SoFi

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.