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.
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.
For customers with questions about your existing loan, you can avoid long hold times by emailing us at email@example.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.
- Repayment Plans, Finaid.org
- Total and Permanent Disability Discharge, StudentAid.gov
- Topic No. 456 Student Loan Interest Deduction, Internal Revenue Service
*For repayment examples go to laurelroad.com/student.