SoFi 2020 Review
Social Finance, more commonly known as SoFi, is a San Francisco-based company that was the first company to refinance both private and federal loans after its founding in 2011. In additional to student loan refinancing, they also offer personal loans, mortgages, and loans for parents who want to take out a loan to assist in their child’s college education. According to their co-founder Dan Macklin, they have refinanced over $5 billion in student loans.
Student loan refinancing and consolidation is ideal for those who have improved their financial situation since they graduated. SoFi’s student loan refinancing lets you combine multiple student loans, both private and federal, into one single loan with a lower interest rate and a new term length. These new rates and terms are based on your current financial situation: the higher your credit score and income, the lower your new interest rates will be.
You can submit an application online to be preapproved by SoFi and receive your estimated APR. You must provide proof of your income through documentation like a pay stub, recent student loan billing statements, and any photo ID issued by the government, like your driver’s license, passport, or green card.
SoFi performs a soft credit pull, which does not affect your credit score. However, if you decide to accept the terms and complete the application process, your lender performs a hard pull, which does damage your score slightly.
Along with their successful refinancing, they also provide member benefits such as networking events, career coaching, resume feedback, tips for salary negotiations, and help with transitioning careers and personal branding. SoFi even allows children to undertake the responsibility of refinancing their parents’ federal PLUS loans. Borrowers can also apply to their Entrepreneur Program to receive a 6 month student loan deferment, which helps them connect to possible investors and mentors.
Additionally, borrowers can receive up to a year of deferment or forbearance for three month periods. SoFi offers a loan deferment for borrowers who actively serve in the military, go through disability rehabilitation, or return to grad school at least half time.
Medicals residents and fellows can refinance their loans through SoFi and pay only $100 for up to 4.5 years, during which time interest accrues. This minimum monthly payment probably won’t take care of all the interest that has accumulated, so the total amount of the loan will increase.
At this time, there is no option to release anyone that co-signs a loan with you, so your co-signer's name is on the contract until the loan is completely paid off or until their passing. To get a co-signer release, you must qualify and refinance the loan on your own. Several other student loan refinance lenders allow a co-signer to be released from the loan if the borrower pays on time for a certain period of time, generally one to three years.
- Exclusive benefits for members, such as networking events and career coaching.
- They do not offer services in Nevada.
- Minimum Credit Score: 650 (the average approved borrower has 765)
- APR: Fixed rates 3.35% - 7.13%, variable rates 2.82% - 6.74%
- Loan Range: $5,000, up to the full balance of your student loans
- Term Length: 5, 7, 10, 15, or 20 years
- Income: $130,000 (the average approved borrower has $175,000)
- Education: Bachelor’s degree or higher
- Borrowing limits: Total cost of attendance minus other financial aid
- Fees: No origination or prepayment fees
- Other qualifications: Must be employed, have a job offer begin in the next 90 days, or have enough income from other sources. You must also have a monthly income or cash flow and be in good standing with your loan payments.
- Loan servicer: MOHELA
SoFi is a credible loan marketplace that offers student loan refinances with competitive rates and favorable loan terms. Their extra features, such as exclusive networking events, career counseling, and other member benefits are an added bonus. If you have an excellent credit score, SoFi is certainly worth a look.
Frequently Asked Questions
What is SoFi's pricing for student loan refinance?
SoFi offers loans from $5,000 with a term length of up to 20 years. Fixed rates range from 3.35% to 7.13% and variable rates 2.82% to 6.74%
How does SoFi stand out against other student loan refinancing services?
SoFi is known for their exclusive member benefits, such as networking events, resume feedback, salary negotiation tips, and career counseling.
Does SoFi charge fees for student loan refinance?
SoFi does not charge any application fees, origination fees, or prepayment penalties for their student loan refinance services.
Can I add a cosigner?
Yes. In order to see if you can add a cosigner (which may help you qualify for better rates and terms), you can log into your SoFi account and enter their personal information. SoFi will reach out to you with updates based on the information you enter.
Does SoFi offer any discounts?
SoFi offers an AutoPay discount of 0.25%.
Does SoFi offer loan deferment if I decide to go back to school?
SoFi offers loan deferment for borrowers who return to graduate school on a half-time or full-time basis, service on active military duty, or undergo disability rehabilitation. The loan balance will be reamortized over the remaining term of the loan at the end of deferment.
Will applying for student loan refinance from SoFi affect my credit?
Checking your prequalified rates from SoFi will not affect your credit. However, if you submit an application with SoFi, they will authorize a hard pull on your credit (which will damage your score slightly).
Can I refinance previously consolidated loans with SoFi?
Yes. You can refinance previously consolidated loans, whether they are federal or private loans.
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- Credit Score Required Minimum 650
- Minimum Loan Amount $5000
- Max Loan Amount $
- Loan APR 2.82% to 7.13%
- Year Founded Since 2011
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