SoFi Review 2018: Student Loan Refinancing And More!

Who Qualifies To Refinance With SoFi?

The number one criteria that SoFi considers when underwriting its loans is cash flow. If you have a high income, and relatively few debts, you’ll probably qualify to refinance with SoFi. In addition to considering cash flow, SoFi considers your credit history, and your current debt load. SoFi doesn’t use traditional credit scoring algorithms, but generally finds that people with FICO credit scores in the 700 range or above tend to qualify.

We've found that SoFi was once one of the toughest places to qualify for refinancing, but over the last few years, they have loosened their lending standards a bit. However, if you have a low credit score, you might be better off going with a company like Earnest.

In addition to meeting underwriting criteria, you must be a citizen or permanent resident of the United States with a degree from a four year university.

SoFi’s Student Loan Refinancing Rates and Terms

SoFi offers borrowing terms of 5,7,10, 15, or 20 years, and it offers fixed and variable rate loans. The minimum amount you can refinance is $5,000.

Current SoFi rates are as follows.

Fixed:

• 3.899% to 7.979% APR (with AutoPay)
• 4.149% to 8.229% APR (without AutoPay)

Variable:

• 2.470%to 6.990% APR (with AutoPay). 
• 2.720% to 7.240% APR (without AutoPay)

Maximum interest rates on variable rate loans are 8.95-9.95% depending on the term length. These rates are current as of November 6, 2018.

Remember, these rates do change, so please check their website for the latest rates.

SoFi consistently offers rates that are among the lowest in the country. Other than competitive interest rates, SoFi’s loan offerings aren’t particularly exceptional.

The only lender we've seen consistently better rates at is Splash Financial.

Any Concerning Fine Print?

When you refinance with any lender, you lose the protections offered by Federal student loans. For example, people who refinance with SoFi cannot opt for an income based repayment program. SoFi does have a forbearance program if you’ve become unemployed. The Unemployment Protection is offered in three month increments, and is capped at 12 months over the life of the loan. While generous, other lenders offer better forbearance programs.

SoFi also offer loan deferment for borrowers who return to graduate school, undergo disability rehabilitation, or serve on active military duty. It also offers a six month deferment to people who are in SoFi’s entrepreneurship program. During either deferment or forbearance interest continues to accrue on the loan.

SoFi's website doesn't list death and disability discharge as an option for borrowers, but we've confirmed with their compliance team that in cases of borrower death, the loan will be discharged - even if there is a cosigner. It will be listed on your promissory note.

However, there is no option for disability discharge at this time. Federal loans do offer this protection, and some private loans have started to as well. If you borrow with SoFi, consider a low cost life insurance policy or disability insurance policy.

One unique aspect of borrowing with SoFi is its emphasis on career growth. As a borrower, you will qualify for free career coaching and local networking events. These personalized services can help push you towards a higher income and faster debt repayment.

Unique SoFi Repayment Programs

SoFi does offer some unique repayment programs that could benefit some. For example, they have a program for medical and dental residency candidates that offer $100/mo payments while in residency (for up to 4 years). 

This can be a life saver to doctors and dentists who are still in training, and only earning $50,000 per year, but have $200,000+ in student loan debt. 

The only similar program we've seen is offered by Splash Financial, where you can make $1 per month payments in residency. 

Also, SoFi does allow for borrowers to refinance Parent PLUS Loans. Parent PLUS Loans are some of the most difficult Federal student loans to deal with, and refinancing is typically the best option if possible.

SoFi's Mortgage And Personal Loans

SoFi also offers mortgages and personal loans as complimentary products to it's student loan refinancing program.

We've tried to use SoFi Mortgage, and we have a full SoFi Mortgage review here.

For personal loans, you should compare SoFi to other lenders just like you would with student loan refinancing. Check out Credible's Personal Loan Tool and see how SoFi compares for what you need.

Bottom line

SoFi offers decent interest rates on shorter term loans (up to ten years). If you’ve got a great income, and a decent credit history, you’ll likely qualify for a loan from SoFi. 

You can get a free rate estimate from SoFi (they won’t pull your credit until underwriting), so take a few minutes to get your rate. Then compare that rate with other lenders before deciding where to refinance.

Plus, College Investor readers can get a $200 bonus when they refinance with SoFi. Don't just go with SoFi for the bonus, and make sure you check out other student loan refinancing bonuses as well. But, if you were already considering SoFi, make sure you take advantage.