|Loan terms for parent loans|
|Variable rates||2.39% – 12.13%|
|Fixed rates||4.23% – 13.60%|
|Loan amounts||$5,000 up to the total cost of participation|
|Loan conditions||5, 7, 10 or 15 years|
To qualify for a student loan from SoFi, SoFi will also perform a credit check. Also, you must meet the following criteria:
- Borrowers must be the age of majority in their state.
- Borrowers must be US citizens. If you are a permanent resident, you can apply for a loan by calling 877-936-2269.
- You or your co-signer must be employed or have income from other sources.
- You must be enrolled at least half-time in a degree program at an eligible institution.
- You must be making satisfactory academic progress towards a degree.
Is loan prequalification available?
SoFi has a loan prequalification tool. You can find out if you qualify for a loan online and get a rate estimate without affecting your credit score. Once you have chosen an interest rate type and repayment term that suits you, you can proceed with the application process.
SoFi student loans are fee-free, meaning there are no origination fees, application fees, late fees, or prepayment penalties. This is a significant advantage over some other private lenders and even federal student loans, which often have high fees.
For example, Grad PLUS loans – federal student loans for graduate and professional borrowers – have a disbursement fee of 4.228%. If you borrow $10,000, that means you will pay $422.80 just to get the money you borrowed. Opting for a private student loan instead could help you save money.
SoFi offers two loan discounts:
- Automatic payment discount – When you sign up for automatic payments with your checking or savings account, SoFi will reduce your interest rate by 0.25%.
- SoFi Membership Discount – If you or your co-signer are already SoFi members, you can benefit from an interest rate deduction of 0.125%.
There are four repayment options for undergraduate, graduate, MBA, and law school student loans:
- Deferred – With deferred payments, you don’t start repaying your loan until six months after you graduate.
- Interest only – Under interest-only repayment, you make interest payments while you study, reducing your overall cost.
- Partiel – While you are still in school, you pay $25 per month for your loan.
- Immediate – With immediate repayment, you make full payments toward principal and interest while you’re still in school.
Parent student loans are only eligible for immediate repayment and interest-only repayment.
When you take out a SoFi student loan, you become a SoFi member. This gives you access to certain benefits, including:
- career coaching – You can work one-on-one with a career coach for advice on getting a promotion, transitioning to a new job, or improving your resume.
- Sponsorship Program – If you refer friends to SoFi and they take out a loan, open an investment account, or sign up for a cash management account, you can earn a referral bonus. You can earn up to $10,000 for qualifying referrals.
- Financial planning – You can make an appointment with a financial planner free of charge. During your meeting, you can get advice on preparing for your retirement, saving for a new home or investing for your future goals.
Are co-signers required?
SoFi does not require applicants to have a co-signer for private student loans. However, the company says rates for undergraduate borrowers are generally higher without a co-signer, as they typically have limited credit histories and incomes. Add a co-signer to your app can help you get a loan and get a better interest rate.
One important thing to note is that SoFi did not offer cosigner versions. Loans disbursed before May 1, 2019 are not eligible for co-signer release, but loans disbursed after that date now are.
SoFi loans issued before May 1, 2019 are not eligible for co-signer release
After you have made 24 consecutive full principal and interest payments on time, you can apply for a co-signer release. SoFi will review your information, and if you meet its underwriting and credit requirements, your co-signer can be removed from the loan.
Loan forbearance and release options
SoFi offers several deferment and forbearance options if you run into unexpected difficulties and can’t keep up with your payments.
For example, SoFi has an unemployment protection program. If you lose your job through no fault of your own, for example due to company-wide layoffs,you can suspend your loans and defer payments to them. You can defer payments for up to three months at a time, up to 12 months over the life of your loan. Forbearance may be available under other circumstances, such as medical issues, damage to your home, or natural disaster.
Undergraduate and graduate student loans are eligible for dump if the borrower dies or becomes totally and permanently disabled. Parent refinance loans do not qualify for these options.
Loan approval and disbursement timeframe
You can apply and get a credit decision in minutes. Once you have applied and your loan has been approved, you must submit supporting documents and sign your loan documents.
From there, SoFi will send the loan application information to your college for certification. Once SoFi collects this information from the school, it will schedule the loan disbursement based on the college’s suggested schedule. From the time your application is submitted to the disbursement of the loan, it can take four to six weeks.
Is student loan refinancing available?
Yes. SoFi offers a student loan refinancing for federal and private student loans. The minimum amount you can refinance is $5,000, but there is no cap on the amount you can consolidate.
SoFi does not service its student loans itself. Instead, it uses the Missouri State Higher Education Loan Authority (MOHELA) as its loan agent. If you take out a loan from SOFI, MOHELA is the entity you will make payments to and should contact if you have any questions regarding your account.
SoFi is not included in the annual report of the Consumer Financial Protection Bureau’s Private Education Lending Ombudsman. On TrustPilot, SoFi has over 2,522 reviews and a 2.9-star rating. Customer support is available via email firstname.lastname@example.org, Twitter or by calling 855-456-7634.
Apply for a SoFi student loan
Even if you think a SoFi private student loan is right for you, it’s a good idea for completing the Free Application for Federal Student Aid (FAFSA). Submitting to the FAFSA ensures that you will get all the financial aid to which you are entitled, including gift aid, such as grants.
Once you have considered all of your financial aid options, you can proceed with your SoFi student loan application. First, use SoFi’s prequalification tool to get a rate estimate and see what loan terms are available to you. Once you have found a loan that suits you, you can complete the full application. You will need the following information:
- Social Security number
- Information about the chosen school
- Loan amount requested
- Financial aid expected (including federal financial aid and scholarships)
- Rent or mortgage payments
- Income and employer information
- permanent address
- School address (if applicable)
SoFi student loans are a good option if you’ve exhausted federal aid. The lender offers competitive interest rates and does not charge any additional fees. Plus, it offers unemployment protection and forbearance options, giving you an extra layer of protection that some other private lenders don’t.
Investopedia is dedicated to providing consumers with unbiased and comprehensive reviews of student lenders. We’ve collected over 45 data points from over 15 lenders, including interest rates, fees, loan amounts and repayment terms, to ensure our content helps users make the right decision. borrowing decision for their educational needs.