SoFi Student Loan Refinancing Review

SoFi student loan refinancing helps students to repay their loan early with low interest rate. Learn about its features, interest rates, repayment plans and more.

Updated by Deepu M on 24th September 2020

Student loan debt is a major issue among several students. It is a burden when you get a low-income job. The borrower may find it difficult to repay these loans with his/her low earnings. It becomes worse if he/she fails to secure a job after

graduating from school.

Few companies and banks provide student loan refinancing, one such financial service provider is SoFi.

SoFi is a leading student loan refinancing company. It was one of the first to refinance federal and private student loans together in the year 2012.

Ever since it was found in 2011, it has refinanced student loans worth $18 billion. However, refinancing student loans can be a confusing topic. Learn more about What is student loan refinancing.

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SoFi student loan refinancing reviews

When you decide to refinance your student loans, irrespective of the fact whether its a federal or private loan, you taking another loan with less interest rate, to repay the original student loan.

Under the SoFi student loan refinancing, you get to pay a new interest rate based on your current financial position. This new loan with a lower interest rate can reduce the total interest costs and ultimately lower your monthly payables depending on the choice of terms.

Prepayment penalties

If you have a good credit score and financial position to avail refinancing, you qualify for a lower interest rate payment on this loan. This can make you save a good amount of refinancing. SoFi doesn’t charge any hidden fees or prepayment penalties.

The company provides services easily and conveniently. Borrowers can apply or request refinancing online simply by filling the application form and no charge or fee is demanded when applying. Origination and prepayment penalties are also overlooked.

SoFi also came up with a plan which allows its customers to subscribe for a membership to avail discounts 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 easily and quickly and all the process happens online.

Check for eligibility  Checking whether or not you are eligible must be the first and important process before requesting for refinancing. 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 availing refinance.

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

Approval of refinancing – When your request is approved for refinancing, all your loans will be consolidated whether or not they are federal or private student loans. When refinancing, all you have to do is pay a single monthly payment for the whole consolidated loan with a lower interest rate.

Advantages of refinancing student loan with SoFi

Both private and federal student loans can be refinanced by SoFi, although the US Department of Education doesn’t offer student loan refinancing. Even though refinancing your federal student loans with SoFi is possible, the refinanced loan must not be on an income-driven repayment plan.

Benefits of refinancing student loans with SoFi

  • You would get a lower monthly payment

  • It helps to pay off your loan sooner, saving you money in interest

  • A lower monthly repayment would decrease your debt-to-income ratio

  • The lender provides a flexible term length

  • Borrowers are offered fewer fees and interest rates
  • SoFi provides services to borrowers irrespective of location

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

Disadvantages of refinancing student loan with SoFi

  • While many lenders provide cosigner release, Sofi is yet to provide cosigner release to its customers.

  • The refinancing option is not available for those who don't have a degree.

  • The forbearance period can be above 12 months.

  • Discharge of loan due to death and disability is approved case by case.

Refinancing federal student loan with SoFi would restrict you from availing federal loan benefits, however, there is no such thing for private loans. 

SoFi refinancing Overview

Fees and interest rates

You have an option to check for eligibility which depends on your credit score and you can choose your preferred interest rate depending on your term.

No application and origination fee is required during application

No prepayment penalty

Late fees will be imposed on delayed payments made after 15 days

SoFi refinancing Requirements 

1. Financial requirements 

  • SoFi requires a credit score of 680 and above

  • The average score should be above 700

  • No minimum income is required

  • The minimum debt-to-income ratio is not disclosed

2. Other requirements 

  • The person should be US citizen or permanent resident of the US

  • Must be a graduate

  • Should have attended Title IV-accredited school

  • He/she should be employed or should have enough income from other sources

3. Option of repayment

  • People can postpone payments if they return to school after deferment

  • Payments can be postponed if the borrower is involved in active military duty

  • Payments can also be postponed if the borrower is under rehabilitation or has a minor disability

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

  • Borrowers can postpone payments if they lose their job

4. Customer service 

  • In house customer service team is available

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

  • The time taken for approval is about a week

5. Perks to borrowers

An advisor would help the borrower in planning for a career transition, searching for jobs, and personal branding.

SoFi provides a wealth management platform to help borrowers invest without charging for a management fee.

Wondering about loans for college? Learn about student loans and clear your doubts 

Parent PLUS and Private Parent Loan Refinancing with SoFi

SoFi provides a comprehensive refinancing service for parent loans. These services help in managing the debt that was gotten as a result of the child’s education.

Refinancing the refinanced student loan

SoFi provides an option for borrowers to refinance student loans as often as they like. Refinancing and paying off your loan without going delinquent would help to improve your credit score.

With good credits, you have the option of refinancing once again with a lower interest rate. This process does not require the payment of an origination or application fee.

It’s better to refinance now or never

If you have availed the private student loan, you must have discovered that it has a high-interest rate. Therefore, it is better to refinance as a private student is not eligible to receive government loan benefits.

If you have a good credit score, refinancing your loan could be a wise decision since borrowers with good credit scores are offered lower interest rates on their refinance.

Frequently Asked Questions

  • 1.Does SoFi charge fees for the student loan refinance?

    SoFi does not charge any application, origination or prepayment penalties for the student loan refinance.

  • 2.Can I add a co-signer?

    Yes, you can. It will help strengthen your profile. In order to add a co-signer, log into your account and enter their name and email address so that they can get an invitation from the representatives of SoFi.

  • 3.How do I obtain the Final Disclosure documents?

    After signing your approval packet you can obtain the final disclosure document.

  • 4.Who do I contact with questions regarding my loan?

    MOHELA will service the student loan refinancing and can be contacted to answer any questions appropriately. Their contact number is 877-292-7470.

  • 5.Can I refinance previously consolidated loans with SoFi?

    Yes, you can. Whether you previously consolidated federal loans through the government’s Direct or FFEL Consolidation Programs or you had a consolidated loan with a private lender, you can still apply to refinance the consolidated loan through SoFi just the way you could with any other federal or private loan.