The American Association for Physician Leadership is partnering with Laurel Road Bank to offer a loan consolidation and refinancing program.
To ease the financial stress of student loans, the American Association for Physician Leadership is partnering with Laurel Road Bank to offer a loan consolidation and refinancing program that could save current members thousands of dollars.
Laurel Road, which is FDIC-insured, specializes in refinancing federal and private school loans for professionals with graduate and four-year undergraduate degrees, and reports the average savings for each customer to be about $20,000 over the life of their loan.
“We’ve always appreciated the societal contributions that health care practitioners make,” says Alex Macielak, Laurel Road business developer. “We think it’s a very strong cohort in terms of their abilities to repay these loans, so we’re able to offer some of the lowest interest rates in the market based on that.”
Those rates include a 0.25 percent discount for active AAPL members who are U.S. citizens or permanent residents with a valid I-551 (green card). The discount applies after Laurel Road pays off the customer’s current student loans and issues a new loan at lower interest rates.
“For a physician, that can easily save them $3,000 to $5,000 over the life of the loan, depending on how much they owe and how long they’re planning on paying it back,” Macielak says. “By locking in a lower-interest rate with us, they reduce their monthly payments, which helps with cash flow short-term. And as a result of that lower monthly payment, they’re going to save money long-term as well.”
Loan options include fixed or variable rates, and terms ranging from five to 20 years. Residents and fellows pay only $100 per month during training.
Eligibility is based on the applicant’s total income, total debt and credit profile. The minimum loan is $5,000; there is no maximum. The policy allows for loan forgiveness in the event of death or documented permanent disability, and for a 12-month forbearance (at Laurel Road’s discretion) in the event of short-term economic hardship such as a lost job or leave of absence.
To assist with the process, Laurel Road offers informative webinars and a personalized student loan assessment tool that helps applicants to structure loans specific to their budget needs.
Click here for more information.