INvestEd Review: Private Student Loans and Refinancing

INvestEd focuses on providing private student loans and refinancing options for Indiana residents and students. This not-for-profit organization has supported the Hoosier state for nearly 40 years. To qualify, you generally need to be an Indiana resident or have attended a college or university in Indiana.

INvestEd private student loans review

Best for: Indiana students and residents 

INvestEd offers private student loans exclusively to Indiana residents and students. To qualify, you must live in Indiana or attend a college or university within the state. This means that non-residents attending an Indiana school and Indiana residents attending out-of-state schools can both access INvestEd student loans. 

Repayment terms range from five to 15 years, with options for fixed or variable interest rates. You can borrow up to the full cost of attendance, minus any other financial aid received.

Eligibility requirements 

To qualify for an INvestEd loan, you (or your cosigner) typically must meet the following requirements:

• Residency: Must be an Indiana resident or attending a college or university in the state of Indiana; must be a U.S. resident or permanent resident.
• Credit score: Must have A FICO score of at least 670.
• Income: A debt-to-income ratio of no more than 30%, or a minimum gross monthly income of $3,333.
• Employment: Continuous employment over the last two years (unless retired, disabled, or receiving a verified income).

You must also NOT have: 

• Defaults of 60 days or more during the past two years
• Repossessions, judgments, foreclosures, or garnishments
• Charge-offs or collections accounts exceeding $100
• Bankruptcies within the last five years
• Prior defaults on any private or federal student loans

Loan amounts must be at least $1,001, and cannot exceed the cost of annual attendance minus other aid received.

Notable benefits 

• Autopay discount. You can earn a 0.25% interest rate reduction on your loan with INvestEd by signing up for autopay. The discount takes effect once the loan servicer starts to deduct payments from your account, and lasts throughout your repayment period.
• Easily release a cosigner from your loan. If you apply with a cosigner, you can request to release them after 12 consecutive, on-time monthly payments of principal and interest, provided you meet the eligibility requirements on your own.
• No prepayment penalties or origination fees. You won't run the risk of paying prepayment penalties if you pay off your loan early, and you won't owe origination fees when you take out your loan. That said, INvestEd does charge a late fee (the lesser of 5% of the past due amount or $10) on payments that are made after the due date. 

What to consider before borrowing from INvestEd

Before applying for private student loans with INvestEd, exhaust your federal financial aid options. Federal student loans typically offer lower interest rates and additional protections and benefits that private loans lack. 

After exhausting your federal aid options, consider borrowing with INvestEd only if you’re an Indiana resident or planning to attend an Indiana school. Also consider whether you (or your cosigner) can meet INvestEd’s credit and income requirements. You’ll need a minimum credit score of 670 and a minimum monthly gross income of $3,333. 

Lastly, shop around and compare lenders before submitting an application. Assess your options to determine which lender best suits your needs and can offer you the most competitive rate.

Compare current rates

How to apply 

To apply for a private student loan through INvestEd, you’ll need to complete an online application through the lender's website. You’ll also need to complete a self-certification form, which you can usually get from your school's financial aid office.

To fill out the application, follow the prompts. You'll be asked for basic details, such as your contact information, as well as your state of residency and the location of your college, alongside financial details. Expect a hard credit check, which will help determine your interest rate. 

On average, the INvestEd online application takes about 15 minutes to complete.

INvestEd student loan refinance review

Best for: Generous forbearance options

INvestEd's student loan refinancing stands out for its various relief options for borrowers, which aren't always offered by private lenders. The lender offers deferment and forbearance options which let you postpone payments in times of financial hardship.

 INvestEd has the following options to defer repayment if needed:

• Extended in-school deferment: This deferment of up to 36 months is available to borrowers who re-enroll at least half-time at an eligible institution to get a graduate degree.
• Active duty military deferment: It's possible to defer repayment if you're serving on active duty or performing qualifying National Guard duty during war, other military operations, or a national emergency.
• Temporary hardship forbearance: You can defer payments if you experience a period of financial difficulty. Borrowers can get two forbearances, each lasting from one month to three months, over a 12-month period. It's possible to get a maximum of 24 months of forbearance over the life of the loan.

Refinancing loans through INvestEd can have fixed or variable interest rates, and you can choose a repayment term between five and 20 years. You can refinance as little as $5,000 in eligible loans, and as much as $250,000

Eligibility requirements 

To be eligible for student loan refinancing through INvestEd, you or your cosigner must be an Indiana resident, have attended a college or university in Indiana (even if you didn’t graduate), or have a previous loan with INvestEd.

You must also satisfy the following requirements:

• Residency: Be a citizen or permanent resident of the United States
• Credit score: Have a minimum FICO score of 670
• Income: Earn at least $36,000 annually
• Debt-to-income ratio: Have a debt-to-income ratio that’s no more than 40% to 50% of your gross monthly income; or have a minimum gross monthly income of $3,333 (approximately $40,000 per year).
• Employment: Prove continuous employment over the last year (with possible exceptions for recent graduates, retirees, disabled persons or those receiving a verified income)

You must also NOT have:

• Delinquencies of 60 days or more during the last 24 months
• Repossessions, foreclosures, or garnishments by creditors
• Reported bankruptcies within the last five years
• Prior defaults on any federal or private student loan

Notable benefits

• Relief options. INvestEd allows borrowers to pause repayment on their refinance loans for a variety of reasons. Its deferment options include in-school deferment, military deferment, and forbearance/temporary hardship.
• Rate discount. You can reduce your interest rate by 0.25 percentage points by signing up for automatic payments. Note the discount will be suspended during any periods of approved deferment or forbearance.
• No degree requirement. Unlike many lenders, which may require you to earn your degree to refinance your student loans, INvestEd doesn’t stipulate this requirement in its eligibility criteria. 
• Short cosigner release timeline. INvestEd offers the option for cosigner release after the first 12 consecutive monthly principal and interest payments are made on time. To qualify for release, you must meet INvestEd's credit and underwriting criteria.

What to consider before refinancing with INvestEd

INvestEd may be the right lender for you if you’re an Indiana resident or attended college in Indiana. To qualify, you’ll need a credit score of at least 670. Since INvestEd only allows you to refinance up to $250,000, those with higher amounts of debt may need to look elsewhere.

Keep in mind that refinancing federal student loans with INvestEd or any other private lender means losing access to federal protections like income-driven repayment and potential loan forgiveness. 

Be sure to compare INvestEd’s rates and terms with other lenders to ensure you’re making the best financial decision.

Compare current refinance rates

How to apply 

To complete your refinance application with INvestEd, make sure you have the following on hand:

• Your Social Security number
• Two most recent pay stubs
• Previous year's W-2 forms
• Information about your current loans, including the lender, interest rate, and current balance

You can apply for student loan refinancing online, on INvestEd's website. Simply follow the prompts, which will include providing basic contact information, answering questions about your residency and school attendance, and confirming your eligibility.

Completing the application takes around 15 minutes on average.

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FAQ 

Is INvested a trusted lending provider? 

Yes. INvestEd has been in the student lending business for nearly four decades, and it operates as a nonprofit that exclusively finances loans that are authorized under the Higher Education Act.

Is it hard to get approved for a student loan with INvested?

Because INvestEd exclusively serves those with a connection to Indiana (either as residents or students in the state), that can make eligibility a little more restrictive compared to lenders that operate nationally. 

What credit score do you need for an INvested student loan?

To qualify for a private student loan or student loan refinance with INvested, you need a FICO score of at least 670.

How long does it take to get approved for an INvested student loan?

You can expect to receive a conditional approval immediately after submitting your application with INvestEd.