What is Edly?
Edly is a student loan provider that provides one of the only Income-Based Repayment (IBR) Student Loans in the marketing. These are unsecured educational loans issued by Transportation Alliance Bank, Inc. d/b/a TAB Bank that are based on your future income. Degree-seeking students at an Edly-supported school 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).
Edly's mission is to:
- Enable their customers to take greater control of their financial lives
- Remove barriers to education and
- Remove the burden of unpayable debt for students
Income Based Repayment (IBR) loans are an alternative to traditional private student loans. It is no secret that many university students are dealing with excessive student debt. With this in mind Edly has spent years understanding the student loan debt crisis to offer access to affordable higher education.
How does Edly Work for College Students?
After you express an interest in an Edly IBR Student Loan, Edly checks to see which loans you may qualify for based on school, major, graduation date and how much money you need, and sends you an official offer with specific terms based on your information. If you are prequalified for an IBR Student Loan, you will be asked to apply and be subjected to a hard credit check. Upon accepting your application for a loan, Edly will ask your school to certify your loan request and your school will then disburse the funds to you.
With its flagship Edly IBR Student Loan, in-school repayment begins in the third month after you borrow the loan and income-based repayment begins one month after graduating from your program.
What does Edly Offer?
Edly works with specific schools focusing on specific majors and programs. They look ahead at your potential earning value when issuing loans. Edly does not require applicants to have a cosigner for the IBR No Cosigner Student Loan, but borrowers who are declined or wish to have the added comfort of a cosigner can apply for the IBR Cosigned Student Loan. According to Edly, “students who meet the Edly requirements are three more times likely to qualify to be approved for an IBR loan without a cosigner than for a traditional private student loan”
Income Based Repayment Loans (IBRs)
With research to back their guiding principles, Edly has created a lending product called an Income Based Repayment Loan (IBR). Similar to Income Share Agreements (ISAs), IBRs are based on your future income. If your yearly income falls below $30,000, you can apply for hardship forbearance. The interest begins accruing the day the loan is disbursed and continues to grow, even in forbearance. Once you reach the minimum income threshold and begin repayment, your loan payment increases as your income increases, thus being proportional to your income.
As a borrower, your loan balance will include the tuition amount as well as a 4% origination fee. Using Edly’s Check Terms page allows you to check the specific loan terms that may be offered to you.
Repaying Your Loan
As per the terms laid out in your contract, your loan may be fulfilled by:
- Making 84 regularly scheduled, in-full, post-graduation payments
- Meeting the 2.5x repayment cap regardless of your income (i.e. a $10,000 tuition amount would have a maximum repayment cap of $26,000 with the 4% origination fee)
- Paying off the loan balance, which accrues at the interest rate.
- Reaching the maximum repayment window of 12 years and adhering to all the terms of the contract
Pros and Cons of Edly’s IBR Options
| Pros | Cons |
|---|---|
| When making at or above the threshold income ($30K) your loan is repaid once you make 84 in-full post-graduation payments | If you earn a high wage or want to pay your loan off early, you may end up paying 2.5x more than you borrowed |
| Choice between the Cosigned and No Cosigner IBR Student Loan | It may be more difficult to qualify for the No Cosigner IBR Student Loan without a strong credit history. |
| If you are unemployed or your income level is less than $30,000/year you may request hardship forbearance (interest will continue to accrue during periods of forbearance) | Making less than the minimum threshold may add time to your overall repayment term |
| Payments are considered flexible and easy to budget as it is a set percentage of your income | IBRs may not be available to all as there may be specific degree or major requirements. Also, the maximum repayment term is 12 years. |
| Your loan has a fixed cap on the amount you pay | Taking out multiple IBR loans could require you to pay a larger percentage of your income during repayment. |
How to Apply for an Edly Loan
- Begin by going through Edly's online application process and indicate whether you will be applying alone or with a cosigner.
- Edly will run a soft credit check (which does not affect your credit score) to look for adverse credit history such as defaults or collections prior to your final approval.
- If approved, you will receive your final terms. Carefully review them to fully understand all the terms and conditions of the loan before accepting your loan. The terms of your loan (IBR percentage, initial monthly payment, initial APR and minimum income threshold) are all dependent on your school, year in school, major, intended graduation date, and amount needed.
- Upon accepting your offer, Edly will send your information to your school to be certified and disbursed.
Edly Customer Service
Customer Service representatives at Edly can be reached via phone, email, or via online chat. Their team is available five days a week, Monday through Friday.
Edly Headquarters
Edly is located in Briarcliff Manor, New York and they have fewer than 50 employees.
