SoFi Review: Private Student Loans And Student Loan Refinancing

Written by

Henning Taeger

Last Update on Aug 1, 2023

Americans have an outstanding student loan debt of $1.67 trillion, as per the recent data from the Federal Reserve.

Research indicates that student loans are among the primary reasons for stress among a growing population of US adults. And it’s not just about students, but their parents and grandparents are bearing the brunt of these outstanding loans.

If you’re someone looking to organize your student debt or seeking a private student loan, SoFi could be an option.

We have analyzed SoFi’s student loan refinancing and private student loans in this post, so continue reading to know more.

Quick Summary

SoFi

Student Loan Refinancing

(5/5)

Private Student Loan

(4.5/5)

Show More Details

SoFi is an online personal finance company founded in 2011. SoFi started off with just student loan refinancing, but now the company offers a variety of products like private student loans, personal loans, checking accounts and much more. SoFi is a leader in online finance and can offer it’s customers great value.

Additional Details

GOOD FOR:

Qualified borrowers hoping to get a great rate
Refinancing parent PLUS loans in your name
Additional support for being a member such as coaching and job search assistance

BAD FOR:

High minimums
Student loan borrowers without a co-signer.
Those who have bad credit

SoFi: A No-Fees Online Lender

SoFi is an online lender that offers student loan refinancing for federal or private student loans. You can apply for refinancing or a private student loan online. The lender brands itself as a no-fee lender, which means you won’t have to pay application charges, origination fees, or prepayment penalties on your loans.

SoFi’s official website puts its net refinanced loans at $18 billion, with over 300,000 members.

Let’s find out more about their specific loan offerings.

SoFi: Student Loan Refinancing Review

BEST IF

Individuals with a credit score of 700 or above.
Students with at least an associate degree or higher from a Title IV school.
Individuals with good income and decent disposable income levels.

Student loan refinancing is one of the primary offerings from SoFi. In fact, it was one of the first lenders to offer loan refinancing for both federal as well as private student loans together. When you enquire for a loan, the lender performs a soft-pull, keeping your credit score intact.

The loans start with as low as $5,000, though minimum loan amounts may vary depending on your state.

SoFi – Student Loan Refinancing

Loan amounts	$5,000 – Total outstanding loan balance
Loan terms	5, 7, 10, 15, or 20 years
Fixed rate	2.74% – 6.39%*
Variable rate	2.27% – 6.39%*
Loans that qualify	Federal, private and previously consolidated loans. Borrowers can refinance PLUS loans taken out by their parents
Discounts	0.25% autopay discount
Income	Sufficient to show ability to repay loan
Education	Minimum of a bachelor’s degree from one of over 2,000 Title IV accredited schools
Citizenship	U.S. citizen, permanent residents, or H1-B, J-1, L-1, E-2, E-3 visa holder
Cosigner release	Yes, after two years of on-time payments
Origination fees	None
Application fee	None
Prepayment fee	None
Late fees	5% of the unpaid amount of the payment due or $10, whichever is less

*auto-pay discount is included on rates

Eligibility Requirements For SoFi Private Student Loans

So, how do you qualify for a private student loan with SoFi?

You’ll need to be an undergraduate or graduate student that is currently enrolled at least half-time at one of 2,000+ eligible schools. If you’re studying overseas, your school’s main campus will have to be based in the United States and on SoFi’s list of eligible schools.
If you are an undergraduate or graduate student you are required to have a cosigner. A cosigner could be a parent, friend, or relative who is willing to take on the responsibility to cover your loan payments if for some reason you cannot.

How To Pay Back Your Loan

Everyone has different budgets and unique circumstances so SoFi offers you four ways to pay back your loan:

Defer payments: This will allow you to completely postpone making your student loan payments until graduation. It’s important to remember that interest will accrue during deferment and will be capitalized at the end of the deferment period.
Fixed payments: Make fixed payments of $25 that are affordable and you’ll be able to save even more over the life of your loan. A little can go a long way.
Interest-only: Interest-only payments can be made while you’re in school. This will pay the interest as you go so it doesn’t accrue and get added to your balance.
Full monthly payment: Full monthly payment of the student loan (principal + interest) begins while you’re in school.

How To Get Private Student Loans With SoFi

SoFi makes it easy to explore your refinance options in just a few minutes online with no commitments, no documents, and no impact to your credit score.

When you’re approved, you’ll e-sign your loan disclosures, and SoFi will confirm your enrollment and loan amount with your school. That can take anywhere from five days to three weeks.

As soon as your school certifies the loan, the funds will be sent directly to your school.

The Bottom Line

SoFi is a decent option for private student loans and refinancing as long as you have a good credit score, employment history, or a co-signer that matches SoFi’s lending criteria. As a customer, make sure to compare SoFi’s loans with other lenders to get a complete picture.

Henning Taeger Author

Henning is a writer and editor here at Dollargeek who is passionate about personal finance, pets and cryptocurrency. He enjoys sharing his knowledge about financial management with readers, helping them make informed decisions about their money. In his spare time, Henning can be found playing the latest video games or jamming on his guitar. He is constantly on the lookout for new ways to improve his financial literacy and stay up-to-date on the latest trends in the world of finance.