KeyBank acquires ADA-endorsed Laurel Road
Cleveland — KeyBank National Association announced in April it acquired the digital lending business of Laurel Road, the student loan-refinancing program endorsed by the ADA. Through the acquisition, the Laurel Road brand will remain in place, along with its agreement with the ADA, according to a news release.
KeyBank, a bank-based financial services company, seeks to accelerate growth by leveraging Laurel Road’s national reach, existing infrastructure and technology capabilities.
“Laurel Road set out to deliver a simple yet superior lending experience for millennials at every financial milestone,” said Gary Lieberman, founder and chairman of Laurel Road Bank, in a news release. “As part of KeyBank, our capabilities and scale have even more potential, and together we’re committed to enhancing the digital financial experience for all customers.”
KeyCorp is one of the nation’s largest bank-based financial services companies, with assets of about $139.6 billion, as of December 2018. It provides deposit, lending, cash management and investment services to individuals and businesses in 15 states under the name KeyBank National Association.
Through Laurel Road, ADA members receive an extra 0.25% discount on their student loan refinancing rate as long as they maintain their membership. Variable rates for members range from 2.25% to 6.50%; fixed rates range from 3.25% to 6.77%. In addition, students going into any one of the ADA-recognized specialties and general practice residencies are able to refinance their entire student loan portfolio as soon as they are matched to a residency program. Rates for the Resident Student Loan Refinancing program range from 4.27% to 6.99%, including an extra discount for those that set up autopay.