Our Verdict
The Laurel Road Student Loan Cashback® Card* is only worth considering if you have student debt and you’re looking to expedite paying it off. The card earns rewards that can be redeemed for 1% cash back on every purchase or for 2% cash back when redeemed toward an eligible student loan.
If you don’t trust yourself to earn cash back on a credit card and put at least some of those rewards towards your student loan debt, this card can take away that variable. But with a glut of 2% cash-back cards on the market that let you use your earnings any way you’d like, a card with more versatile redemption options is a better fit for most than the Laurel Road card.
Pros
- No annual fee
- No foreign transaction fees
- Introductory APR offer on balance transfers
Cons
- Earnings are worth less when redeemed as a statement credit than toward student loans
- Other 2% cards offer greater redemption flexibility
- If you don’t have college debt, this card is not a good choice
Highlights
- Earn $300 in cash back rewards towards an eligible student loan after spending $3,000 in the first 90 days of account opening
- Earn 2% cash back in rewards for every dollar spent on eligible purchases if redeemed towards student loans, terms apply
- Earn 1% cash back per dollar spent on eligible purchases
- No annual fee
- Introductory APR offer
Introduction
If you’re looking to fast track repayment of your student loan debt, the Laurel Road Student Loan Cashback Card is an intriguing option. Issued by Laurel Road, a division of KeyBank, the card earns cash-back rewards with a redemption twist: If you redeem your earnings for cash back, they’re worth 1 cent for every dollar spent. But redeem toward an eligible student loan payment and those rewards will be worth 2 cents apiece. Laurel Road says 95% of all student loans are eligible to use your earnings from the card.
Other notable features include a 2% cash back in rewards for every dollar spent on eligible purchases if redeemed towards student loans and 1% cash back per dollar spent on eligible purchases, terms apply, a lack of foreign transaction fees and a generous welcome offer: Earn $300 in cash back rewards towards an eligible student loan after spending $3,000 in the first 90 days of account opening.
Earning 2% cash back on your spending and using it to pay down your debt is a worthy goal. But there are several other cards on the market that also earn up to 2% cash back on every purchase without the caveat that they have to be redeemed for student loans. And there’s even a competing card, the SoFi Unlimited 2% Credit Card*, that offers rewards that can be redeemed for loans: 3% cash back per dollar spent on travel booked through SoFi Travel and unlimited 2% cash back on all purchases.
Unless you want to throw every spare cent you can find toward paying down your student loan debt, a 2% cash-back card that lets you redeem for cash to use any way you’d like is a better choice.
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Quick Facts
- No annual fee
- 2% cash back in rewards for every dollar spent on eligible purchases if redeemed towards student loans and 1% cash back per dollar spent on eligible purchases, terms apply
- Intro APR offer: 0% intro APR for the first 12 billing cycles from account opening when balance is transferred within 60 days
- Balance transfer fee: $10 or 3% of the amount of each transaction, whichever is greater
- No foreign transaction fees
Laurel Road Student Loan Cashback Card Rewards
Earning Rewards
The Laurel Road Student Loan Cashback Card earns 1% cash back on every eligible purchase. However, those rewards are worth 2% cash back when redeemed toward an eligible student loan.
The card comes with a welcome bonus: Earn $300 in cash back rewards towards an eligible student loan after spending $3,000 in the first 90 days of account opening.
Redeeming Rewards
Rewards can be redeemed in any amount for a statement credit or towards an eligible student loan. There is no limit to how many rewards you can earn or redeem.
Rewards Potential
To determine the rewards potential of the Laurel Road Student Loan card we have to look at the bonus categories and calculate what an average household might spend in those areas. Forbes Advisor uses data from various government agencies to determine annual expenses and spending averages across various categories.
The 70th percentile of wage-earning households brings in $116,000 annually and has $36,177 in spending that can reasonably be charged to credit cards. If a household charges everything to the Laurel Road Student Loan card and redeems their earnings exclusively toward their student loan, it would net $723.54 in rewards each year.
0% Introductory Rates
The Laurel Road Student Loan card comes with an intro offer on balance transfers: 0% intro APR for the first 12 billing cycles from account opening when balance is transferred within 60 days There’s a balance transfer fee: $10 or 3% of the amount of each transaction, whichever is greater
Other Laurel Road Student Loan Cashback Card Benefits
As a World Mastercard, the Laurel Road Student Loan Cashback Card comes with the following benefits:
- ID theft protection: Opt into this service that monitors your credit file for changes that could indicate fraud, sends you emergency alerts and can assign you a resolution specialist if fraud is detected.
- Rental car coverage: Receive secondary auto coverage when you decline the waiver at the rental car counter and pay for the car using your eligible Mastercard.
- Global services: Get emergency assistance anytime, anywhere and in any language. This includes reporting a lost or stolen card, obtaining an emergency card replacement or cash advance, finding an ATM and answering questions on your account.
- Extended warranty: This coverage doubles the manufacturer’s original warranty up to 24 months from the date of purchase for eligible items purchased with the card.
Fine Print
Interest Rates
- Regular APR: 19.24% - 28.24% variable
- Purchase intro APR: N/A
- Balance transfer intro APR: 0% intro APR for the first 12 billing cycles from account opening when balance is transferred within 60 days
Fees
- Annual fee: $0
- Balance transfer fee: $10 or 3% of the amount of each transaction, whichever is greater
- Foreign purchase transaction fee: None
How the Laurel Road Student Loan Cashback Card Stacks Up
Laurel Road Student Loan Cashback® Card* vs. SoFi Unlimited 2% Credit Card*
As previously mentioned, the no-annual-fee SoFi Unlimited 2% Credit Card* is another 2% cash-back card that lets you use your earnings to pay down student loans. Although in the case of the SoFi Card, the debt has to be a SoFi-held student loan. But you can also use your rewards to save or invest with a SoFi account which may be more meaningful to you.
You can also redeem your earnings for cryptocurrency via a SoFi Active invest account, one of a growing number of cards that allow you to redeem for crypto. But ultimately, to get 2% cash back out of the SoFi card, you’re locked into redeeming your earnings with one of SoFi’s eligible banking products. You may prefer the freedom of a card that lets you take your rewards any way you’d like.
Laurel Road Student Loan Cashback® Card* vs. Wells Fargo Active Cash® Card
The Wells Fargo Active Cash® Card, which has an annual fee of $0, also earns 2% cash rewards on purchases. But, unlike the Laurel Road or SoFi cards, you have many more options to redeem your earnings, without the headache of some redemptions being worth less than 2%.
The Active Cash card redemption options include statement credits, cash from an ATM in $20 increments using your Wells Fargo ATM or debit card, or credit to a qualified Wells Fargo mortgage, loan or credit product. In other words, you can put some of your stash towards your debt one month and put those earnings in your pocket another month. This makes the Active Cash card an appealing option long after your student loan is history.
Laurel Road Student Loan Cashback® Card* vs. Chase Freedom Flex℠
Just because there are multiple cards that can earn up to 2% cash back on your spending doesn’t mean those are the only options. Someone who has the tolerance to track multiple spending categories may find they score even higher earnings with a card like the Chase Freedom Flex℠. The card has an annual fee of $0 and earns at the following rates: 5% cash back on up to $1,500 in combined purchases in categories that rotate quarterly (requires activation), 5% cash back on travel purchased through Chase Travel℠, 3% cash back on dining and drugstores and 1% cash back on all other purchases. Past quarterly bonus categories have included groceries, gas stations and utility services.
This may ultimately yield greater rewards than a card that earns a flat 2%, but that will ultimately depend on your spending habits. The Freedom Flex earns Ultimate Rewards points which can be redeemed for cash back, statement credits, travel through Chase Travel or even transferred to one of Chase’s travel transfer partners if you also have a premium Ultimate Reward-earning card like the Chase Sapphire Preferred® Card or Chase Sapphire Reserve®.
Is the Laurel Road Student Loan Cashback Card for You?
The Laurel Road Student Loan Cashback Card could be good for someone who fits a specific profile. If you’re holding student debt and you want every available extra cent to seamlessly go toward paying down that balance, this card could be one tool to help with that goal.
But most people will fare better with a cash back card that lets them use their rewards any way they’d like. See our list of best cash-back cards for more recommendations.
Methodology
Forbes Advisor considers a variety of criteria when assigning credit cards a rating. Cards are graded based on numerous factors including:
- Annual fees
- Welcome bonus offers
- Ongoing earning rates
- Value of individual points or miles
- Included travel or merchant credits
- Additional cardholder benefits
Card features we expect cardholders to use the most often are weighted more heavily in our ratings. Altogether, the factors came together to provide a star rating for each individual card.
Read more: How Forbes Advisor Rates Credit Cards
*The information for the following card(s) has been collected independently by Forbes Advisor: Laurel Road Student Loan Cashback® Card, SoFi Unlimited 2% Credit Card. The card details on this page have not been reviewed or provided by the card issuer.
