SoFi Student Loans Review

Loan terms for parent loans
Variable rates 1.15% – 11.18%
Fixed rates 4.23% – 10.66%
Loan amounts $ 5,000 up to the total cost of participation
Loan conditions 5, 7, 10 or 15 years
Lowest rates include 0.25% auto-pay discount

Loan eligibility

To qualify for a student loan from SoFi, SoFi will also perform a credit check. In addition, you must meet the following criteria:

  • Borrowers must be the age of majority in their state.
  • Borrowers must be US citizens. If you are a permanent resident, you can apply for a loan by calling 877-936-2269.
  • You or your co-signer must be employed or have income from other sources.
  • You must be enrolled at least half-time in a degree program at an eligible institution.
  • You must make satisfactory academic progress towards a degree.


Is the loan prequalification available?

SoFi has a loan prequalification tool. You can find out if you qualify for a loan online and get a rate quote without affecting your credit score. Once you’ve decided on an interest rate type and repayment term that’s right for you, you can continue with the application process.


Loan fees

SoFi student loans are zero-fee, which means there are no origination, application, late fees, or prepayment penalties. This is a significant advantage over other private lenders and even federal student loans, which often have expensive fees.

For example, Grad PLUS loans (federal student loans for graduate and professional borrowers) have a disbursement fee of 4.228%. If you borrowed $ 10,000, that means you would pay $ 422.80 just to get the money you borrowed. Opting for a private student loan instead could help save you money.


Loan discounts

SoFi offers two loan discounts:

  • Automatic payment remittance When you sign up for automatic payments with your checking or savings account, SoFi will reduce your interest rate by 0.25%.
  • SoFi membership discount – If you or your co-signer are already members of SoFi, you can benefit from an interest rate deduction of 0.125%.


Reimbursement options

There are four repayment options for undergraduate, graduate, MBA, and law school student loans:

  • Deferred – With deferred payments, you don’t start paying off your loan until six months after you graduate.
  • Interest only – As part of interest-only repayment, you make interest payments while in school, lowering your overall cost.
  • Partiel – During your studies, you pay $ 25 per month for your loan.
  • Immediate – With immediate repayment, you make full payment of principal and interest during your studies.

Parent student loans are only eligible for immediate repayment and interest only repayment.

When you take out a SoFi student loan, you become a SoFi member. This gives you access to certain benefits, including:

  • Career coaching – You can work one-on-one with a career coach for advice on getting promoted, transitioning to a new job, or improving your CV.
  • Sponsorship Program – If you refer friends to SoFi and they take out a loan, open an investment account, or sign up for a cash management account, you can earn a referral bonus. You can earn up to $ 10,000 for qualifying referrals.
  • Financial planning – You can make an appointment with a financial planner free of charge. When you meet, you can get advice on preparing for retirement, saving for a new home, or investing for your future goals.


Are co-signatories mandatory?

SoFi does not require applicants to have a co-signer for private student loans. However, the company says the rates for undergraduate borrowers are generally higher without a co-signer, as they typically have limited credit history and income. Add a co-signer to your application can help you get a loan and get a better interest rate.

One important thing to note is that SoFi was not used to offering co-signing versions. Loans disbursed before May 1, 2019 are not eligible for the release of the co-signer, but loans disbursed after that date are now.

SoFi loans issued before May 1, 2019 are not eligible for co-signatory release

After you have made 24 consecutive full payments of principal and interest, you can request a co-signer release. SoFi will review your information, and if you meet its underwriting and credit requirements, your co-signer can be withdrawn from the loan.


Loan forbearance and discharge options

SoFi offers several options for postponement and forbearance if you face unexpected difficulties and are unable to keep up with your payments.

For example, SoFi has an unemployment protection program. If you lose your job through no fault of your own, such as a company-wide layoff,you can forbear your loans and defer payments to them. You can defer payments for up to three months at a time, up to 12 months over the life of your loan. Forbearance may be available in other circumstances, such as medical issues, damage to your home, or natural disaster.

Undergraduate and graduate student loans are eligible for dump in the event of death or total and permanent disability of the borrower. Parent refinance loans are not eligible for these options.


Loan approval and disbursement timeframe

You can apply and get a credit decision in minutes. Once you have applied for and approved a loan, you need to submit supporting documents and sign your loan documents.

From there, SoFi will send the loan application information to your college for certification. Once SoFi receives this information from the school, it will schedule the loan disbursement according to the schedule suggested by the college. It can take four to six weeks between when your application is submitted and the loan disbursement.


Is Student Loan Refinancing Available?

Yes. SoFi offers a student loan refinancing for federal and private student loans. The minimum amount you can refinance is $ 5,000, but there is no limit on how much you can consolidate.


Customer service

SoFi does not manage its student loans on its own. Instead, he uses the Higher Education Loan Authority of the State of Missouri (MOHELA) as his loan manager. If you take out a loan from SOFI, MOHELA is the entity to which you will make the payments and whom you should contact if you have any questions about your account.

SoFi is not included in the Consumer Financial Protection Bureau’s annual Private Education Loans Ombudsman report. On TrustPilot, SoFi has over 2,522 reviews and a 2.9 star rating. Customer support is available by emailing [email protected], chat, Twitter, or calling 855-456-7634.


Apply for a SoFi student loan

Even if you think a SoFi private student loan is right for you, it is a good idea to fill out the Free Federal Student Aid Application (FAFSA). The FAFSA submission ensures that you will get all the financial assistance you are entitled to, including donations, such as grants.

Once you have considered all of your financial aid options, you can go ahead with your SoFi student loan application. First of all, use the SoFi prequalification tool to get a rate estimate and see what loan terms are available to you. Once you have found a loan that is right for you, you can complete the entire application. You will need the following information:

  • Social Security number
  • Information on the chosen school
  • Amount of loan requested
  • Expected financial aid (including federal financial aid and scholarships)
  • Rent or mortgage payments
  • Income and employer information
  • Permanent Address
  • School address (if applicable)

Final verdict

SoFi student loans are a good option if you’ve run out of federal aid. The lender offers competitive interest rates and does not charge any additional fees. Plus, it offers unemployment protection and forbearance options, giving you an extra layer of protection that some other private lenders don’t.



Methodology

Investopedia is committed to providing consumers with unbiased and comprehensive reviews of student lenders. We’ve collected over 45 data points from over 15 lenders, including interest rates, fees, loan amounts, and repayment terms, to make sure our content helps users get the right one. borrowing decision for their educational needs.

Investopedia requires that writers use primary sources to support their work. These include white papers, government data, original reports, and interviews with industry experts. We also reference original research from other reputable publishers where applicable. You can read more about the standards we follow to produce accurate and unbiased content in our editorial policy .

  1. SoFi. “Undergraduate student loans. “Accessed November 26, 2021.

  2. SoFi. “Graduate loans. “Accessed November 26, 2021.

  3. SoFi. “Law school and MBA loans. “Accessed November 26, 2021.

  4. SoFi. “Loans to parents. “Accessed November 26, 2021.

  5. US Department of Education. “Other than interest, are there any charges for this loan?“Accessed November 26, 2021.

  6. SoFi. “Frequently Asked Questions. “Accessed November 26, 2021.

  7. SoFi. “Release of co-signer. “Accessed November 26, 2021.

  8. Consumer Finance Protection Bureau. “Annual report of the CFPB Private Education Loans Ombudsman. “Accessed November 26, 2021.

  9. TrustPilot.com. “SoFi Reviews. “Accessed November 26, 2021.

Source link

About Wilhelmina Go

Check Also

How to be comfortable delegating

In his book, The art of being unreasonableEli Broad, the only person who started two …