Laurel road student loan refinance reviews

Our experts answer readers' student loan questions and write unbiased product reviews (here's how we assess student loans). In some cases, we receive a commission from our partners; however, our opinions are our own.

Laurel Road is an excellent choice to refinance your student loans, as the company offers good APRs on its fixed-rate loans and a multitude of repayment options. However, its variable rates start slightly higher than the competition.

Laurel Road Student Loan Refinancing

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Laurel Road may be the best option for healthcare professionals, with special discounts available. From June 2021 to August 2022, approximately 10% of applicants qualified for the lowest available APR. Keycorp acquired Laurel Road in 2019, and KeyBank National Association backs all Laurel Road loans.

Loan Limits $5,000+ Fixed Rates 5.24%* – 11.24% Variable Rates 4.99% – 11.14% (10.00% Cap) Terms 5, 7, 10, 15 or 20 years† Min. Credit Score 660 Apply Link

*Lowest rates always include a 0.25% interest rate reduction for enrollment in automatic payments. †These are the terms Laurel Road advertises, but borrowers may apply for any loan term under 20 years.

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Loan Refinancing Options Private student loans ✓ Private parent loans ✓ (in either name)‡ Federal student loans ✓ Federal Parent PLUS loans ✓ (in either name)

‡Parents may refinance their own parent loans -OR- transfer the debt to their child, but only if the child has graduated.

Laurel Road Refinance Rates & Fees

Laurel Road offers some of the lowest term rates available. For student and parent PLUS refinancing, fixed loan rates are 5.24% to 11.24%. Variable rates start at 4.99% to 11.14%.

In 2023, Laurel Road has increased its lowest fixed rate for new loans by 16.7% (from 4.49% APR at the end of 2022). The highest fixed rate has increased 57.2% (from 7.15% APR). While the lowest available starting variable rate has increased 99.6% (from 2.50% APR), the highest starting variable rate is up 58.0% (from 7.05% APR).

In 2022, Laurel Road increased its lowest and highest fixed rates 79.6% and 14.4%, respectively; the lowest and highest variable rates increased 32.3% and 14.6%.

Note that lowest rates always include a 0.25% interest rate reduction for enrollment in automatic payments. Additional interest rate reductions are available if the borrower meets other qualifications, making minimum available rates as low as 4.27% fixed and 4.47% variable.

For medical resident and fellow student loan refinancing, fixed rates are between 7.15% and 11.09%. Variable rates start at 7.06% to 11.00%.

Student & Parent PLUS Refinance Loan Rates Term Fixed Rate Variable Rate 5 Year 5.24% – 10.45% 4.99% – 10.35% 7 Year 7.25% – 10.65% 7.15% – 10.55% 10 Year 7.45% – 10.85% 7.35% – 10.75% 15 Year 7.65% – 11.05% 7.55% – 10.95% 20 Year 7.85% – 11.24% 7.75% – 11.14% Medical Resident & Fellow Student Refinance Loan Rates Term Fixed Rate Variable Rate 5 Year 7.15% – 10.18% 7.07% – 10.10% 7 Year 7.32% – 10.39% 7.23% – 10.30% 10 Year 7.48% – 10.60% 7.39% – 10.51% 15 Year 7.72% – 10.86% 7.63% – 10.77% 20 Year 7.94% – 11.09% 7.85% – 11.00%

Additional information about Laurel Road’s refinance rates:

• Checking your rate with Laurel Road will not affect your credit score. To see if you prequalify, they will conduct a soft, not hard, credit inquiry (learn the difference).
• Laurel Road does offer a discount for setting up auto-pay: 0.25% interest rate reduction.
• Laurel Road also offers a discount for making monthly direct deposits into a Laurel Road Checking account; monthly deposits of at least $2,500 earn a 0.25% interest rate reduction and deposits of at least $7,500 earns an additional 0.30% rate reduction (for a maximum rate reduction of 0.55%).
• Alternatively, borrowers can earn a rate reduction of up to 0.30% when they open and maintain a Laurel Road Savings account; this reduction cannot be combined with the Laurel Road Checking Discount.
• Variable rates are based on the 30-day SOFR (5.23% as of this writing).
• Variable rates are capped 15.00%.

Student Loan Refinancing Calculator

Based on advertised rates, use the calculator below to determine what your new monthly payment and potential savings may be if you refinance with Laurel Road.

Additional Fees

Beyond interest rates, there are a number of fees a refinance lender may charge up-front or during the loan servicing period. Below is a list of these fees that Laurel Road does or does not charge.

Fee Type Amount Charged Application Fee None Loan Origination Fee None Disbursement Fee None Prepayment Penalty None Late Payment Fee $28.00 or 5% of the overdue amount (whichever is less) Returned Payment Fee $20.00 Collection Fee Undisclosed

1. Application fee – fee to apply for rates & approval.
2. Loan origination fee – fee to create the new loan.
3. Disbursement fee – fee for distributing funds to lenders to pay off loans that have been refinanced.
4. Prepayment penalty – fee for making extra payments to reduce a refinance loan balance or pay it off early.
5. Late payment fee – fee for making a late payment; where there are multiple options, the lesser dollar amount is the total fee. Laurel Road does not charge a late payment fee for individual monthly payments received within two weeks of the due date.
6. Returned payment fee – fee for failed payments due to insufficient funds, also known as a “bounced check”.
7. Collection fee – fee for collection activity on a defaulted debt.

Current Promotions & Offers

Laurel Road offers a 0.25% interest rate reduction for enrollment in autopay, as well as some other special programs that include discounts and benefits. Any restrictions are subject to change.

Referral Program

Laurel Road’s referral program offers $400 for each referral that results in a new loan origination. Participants may collect a reward for up to 10 referrals per year and are not required to be Laurel Road customers themselves. Some of the $400 referral bonus is transferrable to the referred customer.

Laurel Road Checking Discount

Take an additional 0.25% interest rate reduction with $2,500 or more in monthly direct deposits into a Laurel Road Checking account. A maximum discount of 0.55% is available with $7,500 or more in monthly direct deposits. This offer cannot be combined with the Laurel Road Savings Discount.

Laurel Road Savings Discount

Borrowers who open a Laurel Road Savings account with their refinance application can earn a rate reduction of up to 0.30%. For the first two billing cycles, the reduction is 0.25% regardless of the account balance. With each subsequent billing cycle the discount varies; it is either 0.10% (for balances between $1,000 and $9,999), 0.20% (for balances between $10,000 and $19,999) and 0.30% (for balances of $20,000 for more). This reduction cannot be combined with the Laurel Road Checking Discount.

Professional Organization Discounts

Laurel Road partners with dozens of professional organizations nationwide. Employees and/or members of these partners receive special discounts when they refinance their student loans.

Benefits may include limited monthly payments or special interest rates. For example, some memberships include eligibility for a 0.25% rate discount, including:

• American Academy of Dermatology (AAD)
• American Optometric Association (AOA)
• Emergency Medical Resident Association (EMRA)
• Healthcare Providers Service Organization (HPSO)
• International Association of Women (IAW)
• & dozens more

Laurel Road Refinance Eligibility Requirements

To qualify for refinancing with Laurel Road, all borrowers must meet certain criteria.

• Citizenship Requirement: U.S. citizenship or permanent residence with a valid I-551 form (a.k.a. “green card”).
• Income Requirement: employment required; no minimum income specified.
• Credit Score Requirement: 660 minimum credit score.
• Graduation Requirement: associate’s degree in healthcare or a bachelor’s degree or higher in any field of study.
• Location Requirement: available in all 50 U.S. states, Washington, D.C., and Puerto Rico.

Additional restrictions apply for specific individuals and loans.

• Undergraduate and graduate students in healthcare industries can refinance student loans during their final semester of school.
• Undergraduates with degrees in fields outside of healthcare may refinance loans if they have 12 months of employment following graduation.
• Parents may refinance education loans for children who did not graduate (though they must have attended a Title IV school).
• $50,000 is the maximum amount an associate’s degree holder may refinance; parents of associate’s degree holders are not subject to this limitation.
• Applicants with associate’s degrees must have a minimum of 12 months employment in the same field as their associate’s degree. Acceptable fields include:
  • Cardiovascular Technology (CVT)
  • Dental Hygiene
  • Diagnostic Medical Sonography
  • Emergency Medical Technology (EMT/Paramedic)
  • Nuclear Technology
  • Nursing
  • Occupational Therapy, Assistant
  • Pharmacy Technology
  • Physical Therapy, Assistant
  • Radiation Therapy
  • Radiologic/MRI Technology
  • Respiratory Therapy
  • Surgical Technology

Laurel Road Student Loan Repayment Options

Lenders vary greatly on the benefits and options provided to borrowers during the loan servicing period. Additionally, benefits may only be available on a case-by-case basis. Laurel Road offers some relief options.

Deferment & Forbearance

If unexpected financial hardships make it difficult or impossible to continue making timely payments in full, borrowers may be able to postpone payments for a limited period. Laurel Road’s postponement options may include deferment or forbearance; loans in forbearance always continue to accrue interest. See Laurel Road’s conditions for deferment and forbearance below.

Condition Coverage Returning to grad school None Disability rehabilitation Undisclosed Active military duty Undisclosed Involuntary unemployment Forbearance, up to 36 months (in 3-month increments) Natural Disaster Forbearance, up to 6 months (in 3-month increments)

Additional Options

Laurel Road may offer other opportunities for relief or contract modification.

• Economic hardship forbearance may be available to some borrowers on a case-by-case basis.
• Reduced payment or partial deferment options are available to some healthcare interns and residents.
• Co-signer release is available to borrowers who have made 36 consecutive qualifying payments and who pass Laurel Road underwriting review.
• Death/disability discharge is available in the unfortunate circumstance that a borrower passes away or suffers total permanent disability.

Laurel Road Reviews, Complaints & Lawsuits

Beyond our own findings, our team also collected the most genuinely insightful customer experiences we could find, including any instances of legal action against the company in which the details became public.

Laurel Road Online Reviews

Below are 3 samples of customer reviews we found on public forums, included here for their value as unedited, uncensored, and unsolicited user experiences. Note that these reviews are unverified, may include inaccuracies, and may provide outdated information (about rates, bonus offers, etc.).

“I’ve done a total of 3 refinances, all with Laurel Road. They were very fast and quick with replies/matching quotes. My only complaint is the last refinance was a bit hectic. They made my loan but took a while to post the prior loan as paid off. So I was looking at a balance of around $320k for two months. They corrected their mistake, and no interest was owed on the old loan during this time. That was the first time I had any annoyance with them.

Don’t forget autopay and AMA discounts. Right now, I’m on a 5 year variable at 0.99%. I’m just doing the minimum and throwing money into brokerage account. “ – SerrateAndDominate on White Coat Investor, 10/19/2020

“Laurel Road/KeyBank is the ONLY Student Loan Refinance Company that will work with foreign income/living overseas Debt…

Before being accepted by Laurel Road/KeyBank, I was rejected by [several popular lenders] when it came decision time, because I am living and working overseas.

Even though I used my parent’s address, which is my legal U.S. address, once they learned I was living overseas they rejected. 790 credit score (with solid income). Reason for rejection: ”Other”. None of these companies tell you that this is a problem until rejection time. [One lender] at least clued me to the problem by letting you know a foreign employer (by address) is not accepted before going all the way.

Laurel Road will work with you if you have foreign income and live overseas, so long as you can list a “permanent” U.S. address. Pretty much semantics or so I thought.

Laurel road got it done! I told them they needed to advertise this point. I hope this helps save someone a bunch of headache and aggravation down the line (I wasted hours of my time on these stupid applications).” – ajd341 on reddit, 7/23/2020

“I just refinanced with Laurel Road and am very happy with the result. My average rate before that was just north of 6% (on about $87k) and they got it down to 4.33% for a 10 year fixed. Payment went down noticeably and just feels good to have that much more going to principal instead of interest.

I was at first concerned by the lack of PSLF, but then I am trying to get rid of these things ASAP and am NOT taking the strategy that some seem to be taking, of paying as little as possible and hoping that the gov will pick up the rest.” – on BogleHeads.org, 6/12/2019

More (unfiltered) customer reviews of Laurel Road are available at TrustPilot.com (3.6 out of 5).

Laurel Road Consumer Complaints

As consumer finance companies, student loan refinancing lenders fall under the jurisdiction of the Consumer Financial Protection Bureau (CFPB), a federal agency. As part of its mission, the CFPB allows consumers to log official complaints. These complaints are publicly available on the CFPB official website.

Since its founding in 2013, zero (0) complaints have been submitted to the CFPB about Laurel Road. Laurel Road’s parent company, KeyCorp, has had thousands of complaints submitted after the corporation acquired Laurel Road in April 2019; just nine (9) of these complaints, however, reference student loan refinancing with an unnamed subsidiary that may or may not be Laurel Road.

For a full list of the complaints made against KeyCorp since their 2019 acquisition of Laurel Road, view the CFPB’s Consumer Complaint Database, click here.

Laurel Road Lawsuits

Aside from a creative dispute with CommonBond¶, Laurel Road has not been subject to any significant legal action. Likewise, its original parent company, Darien Rowayton Bank, has faced only one lawsuit. In that action, Darien Rowayton was the plaintiff, bringing a suit against an individual defendant in January 2011.

Laurel Road’s new parent company, on the other hand, has been subject to numerous legal actions. KeyBank currently faces multiple ongoing class action lawsuits.

These proceedings do not appear to involve Laurel Road in any way.

¶In the 2018 lawsuit against CommonBond, representatives of Laurel Road alleged that the former “infringed its trade dress” by using graphic design in a marketing campaign similar to the design Laurel Road used previously in their own advertising. The case was dismissed less than a year later.

Is Laurel Road a good student loan refinance?

Laurel Road is a good option for borrowers looking to refinance with an online lender offering competitive rates, low fees and many repayment plans. You'll find even lower rates if you have medical loans.

Is Laurel Road Bank legitimate?

Yes, Laurel Road is a legitimate, online-only bank. It was founded in 2013 and offers checking and savings accounts, along with loans.

What is the minimum credit score for Laurel Road?

Borrowers must have a minimum credit score of 660. Although Laurel Road does not disclose a minimum income requirement, the lender will look at your overall credit history and financial profile to determine eligibility.

Does refinancing student loans actually help?

A student loan refinance could help you save interest and make your monthly payments easier to manage. Generally, though, refinancing is a better fit if you have private student loans and a robust credit profile.