Good. You should be.
And luckily for you, I’ve found another company that can help you do just that!
Remember, you can see all of our student loan reviews on our comparison tool. You can also compare SoFi to other lenders using Credible – where you can compare up to eight different student loan refinancing companies.
Let’s take a look at what a company called SoFi has to offer.
What is SoFi?
SoFi is a peer to peer lending company specifically meant for those with student debt.
Individual and institutional investors are given the opportunity to help fund student loans and refinancing of student debt. Because of this SoFi is able to reward borrowers with interest rates starting as low as 2.66 percent.
They also offer career coaching, entrepreneur support, and unemployment protection.
Here are some more amazing accomplishments made by SoFi:
- Since inception in 2011, SoFi has funded more than $650 million in loans to 7,000 borrowers.
- 90+ day delinquencies are zero, compared with more than 11 percent for the overall student loan market.
- No fewer than 99.25 percent of SoFi refinance loans are current, and their borrowers are making full principal and interest payments—compared with a staggeringly low 69 percent in the total private student loan market.
- SoFi has also, to date, helped 28 borrowers get reemployed.
- They also help entrepreneurs get seed financing, assisting 19 borrowers to date.
With statistics like these it’s hard to deny that P2P lending for student loans may be the way to go for not only borrowers but investors, alike.
How it Works for Students
Just like CommonBond, SoFi offers loans for students who are currently completing an eligible MBA program.
To be considered you must be enrolled in an MBA or joint MBA/MD, MBA/JD, or similar program. In addition, you must be a US citizen or permanent resident, have no felonies, and haven’t declared bankruptcy in the past three years.
There are many eligible schools and states for this program. Check out the full list.
The Application Process
You can apply online at SoFi’s website. They claim the application process takes just under ten minutes and you can apply as an individual or with a cosigner.
You’ll receive an instant approval notice if you qualify for the loan.
After that you simply upload the requested documents, sign the contracts, and the loan money will be disbursed to your school.
The Interest Rate
SoFi offers variable and fixed interest rates. For the MBA loan program these are:
- Variable at 3.91% (4.14% APR)
- Fixed at 5.88% (6.05% APR) to 6.63% (6.94% APR)
They also offer full deferment and interest only payments options while in school.
How it Works for Graduates Refinancing/Consolidating
For those carrying student debt with high interest rates SoFi can help you drastically reduce the amount you pay in interest.
But first let’s look at who is eligible:
- You must be a US Citizen or Permanent Resident
- You must be at least 18 years of age and able to enter into a binding contract
- You must be employed or have an offer of employment
- You must not have declared bankruptcy in the past three (3) years
- You must not have been convicted of a felony
- If you are applying from a law program, you must have passed the bar and be licensed
SoFi has recently expanded their eligible school lists so there’s a good chance that you will qualify for refinancing.
It’s also important to note that SoFi will look at a number of factors including your employment status, credit score, and monthly cash flow before lending you money.
The Application Process
The application process is similar to that of the MBA loan program.
You simply fill out an online application as an individual or with a cosigner. You’ll receive an instant approval if you qualify for the loan.
After that you’ll upload the necessary documents and sign the contract.
The Interest Rates
The interest rates for the SoFi refinance program are as follows:
- Variable Rates start at 2.66% APR for auto pay and range to 5.68% without auto pay.
- Fixed rates begin at 3.63% APR with auto pay and range to 7.74% APR without auto pay.
They also offer unemployment protection in the event you lose your job. Mortgages and personal loans are available to those who use SoFi to refinance their student debt.
How it Works for Investors
Just like CommonBond you must be an accredited investor to invest with SoFi. (Here’s what an accredited investor is.)
If you qualify as an accredited investor you can simply create an account by visiting the SoFi website.
What Else You Need to Know
SoFi also offers parent loans, personal loans, and mortgages to those who are eligible. You can find out more by visiting their website.
If you’re paying high interest rates on your student loans and are looking for a way to save, it’s worth looking into student loan refinancing. We recommend doing this through Credible, a marketplace for student loan refinancing where you can receive and compare offers from multiple student loan refinancing lenders.
What do you think of peer to peer lending for student loans?