Laurel Road is an industry leader in private student loan refinancing. It’s got some of the lowest interest rates, and more flexible terms than most private lenders.
That said, you need a great credit score and a great job to qualify to refinance with Laurel Road.
Laurel Road has been doing student loan refinancing for a long time, previously under the name DRB or Darian Rowayton Bank.
As a result, Laurel Road is named as one of our best student loan lenders to refinance with. Laurel Road also is one of the best student loan bonus offers we've found.
Will you qualify, and if you do should you refinance with Laurel Road? We explain the basics, so you can decide whether refinancing with Laurel Road makes sense for you.
Quick Summary
- Low student loan refinancing rates
- Great loan options for Parent PLUS Loan borrowers
- High balance student loan refinancing
- Get a $200 bonus when you refinance
Laurel Road Student Loans Details | |
|---|---|
Product Name | Laurel Road Student Loan Refinancing |
Min Loan Amount | $5,000 |
Max Loan Amount | Total Loan Amount |
Variable Rate | 1.89% - 5.90% APR |
Fixed Rate | 2.50% - 6.00% APR |
Loan Terms | 5, 7, 10, 15, and 20 years |
Promotions | $200 Bonus |
Who Qualified To Refinance With Laurel Road?
Laurel Road is targeting their refinancing services at parents and students with solid employment, decent incomes, and good to great credit.
While Laurel Road doesn’t specifically disclose its underwriting criteria, it does make a point to mention that to refinance you must be employed in a “professional capacity.” That may mean that entrepreneurs or self-employed people may not be able to qualify for refinancing.
In addition to meeting underwriting criteria, you must be a U.S. Citizen or a Permanent Resident to qualify for refinancing.
Laurel Road Rates And Terms
Laurel Road consistently offers low interest rates, and flexible terms on its student loan refinances. One unique loan that it offers is a Parent PLUS refinancing option. Not only can parents refinance to a lower rate, they may be able to refinance the loan into their child’s name (provided you accept the loan and meet underwriting standards).
To me, it makes a ton of sense for adults with solid incomes to take over payments on Parent PLUS loans, and I love that Laurel Road makes that easy and legally binding.
Laurel Road currently offers the following rates:
- Variable Rate: 1.89% - 5.90% APR
- Fixed Rate: 2.50% - 6.00% APR
Whether you’re refinancing a student loan or a parent plus loan, you’ll need to decide on a repayment term as well as whether you want a variable or fixed interest rate loan. Variable interest rate loans have interest rate maximums ranging from 9-10%.
You must refinance at least $5,000, and anyone refinancing more than $300,000 will be required to take out two loans.
In addition to standard refinancing, Laurel Road offers a Medical residency refinancing option. This allows medical residents to pay $100 per month towards their refinanced loans while they are in residency. If $100 doesn’t cover interest, additional interest will be added on following the end of residency. Once your residency is over, your repayment period begins, and ranges from 7 to 20 years. Rates on residency loans are below.
This is a great program, but Splash Financial currently has the best program for medical residency student loans at just $1 per month. Check out Splash Financial here.
How Does Laurel Road Compare?
Laurel Road is consistently rated as one of the best places to refinance a student loan. They offer incredibly low rates, and their loan maximum is one of the highest in the industry.
Check out the quick comparison here:
Header |  |  |  |
|---|---|---|---|
Rating | |||
Variable APR | 1.89% - 5.90% | 1.89% - 6.15% | 2.39% - 6.01% |
Fixed APR | 2.50% - 6.00% | 2.54% - 6.25% | 2.58% - 5.99% |
Bonus Offer | $200 | Up to $500 | Up to $775 |
Cell |
Any Concerning Fine Print?
Unlike other companies, Laurel Road doesn’t have much concerning fine print. It doesn’t charge origination fees, and it has a modest $28 late fee. Of course, Laurel Road doesn’t have robust borrower protections like those offered by Federal Student Loans. You can’t, for example, get on an income based repayment program. Plus, loans from Laurel Road will be ineligible for loan forgiveness programs (such as Public Service Loan Forgiveness).
That said, Laurel Road has an economic hardship option that allows borrowers to have a 3 month deferment (up to 12 months over the life of the loan). This makes it possible for borrowers to remain in good standing if their income takes a dive temporarily.
Additionally, Laurel Road honors Federal “Grace Periods.” This means that Laurel Road will give you up to six months before you have to make your first payment if you’re still in school or just graduated. This perk is contingent on having accepted an offer of full time employment.
Laurel Road also can forgive your loans if you die or become permanently disabled. This is not guaranteed, but it’s always good to do business with companies that understand that life happens.
Bottom Line
Laurel Road has outstanding rates, and its got excellent borrower protections compared to other private lenders. The protections aren’t as good as Federal Student Loans, so you won’t want to refinance until you can comfortably make the payment. Still, someone with a solid income and a large student loan debt can save a lot of interest by refinancing.
Plus, when you refinance with Laurel Road through our link, you'll get a $200 bonus! Check out Laurel Road here.
As always, be sure to compare rates at multiple lenders before choosing one. You’ll never know where you can get the best rate until you apply with a few lenders. We recommend comparison shopping using Credible. You can get a $750 gift card bonus when you refinance with Credible!
Shop and compare your options at Credible.
Laurel Road FAQ
Here are some of the most common questions we get about Laurel Road:
Is Laurel Road Legit?
Yes! Laurel Road is a bank and student loan lender that offers competitive rates on student loan refinancing.
Who Owns Laurel Road?
Laurel Road is owned by KeyBank, N.A.
Where Are Laurel Road Loans Serviced?
MOHELA is the loan servicing company for Laurel Road student loans.
Is Laurel Road Good For My Student Loans?
It can be! Laurel Road offers highly competitive student loan rates and terms. If you have a large loan balance and are a highly qualified borrower, chances are Laurel Road will be the best fit.
Does Laurel Road Offer Any Bonuses or Incentives?
Yes! Laurel Road offers borrowers $200 if they refinance through our site.
Laurel Road Student Loan Refinancing
- Rates and Fees
- Application Process
- Customer Service
- Products and Services
Overall
Summary
Laurel Road is a student loan refinancing company that is a part of Key Bank. They offer competitive student loan refinancing, especially for higher-earning professionals.
Pros
- Competitive student loan rates, especially for highly qualified individuals
- Ability to refinance Parent PLUS Loans into the student’s name
Cons
- Lack of deferment options available
Robert Farrington is America’s Millennial Money Expert® and America’s Student Loan Debt Expert™, and the founder of The College Investor, a personal finance site dedicated to helping millennials escape student loan debt to start investing and building wealth for the future. You can learn more about him on the About Page, or on his personal site RobertFarrington.com.
He regularly writes about investing, student loan debt, and general personal finance topics geared towards anyone wanting to earn more, get out of debt, and start building wealth for the future.
He has been quoted in major publications including the New York Times, Washington Post, Fox, ABC, NBC, and more. He is also a regular contributor to Forbes.
