SoFi vs Laurel Road: A clear comparison

Know about SoFi and Laurel Road. Have a look at the comparison made between Sofi and Laurel Road and also understand the pros and cons of SoFi and Laurel Road.

Updated by Kanishkar P on 14th February 2020

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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

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.


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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.

Contact information

If you wish to get in touch with SoFi you can use the following - 

Telephone number - 855-456-7634

E-mail - customerservice@sofi.com

Address

MOHELA

PO Box 1022

Chesterfield, MO 63006-1022

If you wish to get in touch with Laurel Road you can use the following -

Telephone number -(855) 245-0989

E-mail-help@laurelroad.com

Address-

Laurel Road

P.O. Box 191

855 Main St

Bridgeport, CT 06601