Finance a large purchase or refinance student loans with this highly rated bank.
Laurel Road (formerly DRB) is nationwide bank offers refinancing and debt consolidation options to college graduates working within their field as well as personal loans with terms of up to five years.
First, do I qualify?
To qualify for a Laurel Road loan, you must at least:
- Be a US citizen or Green Card holder.
- Live in the US.
- Have a steady source of income.
- Need to borrow least $1,000.
What types of loans does Laurel Road offer?
Laurel Road’s main loan options are student loan refinancing and a more traditional loan for unrestricted personal use.
- Student loan refinancing. Choose from fixed- and variable-rate loans of up to 20 years to consolidate federal, private or Parent PLUS debt.
- Personal loans. Get a three-, four- or five-year term loan at fixed rates starting at 5.75%, depending on the loan you choose.
Compare Laurel Road loan offers
What makes Laurel Road unique?
Laurel Road specializes in student loan finance with the belief that all students should be rewarded for their hard work with low interest rates and few drawbacks. Laurel Road student loan refinancing comes with no maximum, so those with large amounts of student loan debt can refinance them all in one place.
Laurel Road’s personal loans are also on par with competitors, and the lender sweetens the deal for those who work in the medical profession with an additional rate discount.
How much will it cost me to borrow with Laurel Road?
You won’t pay an origination fee with Laurel Road, and you’re not subject to prepayment penalties if you find yourself able to pay off your loan early.
For student refinancing, there’s no limit as to how much debt you can consolidate — from $5,000 to whatever loan satisfies your needs, depending on your creditworthiness. Fixed rates start at 4.20%, and variable rates start at 3.64%.
For personal loans, you choose from among three-year loans with rates from 5.75%, four-year loans with rates from 6.25% and five-year loans with rates from 6.75%. You can get a further 0.25% discount on your rate by signing up for autopay or indicating that you’re a medical professional.
As with all personal loans, the rate that you’re ultimately offered will depend on your creditworthiness, your specific loan needs and more.
Are the Laurel Road personal loans safe?
How’s its online reputation?
Laurel Road itself doesn’t have a Better Business Bureau profile but its parent company Darien Rowayton Bank does. It’s not BBB-accredited and gets an A- rating, based on six customer complaints, all of which are private but it addressed.
It only has two BBB reviews and both are negative: One person complained that their student loan application spent months in the underwriting process, the other said it took four months for their funds to be disbursed.
Conversations in online forums were a bit more favorable. When one Reddit user asked if they should use Laurel Road or Earnest to refinance their student loans, they were advised to go with Laurel Road. Others agreed that Laurel Road tended to offer lower rates than its competitors.
Our takeaway: It might take a long time to go through, but it’s inexpensive.
How do I apply for a Laurel Road loan?
Any working professional who has taken a student loan out for undergraduate or graduate study should qualify for a Laurel Road loan. It also provides refinancing to parents who’ve taken out high-interest Parent PLUS loans to fill in tuition gaps. Like student loan refinancing, personal loans are open to all US citizens or permanent residents with a valid I-551 card. Your creditworthiness, income and debt also factor into your application.
To apply for either loan, go to Laurel Road’s website and complete the short prequalification application. You’ll indicate the loan you’re interested in and then upload documents that could include:
- Government-issued photo ID.
- Two recent pay stubs.
- Loan statements, including payoff amounts.
- Proof of graduation.
Once Laurel Road makes its decision, you’ll receive a letter with your rate and disclosure information. The final step is accepting the loan’s terms and signing your promissory note.
Benefits and drawbacks of Laurel Road loans
- No origination fees or prepayment penalties. You won’t be penalized for paying off your loan early.
- Allows cosigners. If you don’t meet Laurel Road’s credit requirements on your own, a cosigner could improve your likelihood of approval.
- Student hardship leniency. Student loan refinancing comes with the potential to postpone payments if you become unemployed or experience unforeseen financial problems.
- Autopay discount. Get a 0.25% discount on your rate when you sign up for autopay.
- Easy online application. Complete a short application to learn the fees and terms you qualify for.
- No cosigner release on refinancing. Cosigners to the student loan refinancing option cannot be removed until it’s paid off.
- Laurel Road account may be required for autopay discount. For student loan refinancing, you must open an approved checking account.
- Less information about personal loan offer. You’ll find fees and other information for the student loan refinancing option on Laurel Road’s website, but not for the personal loan. Take caution if you don’t fully understand the terms before accepting an offer.
Laurel Road understands that student loans can be a huge burden on recent graduates, and its personal loan discounts for medical professionals is a plus.
However, depending on your creditworthiness and loan needs, you could find a lower rate on a traditional personal loans with another lender. Be sure to compare the rates and terms of other loan options before you sign a contract.
Common questions about Laurel Road
Can I refinance federal and private student loans?
Yes, you can refinance both types of loans with Laurel Road. However, if you refinance your federal student loans, then you lose the advantages of federal student loan repayment or forgiveness alternatives.
Can I refinance with Laurel Road if I’ve already refinanced with another lender?
Yes, you can refinance with Laurel Road and potentially save more money with lower interest rates.
Does Laurel Road offer forbearance options if I become unemployed?
Yes, if you’re struggling financially, Laurel Road can choose a full or partial forbearance for one or more three-month time frames. Specific qualifications for economic hardships qualify, and verification of job loss is required.
If I have already accepted another personal loan. Can I still apply for one with Laurel Road?
Yes. You can even use a Laurel Road personal loan to pay off an existing loan with another provider. Before you do, make sure your original loan doesn’t leave you on the hook for early repayment or other fees.
Do I need a cosigner for a loan with Laurel Road?
No, you do not need a cosigner. However, if you do not meet Laurel Road’s credit criteria, a cosigner could improve your chances of loan approval.
Before you visit Laurel Road..
The most qualified applicants have a minimum credit score of 680. Laurel Road tends to be best for people with annual income above $60,000 and total debt of less than 40% their income. If you don’t think Laurel Road is best for you, explore other loan options.