Laurel Road is an FDIC insured bank offering both federal and private student loan refinancing; it has helped thousands of professionals consolidate and refinance more than $7 billion in federal and private student debt. In addition to these consolidation and refinancing options, Laurel Road offers an online suite of graduate school loan products, personal loans, and mortgages.
A Laurel Road personal loan for student loan refinancing provides consumers with flexible terms, no fees, and award-winning lending. Laurel Road was named the Best Consumer Lending Company and Best Overall LendTech Company in 2019 by FinTech Breakthrough, an organization that recognizes top companies in the fintech industry.
Highlight: Laurel Road refinancing rates and terms
*Rates include a 0.25% autopay discount if you set up automatic payments from your bank account.
Continue reading for more information about the company's student loan refinancing options, as well as Laurel Road reviews.
Laurel Road has been in business for seven years, which may seem short, but is enough time to make it a frontrunner in student loan consolidation and refinancing services. Unlike other competitors, Laurel Road offers its loan refinancing services in all 50 states and to all accredited undergraduate and graduate schools in the United States.
Laurel Road offers a helpful loan feature called unemployment protection. If you lose your job or struggle in hard economic times, the bank will allow you to postpone your loan payments for up to three months at a time. You can only use 12 months total of postponed payments throughout the life of your loan.
Laurel Road requires that you show evidence of financial hardship, and then the company will halt student loan payments. This is an awesome feature to help borrowers out when unexpected economic challenges or circumstances come up.
The company offers a number of options to help borrowers pay back student loan debt. For borrowers looking to refinance student loans, they may choose a loan term of 5, 7, 10, 15, or 20 years with a minimum loan amount of $5,000 and no cap on the student loan amount. If a borrower does not qualify on their own, they have the option to add a cosigner.
Unlike many other lenders, Laurel Road offers loan refinancing to customers from select associate's degree programs in addition to bachelor's and graduate financing. It is important to note that there is a $50,000 maximum amount for associate degree loans.
Laurel Road does not charge a loan origination fee or a prepayment penalty fee if a borrower chooses to pay off their loan before the end of term.
Many student loan refinance lenders do not have these fees, although some companies do have a loan origination fee.
To assist in the student loan refinancing process, Laurel Road provides a loan calculator. This calculator allows you to enter your personal student loan information and will then give you a general idea of what your payments would be with Laurel Road.
In addition to offering traditional student loan refinancing options, borrowers also have the option to refinance a Parent PLUS loan if applicable. Few student loan servicers provide this option, but graduates that meet Laurel Road's refinancing requirements and have a strong credit history can take on a parent loan.
Through Laurel Road's referral program, each time you refer a friend and they refinance with the company, you can can earn up to $400. You can easily determine how much you and your friend will earn on the Laurel Road website, and you don't even have to be a Laurel Road customer to participate.
Laurel Road has a minimum credit score requirement of 700, which is significantly higher than most other lenders in the industry. For recent graduates seeking to refinance their student loans, this may be a difficult requirement to meet if they have a low credit score or unestablished credit history.
If you are unable to meet Laurel Road's credit requirement, you can apply with a cosigner, which can increase your chances of approval.
Some consumers feel that Laurel Road's student loan interest rates are not as low as others. However, those rates have recently dropped. For a fixed rate student loan with payback periods of 5, 7, 10, 15, and 20 years, the interest rate ranges from 2.80 percent APR to 6.00 percent APR. For a variable rate student loan with the same payback periods, the interest rate ranges from 1.89 percent APR to 5.90 percent APR.
Laurel Road does not charge an origination fee or a prepayment penalty fee, but there are two additional charges to be aware of as a borrower.
Laurel Road charges a late fee of $28 or 5 percent of the missed student loan payment, whichever amount is greater. Many lenders do charge a late fee on missed payments, but some lenders do not.
In addition, a $20 non-sufficient funds fee is charged if a student loan payment is returned due to insufficient funds or a closed account.
Laurel Road customer reviews are currently limited, but the majority of reviews are negative, offering the company 1 star. Of these reviews, customers outline difficulty in getting approved, even with good credit, and many customers document experiences in which they had to wait an extended period of time before being denied. In addition, some customers mention that the application process is not very straightforward or fast.
It is important to note that due to the limited number of reviews, it is difficult to draw a conclusive picture of the lender, and if you have specific questions or concerns you should speak with a Laurel Road representative.
Todd Merlot Boston, MA
5 years ago