LendKey vs Laurel Road: Which refinancing lender is right for you?
Short answer: LendKey is best for borrowers who want to compare real rates from multiple credit unions and community banks through a single application. Laurel Road is the ideal choice for healthcare professionals, including nurses and doctors, as well as high-income earners who qualify for specialized rate discounts and streamlined service.
Refinancing student loans is a major financial step that can lower your interest rate, reduce your monthly payment, or help you pay off debt faster. However, not all lenders operate the same way. LendKey and Laurel Road represent two distinct approaches to refinancing: one is a marketplace connecting you to local lenders, and the other is a direct lender with a strong focus on medical professionals.
In this guide, you will learn how their rates, eligibility requirements, and unique borrower benefits compare. We will break down the specific trade-offs of each model so you can decide which lender aligns with your financial goals. Whether you are a parent managing Parent PLUS loans or a graduate handling your own debt, understanding these differences is key to securing the best possible terms for your situation.
Context: How LendKey and Laurel Road differ
Before diving into the numbers, it is essential to understand the structural differences between these two companies, as their business models directly impact your loan experience and the offers you receive.
LendKey operates as a marketplace rather than a direct lender. According to LendKey.com, they partner with over 300 community banks and credit unions across the country. When you submit an application through LendKey, you aren’t borrowing from LendKey itself; instead, you are matched with partner institutions that compete for your business. This model allows borrowers to potentially find lower rates from not-for-profit credit unions that they might not have access to otherwise. It is an excellent option for comparison shoppers who want to see multiple offers without filling out multiple applications.
Laurel Road, on the other hand, is a direct lender and a brand of KeyBank. When you apply with Laurel Road, you are dealing with one institution with a consistent set of underwriting rules and rate tables. Laurel Road has carved out a specific niche in the market by serving healthcare professionals. They are well-known for offering specialized underwriting for medical residents, fellows, and attending physicians, often providing terms that account for the unique career trajectory of medical workers.
For a broader look at how refinancing works before comparing these specific options, check out our guide to student loan refinancing.
LendKey vs Laurel Road: Quick comparison table
To help you make a quick assessment, the table below outlines the core features and differences between these two lenders. This snapshot highlights the distinct focus of each company, particularly regarding their target audiences and rate structures.
| Feature | LendKey | Laurel Road |
|---|---|---|
| Lender Model | Marketplace (Credit Unions/Banks) | Direct Lender (KeyBank) |
| APR Range (Fixed) | ~5.24% – 9.15% | ~5.24% – 9.99% |
| APR Range (Variable) | ~5.50% – 9.25% | ~5.74% – 9.89% |
| Loan Amounts | $5,000 – $125,000 (varies by degree) | $5,000 – Unlimited (based on credit) |
| Loan Terms | 5, 7, 10, 15, 20 years | 5, 7, 10, 15, 20 years |
| Autopay Discount | 0.25% (typical) | 0.25% |
| Key Specialization | Connecting borrowers to local credit unions | Healthcare professionals (Doctors, Nurses, Dentists) |
| Cosigner Release | Varies by partner (12–36 months) | Available after 36 payments |
Source: LendKey.com and LaurelRoad.com (Rates and terms current as of October 2024). Rates include autopay discounts where applicable.
The table reveals that while both lenders offer competitive starting rates, their approach to loan limits and specialization differs. Laurel Road’s “unlimited” maximum loan amount is particularly relevant for medical school graduates with high balances, while LendKey’s credit union network offers a community-focused alternative.
LendKey vs Laurel Road: Rates and discounts
Interest rates are often the deciding factor in refinancing. Because LendKey and Laurel Road operate differently, the way they determine your rate varies.
Interest Rate Ranges
As of October 2024, both lenders offer highly competitive fixed and variable rates. LendKey’s rates are determined by the specific credit union or bank you are matched with. Because credit unions are not-for-profit, they can sometimes offer lower rates than large national banks, especially for borrowers with strong credit profiles. Laurel Road’s rates are set directly by the bank and are often among the lowest in the industry for borrowers with excellent credit and high income.
Discounts Available
According to LendKey.com and LaurelRoad.com, both lenders typically offer a 0.25% interest rate reduction when you enroll in automatic payments. However, Laurel Road offers additional stacking discounts that can significantly lower your cost:
- Loyalty Discount: If you have an eligible checking account with KeyBank, you may qualify for an additional rate discount (often 0.25%).
- Healthcare Pricing: Laurel Road frequently runs special pricing promotions for nurses, physician assistants, and doctors, which can result in rates lower than their standard advertised minimums.
Variable Rate Considerations
If you are considering a variable rate, it is important to understand the index used. LendKey partners may use different indices (like SOFR or Prime) depending on the institution. Laurel Road typically uses a standard index across all loans. For more on how these rates function, read our guide to student loan interest rates.
LendKey vs Laurel Road: Eligibility and requirements
Even the best interest rate is irrelevant if you cannot qualify for the loan. Both lenders generally target borrowers with financial stability, but their specific criteria differ.
Credit Score and History
According to LendKey.com and LaurelRoad.com, both lenders typically require a minimum credit score in the 660 to 680 range, though the most competitive rates are reserved for borrowers with scores of 750 or higher. LendKey’s network of credit unions may occasionally have partners with slightly more flexible underwriting for borrowers who have a strong connection to a specific community or employer group.
Income and Employment
Stable income is a requirement for both. Laurel Road places a heavy emphasis on debt-to-income (DTI) ratio but is unique in its treatment of medical residents. According to LaurelRoad.com, they have a specific program that allows residents to refinance as soon as they match, requiring only a minimal monthly payment (e.g., $100) during training. LendKey generally requires borrowers to be fully employed with verifiable income that supports the new loan payment.
Education Requirements
You must have graduated with a degree to refinance with either lender. LendKey refinances undergraduate and graduate loans. Laurel Road refinances loans for parents and graduates, including associate degrees in specific healthcare fields (like Nursing) and bachelor’s degrees or higher for most other borrowers.
Citizenship
Both lenders typically require borrowers to be U.S. citizens or permanent residents. If you are an international student, you will likely need a qualified U.S. cosigner to be considered by either platform.
For a deeper dive on credit requirements, see our credit score guide for student loans.
Cosigner policies and release options
Many graduates, especially those early in their careers, utilize a cosigner to qualify for refinancing or to secure a lower interest rate. Knowing how—and when—that cosigner can be removed from the loan is a critical detail.
Cosigner Release Policies
Both lenders allow you to apply for a cosigner release, which removes the cosigner’s legal obligation to repay the debt once the primary borrower meets specific criteria.
- Laurel Road: According to LaurelRoad.com, they offer a clear, standardized policy. You can apply to release your cosigner after making 36 consecutive, on-time monthly payments. You must also meet their underwriting criteria for creditworthiness and income on your own at that time.
- LendKey: Because LendKey is a network, the policy varies by the specific lender. As reported by LendKey.com, many partners offer cosigner release after 12 to 36 months of on-time payments, but some partners may not offer it at all. It is crucial to check the specific terms of the loan offer you select.
According to Mark Kantrowitz, financial aid expert, “Cosigner release is a valuable feature offered by some private lenders, rewarding responsible repayment.” This feature protects your family member’s credit in the long run and is a significant advantage over private loans that lock a cosigner in for the life of the loan.
If you are considering applying with a cosigner, review our comprehensive cosigner guide to understand the risks and benefits involved.
Loan terms and repayment flexibility
The structure of your loan determines your monthly obligation and the total interest you will pay over time. Here is how LendKey and Laurel Road compare on flexibility.
Loan Terms
Both lenders offer standard term lengths of 5, 7, 10, 15, and 20 years. Choosing a shorter term (like 5 or 7 years) will increase your monthly payment but significantly reduce your total interest costs. A longer term (15 or 20 years) lowers the monthly bill but increases the total cost of the loan.
Loan Amounts
According to LendKey.com, they typically allow refinancing for amounts between $5,000 and $125,000 for undergraduate degrees, with higher limits often available for graduate degrees (up to $250,000 or more depending on the partner). As reported by LaurelRoad.com, Laurel Road stands out for borrowers with massive debt loads; they have no maximum loan limit for qualified borrowers, making them a top choice for doctors or dentists with balances exceeding $300,000.
Prepayment
Neither lender charges a penalty for paying off your loan early. This means you can select a longer term to keep your required payment low for safety, but pay extra each month to clear the debt faster.
Need help deciding on a timeline? Check out our loan repayment strategies to see how term length impacts your wallet.
Hardship protection and forbearance options
When you refinance federal loans into private student loans, you permanently lose access to federal benefits like Income-Driven Repayment (IDR) plans and Public Service Loan Forgiveness (PSLF). Therefore, the private lender’s hardship protections become your only safety net.
Unemployment Forbearance
Both lenders offer forbearance if you lose your job through no fault of your own, though it is less generous than federal options.
- LendKey: Policies are determined by the individual credit union partner. According to LendKey.com, most offer temporary forbearance in 3-month increments, typically capped at 12 months over the life of the loan.
- Laurel Road: As reported by LaurelRoad.com, they typically offer forbearance in 3-month increments for economic hardship, up to 12 months in total. During this time, interest usually continues to accrue.
Death and Disability Discharge
Both lenders generally offer loan discharge if the primary borrower dies or becomes permanently disabled. This is a standard feature for reputable private lenders but is worth verifying in your final loan agreement.
For a detailed breakdown of what you give up when refinancing, read our federal vs. private loans comparison.
Unique features and borrower benefits
Beyond the numbers, LendKey and Laurel Road offer distinct perks that cater to different types of borrowers.
LendKey: The Community Advantage
LendKey’s primary benefit is access. By aggregating offers from community banks and credit unions, they allow you to support local institutions that often prioritize member service over profit. Borrowers often report a more personal customer service experience compared to massive national banks. Additionally, because you may receive multiple offers from one application, you can see how different credit unions value your credit profile differently.
Laurel Road: The Healthcare Specialist
Laurel Road is arguably the market leader for healthcare professionals. Their standout features include:
- Resident & Fellow Refinancing: Allows residents to pay as little as $100/month during training while interest accrues, preventing the need for full payments on a resident’s salary.
- Specialized Underwriting: They understand that a doctor with $300,000 in debt and a new attending salary is a good risk, whereas a generic algorithm might reject that debt-to-income ratio.
- Relationship Discounts: Significant rate reductions for opening checking or savings accounts with KeyBank.
According to Betsy Mayotte, President of The Institute of Student Loan Advisors, “Private lenders sometimes offer benefits like autopay discounts or career support,” and Laurel Road exemplifies this with their targeted professional programs.
Which lender wins? Category-by-category breakdown
If you are still on the fence, here is a direct breakdown of which lender typically wins in specific categories.
- Winner for Lowest Rates: It Depends. LendKey wins for comparison shoppers because you get multiple bids. Laurel Road wins for high-income earners and KeyBank customers who can stack discounts.
- Winner for Healthcare Professionals: Laurel Road. Their specialized programs for residents and nurses are unmatched in the industry.
- Winner for High Loan Balances: Laurel Road. With no maximum loan limit, they are better suited for medical or law school graduates with substantial debt.
- Winner for Comparison Shopping: LendKey. Their marketplace model does the shopping for you, checking rates at dozens of credit unions instantly.
- Winner for Customer Experience: Tie. LendKey offers personalized credit union service, while Laurel Road offers a slick, digital-first experience backed by a major bank.
Recommendations: Which lender fits your situation?
Based on the data and features analyzed, here is our final recommendation on which lender is likely the better fit for your specific profile.
Choose LendKey if you:
- Want to support credit unions or community banks.
- Prefer to compare multiple real offers from a single application.
- Have a loan balance under $125,000 (for undergraduates) or $250,000 (for graduates).
- Value potential flexibility in underwriting that some credit unions provide.
Choose Laurel Road if you:
- Work in healthcare (physician, dentist, nurse, PA) and want specialized terms.
- Are a medical resident or fellow needing reduced payments during training.
- Have a very high loan balance (over $250,000).
- Are willing to bank with KeyBank to maximize loyalty interest rate discounts.
If you are still unsure if now is the right time to move forward, review our guide on when you should refinance your student loans.
Frequently asked questions
It depends on your career and goals. Laurel Road is generally better for healthcare professionals and those with very high balances. LendKey is better for borrowers who want to compare rates from multiple credit unions to find the best deal.
Both lenders typically look for a credit score of at least 660 to 680. However, to qualify for the lowest advertised rates, you will likely need a score in the mid-to-high 700s and a stable income.
Yes, both lenders allow parents to refinance Parent PLUS loans. This can be a great way to lower the interest rate, which is often higher on federal PLUS loans compared to private refinance rates for creditworthy borrowers.
Yes, both offer it. Laurel Road allows you to apply for release after 36 on-time payments. LendKey’s policy depends on the specific credit union partner you match with, but many offer release after 12 to 36 months.
No. Neither LendKey nor Laurel Road charges application or origination fees for student loan refinancing. The only cost is the interest on the loan.
Choosing between LendKey and Laurel Road ultimately comes down to your borrower profile. Both are reputable, transparent lenders that can help you save thousands of dollars in interest, but they serve different needs.
Key Takeaways:
- LendKey is your gateway to credit unions, offering a marketplace experience that helps you find competitive rates through local institutions.
- Laurel Road is a powerhouse for healthcare professionals, offering tailored programs for residents and unlimited loan caps for high-balance borrowers.
- Both lenders require strong credit and offer soft credit checks, so you can view your rates without risk.
- Neither lender can replace federal benefits like PSLF, so proceed with caution if you work in public service.
You don’t have to guess which one is cheaper. Since both offer rate checks that don’t affect your credit score, the smartest move is to check your rate with both and choose the one that offers the best savings for your wallet.
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- LendKey Official Site: LendKey.com
- Laurel Road Official Site: LaurelRoad.com
- Federal Student Aid: StudentAid.gov (For federal loan interest rates and consolidation info)
- Consumer Financial Protection Bureau: CFPB Student Loan Guide
- College Finance Guides:
