Earnest vs Federal Student Aid
An honest side-by-side comparison of two of our top student loans picks — pricing, strengths, weaknesses, and who each one is really for.
Earnest
Ranked #3 of 15 in this directory
Student loan refinancing with precision pricing and flexible payments
Federal Student Aid
Ranked #1 of 15 in this directory
The US government's official source for federal student loans and grants
Our pick: Federal Student Aid. Our editors rank Federal Student Aid higher overall in Student Loans — but Earnest can be the better fit depending on your budget and use case below. How we review
Compare the details
| Earnest | Federal Student Aid | |
|---|---|---|
| Pricing model | Paid | Freemium |
| Starting price | See website | See website |
| Category | Refinancing | Federal |
| Editorial rank | #3 of 15 | #1 of 15 |
Strengths
Earnest
- ✓Precision pricing looks beyond credit score for personalized rates
- ✓Choose your exact monthly payment amount and loan term
- ✓Skip one payment per year without penalty
- ✓Ability to switch between fixed and variable rates
- ✓No origination fees or prepayment penalties
Federal Student Aid
- ✓Fixed interest rates set by Congress with no credit check for most loans
- ✓Access to income-driven repayment plans that cap payments based on income
- ✓Loan forgiveness programs including PSLF for public service workers
- ✓Deferment and forbearance options during financial hardship
- ✓No private lender can match the borrower protections of federal loans
Watch out for
Earnest
- !Requires strong credit and income for the best rates
- !No co-signer option available on refinancing loans
- !Refinancing federal loans means losing income-driven repayment and forgiveness
- !Not available in all states
Federal Student Aid
- !Annual and aggregate borrowing limits may not cover full cost of attendance
- !Interest rates are the same regardless of credit quality
- !FAFSA application can be complex and time-consuming
- !Parent PLUS loans have higher rates and fewer repayment options
Best use cases
Earnest
- →High-earning professional wanting to aggressively pay down student debt
- →Borrower wanting the flexibility to customize their exact monthly payment
- →Recent graduate with strong income seeking the lowest refinancing rate
Federal Student Aid
- →Undergraduate student applying for financial aid for the first time
- →Graduate student needing loans with income-driven repayment options
- →Public service worker planning to pursue PSLF for loan forgiveness
About each tool
Earnest
Earnest offers student loan refinancing with a unique precision pricing model that considers your full financial profile — not just your credit score — to determine your exact rate. Borrowers can choose their exact monthly payment and loan term, skip one payment per year, and switch between fixed and variable rates. Earnest is owned by Navient and has refinanced billions in student loans. The platform is especially popular among high-earning professionals looking to reduce their interest costs on existing student debt.
Federal Student Aid
Federal Student Aid, managed by the US Department of Education, is the starting point for all federal student loans including Direct Subsidized, Direct Unsubsidized, and Direct PLUS loans. The FAFSA application determines eligibility for federal aid, grants, and work-study programs. Federal loans offer fixed interest rates set by Congress, income-driven repayment plans, deferment and forbearance options, and access to loan forgiveness programs like Public Service Loan Forgiveness. Every student should exhaust federal loan options before considering private loans.
Still deciding? Browse all 15 options with honest pros, cons, and pricing.
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