Laurel Road Student Loan Repayment Card Review
Credit card rewards are usually available in one of two forms – cash back or points and miles – with the former option being awarded as statement credit or by having a check mailed to you later.
What if you could use your credit card rewards to pay off your student loans? This is the idea behind the brand new Laurel Road Student Loan Cashback® Cardwhich allows you to earn 2% cash back when rewards are sent directly to your qualifying federal or private student loan principle (and 1% cash back if you use them for something else).
It’s an interesting concept, but does that make it the best cashback card available? Below, Select breaks down everything you need to know about the card, how cash back rewards work, and how to decide if it’s the best cash back option to help pay off your loan debt. student.
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At the Laurel Road secure site
Earn 2% cash back on eligible student loans and 1% cash back on anything else on all eligible purchases.
Earn $300 in cash back on any eligible student loan after spending $3,000 in the first 90 days.
16.24% to 25.24% variable
Balance Transfer Fee
Either $10.00 or 3% of the amount of each transaction, whoever is the greatest.
Foreign transaction fees
The Laurel Road Student Loan Repayment Card offers a solid welcome bonus to help new cardholders get started, allowing you to earn $300 in cash back on any eligible student loan after spending at least $3,000 in the first 90 days of account membership . Note that you must already be working with a eligible student loan officer to take advantage of this advantage.
Not only that, but if you opt in to the 2% cash back rewards you’ll earn for using the card to be directed towards paying off your eligible student loans (see list of loan service partners linked above ), you’ll end up with $360 in total cashback after meeting the minimum spend requirement, which is a respectable 12% return on your spend.
In addition to one-time cash back rewards to help you pay off your student loans, the card also offers the following benefits:
- If you transfer your existing credit card debt to the card within the first 60 days of opening the account, you will receive an introductory APR of 0% for 12 months (afterwards, 16.24% – 25.24% variable APR)
- The chance to earn 1% cash back on something else (2% cash back if you put it towards your qualifying student loan principle, more on the above)
- No foreign transaction fees for using the card abroad
- Warranty extension and purchase protection
- Access to Mastercard Priceless® Experiences
The best thing about this card is that it gives you the option to apply your cash back directly to your student loan balance. That said, your student loans must already be in place with one of the eligible repairers listed heresuch as Mohela – US Department of Education, Serious and SoFi.
If your loan manager is on the list — according to the map website, 95% of them are — the process is simple. Once you have paid your monthly statement and elected to have your 2% cash back rewards applied to an eligible balance, Laurel Road will issue payment to your repairer within 10 business days.
Although 2% cashback may not seem like much, it can definitely add up over time. For example, if you were to spend an average of $1,000 per month on your credit card and pay off the statement balance in full each month, that would net an extra $20 for your student loans. If you did this for a year, it would net you an extra $240 to pay off your student loan debt.
If, on the other hand, you were to choose the statement credit option, you’d only earn 1% cash back – at that rate, you’d probably be better off choosing another cash back credit card. silver.
Rates and Fees
The card has no annual fee. However, it has an APR of 16.24% to 25.24% for purchases.
There are no foreign transaction fees, so you can use the card outside the United States without incurring additional fees.
It’s the only credit card on the market that allows you to direct your 2% cash back rewards directly to your applicable student loans. However, there are many other no-annual-fee options that allow you to earn money so you can pay off your student loans or any other type of debt.
Laurel Road Student Loan Repayment Card vs Citi® Dual Charge Card
2% Cash Back: 1% on all qualifying purchases and an additional 1% after you pay your credit card bill
For a limited time, get $200 cash back after spending $1,500 on purchases within the first 6 months of account opening.
0% for the first 18 months on balance transfers; N/A for purchases
Balance Transfer Fee
For balance transfers made within 4 months of account opening, an initial balance transfer fee of 3% of each transfer ($5 minimum) applies; after that, a balance transfer fee of 5% of each transfer ($5 minimum) applies
Foreign transaction fees
The Citi® Dual Charge Card is a solid cash back credit card, offering the same maximum return as the Laurel Road student loan repayment card.
With the Citi Card, you’ll get 2% cash back, or 1% on all eligible purchases, plus an additional 1% after you pay your credit card bill. The main difference here is that you can receive these cash back as a statement credit, direct deposit or check, while the Laurel Road card will only allow you to earn 1% cash back for anything other than student loan payments.
Additionally, the Laurel Road card offers a welcome bonus of $300 to pay off your student loans, while the Citi Double Cash card bonus is only $200 – after new cardholders have spent at least $1,500 during the first six months of card membership. – although you are not limited to spending it on student loan repayments. If you choose between the two cards, keep this in mind and remember to earn each welcome bonus responsibly.
Although the Citi card gives you more options for spending your cash back, it essentially offers the same maximum cash back result as the Laurel Road card. That said, if you just want to pay your rewards directly out of your student loan debt, the Laurel Road card will get you the same result with less hassle and fewer extra steps.
Laurel Road Student Loan Repayment Card vs Capital One SavorOne Cash Rewards Credit Card
The Capital One SavorOne Cash Rewards credit card is another great cash back option, especially for foodies, as it offers the following benefits:
- 3% cash back on dining, entertainment, popular streaming services and grocery store spending (excluding Walmart, Target and other supermarkets).
- 1% cash back for all other purchases.
If you tend to make the majority of your purchases in the 3% cash back categories listed above, it may be more beneficial for you to upgrade to the Capital One card and use cash back rewards. money to pay your student loans or meet other financial goals.
Note, however, that this card only has a welcome bonus of $200 – after new cardholders have spent $500 in the first three months of card membership – while the Laurel Road card offers a $300 welcome bonus designed to go directly towards your eligible student loan balance. If you spend regularly enough in the bonus categories, you could exceed the welcome bonus difference, making the Capital One card the better option of the two.
Information about the Capital One SavorOne Cash Rewards credit card was independently collected by Select and was not reviewed or provided by the card issuer prior to publication.
Editorial note: Any opinions, analyses, criticisms or recommendations expressed in this article are those of Select’s editorial staff alone and have not been reviewed, endorsed or otherwise endorsed by any third party.