SoFi is quickly becoming one of the largest providers of student loan refinancing and consolidation. Although still relatively new, the company has financed over $8 billion in loans, saving clients an average of $22,000 on their student loans. Competitively low rates, unemployment protection, and a high level of customer support set it apart from other companies in the industry.
Low Rates, Great Terms
SoFi offers some of the best interest rates around for refinancing and consolidating federal and private loans with fixed rates as low as 3.35% and variable rates as low as 2.795%, with AutoPay. On top of favorable interest rates, SoFi offers flexible repayment terms varying from 5, 10, 15 or 20 years. This allows customers to pick a monthly payment plan that fits within their budget.
Quick and Easy Application Process
The application process to get pre-approved with SoFi takes just over two minutes. The application does not affect your credit score, will show you how much money the company can save you, and does not charge any fees. SoFi also provides customer support seven days a week to help navigate the application process or manage payments.
Refinance Full Balance
Many companies place limits on how much you may borrow to refinance your student loans. The only upper limit that SoFi imposes is the total balance that you owe back on your loans.
One thing that stands out about SoFi is its generous career help. If a member becomes unemployed (at no fault of his/her own), SoFi will halt the payments for up to three months (for 12 months total over the life of the loan) and will provide a team of professionals to help the member find new employment.
On top of unemployment protection, SoFi provides one-on-one career coaching to help you achieve your career goals. The company offers techniques and tricks to polish your resume, do well in interviews, and improve your negotiating tactics. These benefits provide a greater safety net for those paying back their loans than what is typically offered by other major competitors.
- No Origination or Prepayment Fees
- Cosigner Option
- Refinance and Consolidate Federal and Private Loans
- Loan Calculator Tool
Reports of Complex and Slow Approvals
SoFi generally offers a speedy and painless approval process, but some customers have reported experiencing a longer process with unusual documentation requests and other unexpected delays; however, these types of complaints appear to represent a minority of situations.
Savings Depend on Existing Rates
If you already have a low-interest rate on your student loans, SoFi may not be able to save you money. Although, this is the case with any lender. The good news is that SoFi provides a calculator to compare your current loan to a SoFi loan and how much you can potentially save.
Difficult to Qualify
Some people have reported a high standard for qualification. SoFi claims that there are no minimum qualifications for credit score and annual income; however, the average borrower has an excellent credit score and is a high-income earner. The company also takes into account financial history, career experience, and monthly income vs. expenses when determining who they will loan to.