Frequently Asked Questions

  • Student Loans
    • Who is eligible to refinance their student loan with Laurel Road?

      U.S. citizens or permanent residents with a valid I-551 card are eligible to refinance student debts with Laurel Road. Laurel Road refinances student loans for working professionals with four-year undergraduate and/or graduate degrees from Title IV accredited institutions. We also refinance student loans for parents who took out debt to finance their child’s education. To be eligible for the Parent Student Loan Refinancing Program, the child must have graduated. Loan eligibility depends on lending criteria, such as your credit profile, monthly income, and monthly debt payments.

    • Can Laurel Road refinance my student loan if I have already refinanced with another lender?

      Yes – Laurel Road can refinance your loan even if you have already refinanced it with another lender.

    • What is the difference between consolidation and refinancing?

      In student loan consolidation, the original lender(s) remain the same. In these instances, two or more student loans are combined into one loan with one interest rate and one loan servicer. Most student loan consolidations involve federal loans. When a borrower consolidates their federal student loans into a federal Direct Consolidation Loan, the consolidated loan’s rate is a weighted average of the original loans’ rates. Student loan consolidation ensures your loan payments are streamlined into one payment in order to alleviate the burden of having to pay multiple lenders on a monthly basis.

      In most student loan refinancing cases, the lender changes; two or more student loans are combined into one loan with a new lender at a lower interest rate. Borrowers find that this allows them to pay less interest over the life of the loan, providing them with valuable savings.

    • How does Laurel Road offer such low rates?

      Laurel Road recognizes that, as a working professional who has successfully graduated, you have earned the opportunity to receive lower student loan rates. Working professionals have proven their ability to pay back their student loans, which allows us to offer you the best possible rates.

    • What is the earliest point at which I can refinance my loan?

      Laurel Road can refinance your student loans as early as your final semester of school, so long as you have a job offer and plan to begin working directly after graduation. For law students, you must have passed the bar examination to refinance with Laurel Road. For all professionals, you do not need to wait until the end of your grace or in-school deferment period, as Laurel Road will honor any existing grace or in-school deferment periods.

    • Does Laurel Road charge any fees during the student loan refinancing process?

      Absolutely not! Unlike many lenders, we do not have application fees, origination fees, or disbursement fees – nor do we have prepayment penalties.

    • Do I need a cosigner on my loan?

      You do not need a cosigner, but a cosigner may improve your chances of being approved for a Laurel Road Loan if you do not meet our credit criteria on your own.

    • Can I refinance if my student loan is in a grace or in-school deferment period?

      Yes, Laurel Road will honor your existing grace or in-school deferment periods set up by your previous lenders. If you choose to refinance your student loan during these periods, your payments with Laurel Road will not commence until the grace period has expired. When you apply with Laurel Road, please indicate the expiration date of your grace period.

    • What documents do I need to complete the student loan refinance application?

      For most of our loans, you only need three types of documents – photo ID, two recent pay stubs or other proof of income, and your current student loan payoff statements.

    • Does Laurel Road offer a discount for setting up automatic payments?

      Yes. If you set up automatic loan payments from a bank account via electronic fund transfer (EFT), Laurel Road will lower your interest rate by 0.25%. That lower interest rate will continue as long as you make payments via EFT.

    • Should I choose a variable rate or a fixed rate on my student loan?

      It depends on what you are looking for. While the variable rate option offers lower rates and monthly payments initially, you risk paying a higher rate than the fixed rate option in the event that short term interest rates rise. The variable rate option has a rate cap, and you may be comfortable with this risk if you believe you will pay off the loan early or make enough money in the future to cover potentially higher payments. Fixed rates start out higher than variable rates, but interest rates do not change over the life of the loan. You may also want to consider a hybrid approach – a partial variable rate and partial fixed rate – to mitigate interest rate risk. To discuss your specific situation and/or the tradeoffs involved with these options, please contact our Customer Service team.

    • What is 3-Month LIBOR?

      LIBOR, or London Interbank Offered Rate, is a benchmark index used to calculate interest rates on variable rate loans. This index is published daily in publicly available resources such as The Wall Street Journal’s Money Rates section. Laurel Road’s variable rate is calculated every 3 months by adding a fixed margin to the average of 3-Month LIBOR over a 91-day period. The variable interest rate and monthly payment on a Laurel Road variable rate loan will increase or decrease as the 3-Month LIBOR index increases or decreases.

    • Does Laurel Road offer forbearance in the event that I lose my job and become unemployed?

      Yes, borrowers may apply for forbearance if they experience economic hardship. In these instances you may be eligible for full or partial forbearance payments for one or more 3-month periods, not to exceed 12 months in the aggregate during the term of your loan. Laurel Road will review all forbearance requests and grant such requests for qualified hardship reasons, such as involuntary job loss or unpaid maternity leave.

    • Can I refinance a federal or private parent loan that I took out to finance my child’s education?

      Yes. With Laurel Road, you have the option to refinance student debt that you took out on behalf of your child once your child has graduated. If you choose to keep the loan in your name, Laurel Road will underwrite your loan according to your eligibility. If you choose to refinance the loan in your child’s name, the loan will be underwritten based on your child’s eligibility.

    • Are my Laurel Road loans considered student loans for tax purposes?

      Yes, student loans that Laurel Road has refinanced are considered student loans for federal and state tax consideration. Please note that you may or may not be eligible for interest deduction depending on your individual tax situation. Please consult your tax advisor for more information.

    • Does Laurel Road refinance student loans for medical or dental residents?

      Yes, Laurel Road refinances student debt for doctors or dentists while they are in residency and before they begin practicing as attending physicians. Residents can defer making full payments on their loan up to 6 months after their residency and fellowships. Total loan term including residency, fellowship and grace period must not exceed 20 years. The deferment period for residency, fellowship, and grace period must be approved and disclosed at the time of application – you will not be able to extend the term of the loan after it is disbursed. If fellowship is determined after your loan is closed, you may be able to refinance with Laurel Road to take advantage of reduced payments during fellowship.

    • If I am a medical or dental resident, does my accrued interest capitalize while paying $100/month during residency?

      No. Residents who accrue interest while paying $100 per month on their student loan will see their interest capitalize at the end of the reduced payment period and only when they start on a standard repayment term.

    • Does Laurel Road refinance both federal and private student loans?

      Yes, Laurel Road refinances both federal and private student loans.

    • Does Laurel Road have any geographic limitations for their lending programs?

      Laurel Road currently refinances student loans in all 50 states, Washington, D.C., and Puerto Rico.

    • Why should I refinance my student loan?

      Refinancing student loans can add up to significant savings. By refinancing multiple loans into one loan with a lower rate, you will accrue less interest over the life of the loan, saving you money on a monthly basis and over the course of the loan. On average, Laurel Road customers will save $20,000+ over the life of their student loan.

    • When is the right time to refinance?

      It’s easy to check if you are eligible for a lower rate. Find the loan that is right for you on our homepage and within a few minutes, we will be able to give you a rate you are eligible for. If this rate is lower than what you are currently paying, you should consider refinancing immediately. The sooner you refinance to a lower rate, the sooner you start saving.

    • What is the minimum and maximum amount I can refinance with Laurel Road?

      The minimum loan size that Laurel Road will refinance is $5,000. We do not have a maximum.

    • Will applying for a loan with Laurel Road impact my credit score?

      Laurel Road will perform a soft credit pull at the start of the application process to provide you with conditional rates and loan terms; this has no impact on your credit score. If you choose to move forward with your loan application, Laurel Road will make a hard credit inquiry so that we may view your full credit report and make final rate offers. These hard credit inquiries are common and necessary to obtain any loan, but do show up on your credit report.

    • How do I add a cosigner to my Laurel Road loan?

      You will have an opportunity to add a cosigner to your loan during the application process. The cosigner will receive an email from Laurel Road inviting them to upload the necessary documents via our secure online dashboard.

    • How does the student loan refinancing process work?

      It’s actually pretty simple – the entire application is completed online, and you can receive pre-approved rates in as little as two minutes.

      1. Fill out a short application with basic information about your loan, education, and employment. Once you authorize a soft credit pull and assuming you have provided enough information, we will provide you with conditional interest rates.
      2. Upload your supporting documents to Laurel Road’s secure dashboard to complete your online application. Once we have received your application, we will underwrite your loan and provide you with your final rates and loan terms.
      3. Select your loan type and term, and e-sign all necessary disclosures and your promissory note in the Laurel Road dashboard.

      Laurel Road will pay off your student loans to your current lenders and provide you with instructions to set up the servicing of your new loan. Your first payment to Laurel Road will be due one month from your disbursement date.

    • Do I need to refinance all of my student loans? Can I refinance some student loans but not others?

      Of course! You can choose to refinance all of your student loans or just certain loans. When you apply with Laurel Road, you will have the opportunity to indicate the amount of student debt you would like to refinance and – if you have more than one loan – exactly which student loans to refinance.

    • Can I pick a term besides 5, 7, 10, 15, or 20 years?

      Yes, Laurel Road can offer you any term below 20 years, subject to our underwriting criteria. Apply online for your loan as a first step and then contact us to let us know which term you would like.

    • What is the maximum rate I could pay on a variable rate loan (i.e. the rate cap)?

      Borrowers who take out a variable loan with a term of 5 to 10 years will have a maximum interest rate of 9%. Borrowers who take out a variable loan over 10 years will have a maximum interest rate of 10%.

    • Can I still take advantage of federal benefits such as income driven repayment or student loan forgiveness after I refinance my federal loans with Laurel Road?

      If you are refinancing any federal student loans with Laurel Road, you will no longer be able to take advantage of federal income driven repayment programs or student loan forgiveness, including but not limited to: Income Based Repayment (IBR), Pay As You Earn (PAYE) or Revised Pay As You Earn (REPAYE), and Public Service Loan Forgiveness (PSLF). For more information about the benefits of these federal programs and other federal student loan programs, please visit https://studentloans.gov. If you are choosing between a federal repayment program and private student loan refinancing, check out our free Student Loan Assessment Tool for a snapshot of what you can expect to pay and save under each program.

    • Does Laurel Road forgive my loan in the event of death or permanent disability?

      Yes. Laurel Road will forgive the remaining student loan balance in the event of borrower death, and some or all of the remaining student loan balance if the borrower demonstrates a significant unanticipated permanent reduction in his or her income due to permanent disability. Laurel Road began to offer this provision in the spring of 2015 and only loans originated after that point are eligible.

    • Will I hurt my credit score if I apply to multiple student loan refinance lenders at the same time?

      According to the Fair Isaac Corporation, multiple credit inquiries from different student lenders in a short period of time will be counted as one inquiry only, which mitigates the impact on your credit score. For more information, please visit http://www.myfico.com/credit-education/credit-checks/credit-report-inquiries/.

    • What is a payoff statement? How do I get one?

      A payoff statement is a document from your current lender that tells Laurel Road exactly how much we need to pay them in order to pay off your student loan with that lender. This is different from the monthly statement you receive and is only generated when the borrower requests it from the lender either online or over the phone. Each lender has its own process for generating payoff statements and providing them to borrowers. Laurel Road requires the payoff statement to finalize the loan for you so that we can pay off your current lenders and then become your new lender. Step by step directions explaining how to generate payoff statements with select lenders are available within the Laurel Road dashboard, which you can access after you begin your application.

    • If I am a medical or dental resident, how soon can I refinance my student loan with Laurel Road?

      Medical or Dental Residents can refinance their student loan(s) with Laurel Road as soon as they’ve matched to a residency program.

  • Personal Loans
    • Who is eligible for a Laurel Road Personal Loan?

      All U.S. Citizens or permanent residents with a valid I-551 card are eligible to apply for a Laurel Road Personal Loan. Loan eligibility also depends on your credit history and financial profile.

    • Am I a good candidate for a Laurel Road Personal Loan?

      You must exhibit a strong credit and financial profile to be eligible for a personal loan. Laurel Road will perform a soft credit pull to provide you with conditional rates, so you can check your eligibility with no impact to your credit score.

    • How is Laurel Road able to offer such low rates?

      Laurel Road recognizes that the best borrowers are those that carry lower risk. We have a team of financial experts that work to assess the rates we can offer based on risk criteria and since we work with credit worthy borrowers, we are able to offer favorable rates.

    • Is there a minimum or maximum amount that I can borrower with a Laurel Road Personal Loan?

      The minimum loan amount is $1,000. For auto purchases, business ventures, green loans, moving expenses, and miscellaneous purposes, the maximum loan size is $35,000. For debt consolidation, major purchases, and home improvements, the maximum loan amount is $45,000. Additional documentation may be required to be eligible for a loan in excess of $35,000.

      If you are a physician or dentist in practice or within 12 months of completing training with a signed contract to practice, the maximum loan amount is $80,000. If you are a physician or dentist still in training without a contract to practice, the maximum loan amount is based on your training year as follows: Match Letter or PG1 is $30,000, PG2 is $35,000, PG3 is $40,000, PG4+ or Fellow is $45,000.

    • Is the Laurel Road Personal Loan secured or unsecured?

      Our personal loans are unsecured.

    • Will applying for a personal loan affect my credit?

      Laurel Road will perform a soft credit pull at the start of the application process to provide you with conditional rates and loan terms; this has no impact on your credit score. If you choose to move forward with your loan application, Laurel Road will make a hard credit inquiry so that we may view your full credit report and make final rate offers. These hard credit inquiries are common and necessary to obtain any loan, but do show up on your credit report.

    • Can I pick a term besides 3, 4, or 5 years?

      No; at this time, the available loan terms are 3, 4, or 5 years.

    • Does Laurel Road offer a discount for setting up automatic payments?

      Yes. If you set up automatic loan payments from a bank account via electronic fund transfer (EFT), Laurel Road will lower your interest rate by 0.25%. That lower interest rate will continue as long as you make payments via EFT.

    • Can I change my monthly payment date?

      After the loan is disbursed, it is not possible to change your payment date; however, we do allow a payment grace period of up to 15 days after your due date.

    • What can I use a Laurel Road Personal Loan for?

      A Laurel Road Personal Loan can be used for almost any purpose except for education-related expenses. Some examples include consolidation of high rate debt, making home improvements, or financing major family purchases.

    • What is the personal loan application process like?

      It’s actually pretty simple – the entire application is completed online, and you can receive pre-approved rates in as little as two minutes.

      1. Fill out a short application with basic information including information about your employment and history. Once you authorize a soft credit pull and assuming you have provided enough information, we will provide you with conditional interest rates.
      2. Upload your supporting documents to Laurel Road’s secure dashboard to complete your online application. Once we have received your application, we will underwrite your loan and provide you with your final rates and loan terms.
      3. Select your loan type and term; you can e-sign all necessary disclosures and the promissory note in the Laurel Road dashboard.

      The loan will be disbursed on the date shown in your final Truth in Lending statement.

    • Does Laurel Road charge any fees during the application or loan closing process?

      Absolutely not! Unlike many lenders, we do not have application fees, origination fees, or disbursement fees – nor do we have prepayment penalties.

    • Can Laurel Road finance personal loans in any state?

      Yes, Laurel Road is able to finance loans in all 50 states, Washington, D.C., and Puerto Rico.

    • Do I need a cosigner?

      No. However, if you do not meet Laurel Road’s underwriting criteria on your own, a cosigner can be used to improve your chances of approval.

    • How long does it take to receive my Laurel Road loan?

      Once your personal loan is approved and a disbursement is scheduled, we can initiate a transfer to your bank account which will take approximately 24 hours to receive funds.

    • When will my first payment be due?

      Your first payment will be due 1 month from the date of your disbursement.

    • If I have already accepted a different loan, can I switch to Laurel Road for a lower rate?

      Yes, and it is easy to do. First, apply for a Laurel Road loan. Once you are approved for your loan, you can use the funded loan to pay off your original personal loan. Be sure to check for any fees that may apply for early repayment on your original loan.

    • Can I refinance my existing Laurel Road Personal Loan?

      Sure. Please make it clear in your application of your intent to refinance your existing Laurel Road personal loan, and we will be happy to accommodate your request.

  • Student and Personal Loan Referral Program
    • Who can participate in Laurel Road’s Referral Program?

      Anyone can refer friends or family members to Laurel Road for student and personal loans. You do not have to be a Laurel Road customer in order to refer someone to Laurel Road and be eligible for our referral incentive. In cases where multiple referrals may be equated to one potential borrower, only one referring person will be eligible for the referral incentive. Under the Student Loan Referral Program, referred borrowers are not eligible for other promotional offers.

    • What information must I provide to obtain my referral payment?

      In order to issue referral payments, Laurel Road needs your social security number and your mailing address if you are receiving payment by check. Laurel Road will report to the IRS the value of any Referral Program payments. Any applicable taxes are the responsibility of the applicant. When you participate in this program, you will be given the opportunity to provide this information to us so that we can issue your payments seamlessly.

  • Laurel Road and Darien Rowayton Bank
    • How is Laurel Road related to Darien Rowayton Bank?

      Laurel Road is a trade name licensed by Darien Rowayton Bank (“DRB”), a Connecticut banking corporation. Darien Rowayton Bank conducts online business activities using the Laurel Road trade name in all 50 states, Washington, D.C. and Puerto Rico. Darien Rowayton Bank conducts local banking activities in the name of Darien Rowayton Bank in the state of Connecticut. Lending services are provided by Darien Rowayton Bank. You do not have to be an existing customer of Darien Rowayton Bank to qualify for a Laurel Road loan.