Refinance your student loans through this top-rated lender with competitive rates and additional perks.
| Product Name | SoFi Student Loan Refinancing Variable Rate (with Autopay) |
|---|---|
| Min Loan Amount | $5,000 |
| Max. Loan Amount | full balance of your qualified education loans |
| APR | 2.470% to 6.990% |
| Interest Rate Type | Variable |
| Requirements | Must be an employed US citizen with a minimum loan balance of at least $5,000. |
Pros
- Quick rates.
- Member perks.
- No hidden fees.
Cons
- $5,000 minimum loan balance.
- You are at least the age of majority in your state and able to enter into a binding contract.
- You and your co-signer (if applicable) are US citizens or permanent residents.
- You must be employed, have sufficient income from other sources, or have an offer of employment to start within the next 90 days.
- You have graduated with an associates’ degree or higher from a Title IV school.
- You are looking to refinance educational debt. Bar loans and residency loans are not eligible for refinancing at this time.
How does student loan refinancing through SoFi work?
SoFi student Loan refinancing works similarly to debt consolidation — if you’re approved for a loan, you can use your funds to pay off your previous student loans, whether you have federal, private or a mix of both. This could result in a lower interest rate or smaller monthly payments. And with SoFi, you’ll have access to customer service every day of the week through email, live chat and social media.
The refinancing process is quite similar to any other loan application. Simply visit SoFi’s website and fill out the application. The application is split into two parts. In order to show you the rates you qualify for, SoFi will conduct a soft credit pull that won’t affect your credit score. If you choose a product and continue the application, SoFi will conduct a hard credit check, which can impact your credit score.
How much will I pay for SoFi student loan refinancing?
The total cost of refinancing will depend on your loan terms and the amount you need to borrow. If you opt for a variable interest rate, you may qualify for a rate anywhere between 2.800% to 7.909%. Fixed rates are slightly higher at 3.899% to 8.179%, but they come with the added benefit of not changing over the life of your loan.
There’s no guarantee that you’ll lower your monthly payment or save on interest, but if you choose the right deal, you may be able to make an impact on how much you’ll end up paying. Choose the option that best suits your finances, and don’t be afraid to contact SoFi if you have any questions regarding loan costs and payments.
Benefits of SoFi Student Loan Refinancing
- Member perks. As a member, you can enjoy an additional 0.125% rate discount, customer service seven days a week, career strategy services, invitations to SoFi events and more.
- Unemployment protection. If you lose you job, SoFi can pause your loan payments for 3-month periods for a total of 12 months.
- Career support. SoFi provides career coaches that can help you advance in your job, build a personal brand and negotiate your salary.
- Entrepreneur program. If you’re starting a new business, you can defer your loans for up to six months while you get your business off the ground. And you’ll have access to SoFi’s networking and mentorship opportunities.
- Wealth advisors. You can take advantage of SoFi’s wealth advisors to help make sense of finances and investments.
- Perks for referral. If you refer a friend to SoFi, you may be able to get a check of $300 for each person you refer.
- No hidden fees. You don’t have to worry about application fees, origination fees or prepayment penalties.
What to watch out for
- Not great for low credit. If you don’t have good to excellent credit, you won’t qualify for SoFi’s student loan refinancing opportunities.
- You’ll lose federal benefits. While refinancing your federal loans could potentially make monthly payments easier or even lower your rates, you’ll lose key federal benefits like forgiveness program and flexible repayment options.
- No cosigner release. If you want to apply with a cosigner now and take them off your loan later, you’ll have to refinance your student loan again.
- Only considers individual income. SoFi doesn’t consider your household income when you apply, so you might have a difficult time qualifying if you’re a stay-at-home parent or otherwise rely on a partner for financial support.
FTC complaint against SoFi
The Federal Trade Commission (FTC) filed a complaint against SoFi in 2018 over the way it advertised an average customer’s savings. The FTC claims that the savings SoFi advertised for its student loan refinancing product were inflated and didn’t represent a true average of savings per month or over the lifetime of a loan for a customer.
Its online savings tool also didn’t inform customers when a loan would actually increase the lifetime or monthly cost of the new loan. SoFi settled by agreeing to an order barring them from making further misleading claims.
Compare more options for student loan refinancing
Is SoFi student loan refinancing legit?
It is. In fact, SoFi has grown to become one of the most popular student loan refinancing options over the past few years. Online reviews are mixed, which you can expect from such a large company.
While it’s not accredited with the Better Business Bureau (BBB), it still receives an A+ rating, which the BBB bases on factors like how it handles customer complaints and advertising practices. However, it has 3.99 stars out of 5, based on over 100 customer reviews — 76% of which are negative.
SoFi does better on Trustpilot. As of June 2018, it’s rated 9.1 out of 10 based on over 1,700 reviews, 85% of which rate SoFi as excellent.
Customers repeatedly praise the customer service, low interest rates and fast turnover time. Many said the application process was fast an easy, though some had difficulty completing the application or qualifying at all because they had unconventional financial situations.
Refinancing for medical and dental residents
SoFi has a special loan for medical and dental graduates that allows them to make repayments as low as $100 a month while completing a residency. Fixed rates run from 4.274% to 8.679% with autopay and variable rates range from 2.855% to 7.490 with autopay. Residents have a choice between terms of five, seven, 10, 15 and 20 years.To qualify you must have no more than four years left in your residency program and at least $10,000 in debt. It’s an affordable option in the short-term, though the interest that adds up during your residency gets added to your loan balance, ultimately increasing your debt load.
Am I eligible?
Before you apply for student loan refinancing through SoFi, you’ll have to meet its strict eligibility criteria.
- You must have a valid bank account.
- You must have a regular source of income or an offer of employment that starts within 90 days.
- You must have a minimum loan balance of $5,000.
- You must have graduated from a selection of Title IV accredited universities or graduate programs.
- You must be a US citizen, a permanent resident or in the US on a valid long-term visa.
- You must be at least 18 years old.
How can I apply for SoFi student loan refinancing?
Info required
You can apply for SoFi student loan refinancing by visiting its website once you’ve checked to make sure you meet the eligibility requirements. To speed things up, have the following documents and information on hand:
- Your name, contact information and date of birth
- How much you want to borrow and the purpose of the loan
- Your credit score range
- Your annual individual income
- Your school or university information
Steps to apply
Once you’ve gathered everything you need, you’re ready to apply. Here’s what you need to do in three steps:
I refinanced my student loans with SoFi. Now what?
Now it’s time to start making repayments through SoFi’s servicer, MOHELA. Once your funds are disbursed, MOHELA will contact you to set up your account. SoFi only offers standard repayments, which stay the same over time if you have a fixed-rate APR or fluctuate if you went with the variable option.
Consider setting up autopay. You’ll get a 0.25% discount on your interest rate and won’t have to worry about remembering to make your monthly repayments. And if you go back to school or start a business, you can apply to defer your student loans for a period of time. To do so, reach out to SoFi’s customer support team.
I didn’t qualify. What can I do?
First, reach out to SoFi to see why you were rejected. If you were rejected over an inaccuracy in your application — which is more common than you’d think — then feel free to apply to SoFi or another student loan refinancing provider again.
If it’s more serious, consider taking steps to improve your credit. This can include paying off your credit card debt, reviewing your credit report for mistakes or even taking on a side job to improve your debt-to-income ratio.
Bottom line
If you just graduated and are looking for help paying off your student loan, SoFi’s student loan refinancing program can help. With low rates and good customer service, SoFi stands out among a sea of refinancing options. However, you’ll need decent credit to qualify.
When you’re ready to apply, be sure to compare other student loan refinancing options to ensure you’re making an informed decision.
Frequently asked questions
Disclaimer
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 Financing Law License No. 6054612. SoFi loans are originated by SoFi Lending Corp., NMLS # 1121636. (www.nmlsconsumeraccess.org)
Student Loan Refinance
Fixed rates from 3.899% APR to 7.979% APR (with AutoPay). Variable rates
from 2.470% APR to 6.990% 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 2.470% APR assumes
current 1 month LIBOR rate of 2.30% plus 0.91% 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.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 Financing Law License No. 6054612.
SoFi loans are originated by SoFi Lending Corp., NMLS # 1121636. (
www.nmlsconsumeraccess.org