SoFi Student Loan Refinancing Review
Updated on February 23, 2021
By Trish Sammer
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When it comes to student loan refinancing, there are a myriad of options. Plenty of lenders promise lower interest rates and better payment terms. How do you choose?
In our estimation, SoFi is definitely worth a look for anyone hoping for a better deal on their student loans. SoFi’s track record speaks for itself. This online lender and wealth management firm has refinanced the most student debt in the U.S.
What’s their strategy? They don’t have hefty costs like brick-and-mortar financial institutions, so savings are passed on to members. Let’s dig in a little deeper to see what you can expect from SoFi student loan refinancing.
Why refinance your student loan through SoFi?
SoFi looks beyond credit scores and debt-to-income ratios and considers factors like a borrower’s estimated cashflow, career prospects, and education.
While other lenders charge higher rates to account for the possibility that borrowers won’t pay back their loans, SoFi has a unique underwriting process that helps ensure that members can make their payments. That translates to some of the most competitive interest rates in the industry.
What are the benefits of refinancing with SoFi?
SoFi may be a digital company, but they value making personal connections. Members are invited to networking dinners in their home towns, happy hours, financial planning sessions, and educational events.
Then there are other perks, like a $300 referral bonus for bringing others in to the SoFi family.
Beyond that, fixed interest rates start at 2.99% and variable rates as low as 2.25% when you enroll in AutoPay. There are no origination fees and no prepayment fees.
Plus, members are eligible to get a 0.125% rate discount on a new loan for a different product type with SoFi.
What refinancing plans does SoFi offer?
SoFi offers student loan refinancing for undergraduate and graduate studies. It also has special offerings for Parent PLUS refinancing, as well as medical resident refinancing.
Select from loan terms of 5, 7, 10, 15 or 20 years.
What are the eligibility requirements for SoFi refinancing?
- You must be a U.S. citizen, permanent resident or visa holder, 18 years or older, employed, have sufficient income from other sources or be set to start a job within 90 days.
- You should have graduated with at least an Associate’s degree from a Title IV school.
- Factors like financial history, career experience, and monthly income vs. expenses can help determine eligibility.
- Refinancing is available in all 50 states plus the District of Columbia. The minimum loan amount is $5,000.
What are the rates and fees for refinancing with SoFi?
Fixed rate loans range from 2.99% APR to 6.88%.
Variable rate loans range from 2.25% APR to 6.43%.
(Rates are as of March 2021 and include AutoPay discount.)
Does SoFi offer discounts for refinanced student loans?
Enrolling in AutoPay gets borrowers and additional 0.25% discount.
Members are eligible to get a 0.125% rate discount on a new loan for a different product type with SoFi.
How to apply for refinancing with SoFi
Go to SoFi.com and click “Find my Rate.”
You can apply for student loan refinancing with SoFi in just four steps.
1. Enter your personal information in order to get a rate quote.
You’ll be asked to provide information about your school, your job, and your current loans.
2. Select your rate and term
Choose between saving on your monthly payment or saving on total student loan interest.
3. Verify your info and sign electronically
Upload your information and then sign your paperwork electronically.
4. Start saving money
Once you’re approved, SoFI will pay your loan servicer(s) and issue you one new student loan. Be sure to continue paying on your old loans until you have verified that they have been paid off by SoFi.
Should you apply for student loan refinancing through SoFi?
Whether you want to refinance private or federal student loans, pay off loans sooner, or lower your payment, SoFi is a solid choice to help you achieve your goals.
Learn more about SoFi student loan refinancing.
