Laurel Road Student Loan Refinancing Review: How Much Could You Save?

Advertiser Disclosure

Student Loan Hero Advertiser Disclosure

Our team at Student Loan Hero works hard to find and recommend products and services that we believe are of high quality and will make a positive impact in your life. We sometimes earn a sales commission or advertising fee when recommending various products and services to you. Similar to when you are being sold any product or service, be sure to read the fine print understand what you are buying, and consult a licensed professional if you have any concerns. Student Loan Hero is not a lender or investment advisor. We are not involved in the loan approval or investment process, nor do we make credit or investment related decisions. The rates and terms listed on our website are estimates and are subject to change at any time. Please do your homework and let us know if you have any questions or concerns.

Editorial Note: This content is not provided or commissioned by any financial institution. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by the financial institution.

Logo

We’ve got your back! Student Loan Hero is a completely free website 100% focused on helping student loan borrowers get the answers they need. Read more

How do we make money? It’s actually pretty simple. If you choose to check out and become a customer of any of the loan providers featured on our site, we get compensated for sending you their way. This helps pay for our amazing staff of writers (many of which are paying back student loans of their own!).

Bottom line: We’re here for you. So please learn all you can, email us with any questions, and feel free to visit or not visit any of the loan providers on our site. Read less

Refinancing with Earnest

Refinancing rates from 2.57% APR. Checking your rates won’t affect your credit score.

Check out Earnest

If you have student loans, it can feel like you’re stuck with the interest rate you have. Having a high interest rate and a sizable student loan balance can mean paying thousands of dollars in interest over the life of the loan.

But there’s good news: You can lower your interest rate and make student loan repayment more manageable through the process of student loan refinancing.

Student loan refinancing allows borrowers to consolidate their student loans while potentially scoring a lower interest rate. This can be a win-win in many cases (though you should know about the drawbacks to refinancing, too).

There are a number of student loan refinancing companies out there. In this guide we’ll cover Laurel Road (formerly known as DRB), the online lending division of Darien Rowayton Bank and one of the main players in the student loan refinancing game.

Read on for our complete Laurel Road student loan refinancing review.

Laurel Road student loan refinancing review

Darien Rowayton Bank is a financial institution offering a multitude of products. One of their signature financial products is student loan refinancing, offered through their Laurel Road division.

Through Laurel Road student loan refinancing, borrowers can:

  • Potentially secure lower interest rates
  • Choose between fixed or variable interest rates
  • Opt for shorter or longer repayment terms (between five and 20 years)

According to their website, Laurel Road customers can save more than $20,000 on their student loans after refinancing.

While student loan refinancing can be a good way to save money on interest, it’s also something you should consider carefully, particularly if you have federal student loans. Refinancing federal student loans means missing out on forgiveness or income-driven repayment options.

Though federal student loan borrowers would give up certain benefits, Laurel Road does offer some perks and protections in case hard times hit.

If you experience economic hardship, you may be able to postpone your monthly payments for one or more 3-month time periods. However, you can’t exceed 12 months in the aggregate during the term of your loan.

Additionally, Laurel Road offers some death and disability benefits. In the unfortunate event that you should pass away or become permanently disabled, Laurel Road will forgive the total amount of your refinanced student loan.

Visit the Laurel Road website

Laurel Road online platform and application process

In order to qualify for student loan refinancing through Laurel Road, you must fill out an online application. You’ll need to provide your name, date of birth, Social Security number, and address, as well as your education and employment info.

Laurel Road also asks how much you are looking to refinance and how much you earn each year. Many student loan refinancing companies want to know your debt-to-income ratio to properly evaluate your application.

If your credit isn’t strong enough to qualify, you may also add a cosigner. Once you submit an application, you should hear back fairly quickly on whether you are approved and how to move forward with next steps.

The initial application is short, taking about five minutes. After you authorize Laurel Road to pull your credit, they will show you your prospective interest rates. If you wish to continue your application, you will be asked to provide documentation such as your pay stubs, your current loan materials, and more.

When all of your documents are submitted, Laurel Road will come back with your final interest rates as well as loan details. If you accept all the terms and conditions via e-signature, Laurel Road will then send the funds to pay off your loans with your current lenders.

After that, you’ll be left with one monthly payment and one interest rate through Laurel Road, enabling you to save money on interest and manage your student loans. As a Laurel Road customer, you can access their online portal at any time.

Laurel Road interest rates and fees

The whole point of refinancing is to make student loan repayment more manageable and affordable. A key part of that is scoring a lower interest rate that can help you save money.

Under Laurel Road student loan refinancing, you can opt for a variable or fixed interest rate. If you think you can pay off your student loans quickly, a lower variable rate could work in your favor.

If you’re looking for stability and want to secure a rate that won’t change, a fixed interest rate might be your best bet. Laurel Road’s current interest rates are:

  • Variable: 2.80% – 6.38% APR
  • Fixed: 3.50% – 7.02% APR

As you can see, the variable rate is slightly lower, but you run the risk of rates increasing over time due to market fluctuations. According to the Laurel Road website, the variable rate may go up at any time, but will never be more than nine or 10 percent, depending on the repayment term you choose.

These rates include the autopay discount of 0.25 percent. This discount is granted to borrowers that set up autopay so your monthly payments may be automatically deducted from your bank account.

Ultimately, the interest rate you are offered will depend on a variety of factors including:

  • Your credit history
  • Amount of debt you have
  • Your annual income
  • Variable vs. fixed interest rate loan
  • Your employment situation

Aside from interest rates, you also want to be aware of any pesky fees that could sneak up on you. Luckily, with Laurel Road student loan refinancing there are none. That’s right — no fees for prepaying on your student loans and no origination fees. There’s no application fee, either.

However, if you miss a payment, you will be charged a late fee 15 days after your due date. The late fee will either be five percent of your late payment or $28, whichever amount is less. Additionally, you can be charged $20 if your payment doesn’t clear because of non-sufficient funds.

apply with Laurel Road today

Laurel Road eligibility requirements

When applying to refinance your student loans, you’re working with a private financial institution (instead of a public entity like the U.S. Department of Education). This means there are stricter eligibility requirements, terms, and conditions.

For Laurel Road, eligible candidates must:

  • Be a United States resident or permanent resident with a I-551 card
  • Have a bachelor’s or graduate degree
  • Be gainfully employed
  • Parents may also be eligible if they took out student loans for their child and if the child meets the eligibility requirements

Eligible loans include:

  • Undergraduate
  • Parent PLUS
  • MBA
  • Law
  • Dental
  • Medical
  • Engineering

Though Laurel Road has previously focused on graduate and professional degrees, they recently started offering student loan refinancing to those with undergraduate degrees.

You can refinance your loans with Laurel Road even if you have already refinanced with another company. Additionally, Laurel Road refinances both federal and private student loans.

Prospective borrowers do not need a cosigner to qualify for Laurel Road student loan refinancing. But if your credit could use a boost, having a cosigner could help.

Remember, you don’t have to refinance all of your student loans if you don’t want to. For example, if you have private student loans you want to refinance but want to keep your federal loans and benefits intact, Laurel Road allows you to do that.

Laurel Road customer service

No Laurel Road student loan refinancing review would be complete without discussing their customer service. Student loan refinancing isn’t something to take lightly, and you want to make sure you are in good hands.

You can use the live chat function on their website or give the customer service team a call Monday through Saturday at (855) 245-0989 if you have any questions.

They are available Monday through Thursday, 8:30 am to 6:30 pm EST, on Friday from 8:30 am to 5:30 pm EST, and Saturday, 10:00 am to 3:00 pm EST.

More about Laurel Road

Laurel Road is the national online lending division of Darien Rowayton Bank and is therefore regulated by the FDIC.

Darien Rowayton Bank was established in 2006. Since then, Darien Rowayton Bank has helped thousands of professionals with graduate and undergraduate degrees across the country to refinance and consolidate over $2.5 billion in federal and private school loans.

Darien Rowayton Bank is a Connecticut-chartered bank, Member FDIC, and an Equal Housing/Opportunity Lender.

Feel free to visit the Laurel Road website for more information.

Laurel Road contact information

Now that you’ve read this Laurel Road student loan review, you can begin the refinancing process. If you are thinking of refinancing your student loans or are a current customer, you can get in touch with Laurel Road in several ways.

You can call them at (855) 245-0989 during their business hours listed above. You may also email them at help@laurelroad.com. For regular mail, their address is:

Laurel Road
P.O. Box 191
Bridgeport, CT 06601

You can also follow Laurel Road on social media through Facebook, Twitter, and LinkedIn.

Interested in refinancing student loans?

Here are the top 6 lenders of 2018!
LenderVariable APREligible Degrees 
Get real rates from up to 4 Lenders at once

Check out the testimonials and our in-depth reviews!
1 Important Disclosures for Laurel Road.

Laurel Road Disclosures

  1. VARIABLE APR – APR is subject to increase after consummation. The variable interest rates are based on a Current Index, which is the 1-month London Interbank Offered Rate (LIBOR) (currency in US dollars), as published on The Wall Street Journal’s website. The variable interest rates and Annual Percentage Rate (APR) will increase or decrease when the 1-month LIBOR index changes.

2 Important Disclosures for SoFi.

SoFi Disclosures

  1. Student Loan RefinanceFixed rates from 3.999% APR to 7.804% APR (with AutoPay). Variable rates from 2.480% APR to 7.524% APR (with AutoPay). Interest rates on variable rate loans are capped at either 8.95% or 9.95% depending on term of loan. See APR examples and terms. Lowest variable rate of 2.480% APR assumes current 1 month LIBOR rate of 2.07% plus 0.91% margin minus 0.25% ACH discount. Not all borrowers receive the lowest rate. If approved for a loan, the fixed or variable interest rate offered will depend on your creditworthiness, and the term of the loan and other factors, and will be within the ranges of rates listed above. For the SoFi variable rate loan, the 1-month LIBOR index will adjust monthly and the loan payment will be re-amortized and may change monthly. APRs for variable rate loans may increase after origination if the LIBOR index increases. The SoFi 0.25% AutoPay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. *To check the rates and terms you qualify for, SoFi conducts a soft credit inquiry. Unlike hard credit inquiries, soft credit inquiries (or soft credit pulls) do not impact your credit score. Soft credit inquiries allow SoFi to show you what rates and terms SoFi can offer you up front. After seeing your rates, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit inquiry. Hard credit inquiries (or hard credit pulls) are required for SoFi to be able to issue you a loan. In addition to requiring your explicit permission, these credit pulls may impact your credit score
  2. Terms and Conditions Apply: SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. To qualify, a borrower must be a U.S. citizen or permanent resident in an eligible state and meet SoFi’s underwriting requirements. Not all borrowers receive the lowest rate. To qualify for the lowest rate, you must have a responsible financial history and meet other conditions. If approved, your actual rate will be within the range of rates listed above and will depend on a variety of factors, including term of loan, a responsible financial history, years of experience, income and other factors. Rates and Terms are subject to change at anytime without notice and are subject to state restrictions. SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers such as Income Based Repayment or Income Contingent Repayment or PAYE. Licensed by the Department of Business Oversight under the California Financing Law License No. 6054612. SoFi loans are originated by SoFi Lending Corp., NMLS # 1121636. (www.nmlsconsumeraccess.org)

3 Important Disclosures for CommonBond.

CommonBond Disclosures


4 Important Disclosures for Citizens Bank.

Citizens Bank Disclosures

  1. Education Refinance Loan Rate DisclosureVariable rate, based on the one-month London Interbank Offered Rate (“LIBOR”) published in The Wall Street Journal on the twenty-fifth day, or the next business day, of the preceding calendar month. As of August 1, 2018, the one-month LIBOR rate is 2.07%. Variable interest rates range from 2.72%-8.17% (2.72%-8.17% APR) and will fluctuate over the term of the borrower’s loan with changes in the LIBOR rate, and will vary based on applicable terms, level of degree earned and presence of a cosigner. Fixed interest rates range from 3.50%-8.69% (3.50% – 8.69% APR) based on applicable terms, level of degree earned and presence of a cosigner. Lowest rates shown require application with a cosigner, are for eligible, creditworthy applicants with a graduate level degree, require a 5-year repayment term and include our Loyalty discount and Automatic Payment discounts of 0.25 percentage points each, as outlined in the Loyalty and Automatic Payment Discount disclosures. The maximum variable rate on the Education Refinance Loan is the greater of 21.00% or Prime Rate plus 9.00%. Subject to additional terms and conditions, and rates are subject to change at any time without notice. Such changes will only apply to applications taken after the effective date of change. Please note: Due to federal regulations, Citizens Bank is required to provide every potential borrower with disclosure information before they apply for a private student loan. The borrower will be presented with an Application Disclosure and an Approval Disclosure within the application process before they accept the terms and conditions of their loan.
  2. Federal Loan vs. Private Loan Benefits: Some federal student loans include unique benefits that the borrower may not receive with a private student loan, some of which we do not offer with the Education Refinance Loan. Borrowers should carefully review their current benefits, especially if they work in public service, are in the military, are currently on or considering income based repayment options or are concerned about a steady source of future income and would want to lower their payments at some time in the future. When the borrower refinances, they waive any current and potential future benefits of their federal loans and replace those with the benefits of the Education Refinance Loan. For more information about federal student loan benefits and federal loan consolidation, visit http://studentaid.ed.gov/. We also have several resources available to help the borrower make a decision at http://www.citizensbank.com/EdRefinance, including Should I Refinance My Student Loans? and our FAQs. Should I Refinance My Student Loans? includes a comparison of federal and private student loan benefits that we encourage the borrower to review.
  3. Citizens Bank Education Refinance Loan Eligibility: Eligible applicants may not be currently enrolled, must be in repayment of their existing student loan(s) and must make the minimum number of payments after leaving school. Primary borrowers must be a U.S. citizen, permanent resident or resident alien with a valid U.S. Social Security Number residing in the United States. Resident aliens must apply with a co-signer who is a U.S. citizen or permanent resident. The co-signer (if applicable) must be a U.S. citizen or permanent resident with a valid U.S. Social Security Number residing in the United States. For applicants who have not attained the age of majority in their state of residence, a co-signer will be required. Citizens Bank reserves the right to modify eligibility criteria at anytime. Interest rate ranges subject to change. Education Refinance Loans are subject to credit qualification, completion of a loan application/consumer credit agreement, verification of application information, certification of borrower’s student loan amount(s) and highest degree earned.
  4. Loyalty Discount Disclosure: The borrower will be eligible for a 0.25 percentage point interest rate reduction on their loan if the borrower or their co-signer (if applicable) has a qualifying account in existence with us at the time the borrower and their co-signer (if applicable) have submitted a completed application authorizing us to review their credit request for the loan. The following are qualifying accounts: any checking account, savings account, money market account, certificate of deposit, automobile loan, home equity loan, home equity line of credit, mortgage, credit card account, or other student loans owned by Citizens Bank, N.A. Please note, our checking and savings account options are only available in the following states: CT, DE, MA, MI, NH, NJ, NY, OH, PA, RI, and VT and some products may have an associated cost. This discount will be reflected in the interest rate disclosed in the Loan Approval Disclosure that will be provided to the borrower once the loan is approved. Limit of one Loyalty Discount per loan and discount will not be applied to prior loans. The Loyalty Discount will remain in effect for the life of the loan.
  5. Automatic Payment Discount Disclosure: Borrowers will be eligible to receive a 0.25 percentage point interest rate reduction on their student loans owned by Citizens Bank, N.A. during such time as payments are required to be made and our loan servicer is authorized to automatically deduct payments each month from any bank account the borrower designates. Discount is not available when payments are not due, such as during forbearance. If our loan servicer is unable to successfully withdraw the automatic deductions from the designated account three or more times within any 12-month period, the borrower will no longer be eligible for this discount.
  6. Co-signer Release: Borrowers may apply for co-signer release after making 36 consecutive on-time payments of principal and interest. For the purpose of the application for co-signer release, on-time payments are defined as payments received within 15 days of the due date. Interest only payments do not qualify. The borrower must meet certain credit and eligibility guidelines when applying for the co-signer release. Borrowers must complete an application for release and provide income verification documents as part of the review. Borrowers who use deferment or forbearance will need to make 36 consecutive on-time payments after reentering repayment to qualify for release. The borrower applying for co-signer release must be a U.S. citizen or permanent resident. If an application for co-signer release is denied, the borrower may not reapply for co-signer release until at least one year from the date the application for co-signer release was received. Terms and conditions apply.
  7. Average savings based on 18,113 actual customers who refinanced their federal and private student loans through our Education Refinance Loan between January 1, 2017 and December 31, 2017. The calculation is derived by averaging the monthly savings of Education Refinance Loan customers whose payments decreased after refinancing, which is calculated by taking the monthly student loan payments prior to refinancing minus the monthly student loan payments after refinancing. The borrower’s savings might vary based on the interest rates, balances and remaining repayment term of the loans they are seeking to refinance. The borrower’s overall repayment amount may be higher than the loans they are refinancing even if their monthly payments are lower.
2.57% – 5.87%Undergrad
& Graduate
Visit Earnest
2.80% – 6.38%1Undergrad
& Graduate
Visit Laurel Road
2.48% – 7.52%2Undergrad
& Graduate
Visit SoFi
2.47% – 7.99%Undergrad
& Graduate
Visit Lendkey
2.57% – 6.65%3Undergrad
& Graduate
Visit CommonBond
2.72% – 8.17%4Undergrad
& Graduate
Visit Citizens
Our team at Student Loan Hero works hard to find and recommend products and services that we believe are of high quality and will make a positive impact in your life. We sometimes earn a sales commission or advertising fee when recommending various products and services to you. Similar to when you are being sold any product or service, be sure to read the fine print understand what you are buying, and consult a licensed professional if you have any concerns. Student Loan Hero is not a lender or investment advisor. We are not involved in the loan approval or investment process, nor do we make credit or investment related decisions. The rates and terms listed on our website are estimates and are subject to change at any time. Please do your homework and let us know if you have any questions or concerns.