SoFi Private Student Loan Snapshot
SoFi’s in-school private student loan product offers a promising solution for students seeking financial support to pursue higher education. With competitive interest rates and borrower-friendly features, SoFi aims to ease the financial burden of college and provide a flexible path to achieving academic goals. In this review, we will delve into the key aspects of SoFi’s student loan offering to help you make an informed decision about your education financing needs.
Pros
Competitive interest rate- Variety of repayment options
- Co-signer release option after 24 months of timely repayment
- Offers additional borrower protections
- Includes perks like member events, wealth management, and other personal finance services
Cons
Unclear about credit requirements- Not available to students who are enrolled less than half time
- High loan minimum of $5,000
Best Features of SoFi Student Loans
Competitive interest rates and zero fees for qualified borrowers
When looking for a student loan, finding a low-interest rate is typically a top priority. Although SoFi has strict qualification requirements, the borrowers who do qualify have access to some of the most competitive rates in the industry. In addition, you won’t have to pay origination fees, application fees, prepayment penalties, late fees, or insufficient funds fees.
Variety of repayment options
SoFi offers you four repayment options for your student loans, with terms of 5, 10, or 15 years. If possible, it’s beneficial to make in-school loan payments in order to reduce the amount of interest you pay over time.
Repayment Option
Terms
Pros
Cons
Immediate Repayment
Make full payments as soon as the loan is disbursed, while you’re still in school.
You will minimize the interest you pay, resulting in the greatest savings. Because you’re paying down both interest and principal while you’re still in school, you’ll already have made a good start on repaying your loan by the time you graduate.
For many students, it’s not realistic to make full monthly payments while still enrolled in college.
Interest-Only Repayment
Pay only interest while you’re in school.
Your monthly payments will be more manageable, and your loan balance won’t grow while you’re in school.
You won’t make any progress paying down your loan balance while you’re a student. But at least you won’t owe more than you borrowed when it’s time to start making full payments.
Partial Repayment
Pay $25 per month while you’re in school to reduce accrued interest.
You can keep your loan balance in check, and reduce the total amount repaid.
You’ll still owe more than you borrowed when you graduate, but your loan balance won’t grow as quickly.
Deferred Repayment
Don’t make any payments while you’re in school. Begin repayment after graduation or 6 months after graduation.
You won’t have to make payments while you’re in school.
You will likely pay the highest overall cost since unpaid interest will be added to your principal amount at the end of your grace period.
Note: Parents borrowing on behalf of students (i.e. a parent loan) are limited to interest only and immediate repayment options.
Co-signer release option after 24 months of timely repayment
If you need a co-signer for your student loan, SoFi might be a good option for you. Unlike several other lenders, SoFi allows you to release your co-signer after 24 months of timely payments. This can be helpful if you want to build credit in your own name.
Offers additional borrower protections
While borrowing federal student loans gives you access to federal protections (income-driven repayment, loan forgiveness, and loan forbearance) that most private lenders cannot match, SoFi offers generous borrower protections such as deferment and forbearance. Check out the table below to see if you qualify for any of SoFi’s borrower protections:
Deferment
Forbearance
• Returning to school
• Rehabilitation treatment for a disability
• Unemployment
• Economic hardship/job loss
• Military service
• Unemployment
• Economic hardship/job loss
• Military mobilization
• Natural disaster
• National emergency
Note: During deferment and forbearance, interest will still accrue, but the loan will be re-amortized.
Includes perks like member events, wealth management, and other personal finance services
SoFi offers a variety of perks that help you take control of your financial future.
- Member events: SoFi organizes workshops, speaker series, and social events to help you build a strong community.
- No-fee wealth management: SoFi offers a no-fee wealth management and investing platform to help you get your money right.
- Referral bonus: You can send a link to your friends to use SoFi’s student loan, investment, or credit card service and deduct up to $75 in student loans. The rules can be found here.
- Discount on other SoFi loans: SoFi offers its members a 0.125% discount on additional loans taken out through SoFi, including mortgages and personal loans.
Drawbacks of SoFi Student Loans
Unclear about credit requirements
While SoFi used to have a minimum credit score requirement of 650, the company no longer shares an explicit minimum credit score. SoFi only shares that “good or excellent” credit scores will be approved, and for student loans, this usually means those around or above 700. If you do not have a strong credit score, a cosigner with a good credit score will likely be necessary.
Don’t have a strong credit score? Complete Sparrow’s two-minute form to check rates with 15+ different lenders. It’s quick, easy, and does not impact your credit score.
Not accessible to students enrolled less than half-time
If you are not enrolled in school at least half-time, you are ineligible for SoFi student loans.
Enrolled less than half-time? Complete Sparrow’s two-minute form to check rates with 15+ different lenders. It’s quick, easy, and does not impact your credit score.
High loan minimum of $5,000
SoFi does not offer private student loans below $5,000. If you need less than $5,000 to cover the cost of your education, you may be better off looking at other lenders that offer smaller loans.
Looking for a loan that’s less than $5,000? Complete Sparrow’s two-minute form to check rates with 15+ different lenders. It’s quick, easy, and does not impact your credit score.
The latest rates from Sparrow’s partners
If you want to skip pre-qualification and apply directly with a lender, you can do so by clicking Apply below.
SoFi Eligibility Criteria, Repayment Options & More
Fees and Terms
Loan Terms
5, 10 or 15 years.
Loan Amounts
$5,000 up to your cost of attendance.
Ability to transfer a parent loan to the student
No.
Application or Origination Fee
No.
Prepayment Penalty
No.
Late Fees
No.
Eligibility Requirements (Financial)
Minimum Credit Score
650.
Minimum Income
Does not disclose.
Typical Credit Score of Approved Borrowers or Cosigners
Does not disclose.
Typical Income of Approved Borrower
Does not disclose.
Maximum Debt-to-Income Ratio
Does not disclose.
Ability to qualify if you’ve filed for bankruptcy
Yes, after 7 years.
Eligibility Requirements (Personal)
Citizenship
Must be a U.S. Citizen, permanent resident or non-permanent resident alien.
Location
Available in all 50 U.S. states.
Must be enrolled half-time or more
Yes.
School requirements
Any school authorized to receive federal aid (most four-year public and private institutions).
Percentage of borrowers who have a cosigner
83%.
Repayment Options
In-school Repayment Options
Immediate repayment: Make full payments as soon as the loan is disbursed, while you’re in school.
Interest-only repayment: Only pay interest while you’re in school.
Fixed repayment: Pay $25 a month during school.
Deferred repayment: Wait to make payments until you’re out of school.
In-school Deferment
Yes.
Military Deferment
Yes.
Disability Deferment
Yes.
Forbearance
Yes, up to 12 months.
Cosigner Release
Yes, after 24 months.
Death or Disability Discharge
Yes, loans will be forgiven due to a borrower’s death while in school and/or repayment.
Loan discharge if cosigner dies or becomes disabled
No.
Autopay
Allows for surplus payments via autopay: Yes.
Allows for biweekly payments via autopay: No.
Customer Service
Loan Servicer
MOHELA.
In-house Customer Service Team
Yes.
Process for Escalating Concerns
Yes.
Borrowers get assigned a personal customer service representative
No.
Average time from application to approval
Within minutes.
SoFi FAQs
How does SoFi compare to other student lenders?
SoFi student loans are fitting for borrowers who are interested in having a variety of borrower benefits and strong borrower protections. SoFi tends to offer very competitive interest rates relative to other student lenders. Borrowers must have “good” or “excellent” credit scores. Check out the table below to see how SoFi student loans compare to top competitors.
Student loan rates from our partners
Ascent
Ascent’s undergraduate and graduate student loans are funded by Bank of Lake Mills, or DR Bank, each Member FDIC. Loan products may not be available in certain jurisdictions. Certain restrictions, limitations; and terms and conditions may apply. For Ascent Terms and Conditions please visit: www.AscentFunding.com/Ts&Cs. Rates are effective as of 11/1/2024 and reflect an automatic payment discount of either 0.25% (for credit-based loans) OR 1.00% (for undergraduate outcomes-based loans). Automatic Payment Discount is available if the borrower is enrolled in automatic payments from their personal checking account and the amount is successfully withdrawn from the authorized bank account each month. For Ascent rates and repayment examples please visit: AscentFunding.com/Rates. 1% Cash Back Graduation Reward subject to terms and conditions. Cosigned Credit-Based Loan student must meet certain minimum credit criteria. The minimum score required is subject to change and may depend on the credit score of your cosigner. Lowest rates require full
principal and interest payments, the shortest loan term, a cosigner, and are only available for our most creditworthy applicants and cosigners with the highest average credit scores. Actual APR offered may be higher or lower than the repayment examples above, based on the amount of time you spend in school and any grace period you have before repayment begins.
Ascent’s undergraduate and graduate student loans are funded by Bank of Lake Mills, or DR Bank, each Member FDIC. Loan products may not be available in certain jurisdictions. Certain restrictions, limitations; and terms and conditions may apply. For Ascent Terms and Conditions please visit: www.AscentFunding.com/Ts&Cs. Rates are effective as of 11/1/2024 and reflect an automatic payment discount of either 0.25% (for credit-based loans) OR 1.00% (for undergraduate outcomes-based loans). Automatic Payment Discount is available if the borrower is enrolled in automatic payments from their personal checking account and the amount is successfully withdrawn from the authorized bank account each month. For Ascent rates and repayment examples please visit: AscentFunding.com/Rates. 1% Cash Back Graduation Reward subject to terms and conditions. Cosigned Credit-Based Loan student must meet certain minimum credit criteria. The minimum score required is subject to change and may depend on the credit score of your cosigner. Lowest rates require full
principal and interest payments, the shortest loan term, a cosigner, and are only available for our most creditworthy applicants and cosigners with the highest average credit scores. Actual APR offered may be higher or lower than the repayment examples above, based on the amount of time you spend in school and any grace period you have before repayment begins.
LendKey
1 – Terms and Conditions Apply
Loan products, terms, and benefits may be modified or discontinued by participating lenders at any time without notice. Rates displayed are reserved for the most creditworthy consumers who enroll to make automatic monthly payments. Your initial rate will be determined after a review of your application and credit profile. Variable rates may increase after consummation. You must be either a U.S. citizen or Permanent Resident in an eligible state and from an eligible school, and meet the lender’s credit and income requirements to qualify for a loan. Certain membership requirements (including the opening of a share account, a minimum share account deposit, and the payment of any applicable association fees in connection with membership) may apply in the event that an applicant wishes to apply with, and accept a loan offered from, a credit union lender. If you are not a member of the credit union lender, you may apply and become a member during the loan application process if you meet the lender’s eligibility criteria. Applying with a creditworthy cosigner may result in a better chance of loan approval and/or lower interest rate. Loans for exam preparation classes, including, but not limited to, loans for LSAT, MCAT, GMAT, and GRE preparation, are not available via LendKey.com.
2 – Cosigner Release
Some lenders participating on LendKey.com may offer the benefit of cosigner release. Cosigner release is subject to lender approval. In order to qualify, the borrower, alone, must meet the following requirements: (1) Make the required number of consecutive, on-time full principal and interest payments as indicated in the borrower’s credit agreement during the repayment period (excluding interest-only payments) immediately prior to the request. Any period of forbearance will reset the repayment clock; (2) The account cannot be in delinquent status; (3) The borrower must provide proof of income indicating that he/she meets the income requirements and pass a credit review demonstrating that he/she has a satisfactory credit history and the ability to assume full responsibility of loan repayment; (4) No bankruptcies or foreclosures in the last sixty months; and (5) No loan defaults.
3 – Autopay Rate Reduction
Subject to floor rate and may require the automatic payments be made from a checking or savings account with the lender. The rate reduction will be removed and the rate will be increased by 0.25% upon any cancellation or failed collection attempt of the automatic payment and will be suspended during any period of deferment or forbearance. As a result, during the forbearance or suspension period, and/or if the automatic payment is canceled, any increase will take the form of higher payments.
4 – AutoPay Discount & Lowest Interest Rate
Subject to floor rate and may require the automatic payments be made from a checking or savings account with the lender. The rate reduction will be removed and the rate will be increased by 0.25% upon any cancellation or failed collection attempt of the automatic payment and will be suspended during any period of deferment or forbearance. As a result, during the forbearance or suspension period, and/or if the automatic payment is canceled, any increase will take the form of higher payments. The lowest advertised APR is only available for loan terms of 10 years and is reserved for the highest qualified applicants, taking into consideration the applicant’s credit and other factors.
1 – Terms and Conditions Apply
Loan products, terms, and benefits may be modified or discontinued by participating lenders at any time without notice. Rates displayed are reserved for the most creditworthy consumers who enroll to make automatic monthly payments. Your initial rate will be determined after a review of your application and credit profile. Variable rates may increase after consummation. You must be either a U.S. citizen or Permanent Resident in an eligible state and from an eligible school, and meet the lender’s credit and income requirements to qualify for a loan. Certain membership requirements (including the opening of a share account, a minimum share account deposit, and the payment of any applicable association fees in connection with membership) may apply in the event that an applicant wishes to apply with, and accept a loan offered from, a credit union lender. If you are not a member of the credit union lender, you may apply and become a member during the loan application process if you meet the lender’s eligibility criteria. Applying with a creditworthy cosigner may result in a better chance of loan approval and/or lower interest rate. Loans for exam preparation classes, including, but not limited to, loans for LSAT, MCAT, GMAT, and GRE preparation, are not available via LendKey.com.
2 – Cosigner Release
Some lenders participating on LendKey.com may offer the benefit of cosigner release. Cosigner release is subject to lender approval. In order to qualify, the borrower, alone, must meet the following requirements: (1) Make the required number of consecutive, on-time full principal and interest payments as indicated in the borrower’s credit agreement during the repayment period (excluding interest-only payments) immediately prior to the request. Any period of forbearance will reset the repayment clock; (2) The account cannot be in delinquent status; (3) The borrower must provide proof of income indicating that he/she meets the income requirements and pass a credit review demonstrating that he/she has a satisfactory credit history and the ability to assume full responsibility of loan repayment; (4) No bankruptcies or foreclosures in the last sixty months; and (5) No loan defaults.
3 – Autopay Rate Reduction
Subject to floor rate and may require the automatic payments be made from a checking or savings account with the lender. The rate reduction will be removed and the rate will be increased by 0.25% upon any cancellation or failed collection attempt of the automatic payment and will be suspended during any period of deferment or forbearance. As a result, during the forbearance or suspension period, and/or if the automatic payment is canceled, any increase will take the form of higher payments.
4 – AutoPay Discount & Lowest Interest Rate
Subject to floor rate and may require the automatic payments be made from a checking or savings account with the lender. The rate reduction will be removed and the rate will be increased by 0.25% upon any cancellation or failed collection attempt of the automatic payment and will be suspended during any period of deferment or forbearance. As a result, during the forbearance or suspension period, and/or if the automatic payment is canceled, any increase will take the form of higher payments. The lowest advertised APR is only available for loan terms of 10 years and is reserved for the highest qualified applicants, taking into consideration the applicant’s credit and other factors.
Earnest
Student Loan Origination (Private Student Loan) Interest Rate Disclosure:
Student Loan Origination (Private Student Loan) Interest Rate Disclosure:
College Ave
College Ave Student Loans products are made available through Firstrust Bank, member FDIC, First Citizens Community Bank, member FDIC, or M.Y. Safra Bank, FSB, member FDIC. All loans are subject to individual approval and adherence to underwriting guidelines. Program restrictions, other terms, and conditions apply.
(1) All rates include the auto-pay discount. The 0.25% auto-pay interest rate reduction applies as long as a valid bank account is designated for required monthly payments. If a payment is returned, you will lose this benefit. Variable rates may increase after consummation.
(2) As certified by your school and less any other financial aid you might receive. Minimum $1,000.
(3) This informational repayment example uses typical loan terms for a freshman borrower who selects the Flat Repayment Option with an 8-year repayment term, has a $10,000 loan that is disbursed in one disbursement and a 7.78% fixed Annual Percentage Rate (“APR”): 54 monthly payments of $25 while in school, followed by 96 monthly payments of $176.21 while in the repayment period, for a total amount of payments of $18,266.38. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary.
Information advertised valid as of 11/1/2024. Variable interest rates may increase after consummation. Approved interest rate will depend on creditworthiness of the applicant(s), lowest advertised rates only available to the most creditworthy applicants and require selection of the Flat Repayment Option with the shortest available loan term.
College Ave Student Loans products are made available through Firstrust Bank, member FDIC, First Citizens Community Bank, member FDIC, or M.Y. Safra Bank, FSB, member FDIC. All loans are subject to individual approval and adherence to underwriting guidelines. Program restrictions, other terms, and conditions apply.
(1) All rates include the auto-pay discount. The 0.25% auto-pay interest rate reduction applies as long as a valid bank account is designated for required monthly payments. If a payment is returned, you will lose this benefit. Variable rates may increase after consummation.
(2) As certified by your school and less any other financial aid you might receive. Minimum $1,000.
(3) This informational repayment example uses typical loan terms for a freshman borrower who selects the Flat Repayment Option with an 8-year repayment term, has a $10,000 loan that is disbursed in one disbursement and a 7.78% fixed Annual Percentage Rate (“APR”): 54 monthly payments of $25 while in school, followed by 96 monthly payments of $176.21 while in the repayment period, for a total amount of payments of $18,266.38. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary.
Information advertised valid as of 11/1/2024. Variable interest rates may increase after consummation. Approved interest rate will depend on creditworthiness of the applicant(s), lowest advertised rates only available to the most creditworthy applicants and require selection of the Flat Repayment Option with the shortest available loan term.
Is SoFi a legitimate lender?
Yes, SoFi is one of the largest online lenders in the industry with millions of customers. The company offers student loans and student loan refinancing, along with other financial services such as mortgages, personal loans, insurance, and investment accounts.
Is SoFi available in all 50 states?
Yes, SoFi student loans are available to borrowers in all 50 U.S. states.
How long does it take to get a SoFi student loan?
Submitting an application through SoFi takes a few minutes. Once you’ve submitted your loan application, SoFi will instantaneously return a decision about your eligibility. If you qualify, you will receive the rate and terms of your loan.
It may take some time to actually receive your loan:
In-School Loans: Your school must approve the loan which may take between four to six weeks.
Refinance: You can speed up the process by requesting debt payoff letters from your existing lenders and loan servicers.
What happens if I don’t qualify for a SoFi student loan?
If you don’t qualify for a SoFi student loan, the company will inform you why. Depending on the reason, you may consider applying with a qualified cosigner or trying with a different lender. To check your rates across multiple lenders at once, try using Sparrow’s free search engine. In just two minutes, you can receive real, pre-qualified rates from over 15 different lenders ready to help you. And best of all, it won’t impact your credit score.
Are SoFi student loans federal or private?
SoFi’s loans are private loans. Before you take out a private student loan, we recommend that you exhaust your federal funding options, including grants and scholarships.
Does applying for a loan through SoFi hurt my credit score?
In order to estimate what rate you qualify for, SoFi conducts a “soft credit check” — this does not affect your credit score. If you choose to accept the SoFi loan, the company will conduct a hard credit check to verify your information. A hard credit check may temporarily impact your credit score.
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