Laurel Road Student Loan Refinancing Review

Loans, Student Loans
darien-rowayton-bank-student-loan-review

Laurel Road is Darien Rowayton Bank’s student loan refinancing arm. It offered education loan refinancing under DRB branding until June 2017.

Like many student loan refinance lenders, Laurel Road refinances loans borrowed for undergraduate or graduate degrees, and loans that parents borrowed to pay for their children’s education. It caters to health professionals, in particular, by letting doctors and dentists refinance during residency.


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AT A GLANCE

  • Fixed rates: 4.20% to 7.20% APR. Variable rates: 3.76% to 6.42% APR.
  • Available loan terms: 5, 7, 10, 15 and 20 years
  • Eligible loan balances: $5,000, up to the full amount of outstanding student debt

Note: When borrowers refinance a federal student loan, they lose access to federal loan perks including income-driven repayment and loan forgiveness programs. They should weigh this tradeoff carefully.

Do you qualify?

 Minimum qualificationsThe typical borrower
Credit scoreHigh 600s750+
Annual incomeNo requirement$100,000+
Debt-to-income ratio43% or less30% or less
EducationBachelor’s degree or higher from a Title IV schoolBachelor’s degree or higher from a Title IV school

» COMPARE: Student loan refinancing options

Where Laurel Road student loan refinancing shines

Borrowers can refinance a parent loan in their name: Laurel Road is among only a few lenders that lets parents transfer a loan to their child’s name. This is a good option for parents who took out federal or private loans to help their child pay for college, but no longer want to bear responsibility for the debt. To refinance a parent loan in a child’s name with Laurel Road, the child has to qualify based on factors including his or her credit and income.

Perks for medical and dental residents: Laurel Road allows some doctors and dentists to pay just $100 per month during residency. However, any unpaid interest that accrues during that time will be capitalized, or added to the borrower’s loan balance, at the end of the reduced payment period. This means they will owe more overall on the loan.

Where Laurel Road student loan refinancing falls short

No co-signer release: Unlike many other lenders, Laurel Road doesn’t let borrowers remove a co-signer from its refinanced loans. However, it may release the co-signer and forgive all or part of the loan if the borrower who refinanced dies or becomes permanently disabled.

Loan details

Fees: No origination fees or prepayment penalties.

Loan servicer: Mohela

Deferment and forbearance: Borrowers facing economic hardship can get up to 12 months of partial or full forbearance at Laurel Road’s discretion. They need to document their hardship to qualify.

Next steps

It’s smart to compare refinance offers before choosing a lender. If you’re ready to refinance with Laurel Road, apply directly on its website. It will perform a soft credit pull, which won’t appear on your credit report, to estimate your interest rate if you were to refinance. Submitting a final application will lead to a hard credit inquiry, as it would with other lenders. You’ll need the following when you apply:

  • Government-issued photo ID, such as a driver’s license or passport
  • Payoff statements for the loans you want to refinance
  • Two most recent pay stubs or two years of tax returns, plus proof of any other income you’d like Laurel Road to consider

Teddy Nykiel and Brianna McGurran are staff writers at NerdWallet, a personal finance website. Email: teddy@nerdwallet.com. Twitter: @teddynykiel. Email: bmcgurran@nerdwallet.com. Twitter: @briannamcscribe.

Updated on June 30, 2017.