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SoFi is one of the largest student loan refinance lenders in the country. First established back In 2012, it became one of the first companies to refinance federal and private student loans together. How are they in 2021? Let’s take a close look.
As a company, SoFi is a very sound choice and they do have a lot to offer clients. According to the company, the average income among approved borrowers is over $100K. Despite that, SoFi could be a fit for borrowers that have more conservative lifestyles. That does sound like an option because the company has no specific minimum income requirement and they accept borrowers whose highest education level is an associate degree.
Sofi student loan refinancing refers to the process of paying off your existing loan, or multiple loans, with a new loan. Students do this because they’re looking for a better rate of interest or terms that versus the current terms they have with their loan.
There’s 3 major parts to a student loan. Every student loans includes the following variables:
The value of the loan (the “principal”)
The interest rate on the loan
The repayment period (also known as the loan’s term)
When a borrower refinances their student loan(s), they are usually looking to change either the interest rate, the repayment period, or both.
If you do decide to refinance, it could mean you’ll be forfeiting your federal loan benefits like income-based repayment plans, deferment, and forbearance. Here are some of the most common potential outcomes from student loan refinancing:
SoFi offers a wide range of products that can help you fund your college education. As you’ll learn in this guide, Sofi refinance student loans can help you get out of bad interest rates. SoFi refinance rates are competitive with the best rates on the market. Still, you always want to do your due diligence.
Here are some pros and cons you should be aware of before applying.
No Fees: Yes, no fees, not even late fees! We love these features. You won’t be charged any student loan fees with SoFi, not even late fees.
Unemployment Protection – One of the features SoFi is well known for is its Unemployment Protection Program, which puts your loans into forbearance in 3 month increments if you lose your job through no fault of your own. On top of that, SoFi also has employment resources you can utilize, these include personalized strength assessments, resume-parsing technology, and one-on-one time with career coaches.
Discounts For Co-Signers – If your co-signer is a SoFi member, you may qualify to get a 0.125 percent discount on your private student loan. While this is not a big percentage, it can add up to a fair amount of money, so it’s definitely worth checking out.
Other perks include;
Students can get a $400 discount on ACT and SAT prep courses.
You can get rate estimates without hurting your credit.
Offers free career coaching and no-fee investing.
Get a no cosigner release option.
Some Requirements Are Strict – If you’re choosing to refinance your student loans, you need to have graduated from an approved college or university in order to apply. Also, you need to have a steady income or hold a job offer within 90 days of starting the job. For those of you that are a medical resident and wanting to refinance, you’ll have to have at least $10,000 in student loan debt and have up to four years left in your approved program.
High APR Caps – Your credit history is going to be key for getting a great APR with SoFi. SoFi’s loans may be more expensive than loans from competitors if your credit is average, this is especially true if you’re looking to take out a loan for graduate school.
Let’s take a look at SoFi’s Interest rates, fees and terms below.
A soft credit check to see if you qualify and see what rate you would receive
Different loan terms: 5, 7, 10, 15 or 20 years.
Different loan amounts: $5,000 up to your total outstanding loan balance.
It can be transferred to a parent loan to the child
No application or origination fees
No prepayment penalties
It does have late fees: If your 15 days past due, you’ll be charged $5
It’s difficult to compare SoFi refinance rates and interest rates versus other student loan refinance lenders. There’s a number of different factors that can influence the rate you would get, such as payment history, credit history, if you’ll have a cosigner, as well as your current financial situation. If you want to see, you’ll need to apply on their website.
Compare SoFi’s range of interest rates with other student loan refinance lenders. Your actual rate will depend on factors including your — or your co-signer’s — credit history and financial situation. To see what rate SoFi will offer you, apply on its website.
SoFi Customer Service
Another core benefit for using SoFi is their customer support. SoFi gets an “A” score from the Better Business Bureau. The score considers complaint history and the institution’s response to those complaints.
The customer service department is available seven days a week from 5 a.m. to 7 p.m. PT Monday through Thursday and from 5 a.m. to 5 p.m. PT Friday through Sunday.
You can contact customer service by phone at 855-456-7634.
SoFi’s loan servicer is MOHELA. They have an in-house customer service team to help you. They even have a process for escalating concerns. It’s important to note, that doesn’t mean borrowers will be assigned a dedicated advisor, banker, or representative.
SoFi offers its borrowers the following perks:
Career Coaching: Work with a one-on-one advisor to plan a career transition, search for a job and improve your personal branding.
Community Events: Attend workshops, speaker series and social events such as happy hours and dinners.
No-Fee Investing: Use SoFi’s wealth management platform without paying any management fees.
How To Apply For A Loan With SoFi
It doesn’t matter if you’re applying for an undergraduate loan, graduate loan or refinancing loan, the student application process can be completed entirely online. According to SoFi, you can apply and get a decision within minutes. The complete process, from completing the application to SoFi sending the money to your school, this will take anywhere from 4 to 6 weeks. If you’re refinancing, the funding process takes about 7-15 business days.
Before you begin applying for a SoFi loan, prepare your Social Security number, proof of income, bank account information, school name, cost of attendance, student status, existing financial aid, expected graduation date, references and co-signer information.
Here’s what the process looks like when applying for a student loan from SoFi:
Start the application process online and find out if you’re pre-qualified. The whole application can be done online.
Choose an interest rate and repayment option. You have the option of variable or fixed rates and four different repayment options.
If you get approved, sign the loan and accept. SoFi allows you to upload screenshots of your information and electronically sign paperwork.
SoFi sends the loan application and information to your school for certification.
Credit Shout is a community of personal finance experts dedicated to helping you save money and make smart financial decisions. Learn how to master your credit card rewards, improve your credit score and start eliminating your debt.