SoFi Snapshot
SoFi is one of the largest student loan refinance companies in the industry. With competitive interest rates, a diverse set of repayment options, and exclusive member benefits, SoFi is a good fit for borrowers with an associate’s degree or higher or borrowers with a high income and strong credit score.
Pros
Competitive interest rates- Students can refinance parent PLUS loans in their own name
- Comes with borrower protections (forbearance and deferment)
- Includes membership perks like career coaching, job search assistance, and wealth management
Cons
Unclear about credit requirements- No cosigner release
- Refinancing is unavailable to borrowers without a degree
- No spousal consolidation loans
Best Features of Refinancing with SoFi
Competitive interest rates and zero fees for qualified borrowers
Although SoFi has strict qualification requirements, the borrowers who do qualify for refinancing 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.
Students can refinance parent PLUS loans in their own name
If your parent has taken out a Parent PLUS loan or a private student loan in their name, SoFi gives your parent the option to refinance that loan or transfer the loan to your name (so long as you are the primary applicant). In addition, SoFi gives parents access to refinancing services to help make debt management easy.
Includes membership perks like career coaching, job search assistance, wealth management, and other personal finance services
SoFi offers its borrowers a variety of perks that help you take control of your financial future.
- Career services: SoFi offers borrowers free one-on-one assistance when it comes to improving your resume, landing a promotion, or transitioning to a new job.
- 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 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.
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.
Drawbacks of Refinancing with SoFi
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 refinancing, this usually means those around or above 670. If you do not have a strong credit score, a cosigner with a good credit score will likely be necessary.
No cosigner release
Most private student lenders require or strongly encourage you to apply with a cosigner. Given that young people generally have no/limited credit history, a cosigner can help you qualify for better loan terms.
Many private student lenders allow you to release your cosigner after a few years of timely payments (typically 1-2 years). This essentially means that the cosigner is no longer liable for repaying the loan in the event that you (the borrower) are unable to make payments.
While becoming a cosigner can be daunting, the cosigner release policy is meant to ease the burden and make it less risky.
Unfortunately, SoFi does not offer any form of cosigner release on its refinance loans.
Refinancing is unavailable to borrowers without a degree
In order to refinance through SoFi, you must have earned an associate’s degree or higher. If you attended school but did not complete your degree, you are ineligible for refinancing your student loan through SoFi.
No spousal consolidation loans
SoFi does not provide people who are married with the opportunity to combine student loan debt which many see as a simpler route to paying off their debt.
SoFi Eligibility Criteria, Repayment Options & More
Fees and Terms
Loan Terms
5, 7, 10, 15 or 20 years.
Loan Amounts
$5,000 up to your total outstanding balance.
Ability to transfer a parent loan to the student
Yes.
Application or Origination Fee
No.
Prepayment Penalty
No.
Late Fees
Yes, $5 late fee if your loan is 15 days past due.
Eligibility Requirements (Financial)
Minimum Credit Score
Did not disclose.
Minimum Income
No minimum. SoFi looks at the amount you have leftover after paying your monthly expenses.
Typical Credit Score of Approved Borrowers or Cosigners
700+.
Typical Income of Approved Borrower
$100,000+.
Maximum Debt-to-Income Ratio
Did not disclose.
Ability to qualify if you’ve filed for bankruptcy
Yes, once the bankruptcy drops off your credit report. This happens after seven years for Chapter 13 bankruptcy and after 10 years for Chapter 7 bankruptcy.
Eligibility Requirements (Personal)
Citizenship
Must be a U.S. citizen, permanent resident or have a qualifying visa (E-2, E-3, H-1B, J-1, L-1, or O-1). Non-permanent residents, DACA recipients and those without a qualifying visa need a cosigner who is a citizen or permanent resident.
Location
Available to borrowers in all 50 states.
Musta have graduated
Yes, with an associate degree or higher.
Must have attended a school authorized to receive federal aid
Yes.
Must be employed
Yes. If not, the borrower must have enough income from other sources or have proof of a job that starts within 90 days.
Percentage of borrowers who have a cosigner
Around 15%.
Repayment Options
Academic Deferment
Yes, you can postpone payment if you return to school.
Military Deferment
Yes, you can postpone payment while on active military duty.
Disability Deferment
Yes, you can postpone payment while undergoing rehab for a disability.
Reduced payments for medical and dental residents
Yes, physicians and dentists can pay $100/month during residency for up to four years.
Forbearance
Yes, if you lose your job through no fault of your own, you can postpone your payment for three months at a time, for up to 12 months. Contact SoFi’s career advisor to see if you qualify.
Cosigner Release
No.
Death or Disability Discharge
Yes. Contact SoFi’s customer service.
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 approval to payoff
One week.
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.
SoFi FAQs
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. Since it began offering student loan refinancing in 2012, SoFi has helped nearly 400,000 borrowers refinance $30 billion in student loans.
Is SoFi available in all 50 states?
Yes.
How long does it take to get a SoFi refinance 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. 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 refinance loan?
If you don’t qualify for a SoFi refinance 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 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 refinance 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.