LIBOR and SOFR Variable Rates
Please note: As of October 29, 2021, Laurel Road will begin limiting new LIBOR-based student loan refinances and will adopt SOFR as the selected alternative USD index rate for student loans with a variable interest rate. For more on this decision, please see the Laurel Road FAQs.
If you currently have an active Laurel Road student loan with a variable rate term, your interest rate will transition to a spread-adjusted forward-looking term rate based on the Secured Overnight Financing Rate ("SOFR"), pursuant to a federal law addressing the cessation of LIBOR. According to this federal law, the rates published by Refinitiv Limited as the USD IBOR Cash Fallbacks for consumer products will be deemed equivalent to this spread-adjusted forward-looking SOFR based rate after June 30, 2023. The Laurel Road team will provide timely updates to existing loan holders who are impacted in advance of the scheduled transition.
Rates for Laurel Road variable loans:
For variable rate loans issued on the One Month LIBOR rate, the LIBOR is 5.44% effective December 1, 2023.
For variable rate loans issued on the Three Month LIBOR rate, the LIBOR is 5.64% effective October 1, 2023 - December 31, 2023.
For variable rate loans issued on the 30-Day Average SOFR rate, the SOFR is 5.33% effective December 1, 2023.
At the applicable time, references to the relevant Refinitiv-based rates will be updated within this section as we pull the rates due to timing differences with the 3-month rate.
Please note if your contract contemplates interest rate calculations that average LIBOR values occurring at different times, some interest rate calculations occurring shortly after June 30, 2023 may rely on values of both the LIBOR index and SOFR-based index.
You may identify which rate is applicable to your loan on the Final Disclosure issued by Laurel Road. With any change to the rate index, variable rate loans will re-amortize and a repayment schedule will be provided that will include your new monthly payment amount, interest rate (margin plus LIBOR or margin plus SOFR), and the effective date of your new monthly payment amount.
Note: The repayment schedule interest rate does not reflect the Auto Pay discount as payments are not calculated with the discounted interest rate.
Public Service Loan Forgiveness
Public Service Loan Forgiveness is not available on private student loans. Important Notice: The recent federal student loan announcement regarding one-time student loan cancellation is applicable to federal student loans only and does not include private student loans.
Please note, private student loans are not eligible for a refund of payments made during the Covid-19 Forbearance.