+ LR-Icons

Coronavirus (COVID-19) Response

Last Updated

May 07, 2020

At Laurel Road we understand the uncertainty and questions that surround the spread of the Coronavirus. Our focus is the safety of our borrowers, prospects and staff. We continue to work to understand the details of the federal aid program and its impact on student loans. We will be sharing information with you as we learn the facts – in the next few days and beyond. For existing student loan holders, if you’re wondering what to do in the meantime, you should continue to make payments as you normally would.

For any immediate issues about your student loan refinance application, please contact Laurel Road.

Email: studentloans@laurelroad.com
Phone: (855) 245-0989
TTY: Dial 711

Please note: Due to the ongoing COVID-19 pandemic, we are experiencing very high call volumes. To ensure the safety of our employees while servicing our customers, our call centers are temporarily operating on a limited schedule. Live phone agents and live chat agents are available Monday through Friday, from 8:30am to 5:30pm EST. Live chat agents are also available on Saturdays from 8:30am to 5:30pm EST.

If you have questions about any of our products, please visit laurelroad.com or email us at studentloans@laurelroad.com.

For customers with questions about your existing loan, you can avoid long hold times by emailing us at edprocessing@laurelroad.com, or contacting us via the messages tab on your account Dashboard.

For any immediate issues about your Laurel Road loan serviced by Mohela, please contact Mohela.

Phone: (877) 292-6845

Beware of Scams During COVID-19

Financial scammers often take advantage of consumers during times of crisis and/or economic uncertainty. Please see our recent blog post for tips on what to look out for to protect yourself from these risks.

Forbearance for those impacted by COVID-19

If you are experiencing an impact to your income as a result of COVID-19, you can request a forbearance of 3 monthly payments. With this COVID-19 forbearance option:

  • Your loan’s maturity date will be extended by roughly the  number of months of the forbearance period.
  • Interest will still accrue but it will not be added to the principal balance of your loan. Instead, your first payments after your forbearance will be applied first to this unpaid interest.  This may result in you paying more interest over the life of your loan and your final payment may be larger than your regular monthly payment. (Note: If the accrued interest is not paid and you use a different type of forbearance or deferment in the future, the interest could be capitalized at that future time).
  • The COVID-19 forbearance will not count against your allowance for economic hardship forbearance under the terms of your loan agreement.

If you continue to experience financial hardship beyond this initial forbearance of 3 monthly payments, you have the option to request an additional 3-month payment forbearance.

To inquire about this forbearance please contact MOHELA at 1-877-292-6845 (TTY: Dial 711).

Understanding the Differences Between Federal And Private Loans

To help you understand the implications of refinancing federal loans to private student loans, we’ve created the following table highlighting what would be different, and what would remain the same.

Federal Student Loan Laurel Road Refinanced Loan
Repayment Terms Federal loan borrowers choose between repayment plans that offer loan terms from 10 years up to 30 years in length. Borrowers who refinance a federal student loan into a private loan with Laurel Road may be eligible for loan terms from 5 years up to 20 years in length.*
Interest Rate Standardized interest rate New interest rate based on your creditworthiness as a borrower. May be lower than rate stated on Federal Loans.
Income Driven Repayment Available Not Available
Public Service Loan Forgiveness Available Not Available
Length of Forbearance Most Federal student loans’ discretionary forbearance allows for borrowers to forgo payments for up to 36 months over the life of the loan. Laurel Road allows for economic hardship forbearance for up to 12 months over the life of the loan.
In-school Deferment Federal loans allow borrowers to defer payments should they return to school as long as they’re at least a half-time student, and with certain subsidized loans, the U.S. Government may pay the interest during the deferment period. Laurel Road customers returning to school may be eligible for up to 12-month forbearance of payments for economic hardship. Interest will continue to accrue during such period.
Default Timeline Federal student loans enter default after 270 days of missed payments. Laurel Road student loans are considered in default after 90 days of missed payments.

CARES Act Student Loan Relief

Available Those refinancing from a Federal loan to a Private loan with Laurel Road will lose federal benefits including the ability to defer payments and incur no interest through September 30, 2020 as offered under the CARES Act.
Grace Period Federal loan grace periods extend 6 months beyond your graduation date. Laurel Road honors a 6-month grace period beyond your graduation date.
Discharged in the event of permanent disability or death The Federal government will discharge the loan – for both borrower and cosigner – in the event of permanent disability or death of the borrower. Laurel Road will also discharge the loan – for both borrower and cosigner – in the event of permanent disability or death of the borrower.
Eligible for Student Loan Interest Tax deduction Student loan interest is tax deductible for those who qualify based on their income levels. Consult a tax advisor for more information. Student loan interest remains tax deductible for those who qualify based on their income levels. Consult a tax advisor for more information.
Credit report categorization Federal loans are categorized as “student loans” on your credit report. Private loans from Laurel Road are also categorized as a “student loan” on your credit report, just as a Federal loan would be.

This information is an overview of the various programs. Please consult studentaid.gov/h/manage-loans for the details about your federal loans and the any benefits being offered. For more information regarding Laurel Road’s loan programs and terms visit laurelroad.com/faq.

Additional Resources

Disclaimers

*For repayment examples go to laurelroad.com/student.

Frequently Asked Questions

Coronavirus (COVID-19) Response

  • GENERAL

    My state temporarily suspended debt collections in response to COVID-19. Does this apply to my student loans?

    Some states have been issuing regulations that halt the collection of debts, including student debts. In many cases these regulations impact past due loans or loans owed directly to the state. However, requirements vary across each state and you should check with your state for specifics. If you have a loan with Laurel Road these regulations do not eliminate the debt. If you are having difficulty repaying your loan due to COVID-19, please contact MOHELA at 1-877-292-6845 (TYY: Dial 711) to inquire about forbearance and hardship relief.

  • GENERAL

    Will Laurel Road be offering forbearance for those impacted by COVID-19?

    If you are experiencing an impact to your income as a result of COVID-19, you can request a forbearance of 3 monthly payments. With this COVID-19 forbearance option:

    • Your loan’s maturity date will be extended by roughly the  number of months of the forbearance period.
    • Interest will still accrue but it will not be added to the principal balance of your loan. Instead, your first payments after your forbearance will be applied first to this unpaid interest.  This may result in you paying more interest over the life of your loan and your final payment may be larger than your regular monthly payment. (Note: If the accrued interest is not paid and you use a different type of forbearance or deferment in the future, the interest could be capitalized at that future time).
    • The COVID-19 forbearance will not count against your allowance for economic hardship forbearance under the terms of your loan agreement.

    To inquire about this forbearance please contact MOHELA at 1-877-292-6845 (TTY: Dial 711).

  • GENERAL

    The federal government passed the CARES Act on Friday, March 27th including provisions to delay student loan payments for 6 months. How does that impact my student loan?

    The federal COVID-19 response stimulus bill passed on March 27th, known as the CARES Act, delays student loan payments for six months until September 30, 2020. If you have previously refinanced your federal student loan with Laurel Road, you do not qualify for this federal program under the CARES Act.

    If you are an existing Laurel Road customer and are experiencing an impact to your income as a result of COVID-19, you may be eligible for a forbearance or an extension of your existing one. To inquire about forbearance and hardship due to COVID-19, please contact MOHELA at 1-877-292-6845 (TYY: Dial 711).

  • GENERAL

    Will Laurel Road lower rates with the recent federal rate cut?

    Our customers want the best rates and Laurel Road is committed to providing the most competitive rates we can offer. The Fed’s interest rate is just one of several factors used to determine interest rates. Other factors can also include credit quality of applicants and the projected probability of paying off their loans. This is a time of some uncertainty and we appreciate your understanding during this time. We can assure you that we are closely monitoring market conditions to ensure that we are offering the most competitive rates possible.

Disclaimers