{{Short description|American student loan company}} {{Infobox website | name = Earnest | owner = | logo = File:Earnest Logo January 2015.png | company_type = | foundation = {{start date and age|2013|9}} | author = Louis Beryl<br>Ben Hutchinson | key_people = David Green (CEO) <br />Louis Beryl (Co-Founder & Former CEO) <br />Ben Hutchinson (Co-Founder & Former COO) | products = Student loan refinancing, In-school student loans | location_city = [[San Francisco]], [[California]] | location_country = [[United States|U.S.]] | parent = [[Navient Corporation|Navient Corp.]] | revenue = | url = {{URL|http://www.earnest.com/}}<!--http://www.earnest.com/--> | screenshot = | caption = | num_employees = | website_type = | commercial = Yes | launch_date = {{start date|2014|3}} | current_status = Active | language = English }} '''Earnest''' is a [[financial technology]] company headquartered in [[San Francisco Bay Area|San Francisco]], [[California]], that provides education financing products, including student loan refinancing, and private student loans. The company evaluates applicants using a range of financial and non-financial factors in addition to traditional [[Credit score|credit scores]].
== History ==
Earnest was co-founded in 2013 by Louis Beryl and Benjamin Hutchinson.<ref>{{Cite news|url=https://www.entrepreneur.com/article/238466|title=Need a Loan? Let's Look at Your LinkedIn Profile First.|last=Goodman|first=Michelle|date=2014-11-13|work=Entrepreneur|access-date=2018-05-01|language=en}}</ref><ref>{{Cite web|url=https://www.bizjournals.com/sanfrancisco/news/2017/10/04/san-francisco-fintech-earnest-sold-navient-navi.html|title=San Francisco fintech Earnest sold for $155 million|website=www.bizjournals.com|access-date=2018-05-01}}</ref><ref>{{Cite web|url=https://www.bizjournals.com/sanjose/blog/techflash/2015/11/s-f-lending-startup-earnest-lines-up-275m-in-debt.html|title=S.F. lending startup Earnest lines up $275M in debt, equity funding|website=www.bizjournals.com|access-date=2018-05-01}}</ref><ref name=":0">{{Cite news|url=https://www.nytimes.com/2015/01/19/technology/banking-start-ups-adopt-new-tools-for-lending.html|title=Banking Start-Ups Adopt New Tools for Lending|last=Lohr|first=Steve|date=2015-01-18|newspaper=The New York Times|access-date=2015-12-15|issn=0362-4331}}</ref> Beryl was previously a partner at [[Andreessen Horowitz]], while Hutchinson held roles at the [[BBC]] and the U.K.’s [[HM Treasury]].<ref name="bizjournals">{{cite web|last1=Holan|first1=Mark|title=New online lender targets D.C. millennials with 'merit-based' interest rates|url=https://www.bizjournals.com/washington/blog/2014/09/new-online-lender-targets-d-c-millennials-with.html|website=Washington Business Journal|access-date=11 July 2018|date=18 September 2014}}</ref> Beryl got the idea for the company when he was attending [[Harvard University|Harvard]], and was denied a loan despite his earning potential.<ref name=":0" /><ref name=":1">{{Cite news|url=https://finance.yahoo.com/news/loan-startup-earnest-says-it-has-killer-feature-to-beat-big-lenders-sallie-mae-200238883.html|title=This student-loan startup says it has the killer feature to beat big lenders|work=Yahoo Finance|access-date=2018-05-01|language=en-US}}</ref> He learned that traditional banks took a narrow view of loan applications and felt they were too hard and expensive for many Americans.<ref name=":0" />
The company raised $15 million in [[Seed money|seed funding]] in 2014 from investors including [[Andreessen Horowitz]], [[First Round Capital]], [[Maveron]], [[Collaborative Fund]], and [[Atlas Venture]].<ref>{{Cite web|url=https://startupbeat.com/2014/05/earnest-launches-15m-id3806/|title=Earnest launches with $15M funding for its merit-based personal loans program – StartUp Beat|website=startupbeat.com|date=22 May 2014 |language=en-US|access-date=2018-05-01}}</ref> Earnest initially launched a personal loan product in [[Boston]], [[Massachusetts]], and formally launched in March 2014.<ref>{{Cite web|url=https://www.bostonglobe.com/business/2014/03/23/startup-lender-earnest-opens-boston-office-with-new-approach/7B9cGAI22Gl6pGH8JHbAHM/story.html|title=Startup lender Earnest opens Boston office with new approach - The Boston Globe|website=BostonGlobe.com|access-date=2015-12-15}}</ref> In 2014, Earnest distributed $8 million in loans and by the end of the year had a growth rate of 70%.<ref name=":0" />
On January 27, 2015, Earnest announced $17 million in [[Series A round|Series A]] funding led by [[Maveron]], and launched a student loan refinancing product for undergraduate and graduate borrowers.<ref>{{Cite news|url=https://www.bloomberg.com/news/articles/2015-01-27/earnest-raises-17-million-to-provide-low-cost-online-loans|title=Earnest Raises $17 Million to Provide Low-Cost Online Loans|last=Newcomer|first=Eric|work=Bloomberg|access-date=2022-01-05|language=en}}</ref> In November 2015, the company raised $75 million in funding led by [[Battery Ventures]] and secured a $200 million [[warehouse line of credit]] from [[New York Life Insurance Company|New York Life]]. The company said it would use the funds to assist in building out the company’s offering and expanding its workforce.<ref name=":2">{{Cite web|url=https://venturebeat.com/2015/11/17/earnest-raises-275m-to-help-millennials-manage-their-financial-future/|title=Earnest raises $275M to help millennials manage their financial futures|website=VentureBeat|date=17 November 2015 |access-date=2015-11-17}}</ref>
In 2016, Earnest was included on the [[Fast Company (magazine)|Fast Company]] World’s 50 Most Innovative Companies list.<ref>{{Cite news|url=https://www.fastcompany.com/company/earnest|title=Earnest: Most Innovative Company {{!}} Fast Company|work=Fast Company|access-date=2018-05-01|language=en-US}}</ref>
In August 2017, the company announced plans to open an office in [[Salt Lake City|Salt Lake City, Utah]].<ref>{{Cite news|url=https://venturebeat.com/2017/08/14/earnest-inc-joins-list-of-fintech-companies-opening-offices-in-utah/|title=Earnest Inc. joins list of fintech companies opening offices in Utah|date=2017-08-14|work=VentureBeat|access-date=2018-05-01|language=en-US}}</ref> Later that year in October, Earnest agreed to be acquired by [[Navient Corporation|Navient Corp.]] for $155 million.<ref>{{Cite news|url=https://www.forbes.com/sites/laurengensler/2017/10/04/earnest-acquired-by-navient-fintech-student-loans/#3cbd98087e19|title=Earnest, An Online Student Lender, Bought By Navient For $155 Million|last=Gensler|first=Lauren|work=Forbes|access-date=2018-05-01|language=en}}</ref><ref name=":3">{{Cite news|url=https://www.wsj.com/articles/navient-to-buy-fintech-firm-earnest-for-155-million-1507147800|title=Navient to Buy Fintech Firm Earnest for $155 Million|last=Rudegeair|first=Peter|date=2017-10-04|work=Wall Street Journal|access-date=2018-05-01|language=en-US|issn=0099-9660}}</ref>
In January 2018, Louis Beryl stepped down from his position as CEO and Susan Ehrlich was appointed.<ref>{{Cite news|url=https://www.bloomberg.com/news/articles/2018-01-26/earnest-co-founder-steps-down-a-few-months-after-selling-startup|title=Earnest Co-Founder Steps Down a Few Months After Selling Startup|date=2018-01-26|work=Bloomberg.com|access-date=2018-05-01|language=en}}</ref><ref>{{Cite web|url=https://delawarebusinessnow.com/2018/07/navient-hires-executive-for-san-francisco-fintech-company/|title=Navient hires executive for San Francisco fintech company|date=2018-07-19|website=Delaware Business Now|language=en-US|access-date=2019-02-28}}</ref>
In April 2019, Earnest launched a private student loan product.<ref>{{Cite news|url=https://www.americanbanker.com/news/most-steer-clear-of-in-school-loans-this-fintech-wants-in|title=Most steer clear of in-school loans. This fintech wants in|last= Hernandez|first=Will|date=2019-04-25|website=American Banker|language=en-US|access-date=2020-06-30}}</ref>
In April 2021, Susan Ehrlich announced her retirement and stepped down as CEO to focus on board service.<ref name="Ayers">{{Cite news|url=https://finledger.com/2021/05/03/qa-with-newly-appointed-earnest-ceo-david-green/|title=Q&A with newly appointed Earnest CEO David Green|last=Ayers|first=Rebecca|date=2021-05-03|website=FinLedger|language=en-US|access-date=2021-08-05}}</ref> David Green was appointed CEO on April 16, 2021. He previously held several roles at the company, including Chief Operating Officer and Chief Product Officer.<ref name="Ayers" /><ref>{{Cite news|url=https://www.linkedin.com/in/greends/|title=David Green LinkedIn|website=LinkedIn|language=en-US|access-date=2021-08-05}}</ref>
In September 2021, Earnest acquired the financial aid and scholarship platform Going Merry, expanding its services to include "pre-loan" tools for identifying grants.<ref>{{Cite news |last=Rivero |first=Victor |date=2024-12-06 |title=Going Merry by Earnest |url=https://www.edtechdigest.com/2024/12/06/going-merry-by-earnest/ |access-date=2026-02-12 |work=EdTech Digest}}</ref>
In early 2023, the company transitioned to a remote-first operating model and reorganized parts of its engineering workforce. As part of this global strategy, the company consolidated its international engineering workforce into a unified nearshore team in Latin America through a partnership with the talent platform [[Howdy.com]].<ref>{{Cite web |title=Earnest Case Study {{!}} Howdy Success Stories |url=https://www.howdy.com/case-studies/earnest |archive-url=http://web.archive.org/web/20251109160447/https://www.howdy.com/case-studies/earnest |archive-date=2025-11-09 |access-date=2026-02-13 |website=Howdy Success Stories |language=en-US}}</ref> That same year, Earnest partnered with Nova Credit to expand lending services for international students using cross-border credit data.<ref>{{Cite news |last=Clarke |first=Elizabeth |date=2023-02-21 |title=New NAHR president, Apple’s first chief people officer and other HR moves |url=https://hrexecutive.com/new-nahr-president-apples-first-chief-people-officer-and-other-hr-moves/ |access-date=2026-02-13 |work=HR Executive}}</ref><ref>{{Cite news |last=Muhn |first=Julie |date=2023-07-17 |title=Earnest and Nova Credit Partner to Offer Student Loans for International Students |url=https://finovate.com/earnest-and-nova-credit-partner-to-offer-student-loans-for-international-students/ |access-date=2023-02-13 |work=Finovate}}</ref><ref>{{Cite news |last=Solitro |first=Joey |date=2023-07-27 |title=Earnest and Nova Credit Partner to Offer International Private Student Loans |url=https://www.kiplinger.com/personal-finance/earnest-and-nova-credit-partner-to-offer-international-private-student-loans |access-date=2026-02-13 |work=Kiplinger}}</ref>
In July 2025, Earnest Operations LLC reached a $2.5 million settlement with the Massachusetts Attorney General to resolve allegations related to its lending practices. The company denied wrongdoing but agreed to implement changes to its governance processes.<ref>{{Cite web |date=2025-07-10 |title=AG Campbell Announces $2.5 Million Settlement With Student Loan Lender For Unlawful Practices Through AI Use, Other Consumer Protection Violations |url=https://www.mass.gov/news/ag-campbell-announces-25-million-settlement-with-student-loan-lender-for-unlawful-practices-through-ai-use-other-consumer-protection-violations?_ga=2.89539864.280412070.1771002936-1747291957.1771002936&_gl=1*1ymzvgu*_ga*MTc0NzI5MTk1Ny4xNzcxMDAyOTM2*_ga_MCLPEGW7WM*czE3NzEwMDUzODUkbzEkZzAkdDE3NzEwMDUzODUkajYwJGwwJGgw |access-date=2023-02-12 |website=Mass.gov}}</ref> By the end of 2025, Earnest reported a total of $24 billion in refinanced student loans and was included in a list of topfintech companies published by [[CNBC]].<ref>{{Cite web |date=2024-07-09 |title=The world's top 250 fintech companies: 2024 |url=https://www.cnbc.com/the-worlds-top-250-fintech-companies-2024/ |access-date=2026-02-13 |website=CNBC |language=en}}</ref><ref>{{Cite web |last=Calonia |first=Jennifer |date=2026-01-14 |title=Earnest Student Loan Refinancing Review 2026 |url=https://www.credible.com/refinance-student-loans/earnest-review |access-date=2026-02-13 |website=Credible |language=en}}</ref>
== Model ==
Earnest provides private student loans and student loan refinancing products. The company evaluates borrowers using factors such as income, education, and financial history in addition to traditional credit metrics.<ref name=":0" /><ref name=":4">{{Cite web|url=https://www.earnest.com/personal-loans|title=Earnest Personal Loans Page|date=August 2018|language=en-US|access-date=2018-08-17}}</ref><ref name=":2" />
The company operates through an online platform that allows borrowers to select repayment terms and payment structure. As of 2021, Earnest offered student loan refinancing in 48 U.S. states and the District of Columbia.<ref name=":0" /><ref name=":1" /><ref>{{Cite news|url=https://www.earnest.com/|title=Earnest {{!}} Earnest|work=Earnest|access-date=2021-08-05|language=en-US}}</ref><ref>{{Cite news|url=https://www.earnest.com/eligibility|title=Eligibility Guide {{!}} Earnest|work=Earnest|access-date=2021-08-05|language=en-US}}</ref>
==References== {{reflist}}
[[Category:Financial technology companies]] [[Category:Companies based in San Francisco]] [[Category:American companies established in 2013]] [[Category:2017 mergers and acquisitions]] [[Category:Financial services companies established in 2013]] [[Category:Financial technology companies based in California]]