Earnest (company)
| Company type | Private |
|---|---|
| Industry | Financial technology |
| Founded | 2013 |
| Founder | Louis Beryl, Benjamin Hutchinson |
| Headquarters | San Francisco, California , United States |
Key people | David Green (CEO) |
| Products | Student loan refinancing, private student loans |
| Parent | Navient Corporation |
Earnest is a financial technology company based in San Francisco, California, that focuses on financing solutions for higher education, including student loan refinancing and private student loans. The firm employs a merit-based lending strategy, assessing applicants’ comprehensive educational background, employment history, and financial standing alongside credit scores to determine eligibility.
History
The company was established in 2013 by Louis Beryl, who previously was a partner at the Silicon Valley venture capital firm Andreessen Horowitz, and Benjamin Hutchinson, who held high-level finance positions at the BBC and the U.K.’s HM Treasury. The concept originated with Beryl during his M.B.A. and Public Policy studies at Harvard University, after he faced loan rejection despite strong credentials from Princeton University and experience on Wall Street. He recognized that conventional banks’ limited lending standards excluded many qualified borrowers.
In 2014, Earnest secured $15 million in initial funding from venture capital firms such as Andreessen Horowitz, First Round Capital, Maveron, Collaborative Fund, and Atlas Venture. The company piloted its personal loan product in Boston before officially launching it in March 2014. By the end of that year, Earnest had issued $8 million in loans and achieved a growth rate of 70%.
On January 27, 2015, Earnest raised $17 million in Series A funding led by Maveron and introduced student loan refinancing options for undergraduate and graduate borrowers with interest rates starting as low as 1.92% APR. Later in November 2015, the company obtained $75 million in funding led by Battery Ventures along with a $200 million warehouse credit facility from New York Life to support expansion of products and staff.
Earnest earned a spot on Fast Company’s 2016 list of the World’s 50 Most Innovative Companies. In August 2017, it broadened its presence by opening an office in Salt Lake City, Utah.
In October 2017, Earnest was purchased by student loan servicer Navient Corporation for $155 million, continuing operations as a distinct brand within Navient’s corporate framework. Founder Louis Beryl resigned as CEO in January 2018; Susan Ehrlich was appointed CEO by Navient in July 2018.
The company launched its private student loan product in April 2019. Susan Ehrlich retired from her CEO role in April 2021 to dedicate time to board responsibilities. David Green took over as CEO on April 16, 2021. Green has deep expertise within Earnest, having held roles including Head of Credit Operations, General Manager, Head of Student Loan Refinance, Chief Product Officer, and Chief Operating Officer over six years.
Model
Earnest provides private student loans and refinancing services through a tailored evaluation process that factors in education credentials, earning potential, and financial behavior rather than relying exclusively on credit scores. Its online platform allows borrowers to adjust loan repayment amounts and schedules for greater flexibility.
By April 2021, Earnest had refinanced $14.5 billion of student loan debt. As of June 2021, its offerings extend to 48 states plus the District of Columbia, excluding Kentucky and Nevada.