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Student Loan Refinancing Rates

Laurel Road student loan rates have unique APR options that impact monthly and total payments. See our fixed and variable rate examples.

Published December 06, 2022

If you’re considering (or reconsidering) how to manage your student loan debt–and wondering if there’s a better option out there—you’re not alone. In 2022, 45 million Americans are facing the burden of student loan debt that now totals nearly $1.75 trillion. And while the student loan forgiveness debate wages on, you’re probably looking at your current day-to-day—which might have you looking at student loan refi options.

If you’d like to compare your student loan rate with Laurel Road, the following tables include repayment examples for variable and fixed rates. These examples show the APR, monthly payments, and total payments based a loan amount of $10,000 with repayment beginning immediately following disbursement. Repayment examples do not include the 0.25% AutoPay Discount or the Laurel Road Linked CheckingSM account discount.

Estimated Student Loan Refinance Payment Examples

Fixed Rate Loans

Term Interest Rate APR No. of Payments Monthly Payment Total Payments
5 Year
7 Year
10 Year
15 Year
20 Year

Variable Rate Loans

Term Interest Rate APR No. of Payments Monthly Payment Total Payments
5 Year
7 Year
10 Year
15 Year
20 Year

Check Your Rate

Annual Percentage Rate (“APR”): This term represents the actual cost of financing to the borrower over the life of the loan expressed as a yearly rate.

Interest Rate: A simple annual rate that is applied to an unpaid balance.

Variable Rates: The current index for variable rate loans is derived from the 30-day Average Secured Overnight Financing Rate (“SOFR”) and changes in the SOFR index may cause your monthly payment to increase. Borrowers who take out a term of 5, 7, or 10 years will have a maximum interest rate of 9%, those who take out a 15 or 20-year variable loan will have a maximum interest rate of 10%. There is no limit on the amount your interest rate can increase at one time. The Index is currently published by the Federal Reserve Bank of New York (“New York Fed”). If the Index is no longer available, it will be replaced by a replacement Index according to the terms of the promissory note.

This information is current as of October 29, 2021. Information and rates are subject to change without notice.

Understanding interest rates: fixed vs. variable rates

First, you’ll want to understand all your current options. Do you have federal or private student loans? Is consolidating or refinancing the best option? How will current interest rates impact your loans? If you decide to refinance your loans, how can you find the best student loan refinance rates? First, let’s talk about interest rates.

A fixed interest rate is an interest rate that generally stays the same for the life of a loan, or for a portion of the loan term, depending on the loan agreement. The advantages may seem clear, you’ll pay a set amount of interest on your loan and it won’t go up or down with the prime rate or other index rates, so you’ll know exactly how much you’ll pay each month.

A variable interest rate on the other hand can change periodically and rates may fluctuate with market conditions, meaning your monthly payment can also go up or down. But a variable rate often offers lower rates, and if interest rates drop then you could save money over the life of your loan. You can learn more about how variable rates are calculated here.

While all federal student loans have fixed interest rates, if you work with a private lender, you’ll often have a choice between a fixed or variable student loan refi rate. Deciding between a fixed or variable rate may come down to your tolerance for risk. Would you rather lock in a rate for the life of the loan, or take the chance to get a lower interest rate and potentially save along the way? When you choose between variable or fixed rate loans, think about whether having some uncertainty in the mix is worth the potential savings. For example, if you plan on paying off the loan quickly and have the means to do so, a variable rate could be a smart choice that ultimately saves you money.

How Laurel Road’s student loan refinancing rates compare

Each private lender has its own criteria for determining eligibility and rates, such as credit history, total monthly debt payments, and income. There are many factors that go into an offered rate for refinancing your student loans, including the type of loan, your financial history, credit score, and more.

Is refinancing right for you? Learn more.

If you’re ready to explore the benefits of refinancing, we’re here to help. Get started today by checking your rate options in five minutes to see if you could save. And if you’re looking to maximize your savings, we also offer additional discounts when you enroll in auto-pay1 or open a Laurel Road Linked CheckingSM account2 during refinancing and set up qualifying direct deposits. To learn more about our student loan refi options, click here.

If you are refinancing any federal student loans with us, you will no longer be able to take advantage of federal student loan repayment options, including but not limited to Income-Based Repayment (IBR), Public Service Loan Forgiveness (PSLF), or Pay As You Earn (PAYE) or Revised Pay As You Earn (REPAYE). Additionally, federal student loans offer deferment, forbearance, and loan forgiveness options that may not be available with Laurel Road. For more information about these benefit programs and other federal student loan programs, please visit studentloans.gov.

Sources: https://www.forbes.com/advisor/student-loans/average-student-loan-statistics/

    1. AutoPay/EFT Discount: if the borrower chooses to make monthly payments automatically by electronic fund transfer (EFT) from a bank account, the interest rate will decrease by 0.25% and will increase back if the borrower stops making (or we stop accepting) monthly payments automatically by EFT from the borrower’s bank account. 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.
    2. The Laurel Road Linked Checking discount is available to borrowers who open a Laurel Road Linked Checking account simultaneously while refinancing their student loans with Laurel Road. You may also be able to utilize a checking account opened simultaneously with a prior Laurel Road student loan refinance to obtain a discount on your new Laurel Road student loan refinance. Borrowers will receive a 0.25% rate discount for their first three monthly billing cycles. Starting with the fourth billing cycle and continuing with each billing cycle thereafter, the rate discount applied to each billing cycle will be based on the amount deposited via qualifying Automated Clearing House (ACH) transactions into the Laurel Road Linked Checking account during the preceding calendar month; 0.25% for deposits between $2,500 and $7,499 per month and 0.55% for deposits $7,500 or greater per month. Qualifying ACH direct deposit transactions include most payroll, Social Security, pension and government benefits deposits. To continue to receive the discount for the fourth billing cycle, you must begin making qualifying ACH deposits to your Laurel Road Linked Checking account during the second month after your loan funds. Note that the discount is only available to the primary checking account owner and is not available to a joint checking account owner. If the primary account owner is no longer an owner on the checking account or the account is closed, the discount on their student loan will cease. Discounts subject to change without notice and cannot be combined with the Laurel Road Linked Savings discount. For more information on the Laurel Road Linked Checking Account visit https://www.laurelroad.com/refinance-student-loans/linked-checking/#disclaimer.

In providing this information, neither Laurel Road nor KeyBank nor its affiliates are acting as your agent or is offering any tax, financial, accounting, or legal advice.

Any third-party linked content is provided for informational purposes and should not be viewed as an endorsement by Laurel Road or KeyBank of any third-party product or service mentioned. Laurel Road’s Online Privacy Statement does not apply to third-party linked websites and you should consult the privacy disclosures of each site you visit for further information.

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