SoFi Private Student Loan Review
- SoFi offers both private student loans and student loan refinances, in addition to a host of other financial products.
- SoFi does not charge any fees.
- This review will focus on the private student loan product.
on the secure SoFi site
What we like:
|Fixed APR||5.73% – 11.99%|
|Variable APR||4.73% – 11.74%|
|Loan conditions||5, 10, 15 years old|
|Loan amounts||$ 5,000 at 100% of tuition fees certified by the school|
To note: The above information is for the SoFi Undergraduate Student Loan.
SoFi quickly became one of the leading providers of student loan refinancing in the country after it was founded in 2011. It then expanded into mortgages and personal loans, but only recently started funding its own student loans. private.
Currently, SoFi Private Student Loans are available to undergraduates, graduates, and parents.
SoFi has called its offerings unique compared to other online lenders as it goes beyond credit scores and debt-to-income ratios to consider other factors such as cash flow, education and career prospects.
In this review:
How to get a SoFi private student loan
Students can apply for a SoFi private student loan online in minutes, with or without a co-signer. The basic eligibility conditions include:
- Borrowers must be of the age of majority in the state in which they live (or have a co-signer who is).
- Borrowers must be a U.S. citizen or permanent resident (or have a co-signer who is).
- Borrowers must live in a state where SoFi Lending Corp (which is the originator of the company’s lending products) has loan authorization.
- The borrower and / or the co-signer must be employed and / or have sufficient income.
- Borrowers must use the loan for qualified higher education expenses at an eligible institution.
- Borrowers must be enrolled at least part-time in a degree-granting institution.
Pre-screening does not affect an applicant’s credit score, as SoFi only makes a soft credit application at this point. Final approval, of course, requires a serious credit investigation and is based on factors like your financial history, credit rating, career prospects, cash flow, etc.
Although a co-signer is not required, rates are generally higher without a co-signer. Students who are just starting school and do not have a stable income or established credit history will have a better chance of being approved if they apply with a creditworthy co-signer.
If you are approved for a private loan from SoFi, you will need to agree to the terms and electronically sign your documents. Once this happens, SoFi will send all loan application information to your school for certification, after which the funds will flow directly to the school.
Basic information: rates, conditions, fees and limits for SoFi student loans
SoFi Undergraduate Student Loans come with the following rates, terms, fees, and loan limits:
- Fixed APR: 5.73% at 11.99% with automatic payment
- Variable APR: 4.73% at 11.74% APR with automatic payment
- Terms: Repayment options include immediate repayment, interest only payments, partial payments, and full deferral (i.e. no payment while in school)
- Fresh: Nothing
- Limits: $ 5,000 minimum (may be higher in some states) up to 100% of tuition fees certified by the school
Pros and Cons of SoFi Student Loans
- The entire application can be completed online in a matter of minutes.
- Existing SoFi customers have reported excellent customer service and a user-friendly interface, according to Trustpilot reviews.
- Check your rate without impacting your credit score with SoFi’s “Find My Rate” tool.
- SoFi does not charge any origination, application, insufficient funds or late fees.
- You can get a 0.25% reduction in the interest rate when you sign up to make automated payments from your checking or savings account.
- There are four repayment plans to choose from (immediate repayment, interest payments only, partial payments, and full deferral), allowing you to customize your SoFi student loan to suit your personal financial situation.
- SoFi offers online tools such as a student loan calculator and other financial resources.
- Compared to federal student loans, which offer standardized interest rates and valuable protections for borrowers, SoFi private student loans are likely to be more expensive. For its part, the company advises potential clients to exhaust their options for federal loans and grants before turning to private loans.
- Additionally, qualifying for SoFi loans can be difficult, and the application process can be rigorous in terms of credit score and income requirements, especially if you don’t have a co-signer. You might be better off applying for a bad credit student loan if you do not meet SoFi requirements.
- SoFi offers fewer borrower protections and repayment options than federal student loans, such as eligibility for the Public service loan forgiveness program.
SoFi private student loan faqs
SoFi’s private student loans are relatively untested, but as one of the leading providers of student loan refinancing products, it has a reputation for being a reliable lender with good customer service.
If you want to compare SoFi to other refinance lenders, check out our review on SoFi Alternatives.
Conclusion: is a SoFi student loan right for you?
SoFi brings an already solid reputation to the private student loan space.
Interest rates on SoFi private student loans are competitive compared to similar private lenders, and the company stands out in terms of fees (or no fees), a straightforward online application process, and flexible reimbursement terms.