Refinancing with Laurel Road
Refinancing rates from 1.99% APR. Checking your rates won’t affect your credit score.
The median student loan debt for nurse practitioners and other graduate nursing students was between $40,000 and $54,999 in 2016, according to the American Association of Colleges of Nursing. But for nurse practitioner Schauren Hinson, that number was even higher.
After graduating, Hinson held a whopping $140,000 in nursing student loans. With such a large debt burden, her $80,000 per year salary wasn’t enough to make much of a dent in her debt.
Unwilling to let her undergraduate and nursing school student loans take over her life, Hinson found ways to lower the interest rate on her student loans and pay off $70,000 in one year. Here are five core strategies she used:
When it came time to get an advanced degree, the choice was easy for Hinson. Duke University was her first choice — and while it was an attractive option, the university’s high cost of attendance wiped out her savings. But despite her misgivings about student debt, Hinson had to take out loans to pay for her education.
“It’s a great school,” she said. “It’s worth the cost. But I just didn’t have the money to pay for it.”
With her savings gone, she had a tough decision to face.
“I was working as a nurse at the hospital at the time,” Hinson recalled. “Even with my income, a grant from the nursing school and two scholarships, I still couldn’t pay for my degree. I was talking to a coworker about it, and she told me to just take the loan so I could complete my degree faster.”
Even though Hinson qualified for federal loans, the interest rates were still high. “I had eight different loans in total,” she said. “The interest on three of them was 8.50%. The others were 6.80%.”
While the median student loan debt for nurse practitioners goes up to about $55,000, Hinson’s loan balance was ultimately $140,000 when she graduated.
After her loan grace period ended, the minimum monthly payment on Hinson’s loans was nearly $1,800. Even with her high starting salary of $80,000, the minimum payment was difficult for Hinson to afford.
Although she tried to keep on the 10-year standard repayment plan, the monthly bill was too high. Hinson applied for an income-driven repayment (IDR) plan, which made her payments more affordable. But, there was a drawback: While the payments were easier for her, interest kept building.
“Every time I made a payment [under the IDR plan], I saw that my balance grew,” she said.
Her payment wasn’t enough to cover the interest charges, so the balance increased with time. Hinson realized that it would take 20 to 25 years to eliminate her loans under the IDR plan.
With a sense of urgency to pay off her loans, Hinson researched alternative options for student loan repayment. She learned about student loan refinancing and how it could reduce her rates so that more of her monthly payments went to her principal. With a lower rate, she could pay off her loans faster.
When you refinance a student loan, you take out a new loan to pay for some or all of your current student loans. The new loan can have a different interest rate, repayment term and minimum payment.
Although it can help some people pay off their debt faster, refinancing does have its drawbacks, particularly if you have federal loans.
“It was a little scary,” Hinson said. “By [refinancing student loans], you lose all these federal benefits and protections. But I decided that the risk was worth it to get rid of them faster.”
Hinson shopped around with several different lenders before deciding on Earnest. Not only did they offer her a great interest rate — about 3.00% — but she felt more comfortable with them as a company.
Other lenders had offered Hinson a loan with very little information, which made her nervous about scams. Earnest, however, required more information and documentation, which made her feel the company was legitimate — “Their process was a little more rigorous, which was reassuring.”
With a lower rate, Hinson was motivated to pay off her debt as fast as possible. She also started working several side hustles so she could pay more toward her loan.
“I had three jobs at the time and I just put every extra dollar toward my loans,” she said. On top of her job as a nurse practitioner, she also worked on weekends at a local clinic and did home visits. Between her jobs, she was able to put an extra $4,000 per month toward her loans.
“It was a bit lonely,” Hinson said. “I’d work my job, then head straight to my home visit job for a few hours. And my weekends were spent at the clinic. There wasn’t time for much else.”
But although her schedule was grueling, her hard work paid off — in one year, she paid off nearly $70,000 in student loans.
Hinson managed to pay off her loans in just six years, including the time she spent on an IDR plan. Even though she no longer has student loans, she hasn’t been able to convince herself to give up all of her side hustles yet.
“Not having $140,000 on my shoulders is amazing,” she said. “I feel much more freedom. But I’m still working weekends at the clinic so I can pay off my car sooner and save up an emergency fund.”
For others facing the burden of student loans, Hinson recommends facing it head on.
“I believe your debt is like a ‘your house is on fire’ emergency,” she said. “Don’t spend a dime on anything other than basics and put everything else toward your debt so it’s out of your life.”
If you’re ready to take charge of nursing student loans or any other kind of student debt like Hinson did, check out our ultimate guide to paying off your student loans faster.
Rebecca Safier contributed to this article.
Interested in refinancing student loans?Here are the top 6 lenders of 2020!
|Lender||Variable APR||Eligible Degrees|
|1.99% – 7.10%1||Undergrad & Graduate|
|1.99% – 6.65%2||Undergrad & Graduate|
|1.99% – 6.24%3||Undergrad & Graduate|
|2.39% – 6.01%||Undergrad |
|1.99% – 5.64%4||Undergrad & Graduate|
|3.18% – 6.06%5||Undergrad & Graduate|
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1 Important Disclosures for Splash Financial.
Splash Financial Disclosures
Splash Financial loans are available through arrangements with lending partners. Your loan application will be submitted to the lending partner and be evaluated at their sole discretion. For loans where a credit union is the lender, or a purchaser of the loan, in order to refinance your loans, you will need to become a credit union member.
The Splash Student Loan Refinance Program is not offered or endorsed by any college or university. Neither Splash Financial nor the lending partner are affiliated with or endorse any college or university listed on this website.
You should review the benefits of your federal student loan; it may offer specific benefits that a private refinance/consolidation loan may not offer. If you work in the public sector, are in the military or taking advantage of a federal department of relief program, such as income based repayment or public service forgiveness, you may not want to refinance, as these benefits do not transfer to private refinance/consolidation loans.
Splash Financial and our lending partners reserve the right to modify or discontinue products and benefits at any time without notice. To qualify, a borrower must be a U.S. citizen and meet our lending partner’s underwriting requirements. Lowest rates are reserved for the highest qualified borrowers. This information is current as of May 1, 2020.
Fixed APR: Annual Percentage Rate [APR] is the cost of credit calculating the interest rate, loan amount, repayment term and the timing of payments. Fixed Rate options range from 2.88% (without autopay) to 7.27% (without autopay) and will vary based on application terms, level of degree and presence of a co-signer. Rates are subject to change without notice. Fixed rate options without an autopay discount consist of a range from 2.88% per year to 6.21% per year for a 5-year term, 3.40% per year to 6.25% per year for a 7-year term, 3.45% to 5.08% for a 8-year term, 3.89% per year to 6.65% per year for a 10-year term, 4.18% per year to 5.11% per year for a 12-year term, 4.20% per year to 7.05% per year for a 15-year term, or 4.51% per year to 7.27% per year for a 20-year term, with no origination fees. The fixed interest rate will apply until the loan is paid in full (whether before or after default, and whether before or after the scheduled maturity date of the loan).
Variable APR: Annual Percentage Rate [APR] is the cost of credit calculating the interest rate, loan amount, repayment term and the timing of payments. Variable rate options range from 1.99% (with autopay) to 7.10% (without autopay) and will vary based on application terms, level of degree and presence of a co-signer. Our lowest rate option is shown with a 0.25% autopay discount. Our highest rate option does not include an autopay discount. The variable rates are based on the Variable rate index, is 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 April 27, 2020, the one-month LIBOR rate is 0.43763%. The interest rate on a variable rate loan is comprised of an index and margin added together. The margin is a fixed amount (disclosed at the time of your loan application) added each month to the index to determine the next month’s variable rate. Variable rate options without an autopay discount consist of a range from 2.01% per year to 6.30% per year for a 5-year term, 4.00% per year to 6.35% per year for a 7-year term, 2.09% per year to 3.92% per year for a 8-year term, 4.25% per year to 6.40% per year for a 10-year term, 2.67% per year to 4.56% per year for a 12-year term, 3.44% per year to 6.65% per year for a 15-year term, 4.75% per year to 6.93% per year for a 20-year term, or 5.14% per year to 7.10% for a 25-year term, with no origination fees. APR is subject to increase after consummation. Variable interest rates 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 co-signer. The maximum variable rate may be between 9.00% and 16.00%, depending on loan term. The floor rate may be between 0.54% and 4.21%, depending on loan term. These rates are 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.
2 Important Disclosures for Laurel Road.
Laurel Road Disclosures
All credit products are subject to credit approval.
Laurel Road began originating student loans in 2013 and has since helped thousands of professionals with undergraduate and postgraduate degrees consolidate and refinance more than $4 billion in federal and private school loans. Laurel Road also offers a suite of online graduate school loan products and personal loans that help simplify lending through customized technology and personalized service. In April 2019, Laurel Road was acquired by KeyBank, one of the nation’s largest bank-based financial services companies. Laurel Road is a brand of KeyBank National Association offering online lending products in all 50 U.S. states, Washington, D.C., and Puerto Rico. All loans are provided by KeyBank National Association, a nationally chartered bank. Member FDIC. For more information, visit www.laurelroad.com.
As used throughout these Terms & Conditions, the term “Lender” refers to KeyBank National Association and its affiliates, agents, guaranty insurers, investors, assigns, and successors in interest.
Assumptions: Repayment examples above assume a loan amount of $10,000 with repayment beginning immediately following disbursement. Repayment examples do not include the 0.25% AutoPay Discount.
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 one-month London Interbank Offered Rate (“LIBOR”) and changes in the LIBOR 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%.
KEYBANK NATIONAL ASSOCIATION RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE.
This information is current as of June 23, 2020. Information and rates are subject to change without notice.
3 Important Disclosures for SoFi.
4 Important Disclosures for Earnest.
To qualify, you must be a U.S. citizen or possess a 10-year (non-conditional) Permanent Resident Card, reside in a state Earnest lends in, and satisfy our minimum eligibility criteria. You may find more information on loan eligibility here: https://www.earnest.com/eligibility. Not all applicants will be approved for a loan, and not all applicants will qualify for the lowest rate. Approval and interest rate depend on the review of a complete application.
Earnest fixed rate loan rates range from 2.98% APR (with Auto Pay) to 5.79% APR (with Auto Pay). Variable rate loan rates range from 1.99% APR (with Auto Pay) to 5.64% APR (with Auto Pay). For variable rate loans, although the interest rate will vary after you are approved, the interest rate will never exceed 8.95% for loan terms 10 years or less. For loan terms of 10 years to 15 years, the interest rate will never exceed 9.95%. For loan terms over 15 years, the interest rate will never exceed 11.95% (the maximum rates for these loans). Earnest variable interest rate loans are based on a publicly available index, the one month London Interbank Offered Rate (LIBOR). Your rate will be calculated each month by adding a margin between 1.82% and 5.50% to the one month LIBOR. The rate will not increase more than once per month. Earnest rate ranges are current as of July 31, 2020, and are subject to change based on market conditions and borrower eligibility.
Auto Pay discount: If you make monthly principal and interest payments by an automatic, monthly deduction from a savings or checking account, your rate will be reduced by one quarter of one percent (0.25%) for so long as you continue to make automatic, electronic monthly payments. This benefit is suspended during periods of deferment and forbearance.
The information provided on this page is updated as of 7/31/2020. Earnest reserves the right to change, pause, or terminate product offerings at any time without notice. Earnest loans are originated by Earnest Operations LLC. California Finance Lender License 6054788. NMLS # 1204917. Earnest Operations LLC is located at 302 2nd Street, Suite 401N, San Francisco, CA 94107. Terms and Conditions apply. Visit https://www.earnest.com/terms-of-service, email us at [email protected], or call 888-601-2801 for more information on our student loan refinance product.
© 2020 Earnest LLC. All rights reserved. Earnest LLC and its subsidiaries, including Earnest Operations LLC, are not sponsored by or agencies of the United States of America.
5 Important Disclosures for CommonBond.
Offered terms are subject to change. Loans are offered by CommonBond Lending, LLC (NMLS # 1175900). If you are approved for a loan, the interest rate offered will depend on your credit profile, your application, the loan term selected and will be within the ranges of rates shown. All Annual Percentage Rates (APRs) displayed assume borrowers enroll in auto pay and account for the 0.25% reduction in interest rate. All variable rates are based on a 1-month LIBOR assumption of 0.18% effective July 10, 2020.