Refinancing with Laurel Road
Refinancing rates from 1.89% APR. Checking your rates won’t affect your credit score.
Note that the situation for student loans has changed due to the impact of the coronavirus outbreak and relief efforts from the government, student loan lenders and others. Check out our Student Loan Hero Coronavirus Information Center for additional news and details.
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An increasing number of companies are interested in helping you refinance education debt, and one of the newer options is U-fi student loans.
U-fi is a partnership between Union Bank and Nelnet, a well-known originator and servicer, that could help you adjust and simplify your debt repayment. This U-fi student loan refinancing review can help you decide if it’s the right company for you.
U-fi refinancing is a good fit for borrowers with solid credit seeking longer repayment terms (20 to 25 years). The company stands out for serving customers who didn’t graduate and offering repayment protections in the form of forbearance and cosigner release.
U-fi student loan refinancing review
When you refinance your debt through U-fi, your current student loans are replaced with one new loan. Because U-fi offers private refinancing, you will lose access to federal protections and programs if you refinance federal student loans with this program.
In some cases, though, you might not need access to programs like income-driven repayment or Public Service Loan Forgiveness (PSLF). If refinancing can save you significant money and you have a steady income, it could make more financial sense to do so. Carefully evaluate your options and situation to see if refinancing is right for you.
Here are the key characteristics of U-fi student loan refinancing…
- Fixed and variable interest rates
- Check your rate without harming your credit report
- Refinance between $5,000 and $125,000 (borrowers with undergraduate degrees), $175,000 (graduate, doctorate or MBA degrees) or $500,000 (graduate health professions degrees)
- Repayment terms of 5, 7, 10, 15, 20 and 25 years available
- Enroll in autopay and lower your interest rate by 0.25 percentage points
- Release your cosigner (if you have one) after two years of prompt payments
- Pause your repayment for up to two years over the life of your loan in cases of economic hardship
- Assume responsibility for your parent’s PLUS Loans
Here are some of the upsides to choosing U-fi for refinancing your student debt:
When you decide to refinance student loans, it’s wise to shop around with at least a few different banks, credit unions and online lenders. This way, you can find the lowest possible interest rate and best overall loan.
U-fi student loans are a good contender for the comparison-shopping process because they allow you to prequalify, with or without a cosigner. After entering some basic information and submitting to a soft credit check, you’ll see what rates and terms are available. Then you can compare these details with offers from competing refinance lenders.
Once you are ready to file a formal application with U-fi, however, you’ll be asked for additional information, including:
- Employment details, plus proof of income
- Loan details, including debt payoff letters
If your parent had borrowed federal Parent PLUS Loans on your behalf, refinancing with U-fi could be your way of paying them back. The student loan company allows you to assume responsibility for PLUS Loan repayment by lumping this debt into your newly consolidated loan.
U-fi is one of many lenders that allow you to refinance parent loans in your name.
Unfortunately, it doesn’t provide the option for spousal consolidation loans.
Qualifying borrowers can choose from one of six different repayment term options:
- 5 years
- 7 years
- 10 years
- 15 years
- 20 years (when refinancing $25,000 or more)
- 25 years (when refinancing $75,000 or more, and picking a variable interest rate)
This degree of choice is greater than many competitors, who sometimes don’t offer terms spanning longer than 15 years.
With that said, keep in mind that the longer your repayment term, the more interest you’ll pay over time. That could make U-fi’s 20- and 25-year term options less attractive.
Student Loan Comparison Calculator
Should you lose your job or suffer another economic hardship during repayment on a U-fi student loan, you could postpone payments temporarily. In fact, U-fi allows its customers to pause monthly dues for up to two years over the life of a loan.
If your career is on shaky ground, consider U-fi among other refinancing companies with job loss protection.
If a cosigner helps you qualify for U-fi student loan refinancing, they won’t have to stick around until you’re student debt-free. U-fi’s cosigner release policy allows you to thank your loan guarantor and send them on their way after 24 months of on-time payments.
If your potential cosigner is willing to help but doesn’t want to put their credit at risk long-term, U-fi could be the right lender for your situation.
Just be sure your cosigner meets the student loan company’s eligibility criteria:
- U.S. citizen or permanent resident
- Annual income of at least $36,000
- Strong credit history
And now, let’s turn to some drawbacks to U-fi refinancing:
Here’s the problem with U-fi interest rate ranges: The ceiling is competitive, but the floor can be beat.
The interest rate you end up with on your student loan refinancing depends on a number of factors, including:
- Your credit
- Whether or not you have a cosigner
- The highest level of education you have
U-fi student loan refinancing rates are also quoted depending on your selected repayment term. Here are the interest-rate ranges as of Sept. 15, 2020:
|5 years||3.10%-4.86%||2.10%- 4.80%|
|7 years||3.33%-5.09%||3.42%- 5.18%|
|As of Sept. 15, 2020|
Like with other loans, variable interest rates can rise or fall, based on what’s happening in the market. That makes fixed rates a safer, smarter option for many borrowers.
To find lenders with lower interest rates, check out our marketplace of refinancing options.
U-fi is among few companies that refinance student loans for borrowers who didn’t leave school with a degree. That’s enough to make it a top option for borrowers who didn’t graduate.
You simply must have entered a grace period or started repayment on your education debt, and no longer be enrolled more than part-time.
With that said, U-fi’s other eligibility requirements aren’t as forgiving:
- U.S. citizenship or permanent residency with a valid Social Security number
- Be the age of majority in your state
- Have an annual income of at least $36,000
- Have a credit score or 680 or more
Also, loans weren’t available in Vermont, at least as of Sept. 15, 2020.
If you don’t meet U-fi’s criteria, you might find a better lender for your situation.
|Not a U.S. citizen?||Prodigy Finance is among lenders assisting international borrowers.|
|Don’t have income of at least $36,000?||SoFi doesn’t set a minimum income requirement|
|Don’t have a credit score of 680?||Earnest sets its threshold at 650|
Is U-fi student loan refinancing right for you?
There’s a lot to like about U-fi student loan refinancing, from its prequalification process to its options for repayment terms, forbearance and cosigner release. It’s even accessible to creditworthy applicants who didn’t receive a college diploma.
Like all refinancing companies, however, U-fi has some shortcomings too. The bottom of its interest rate ranges aren’t the most competitive. Plus, some of its eligibility requirements are restrictive to the average student loan borrower.
Weigh the pros and cons of U-fi refinancing, but don’t forget to compare it to other lenders as well. You might find a lower rate and better overall loan elsewhere. Start your search with our top recommended lenders for student loan refinancing.
Andrew Pentis contributed to this report.
Interested in refinancing student loans?Here are the top 6 lenders of 2020!
|Lender||Variable APR||Eligible Degrees|
|1.99% – 5.64%1||Undergrad & Graduate|
|1.89% – 5.90%2||Undergrad & Graduate|
|2.25% – 6.09%3||Undergrad & Graduate|
|1.89% – 6.77%4||Undergrad & Graduate|
|2.39% – 6.01%||Undergrad |
|1.99% – 5.41%5||Undergrad & Graduate|
|Check out the testimonials and our in-depth reviews! |
1 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.
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 September 9, 2020. Information and rates are subject to change without notice.
3 Important Disclosures for SoFi.
4 Important Disclosures for Splash Financial.
Splash Financial Disclosures
Terms and Conditions apply. Splash reserves the right to modify or discontinue products and benefits at any time without notice. Rates and terms are also subject to change at any time without notice. Offers are subject to credit approval. To qualify, a borrower must be a U.S. citizen or permanent resident in an eligible state and meet applicable underwriting requirements. Not all borrowers receive the lowest rate. Lowest rates are reserved for the highest qualified borrowers. If approved, your actual rate will be within a range of rates and will depend on a variety of factors, including term of loan, a responsible financial history, income and other factors. Refinancing or consolidating private and federal student loans may not be the right decision for everyone. Federal loans carry special benefits not available for loans made through Splash Financial, for example, public service loan forgiveness and economic hardship programs, fee waivers and rebates on the principal, which may not be accessible to you after you refinance. The rates displayed may include a 0.25% autopay discount.
The information you provide to us is an inquiry to determine whether we or our lenders can make a loan offer that meets your needs. If we or any of our lending partners has an available loan offer for you, you will be invited to submit a loan application to the lender for its review. We do not guarantee that you will receive any loan offers or that your loan application will be approved. Offers are subject to credit approval and are available only to U.S. citizens or permanent residents who meet applicable underwriting requirements. Not all borrowers will receive the lowest rates, which are available to the most qualified borrowers. Participating lenders, rates and terms are subject to change at any time without notice.
To check the rates and terms you qualify for, Splash Financial conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, the lender will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.
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 September 10, 2020.
5 Important Disclosures for CommonBond.
Offered terms are subject to change and state law restriction. Loans are offered by CommonBond Lending, LLC (NMLS # 1175900), NMLS Consumer Access. 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 0.16% effective August 10, 2020.