Edly Student Loans Reviews 2025: Edly, in cooperation with FinWise Bank—a Utah-chartered bank that is an FDIC member—provides a very different kind of private student loans. Its income-based loans are designed for students with no co-signer or credit history, making them appealing to those nearing graduation or going on to graduate studies.
This review breaks down the pros, cons, features, and considerations to help you decide if Edly’s IBR loans are the right choice for you.
Edly Student Loans Reviews 2025
Pros of Edly IBR Loans
- No Credit History Required: Ideal for borrowers with no established credit score.
- No Co-signer Needed: Provides financial independence for students without a co-signer.
- Repayment Cap Protection: Payments are capped at 2.25 times the borrowed amount, ensuring
Cons of Edly IBR Loans
- High Early Repayment Costs: Paying back the loan early still entails up to 2.25 times the borrowed amount, limiting flexibility in finances.
- Interest is accrued during forbearance: Borrowers with incomes of less than $30,000 can delay paying back but interest continues accumulating.
- Available in fewer places: The loans are not provided in Colorado, Connecticut, Iowa, Maine, Nebraska, Vermont, and West Virginia.
Who should consider Edly IBR Loans?
Edly IBR loans are appropriate for:
Undergraduate seniors, graduate students, and certificate seekers looking to cover funding gaps.
Those borrowers with no co-signer or credit history who would seek alternative options to the more traditional loans.
They tend to appeal to students majoring in high-demand fields like STEM, nursing, or business programs.
What Edly Has to Offer?
Founded in 2021, IBR loans offered by Edly function much like ISAs; borrowers repay on post-graduation income instead of on a fixed interest rate basis.
Acquisition of Avenify: In 2022, Edly acquired Avenify, a provider of income-share loans for nursing students, further expanding its offerings.
Repayment Flexibility: Borrowers agree to pay a percentage of their income over a fixed period, capped at 12 years (144 months) for hardship forbearance or 7 years (84 months) for regular repayment.
Loan Features at a Glance
- Loan Limits: You can borrow up to $15,000 per year for college and up to $10,000 for summer classes, with a lifetime maximum of $25,000.
- Income-based Repayment Rate: Averages 6.8%, but will range from 1.96% to 20%, depending on your situation.
- Repayment Cap: You will not have to pay more than 2.25 times the amount you borrowed.
- Hardship Forbearance: Payments can be suspended if your annual income falls below $30,000, although interest continues to accrue.
How Much Will You Pay?
Edly’s repayment terms are income and loan-specific. For instance:
A borrower borrowing $20,000 at a 6.8% rate of repayment and earning an annual salary of $83,000 (with 2% annual increases) will repay around $41,959 over seven years.
This is equivalent to a 15.69% interest rate on a traditional loan.
While the repayment cap protects against unmanageable costs, borrowers with higher incomes may end up paying significantly more than they would with a traditional loan.
Edly’s Forbearance Policy
Borrowers earning less than $30,000 annually can request forbearance, pausing payments without penalties.
Unlike some ISAs, Edly does not automatically set payments to $0 for low-income borrowers.
Any months spent in forbearance count toward the 144-month cap, ensuring the loan doesn’t linger indefinitely.
How Edly Can Get Better
- Lower Early Repayment Penalties: Removal or reduction of the 2.25x cap repayment on early payoffs could improve the attractiveness of Edly.
- Automatic Payment Adjustment: Auto-setting payments to $0 for borrowers whose earnings do not exceed the threshold might alleviate financial stress
- No-interest Forbearance: Halting the addition of interest during hardship periods may positively affect low-income earners.
- Widen State Reach: Nationwide availability of the loan means it will be much accessible
Before You Apply
Exhaust Federal Loan Options First: Federal loans are usually cheaper in terms of interest rates and offer more flexible repayment terms besides income-driven repayment plans and Public Service Loan Forgiveness (PSLF).
Compare the Costs: Compare Edly’s terms with other available private loan options. Note the total repayment, how flexible forbearance terms are, and early payoff terms.
Final Thoughts: Is Edly Right for You?
Edly’s IBR loans are an attractive option for students without a co-signer or credit history, providing income-contingent repayment flexibility. However, high repayment caps and state restrictions may make the product less appealing to some borrowers.
For the best deal, compare Edly’s costs to federal and private loan alternatives. Those who wish to pay off their loans early or otherwise save money on overall cost will want to explore more traditional student loans with lower interest rates and better early payoff options.
Learn More and Apply at Edly Today
Visit Edly’s website to learn more and apply, but do all of your research first and understand the implications of a loan.
Braj Verma is a resident of Rajgarh in Madhya Pradesh and is a content writer and freelancer by profession. He has a degree in Political Science from Barkatullah University, Bhopal. He has expertise in subjects like credit cards, banking, loan, insurance, political analysis and digital marketing.