
Sign up & start saving!
Get our weekly newsletter for the latest in money news, credit card offers + more ways to save
Bottom line: Excellent credit can provide some of the lowest private loan APRs. And current SoFi customers can earn an extra discount.
1.88% to 11.16%
APR
Up to 100% of the CoA
Max. Loan Amount
Not stated, but other loans require good to excellent credit
Min. Credit Score
Product Name | SoFi Parent Loans |
---|---|
Minimum Loan Amount | $5,000 |
Max. Loan Amount | Up to 100% of the CoA |
APR | 1.88% to 11.16% |
Interest Rate Type | Fixed and variable |
Fixed rate | 4.6% to 10.76% |
Requirements | Not stated |
Review by
Kellye Guinan is a writer and editor with Finder and has years of experience in academic writing and research. Between her passion for books and her love of language, she works on creating stories and volunteering her time on worthy causes. She lives in the woods and likes to find new bug friends in between reading just a little too much nonfiction.
SoFi is a well-known online lender — and its parent loans have competitive rates. If you have good to excellent credit and a steady source of income, you may qualify for one of its low variable- or fixed-rate loans. And there are no fees, which will help reduce the amount you pay to finance your student’s education. You won’t need to be the parent or legal guardian, either. Anyone can borrow a parent loan through SoFi regardless of their relationship with the student.
But it has misrepresented savings in the past. SoFi also has more strict eligibility criteria than other lenders, and you could be stuck with a midrange rate even if you have good credit.
For more ways to finance your student’s education, compare other parent loan options.
To borrow a parent loan from SoFi, the student you are borrowing for must be enrolled at least half time in a degree-seeking program. In addition, you will need to have a regular source of income and be a US citizen or permanent resident.
SoFi will also consider your credit score and other factors, although it doesn’t provide any minimum requirements on its website.
SoFi parent loans are available in all 50 states and Washington, DC.
SoFi bases its decision on your credit score, debts and other factors. Typically, it only accepts borrowers with good to excellent credit. This helps keep rates low, but it does mean that borrowers with good credit may face higher rates than they would with other lenders.
SoFi is one of the top lenders and may be competitively inexpensive if you qualify for its parent loans.
You will need to begin repayments immediately — if you qualify.
Not sure SoFi is a good fit? Check out these other student loan providers.
You can borrow anywhere from $5,000 to the full cost of attendance, minus other financial aid, with a parent loan. Loan terms can stretch up to 15 years, and SoFi offers two APR options: Fixed and variable rate.
SoFi caps its variable-rate loans at 13.95% — which means even if rates fluctuate in the future, you won’t be stuck with an extremely high APR. And because it charges no fees, the interest rate you pay will be the only thing you have to worry about with your repayments.
Like many other lenders, SoFi offers a 0.25% APR discount when you sign up for autopay. If you’re an existing SoFi member, you may also qualify for an additional 0.125% APR discount.
SoFi allows you to make interest-only repayments while your student is enrolled at least half time. These payments begin 30 to 45 days after the loan is fully disbursed, and full payments begin 30 to 45 days after your student has graduated or dropped below half-time status.
You can also choose to make full repayments while your student is in school. These will also begin 30 to 45 days after the loan is fully disbursed.
Like other private lenders, you may be able to defer or forbear your loan if you are unemployed, facing economic hardship or a member of the military. SoFi also has forbearance available for borrowers who have been affected by the coronavirus.
SoFi uses MOHELA as a servicer for its parent loans. To request a payoff statement or handle other payment issues, you will need to log in to your MOHELA account.
SoFi receives mixed reviews from its customers — although not many specifically address its parent loans. Recently, SoFi has received a number of complaints about how it has handled payments during the COVID-19 pandemic. Others complain about the poor user interface for both its website and app. Positive reviews highlight its speed and customer service.
In 2018, SoFi alleged that SoFi had made false statements about its refinancing program as well as its preapproved offers. It came to a settlement in February 2019 that bans it from misrepresenting potential savings through its refinancing program.
You can apply online by following these five steps:
To complete SoFi’s preapproval application, you will need to submit the following information:
SoFi may also request proof of income and a copy of your government-issued photo ID to confirm your identity.
The application process should take less than ten minutes. After, SoFi will send your information to your student’s school for verification. This may take up to six weeks — although SoFi may be able to speed up the process if you need your loan funds processed by the school more quickly.
SoFi has a wide range of student loan options, including:
SoFi also offers personal loans, mortgages and home equity loans.
SoFi is a top option for student loans — but you should understand your parent loan options, including federal Parent PLUS loans, before you apply.