Laurel Road, a digital lending platform and a subsidiary of KeyBank, announced a new credit card on June 22. The Laurel Road student loan repayment card offers 2% cash back if you use your rewards to pay off student loans from most lenders. The no annual fee card also offers some impressive perks and a solid welcome bonus, putting it on par with some of the best cash back credit cards on the market.
Key points to remember
- The new Laurel Road student loan repayment card offers 1% cash back on all your purchases, but doubles that if you use rewards to pay off your student loans.
- You can repay student loans with most federal and private student loan services.
- The card also comes with an impressive welcome bonus and an introductory 0% APR balance transfer promotion with no annual fee to start.
- The card is worth considering for any student borrower looking for help paying off their debt.
How the Laurel Road student loan repayment card works
The Laurel Road Student Loan Repayment Card isn’t the first credit card to offer a better repayment rate if you use your cash back to pay off student loans. All three credit cards issued by Sallie Mae give you 25% more value if you redeem your rewards to pay off student loan debt.
However, even with this bonus, the maximum value you would get with Sallie Mae cards is around 1.56% when using rewards for student loan payments.
In contrast, the new Laurel Road card doubles the value of your rewards to 2% if you use your cash back to pay off student loans. In addition, 95% of federal and private loan departments participate, so most student loan borrowers can take advantage of this impressive advantage. (You can check the fine print on the card’s website to make sure your lender or service agent is listed.)
The card also offers impressive incentives for new cardholders. For starters, you’ll earn $ 500 on any qualifying student loan after spending $ 5,000 in the first 90 days of opening the account. You’d be hard pressed to find a better welcome offer on another credit card with no annual fee, assuming you can afford to spend $ 5,000 in three months.
You will also receive a 0% introductory APR for 12 months on balance transfers made within the first 60 days of account opening. After that, the APR variable drops from 13.99% to 22.99%, depending on your creditworthiness.
Should you request this card?
The Laurel Road student loan repayment card is far from the only 2% cash back credit card available, and you can use the cash back you get with any credit card to pay off your debt. student loan.
But the 2% reward rate combined with the $ 500 welcome bonus might be enough to make this card worthwhile if you have a lot of student loan debt.
If you don’t have a student loan, or if you have very little left on your balance, this might not be as appealing because once you pay off your student debt, you will only get back 1% on your student loan. all.