Laurel Road Review 2022 – Top 10 Student Loan Refinancing Services
Laurel Road is a company that tops the private student loan refinancing industry. The company offers low rates and flexible repayment terms that fit most borrowers’ needs.
However, one needs to be professionally employed and possess a great credit score to qualify for loan refinancing from this company. The company has offered student loan refinancing services for a long time.
Here is a detailed review to help you gauge the company’s legitimate services to decide whether to choose it as your refinancing solution.
Laurel Road is the best solution to refinance your student loan. The company offers flexible repayment options, long repayment terms, and competitive interest rates. The graduates and professional students learning in the eligible schools are advised to take advantage of the company's solid offers to ensure they greatly save on money.
The company offers loans that can help supplement the federal financial aid given to students. The loans can also be a perfect alternative for graduates unwilling to adopt federal school loans.
However, not everyone is eligible to get loans or student loan refinance solutions from this company.
- Multiple Repayment Options And Long Terms
- The company offers different loan terms and repayment options that can meet the career and budgets of many clients. The company's loan payment options include interest-only repayment and full deferment for students still in school.
- Borrowers can also choose from loan terms ranging from five to twenty years.
- Potential For Low-Interest Rates
- Those seeking loans through this company save money big time. The company offers competitive rates, as low as 3.74%, for fixed-rate loans. The rates include an auto pay discount of 0.25% and can only reach a maximum of 6.55% compared to a 7.08% rate for graduate school federal loans.
- Employment And Auto Pay Discounts
- The company presents clients with two interest rate discounts that borrowers can qualify for to lower their rates by 0.5%. Signing up for automatic payments gives you a 0.5% discount. The company also offers a 0.5% discount for graduates who secure employment.
- Soft Credit Checks That Don't Hurt C
- Limited To Specific Students And Professional Programs
- The company limits its loans to specific students. Undergraduate students are not qualified to get loans. Graduate and professional students in specific programs like law, medicine, and engineering are eligible. The loans are also awarded to those in eligible schools only.
- Strict Process For Co-Signers Releases
- The company does not make it mandatory to have a co-signer for you to get a loan. However, any borrower with a bad credit score or unstable employment will need to have a co-signer to increase their chance of qualifying for a loan. The co-signer will be responsible and reliable for the borrower's loan.
- The downside is that the only way the co-signer gets released from this reliability is if the borrower makes regular and timely monthly payments for thirty-six months.
- Other cons about this company include:
- The company may not offer the lowest rate discounts because it exists in a very competitive marketplace.
- Borrowers need t
Laurel Road is a digital lending and banking platform that has been supporting the financial well-being of students, healthcare, and business professionals since 2013. This online lending platform has refinanced over $9 billion in private school and federal loans.
In 2019, this student loan refinancing company was acquired by KeyBank, a member FDIC and among the nation’s largest financial service companies. This key bank student loans refinancer has since then expanded its service and products beyond student loan refinancing.
This financial institution offers mortgages, personal loans, and private loans. The bank products offered by the company include cashback credit cards and tailored saving accounts. The company is available in all fifty states and is among those offering competitive lending services.
The keybank student loan institution remains competitive by offering flexible terms for its student loan refinances and low-interest rates. Among the best products the company provides is the refinancing option- parentPlus, which gives parents lower refinancing rates and allows them to refinance loans into their child’s name. However, this is available for loan seekers who meet the set standards.
- Low Fixed Rates
This company is linked to a bank that gives it the financial muscles to top the lending list of companies. This Keybank student loans refinancing institution has better access to capital enabling it to offer some of the lowest refinancing rates of fixed student loans. This lending company provides the best rates to clients seeking longer repayment terms of, say, ten to twenty years.
Key bank laurel road offers a one-time loan of up to $300,000 to allow you to refinance all your student debts.
- Co-Signers Allowed
Many loan refinancing companies don’t allow for co-signers. However, this key bank student loans refinancer offers clients an opportunity to have a co-signer, making life quite easier. One will need a co-signer in case they lack good credit. The company will allow you to bring any close friend or relative with whom you will co-sign the loan.
Co-signing a loan with someone else guarantees lower rates for those with poor credit. However, it is worth noting that the co-signer will be entirely responsible and liable to pay your loan should you default. To free your co-signer from the liability of paying your loan, the company will expect you to make constant and regular payments for three years (thirty-six months).
- Economic Hardship Support
The company offers economic hardship support. This feature puts into consideration all the unforeseen circumstances that might deter anyone from repaying their loan. The company allows a repayment delay of three-month increments for anyone who loses their job while refinancing their student loan.
The keybank refinance institution can also cancel your loan should you become disabled while refinancing your loan. However, this debt forgiveness is for those with an acquired disability that does not allow them to work anymore.
- Excellent Borrower Protection
The company’s excellent borrower protection features allow graduates to focus on building and investing in their careers while clearing their credit of debt. The company upholds the federal grace period programs for freshly graduated students, lenders still in school, and graduates who have just accepted a job offer.
The excellent borrower protection feature grants grace to lenders, protecting them from financial collapse.
Plans And Prices
Rates And Terms
The company offers two major rates for every repayment term: variable and fixed.
- Variable Rate: 1.8% to 6.20 ARP
- Fixed Rate: 3.49% to 6.30% APR
The company enables the refinancing of both student loans and parent plus loans. Borrowers are allowed to choose a preferred repayment term that suits them well and an interest rate loan of either fixed or variable. Expect maximum interest rates ranging from 9-10% from the variable interest rate loans. You must, however, refinance a minimum of $5,000.
During the application process for student loan refinancing from laurel loans, you will be granted an opportunity to open and link a savings account. The saving account will earn you a discounted interest rate for the student loan instead of traditional interests.
The rate of discount you get depends on the amount of money you deposit in your savings account. The rate discounted could be as much as 0.55%. This is an overview of the expected refinancing discount against the saving balances:
- $0- $999 saving balance
This earns you a two-month intro discount of 0.25% and a refinancing discount of 0.00%
- $1,000- $4,999 saving balance
This earns you a two-month intro discount of 0.25% and a refinancing discount of 0.15%
- $5,000- $9,999 saving balance
This earns you a two-month intro discount of 0.25% and a refinancing discount of 0.25%
- $10,000- $14,999 saving balance
This earns you a two-month intro discount of 0.25% and a refinancing discount of 0.35%
- $15,000- $19,999 saving balance
This earns you a two-month intro discount of 0.25% and a refinancing discount of 0.45%
- $20,000 and above saving balance
This earns you a two-month intro discount of 0.25% and a refinancing discount of 0.55%
- Five-Year Term
This term plan offers a Fixed APR with discounts of 3.24%- 5.10% and a variable APR with a discount of 1.64%- 5.00%.
- Seven-Year Term
This term plan offers a Fixed APR with discounts of 4.90%- 5.30% and a Variable APR discount of 4.80%-5.20%.
- Ten-Year Term
This term plan offers a Fixed APR with discounts of 5.10%- 5.60% and a variable APR with a discount of 5.00%- 5.50%.
- 15-Year Term
This term plan offers a Fixed APR with discounts of 5.30%- 6.00% and a variable APR with a discount of 5.20%- 5.90%.
- 20-Year Term
This term plan offers a Fixed APR with discounts of 5.50%- 6.05% and a variable APR with a discount of 5.40%- 5.95%.
The following mortgage rates apply to a loan size of $350,000. This is for a single-family home in CA- primary occupancy, no cash outs, 45-day rate lock period, and a credit score higher than 720. However, the rates could vary depending on others factors whenever you make your application.
- 30-Year Fixed Loan Term
This term plan has a rate of 5.50% and a 5.563% ARP. Monthly payment of $1,987.26 with credit cost of $2,422.00.
- 20-Year Fixed Loan Term
This term plan has a rate of 5.125% and a 5.174% ARP. Monthly payment of $2,334.08 with credit cost of $1,432.00.
- 15-Year Fixed Loan Term
This term plan has a rate of 4.375% and a 4.933% ARP. Monthly payment of $2,655.17 with credit cost of $12,754.00.
- 6/6 Months ARM Loan Term
This term plan has a rate of 4.625% and a 4.181% ARP. Monthly payment of $1,799.49/ $1,709.39 with credit cost of $1,439.00.
- 7/6 Month ARM Loan Term
This term plan has a rate of 4.50% and a 4.229% ARP. Monthly payment of $1,773.40/ $1,710.44 with credit cost of $2,265.00.
Any new member who uses the company’s student loan cashback SM card and spends $3,000 in the first 90 days earns a cashback reward of $300.
Frequently Asked Questions
Is This Financial Institution Legit?
Yes! The company is a reputable and competitive player in the loan refinancing market. This lender company is known to offer loan borrowers and students legitimate ways to settle their loans while saving thousands of dollars in paying interest costs.
The company is known to offer sizable loans to lenders who wish to settle their student loans at lower rates and for a longer period.
Does Checking Interest Rates Hurt Your Credit Score?
Not really! This lending company performs soft credit checks to its lenders using simple details like address, name, and date of birth. Soft credit checks have zero effects on clients’ credit scores. The company will often perform several soft checks without hurting your credit score.
However, after getting pre-qualified and one decides to proceed with a full application, you will qualify for a hard check. Hard checks are performed by all lenders and can impact your credit score.
Who Owns Laurel Road?
Darien Rowayton Bank was the previous owner of this financial institution. In 2019, KeyBank acquired ownership of the company at a non-disclosed amount.
Can I Refinance My Existing Laurel Loan?
Yes! The company’s student loans have no fees. This allows you to use the company to refinance your existing student loans or opt for another student loan lender to refinance with.
Is Laurel Loan A Private Loan?
The company also offers a private student loan. However, this refinancing product is considered a student loan for tax purposes.
Does Laurel Loan Have Eligibility Requirements With Respect To Schools?
Any working professional who graduated from any Title IV accredited institution is eligible for a student refinancing loan. Requirements are any Woking individual with a four-year graduate degree from these institutions.
Does This Keybank Student Loan Refinancer Charge Late Fees?
Yes! The company has a fee penalty for late payments. However, the charges for the late payments are not disclosed on the company’s website.
Does This Money- Lending Institution Have A Minimum Credit Score Requirement?
Yes! The company requires a credit score of not less than 660. This company does not lock out borrowers based on their minimum income. However, for anyone to qualify for a refinancing loan, they must have less than 43 percent of the debt-to-income ratio.
This means borrowers should not have a monthly loan payment exceeding 43% of their non-taxed income.
Can You Refinance A Parent Plus Loan With This Keybank lending institution?
Yes! The company can refinance a parent Plus loan. The company also allows children to assume the debts of their parents. The company can refinance the loan into the child’s name who meets the lending requirements.
Is The Company Right For You?
Are you a student or parent with a decent income, solid employment, and a good-great credit score? Laurel Road is the best partner to solve your refinancing solutions.
The company does not disclose its underwriting criteria. However, what is clear about their policy is that the company only offers refinancing solutions to employed professionals. The employment at professional-level capacity criteria directly disqualifies entrepreneurs and self-employed individuals from receiving refinancing services.
The company also has additional requirements to be met alongside the underwriting criteria. One must be a permanent resident or citizen of the U.S., be in your final term of education, and be a student in any Title IV accredited schools.