Two options to help fund your child’s higher education that come with no hidden fees and simple pre-approval.
It’s become a lot harder for parents to afford the rapidly increasing costs of college and university tuition. Whether to fill the gaps or cover the full cost, SoFi’s two parent loan options can take the worry out of funding — and keep you focused on your child’s higher education.
|Product name||SoFi Parent Loans|
|Interest rate||Fixed and variable rates available|
|Maximum loan||None (up to cost of attendance)|
|Maximum terms||5 or 10 years|
|Credit score range||Good to excellent credit required|
|Returned check fee or penalty||$0|
|Restricted uses||Tuition at Title IV–accredited college or graduate program|
|Monthly service fee||$0|
|Available states or regions||49 states and DC; does not service Nevada|
What are the benefits of the SoFi Parent Loan?
Flexible rates and term options are just a few of the benefits you’ll find with SoFi.
- No hidden fees. These loans come with no application or origination fees in most states and no penalty for paying off your loan early.
- Two loan options. Choose from a fixed or variable Parent Loan or the Federal Parent PLUS Loan.
- Quick pre-approval. You’ll know if you qualify for a loan within minutes without affecting your credit score.
- Return customer discounts. Get an 0.125% rate discount on your next SoFi loan.
- No maximum amounts. SoFi offers loans that cover up to the cost of your student’s attendance.
Compare other SoFi loan offers
What to watch out for
As with most parent loans, you face potentially high rates if you do not have excellent credit. Keep an eye out for a few other issues as well.
- Limited options in certain states. SoFi does not lend to residents of Nevada, and variable rates aren’t offered in Illinois, Ohio or Tennessee.
- Full parent liability. You can’t make your child the accountholder of the loan after graduation.
- High $5,000 minimum. If you’re looking to finance less than this minimum, you may want to look into a traditional personal loan.
Am I eligible for a SoFi Parent Loan?
To be approved for a loan with SoFi, you’ll need to meet its underwriting criteria:
- You must be a US citizen or permanent resident.
- You must be employed, have sufficient income from other sources or have an employment offer that starts in the next 90 days.
- Your child must be a full-time student attending school from a selection of Title IV–accredited universities or graduate programs.
- You must be a resident of a state other than Nevada.
Ultimately, your eligibility will depend on financial history, career experience, monthly income and existing expenses.
Can I refinance my existing parent loans with SoFi?
Yes. SoFi offers Parent PLUS Refinancing to help you pay off your Federal Parent PLUS loans faster. You’ll enjoy no application, origination or pre-payment fees and flexible rates.
What do I need to apply for a SoFi Parent Loan?
Among other more specific documentation, you’ll need to provide:
- Your full name and personal contact information.
- Proof of your financial history and good credit standing, including W-2 forms, paycheck stubs and federal tax returns.
- Proof that your child is enrolled in an eligible college or university.
I got the parent loan. Now what?
- Keep up on your payments. Sign up for autopay to avoid the hassle that comes with late payments. Your first repayment is due within 45 days of funding.
- Enroll in autopay. Get a 0.25% discount on your rate by enrolling in automatic repayment deductions.
- Customer service. If you have questions, call or email SoFi customer support or send non-confidential questions via Twitter to @SoFiSupport.
SoFi is a new way for you to pay for your child’s education, offering two options that come with quick pre-approval and no fees. It’s could be worthwhile to explore this option since pre-approval doesn’t affect your credit score.