Sofi student loan refinance

Refinancing helps to get a new loan with new interest rate, SoFi Student Loan refinancing helps students to repay their loan early with low interest rate

Updated by Deepu M on 22nd May 2019


Sofi student loan refinance review

An availing student loan is common in the US, student debt is an issue for the citizens. Student debt is a burden for one who finishes their graduation and working in the sector which pays less than one expected or finding oneself underemployed.

Interest rates are punishing in this type of loan especially in private student loan, the interest rate would range from 3.5% to high as 8.5%. Interest rate is comparatively higher than Auto loan and mortgage loan rates. When you were working for years and setting into your career, you would be having your long term goals, this would be a perfect time to reduce your student debt, by using refinancing at a moderate interest rate.

Only a few companies and banks provide student loan refinancing, one such financial service provider is SoFi, it is a leading student loan refinancing company, it has been first to refinance federal and private student loan together in the year 2012. It has refinanced student loan worth $18 billion and it has refinanced to 250000 and more members.


Table of content

Number Topics
1. Refinancing by SoFi 
2. SoFi refinancing overview
3. Advantages of refinancing student loan with SoFi
4. Parent Plus and private parent loan refinancing with SoFi
5. Conclusion

Refinancing by SoFi 

When you decide to refinance your student loan irrespective its federal or private loan, it is basically you are taking another loan with less interest rate, to repay the original student loan.

In SoFi student loan consolidation you would get to pay a new interest rate based on your current financial position. This new lower interest rate can reduce total interest costs and ultimately can lower monthly payables depends on the choice of term.

Prepayment penalties

If you have a good credit score and financial position to avail refinancing, then you deserve a lower interest rate to pay on this loan, ultimately you could save a good amount of money in refinancing. SoFi doesn’t charge any hidden fees and no prepayment penalties.

Refinancing would look good but it can be availed by one who wants to consolidate student loans via refinancing whose financial position and credit score is healthy since they graduate. 

The company provides service in a more easy and flexible way, where one can apply or request for refinancing online by just filling the application form, it doesn’t charge any fees for application, origination and no prepayment penalties. SoFi also has come with a new membership plan where this provides the customer to subscribe for a membership to avail discount on the interest rate.

Factors

Amount/Interest/Term

Loan amount

More than $5000

Student Loan rates

Fixed rate: 3.89% – 8.07%

Variable rate: 2.5% - 7.12%

Loan terms

5,7,10,15 or 20 years

The student loan refinancing can be availed easy, quick and all the process happens online.

Check for eligibility As it been mentioned earlier all the process of refinancing and related activities happen online, where to check are you eligible is first and important process before you request for refinance, where you could fill the application form available online in the official portal of SoFi, based on the details provided on employment, financial position and credit score of 650, you will be evaluated for the availing the refinance.

Fixing of rate and term Here you could actually choose your preferred term as it's already termed available is 5, 7 and 10 years, with interest of 4.03%, 4.57%, and 4.98%. Where your savings on the total interest amount would mainly depend on the term you choose, the less term you choose, you get to pay less interest rate.

Verification of information and signature – You actually could upload all your financial information and electronic signature in the portal for approval of your request to refinance.

Approval of refinancing – when your request is approved for refinancing by the consolidation of all other student loans irrespective federal and private student loan, with refinancing you would get to pay the only single monthly payment for the whole consolidated loan with a lower interest rate, with the benefit of saving huge interest amount.


SoFi refinancing overview

Fees and interest rates 

  • You have an option to check for eligibility depending on your credit score to avail refinance and can choose your preferred interest rate depending on your term.

  • No application and origination fee

  • No prepayment penalty

  • Late fees will be imposed on delay payment more than 15 days

SoFi refinancing Requirements 

1. Financial requirements 

  • One should have a minimum credit score

  • No minimum income prescribed but considers free cash flow i.e. cash available after a monthly expenditure

  • Minimum debt-to-income ratio is not disclosed

2. Other requirements 

  • He/she should be US citizen or permanent resident of US

  • He/she can reside in all 50 states

  • He/she should have graduated from an associate’s degree or higher

  • He/she should have attended Title iv-accredited school

  • He/she should be employed or should have enough income from other source or should have a job offer that too is started within the next 90 days

3. Option of repayment

  • A person can postpone their payment if they have returned to school as Academic deferment.

  • Can postpone their payment if they have involved in military duty.

  • Can postpone their payment if they are under the rehabilitation of disability.

  • Physicians and dentist can pay the reduced payment of $100 per month during their residence of up to four years

  • If a borrower loses the job of their own can postpone their payment for three months at a time for up to one year total.

  • Payment can be made biweekly on autopay.

4. Customer service 

  • In house customer service team is available

  • Borrowers don’t get assigned to a banker or representatives

  • The time taken for approval to payoff would be one week

5. Perks to borrowers

  • An advisor would help in planning career transition, search for a job and personal branding

  • SoFi provides wealth management platform to help borrowers to invest without management fee.


Advantages of refinancing student loan with SoFi

  • You would get lower monthly payment, can avail money for other expenses

  • Can pay off your loan sooner and save money in interest

  • A lower monthly repayment would decrease your debt-to-income ratio, this could help in getting a mortgage.

  • The lender provides a flexible term length, can be opted by the borrower and allows to make extra repayments.

  • Allows underwriting criteria transparent to borrowers and it's fully disclosed

  • Borrowers are offered fewer fees and interest rates, where they can be chosen by the    borrowers

  • SoFi provides service to borrowers irrespective of any location, in any financial situation of US citizen

  • The lender is recognized for providing more than 12 months forbearance period for academic, military deferment and any other type of policy that helps borrowers in tough times

Get to know the type of loan and its nature of refinancing

Both private and federal student loan can be refinanced by SoFi, As Department of Education of the US doesn’t offer student loan refinancing.  

  • Refinancing federal student loan with SoFi is possible, the refinanced loan will not qualify for Government loan programs like income-driven repayment and loan forgiveness, and more.

  • Refinancing private student loan will not restrict you to avail government loan benefits unlike refinancing a federal student loan.


Parent Plus and private parent loan refinancing with SoFi

It helps parents who took parent Plus and private loan to pay Children education, they provide comprehensive refinancing service for parent loans, this help to manage your debt you borrowed for a child’s education purpose.

Refinancing the refinanced student loan

SoFi provides an option to borrowers to refinance student loan as often you’d like, refinancing and paying off without delinquent would help to improve your credit score, with good credit you would have the option to refinance once again with lower interest rate. This process would not cost you origination or application fee.

It’s better to refinance now or never

If you consider refinancing is right for you, by reducing your monthly payment and reducing the interest amount payable for an over a period. Consider refinancing in this situation.

  • The interest rates are expected to reach paramount by 2020, which means the student loan with variable interest rate will increase, it’s better to choose to refinance as a perfect decision to fix lower interest rate now to pay off in future.

  • If you have availed private student loan, as it has a higher interest rate, it’s better to refinance as a private student is not eligible to avail government loan programs.

  • Are you person with good credit score, refinancing your loan could be wiser as a person with a good credit score will be offered a lower interest rate on their refinance.

You can refinance your loan as you qualify while applying for it, it’s not necessary to wait to have a good credit score to refinance, refinancing now with a moderate interest rate, future you have an option to refinance once again with a lower interest rate with better interest rate.


Conclusion

A student can decide to refinance their loans irrespective Private or Federal, this helps borrowers to get debt free as earlier by refinancing. it consolidates loan together and helps to get new interest rate based on your current financial position. This new lower interest rate can reduce total interest costs and ultimately can lower monthly payables depends on the choice of term.


FAQ'S

  Does SoFi offer student loans?


SoFi helps the student who has more than one loans, where they are punished with a high rate of interest, to consolidate them in one new loan, with most lower interest rate.

  Should I refinance my student loans with SoFi?


SoFi provides in consolidating irrespective of loans, provides optional terms to be decided by the borrower, with less interest rate.

  How does SoFi student loan refinancing work?


The lender helps in consolidating both types of loans, private and federal. then provides a new loan with less interest rate. From the process of application and approval happens online. This also allows borrowers to pay prepayment.

  Is SoFi good for student loans?


SoFi is the first lender to provide refinance for both private and federal student loan together, its good to refinance to save interest amount to be paid.

  Should I refinance student loans with SoFi?


The student would always prefer to reduce the debt burden, to save interest amount payable on the loan, SoFi provides this benefits.

  Can SoFi consolidate private student loans?


SoFi is active in consolidating both private and federal student loan, separate also together.