Fixed Rates from 4.24% APR to 9.99% APR
Pros
- No hard credit inquiry required to see rates and prequalify
- Provides borrowers with a student loan debt coach
- Additional support for career planning, job search, and entrepreneurship
- No origination fees
Cons
- Cosigner release is not possible
- Higher minimum loan amount
SoFi is one of the leading lenders in student loan refinancing. They were the first to offer refinancing loans for private and federal student loans back in 2012. Borrowers must have at least an associate degree to be eligible for a loan. SoFi can be a good choice for borrowers and professionals who hold excellent credit scores.
Loan Details
Student loan refinancing is a way for borrowers to consolidate their student loans into one loan payment with the benefit of a lower interest rate. Refinancing can make repayment easier and cheaper. Of course, there are also downsides when you choose to refinance a loan. This is particularly true for federal student loans. Federal loans have certain benefits and protections that could be lost if you choose to refinance. So take a step back and weigh your options before you sign a new loan.
SoFi provides some of the most comprehensive payment protection choices from private lenders. If a borrower suddenly goes unemployed, they apply for loan forbearance. This is applied in increments of three months with a maximum limit of 12 months. During the height of the COVID-19 pandemic, SoFi offered protection for borrowers undergoing financial difficulties. If you decide to go back to school, SoFi also offers loan deferment on the refinanced loan. They will accommodate the first six months of grace periods that pre-existed before refinancing the loan.
Loan Fees, Rates, and Requirements
• Loan Amount: $5,000 up
• Loan Term: 5, 7, 10, 15, or 20
• Variable Rate: 6.49% to 10.49%
• Fixed Rate: 4.29% to 9.99%
SoFi’s fixed rates range from 4.29% to 9.99% while variable rates range from 6.49% to 10.49% The actual interest rate will depend on the loan term. The lowest available rates come with a 0.25% autopay discount.
Borrowers would need a good credit standing to be eligible for SoFi’s loan refinancing. But if you have a co-signer who meets income and credit score requirements, your application can be accepted. The average credit score for borrowers that get accepted is 750. Borrowers should also hold at least an associate degree if they want to apply. US citizenship or permanent residency is also required.
Medical students can reduce payments down to $100 for a maximum of four years when they stay in residency. There are also specialized rates under the Law and MBA Refinancing and Medical Professional Refinancing programs from SOFI.
SoFi does not charge an application fee, origination fee, and prepayment penalty. However, late payments that are overdue for over 14 days have a $5 fee. Collection, disbursement, and returned payment fees are not available on the website.
Customer Support
SoFi has multiple customer support channels for borrowers who are interested in refinancing their loans or have an active loan already. The Help Center is a huge knowledge base where you can find answers to common questions on student loan refinancing. The intelligent virtual support is accessible 24/7 to determine solutions to issues you are having. If the virtual assistant needs to, you may also be connected to a live agent during their business hours.
Student loan refinancing and private student loan support are available Monday to Thursday, 5 AM to 7 PM, and Friday to Sunday, 5 AM to 5 PM PT. Their phone number is 855-456-SOFI(7634)
Overall Rating
SoFi Student Loan Refinancing presents an excellent choice for borrowers wanting to refinance their loans at reduced rates while also gaining access to some safeguards in the event of financial changes. For borrowers with lower credit scores aiming for improved refinancing terms or lower rates, the option of applying with a co-signer is available as well.
