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