SoFi Review

Top10.com StaffByTop10.com StaffSep. 10, 2019

In a Nutshell

SoFi is a leader among student debt consolidation companies. Its flexibility of terms and rate options coupled with low interest rates makes it a standout choice for recent graduates.

pros

  • Unemployment protection
  • Co-signing is available for refinancing loans

cons

  • Shortest available loan term is 5 years
  • Consolidation forfeits government loans forgiveness

SoFi SoFi Visit Site

SoFi at a Glance

APR
from 2.14% APR
Loan types
Student loans refinancing, medical resident refinancing
Refinance amount
Up to 100% of outstanding debt amount
Repayment terms
5 to 20 years
Minimum credit score
Good credit
Best for
Upwardly mobile graduates  who want long loan terms

Goals

In 2011, four graduates from the Stanford Graduate School of Business founded SoFi as a company committed to helping people pay student debts in a timely way. The dedication to lowering customers’ student debt payments have made it one of the most popular and fastest growing companies in the industry

Best For?

SoFi has over 250,000 members who have saved a total of over $18 billion on student debts from the more than $10 billion in loans. SoFi prides itself on the ability to service customers' needs, which is why it was the first marketplace lender to receive a Moody’s top credit rating of AAA for a bond offering.

Customer Care

SoFi’s creditworthiness selection process is forward looking and takes into account a potential borrower’s education history and upward mobility. For that reason, if a customer becomes unemployed, SoFi will pause payments and help with job placement and coaching.

SoFi Student Loan Refinancing Highlights

  • Fixed rates from 3.48% APR, variable rates from 2.14%  APR, with AutoPay
  • Checking rates will not affect your credit score
  • If you face unemployment, SoFi will pause payments and offer interview coaching, resume review, and negotiation training. 
  • Loan terms: 5-, 7-, 10-, 15- and 20-year
  • No application or origination fees and no prepayment penalties
  • Autopay discount of 0.25%
  • $5,000 minimum to refinance, no maximum amount
SoFi Student Loan Refinancing

Information and Support

Articles

SoFi offers customers an extensive library of articles, informative reading material along with tools tools to help borrowers understand the bigger picture. The blog hosted by SoFi provides over 200 articles on various lending and general personal finance topics. 

FAQ

SoFi’s FAQ section guides users through the entire student loan refinancing process so that borrowers fully understand their options. 

Calculators

 SoFi provides customers with several calculators and a student debt refinancing guide to ensure customers have all the information they need to make their borrowing decisions.

Customer Support

SoFi provides significant support services. For customers who have become unemployed, SoFi offers interview coaching, resume review, and educates customers with negotiating tactics services to help them find a new job. Furthermore, if customers need any help, SoFi’s customer support experts are available by phone, email and Twitter 7 days a week during business hours.

Types of Debt

SoFi customers can refinance both secured and unsecured debt. Therefore, SoFi customers can refinance their student loans whether they were issued from a private lender or the government.

Repayment Plans

SoFi is one of the few companies in the industry that provides borrowers with the choice of fixed rate or variable rate loan options. Additionally customers are offered a choice of 5 different loan term options, 3-, 5-, 7-, 10-, 15-, or 20 years, so that customers can repay their loan in a time frame that best suits their financial circumstances. SoFi ‘s student debt consolidation loans have some  of the longest terms in the industry and are specifically designed for recent school graduates who may need a longer time frame to pay down their debts.

SoFi SoFi Visit Site

SoFi's Application Process

Getting a rate quote from SoFi requires an application form that takes approximately 10 minutes to fill out. Potential borrowers must give the same basic information they would for any loan. In addition, prospective customers must enter detailed education and employment information, as this information is critical for SoFi’s creditworthiness assessment. If a borrower does not meet the lending qualifications on their own, SoFi offers a co-signing option.

Conclusion

SoFi is one of the most reputable student debt consolidation companies in the alternative lending business. The flexibility of terms and rate options coupled with low interest rates makes it a standout and favorite among recent graduates. If a borrower loses their job, SoFi will adjust payment plans and help them find a new job, the mark of a company that cares about its customers.

*Student Loan Refinance Disclaimer:


  • Fixed rates from 3.48% APR to 7.94% APR (with AutoPay). Variable rates from 2.14% APR to 7.71% 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 2.14% APR assumes current 1 month LIBOR rate of 2.14% minus 0.15% 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. See eligibility details. 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)
  • SoFi APRs and terms are subject to change without notice. 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. See eligibility details. 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. 
  • If you lose your job through no fault of your own, you may apply for Unemployment Protection. SoFi will suspend your monthly SoFi loan payments and provide job placement assistance during your forbearance period. Interest will continue to accrue and will be added to your principal balance at the end of each forbearance period, to the extent permitted by applicable law. Benefits are offered in three month increments, and capped at 12 months, in aggregate, over the life of the loan. To be eligible for this assistance you must provide proof that you have applied for and are eligible for unemployment compensation, and you must actively work with our Career Advisory Group to look for new employment. If the loan is co-signed the unemployment protection applies where both the borrower and cosigner lose their job and meet conditions. 

All rates, terms, and figures are subject to change by the lender without notice. For the most up-to-date information, visit the lender's website directly. 

Top10.com StaffByTop10.com StaffAug. 18, 2019
Our editorial staff is comprised of writers who are knowledgeable about financial services. We specialize in simplifying the process of choosing the right student loan lender for your needs.
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