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››SoFi refinancing and private student loan: 2021 report

SoFi refinancing and private student loan: 2021 report

By Melissa A. Hazlett
March 11, 2021
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Full review

SoFi started offering private student loans to undergraduates in April 2019. It is a solid option for borrowers who have exhausted their federal student loan options and need the extra cash to fund tuition. . It also offers benefits such as career coaching, community events, and investments at no cost.

Compared to the largest private student loan companies in the industry, SoFi sets itself apart by offering personalized rate estimates without affecting your credit. This allows you to shop at the best rate without penalty. SoFi is also a good option for borrowers who want to pay off their student loan quickly. You can make payments above the minimum through automatic payment.

SoFi private student loans at a glance

  • You can see if you will qualify and what rate you will get without a credit check.

  • Several school repayment options available, including interest only, partial and deferred.

How SoFi could improve

SoFi, like other five-star lenders, isn’t perfect. SoFi could improve its private student loan product by:

  • Loan to international students.

  • Provide more repayment options for borrowers in difficulty.

SoFi Private Student Loan Details

  • Get a personalized rate before applying: Yes.

  • Loan term: 5, 10 or 15 years.

  • Loan amount: $ 5,000 up to the total cost of your participation.

  • Application or origin fees: No.

Compare SoFi’s interest rate range with private student loan lenders. Your actual rate will depend on factors such as your credit history and financial situation or that of your co-signer. To see what price SoFi will offer you, apply on its website.

Financial

  • Minimum credit score: Do not disclose.

  • Typical credit score of approved borrowers or co-signers: 700+.

  • Typical income of approved borrowers: not disclosed.

  • Maximum debt-to-income ratio: not disclosed.

  • May be eligible if you have declared bankruptcy: Yes, after bankruptcy, your credit report was filed. This happens after seven years for Chapter 13 bankruptcy and after 10 years for Chapter 7.

Other

  • Citizenship: Must be a U.S. citizen, permanent resident, or visa holder (E-2, E-3, H-1B, J-1, L-1 or O-1). The non-permanent resident alien (or DACA beneficiary) without a valid visa must apply with a creditworthy co-signer who is a U.S. citizen or permanent resident.

  • Location: Available in all 50 US states.

  • Must be enrolled part time or more: Yes.

  • Types of schools served: Any school authorized to receive federal assistance. Most public and private four-year schools are accepted.

  • Percentage of borrowers who have a co-signer: did not disclose.

School reimbursement options:

  • Deferred Repayment: Do not make any payments while you are in school.

  • Interest-only repayment: Pay interest only while you are in school.

  • Partial repayment: Pay $ 25 per month while in school.

  • Immediate repayment: Make full payments as soon as the loan is disbursed, while you are still in school.

Post-school reimbursement options

  • Grace period: 6 months, but only for the deferred repayment option.

  • School postponement: Yes.

  • Forbearance: Yes, borrowers who lose their jobs through no fault of their own can defer their payments for three months at a time, up to a total of 12 months. They must work with SoFi Career Advisors to qualify.

  • Co-signer version available: Yes.

  • Death or disability: Yes. Contact customer service for the eligibility conditions.

  • Release of the loan if the co-signer dies or becomes disabled: No.

Refund preferences

  • Allow payments above the minimum via automatic payment: Yes.

  • Allows bi-weekly payments via automatic payment: No.

  • Internal Customer Service Team: Yes.

  • Concern escalation process: Yes.

  • Borrowers are assigned a dedicated banker, advisor or representative: No.

  • Average time from request to approval: Many applicants can get their approval decision within minutes.

SoFi offers its borrowers the following advantages:

  • Career Coaching: Work with an individual advisor to plan for a career transition, search for employment, and improve your personal branding.

  • Community Events: Attend workshops, lecture series, and social events such as happy hours and dinners.

  • No-cost investment: use SoFi’s wealth management platform without paying management fees.

Before applying for a SoFi student loan

Before taking out a SoFi student loan or any other private student loan, first exhaust your federal student loan options. Submit the Free Federal Student Aid Application, known as FAFSA, to apply.

Compare your private student loan options to make sure you get the best rate you qualify for. In addition to interest rates, consider lenders’ repayment alternatives and the flexibility they offer to borrowers who are struggling to make payments.

If you are not eligible for the SoFi student loan

If SoFi denies your student loan application, the lender tell you why. Depending on the reason, you may want to consider other lenders or, if you haven’t already, try applying with a co-signer.

STUDENT LOAN RATING METHODOLOGY

NerdWallet believes that the best student loan is one that you can pay off at the lowest possible interest rate. That’s why NerdWallet’s student loan ratings reward lenders who offer a variety of loan terms, limit their fees and penalties, and give borrowers multiple options to avoid default. Points are also awarded for flexible credit checks, underwriting transparency, and other user-friendly features. Use these ratings as a guide, but we encourage you to research the lowest interest rate you can qualify for. NerdWallet does not receive any compensation for its reviews. Read our editorial guidelines.



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