Student Loan Archives

Income-driven repayment was introduced to provide borrowers with options other than forbearance when they have trouble making monthly payments. Four of the more popular income-driven options are, Income-Based Repayment (IBR), Pay As You Earn (PAYE), and Revised Pay As You Earn (REPAYE), and Income-Contingent Repayment (ICR) all of which adjust the borrower’s payments based on their adjusted gross income and family size – not how much they owe. Those pursuing PSLF will need to be enrolled in an IDR plan.

After scheduling your consultation, you'll receive an email with a link to GradFin Concierge, a secure online tool, where you'll be asked to provide a number of items to build out your profile so that your consultant can give you the most accurate assessment based on your unique situation. These include:

Types of loans that you currently hold (federal, private, direct, subsidized, unsubsidized, etc.)
If you hold federal loans, you will be asked to provide the My Aid Data file, which you can obtain via your studentaid.gov account
The balance and interest rate for each of your loans
Current payment schedule
Authorization for GradFin to conduct a soft credit pull, which will not impact your credit score

The Department of Education (ED) will conduct a one-time account adjustment to borrower accounts that will count time toward IDR and PSLF forgiveness, including:

Any months in a repayment status, regardless of the payments made, loan type, or repayment plan
12 or more months of consecutive forbearance or 36 or more months of cumulative forbearance
Months spent in economic hardship or military deferments after 2013
Months spent in any deferment (with the exception of in-school deferment) prior to 2013
Any time in repayment on earlier loans prior to consolidation of those loans into a consolidation loan

Borrowers who have commercially managed FFEL, Perkins, or Health Education Assistance Loan (HEAL) Program loans should apply for a Direct Consolidation Loan by the end of 2023, to get the full benefits of the one-time account adjustment. For more information, visit studentaid.gov.

PSLF is a U.S. government program that allows qualifying borrowers employed at non-profits and government entities to have their Federal Direct Loans forgiven after ten years of repayment under the Income-Driven Repayment (IDR) plan (120 payments total). To be eligible for the program, you must:

Be employed by a non-profit (must be tax-exempt under Section 501(c)(3) of the Internal Revenue Code) OR a U.S. government organization at any level (federal, state, local, or tribal) – including U.S. military service
Work full-time for that agency or organization
Have Federal Direct Loans (or consolidate other federal student loans into a Direct Loan)
Be enrolled in an income-driven repayment (IDR) plan
Make 120 qualifying payments

For more information, go to the Federal Student Aid website at StudentAid.gov/publicservice.

GradFin was founded in 2015 to help student loan borrowers manage their loans, repay them faster, start saving earlier and achieve their financial goals. GradFin provides borrowers access to free consultations with student loan specialists, helping them understand their options through student loan forgiveness, refinancing, or a combination of both. Now a brand of KeyBank N.A., GradFin's specialists have over 50 years of combined experience in working in federal student loan management, including from former FedLoan Servicing trained employees, and have conducted over 60,000 consultations with borrowers since 2015.

A GradFin student loan specialist will break down your student loan profile, provide a chart on what your new loan payoff could look like, answer questions about what terms are the best for your unique situation, and answer any application questions you may have. If refinancing is determined to be your best option, they can help you understand what information impacts the interest rate that you might expect to be offered on your loan refinancing. Items such as your FICO score, income level, student loan balance, and current interest rate structure can impact your offer, and your specialist can walk you through how to qualify for the lowest rates on your loans.

Laurel Road offers a few 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. For more information, review your final closing documents for a detailed overview of your repayment terms.

Based on current Federal rates and offerings, Laurel Road will not be offering Graduate Loans for the upcoming 2022-2023 academic year. For information on alternative financing options, please contact your school’s financial aid office for resources and information regarding scholarships, grants, and federal student aid. Most schools will likely have a list of private lender options for students in need of a private loan option.

If you continue with an application after checking rates, we will ask you to authorize a hard credit inquiry, which may affect your credit score.

For most of our loans, you will only need to provide a photo ID. We do require a school certification but we will request that from your school after you consent to a hard credit pull. If you have a co-signer, it may be necessary for the co-signer to provide proof of income.

Both standard and partial payments are applied first toward any outstanding late fees, next to outstanding accrued interest, and then to the principal balance. 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.

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.

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.

There will be a six (6) month grace period which begins at the end of your in-school period, except for borrowers who choose Immediate Repayment. 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. 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.

If the loan adjustment amount is lower than your initial amount please reach out to Laurel Road Member Services for assistance. If your adjustment amount is higher than your initial amount you must reapply.

Because Laurel Road is providing a private loan, we do not require FAFSA, an application for a federal loan.

While in some instances Laurel Road may provide more competitive rates and flexible terms and repayment options, it does not offer Income-Based Repayment and Loan Forgiveness options that may be available through federal student loans. Be sure to explore all options available to you including grants, scholarships, and federal loans. For more information about federal student loan options visit StudentAid.gov

You may not need a cosigner, but if you do not meet our credit criteria, a cosigner may improve your chances of being approved.

Laurel Road Graduate Loans are available to individuals attending medical or dental schools, individuals pursuing a masters or doctorate degree in nursing, and individuals pursuing a degree to become a physician assistant. Students that have accepted an offer to enroll at least half-time or are currently enrolled at least half-time at an eligible school program, are a U.S. citizen or a permanent resident with a valid I-551 card (a conditional I-551 card will not be accepted) are eligible to apply for a graduate school loan with Laurel Road. Not all degrees are eligible at all schools.

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.

You can send our Member Services team a message by emailing us at [email protected] or by using the live chat function on our website. To speak directly with a Member Services representative, you can call us at 1-833-427-2265. Members using a TDD/TTY device, please use 1-800-539-8336. If your Laurel Road graduate loan has been disbursed, you should contact our loan servicing partner MOHELA at (877) 292-6845 (TTY: Dial 711) Monday – Thursday, 7:00 AM – 9:00 PM CT and Friday, 7:00 AM – 5:00 PM CT.

If you are a member who requires financial assistance, please contact our servicing partner MOHELA at 1-877-292-6845 (TTY: Dial 711) to discuss Laurel Road economic hardship forbearance options that may be available to you, as you may be eligible for full or partial forbearance for a period. All requests for forbearance are subject to review, including acceptable documentation of the nature and expected duration of the economic hardship. Please contact us directly to discuss your individual options. Please note: interest will continue to accrue in forbearance and any unpaid accrued interest will be capitalized and added to the remaining principal of the loan at the end of the forbearance period.

The AutoPay/EFT Discount is a 0.25% interest rate discount for making recurring monthly payments via electronic fund transfer (EFT) from a bank account. When applied your rate will be decreased by 0.25%. If, however, you stop making automatic payments via EFT, then your rate will increase by 0.25%. The 0.25% AutoPay/EFT Discount will not reduce the monthly payment; instead, the discount is applied to the principal to help pay the loan down faster. Rates advertised on this site typically include the 0.25% AutoPay/EFT Discount. However, if you stop making automatic payments or if Laurel Road cancels your automatic payments due to returned payment, delinquency, or forbearance, or otherwise, then your rates will go back to their regular levels. 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.

It’s pretty simple – the entire application is completed online. You will generally receive rates shortly after you complete your application. Fill out a short application with basic information about you, your loan, education, and cosigner if relevant. After you authorize a hard credit inquiry and have provided any supporting information requested, we will request cost of attendance information from your school, review your application, and we will provide you with a decision. If you are conditionally approved, you will be able to select your loan type and term, and accept and e-sign all necessary disclosures and your promissory note in the Laurel Road dashboard. The timing of your first payment to Laurel Road is dependent on the loan type you choose.

Once you are approved, accept the terms of the loans, and your school provides certification, you can execute your final documents and all funds will be sent directly to your school.

No, we do not have application fees, origination fees, or disbursement fees, nor do we have prepayment penalties.

The minimum loan size that you can borrow with Laurel Road is $5,000. The maximum loan size is the total Cost of Attendance (COA) with certification of enrollment, degree, and graduation year from your school.

No action is required for existing Laurel Road members with a LIBOR-based variable loan. Laurel Road will transition these loans to a SOFR-based index by June 30, 2023; after this date, these loans will be based on the FTSE USD IBOR Consumer Cash Fallback (“FTSE Consumer Index”). Our team will provide timely updates to existing members who are impacted in advance of the scheduled transition. Your student loan refinance documents specify that in the event LIBOR is no longer available, an alternative published benchmark will be selected to serve as the index. It’s important to note that once your current variable loan transitions to the FTSE Consumer Index, the new index change will not change most other terms of the loan, such as the maximum interest rate payable during the term of the loan or the timing of any interest rate resets. For additional information on the discontinuation of LIBOR, we recommend visiting the LIBOR Transition FAQs webpage, maintained by the Consumer Financial Protection Bureau. Or if you have specific questions about your existing student loan, please contact a Laurel Road Specialist at 877.292.6845 or send a secure message by logging into your web account at laurelroad.mohela.com.

The industry-wide transition to a new alternative rate index for adjustable (variable) rate products due to concerns about LIBOR (the London Interbank Offered Rate), has been in the works for several years. In anticipation of this move, the ICE Benchmark Administration (IBA), which administers LIBOR, has taken steps to eventually phase out LIBOR. Given the transition to a new variable rate benchmark, per regulatory and Alternative Reference Rate Committee (ARRC) guidance, Laurel Road began limiting new LIBOR-based student loan refinances on October 29th, 2021, and will adopt the Refinitiv USD IBOR Consumer Cash Fallback – a SOFR-based index – as the selected alternative USD index rate.

When you take out a student loan with Laurel Road, you’ll receive an interest rate on that new loan. How is the interest rate determined? Financial institutions and lenders use a benchmark to determine the interest rate they’ll charge you, with an additional margin set by the lender that factors in your current credit standing. For decades, the most common adjustable rate benchmark index used by lenders for loans with a variable interest rate has been LIBOR, or the London Interbank Offered Rate – the average rate a panel of international banks charge each other for short-term loans on the London interbank market. LIBOR will be phased out by June 30, 2023, due to concerns it has become an increasingly inaccurate indication of the true costs of borrowing. Beginning in 2021, newly originated loans were based on SOFR, or the Secured Overnight Financing Rate – a benchmark interest rate based on the most recent overnight borrowing costs on interbank transactions in the U.S. Treasury securities repurchase marketplace. Laurel Road began limiting new LIBOR-based student loan refinances on October 29^th, 2021, and adopted SOFR as the selected alternative USD index rate for new student loans with a variable interest rate. Borrowers with a fixed rate loan will not be impacted by this update. If you are a current borrower with a variable rate loan, learn more here.

The AutoPay/EFT Discount is a 0.25% interest rate discount for making recurring monthly payments via electronic fund transfer (EFT) from a bank account. When applied your rate will be decreased by 0.25%. If, however, you stop making automatic payments via EFT, then your rate will increase by 0.25%. The 0.25% AutoPay/EFT Discount will not reduce the monthly payment; instead, the discount is applied to the principal to help pay the loan down faster. Rates advertised on this site typically include the 0.25% AutoPay/EFT Discount. However, if you stop making automatic payments or if Laurel Road cancels your automatic payments due to returned payment, delinquency, or forbearance, or otherwise, then your rates will go back to their regular levels. 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.

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% (the AutoPay/EFT Discount). That lower interest rate will continue as long as you make payments via EFT. The 0.25% AutoPay/EFT Discount will not reduce the monthly payment; instead, the discount is applied to the principal to help pay the loan down faster. Rates advertised on this site typically include the 0.25% AutoPay/EFT Discount.

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.

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 often 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.

Yes, as a current Laurel Road Student Loan Refinance member you may be eligible to refinance your loan(s) again. If you currently have a student loan with Laurel Road and choose to refinance your student loan again with us, keep in mind that you will not be eligible for current new customer interest rate offers. A new application, including consent to a new hard credit inquiry will also be required. The rates and loan terms offered are dependent on current market rates and the applicant’s current financial standings, including but not limited to income, credit score, and debt-to-income ratio. If approved, the previous Laurel Road student loan balance will be paid off with a new Laurel Road loan.

Laurel Road will refinance up to $50,000* for Associate Degree loans in the eligible healthcare field. Please see full eligibility requirements here.

*Parents who are borrowing on behalf of their children are not subject to the $50,000 loan max

You can send our Member Services team a message by emailing us at [email protected] or by using the live chat function on our website. To speak directly with a Member Services representative, you can call us at 1-833-427-2265. Members using a TDD/TTY device, please use 1-800-539-8336.

If you refinanced your student loans with Laurel Road at any time, there are no changes to your account number, loan terms, payment amount or due date of your loan. Servicing will continue to be handled by MOHELA, our student loan servicing partner. You can continue to contact Laurel Road at (855) 245-0989 with any questions regarding your loan (customers using a TDD/TTY device, please use (800) 539-8336.) or can contact MOHELA about statements and billing at (877) 292-6845 (customers using a TDD/TTY device, please dial 711).

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

Student loans refinanced with Laurel Road will continue be serviced by MOHELA, our student loan servicing partner. If you have any questions about your student loan payments after funding your loan with Laurel Road, please call MOHELA at (877) 292-6845. Clients using a TDD/TTY device, please use (800) 539-8336.

Yes, Laurel Road refinances/consolidates both federal and private student loans, even if you have already refinanced/consolidated your student loans with another lender.

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.

While in COVID-19 forbearance, your previous payment schedule was inactivated. Interest continued to accrue but was not added to the principal balance of your loan. A new payment schedule was recalculated after forbearance to pay the remaining term (including any term extensions as a result of forbearance(s)) of your loan with the outstanding interest that accrued. As a result, your monthly payment likely increased and your first payments following forbearance were applied first to the unpaid interest. Please note, if the accrued interest was not paid and you use a different type of forbearance or deferment in the future (one other than the COVID-19 hardship forbearance), the interest could be capitalized at that future time. The below scenarios can provide you a general idea of how much interest may have accrued on your loan over a 90-day vs. 180-day forbearance and how the repayment schedule was impacted thereafter. These scenarios are examples only—they do not reflect your repayment terms, rate, recalculated payment amount, or amount of accrued interest.

You have a $180,000 loan with a 15-year fixed rate of 5.25%
Your original monthly payment prior to forbearance was $1,446.98
You entered forbearance after 12 months into repayment on your loan with an outstanding balance of $171,893

After 90 days of COVID-19 forbearance:

You exit forbearance with $2,256 in accrued interest
Your new monthly payment is $1,465.88

To account for the interest that accrued in forbearance, in this example your monthly payment would have increased by approximately $19 per month for the remainder of your loan term. After 180 days of COVID-19 forbearance:

You exit forbearance with $4,512 in accrued interest – approximately twice as much interest than with 90-day of forbearance
Your new monthly payment is $1,484.78

To account for the interest that accrued in forbearance, in this example your monthly payment would have increased by approximately $38 per month for the remainder of your loan term.

If you had previously refinanced your federal student loan with Laurel Road, you did not qualify for this federal program under the CARES Act. If you are an existing Laurel Road member and are experiencing an impact to your income as a result of COVID-19, please contact MOHELA at 1-877-292-6845 (TTY: Dial 711) to inquire about forbearance and hardship options available to you. For more information on federal student loan repayment options, visit studentaid.gov.