When reviewing Laurel Road and comparing it to other lenders, Laurel Road has a track record of offering excellent interest rates in a variety of categories. Laurel Road also has recently gained a reputation for higher application approval rates.

While there is plenty to like about Laurel Road, it is not a company or a refinance product free of concerns, which we will get into below.

Laurel Road Basics

Note: All interest rates are listed as an APR or annual percentage rate.

Like other legitimate lenders, Laurel Road has no loan origination fees or prepayment fees.

Additionally, Laurel Road also offers loan refinancing tailored explicitly to parents who took out loans for their children as well as physicians in their residencies.

Advantages to Refinancing with Laurel Road

One of the significant benefits of Laurel Road is that it is the product of a bank, rather than a student loan company. Banks face greater scrutiny in their lending practices, meaning borrowers face a much lower likelihood of lender shenanigans when applying for a loan.

At present, Laurel Road has some of the best interest rates in the student loan refinance marketplace.

If you are a medical professional, Laurel Road has several unique services tailored especially to your situation. This includes a residency and fellowship repayment option that allows you to pay just $100 per month until you become an attending physician. This will enable borrowers to immediately lower interest rates and keep payments down until their finances allow for higher payments.

Disadvantages and Concerns

The drawbacks to Laurel Road apply to pretty much every other lender on the market.

First, they allow consolidation of federal student loans in their private loan refinance. For some borrowers, this is a very smart financial move. Reducing the interest rates on federal loans can save thousands over the life of the loan. However, taking this step could also be a huge mistake because it means that student loan forgiveness programs and income-driven repayment plans are no longer an option. Make sure you are certain you want to give up the perks of having a federal student loan before you refinance.

Second, Laurel Road does offer a co-signer release program, but borrowers should advise their co-signers not to expect or rely upon a co-signer release. For starters, borrowers are not able to even apply for a co-signer release for the first 36 months their loan is in repayment. At that point, a release application can be submitted, but won’t necessarily be approved. Because of the many steps and uncertain nature of co-signer release programs, we encourage all co-signers on all loans to plan on being on the loan until it is paid in full.

Things to Know About Laurel Road

In preparing the Laurel Road refinance review, we reached out to ask for some additional information that might be hard for most borrowers to track down. Here is what we learned.

• Laurel Road loans are serviced by MOHELA. Of the many companies that service student loans, MOHELA is usually considered to be among the best.
• Borrowers without a degree will not be able to refinance with Laurel Road, but those with an associate’s degree can be refinanced up to $50,000.
• Parents with Parent PLUS loans are also able to refinance with Laurel Road. A Parent PLUS loan can also be refinanced in the name of the child for whom the loan was borrowed.
• Laurel Road uses TransUnion credit reports.
• Loans are usually funded within 20 days from the date the application is submitted, but this timeline depends upon how fast borrowers submit requested documents.

Final Thoughts on the Laurel Road Review

Laurel Road, has consistently appeared in the top five of our student loan refinancing rankings. Not only does Laurel Road currently advertise some of the best rates on the market, but they also have a reputation for actually offering those low rates to borrowers. For this reason, checking rates with Laurel Road is usually time well spent for borrowers looking to refinance.

However, while Laurel Road scores high in our metrics, it shouldn’t be the only place that borrowers check rates. Each borrower has a different credit profile and each lender evaluates applications differently. All borrowers should check rates with 3-5 lenders to make sure they are getting the lowest rate possible.

Click here to check your rate with Laurel Road.

The post Laurel Road Review: Student Loan Refinancing and Consolidation appeared first on The Student Loan Sherpa.

The borrowers who understand the critical distinctions between the two lenders will better position themselves to find the best deal.

Basic Terms from Laurel Road and Earnest

Variable-Rate Loans	5.29% - 9.20%	5.89% - 9.74%^
Fixed-Rate Loans	4.99% - 8.90%	3.95% - 9.74%^
Loan Terms	5, 7, 10, 15, and 20 Years	5 - 20 Years
Minimum Loan	$5,000	$5,000
Signup Bonus	NA	$150^

^ The lowest listed rate for Earnest is a 5-year variable rate loan, and rates for both lenders are listed as an APR. Please see the Earnest Disclosure for more details on rates and bonus terms.

At first glance, there isn’t much separating these two lenders. Both variable and fixed-rate loans appear in similar ranges.

However, things get interesting as we dig deeper into the two lenders.

Key Differences Between Lenders

Laurel Road and Earnest approach student loan refinancing from two unique perspectives.

Earnest, at its core, is a tech company. They believe that with the information provided in a short application, they can understand a borrower’s finances far more comprehensively than a traditional lender. Credit score and income are still important factors, but Earnest looks beyond these conventional metrics. For example, If you diligently save for retirement each month, it may help your cause with Earnest.

Laurel Road, however, is a product of a traditional bank. At first glance, this might seem like a negative, but it does have some benefits for borrowers. The majority of the major refinance lenders are tech-driven companies. Interest rates with tech-focused lenders tend to move very quickly with the broader market. The lenders backed by a bank tend to change rates a little slower. During times of inflation, traditional banking lenders often have the lowest interest rates.

Finally, Laurel Road places a big emphasis on doctors and those in the medical field. They seem to understand that a young physician’s starting salary is likely to increase considerably in the future. As a result, many recent medical school graduates find the best deal with Laurel Road.

Interest Rates Offered and Reader Feedback

The strategies used by the two lenders are interesting, but ultimately, the interest rates are the most important details.

More specifically, the interest rates actually offered by the two lenders are the most important details. In many cases, the lenders that advertise the lowest interest rates are not the lenders that offer the lowest interest rates.

In the case of Earnest, borrowers have reported a wide variety of interest rate outcomes. Many readers of this site have found the best deal with Earnest. Others have been insulted by surprisingly high rates. This is likely attributable to the unique formulas employed by Earnest.

Laurel Road tends to offer rates pretty close to their advertised rates in various loan categories. Unfortunately, Laurel Road tends to be in the middle of the road regarding approvals. They are not terribly strict, but a rejection at Laurel Road doesn’t necessarily mean a borrower can’t get approved anywhere.

Deciding Between Laurel Road and Earnest

These two lenders sit at the top of the student loan refinance rankings. Additionally, they have both been towards the top for many years.

If you are a borrower who is very responsible financially, but you don’t have a long credit history, or you have a lower income, Earnest should probably be the first company you check out.

However, Laurel Road should be your first stop if you are in the medical field.

If you don’t fit into either of these small boxes, both companies merit serious consideration. Checking rates with both lenders is often well worth the 10-15 minutes required to get an offer.

Finally, Earnest offers a $150 bonus to borrowers who refinance using the links on this page.

Other Lenders to Consider

	Splash is extremely focused on interest rates. They consistently have the lowest rates in numerous loan categories. Read more...
	ELFI is a traditional bank with a major focus on quality customer service. Getting approved is hard for some borrowers, but those that do get approved receive excellent interest rates. Read more...
	SoFi is the biggest name in the student loan refinance space. They consistently offer excellent rates with high approval numbers. Read more...
	LendKey partners with smaller banks and credit unions across the country. This approach results in higher approval numbers and competitive loan terms. Read more...

The post Laurel Road vs. Earnest Student Loan Refinance Showdown appeared first on The Student Loan Sherpa.

My Review: The Laurel Road Card is a surprisingly decent option for student loan borrowers. Previous student loan focused credit cards were lousy, but this one could be helpful for some borrowers. However, traditional cashback cards are still the preferred option for many borrowers.

The highlight of the Laurel Road card is the 2% cashback that can be used with the majority of student loan lenders and servicers.

Laurel Road Student Loan Cashback Credit Card Basics

The Laurel Road card is a straightforward cashback credit card. Cardholders get 2% back on all purchases that can be redeemed towards student loans with most lenders. Those that wish to redeem their rewards as a statement credit only get 1% back.

The card has no annual fee or foreign transaction fees. The Laurel Road card is on the Mastercard network, and applicants will need good to excellent credit to get approved. As a World Mastercard, the card includes ID Theft Protection, Extended Warranty Coverage, and Purchase Assurance.

Borrowers who don’t pay their balance in full each month are charged an interest rate of 13.99% to 22.99% APR. Like most other rewards credit cards, this card should only be used by those who intend not to carry a balance.

Signup Bonus and Incentives

This newer card comes with a decent signup bonus for new customers.

Laurel Road is offering $500 towards any student loan for customers who spend $5,000 or more within the first 90 days. If you opt to receive a statement credit instead, the bonus drops to $250.

Laurel Road also offers a 0% introductory APR for balance transfers made within the first 60 days of having the card. Unfortunately, if you take advantage of the 0% balance transfer, regular purchases will be charged the full interest rate unless the entire balance, including the transfer, is paid in full each month. In other words, this card only makes sense as a balance transfer card OR a reward card. Doing both at the same time will result in interest charges on new purchases.

Who Benefits from the Laurel Road Student Loan Cashback Card?

In the world of cashback credit cards, 2% is on the higher end, but most consumers can qualify for a 2% card. For example, the Citi Double Cash offers 2% back and has no annual fee.

The Laurel Road card is ideal for someone who wants to pay down their student loans but finds themselves using credit card rewards for impulse purchases. For many consumers, a credit card reward is a bonus or “free money,” so it is often easy to justify spending reward funds on non-essentials. The reward structure of the Laurel Road card provides a huge incentive to use the money towards student debt.

Avoiding a Mistake

If you carry a balance on your credit card or don’t have student loans, the Laurel Road card is a lousy option.

A 2% cashback reward doesn’t offset interest charges of 13.99% or more. Only use this card if you plan on paying your balance in full each month.

Additionally, it is essential to make sure your student loan servicer is on the list of eligible companies from Laurel Road. This list includes major servicers like CommonBond, Discover, Earnest, MyFedLoan, Great Lakes, MOHELA, Navient, Nelnet, PenFed, and Sallie Mae. Laurel Road claims they work with 95% of servicers, but this is a detail you want to verify before applying for the card.

Final Thoughts: Laurel Road Student Loan Cashback Credit Card Review

The card is a new product from Laurel Road, but as a refinance lender, Laurel Road has a solid reputation.

It would be nice if the card offered more features geared specifically towards student loan borrowers, but 2% cashback is a great start. As a result, the Laurel Road card is a reasonable option for student loan borrowers looking to repay their student loans aggressively.

The post Laurel Road Student Loan Cashback Credit Card Review appeared first on The Student Loan Sherpa.

In our student loan rankings, we provide a template for sorting through the various companies, but it isn’t an exact science. The reality is that the best student loan refinance lender is usually the one offering the best interest rate.

SoFi, Laurel Road, LendKey, Earnest, Citizens, and Splash are the lenders that most frequently appear in these reader emails. This makes sense because these lenders spend the most on advertising and offer some of the best interest rates in the student loan consolidation business.

Advertised Rates vs. Actual Interest Rates

If there is one concept that anyone shopping student loan refinance companies should understand, it is the difference between advertised rates and actual interest rates.

Advertised interest rates vary from company to company and can fluctuate based upon the market and cost of borrowing. Most of the top lenders will all be within a fraction of a percent of each other. However, just because a company advertises the lowest interest rate, it does not mean that it will offer any particular borrower the best interest rate.

Actual interest rates depend upon a number of different factors. The potential borrower’s credit score, income, debt-to-income ratio, occupation, and school all can be considered.

However, each lender may treat these factors differently. For example, Earnest also considers your retirement account balances. From their perspective, if you are saving a ton of money for retirement at a young age, it is a sign you are probably a responsible borrower. Each company guards its exact formula closely.

Lenders make money by offering the best rates to the consumers who are the lowest risk. The better they do identifying these consumers, the more money they will make.

What this means for you the borrower is that each lender will apply your particular information to their credit evaluation formula. SoFi may decide you are too much of a credit risk and decline your application or offer you a higher interest. Meanwhile, LendKey might look at exactly the same information and conclude that you are a safe bet, and offer you their lowest interest rate. Because each borrower is different and each lender looks at borrowers differently, it is impossible to know what lender will have the best rate.

A final factor that should be considered is the term of the loan. Laurel Road might offer an excellent rate on a short-term variable-rate loan, but the long-term fixed-rate loan might come with a really high interest rate. Meanwhile, Splash could do the opposite. Their fixed-rate loans might be the best deal, but their variable-rate offers don’t hold up. The only way to know what a lender will offer and what deal you can get is to apply.

Shopping Around

The extended discussion about advertised rates vs. actual rates is necessary to explain the importance of shopping around.

When it comes to student loan refinancing, that means applying with a number of companies to find the best deal.

The major credit bureaus encourage shopping around because multiple credit inquiries are treated the same as a single check, so long as they were within 14 days (some even give you longer). This means that the only downside to applying to multiple lenders is the time it takes to fill out the applications. It may be a bit of a headache, but the potential savings make it time well spent.

Those concerned about the time commitment required to shop around should estimate that it takes about 10 minutes per lender to check rates.

We have prepared a full list of lenders in our rankings and also included links to current promotions with most lenders.

What is the point of Rankings?

The rankings should be useful for a couple of reasons.

First, it provides a starting point for your research. Having all the companies in one place provides a guide for where you should go when shopping around.

Second, it is helpful when comparing the offers two companies have made.

Suppose SoFi and Citizens both offer the same interest rate for your consolidation. Part of the reason SoFi is ranked number one is because of its favorable cosigner release terms and because of its career development opportunities for borrowers who lose jobs. This gives them the edge in our rankings, so if the interest rates are close, it is a good tie-breaker.

Bottom Line

Finding the best student loan company is all about doing a little bit of extra legwork.

There are some differences between SoFi, Laurel Road, LendKey, Earnest, Citizens, and Splash, but at the end of the day they are all offering similar services and the best choice is typically the lender with the best rate.

The extra effort to find the best rate is minimal and it pays off.

Put together a list of lenders you are considering. Send out applications to each lender. Evaluate who has the best deal. Compare how the companies did from a customer service perspective. By the time you have offers and experience with the lenders, you should know what lender is best for you.

Shopping around in this manner will ensure that you save as much money as possible. At present, these lenders are advertising the lowest interest rates.

The post Deciding Between SoFi, Laurel Road, LendKey, Earnest, Citizens, and Splash appeared first on The Student Loan Sherpa.

In the world of student loan refinancing, two of the biggest names are SoFi, short for Social Finance, and Laurel Road, a product of Key Bank. Both SoFi and Laurel Road have rock-bottom interest rates, currently at just over 5% for each company. Both lenders also have perks that other lenders cannot compete with. It is part of the reason these two lenders sit at the top of our student loan refinance company rankings.

Deciding between SoFi and Laurel Road is difficult as both lenders are similar. SoFi tends to be more focused on providing perks and other services for their members, but both companies have a reputation for providing an outstanding student loan refinance experience.

Despite the many similarities, there are also a few key differences.  It is these subtle differences that can tip the scales in one direction or the other for many borrowers.

The SoFi Advantages

After reviewing a wide variety of student loan consolidation companies, the thing that makes SoFi stand out above others is its job placement program. SoFi, in an industry first, has hired a team of individuals to help unemployed borrowers find new work.

For most borrowers, job placement assistance is a low-priority item. This perspective makes sense because nobody plans on getting fired or losing their job. Unfortunately, the reality is that it will happen to many borrowers. Having this program in place could help many individuals find work before they fall too far behind on their finances. After all, SoFi has a big incentive in making sure that you make enough money to pay your bills each month. The fact that their first avenue is job placement rather than collection agencies is excellent. Hopefully, employment assistance programs will one day become the standard for student loan refinancing companies.

The Laurel Road Advantages

Key Bank, the company behind Laurel Road, is a traditional bank (before 2019 Darien Rowayton Bank owned Laurel Road). As we noted in our Laurel Road Review, being a product of a conventional bank stands in stark contrast to many of the top student loan consolidation companies today. Most of the consolidation companies with ultra low-interest rates are new companies with just an internet presence.

Despite the traditional bank structure, Laurel Road is still able to offer interest rates much lower than other companies with a more physical presence, such as Citizens Bank. For many borrowers, the ability to walk inside a building and talk to a real person has considerable value.

Another advantage of Laurel Road is its specialized borrower programs. Perhaps the best example is the one for medical school graduates. Residents and Fellows can pay only $100 per month towards their student loans for the entirety of their residency or fellowship. Six months after the training has concluded, borrowers will then be expected to make standard payments according to the repayment plan. This program, specifically created for doctors, is a great perk because it recognizes the short-term financial hardships that many professionals face early after graduation, but allows for immediate refinancing to start saving money on interest long before the higher-paying work is secured.

SoFi or Laurel Road: Which student loan refinance company is the best?

When two companies are so similar on paper, the difference for most borrowers comes down to interest rates. Both companies have low interest rates, but not everyone qualifies. SoFi has the lowest rates, but Laurel Road has a very tight range, so the lender offering the best rate will vary depending on the borrower.

The key is to see who can offer you the best interest rate based on your finances. Because all lenders evaluate borrowers slightly differently, the only way to know who has the best rates for you is to apply to both.

Checking Rates with Both Lenders

Completing applications with both lenders may sound tedious, but it could save you thousands in interest. Fortunately, credit agencies recognize this activity as “shopping around,” so the multiple inquiries do not hurt your credit score.

The other significant advantage to applying to both companies is that you can personally evaluate the customer service that you receive. If one company stands head and shoulders above the other, your decision could be an easy one.

Check rates with Laurel Road.

Check rates with SoFi.

The post SoFi vs. Laurel Road: The Student Loan Refinance Comparison appeared first on The Student Loan Sherpa.