Editorial Discloser: Opinions expressed here are authors alone, not those of any bank, credit card issuer, hotel, airline, or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.
Credit Shout may collect a share of sales or other compensation from the links on this page.
If you are looking to refinance your student loan debt, you need to check out SoFi student loansWell, SoFi is our top recommended lender
So we recommend you start the process of your student loan refi with SoFi.
So let’s get started and answer the question of “why we recommend SoFi”.
Interested in a Personal Loan Instead?
How a Student Loan Refinance with SoFi Works
SoFi lets you refinance and consolidate your federal or private student loans into a lower interest rate loan.
Just remember, if you refinance a federal loan, you will give up all federal protections and programs, including income-based repayment programs.
In most states, the minimum loan amount required is $5,000 (recently reduced from $10,000), but there’s no cap on how much you can refinance.
There is no origination fee and no prepayment penalty with SoFi.
SoFi’s Interest Rates
At this point, you are probably wondering just how low SoFi’s interest rates for student loan refinancings are.
SoFi offers you the option of choosing either a fixed rate or variable rate student loan.
- Fixed rate ARPs range from 2.99% – 6.88% (with AutoPay).
- Variable rate ARPs range from 2.25% – 6.43% (with AutoPay).
These rates are available so long as you enroll in Auto-Pay.
And you can choose to refinance or consolidate your loans You can refinance on a 5, 7, 10, 15, or 20 year term.
Auto-Pay is SoFi’s program where you sign up to have your monthly payment directly debited from your checking account.25%.
We recommend enrolling in Auto-Pay and enjoying the savings over the life of your loan.
We also recommend choosing the fixed-rate loan option if you are thinking of a longer-term loan.
If you do go with the variable rate option, however, you can save a lot of money and maybe even pay off your loan in a shorter period of time with prepayments.
If you choose the variable interest rate you should know that it is capped.
- Capped at 8.
- Capped at 9.
Do Your Qualify
You can refinance both federal and private student loans through SoFi, including previously consolidated federal loans through the FFEL or Direct consolidation programs or loans that were consolidated already with a private lender.
You will need to meet certain eligibility requirements:
- US citizen or permanent resident.
- Hold a 4-year graduate or undergraduate degree from an accredited university or graduate program.
- Good employment history with current employment or a confirmed employment offer.
- Good standing on current student loans.
- Adequate monthly income.
- Responsible financial history.
Right now, SoFi refinances student loans is available in all 50 states.
SoFi typically looks for applicants with credit score above 700.However, they are more concerned with your credit report showing a strong history of repayments and the monthly cash flow necessary to make their loan payments.
And you can apply for a SoFi student loan and check your interest rate without hurting your credit score.This is because they only do a soft credit check with your application.If you decide to proceed, however, they will do a hard credit check.