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 its 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 3.375 percent and variable rates as low as 2.365 percent. 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 making 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.
Additional Company Details
SoFi offers loan terms of 5, 7, 10, 15, and 20 years.
The company offers its services to 49 states and Washington D.C. Residents of Nevada are currently not able to borrow from SoFi.
Cumulative Amount Loaned to Borrowers
To date, SoFi has loaned over $8 billion dollars.
SoFi is transparent about its application process, which can take as little as 15 minutes:
- Pre-approval online
- Selecting a loan with rates, terms, and payments
- Uploading required documents
The company requires the following information:
- Existing student loan information
- Employment information (salary, offer of employment, etc.)
- Proof of income (recent pay stubs)
- Diploma or transcript
The typical borrower from SoFi is the type of person who has a good paying job and great credit history. These people are usually highly motivated to pay off their student loans relatively soon. The average borrower has a credit score of at least 750 and an annual income of $120,000 or more.
Terms and Conditions Apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. To qualify, a borrower must be a U.S. citizen or permanent resident in an eligible state and meet SoFi’s underwriting requirements. Not all borrowers receive the lowest rate. To qualify for the lowest rate, you must have a responsible financial history and meet other conditions. If approved, your actual rate will be within the range of rates listed above and will depend on a variety of factors, including term of loan, a responsible financial history, years of experience, income and other factors. Rates and Terms are subject to change at anytime without notice and are subject to state restrictions. SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers such as Income Based Repayment or Income Contingent Repayment or PAYE. Licensed by the Department of Business Oversight under the California Finance Lender Law License No. 6054612. SoFi loans are originated by SoFi Lending Corp., NMLS # 1121636.
Student Loan Refinance
*Fixed rates from 3.375% APR to 6.740% APR (with AutoPay). Variable rates from 2.365% APR to 6.290% APR (with AutoPay). Interest rates on variable rate loans are capped at either 8.95% or 9.95% depending on term of loan. See APR examples and terms. Lowest variable rate of 2.365% APR assumes current 1 month LIBOR rate of 0.79% plus 1.825% margin minus 0.25% ACH discount. Not all borrowers receive the lowest rate. If approved for a loan, the fixed or variable interest rate offered will depend on your creditworthiness, and the term of the loan and other factors, and will be within the ranges of rates listed above. For the SoFi variable rate loan, the 1-month LIBOR index will adjust monthly and the loan payment will be re-amortized and may change monthly. APRs for variable rate loans may increase after origination if the LIBOR index increases. The SoFi 0.25% AutoPay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. *To check the rates and terms you qualify for, SoFi conducts a soft credit inquiry. Unlike hard credit inquiries, soft credit inquiries (or soft credit pulls) do not impact your credit score. Soft credit inquiries allow SoFi to show you what rates and terms SoFi can offer you up front. After seeing your rates, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit inquiry. Hard credit inquiries (or hard credit pulls) are required for SoFi to be able to issue you a loan. In addition to requiring your explicit permission, these credit pulls may impact your credit score.