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
10 min readIf 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 Checking® account discount.
Fixed Rate Loans |
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Term | Interest Rate | APR | No. of Payments | Monthly Payment | Total Payments |
5 Year | |||||
7 Year | |||||
10 Year | |||||
15 Year | |||||
20 Year |
Variable Rate Loans |
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Term | Interest Rate | APR | No. of Payments | Monthly Payment | Total Payments |
5 Year | |||||
7 Year | |||||
10 Year | |||||
15 Year | |||||
20 Year |
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. Although the rate will vary after you are approved, it will never exceed 15.00%. 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.
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.
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.
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 Checking® 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/
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.
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