Splash Financial vs Laurel Road: Which refinancing lender fits your needs?

If high monthly payments are straining the family budget—or you want to cut interest costs to get out of debt faster—refinancing can be a powerful tool, but choosing the right lender is critical. Splash Financial is best for rate shoppers who want to compare multiple lender offers through one application (marketplace model), while Laurel Road is ideal for healthcare professionals who benefit from specialized programs and perks.

Navigating the student loan refinancing landscape often feels overwhelming, with dozens of lenders promising the lowest rates. Understanding the fundamental difference between a marketplace like Splash Financial and a direct lender like Laurel Road is the first step toward making a confident financial decision. Whether you are a parent looking to relieve the burden of Parent PLUS loans or a graduate managing your own repayment, this guide breaks down exactly what you need to know.

By the end, you’ll be able to:

• Understand the difference between marketplace and direct lender refinancing models.
• Compare rates, terms, and eligibility requirements side-by-side.
• Identify which lender offers the best perks for your profession and situation.
• Make a confident decision about which lender to apply with.

To make the right choice, you first need to understand how these two companies operate, as their business models directly impact your application experience and the offers you receive.

Context: how Splash Financial and Laurel Road differ

Before diving into interest rates and repayment terms, it is essential to distinguish between the two different ways these companies operate. This fundamental difference dictates everything from how you apply to who eventually services your loan.

Splash Financial operates as a refinancing marketplace. Think of it as a search engine for student loans. When you submit an application to Splash, you aren’t just applying to one bank; you are checking rates across a network of partner lenders, which includes credit unions and banks. The primary advantage here is efficiency. You can view potential offers from multiple sources without having to fill out separate applications for each one. This model is designed for borrowers who want to cast a wide net to ensure they are finding competitive rates.

In contrast, Laurel Road is a direct lender and a division of KeyBank. When you apply with Laurel Road, you are dealing directly with them from start to finish. They underwrite the loan, fund the loan, and determine the specific benefits you receive. This model offers a more consistent, singular relationship. Laurel Road has carved out a distinct niche by serving healthcare professionals, offering specialized underwriting and benefits tailored specifically to doctors, dentists, nurses, and physician assistants.

For parents and students, the choice between a marketplace and a direct lender often comes down to priorities:

• Marketplace (Splash Financial): Offers more options and the potential for competitive rates due to the volume of partners, but the final lender—and their specific customer service policies—may vary depending on who you match with.
• Direct Lender (Laurel Road): Provides a streamlined, predictable customer experience and robust, profession-specific benefits, but you are only seeing rates from one financial institution.

This comparison focuses strictly on refinancing existing student loans. If you are looking for information on funding a new degree, you should explore our guides on private student loans for school. Now, let’s look at the numbers side-by-side.

Splash Financial vs Laurel Road: quick comparison

To help you make a quick assessment, we have compiled the core features of both lenders. This table allows you to scan the key differences in rates, terms, and eligibility to see which option aligns best with your financial profile.

Source: Splash Financial and Laurel Road official rate pages. Rates and terms effective as of January 2025. Rates include autopay discount where applicable.

Key takeaways:

• Rate Parity: Both lenders offer very competitive starting rates, often hovering near the 5% mark for the most qualified borrowers. However, Splash’s upper range may vary more significantly because it depends on the specific partner lender you are matched with.
• Flexibility vs. Structure: Splash offers variability. If one partner lender declines you, another in their network might approve you. Laurel Road offers structure, with clear, fixed policies on loan limits and cosigner release.
• Credit Thresholds: Splash may be slightly more accessible for those with credit scores in the mid-600s, whereas Laurel Road generally looks for stronger credit profiles, typically starting around 660.

While this overview provides a snapshot, the devil is often in the details—specifically regarding how interest rates are determined and what they mean for your wallet.

Splash Financial vs Laurel Road: interest rates and APR

The interest rate is arguably the most critical factor in refinancing, as it directly determines how much you will pay over the life of the loan. Because Splash Financial and Laurel Road operate differently, the way they present and determine your rate varies.

Both lenders offer fixed and variable rate options. A fixed rate remains the same for the entire life of the loan, providing stability and predictable monthly payments. A variable rate may start lower but can fluctuate quarterly based on market conditions, which introduces risk if rates rise.

• Splash Financial: Their marketplace model aggregates rates from various partners, with fixed APRs of 1.99% - 6.25% and variable APRs of 1.74% - 6.52%. This means you might see a wider range of potential APRs. If you have excellent credit, the competition between lenders in their network can work in your favor, potentially surfacing a lower rate than you might find elsewhere.
• Laurel Road: As a direct lender, Laurel Road sets its own rates, offering highly competitive rates specifically tailored to medical and dental professionals, often providing rate discounts that general borrowers cannot access.

Regardless of which lender you choose, the rate you are offered will depend on your personal financial profile. Lenders generally reserve their lowest advertised rates (the “floor”) for borrowers with:

• Excellent Credit: Typically scores of 750 or higher.
• Strong Income: Sufficient income to comfortably cover debts.
• Low Debt-to-Income (DTI) Ratio: A lower percentage of your monthly income going toward debt payments.
• Shorter Loan Terms: Choosing a 5-year term often secures a lower interest rate than a 20-year term.

Both Splash Financial and Laurel Road offer a 0.25% interest rate discount if you enroll in automatic payments. While this is an industry-standard perk, it is an effortless way to reduce your total interest costs. For example, on a $50,000 loan, a 0.25% reduction can save you hundreds of dollars over the repayment period.

Verdict on rates: If you are a healthcare professional, Laurel Road often wins on rates due to their specialized underwriting. For general borrowers, Splash Financial’s marketplace approach allows you to check multiple lenders at once, increasing the odds of finding a “lowest rate” offer tailored to your specific credit profile.

Loan terms and repayment options

Interest rates tell only half the story. The loan term—how long you have to pay back the debt—plays a massive role in your monthly budget and total cost. Choosing the right term requires balancing monthly affordability with long-term savings.

Both lenders offer a standard suite of repayment terms, allowing you to customize the loan to your timeline.

• Splash Financial: Through their partner network, you can typically find terms of 5, 7, 10, 15, and 20 years. However, because Splash connects you with different lenders, not every partner will offer every term length. Some credit union partners may have unique term options (like 8 or 12 years).
• Laurel Road: Offers a consistent menu of 5, 7, 10, 15, and 20-year terms. This consistency makes it easier to predict exactly what options will be available to you upon approval.

It is important to understand the trade-off inherent in loan terms:

• Shorter Terms (5-7 years): These come with the highest monthly payments but the lowest interest rates. You will pay the debt off faster and save significantly on total interest.
• Longer Terms (15-20 years): These offer the lowest monthly payments, which can be a lifesaver for family cash flow. However, they come with higher interest rates, and you will pay significantly more in interest over the life of the loan.

If you have a particularly small or large balance, the lender’s limits matter.

• Laurel Road: According to Laurel Road, as of January 2025, they refinance loans starting at $5,000 with no maximum loan limit for qualified borrowers, provided your debt-to-income ratio supports the loan. This is a major advantage for medical professionals with high debt loads (e.g., $200,000+).
• Splash Financial: According to Splash Financial, as of January 2025, the minimum is typically $5,000, but the maximum loan amount varies by partner. While many partners support high balances, some smaller credit unions in the network may have caps lower than the total cost of a medical school education.

Once you have identified a term that fits your budget, the next hurdle is qualifying for the loan.

Splash Financial vs Laurel Road: eligibility requirements

Private student loan refinancing is credit-based, meaning approval is not guaranteed. Understanding the eligibility criteria for each lender can save you time and help you avoid unnecessary rejections. Both lenders require you to be a U.S. citizen or permanent resident and typically require that you have graduated with a degree.

• Splash Financial: Because Splash works with a network of lenders, the credit requirements vary. According to Splash Financial, as of January 2025, partners generally look for a minimum credit score of around 640 to 660. This variability can be a strength; if one partner has strict requirements, another might be more lenient.
• Laurel Road: As a direct lender, Laurel Road has a fixed credit threshold. According to Laurel Road, as of January 2025, applicants typically need a minimum credit score of 660 to qualify. However, approval for their lowest advertised rates usually requires a much higher score, often in the mid-to-high 700s.

Both lenders prioritize stability. You generally need to be employed or have a verifiable offer of employment starting soon.

• Debt-to-Income (DTI) Ratio: This is a key metric. Lenders want to ensure your new loan payment, combined with your rent/mortgage and other debts, doesn’t eat up too much of your monthly income. While specific caps aren’t always public, a DTI below 40% is a safe benchmark for approval.
• Self-Employment: If you are self-employed, documentation is key. Laurel Road and Splash’s partners will likely require two years of tax returns to verify income stability.

You can refinance almost any type of student loan with either lender:

• Federal Loans: Direct Subsidized, Unsubsidized, Grad PLUS, and Parent PLUS loans.
• Private Loans: Existing loans from other private lenders.
• Consolidation: You can combine federal and private loans into a single new private loan.

According to Betsy Mayotte, student loan expert at TISLA, “Private loans can make sense for students who have strong credit or a creditworthy cosigner.” This is especially true if you have high-interest private loans that lack federal protections anyway.

If your credit score or income isn’t quite strong enough to qualify on your own, applying with a cosigner can open doors.

Cosigner policies and cosigner release

For many recent graduates or students with limited credit history, a cosigner—often a parent or guardian—is the key to getting approved or securing a lower interest rate. Both lenders allow cosigners, but their policies on releasing that cosigner later differ.

• Laurel Road: Allows you to apply with a cosigner. This is often necessary for residents or fellows who have high income potential but currently lower salaries.
• Splash Financial: Most partners in the Splash network accept cosigners. This is particularly helpful for younger borrowers utilizing the marketplace to find an approval.

Cosigner release is a critical feature. It allows the borrower to remove the cosigner from the loan after meeting specific repayment requirements, freeing up the cosigner’s credit and removing their financial liability.

• Laurel Road: According to Laurel Road, as of January 2025, cosigner release is available after 36 consecutive, on-time monthly payments. The primary borrower must also meet current underwriting criteria (credit score and income requirements) at the time of the request.
• Splash Financial: This depends entirely on the partner lender you match with. Some partners offer cosigner release after 12, 24, or 36 months, while others do not offer it at all. If cosigner release is a “must-have” for your family, you need to verify the specific policy of the partner lender before signing the loan agreement.

According to Mark Kantrowitz, financial aid expert, “Cosigner release is a valuable feature offered by some private lenders, rewarding responsible repayment.” It serves as an excellent goal for borrowers to work toward, signaling financial independence.

Application process and time to funding

The application experience is where the difference between a marketplace and a direct lender becomes most obvious. Knowing what to expect can help reduce anxiety during the process.

The process with Splash is designed for speed and comparison:

1. Check Your Rate: You fill out one simple form on the Splash website.
2. Soft Credit Pull: Splash performs a soft credit inquiry to show you estimated rates. This does not impact your credit score.
3. Compare Offers: You view a dashboard of pre-qualified offers from various partners (banks and credit unions).
4. Select and Apply: Once you choose the best offer, you are transferred to that specific lender to complete the full application.
5. Hard Credit Pull: The specific lender will perform a hard credit inquiry when you submit the final application.

Funding times vary by partner but typically range from a few days to two weeks.

Laurel Road offers a more traditional banking experience:

1. Pre-Qualification: You can check your rates on the Laurel Road website with a soft credit pull.
2. Full Application: If you like the rates, you proceed directly with Laurel Road. You will upload documents (pay stubs, loan statements) directly to their secure portal.
3. Hard Credit Pull: Occurs when you submit the full application for underwriting.
4. Funding: Laurel Road handles the payoff of your old loans directly.

While the mechanics of applying are standard, the benefits you get after you are approved are where these two lenders truly diverge.

Borrower benefits and perks

Beyond the interest rate, the additional value a lender provides can tip the scales. This is the area where Laurel Road’s specialized focus becomes a major differentiator.

Laurel Road is widely recognized as the gold standard for healthcare professionals. According to Laurel Road, as of January 2025, their benefits include:

• Resident & Fellow Program: Medical and dental residents can pay as little as $100 per month during their training years (and up to 6 months after). Interest still accrues, but this provides massive cash flow relief when salaries are low.
• Member Discounts: Customers who open a checking account with Laurel Road (KeyBank) may qualify for additional rate discounts.
• Professional Association Discounts: Members of partner organizations (like the AMA or ADA) may receive further rate reductions.

Splash’s primary benefit is access. By aggregating lenders, they provide:

• Competitive Marketplace: The “perk” is the ability to find a lender that fits your specific niche—whether that is a credit union with low rates or a bank with flexible terms—without doing hours of research.
• Referral Bonuses: Splash frequently runs referral programs where you can earn cash for referring friends who refinance.

Ready to see what rates you qualify for? Compare rates from 8+ lenders and find your best loan option. Trusted by thousands of borrowers to simplify refinancing.

Hardship and forbearance options

Life is unpredictable. When refinancing, it is vital to understand what safety nets exist if you lose your job or face a medical emergency. This is the most significant trade-off when moving from federal to private loans.

When you refinance federal loans, you permanently lose access to federal benefits, including lengthy forbearance periods, income-driven repayment plans, and loan forgiveness programs. Private lenders cannot match the generosity of the federal government in this regard.

• Laurel Road: According to Laurel Road, as of January 2025, they offer an Economic Hardship Forbearance, typically available in 3-month increments, up to a total of 12 months over the life of the loan. Interest usually continues to accrue during this time.
• Splash Financial: Because Splash is a marketplace, the forbearance policy depends on the specific lender you choose. Most partners offer some form of temporary forbearance (often 3 to 12 months total) for involuntary unemployment or economic hardship, but policies vary.

Recommendation: If your job security is uncertain or you rely heavily on income-driven repayment to make ends meet, you should think carefully before refinancing federal loans. Ensure you have an emergency fund in place to cover payments if needed.

Which lender is best for you?

After reviewing the rates, terms, and features, the decision likely comes down to who you are and what you value most. Here is a decision framework to help you choose.

• Want to Rate Shop Efficiently: You want to see offers from multiple lenders (banks and credit unions) with a single form to ensure you aren’t leaving money on the table.
• Prioritize the Lowest Rate: You are agnostic about which bank holds your loan and simply want the lowest possible APR.
• Have Good Credit (But Not Perfect): You want a marketplace that might include lenders with slightly more flexible credit criteria than a strict direct lender.
• Are Not in Healthcare: You are a general borrower (business, law, engineering, undergraduate) looking for a solid refinancing deal.

• Are a Healthcare Professional: You are a doctor, dentist, nurse, or physician assistant who can benefit from their specialized underwriting and professional association discounts.
• Are in Residency or Fellowship: You need the $100/month payment option to manage cash flow during training.
• Value Relationships: You prefer dealing with one established bank (KeyBank) for your loan, checking, and potentially mortgage needs.
• Need High Limits: You have a very large loan balance (e.g., over $200,000) and need a lender comfortable with high-balance refinancing.

• Have Excellent Credit: If you have a 750+ credit score and stable income, you will likely qualify for the best rates at both. It costs nothing but a few minutes to check your rate with both (via soft credit pulls) to see who offers the better deal.

Remember, checking your rate with a soft pull does not affect your credit score, so there is no penalty for comparing both options.

Frequently asked questions

Yes, both lenders allow you to refinance federal student loans, private student loans, or a combination of both. However, remember that refinancing federal loans turns them into private loans, causing you to lose federal protections like IDR and PSLF.

Splash Financial performs a soft credit pull to show you estimated rates, which does not affect your credit score. A hard credit inquiry—which may temporarily lower your score by a few points—is only performed when you select a specific offer and submit a full application to that lender.

According to Laurel Road, as of January 2025, the minimum credit score requirement is typically 660. However, to qualify for their lowest advertised rates, borrowers generally need a higher score (often 750+) and a strong debt-to-income ratio.

No, Laurel Road refinances student loans for borrowers in all professions. However, their most unique benefits—such as the $100/month payment during residency—are specifically designed for healthcare professionals.

Yes, you can apply with a cosigner through Splash Financial. Many of their partner lenders accept cosigners, which can help you qualify or secure a lower interest rate if your own credit history is limited.

Choosing between Splash Financial and Laurel Road ultimately depends on your profession and your desire for comparison. Both are reputable leaders in the student loan space, but they serve slightly different needs.

Key takeaways:

• Splash Financial is the go-to for rate shoppers. Its marketplace model does the heavy lifting for you, comparing multiple lenders to find competitive rates for general borrowers.
• Laurel Road is the gold standard for healthcare professionals. If you are a doctor, dentist, or nurse, their specialized programs and residency payment options provide value that a standard interest rate cut cannot match.
• Check Your Rates: Both lenders allow you to pre-qualify with a soft credit pull. This means you can see your real numbers without hurting your credit score.
• Federal Caution: Always pause before refinancing federal loans to ensure you are comfortable giving up federal protections like loan forgiveness.

Taking control of your student debt is one of the smartest financial moves you can make. By lowering your interest rate, you aren’t just saving money—you are shortening the timeline to your financial freedom.

Ready to start saving? Compare refinancing rates from multiple lenders in minutes. Join thousands of borrowers who have simplified their repayment journey.

References and resources

For more information and to verify current details, you can visit the official resources below:

• Splash Financial Official Website
• Laurel Road Official Website
• StudentAid.gov (Federal Loan Information)
• College Finance: Complete Guide to Student Loan Refinancing
• College Finance: Federal vs. Private Student Loans
• College Finance: Understanding Income-Driven Repayment