based repayment student loans (IBR loans). Edly Income-Based Repayment (IBR) Student Loans are offered through FinWise Bank – a Utah chartered bank, member FDIC – to both undergraduate and graduate students enrolled in an eligible major at one of the 1,700-plus schools that Edly partners with.

Pros

  • No payments until you graduate (No Cosigner Product)*
  • Apply for forbearance if you lose your job during repayment*
  • No Cosigner required for No Cosigner product**

Cons

  • Not as many schools eligible for IBR loans as traditional loans
  • Can be tough to predict upfront how much you’ll have to pay

Edly at a glance

8
Editorial score

Online experience

Good online resources, but no access to rates
8.0

Customer services and support

Multiple ways of reaching lender but limited hours
6.0

Repayment flexibility

Offers flexible repayment plans & the option for special repayment programs
10.0

Eligibility

Loans available to most credit types, income levels, and students
10.0

Variety of Loan Types

Only covers 1-2 loan types
6.0

Edly Edly Visit Edly

Overview

Founded in 2019 and headquartered in New York, Edly partners with banks to offer income-based repayment loans for college tuition. Their platform connects students searching for alternative tuition financing with impact investors who are looking to support students. Edly IBR Student Loans are unsecured personal student loans issued by FinWise Bank, a Utah chartered bank, member FDIC. All loans are subject to eligibility criteria and review of creditworthiness and history. Terms and conditions apply. Edly currently does not have any ratings on BBB or TrustPilot.

Degree-seeking students at supported schools currently have two loan options: the Edly IBR No Cosigner Student Loan (for university students without a cosigner) and the Edly IBR Cosigned Student Loan (for university students with a cosigner).

A main benefit of an Edly IBR No-Cosign loan is that post-graduation repayment doesn’t start until you’ve secured a job that pays above the minimum repayment threshold ($30K gross salary per year). This way, graduates who have yet to secure steady employment don’t need to begin making post-graduation repayments on their loans until they can afford it. Note that with the IBR Cosigned Student Loan, students will make modest monthly in-school payments and income-based payments immediately following graduation.   .               

Suitable For?

While a minimum FICO score is required for its flagship product, the Edly IBR No Cosigner Student Loan, Edly may still approve student borrowers that do not have a FICO score yet. Edly is a great option for those no credit history.

Edly also doesn’t require borrowers to have a cosigner (but borrowers have the option to add a cosigner with the IBR Cosigned Student Loan), making it suitable for those with limited or no cosigning options. Borrowers’ graduation dates and majors are also taken into consideration. Currently, Edly favors those going into STEM, healthcare, and business majors for its IBR No Cosigner Student Loan, but supports all majors at approved schools with its IBR Cosigned Student Loan. 

Loan Features

Edly IBR Student Loans offered through FinWise Bank have a minimum FICO score for student borrowers (however, student borrowers without a FICO score may still be approved), and no cosigner is required for the IBR No Cosigner Student Loan product. Borrowers can receive up to $15,000 per academic year ($25,000 lifetime) with a seven- year (84 payments) post-graduation repayment term. Once the loan goes into post-graduation repayment, payments are based on gross income earned.

The Application Process

The application process is entirely online. In 30 seconds, you can check your terms to see if you meet initial requirements, which include looking at your school, major, and graduation date. This step does not require a credit check.

After this, you can complete the application and get an official offer within minutes. This step requires a hard credit check. You’ll need to provide information regarding your school of attendance, major, graduation date, and income. Whilea minimum FICO is required (student borrowers with no FICO score may still be approved), adverse credit history may also be a factor in your approval (such as collection accounts, defaults, or vacancies). If your application is approved, the funded amount is paid directly to your school. Funds can be used for tuition and other qualified educational expenses. If you are not approved on your own, you will have the option to add a cosigner.

Eligibility Requirements

While the IBR Student Loan funds cannot be used for just any school or program, Edly does partner with more than 1,700 schools in nearly every state across the US (loans are not available to residents of Colorado, West Virginia, Vermont, Iowa and Maine). 

Loan Rates

Loan repayment rates vary. Edly will determine the amount you owe each month by looking at your salary and the percentage of your salary you must repay. However, borrowers will never need to repay more than 2.25 times the borrowed amount with the IBR No Cosigner Student Loan, or 2.5 times the amount borrowed with the IBR Cosigned Student Loan or the amount that equates to 23% APR with either loan option.

Repayment Terms

The IBR No Cosigner Student Loan does not require customers to start paying back on their loans until they’ve graduated and secured employment that meets the minimum income threshold. Currently, that threshold is $30,000 gross salary per year. With the IBR Cosigned Student Loan, students make modest in-school monthly payments and income based payments immediately following graduation.  

Edly customers are also allowed to apply for hardship forbearance should they lose their job during the repayment period. To defer payments, students need to provide qualifying documentation. This may include historic or current pay stubs or proof of job search.  Interest will accrue during any period of forbearance.

How Safe Is It?

Edly is a safe service to use. All loans are unsecured personal loans issued by FinWise Bank. When filling out a prequalification form, Edly only collects your basic information. The platform has bank-level security, and the company hasn’t reported any security breaches.

Customer Service

You can get in touch with Edly customer support by chat or with their contact page. You can send them a message via live chat at any time, and if they don’t get back to you right away, they state that they usually get back to customers within one business day.

Edly can also be reached via email at students@edly.info and phone at 888-4MY-EDLY.

Summary

Edly is an educational lending platform that offers alternatives to traditional private student loans with income-based repayment student loans (IBR loans). Edly Income-Based Repayment (IBR) Student Loans are offered through FinWise Bank – a Utah chartered bank, member FDIC – to both undergraduate and graduate students enrolled in an eligible major at one of the 1,700-plus schools that Edly partners with.  While a minimum FICO score exists  for its products, Edly is a great option for student borrowers who lack a financial history or access to a cosigner.   

Methodology

This review was created using information from Edly’s company website and contacting Edly customer service.

* No repayments until you meet the minimum income threshold (applies to the IBR No Cosigner Student Loan) Minimal in-school payments for IBR Cosigned Student Loan. Interest will accrue during any period of forbearance.

**No cosigner required for student borrowers (subject to underwriting criteria). Minimum FICO score applies to student borrowers if a FICO score exists (applies to the IBR No Cosigner Student Loan; cosigners on the IBR Cosigned Student Loan are subject to a minimum FICO score).

Edly Edly Visit Edly

Disclaimers

1.   Loan Example (IBR No Cosigner Student Loan):
$10,000 Loan with Salary of $65,000. Loan is funded in December, borrower graduates in August, and starts making payments in the following December.

  • Loan Amount: $10,000

  • Gross income payment percentage: 7%

  • Number of Payments at an Initial APR of 16%: 8

  • Initial Payment Amount: $200

  • Number of Payments at gross income payment percentage: 55

  • IBR Payment Amount: $379.16

  • Final Payment to reach Payment Cap: $45.83

  • Total Number of Payments: 64

  • Total Payment Amount: $22,500

  • Effective APR: 22.9%

2.   Additional Loan Example (IBR No Cosigner Student Loan):
$10,000 Loan with Salary at Minimum Income Threshold, $30,000. Loan is funded in December, graduates in August, and borrower starts making payments in the following December.

  • Loan Amount: $10,000

  • Gross income payment percentage: 7%

  • Number of Payments at an Initial APR of 16%: 8

  • Initial Payment Amount: $200

  • Number of Payments at gross income payment percentage: 76

  • IBR Payment Amount: $175

  • Total Number of Payments: 84

  • Total Payment Amount: $14,900

  • Effective APR: 9.3%

3.   Additional Loan Example (IBR Cosigned Student Loan): $10,000 Loan with Salary of $65,000. Loan is funded in December, graduates in August, and borrower starts making payments in March.

  • Loan Amount: $10,000

  • Gross income payment percentage: 7%

  • Number of Initial Payments: 6

  • Initial Payment Amount: $50

  • Number of Payments at gross income payment percentage: 44

  • IBR Payment Amount: $379

  • Final Payment Amount: $275

  • Total Number of Payments: 51

  • Total Payment Amount: $17,258

  • Effective APR: 23%

3.   Additional Loan Example (IBR Cosigned Student Loan):$10,000 Loan with Salary at Minimum Income Threshold, $30,000. Loan is funded in December, graduates in August, and borrower starts making payments in March.

  • Loan Amount: $10,000

  • Gross income payment percentage: 7%

  • Number of Initial Payments: 6

  • Initial Payment Amount: $50

  • Number of Payments at gross income payment percentage: 84

  • IBR Payment Amount: $175

  • Total Number of Payments: 90

  • Total Payment Amount: $15,000

  • Effective APR: 10.4%


About examples 1 and 2:
The initial payment schedule is set upon receiving final terms and upon confirmation by your school if the loan amount. You may repay this loan at any time by paying the lower of 23% effective APR, or $22,500 (2.25x the original loan amount), not including late or returned check fees, if any. The maximum number of regularly scheduled monthly payments you will make is 84. You will not pay more than 23% APR. No payment is required if your gross earned income is below $30,000 or if you lose your job and cannot find employment, however the amount you owe may continue to increase. APR may increase after consummation and is determined by the amount of your earned income. Higher incomes will pay higher effective APR.

About examples 3 and 4:

The initial payment schedule is set upon receiving final terms and upon confirmation by your school if the loan amount. You may repay this loan at any time by paying the lower of 23% effective APR, or $25,000 (2.5x the original loan amount), not including late or returned check fees, if any. The maximum number of regularly scheduled monthly payments you will make is 84. You will not pay more than 23% APR. No payment is required if your gross earned income is below $30,000 or if you lose your job and cannot find employment, however the amount you owe may continue to increase. APR may increase after consummation and is determined by the amount of your earned income. Higher incomes will pay higher effective APR.

Edly IBR Student Loans are unsecured personal student loans issued by FinWise Bank, a Utah state-chartered bank, Member FDIC. All loans are subject to eligibility criteria and review of creditworthiness and history. Terms and conditions apply.

State Specific Restrictions:

Not available in Iowa, Colorado, Maine, Vermont, West Virginia

Product disclosure: Loan Application and Solicitation Disclosure

Danielle Greving author image
Written by
Danielle Greving
Danielle is a tech and finance writer with experience in personal finance, cryptocurrency and numerous SaaS companies. Her bylines can be found on MoneyTips, CoinMarketCap, GraniteShares and Top10.com. An avid traveler and former ESL teacher, Danielle's writing blends a wealth of technical and financial knowledge with simple and straightforward explanations for everyday readers.
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