Laurel Road Review: Graduate Loans & Refinancing for Med Students
What we like:
Economic hardship support
| Fixed APR | 3.50% – 7.02% |
| Variable APR | 3.23% – 6.65% |
| Loan Terms | 5, 7, 10, 15, 20 years |
| Loan Amounts | $5,000 up to your total outstanding loan balance |
Note: all interest rates include a 0.25% discount for making automatic payments from a bank account.
Laurel Road, a former division of the Darien Rowayton Bank and current member of the KeyBank National Association, is a Connecticut state-charted bank that offers a variety of financial products including student loan refinancing, graduate student loans, personal loans, and mortgages. Established in 2006, this FDIC-insured bank has helped student borrowers refinance and consolidate over $3 billion in private and federal school debt.
Though the company provides loan refinancing products for a variety of student borrowers, including parents of students, they also offer refinancing specifically designed to meet the needs of health professionals during and after their residencies or fellowships. These programs can help ease the burden of those dealing with high medical school bills and the demands of a residency or fellowship program.
In this review:
- Laurel Road Student Loan Refinancing
- Laurel Road Resident Loan Refinancing
- Laurel Road Parent PLUS Loan Refinancing
- Laurel Road Graduate School Student Loans
Laurel Road Student Loan Refinancing
If you’ve earned a degree in an eligible program, a refinancing your loan with Laurel road may be a good option. Here’s what you need to know.
Rates & Fees
- Fixed APR: 3.50% – 7.02%
- Variable APR: 2.5% – 6.65%
- Loan Terms: 5, 7, 10, 15, or 20 years
- Loan Amounts:
- Minimum loan amount of $5,000
- $50,000 maximum for borrowers with associate degrees.
- No maximum for borrowers with a bachelor’s degree or higher
- Fees: No origination fee or prepayment penalties
Note: all interest rates include a 0.25% discount for making automatic payments from a bank account.
Benefits of a Laurel Road Student Loan Refinance
Laurel Road offers competitive refinancing rates, and eligible borrowers who opt for auto-payments can secure variable rates as low as 2.5%, which can lead to significant savings. In addition, there are no origination fees or prepayment penalties.
Because Laurel offers five different repayment terms, you can select a repayment plan that fits your budget. However, if you to struggle with monthly payments at some point during your loan term, you may be eligible for up to 12 months of forbearance, which is available in three-month increments.
Downsides of a Laurel Road Student Loan Refinance
Despite low interest rates, refinancing through Laurel Road is not right for everyone; this is particularly true for borrowers who have an associate degree since they’ll face a lower maximum loan amount of $50,000 and only borrowers with medical-specific degrees will be eligible. Further, borrowers who are not in their final semester or professionally employed will not be approved.
It’s also worth noting that although Laurel Road does allow borrowers to add a cosigner to their application, the cosigner release policy requires that they make at least 36 consecutive, on-time payments before the cosigner can be removed from the loan. Unfortunately, this is a bit longer than other lenders who often have 12- or 24-month policies.
Eligibility
To qualify for Laurel Road Student Loan Refinancing, you must meet the following basic requirements:
- Be a U.S. citizen or permanent resident (green card holder)
- Have a bachelor’s degree or higher from an accredited Title IV institution or receive an associate degree in one of the eligible medical categories.
- Meet the following minimum credit score requirements:
- 660 for applicants with a BA/BS
- 650 for applicants with a graduate degree, not including MD
- 640 for applicants with an MD
- Have a debt-to-income ratio of 43% or less.
If you’ve earned your associate degree and seeking refinancing, your degree must be in one of the following programs to qualify:
- Nursing
- Physical Therapy Assistant
- EMT/Paramedics
- Pharmacy Technician
- Dental Hygiene
- Cardiovascular Technologist (CVT)
- Surgical Technologist
- Diagnostic Medical Sonography
- Nuclear Technician
- Occupational Therapy Assistant
- Radiation Therapy
- Radiologic/MRI Technologist
- Respiratory Therapy
Application Process
If you think Laurel Road may be the right lender to refinance your private or federal student loans, you can complete the following steps:
- Visit the Laurel Road website and submit the online application to receive basic information about the rates and terms for which you may be eligible. This will result in a soft credit inquiry that won’t affect your credit score.
- If approved, upload any supporting documentation, which will trigger the underwriting process and finalization of loan rates and terms.
- Select your desired loan terms and e-sign all required forms and the final loan agreement.
Laurel Road will submit a payment to the existing loan holder, and you will be responsible for making your new payments within 30 days of the loan disbursement date.
Laurel Road Resident Loan Refinancing
If you’re currently going through your residency or fellowship program, Laurel Road may be an especially attractive candidate for loan refinancing. Check out the terms, benefits, and downsides below.
Rates & Fees
- Fixed APR: 3.76% – 7.44%
- Variable APR: 2.86% – 7.10%
- Terms: 5, 7, 10, 15, or 20 years
- Loan Amount: $5,000 minimum; no maximum
- Fees: No origination fee or prepayment penalties
Note: all interest rates include a 0.25% discount for making automatic payments from a bank account.
Benefits of a Resident Loan Refinance
The Laurel Road Resident Loan Refinancing option allows eligible candidates to lower their monthly payments to $100 for the duration of their fellowship or residency. In addition, borrowers can maintain their reduced monthly payments for up to six months following the conclusion of their residency or fellowship.
Similar to the basic student refinancing loan offered by Laurel Road, resident refinancers can also take advantage of flexible repayment terms and up to 12 months of forbearance over the life of the loan.
Downsides of a Resident Loan Refinance
Though credit score requirements are lower for borrowers who have completed or are about to complete a doctoral program, the minimum credit score (640) and debt-to-income ratio (< 43%) requirements may make this loan just out of reach for borrowers who have accumulated a significant amount of medical school debt.
Further, though borrowers can secure low monthly payments during and shortly after their residency or fellowship, after that period they will be required to pay the standard monthly payment as indicated in the initial loan agreement. This can be problematic for borrowers who have not yet accepted a full-time professional position.
Eligibility
Borrowers must meet the following basic eligibility requirements:
- Be a U.S. citizen or permanent resident (green card holder)
- Have graduated from or is in the final semester of a graduate program at a Title IV accredited institution or have an Associate degree in an eligible medical program
- Currently has a credit score of 640 or higher
In addition, Laurel Road also considers the applicant’s income or expected income and their debt-to-income ratio when determining eligibility and rates, though they do not provide specific requirements.
Application Process
- Submit the simple online application to receive basic information about the rates and terms for which you may be eligible. This will result in a soft credit inquiry that won’t affect your credit score.
- If approved, upload any supporting documentation, which will trigger the underwriting process and finalization of loan rates and terms.
- Select your desired loan terms and e-sign the all required forms and the final loan agreement.
Laurel Road will submit a payment to the existing loan holder, and you will be responsible for making your new payments within 30 days of the loan disbursement date.
Laurel Road Parent PLUS Loan Refinancing
If you’re a parent of a graduate of an eligible medical school program, you may also refinance your Parent PLUS loans with Laurel Road — and you won’t be subject to some of the limitations student borrowers face.
Rates & Fees
- Fixed APR: 3.50% – 7.02%
- Variable APR: 2.50% – 6.65%
- Terms: 5, 7, 10, 15, or 20 years
- Loan Amount: $5,000 minimum; no maximum
- Fees: No origination fee or prepayment penalties
Note: all interest rates include a 0.25% discount for making automatic payments from a bank account.
Benefits of Parent PLUS Loan Refinancing
One of the primary benefits of refinancing a Parent PLUS Loan through Laurel Road is the ability to pass the debt on to the student or graduate. To do this, the borrower’s child must be professionally employed, meet the basic lending requirements, and consent to the transfer of debt.
Much like other loans provided by Laurel Road, the Parent PLUS Loan Refinancing loan also provides partial forbearance benefits and allows for a cosigner. This is not always the case for parent borrowers.
Downsides of Parent PLUS Loan Refinancing
While there is some flexibility for borrowers who have advanced degrees, Parent PLUS borrowers must have a credit score of 660 or higher or include a cosigner on the loan. For some borrowers, this may make approval difficult. And although cosigners can be added, they will be required to remain on the loan agreement until the primary borrower makes at least 36 consecutive monthly payments — a relatively long cosigner release requirement.
In addition, Laurel Road requires that all borrowers refinance at least $5,000 in eligible student debt. This can be problematic for parents who have been paying on their existing debt or who did not originally take out more than that amount.
Eligibility
To be eligible for Laurel Road Parent PLUS Loan Refinancing, you must meet the following basic eligibility requirements:
- Be a U.S. citizen or permanent resident (green card holder)
- Have a minimum credit score of 660
- Have a debt-to-income ratio of 43% or less
- Loan must have been for a degree at an accredited Title IV institution
Application Process
If you think Laurel Road may be the right lender to refinance your private or federal Parent PLUS student loans, you can complete the following steps:
- Visit the Laurel Road website and submit the online application to receive basic information about the rates and terms for which you may be eligible. This will result in a soft credit inquiry that won’t be recorded on your permanent credit report.
- If approved, upload any supporting documentation, which will trigger the underwriting process and finalization of loan rates and terms.
- Select your desired loan terms and e-sign the all required forms and the final loan agreement.
Laurel Road will submit a payment to the existing loan holder, and you will be responsible for making your new payments within 30 days of the loan disbursement date.
Laurel Road Graduate School Student Loans
While Laurel Road offers a variety of refinancing options for students and parents who have already accrued student debt, they also offer in-school loans for students enrolled in graduate studies, specifically those pursuing a degree in dentistry (DO, DDS, DMD), law (JD), business (MBA), Engineering, Nursing (DNP, MA), physician’s assistant (PA), or medicine (MD).
Rates & Fees
- Fixed APR: 4.50% – 8.91%
- Variable APR: 4.11% – 8.27%
- Terms: 5, 7, 10, 15, or 20 years
- Loan Amount: Must borrower at least $5,000; no maximum
- Fees: No origination fee or prepayment penalties
Note: all interest rates include a 0.25% discount for making automatic payments from a bank account.
In addition to the basic repayment terms, borrowers also can select one of the following in-school repayment options:
- Full deferment, which will defer interest payments until the end of the grace period (six months after you finish or drop out of the program).
- Flat $50 payments, which require students to make monthly payments in $50 increments until the end of the grace period.
- Interest-only payments, which require borrowers to make interest payments during their enrollment.
- Full principal and interest payments.
Benefits of Laurel Road Graduate Loans
With variable interest rates as low as 4.11%, Laurel Road offers a competitive financing option for students who intend to pursue a degree in one the eligible medical programs at an approved school. In addition, like other loan products offered by Laurel Road, the In-School loan does not have origination fees or prepayment penalties, and borrowers can receive a .25% discount for making auto payments.
Laurel Road also gives students a variety of repayment options, including five repayment terms and four different in-school repayment plans.
Downsides of Laurel Road Graduate Loans
One of the primary downfalls of this specific lending product is that it’s only available to students who are enrolled in specific degree programs at eligible schools. As such, many borrowers will automatically be ineligible for an in-school loan through Laurel Road.
Further, as a private student loan, an Graduate Loans from Laurel Road do not offer the same protections allotted to borrowers who choose federal student loans. This includes student loan forgiveness and income-driven repayment options. As such, we urge borrowers to consider their federal options when making a decision.
Eligibility
To be eligible for a Laurel Road Graduate Loan, you must meet the following basic eligibility requirements:
- Be a U.S. citizen or permanent resident (green card holder)
- Be enrolled in an eligible degree program at an approved school
- Have a minimum credit score of 650
- Have a debt-to-income ratio of 43% or less
- Loan must have been for a degree at an accredited Title IV institution
Application Process
If you think a Laurel Road Graduate Loan may be the right option for you, complete the following steps:
- Check your eligibility by answering a few basic questions on the Laurel Road Graduate Loan web page.
- If eligible, complete the online application to receive preliminary rate quotes. To successfully complete the application, you must be able to provide your enrollment status, expected graduation date, and the total cost of tuition.
- If approved, select the desired loan terms and sign the Laurel Road Approval Disclosure document.
- Once Laurel Road receives the document, they will contact the school for verification and certification, after which they will send the final promissory note and any additional documentation required.
- E-signed to the required documentation, including the promissory note, complete the loan process.
Once you’ve officially accepted the loan, Laurel Road will work directly with your school to disburse the funds.
Bottom Line: Is Laurel Road Right for You?
Laurel Road provides both refinancing and in-school graduate loans for qualified borrowers, and these loan products often come with lower interest rates when compared to top other lenders like SoFi, LendKey, and Earnest.
Since Laurel Road primarily offers student loan financing options for those in the medical field, some applicants may find that they simply don’t meet the requirements. This is particularly true of the in-school Graduate Loan option, which is limited to graduate students who are enrolled in specific medical programs.
Further, though still considered “fair credit,” some borrowers may have a problem meeting the minimum credit score requirements without adding a cosigner to the applicant. This is often the case for young students who have thin or non-existent credit history or medical students who have already accumulated a significant amount of student debt.
Overall, if you’re a medical student and want to refinance your student loans or apply for graduate aid, then Laurel Road’s rates can offer you significant savings. Plus, since Laurel Road uses a soft-credit inquiry to provide initial rate quotes, it doesn’t hurt to visit their site and see if you’re eligible or if their rates and terms are right for you.
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