Lendmark Student Loan Reviews: Rates, Options, and Public Opinion

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If you are looking for a way to finance your college education, a student loan is one of the many ways to do so. If used wisely and as part of a comprehensive strategy to finance your education, student loans can be a valuable source of funding. When speaking about student loans, we should mention that not all loans are the same. There are student loans issued through private lenders, and there are federal direct student loans that are managed by several companies authorized by the federal government to do so. In this article, we will review Lendmark student loans.

We will look at some loan products offered by Lendmark, consider their rates and fees, and compare them to some other loan programs to give you a complete picture of student loan options available.

What Is a Lendmark Student Loan?

Lendmark Student Loans are administered through Lendmark Financial. They offer a wide variety of loan products including, personal loans, debt consolidation, and auto loans. Lendmark does not offer a packaged student loan product, nor is it an approved federal student loan servicer. However, one could get a personal loan through Lendmark to fill in the gap in education funding as Lendmark offers personal loans up to $25,000 for qualified borrowers.Also, many borrowers turn to private lenders to consolidate federal student loans into one loan that may be easier to manage. It is important to keep in mind that federal student loans and most private student loans have several features such as in-school deferment, forbearance, and income-based repayment plans that Lendmark loan products do not feature.

Loan Products

Lendmark Financial offers personal loans, debt consolidation loans, and auto loans up to $25,000. Lendmark loans have varying collateral requirements and, depending on the loan type, may not require collateral at all. Interest rates on Lendmark loan products range from 6.49% to 35.99% with the lower interest rates being awarded to well-qualified borrowers and for loan products that require collateral such as an automobile. A debt consolidation loan can be a good idea as many borrowers may get a better interest rate with a Lendmark loan compared to credit card interest rates.

Pricing

Lendmark Financial has loan products available from $2,500 to $25,000 with available terms of 36 or 60 months. Interest rates range from 6.49% to 35.99% and are determined by several factors including the debt-to-income ratio and credit score.

How It Compares

We picked a few similar products available on the market to see how they compare.

• Direct Consolidation Loans
• Parent PLUS loans
• Perkins Loans
• Lendmark Student Loan

Lendmark Student Loan

• Price
• Interest Rate
• Loan Options 
• Public Opinion
• Loan Terms

With interest rates up to 35.99%, a Lendmark loan is a very expensive source of funding for post-secondary education.

A personal loan through Lendmark will carry an interest rate of up to 35.99% which is much higher than most private student loans and significantly higher than a federal student loan.

1/5 stars

Although a true student loan is not offered, personal loans can be used for whatever the borrower would like including education expenses. However, with high rates and short repayment terms these loan products are not a good idea for a college student.

1/5 stars

Many borrowers have lodged complaints against Lendmark for several reasons including poor customer service.

1/5 stars

With terms of 36 or 60 months, these loans would be very difficult for a college student to manage in any large amount.

1/5 stars

PROS

• Quick approval time
• Simple application; FAFSA is unnecessary 
• Funds go directly to you, not to your school

CONS

• High-interest rates
• No flexible repayment plans 
• No in-school deferment

Direct Consolidation Loans

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A direct consolidation loan is a federal student loan program that allows a borrower to consolidate several student loans into a single loan. These loans make managing repayment much easier since most student loan borrowers will have many individual loans which would be much more difficult to keep track of and more expensive to repay. Private student loans and Plus Loans that have been issued to the parents of the student are not eligible for consolidation. Direct Stafford Loan and Plus loans for graduate students are eligible for consolidation.

Typically, loans have to be in a grace period or repayment for consolidation, and defaulted loans must be brought into good standing before being included in a consolidation loan. When a student leaves school or drops below half-time enrollment, they will be eligible for a consolidation loan. Also, an existing consolidation loan can be re-consolidated into a new loan if a new loan is being brought into the consolidation.

Interest rates on a consolidation loan are determined by computing the weighted average of all existing loans being consolidated and rounding up to the nearest 1/8 percent. Direct loan interest rates vary from 5.05% to 7.6%. Therefore, the interest rate on a consolidation loan would fall somewhere in that range.

Repayment on consolidation loans varies from a standard 10-year repayment plan to a 25-year extended repayment term for borrowers with over $30,000 in loans. Also, several income-based repayment plans are available in which the monthly payment is determined by the borrower’s family size and adjusted gross income.

These payment amounts must be re-calculated once per year and will change as your income changes. Also, it is important to keep in mind that income-based repayment plans most times will not fully amortize a loan and therefore are eligible for forgiveness after several years depending on the plan. Also, regarding forgiveness, direct consolidation loans are eligible for the public service loan forgiveness program in which people that work in certain professions may have their loan balances forgiven after ten years if they meet certain criteria.

Overall, the direct consolidation loan program is an outstanding option for borrowers that have multiple student loans and/or significant student loan debt.

• Price
• Interest Rate
• Loan Options 
• Public Opinion
• Loan Terms

With interest rates up to 35.99%, a Lendmark loan is a very expensive source of funding for post-secondary education.

The interest rates on a consolidation loan are the weighted average of the loans being consolidated which will fall between approximately 5% and 7.6%.

4/5 stars

Several repayment plans are available, and repayment plans can be changed at any time giving the borrower great flexibility to find the plan that is best for them.

4/5 stars

Federal student loans have gotten lots of publicity lately, mostly because of lending practices that allow young people to borrow significant amounts of money with no need to show an ability to repay.

2/5 stars

Several loan terms ranging from 10 to 25 years are available which allow the borrower to select the term and payment that best works for them.

5/5 stars

PROS

• Flexible terms
• Extended repayment plans of up to 25 years
• Income-based repayment plans available

CONS

• The loan service company is assigned to you
• Interest rates are not determined by creditworthiness 
• Under IRS rules, some forgiveness programs must be counted as taxable income for the amount being forgiven

Parent PLUS Loans

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A Parent Plus loan is a federal student loan that is awarded to the parents of an undergraduate college student instead of the student. The Plus loan is typically used when the student has exhausted their allowable undergraduate direct loan limits. Parents cannot have an adverse credit history to qualify for a Plus loan. There are no maximum aggregate limits on a Plus loan and parents may borrow up to the full cost of attendance for their child minus any financial aid the student is receiving.

Repayment terms vary from a standard 10-year plan to a 25-year extended term for borrowers with at least $30,000 in total loan debt. Interest rates on Plus loans are the 10-year treasury bond rate plus 4.6% with a rate cap of 10.5%. The current rate is 7.6% on Parent Plus loans. Plus loans can be consolidated into a single loan by the parent and cannot be included in the student’s loan consolidation. The origination fee for a Parent Plus loan is 4.2%.  

• Price
• Interest Rate
• Loan Options 
• Public Opinion
• Loan Terms

Plus Loans are rather expensive with a 4.2% origination fee.

Interest rates on Plus loans are higher than any other direct student loan programs with rates around 7.6%.

3/5 stars

Plus loans allow great flexibility in borrowing because there are no aggregate limits as the borrower can borrow up to the full cost of attendance minus applicable financial aid.

5/5 stars

Student loans, including Plus loans, have gotten lots of negative publicity because of what some perceive to be predatory lending practices.

2/5 stars

Terms of 10 years up to 25 years are available depending on the total amount of loans outstanding.

4/5 stars

PROS

• No loan limits
• In-school deferment available
• Repayment terms of up to 25 years available

CONS

• High origination fee
• The relatively high-interest rate for student loans
• Not eligible for income-based repayment plans

Stafford Loans

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The Stafford Loan program is a federal program designed to provide low-interest loans to students to help finance post-secondary education. These loans can be subsidized or unsubsidized depending on the borrower’s cost of attendance and financial need. A subsidized loan is a loan in which the federal government pays the interest on the loan as long as the borrower is enrolled in college at least part-time. An unsubsidized loan is a loan in which the interest on the loan will be capitalized or added to the principal of the loan as long as the borrower is in school.

Each college’s financial aid department determines each student’s need for financial aid based on that student’s FAFSA. If a student is only eligible for a portion of their aggregate loan limit for a subsidized loan because of financial need, that student may borrow the rest of their limit as an unsubsidized loan.

The total limit for an undergraduate student for a Stafford loan is $57,000 for both subsidized and unsubsidized loans combined. Interest rates are 5.05% on subsidized loans and 6.6% on unsubsidized loans. Graduate students are not eligible for subsidized loans. These loans have similar repayment terms and plans as all federal student loan products and are eligible for consolidation.

• Price
• Interest Rate
• Loan Options 
• Public Opinion
• Loan Terms

Stafford loans have a low origination fee of around 1%.

Interest rates are between 5.05% and 6.6% which are relatively low compared to most unsecured debt available.

5/5 stars

While these loans are subject to annual and cumulative loan limits, borrowers can borrow any amount up to their limit.

4/5 stars

Federal student loans have gotten lots of bad publicity in recent times because of what many people believe are predatory lending practices.

2/5 stars

Several repayment terms are available from a standard 10-year plan up to an extended 25-year term depending on the total amount borrowed.

4/5 stars

PROS

• They may subsidize loans
• Eligible for consolidation
• Eligible for income-based repayment plans

CONS

• Some students may borrow more than they need
• Unsubsidized interest is capitalized 

Conclusion

Student loans are necessary for many people to afford post-secondary education. However, it is very important that borrowers select the product right for them and keep in mind that a student loan is a loan that must be repaid. Therefore, students are strongly advised against borrowing more than what they need to pay for their educational expenses and use loans as a last resort only.

We can only award Lendmark one star out of five for student loans. Students may be drawn to this company because they eliminate the need to complete a lengthy and complicated FAFSA form and applications are quickly approved. Additionally, funds are delivered directly to the student rather than to the educational institution. However, with high-interest rates and little flexibility regarding repayment plans, this financial institution will not be beneficial to most students.

Lendmark loans are more geared towards working with individuals needing personal loans but can be useful for parents as an alternative to a Plus loan if they can get a better interest rate.