SoFi vs Laurel Road: Student loan refinancing compared

Choosing between SoFi and Laurel Road for student loan refinancing depends largely on your profession and financial goals. SoFi stands out as a broad financial platform offering extensive member benefits, unemployment protection, and flexible options for general professionals. Laurel Road, conversely, is a specialized lender that shines for healthcare professionals, offering tailored benefits like reduced payments during medical residency and fellowships.

Whether you are a parent managing family finances or a graduate looking to reduce your debt burden, this guide compares both lenders side-by-side. You’ll learn how each lender compares on interest rates, eligibility criteria, repayment terms, and unique perks to help you decide which option aligns best with your financial situation.

Context: Understanding SoFi and Laurel Road as refinancing lenders

Before comparing specific rates and terms, it is helpful to understand the market positioning of each lender. This context clarifies why their offers differ and which borrower profiles they prioritize.

SoFi (Social Finance) launched in 2011 and has grown into one of the largest fintech companies in the U.S. It operates as a “one-stop shop” for personal finance, offering student loan refinancing alongside investing, banking, and personal loans. SoFi targets a broad audience of creditworthy professionals and focuses heavily on “member benefits,” creating a community feel with perks that extend beyond the loan itself.

Laurel Road began as a division of KeyBank and has established itself as a premier digital bank for healthcare professionals. While they refinance loans for general professionals, their most competitive products are designed specifically for doctors, dentists, nurses, and pharmacists. Their underwriting and benefits are tailored to the unique career trajectories of medical providers.

Quick comparison: SoFi vs Laurel Road at a glance

For a direct look at how these lenders stack up, the table below highlights the key features and differences. This snapshot provides immediate decision support before we dive into the details.

Source: SoFi and Laurel Road rate disclosures (Rates effective as of October 2024). Lowest rates typically require autopay and excellent credit.

As the table illustrates, both lenders offer competitive terms and similar structures. The primary differentiator lies in who they serve best: SoFi offers a robust safety net for the general public, while Laurel Road provides specialized financial structures for those in the medical field.

Interest rates comparison

Interest rates are often the deciding factor for borrowers looking to refinance. Both SoFi and Laurel Road offer competitive fixed and variable interest rates, though your specific offer will depend on your credit profile and financial history.

According to SoFi’s rate disclosures, fixed rates are 2.74% - 7.99% APR (with autopay) as of October 2024. Laurel Road offers a slightly different range, with fixed rates starting around 4.99% and capping near 9.75% APR as of October 2024. Both lenders determine these rates based on factors such as credit score, debt-to-income ratio, income stability, and the chosen loan term.

Autopay discounts

As shown in the comparison table above, both lenders encourage consistent repayment behavior by offering a 0.25% interest rate reduction when you enroll in automatic payments. This is a standard industry perk but essential for securing the lowest advertised rates.

Payment example

To visualize the impact of these rates, consider a borrower refinancing $50,000 over a 10-year term. At a 6.00% interest rate, the monthly payment would be approximately $555, with total interest costs around $16,600. If that same borrower qualified for a superior rate of 5.00% due to a strong credit profile, the payment would drop to roughly $530, saving over $3,000 in total interest over the life of the loan.

Both lenders allow you to check your rate with a “soft credit pull,” meaning you can see potential terms without impacting your credit score. This prequalification step is crucial for comparing actual offers rather than just advertised ranges.

Eligibility requirements

Qualifying for student loan refinancing generally requires a strong financial profile. Lenders want assurance that you can afford the new loan payments. Below is a breakdown of what SoFi and Laurel Road typically look for in applicants.

• Credit score: Generally 650+ is the floor, though the best rates typically go to borrowers with scores of 700 or higher.
• Income: Verifiable income or a signed offer of employment starting within 90 days.
• Citizenship: U.S. citizens or permanent residents (visa requirements vary by lender).
• Education: A degree from a Title IV accredited institution (associate degree or higher usually required).
• Loan amount: Minimum of $5,000 in student loans to refinance.

Specific lender criteria

Laurel Road has a unique niche: they will refinance loans for medical and dental residents and fellows as soon as they have a contract, even if they haven’t started practicing fully yet. This is distinct from many lenders who require full income verification immediately.

SoFi takes a holistic approach to underwriting. While credit score is paramount, they also consider your cash flow (income minus expenses) and professional history. According to Betsy Mayotte, student loan expert, “Private loans can make sense for students who have strong credit or a creditworthy cosigner.” If your personal credit history is thin, adding a creditworthy cosigner can significantly improve your chances of approval and secure a lower interest rate with either lender.

Loan terms and repayment options

Flexibility in repayment is key to managing your monthly budget. Both SoFi and Laurel Road provide a range of term lengths, allowing you to choose between lower monthly payments (longer terms) or significant interest savings (shorter terms).

Term lengths

Both lenders offer standard terms of 5, 7, 10, 15, and 20 years. Choosing a 5-year term will result in the highest monthly payments but the lowest total interest cost. Conversely, a 20-year term minimizes your monthly obligation but increases the total amount paid over time due to interest accumulation.

Fixed vs. variable rates

Borrowers can choose between fixed rates, which stay the same for the life of the loan, and variable rates, which may start lower but can fluctuate with market conditions. In a rising interest rate environment, fixed rates generally offer more peace of mind and budget predictability.

Special repayment options

Laurel Road distinguishes itself here with its resident and fellow repayment program. As of October 2024, eligible healthcare residents can pay as little as $100 per month during their training period (up to 4 years), with interest accruing but not capitalizing until the period ends. This allows doctors in training to manage cash flow while their income is lower. SoFi does not offer a specific residency payment plan but does provide standard repayment structures suitable for fully employed professionals.

Neither lender charges prepayment penalties, meaning you can pay off your loan early at any time to save on interest.

Unique benefits and member perks

Beyond the numbers, the “extras” offered by SoFi and Laurel Road can add significant value depending on your needs. This is where the two lenders diverge most sharply.

SoFi positions itself as a partner in your financial life, not just a lender. Borrowers gain access to:

• Unemployment protection: If you lose your job through no fault of your own, you can apply to pause payments for up to 12 months (in 3-month increments), during which SoFi may also help with job searches.
• Career coaching: Complimentary access to career coaches who can help with resume reviews and salary negotiation strategies.
• Financial planning: Access to credentialed financial planners for advice on budgeting and investing.
• Member events: Invitations to networking events and dinners in major cities.

According to Mark Kantrowitz, financial aid expert, “Private lenders sometimes offer benefits like autopay discounts or career support.” SoFi is a prime example of a lender leveraging these support services to differentiate itself in a crowded market.

Laurel Road’s benefits are laser-focused on the healthcare community:

• Resident & fellow programs: As mentioned, the ability to pay $100/month during training is a massive benefit for medical professionals.
• Healthcare banking: They offer checking and savings accounts tailored for doctors and nurses, often with cash bonuses or premium features.
• Premium care: A dedicated customer service team trained to understand the complex financial lives of medical practitioners.

Application process and customer experience

Applying for refinancing should be straightforward and digital-first. Both lenders excel in this area, offering streamlined online experiences that minimize paperwork.

Prequalification

The process begins with a rate check. You submit basic information—name, address, income, degree, and loan balance—to receive estimated rates. This triggers a soft credit inquiry, which does not affect your credit score.

Documentation

Once you select an offer, you will need to upload verification documents. Typically, this includes:

• Government-issued ID (driver’s license or passport)
• Proof of income (recent pay stubs or tax returns)
• Loan statements from your current servicer (showing payoff amount)
• Proof of graduation (diploma or transcript)

Timeline

For most applicants, the online application takes about 15–20 minutes. Approval decisions can come as quickly as a few business days, though complex income situations (like self-employment) may take longer. Once you sign the final loan documents, funding usually occurs within 5–10 business days, at which point the new lender pays off your old loans directly.

SoFi is known for its highly rated mobile app, allowing you to manage your loan entirely from your phone. Laurel Road also offers a robust digital platform, though healthcare professionals may need to provide additional documentation, such as residency contracts, which can add a slight step to the process.

Customer service and hardship options

Once your loan is active, the quality of support matters, especially if you encounter financial difficulties. Private lenders generally offer fewer protections than the federal government, but policies differ significantly between companies.

Support channels

Both lenders provide customer service via phone, email, and chat. SoFi offers support seven days a week, catering to professionals who manage finances outside of standard business hours. Laurel Road offers standard business hour support, with specialized teams for their healthcare banking clients.

Hardship and forbearance

SoFi’s Unemployment Protection Program is a standout feature in the private lending space. The ability to pause payments for up to a year while looking for work provides a layer of security that most private lenders do not match. Interest continues to accrue during this time, but it prevents default.

Laurel Road offers standard economic hardship forbearance options, typically evaluated on a case-by-case basis. They are particularly accommodating regarding career transitions for medical professionals, but they do not market a formalized unemployment program as extensive as SoFi’s.

It is critical to remember that neither lender offers the income-driven repayment plans found with federal loans. If you anticipate a significant drop in income or work in a field qualifying for Public Service Loan Forgiveness (PSLF), you should review the trade-offs of refinancing federal loans carefully before proceeding.

Which lender is right for you?

Both SoFi and Laurel Road are top-tier lenders with competitive rates and trustworthy reputations. Making the right choice comes down to your specific profile and what you value most in a financial partner.

• You are a general professional: If you work in business, law, tech, or education, SoFi’s broad benefits package is designed for you.
• You value safety nets: The unemployment protection feature offers peace of mind that is rare in the private market.
• You want an all-in-one platform: If you are interested in networking events, financial planning, or career coaching, SoFi adds value beyond the loan.

• You work in healthcare: Doctors, dentists, nurses, and pharmacists are Laurel Road’s specialty.
• You are in residency or fellowship: The ability to pay just $100/month during training is a massive advantage that SoFi does not directly replicate.
• You have a high debt load relative to income: Laurel Road’s underwriting is specifically designed to understand the high-debt-to-income ratios common among early-career doctors.

• You have excellent credit: If you are a high earner with a strong credit score, you will likely qualify for the best rates from both. In this case, apply to both (using the soft pull prequalification) and simply choose the one with the lower interest rate.

Frequently asked questions

Here are answers to common questions about refinancing with SoFi and Laurel Road to help clarify any remaining uncertainties.

Can I refinance federal student loans with SoFi or Laurel Road?

Yes, both lenders allow you to refinance federal student loans, private student loans, or a combination of both into a single new loan. However, remember that refinancing federal loans converts them into a private loan, permanently removing access to federal benefits like IDR plans and PSLF. Learn more in our guide to student loan refinancing.

What credit score do I need to refinance?

Generally, both SoFi and Laurel Road look for a credit score of at least 650 to qualify. However, to secure the lowest advertised rates, borrowers typically need a score of 700 or higher and a strong history of on-time payments.

Does SoFi or Laurel Road offer cosigner release?

Yes, both lenders offer a cosigner release option. This allows you to remove a cosigner from the loan after making a set number of consecutive, on-time full principal and interest payments and meeting specific credit criteria on your own.

How long does the refinancing process take?

The entire process, from application to the funding of your old loans, typically takes 2 to 4 weeks. This includes time for document verification and the payoff of your previous lenders.

Is there a prepayment penalty?

No. Neither SoFi nor Laurel Road charges a penalty for paying off your loan early. You can make extra payments or pay the loan in full at any time to save on interest.

SoFi and Laurel Road are two of the strongest contenders in the student loan refinancing market, but they serve different needs. SoFi offers a comprehensive, benefit-rich experience ideal for the general workforce, while Laurel Road provides unbeatable, tailored solutions for healthcare professionals.

Key takeaways:

• SoFi is best for general professionals seeking unemployment protection and career benefits.
• Laurel Road is the superior choice for medical residents and healthcare workers needing specialized repayment terms.
• Rates matter most: Since both lenders are reputable, the interest rate should be your primary decision factor.
• Check both: Prequalification takes only a few minutes and does not hurt your credit score.

If you are ready to lower your monthly payments or reduce the total interest on your student debt, the next step is to see real numbers. You can check your personalized rates with multiple lenders to ensure you are getting the best deal possible.

Compare rates from top lenders including SoFi and Laurel Road

Checking rates takes about 2 minutes and won’t affect your credit score.

References and resources

• SoFi Student Loan Refinancing. View lender page.
• Laurel Road Student Loan Refinancing. View lender page.
• Federal Student Aid. “Federal vs. Private Loans.” StudentAid.gov. Visit site.
• College Finance. “Complete Guide to Student Loan Refinancing.” Read article.
• College Finance. “Best Student Loan Refinance Lenders for 2025.” Read article.