Laurel Road Student Loans Reviews
About Laurel Road Student Loans
Established in 2006, Laurel Road is the national online lending division of Darien Rowayton Bank. The aim of Laurel Road is to help you be debt-free, enabling you to stay focused on the future.
It is not easy to achieve financial freedom, but with Laurel Road, their belief is to enable the determined and focused individuals to achieve this freedom.
With carefully crafted loans with low rates, personalized service and streamlined processes enabled by proprietary technology, Laurel Road makes your financial journey easier. On top of that, as an online division of Darien Rowayton Bank, it is also FDIC insured.
A thousand professionals with both graduate and undergraduate degrees have benefited from Darien Rowayton Bank across the country in saving borrowers thousands of dollars each by refinancing and consolidation of over $2.5 billion in federal and private school loans.
By using cutting-edge technology, personalized customer service and offering low rates, Laurel Road makes refinancing your students loans a seamless process.
With only three easy steps, you will be able to refinance your student loan. By filling an online short form, you discover your rates options instantly. The second step is you upload your documents to help verify your identity and the desired student loan.
In the third step, if you are approved, you will be sent your final rates, terms and applicable disclosures. If you accept the terms, you will then e-sign a promissory note. Moreover, everything is done online.
You are able to save big as well as skip unnecessary fees or repayment penalties. Thus, as a result, you will be able to save more. In addition, for one year, you get a Laurel Road student loan forbearance at Laurel Road discretion.
Not only that, you get a 0.25% discount if monthly payments are made automatically from your bank account.
How Does it Work?
For rate estimation, you are required to enter private information that includes your social security number, employment status and education details. Laurel Road uses a method known as soft credit pull for rate estimation.
Select an Interest Rate Type and a Term
You will be given two options for your interest rate type: these are the fixed rate, or a variable rate. The fixed rate does not change throughout the period of your loan repayment, while the variable rate can change monthly, depending on the market fluctuations.
For their loan term options, they offer 5, 7, 10, 15 and 20 years. If you want a custom term to say 3 years, you have to contact them after submitting your online application.
Complete Your Application
On this step, you are required to give a little bit more information about your income, employment and housing status in order for them to know more about you.
An Optional Step (Add Co-signer)
A co-signer is someone who guarantees the loan for you. For you to be eligible for a lower rate, it is advised that you add a co-signer by entering their details, for example, email and phone number.
Instructions will be sent to the co-signer and he or she will complete them from their end.
Request to Upload Any Other Necessary Document
You are required to upload a 30-day payoff statement for the student loan you need to refinance.
Some of the other necessary documents that you may be asked to upload include:
- most recent and consecutive pay slips
- a contract or an offer letter as a proof of income
- verification of your education.
If you are self-employed, all you need is a profit and loss statement. An optional document is required to prove your identity too - either your license, passport, or a state-issued ID card.
Hard Credit Pull Agreement
Before approving your loan, it is normal for lenders to do a hard credit check. This may slightly hurt your credit score though.
Cost and Price Plans
Easy management of finances and affordability are among the top reasons as to why you must refinance your student loans. Laurel Road student loans refinancing gives you two interest options that are the fixed or variable interest rate.
A fixed rate will give you stability, as the rate does not change. However, if you desire or need to quickly pay your loans off, then a low variable rate can work well for you. That said, the current Laurel Road interest rates are:
Variable: 2.99% - 6.42% APR
Fixed: 3.50% - 6.99% APR
Variable rates are a bit lower, but because of the fluctuations of the economy sometimes, the rates may increase. Laurel Road assures you that the interest will never increase to more than 9% or 10% though.
On missing payment 15 days after your due date, you are charged a 5% or a $28 late fee. In addition, failure to clear your payment because of insufficient fees in your account will lead to a charge of $20.
If you have a question, simply search the FAQ page on their website to try and find the answer. However, if that doesn’t help, you are able to send an email to the customer support team via their online contact form.
It is important to note that they caution you against sending them confidential information, such as social security numbers via the form. That said, you may also reach them by phone at 1-855-245-0989.
Student loan refinancing is a good way of saving money on interest, but it is important to consider it carefully. If you have federal student loans and you want to refinance, it means you will miss out on forgiveness or income-driven repayment options.
In case of hard times, Laurel Road offers some perks and protections. For example, you are able to postpone your monthly payments for one or more 3-month periods. However, you are not able to postpone for more than 12 months in the aggregate.
Unfortunately, if you have poor credit and an insecure job situation, then maybe refinancing is not for you.
Competitors and Alternatives
If you compare Laurel Road vs Sofi vs Earnest vs Lendkey, you will see that they are competitors that offer similar services in loan refinancing. If you want to explore more alternatives in the market, check their websites and see their options.
Where to Buy?
By going directly to their website at www.laurelroad.com, you will be able to get all their services there.
Laurel Road offers a ton of perks, for example, the no application and no origination fees. They also offer very competitive rates in the market, making your decision of choosing Laurel Road when refinancing your student loans, a very good one.