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  • What is 1-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 on The Wall Street Journal’s website. Laurel Road’s variable rate is calculated every month by adding a fixed margin to 1-Month LIBOR published on the 25th day of each month. The variable interest rate and monthly payment on a Laurel Road variable rate loan will increase or decrease as the 1-Month LIBOR index increases or decreases.

  • 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%.

  • 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.

  • 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.

  • 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.

  • 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.

  • 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.

  • 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.

  • 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.

  • 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.

  • 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.

  • 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.