Laurel Road, a digital lending platform and KeyBank subsidiary, announced a new credit card on June 22. The Laurel Road Student Loan Cashback Card offers 2% cash back if you use your rewards to pay down student loans with most lenders. The no-annual-fee card also comes with some impressive benefits and a solid welcome bonus, putting it on the same level as some of the top cash-back credit cards on the market.
- The new Laurel Road Student Loan Cashback Card offers 1% cash back on all of your purchases but doubles that if you use rewards to pay down student loans.
- You can pay down student loans with most federal and private student loan servicers.
- The card also comes with an impressive welcome bonus and introductory 0% APR balance transfer promotion, with no annual fee to boot.
- The card is worth considering for any student loan borrower looking for help paying down their debt.
How the Laurel Road Student Loan Cashback Card Works
Laurel Road's Student Loan Cashback Card isn't the first credit card to offer a better redemption 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 down student loan debt.
However, even with that bonus, the most value you'd get with the Sallie Mae cards is roughly 1.56% when you use rewards for student loan payments.
In contrast, the new card from Laurel Road doubles the value of your rewards to 2% if you use your cash back to pay down student loans. What's more, 95% of federal and private loan servicers are participating, so most student loan borrowers can take advantage of this impressive perk. (You can check the fine print on the card website to make sure your lender or servicer is listed.)
The card also offers some impressive incentives for new cardholders. For starters, you'll earn $500 toward any eligible student loan after you spend $5,000 in the first 90 days from account opening. You'd be hard-pressed to find a better welcome offer on another no-annual-fee credit card, assuming you can afford to spend $5,000 in three months.
You'll also receive an introductory 0% APR for 12 months on balance transfers made within the first 60 days from account opening. After that, the variable APR jumps to 13.99% to 22.99%, depending on your creditworthiness.
Should You Apply for This Card?
The Laurel Road Student Loan Cashback Card is far from the only 2% cash-back credit card available, and you can use cash back earned from any credit card to pay down your student loan debt.
But the 2% rewards rate combined with the $500 welcome bonus could be enough to make this card worth having if you have a lot of student loan debt.
If you don't have any student loans, though, or if you have very little left on your balance, it may not be as appealing because once you've paid off your student debt, you'll be getting just 1% back on everything.