Signing up with this lender also relieves you of the origination fee and several other pesky fees and charges. Our complete review of SoFi delves deeper into the pros and cons of rates, terms and fees to help give you a bird's eye view of the lender and assess the suitability for your personal financial circumstances.
Founded in 2011 by Stanford University graduates and is based in San Francisco, SoFi is one of the pioneers in the field of refinancing federal and private student loans. SoFi is an abbreviation for Social Finance and SoFi Lending Corp. and is licensed under the California Financing Law by the Department of Business Oversight.
With a history of $18 billion in refinanced student loans and 900,000+ members to date, this lender helps borrowers effectively finance their educational goals and refinance outstanding loans. The loan service is quick, such that the funds reach the student after 7 days, including 3 days of rescission. Students will receive ‘round the clock assistance for lifetime finances when signing up for this service.
A major benefit is their flexible repayment options which are ideal for borrowers of all walks of life and financial statuses. If you’re seeking a reasonable refinancing plan to balance your oversized student loan with short repayment tenures, SoFi represents a great fit.
Why Get a Loan from SoFi?
If you’re a borrower with high income and some debt, SoFi is the best lender to process loans quickly. They’re also known for their no-fee loans and wealth management mechanisms, designed to help borrowers find financial relief and freedom.
Some of the advantages of signing up via this lending service company are:
- Free Career Coaching: Financial coaches are offered for free to all members as a complimentary service.
- Access to Member Advisory Board: Talk with members of this service who offer tips and advice on all their products and services.
- Referral Program: Get paid by referring this lending service to your family and friends.
- EDMIT plus: A free tool to compare colleges, with an emphasis on their true, bottom-line costs
- SoFi Stadium: VIP access to educational experiences in LA
- Member Experiences: An exclusive portal that focuses on how to build financial stability using members’ experiences.
- Financial Planning: Get financial advice from certified advisors for no added costs.
This lender also offers vibrant community workshops and events to learn more about financial management. Refinancing with SoFi also offers flexible rates, zero prepayment penalties, and no hidden fees. Paying your student loan also adds 1 Rapid Rewards point worth 1.4 cents each for every $2 refinanced. This Southwest Airlines loyalty program offers up to 50,000 Rapid Rewards points for users via this lending platform.
Interested borrowers must keep in mind that refinancing also leads to potential loss of benefits when you switch from your federal loan.
What Student Loans Does SoFi Offer?
There are three private student loan offerings available through SoFi: Undergraduate Loans, Graduate Loans, and Parent Loans.
- Undergraduate Loans: Borrowers can cover up to 100% of their tuition with this financing support. If you have a limited income or a credit score, you can add a co-signer to access better interest rates too. Additionally, there are four repayment options available including deferred, interest-only, partial, and immediate repayment.
- Graduate Loans: In addition to financing graduate degrees, this lender also offers special low fixed and variable rate loans for MBA and JD degrees. The application takes a few minutes to fill out after which approved borrowers are entitled to extra member benefits like career networking events.
- Parent Loans: This lending service also assists parents with locating low-rate private student loans. There are two available repayment options including interest-only and immediate repayment. Rates start as low as 3.00% and there are no origination fees, late fees, insufficient funds fees or prepayment penalties attached to the loans.
SoFi Rates and Fees for December 2020
SoFi offers one of the most flexible ranges of rates and terms available, which is great for students and parents seeking to affordably finance educational goals. Moreover, members who register for AutoPay receive an interest rate discount of 0.25% for loans repaid via Autopay.
Private Student Loans | Fees | Variable Rates APR range | Fixed Rates APR Range | Borrow Minimum- Maximum Amount |
Undergraduate | none | 1.88% – 11.66% APR* | 4.23% – 11.26% APR* | $5,000 to 100% of the student loan balance |
Graduate | none | 1.78% – 11.73% APR* | 4.13% – 11.37% APR* | $5,000 to 100% of the student loan balance |
Parent | none | 1.95% – 11.89% APR* | 4.30% – 11.52% APR* | $5,000 to 100% of the student loan balance |
MBA & Law loan rates. | none | 1.88% – 11.16% APR* | 4.60% – 10.76% APR* | $5,000 to 100% of the student loan balance |
Student Loan Refinancing | Fees | Variable Rates APR range | Fixed Rates APR Range | Borrow Minimum- Maximum Amount |
Medical Resident Refinancing | none | 2.39%–6.79% APR* | 3.12%–6.78% APR* | $10,000 to 100% of the student loan balance |
Parent PLUS Refinancing | none | 2.25% – 5.94% APR * | 2.99% – 5.94% APR * | $5,000 to 100% of the student loan balance |
*With Autopay. This does not mean you need to enroll with Autopay, but that enrolling grants you access to the discounted rate.
We were happy to see zero origination fees, penalties, and prepayments on SoFi. However, borrowers should watch out for late fees that can vary based on the loan type.
Terms and Repayment Options 2020
When it comes to loan repayment, the options vary by loan type, but are still very attractive given the range of options available.
The four ways you can repay your loans using this service are as follows:
- Deferred: With 69% of grads in 2018 taking on around a $30,000 debt in student loans, delaying the repayments for a limited period is a viable option. Graduates and undergraduates can take advantage of this repayment option by beginning repayments six months after finishing a degree.
- Interest Only: The interest-only option of repayment refers to suspending the principal repayments and repaying the interest while in school. This is an ideal repayment option for parents of students, graduates, and undergraduates if they want to reduce total costs.
- Partial: The partial repayment plan is ideal for cutting down the overall costs by paying a $25 monthly fee during school. This option represents the lowest monthly payment for graduates and undergraduates while studying.
- Immediate: Available for parents, graduates, and undergraduates, the immediate repayment option requires on-time payments throughout the duration of the studies. It’s ideal for students with above-average finances to disburse on loan premiums without defaulting.
Please note that parent loans only have interest-only and immediate repayment options available.
SoFi Terms at a Glance
| Undergraduate Student Loans | Graduate Student Loans | Parent Loans | Parent PLUS Refinancing | Medical Resident Refinancing | |
| Terms | 5, 7, 10, 15, and 20 years | 5, 7, 10, 15, and 20 years | 5, 7, 10, 15, and 20 years | 5, 7, 10, 15, and 20 years | 5, 7, 10, 15, and 20 years |
| Cosigner Release Option? | Yes, for loans disbursed after May 2019 | Yes, for loans disbursed after May 2019 | Yes, for loans disbursed after May 2019 | No | No |
| Grace Period | Six months | Six months | Six months | Six months | Six months |
Please note that a late fee of $5 is applicable for refinancing loans if the payment is late by 15 days.
Student Loan Refinancing With SoFi
When you sign up for a refinancing option via this lender, you can unlock many benefits. Members can use the SoFi app to check their rewards under the Profile Section.
For interested borrowers, there are a few types of refinancing options available including specialty options like Medical Resident Refinancing and Parent PLUS Refinancing.
- Student Loan Refinancing: Eligible borrowers that match certain eligibility requirements can refinance both private and federal student loans. Loan amounts start from $5,000 and can cover the total outstanding loan balance. Best of all, there’s no hard credit check to explore the rates you’re qualified to receive.
- Medical Resident Refinancing: This refinancing option to consolidate federal and private loans can deliver monthly payments starting from $100 for up to four years with zero compounding interest during residency. Medical students can choose from fixed or variable interest rates depending on their foreseeable career as a doctor. Applicants must graduate within 4 years as a physician for refinancing on this lender platform. Checking your personalized rate is easy via the homepage of this lender service website.
- Parent PLUS Refinancing: Parents of students can refinance and consolidate their Federal Parent PLUS and private educational loans (if qualifying). You’ll also get a 0.125% discount for additional loans.
Customer Support
At SoFi, customers are accepted as members following registration. This lender has an in-house customer service team operated by MOHELA. They also have special processes for escalating problems so that you can access effective service.
With strong ratings from both Trustpilot and the Better Business Bureau, this lender has earned a credible spot in the market for student loan issuance and loan refinancing. The customer service team is available Monday to Thursday from 4:00 AM to 9:00 PM Pacific Time and Friday to Sunday from 4:00 AM to 5:00 PM Pacific Time. You can reach the company via phone at 1-855-456-7634 for more information.
What are the Pros and Cons of SoFi?
Let’s look at the pros and cons of signing up for student loans and refinancing options via this lending service.
Pros:
- Easy and effortless application process including quick approval
- No hard credit checks to check available rates for qualified borrowers
- No specific minimum income required
- Many rewards and perks for members such as support for entrepreneurship, career planning, and job searching help
- Various repayment options including deferment for up to 6 months
- Zero origination fees or prepayment penalties
- Interest savings of 0.25% when using Autopay
- Access a whole range of other lending and financial services
Cons:
- Parents have minimum loan repayment options available
- No co-signer early release available for student loan refinancing
- No disability loan discharge currently offered
How to Apply for a SoFi Student Loan?
Before applying for SoFi student loan refinancing and private loans, make sure you satisfy the relevant eligibility criteria. After confirming eligibility, begin by assembling the necessary paperwork needed to complete the following student loan and refinancing application processes:
- Select your loan type from the ‘Products’ tab
- Fill out an application form with basic details including employment and education
- Review prequalified rates
- Add a co-signer, if necessary
- Pick from fixed or variable rates
- Choose a repayment option
- Upload documents with screenshots
- Review the information
- Sign the papers digitally
Once you submit the information, SoFi will verify your application and respond within a week.
Conclusion
SoFi student loans are an excellent option for those who need solid lending services and are not bound by the benefits associated with refinancing federal loans.
Both refinancing and private student loans are offered with flexible terms and a range of rates designed to cater to personal demands and therefore must be chosen with specific goals insight.
The variety of perks, benefits and unique options with So-Fi are undeniable, and we believe this could be the right choice for many seeking educational financing and student loan refinancing options.
