Earnest student loan refi - continued delay in student loan payoffs

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For my student loans I unfortunately went through Earnest and they are kicking the can down the road in the payoff step. I signed on 1/16, and they said it should take 7 days to payoff. A month later they've sent multiple additional emails saying 30 days, and now as of yesterday at least another 30 days (so 60 total, at a minimum) until payoff.

Not sure if they have liquidity issues or what, but if I were to redo today I would avoid them if at all possible.

Any advice on if I should ditch them? Can't tell if they will actually ever payoff or if they will be endlessly delaying. Meanwhile interest rates are going up...

Edit: by interest rates going up I mean with the alternative refinance company I would have to apply through.

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Have you called them to ask what the delay is?

If it were me and the delay was their fault, I'd be demanding the rate on the day I committed to refi with them.

Yeah, I tried to consolidate with them and they gave me a bunch of BS about why I wasn't eligible.

rmf1981 said:   Have you called them to ask what the delay is?

If it were me and the delay was their fault, I'd be demanding the rate on the day I committed to refi with them.


Yes agreed, done and done earlier this month, their responses are copied below:

"As a result of unusually high loan volume in December and January, our payoff processing times have been extended. We are currently realigning our resources and expect payoff processing time to return to normal shortly. But in the interim, we are estimating that it may take an additional 45-60 days to issue a payoff to your current lender."

"...the contract and rates you were approved at will not change. The only delay will be the payoff."

I've refinanced with both First Republic (geographic restrictions, but otherwise amazing) and D.R. Bank. Both were great and did exactly as advertised.

(The reason I refi'd twice is that I did a variable rate with DRB and then FR's fixed rate was lowered to the same level as the variable so I switched. Locked everything in for a 10 year payoff at 2.95%.)



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