A top-rated lender with competitive rates and additional perks.
When you join SoFi, you’re joining a community of over 275,000 members. As a whole, SoFi offers a variety of loan products, community events and professional guidance, in addition to student loan refinancing.
|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|
|Interest Rate Type||Variable|
|Requirements||Must be an employed US citizen with a minimum loan balance of at least $5,000.|
- Quick rates.
- Member perks.
- No hidden fees.
- $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’s application is quick, online, and simple. Customer service is ready to help and accessible 7 day a week through email, chat and social media. Instead of considering just credit score, SoFi also looks at your financial behavior to determine eligibility.
SoFi splits their application into two parts: in order to show you the rates you qualify for, they will do a soft credit pull, which does not affect your credit score. If you choose a product and continue the application, then they perform a hard credit inquiry which may impact your credit score.
How much will I pay for SoFi student loan refinancing?
Refinancing involves paying off one or more of your student loans with a new one. The new loan can potentially lower your monthly payments, save on interest and pay off your debt even sooner. Make sure you weigh your options when it comes to a fixed or variable APR, and choose what will better fit your financial needs.
SoFi has no origination fees or prepayment penalties, which means you won’t be dinged for refinancing or for paying off your loan early.
Benefits of SoFi Student Loan Refinancing
- Member perks. As a member, you can enjoy an additional 0.125% rate discount, customer service 7 days a week, career strategy services, invites to SoFi events, and more.
- Unemployment protection. If you unexpectedly lose you job, SoFi can pause your loan payments for 3 month periods, and a total of 12 months.
- Career support. SoFi provides career coaches that can help you advance in your job, build a personal brand, negotiate a salary, and more.
- 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, plus take advantage of SoFi’s networking and mentorship opportunities.
- Wealth advisors. You can also 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, it’ll send you a check for $300 per person.
- 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. While SoFi doesn’t have clear credit requirements for student loan refinancing, people with low credit scores might not qualify for a rate that’s makes refinancing worth it.
- You’ll lose federal benefits. While refinancing your federal loans could potentially make repayments easier or even lower your rates, you’ll lose key federal benefits like forgiveness program and more 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, which can take a while and land you with a less favorable deal.
- 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 unless you apply with a cosigner.
Compare more options for student loan refinancing
Is SoFi student loan refinancing legit?
It is. In fact, SoFi is 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 gets an A+ rating, which the BBB bases on factors like how it handles customer complaints and advertising practices. It also gets a 3.99 stars out of 5, based on over 100 customer reviews — 76% of which are negative. It does better on Trustpilot. As of June 2018, it’s rated 9.1 out of 10 based on over 1,7000 reviewers, 85% of which call it “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.
Am I eligible?
Applying for student loan refinancing is easy, and requires applicants to meet the following eligibility requirements:
- 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
- You must have a valid bank account
- $5,000 minimum loan balance
- Graduated from a selection of Title IV accredited universities or graduate programs
How can I apply for SoFi student loan refinancing?
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 and 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’s 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. If you go back to school or start a business, you can apply to defer — or pause — 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 didn’t already get a reason. 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 creditworthiness. 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.
If you just graduated and are looking for help paying off your student loan, SoFi’s student loan refinancing program can help. Be sure to compare other student loan refinancing options to ensure you’re making an informed decision.