Earnest vs Laurel Road: Which refinancing lender is right for you?
For borrowers seeking to lower their interest rates or modify their repayment terms, Earnest and Laurel Road consistently rank among the top contenders in the student loan refinancing market. If you are looking for a quick answer on which to choose: Earnest is generally better for borrowers who want maximum flexibility over their monthly payment amount and loan term length. Laurel Road is often the superior choice for healthcare professionals, including doctors and nurses, due to specialized pricing and residency deferment options.
Both lenders are reputable, FDIC-insured bank affiliates (Earnest is a subsidiary of Navient; Laurel Road is a brand of KeyBank) that offer competitive rates and a digital-first experience. However, their underwriting models and borrower benefits cater to slightly different financial profiles. Whether you are a recent graduate managing your own debt or a parent looking to refinance Parent PLUS loans, understanding these nuances is essential to securing the best possible deal.
In this guide, you will learn exactly how these two lenders compare regarding interest rate methodologies, eligibility criteria, repayment flexibility, and unique perks. We will break down the specific trade-offs of each option, helping you decide which lender aligns best with your financial goals.
Why it matters: refinancing impact on your bottom line
Choosing the right refinancing partner is about more than just a slightly lower interest rate—it can determine your financial flexibility for the next decade. Refinancing high-interest debt could potentially save you $5,000 to $20,000+ over the life of your loan, depending on your balance and the rate reduction you secure.
However, it is critical to remember the trade-off: Refinancing federal loans with a private lender means giving up federal protections, including income-driven repayment (IDR) plans and Public Service Loan Forgiveness (PSLF). If you have a stable income and do not plan to utilize these federal programs, the savings from a lower private rate can be substantial. By comparing Earnest and Laurel Road carefully, you ensure you aren’t just saving money, but also selecting the repayment terms that keep your monthly budget manageable.
Quick comparison: Earnest vs Laurel Road at a glance
To help you make an initial assessment, we have compiled the core features of both lenders. While both offer competitive products with no origination fees, their approach to loan terms and borrower limits differs.
| Feature | Earnest | Laurel Road |
|---|---|---|
| Fixed APR Range | 4.99% – 9.99% | 5.24% – 9.75% |
| Variable APR Range | 5.89% – 9.89% | 5.99% – 9.90% |
| Loan Terms | Customizable (5–20 years) | Standard (5, 7, 10, 15, 20 years) |
| Min. Refinance Amount | $5,000 | $5,000 |
| Max. Refinance Amount | $500,000 | Unlimited (based on creditworthiness) |
| Autopay Discount | 0.25% | 0.25% (plus extra for KeyBank clients) |
| Cosigner Release | Must refinance to release | Yes, after 36 on-time payments |
| Standout Feature | Precision Pricing (pick your payment) | Special rates for healthcare pros |
Source: Earnest and Laurel Road official websites (data effective as of January 2025)
Key Differentiator: Earnest stands out for its “Precision Pricing,” allowing you to customize your monthly payment down to the penny, which adjusts your term length accordingly. Laurel Road distinguishes itself with uncapped borrowing limits and specialized programs for the medical community.
Interest rates: how Earnest and Laurel Road determine your rate
While the table above shows the range of available rates, the specific rate you are offered depends on how each lender analyzes your financial profile. This underwriting process is where the two lenders diverge significantly.
According to Earnest’s official website as of January 2025, their underwriting model looks beyond just a credit score. They utilize a “merit-based” system that evaluates your full financial picture. This includes your savings patterns, education, earning potential, and career trajectory. This approach is designed to help financially responsible borrowers who might have a thin credit history but a strong financial future secure a lower rate.
Earnest offers a standard 0.25% interest rate reduction when you enroll in Auto Pay. Because they view your budget holistically, they may offer competitive rates to borrowers with slightly lower credit scores if other financial markers—like cash reserves or 401(k) contributions—are strong.
Laurel Road utilizes a more traditional underwriting model but places a heavy emphasis on your profession and degree. They are particularly aggressive in pricing for borrowers with advanced degrees, such as MBAs, JDs, and medical degrees. For healthcare professionals, Laurel Road is often the market leader, offering specific rate reductions that other lenders do not match.
According to Laurel Road’s official website as of January 2025, in addition to the standard 0.25% autopay discount, they offer loyalty discounts. As a brand of KeyBank, they provide additional rate reductions (often up to 0.25% more) if you open a qualifying checking account with KeyBank. This “relationship banking” model can drive your effective interest rate lower than almost any other competitor if you are willing to switch your banking services.
According to Mark Kantrowitz, financial aid expert, “Private lenders sometimes offer benefits like autopay discounts or career support.” These small percentage points can add up to significant savings over the life of a loan, so checking your rate with both lenders is a smart move to see which underwriting model favors your specific profile.
For more details on how these figures are calculated, you can read our guide on understanding student loan interest rates.
Loan terms and amounts: flexibility options compared
Once you understand the rates, the next critical factor is the structure of the loan itself. The length of your loan term directly impacts your monthly payment and the total interest you will pay over time.
Earnest offers a feature that is unique in the refinancing space: the ability to choose your exact loan term. Instead of forcing you into 5, 10, or 15-year buckets, Earnest allows you to use a slider to select a monthly payment that fits your budget. The system then calculates the precise term length required to meet that payment, such as 7 years and 4 months.
This flexibility is incredibly valuable for borrowers who want to pay off debt as fast as possible without overextending their monthly budget. You can set the payment to the maximum amount you can comfortably afford, minimizing total interest costs without being locked into a standard term that might be slightly too aggressive.
Laurel Road sticks to standard fixed terms, typically offering 5, 7, 10, 15, and 20-year options. While less customizable than Earnest, these standard terms are sufficient for most borrowers. Where Laurel Road excels is in loan limits. They have no maximum loan amount for qualified borrowers. This makes them an excellent choice for medical school graduates, dentists, or law school graduates who may have debt loads exceeding $300,000 or even $500,000—amounts that might hit the cap at other lenders.
Both lenders have a minimum refinancing amount of $5,000, making them accessible for those with smaller remaining balances. When choosing your term, remember that a shorter term results in a higher monthly payment but significantly less interest paid over time. You can learn more about this trade-off in our article on choosing the right loan repayment term.
Eligibility requirements: who qualifies for each lender?
Before applying, it is helpful to know if you meet the basic criteria. Both lenders target creditworthy borrowers, but their specific thresholds vary.
According to Earnest’s official website as of January 2025, they generally require a minimum credit score of 650. However, because of their holistic underwriting, they may approve a borrower with a 650 score who has excellent savings habits over a borrower with a 680 score who lives paycheck to paycheck. They also look for a history of on-time payments and no recent bankruptcies.
Laurel Road typically requires a slightly higher credit score, often looking for 660 or above. Their model is heavily weighted toward debt-to-income (DTI) ratio and credit history. However, for medical residents and fellows, Laurel Road has specialized underwriting that allows for higher DTI ratios, recognizing that a resident’s current income does not reflect their future earning power.
According to Earnest’s official website as of January 2025, they require a minimum income of $35,000. Both lenders require proof of employment or a firm job offer. Laurel Road does not publicly state a specific minimum income but generally looks for sufficient income to cover debts and living expenses. Both lenders require borrowers to be U.S. citizens or permanent residents.
To refinance with either lender, you typically must have graduated from a Title IV accredited institution. Laurel Road is particularly strict about this, as their business model focuses on degree-holding professionals. Earnest also requires a completed degree for refinancing but is slightly more flexible regarding the types of schools accepted.
According to Betsy Mayotte, student loan expert, “Private loans can make sense for students who have strong credit or a creditworthy cosigner.” If you are on the borderline of these requirements, adding a cosigner can be a decisive factor in getting approved.
Cosigner options and release policies
If your credit score or income isn’t quite high enough to qualify for the lowest rates on your own, applying with a creditworthy cosigner can help. However, the long-term goal for most borrowers is to eventually remove the cosigner from the loan obligation.
According to Laurel Road’s official website as of January 2025, they offer a clear, defined cosigner release policy. Borrowers can apply to release their cosigner after making 36 consecutive, on-time monthly payments. To qualify for the release, the primary borrower must meet Laurel Road’s underwriting and credit criteria on their own at the time of the request. This provides a clear light at the end of the tunnel for parents or guardians who want to help a graduate refinance but don’t want the debt on their credit report forever.
Earnest takes a different approach. For their refinancing product, they generally do not offer a traditional “cosigner release” where the cosigner is simply removed from the existing loan. Instead, Earnest encourages borrowers to apply to refinance the loan solely in their own name once they are eligible. While the result is effectively the same—the cosigner is off the hook—it does require undergoing the application process again to create a new loan. This distinction is important to note if you prefer a seamless, administrative release process rather than a new application.
Repayment flexibility: deferment, forbearance, and payment options
Life is unpredictable, and knowing how your lender handles financial bumps in the road is crucial. While private lenders do not offer the same extensive protections as the federal government, both Earnest and Laurel Road offer hardship programs.
Both lenders offer forbearance options for borrowers facing economic hardship, such as involuntary job loss. Typically, this allows you to pause payments for 1 to 3 months at a time, with a cap on the total forbearance time allowed over the life of the loan (usually 12 months). Interest continues to accrue during this time.
According to Earnest’s official website as of January 2025, they offer a unique “Skip-A-Payment” feature. Once every 12 months, borrowers in good standing can request to skip a monthly payment. The skipped payment is moved to the end of the loan term, and interest continues to accrue, but it provides immediate cash flow relief without the need to apply for formal hardship forbearance. This is excellent for unexpected expenses like car repairs or medical bills.
According to Laurel Road’s official website as of January 2025, they offer a specific program allowing residents and fellows to pay as little as $100 per month during their training period (up to 4 years). Interest accrues, but this keeps payments manageable until the borrower transitions to a full attending physician salary. This feature alone often makes Laurel Road the default choice for medical professionals.
It is important to reiterate that neither lender offers income-driven repayment plans. If your income is unstable or you rely on federal IDR plans to keep payments affordable, you should carefully consider the risks before refinancing. You can review the protections you would be giving up in our federal loans guide.
Borrower benefits and perks: what else do you get?
Beyond the loan terms, both lenders offer perks that add value to the customer experience.
- Bi-weekly Payments: Earnest makes it easy to set up bi-weekly autopayments. This strategy helps you pay off your loan faster and reduces total interest paid without feeling like a burden.
- No Fees: According to Earnest’s official website as of January 2025, they charge no origination fees, no prepayment penalties, and notably, no late fees. This is rare in the industry and provides peace of mind if a payment is accidentally missed by a day or two.
- Dashboard Usability: Their user interface is widely praised for being intuitive, modern, and easy to navigate.
- Referral Bonuses: Laurel Road has a robust referral program that can earn you cash for referring friends who also refinance.
- Financial Planning: Customers often get access to financial resources and premium banking services through KeyBank.
- GradFin: According to Laurel Road’s official website as of January 2025, they offer access to GradFin, a service that helps borrowers analyze their student loan forgiveness options (specifically PSLF) before they refinance, ensuring they don’t accidentally refinance loans that should have remained federal.
Application process and customer experience
Both lenders operate as digital-first platforms, meaning the application process is streamlined and efficient.
Checking Your Rate: Both Earnest and Laurel Road allow you to check your preliminary rate in about 2-3 minutes using a “soft credit pull.” This means you can see your estimated interest rate and terms without impacting your credit score. A “hard credit pull” is only performed if you choose an offer and proceed to finalize the loan.
Speed to Funding: Once you upload your documents (pay stubs, loan statements, ID), approval can happen in as little as 24 to 48 hours. Both lenders typically pay off your old lenders within 3 to 10 business days.
Customer Service: Earnest offers support via email, phone, and chat, with a reputation for a highly responsive “Client Happiness” team. Laurel Road also provides phone and online support, with specialized representatives available for their healthcare banking clients.
Which lender is right for you? Ideal borrower profiles
Based on the detailed comparison above, here is a framework to help you decide.
- You want budget precision: You want to pick an exact monthly payment that fits your budget, even if it results in an odd loan term (e.g., 8 years).
- You have a “thin” credit file but good habits: You have great savings and a steady job, but your credit history isn’t long enough for traditional banks.
- You value flexibility: You want the option to skip a payment once a year for unexpected costs.
- You hate fees: You want the assurance of never being charged a late fee.
- You work in healthcare: You are a doctor, dentist, nurse, or PA. The specialized rates and residency deferment options are unmatched.
- You have a very high balance: You need to refinance more than $500,000 in student debt.
- You are open to switching banks: You are willing to bank with KeyBank to unlock extra interest rate discounts.
- You need a clear cosigner release: You want a defined path to release your cosigner after 36 months without refinancing again.
Since checking your rate doesn’t hurt your credit score, the smartest move is often to get quotes from both. Compare the actual numbers side-by-side to see which lender favors your specific financial profile.
Compare rates from Earnest, Laurel Road, and other top lenders
Frequently asked questions
Yes, both Earnest and Laurel Road allow you to consolidate federal and private student loans into a single refinanced loan. This simplifies your finances into one monthly payment, but remember that refinancing federal loans turns them into private loans, permanently removing federal benefits.
No. Both lenders use a soft credit inquiry to provide you with rate estimates. This does not appear on your credit report or affect your score. A hard credit inquiry, which may temporarily lower your score by a few points, only occurs if you accept an offer and sign the final loan documents.
Generally, no. Both Earnest and Laurel Road typically require you to have graduated with a degree to be eligible for refinancing. However, Earnest does offer separate “in-school” private student loans for current students, which is a different product than refinancing.
Both lenders offer hardship forbearance options that allow you to temporarily pause payments if you lose your job involuntarily. However, interest will continue to accrue during this pause, and the duration of forbearance is limited (usually up to 12 months total over the life of the loan).
Conclusion
Refinancing is a powerful tool to reduce interest costs and gain control over your monthly budget. When choosing between these two industry leaders, keep these final points in mind:
- Earnest is the leader in flexibility, offering precision pricing and a holistic underwriting approach that benefits financially responsible borrowers with diverse backgrounds.
- Laurel Road is the powerhouse for healthcare professionals and high-balance borrowers, offering specialized terms and unlimited refinancing amounts.
- Cosigner policies differ: Laurel Road offers a release after 36 payments; Earnest generally requires you to refinance again to remove a cosigner.
- No downside to checking: You can view personalized rates from both lenders in minutes without impacting your credit score.
Now that you understand the differences, the next step is to see the numbers. By taking a few minutes to request personalized offers, you can confirm exactly how much you could save.
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