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Edly Income-Based Loans: 2022 Review

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Edly is a private lending platform based in New York that offers students income-based student loans issued by FinWise Bank, a Utah-chartered commercial bank. Edly’s loans function as income-share agreements – where borrowers receive a set loan amount and make payments according to a percentage of their income after school.

While the company doesn’t disclose many of its lending terms — such as the income share rate you can expect or the maximum repayment timeline — Edly could be a good option for borrowers who need a small amount of money on a short timeline. Edly’s maximum loan amount is $25,000, but it can offer instant approval and a fast turnaround for funds.

Edly features

Edly offers loans to undergraduate and graduate students enrolled in an eligible major at one of the 1,700-plus schools that Edly partners with. Edly requires just 60 payments once you meet the minimum income threshold, and it offers a relatively long grace period of four months.

One benefit of Edly is its commitment to helping borrowers find the right solution for them. Edly and its partner bank, FinWise, say that they will provide disclosures to students allowing them to compare its loan product with more traditional student loans. This can help borrowers decide whether an Edly’s product is truly right for them, compared with a potentially cheaper student loan.

Edly snapshot

Income share percentage Not specified
Loan amounts Up to $25,000
Repayment timeline  60 months of payments
Grace period 4 months
Minimum income threshold $30,000
Payment cap 2.25 times the amount borrowed or 23% APR

Pros and cons of Edly

Here are the benefits and downsides to be aware of before going with a loan from Edly.

Pros

  • Transparent minimum income threshold: Edly doesn’t require borrowers to make any payments until their yearly gross income either meets or exceeds $30,000.
  • No hard credit check: Edly doesn’t base approval on credit score, but rather your academic transcript, expected graduation date and anticipated gross annual income. You’ll go through only a soft credit check during the application, so your credit score won’t be affected.
  • Many partner schools: Edly works with more than 1,700 schools and more than 100 majors, so its products are available to many types of students.

Cons

  • Limited loan amounts: Edly limits its total loan amount to $25,000, so it’s not a great option for students who need to cover the full cost of their education at an expensive school.
  • Income rate percentages not specified: Edly does not disclose any of its income rate percentages. Students will need to get a quote from the company to accurately estimate how much loan will cost them.
  • Few eligibility requirements disclosed: Edly is cagey about who qualifies for its product. To find out if you’re eligible, you’ll have to submit a request for a quote.

Eligibility requirements

Edly does not disclose many of its eligibility requirements. Borrowers will need to attend an eligible institution and be pursuing an eligible major. While Edly does not have a minimum credit score requirement, it will do a soft pull to check for an adverse credit history, such as late payments or default. Borrowers with negative marks may have a harder time being approved.

Who is this loan good for?

Edly is a good choice for borrowers who need a small amount of money to fill in gaps in their funding, since Edly’s loan cap is only $25,000. Borrowers who expect to enter a field with a high income may want to consider a traditional lender, since Edly’s payment cap is high: 2.25 times what you initially borrowed.

Income share rate

Edly doesn’t disclose its minimum income percentage rate, but it does mention that it’ll cap payments if your payments hit the equivalent of 23 percent APR.

Fees and penalties

Edly doesn’t disclose whether it charges fees.

Repayment terms and grace period

Edly requires 60 months of payments, though it does not indicate whether there is a maximum repayment timeline.

Edly provides a four-month grace period and allows for hardship deferment upon a job loss.

Income requirements

Payments on your loan from Edly won’t begin until you earn at least $30,000 a year. Repayment is also capped at 2.25 times what you initially borrowed. This means that if you borrowed $10,000, you would no longer be required to make payments once you’ve repaid $22,500.

Customer service

You can contact the Edly customer service team by calling 914-775-8299, by filling out the online contact form on Edly’s website or by utilizing the live chat feature.

How to apply for a loan with Edly

Edly’s application process is completely digital. According to the website, it takes less than three minutes to go through the preapproval and application process.

Here’s how to apply with Edly:

  1. Click “Get Started” to see if you meet the eligibility criteria. You’ll be asked basic questions about your education, like your school name, major and anticipated graduation date.
  2. After checking your terms, you’ll be led to the online application. Here you can apply and get prequalified without affecting your credit score.
  3. You’ll instantly receive your final loan terms after applying. If you accept the offer, Edly will send the information over to your school for approval and disbursement.
Written by
Hanneh Bareham
Student loans reporter
Hanneh Bareham specializes in everything related to student loans and helping you finance your next educational endeavor. She aims to help others reach their collegiate and financial goals through making student loans easier to understand.