Business Insider's personal finance team compared Laurel Road Student Loan Refinancing to the best student loan refinance companies and found it to be an industry leader thanks to low fixed rates and a variety of repayment terms.
Laurel Road is best for borrowers looking to refinance their private student loans at a low cost. The lender also offers private student loans for undergraduates, graduates, and those in career training programs through a partnership with Sallie Mae.
Before making the decision to refinance or take out new private student loans, be aware that you lose certain benefits that come with federal student loans, such as income-driven repayment (IDR) plans and loan forgiveness.
Laurel Road Student Loans Overview
Laurel Road is an excellent choice for refinancing student loans. The company offers competitive APRs and a multitude of repayment options.
Both new and refinanced loans from Laurel Road have repayment terms of five, seven, 10, 15, or 20 years.
In as little as five minutes, you can check your rates with Laurel Road without having any impact on your credit score. However, if you continue with your application, the lender will conduct a hard credit inquiry, giving the company a complete view of your credit history while potentially hurting your score.
When you open a Laurel Road Linked Checking account and make qualifying direct deposits, you may become eligible for discounted student loan refinance rates. Another unique opportunity Laurel Road has to lower your payments is the Laurel Road Student Loan Cashback card. It's a credit card that lets you earn 2% cash back that you can put towards eligible student loans.
Types of Laurel Road Student Loans
Laurel Road is best known for refinancing student loans. However, the company now has private student loan options as well. Prior to the 2024 to 2025 school year, Laurel Road also originated healthcare graduate school loans. The healthcare graduate school loan program has since been paused, and the lender has not yet released whether or not it will be continued in the future.
Laurel Road Student Loan Refinancing
Laurel Road offers student loan refinancing in three forms:
- Undergraduate
- Graduate
- Parent
Be sure to review federal student loan options before pursuing private student loans, including refinancing a loan from Laurel Road, as you can usually get improved terms and protections through the government.
Laurel Road Private Student Loans
Laurel Road has a partnership with Sallie Mae to provide private student loans. Sallie Mae offers undergraduate loans, career training loans, various graduate school student loans, and loans for after graduate school, such as a Bar Study Loan and a Medical or Dental Residency and Relocation Loan.
Private student loans through the Laurel Road and Sallie Mae partnership are available for a minimum loan amount of only $1,000. Neither lender charges origination fees or penalties for paying your loan off early.
These private student loans come with multiple repayment options, such as deferred, interest-only, or fixed. Laurel Road, in partnership with Sallie Mae, offers a cosigner release that you may be eligible for after you graduate by making 12 full payments on time and meeting credit requirements.
Variable: 4.47% - 10.89%, Fixed: 4.72% - 10.99% (with AutoPay discount)
Late fee or $38 or 5% of payment, whichever is less
660
$5,000 with no max
- Low fixed rates
- Customer service seven days a week
- Mobile app
- Multiple repayment terms
- Interest rate discounts
- Late fees
- Variable rates are slightly higher than competitors
Laurel Road is an excellent choice to refinance your student loans, as the company offers good APRs on its fixed-rate loans and a multitude of repayment options. However, its variable rates start slightly higher than the competition.
- Five, seven, 10, 15, and 20-year repayment term lengths available
- Customer service available via phone, live chat, and email
- $5,000 loan minimum, with no maximum
- Late fee of 5% of the late payment or $28, whichever is less
- .25% three-month introductory discount when you open a checking account with Laurel Road, then .25% discount for $2,500-$7,499 in monthly direct deposits, .55% discount for $7,500+
- Loans are offered by KeyBank, member FDIC
Compare Laurel Road Student Loans
Variable: 5.99% - 9.99%, Fixed: 4.49% - 9.99% (with all discounts)
Undisclosed
$5,000 to full balance
- No maximum balance you can refinance
- Low minimum interest rate
- Autopay discount
- No origination fee or prepayment penalty
- Third-party loan servicer
SoFi is an excellent lender for borrowers who want competitive APRs and for those who don't want to worry about fees.
SoFi Student Loans- 0.25% AutoPay discount
- Apply through your computer or mobile device
- Customer service available via phone, mail, and social media
- Loan amount from $5,000 to full balance
- Term lengths of five, seven, 10, 15, and 20 years
- Loans are serviced through third-party affiliate MOHELA
6.99% - 13.99% variable and 6.99% - 13.99% fixed (with AutoPay discount, varies by program)
Late fee of $25 or 5% of payment, whichever is less
Undisclosed
$5,000 to $300,000
- Low maximum interest rate
- No origination fee
- No prepayment penalty
- Many repayment term lengths
- Lower maximum refinancing amount
- Late fee
- High minimum interest rate
College Ave is a great lender for borrowers who want multiple options for repayment term lengths and are after a low APR. College Ave also offers many options for contacting customer support.
College Ave Student Loan Refinancing- Eleven different term lengths, from five to 15 years
- Loan amount range between $5,000 to $300,000
- Contact customer support by text, email, phone, live chat, or physical mail
- Loans made through Firstrust Bank, member FDIC or M.Y. Safra Bank, FSB, member FDIC
How to Apply for Laurel Road Student Loans
Eligibility Criteria
To be eligible for student loan refinancing with Laurel Road, you must be one of the following:
- A working professional with a four-year undergraduate or graduate degree from a Title IV accredited institution
- A professional with an associate degree in an eligible healthcare-related program who has been employed for a minimum of one year in the same field of study
- A parent of a student who attended or is currently attending a Title IV school
You will also need to meet certain credit, income, and monthly debt requirements.
To be eligible for a private student loan through Laurel Road's partnership with Sallie Mae, you must meet the following qualifications:
- Be enrolled in a participating school full-time, half-time, or less than half-time
- Be pursuing a degree or certificate
- Be the age of majority in your state (18 years or older is common)
- Be a U.S. citizen or have valid permanent resident status
- Agree to a hard credit inquiry (exact credit requirements depend on the loan program you're interested in)
Step-by-Step Application Process
- Put in an application on Laurel Road's website by submitting the required documentation. Laurel Road will generate an estimated monthly payment and rate range with no impact on your credit score.
- Sign a loan agreement and get your new loan. After you sign your loan agreement, you may get your new loan soon after with Laurel Road. Keep in mind that refinancing a loan means you replace your old loan with a new one.
- Work loan payments into your budget. Figure out how to adjust your budget to fit in your new loan payments. Make sure you have enough money to cover all of your financial responsibilities.
Required Documentation
When applying for student loan refinancing with Laurel Road, you'll need to supply a photo ID, your email address, name, phone number, address, education level, employment status, and income history. If you have a cosigner, they will likely need to provide proof of income as well.
Laurel Road Interest Rates and Fees
Current Interest Rates
Laurel Road offers interest rates of Variable: 4.47% - 10.89%, Fixed: 4.72% - 10.99% (with AutoPay discount) with terms ranging from five to 20 years.
Fee Structure and Terms
Laurel Road does not charge application fees, origination fees, or prepayment penalties. The lender will charge late fees for payments that are more than 15 days past due. Late fee or $38 or 5% of payment, whichever is less.
Additionally, the lender will charge a $20 fee for returned checks.
Repayment Options and Benefits
Laurel Road offers several options to repay your private student loans: deferred, interest-only, and fixed payments. The best repayment plan for you depends on your situation. Laurel Road student loan refinancing payments begin 30 days after funding.
Deferred and fixed payments will cost more than interest-only payments because interest will accrue while you're in school and during your grace period. This interest will then be capitalized, which means it will be tacked on to your loan balance after periods of nonpayment, including forbearance, deferment, and after your grace period. This will add to your loan balance, and you'll then pay interest on that higher amount, increasing the overall cost of your loan.
Deferred Repayment
- Make no payments while in school or during a six-month grace period
- Unpaid interest accrues
- Interest is capitalized at the end of the grace period
- Highest total cost
Fixed Repayment
- Pay a fixed amount per month while in school and during a six-month grace period
- Unpaid interest accrues
- Interest is capitalized at the end of the grace period
- Low in-school payments
Interest-Only
- Pay the loan's interest monthly while in school and during a six-month grace period
- Higher in-school payments
Prior to deciding to refinance your student loans, consider alternatives such as income-driven repayment (IDR) plans that are only offered for federal student loans. These are monthly payment plans based on your income and family size. The government has four different IDR plans, including:
- Pay As You Earn (PAYE) Repayment Plan
- Income-Based Repayment (IBR) Plan
- Income-Contingent Repayment (ICR) Plan
- Saving on Valuable Education (SAVE) Plan, which was formerly the REPAYE Plan
Laurel Road offers an IDR Counseling membership that can help you explore potential opportunities for federal student loan forgiveness or payment plans.
Laurel Road Student Loans Pros & Cons
Laurel Road Student Loan Pros
- No origination fee, prepayment penalty, or application fee. These fees — which some other lenders charge — may increase the overall cost of your loan drastically.
- Many repayment term options. You'll be able to choose from five, seven, 10, 15, and 20-year repayment term lengths.
- Mobile app. If you want to manage your loan on the go, you'll be able to do so with Laurel Road.
- Great interest rates on fixed-rate loans. Laurel Road has an interest rate range of Variable: 4.47% - 10.89%, Fixed: 4.72% - 10.99% (with AutoPay discount).
- Accessible customer support. You'll be able to reach the support desk five days a week by phone, email, and live chat.
- Loan interest rate discounts after signing up for a Laurel Road checking account. You'll get a 0.25% three-month introductory discount when you open a checking account with Laurel Road, then a 0.25% discount for $2,500-$7,499 in monthly direct deposits, and a 0.55% discount for $7,500 or more.
- The Laurel Road Student Loan Cash Back credit card offers 2x cash back to redeem on student loan payments
Laurel Road Student Loan Cons
- No longer originates student loans. Laurel Road only offers private student loans through its partnership with Sallie Mae.
- Slightly higher variable rates than competitors.
Late fees. You'll fork over a late fee of 5% of the late payment or $28, whichever is less.
Laurel Road Student Loan Alternatives
Laurel Road Student Loans vs. Earnest Student Loans
Earnest originates undergraduate and graduate loans, while Laurel Road only refinances those loan types. Earnest gives you the option to skip a payment without facing any penalties, whereas with Laurel Road, you can use a credit card to earn cash back toward your student loans.
Laurel Road has repayment terms of up to 20 years, and Earnest has extended terms of up to 30 years.
Laurel Road Student Loans vs. Sallie Mae Student Loans
Sallie Mae sets the repayment term for undergraduate students and only has one repayment term available for graduate students.
Laurel Road offers a rate discount of up to 0.55% when you open a checking account with the company and make a certain amount of monthly direct deposits. You'll get a 0.25% interest rate discount with both Sallie Mae and Laurel Road when you set up AutoPay.
Sallie Mae Student Loan Review
Laurel Road Student Loan Customer Experience
Laurel Road receives average ratings and 2.9 stars out of five on the consumer review site Trustpilot. Many customers complain of being locked out of their accounts without any idea of when they will regain access.
Several people shared positive experiences, stating how glad they were to refinance and consolidate their student loans with Laurel Road. It's also important to note that the lender takes the time to respond to most customer reviews.
Is Laurel Road Trustworthy?
Laurel Road is owned by KeyBank, which has an A+ rating from the Better Business Bureau, a non-profit organization focused on consumer protection and trust. The BBB evaluates businesses by evaluating replies to consumer complaints, truthfulness in advertising, and clarity about business practices.
Laurel Road hasn't been involved in any scandals or controversies over the past few years, so you might feel comfortable taking out a loan from the company.
However, you won't necessarily have a good relationship with Laurel Road simply because of the business' sparkling BBB score and clean history. Reach out to your friends and family about their experiences with the lender and find out what other customers are saying about the company online.
Why You Should Trust Us: How We Rated Laurel Road Student Loans
We rate all student loan products in our reviews and guides on a 1-5 scale. The overall rating is a weighted average that takes into account seven different categories, some of which are judged more heavily than others. They are:
- Interest rate (20% of rating)
- Fees (20% of rating)
- Term lengths (15% of rating)
- Repayment options while in school (15% of rating)
- Borrower accessibility (15% of rating)
- Customer support (7.5% of rating)
- Ethics (7.5% of rating)
Each category's weighting is determined based on its importance to your borrowing experience. Rates and fees have the most significant impact on the total cost of your loan, so we weigh those the most heavily. Customer support and ethics are still crucial parts of the borrowing experience, but are not directly tied to a student loan's terms, so they have less of an impact on the overall rating.
Read more about how we rate student loans »
Laurel Road Student Loan FAQs
The interest rates for Laurel Road student loans are competitive and vary based on the loan type and borrower's credit profile. Visit its official website for the latest rates.
To apply for a Laurel Road student loan, visit the Laurel Road website and complete the application form and submit the required documents.
Yes, you can refinance existing student loans with Laurel Road. Laurel Road offers refinancing options for both federal and private student loans.
Laurel Road offers repayment terms ranging from five, seven, 10, 15, or 20 years for student loan refinancing.
Laurel Road does not charge application fees, origination fees, or prepayment penalties. It does charge a late payment fee of 5% of the balance due or $28, whichever is less. There is also a $20 returned check fee.
