Refinancing your student loans can help you save a substantial amount of money by the time you’ve cleared off your debt completely. There are many student loan lenders that will help you refinance your student loans. One great company to check out is Laurel Road.
Here are 10 things you should know about student loan refinancing through Laurel Road.
Special Consideration for Health Professionals
Laurel Road offers general student loan refinancing, as well as refinancing for Parent PLUS loans. But what sets them apart from most other lenders is that it is one of few that offer extra-special loan refinancing deals to health professionals in particular.
Laurel Road refinances student loans for health professionals as soon as they enroll into their residency or fellowship program. This means medical and dental residents do not have to wait to begin practicing before being able to get their student debt refinanced. They can do this while they are still in residency saving them a significant amount of money.
Residents can put off making full payments on their loan for a period of up to 6 months after their residency and fellowships. The total loan term including residency, fellowship and grace period should not exceed 20 years.
Flexible Refinancing Options to Suit Different Circumstances
When looking for refinancing options, the last thing you want is to be stuck with a one-size-fits-all solution. This won’t happen with Laurel Road. Here you will find customized solutions to suit your unique circumstances so you can refinance your student debt in a way that is most beneficial to you.
You can also refinance student loans that were earlier refinanced with another lender.
Rate Inquiries Will Not Damage Your Credit
Hard credit checks are usually unavoidable when looking for refinancing deals with private lenders. Unfortunately, they can damage your credit score. Laurel Road helps you get tailored rate estimates from multiple lenders by pulling a soft credit check so your credit remains intact. A hard check is only done during the processing stage after you’ve finalized an offer.
No Hidden Fees
Application, origination, and other miscellaneous processing fees can add a significant amount to your total debt. With Laurel Road you do not have to worry about application, disbursement, or any other hidden fees.
Potential Interest Rate Reduction
You can get a 0.25% reduction on your quoted interest rate by setting up automatic payments.
Choosing the variable rate option will generally get you started at the lowest interest rate but this will fluctuate continuously right through the life of the loan depending on market conditions. If you’d prefer stable, consistent payments instead, opt for the fixed rate option.
Multiple Loan Terms and Amounts
The minimum amount you can refinance is $5,000. There is no maximum limit. The minimum and maximum amounts are subject to meeting the underwriting criteria.
You can choose from several refinancing terms from 1 year up to 20 years. This is great because you can choose a shorter or longer term to adjust the monthly payment amounts to suit your budget.
Unparalleled Borrower Protections Against Unforeseen Financial Hardships
Generally, it is not advisable to refinance federal student loans because you lose all borrower protections associated with the loan, including options for deferment, forbearance, and income-driven repayment plans. Laurel Road softens the loss by offering a few great borrower protections options if you find yourself in a tough spot.
If you are a recent graduate looking to refinance your student debt during the grace period itself, Laurel Road will honor that commitment and defer your payments till after completion of the original grace period.
Their forbearance option allows you to postpone your monthly payments in 3-month increments.
If you die or become permanently disabled, the total amount of your refinanced student debt will be forgiven.
Very few other lenders offer these types of borrower protections.
To qualify for Laurel Road student loan refinancing, you must meet these requirements:
- Be a US citizen or permanent resident with a valid I-551 card
- Graduated and completed at least an undergraduate degree
- Have a minimum student loan amount of $5,000
- Possess student loans that were used for eligible higher education expenses
- Have student loans in grace or repayment status but not in default
- Earn an annual income of $60,000 or higher
The Application Process
The entire application is completed online in a pretty quick process that involves 4 straightforward steps. You receive the pre-approved rates within a few minutes after submitting your completed form.
- Step 1: Fill out the application form with your your education, loan, and employment details. You will also need to authorize a soft credit pull so that you can get appropriate conditional rate offers that are customized to your financial situation.
- Step 2: Upload your supporting documents to receive final loan terms and rates. Keep these handy when filling out your application—government-issued photo ID, student loan statements including payoff amounts, proof of graduation, and two recent income stubs.
- Step 3: Select your loan term and type.
- Step 4: Accept the terms of the loan, and e-sign the promissory note, disclosure and other documents provided in the dashboard.
After you’ve completed the application process and signed the necessary documents, Laurel Road will pay off your student loans to your current lenders and give you detailed instructions for how to proceed.
The first payment to Laurel Road will be due one month from the date of disbursement.
Laurel Road Review: Recap
So let’s recap the benefits of refinancing student loans with Laurel Road.
- You can refinance both federal and private student loans through Laurel Road.
- There are no application, origination, or disbursement fees.
- There is no maximum limit to the amount you can refinance (minimum of $5,000).
- Setting up autopay will earn you an additional 0.25% reduction on the interest rate quoted.
- The terms are flexible with multiple refinancing options and payment terms to choose from so you can plan your payments to suit your financial situation.
- There are no prepayment penalties.
- You can refinance loans that are already refinanced with another lender.
- PLUS loans can be refinanced and transferred to the student.
- Laurel Road offers unparalleled borrower protections.
- Borrowers from all 50 states can apply for student loan refinancing through Laurel Road.
- A cosigner is not necessary unless you fall short of their qualifying criteria.
- However, if you do have a cosigner, Laurel Road offers a cosigner release program.
Is Refinancing Student Loans With Laurel Road Right For You?
Despite their few drawbacks, Laurel Road offers several great benefits, which make them a very attractive option for student loan refinancing. It is especially highly recommended for medical students in residency or fellowship.
Before you choose Laurel Road, or any other student loan lender, be sure you’ve done your homework. It’s important to compare rates, terms, and repayment options. College Raptor can help you do just that! With our free Student Loan Finder you can compare lenders and rates side by side so you can find the ideal student loan for you.