SoFi vs Laurel Road: A clear comparison

A federal student loan is the first pick when you are planning to borrow for your college expenses. But if you have already taken a maximum of federal student loans and still are in requirement of monetary support then you will be left with the option of private student loans. There are a number of private lenders who offer private student loans and student loan refinancing. Choosing one among them is a crucial task. So we are here to help you out. In this article, we take you through the comparison made between SoFi and Laurel Road.

Table of Contents

SoFi vs Laurel Road
About SoFi
About Laurel Road
Pros and Cons of SoFi
Pros and Cons of Laurel Road
Concluding Thoughts

SoFi vs Laurel Road

Here is a table indicating the various terms of Laurel Road and SoFi- how they differ from each other and what similarities they hold together.

Basis of Comparison	Laurel Road	SoFi
Variable APR	1.99 - 6.65%	2.48% to 7.52% APR
Fixed APR	3.50 - 7.02%	3.99% – 7.80% APR
Minimum Amount	$5,000	$5,000
Maximum Amount	No maximum	No maximum
Terms of loan?	5 to 20 years	5 to 20 years
State Residency	All states eligible	All states eligible
Degree required?	Bachelor's or higher	Associates or higher
Employment Requirements	Must be employed or have an offer	Employed or hold an offer to commence in 90 days
Interest-Only Payments	No	No
Origination Fees and Prepayment Penalties?	None	None
Option for Cosigner?	Yes	Yes
Option to release a Cosigner?	Varies for each case	No
Interest rate deduction on Auto-Pay?	Yes	Yes
Credit check required?	Yes	Yes
Unemployment Protection	Yes	Yes

As you have noted that the services are so similar yet different in terms of the important requirements like the maximum amount of loan that they refinance, condition of release of a cosigner, their eligibility in the states and few more.

Searching for ways to pay off your college tuition? Learn about Best Student Loans. Now!

About SoFi

SoFi was founded in 2011 at SanFransisco.Its founders came up with this institution to help the students who were in need. Over time SoFi has not only restricted its services to students but has widened them for other borrowers also. Sofi by far being the leading lending firm, provides personal loans, student loans, mortgage refinancing, student loan refinancing and more. To keep up its primary motto to serve students in need, it offers students with various benefits on their loans. Knowing more about SoFi Student Loans might be useful for you to decide on the lender options.

About Laurel Road

Laurel Road was started as a digital lending platform by the Laurel Road Bank in 2013. They have successfully consolidated and refinanced more than $4 billion student loans in total. On top of refinancing student loans, they also offer graduate loans, mortgages and personal loans. They also offer a personalized experience for their customers through their secured digital platform.

On April 3, 2019, Laurel Road was acquired by KeyBank from Laurel Road Bank as a strategy to expand its digital capabilities. The brand name remains the same even though the acquisition includes the digital platform and not the Laurel Road Bank itself.

With their remarkable records in consolidation and refinancing, Laurel Road Student loan refinancing has been one of the top choices.

Pros and Cons of SoFi

In order to know more about SoFi, the following are the pros and cons which can help you make a decision about refinancing with it-

Pros

Its quick pre-application form will help you get the various details of refinancing without affecting your credit score
Option for deferment is available if you are facing a financial problem, your interest will accrue for that time but your amount of the loan will be re-amortized to make adjustments
Services for job placements, mock interview sessions are the plus that SoFi offers when you go for refinancing options with it
It offers services for wealth planning also, in case you are refinancing the loans of your child, SoFi will help you in planning for your wealth as well
An invitation to the community events that SoFi conducts like dinners, yoga sessions, workshops, etc.
It also provides career coaching in case you have involuntarily lost your job or looking for a change, assistance regarding how you can improve in getting a better opportunity

Cons

No cosigner release option is available, the cosigner will be there for the life of your loan
Even if you have attended school or college but do not hold a degree, you cannot qualify for refinancing your loan with SoFi
The minimum credit score that you hold should be more than 650, otherwise, it will not consider your loan refinancing application

Pros and Cons of Laurel Road

Pros

Laurel Road allows you to refinance parent PLUS loans in your name.
Refinancing available for medical and dental residents.
A hard credit check is not mandatory to see if you will qualify for the student loan refinancing program at Laurel Road.

Cons

Payment postponement isn’t available if borrowers return to school.

Concluding Thoughts

Laurel Road and SoFi are being well-known lenders as both of them have good offers and student loan refinancing at lower rates when compared to other private lenders. Except for a few features, both have similar core characteristics. When interest rates are considered Laurel Road might take an over edge with slightly lesser rates when compared to SoFi. The interest rate alone doesn’t decide which lender is better, and between these two lenders, it is hard to choose. You can go for either of them depending on your convenience and requirements. These are not the only options either, there are also other good companies to refinance your student loans whom you need to explore.