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Graduate-School Loans

Loan Terms

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Payments

  • How will my payments be applied to my Laurel Road Loan?
    Standard Payment Application: Payment is applied first toward any outstanding late fees, next to outstanding accrued interest, then and finally to the principal balance. Partial Payments: Payments less than the required monthly installment amount are applied using the standard payment application. Payments less than the required monthly amount may cause your account to become delinquent. We may report information about your account, late payments, missed payments, or loan defaults to consumer reporting agencies.
  • Can I prepay my loan in full or partially without penalty?
    Yes. If you choose to prepay the loan or pay more than the minimum monthly payment amount, you will not incur any penalty for doing so. Additional payments are applied to your principal balance after all outstanding interest is satisfied.
  • What are my repayment options? Which one should I choose?
    Laurel Road offers a couple of different payment options while in school: Full deferment: You can defer your interest payments while enrolled in school, in addition to the six-month grace period following graduation or termination of enrollment. Afterward, unpaid accrued interest is added to your loan balance and you will begin making full principal and interest payments. Flat $50 payments*: You can make monthly payments of $50 beginning approximately one month after the final loan disbursement date up until completion of the six-month grace period. Afterward, unpaid accrued interest is added to your loan balance and you will begin making full principal and interest payments. Interest-only payment*: You can choose to pay only the interest each month while you’re in the deferment period. This is a great way to make a dent in your interest while in school, without having to make the full repayment. Payments begin 1 month after each final loan disbursement date up until completion of the six-month grace period. Afterward, you will begin making full principal and interest payments. Immediate Repayment payment*: You can pay the full principal and interest payment every month while you’re in school. This plan is for students who want to begin paying down their student loans while enrolled in school. * When selecting a flat, interest-only, or an immediate repayment option, payment is required only after the final disbursement for loans with multiple disbursements. Interest will accrue between disbursements and will be added to the principal amount of your loan at the beginning of the full repayment period.
  • When do I need to start making monthly payments on my loans?
    If you choose to make in school payments (e.g., flat payments, interest only, immediate repayment) then your first payment will be due about one month after your final disbursement (i.e., the last semester covered by your loan). If you select either the flat or interest only payment options your first payment of both principal and interest will be due about a month after your grace period ends. If you choose to defer payments while in school, then your first payment will be due about a month after your grace period ends. For more information, you should review your final closing documents for a detailed overview of your repayment terms.
  • What happens if I cannot pay my loan?
    If you are eligible, you can apply for loan forbearance. This program is designed to protect you in the event you encounter economic hardship. Laurel Road is committed to working with you to find the best solution. Please refer to the question below regarding forbearance for more details.
  • What is the AutoPay discount? How can I get it?
    Once you begin making required monthly payments, if you make your monthly payments automatically from a bank account, your rate will be decreased by 0.25%. If however, you stop making automatic payments or if Laurel Road cancels you automatic payments due to returned payment, delinquency, or forbearance, or otherwise, then your rates will go back to their regular levels. You must be enrolled in monthly payments to receive this discount. Rates advertised on this site include the 0.25% Autopay discount. Discount not available during periods of deferment when no payment is required. In your welcome letter, you will receive instructions on how to set up automatic payments.
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Grace Period

  • Does interest accrue during a grace period?
    Yes. There are several payment options that you can choose from, including in-school deferment. Each deferment option includes a six-month grace period following graduation or termination of enrollment. Any interest accrued during any period of deferment or grace will be added to the principal balance at the beginning of the full repayment period.
  • Is there a grace period? When does it apply?
    There will be a six (6) month grace period which begins at the end of your In-school period. The grace period is triggered by the student either a) dropping below half-time attendance, b) withdrawing from the eligible institution, or c) graduating. The Repayment Term will begin within thirty (30) days of the end of the grace period. Borrowers who choose the Immediate Repayment are not eligible for a grace period.
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