SoFi is an online lender founded by Stanford business school students in 2011. Originally focused on student loan refinancing, the company added private student loans in 2019. Its student loans for undergraduates, graduates and parents start at $5,000 and charge no fees.
As part of a new SoFi program, federal student loan borrowers can lock in current interest rates but delay disbursing their loans until September 2021. This would allow borrowers to continue to take advantage of the federal student loan payment freeze, currently set to expire after Sept. 30. The first payment would be due in October. This offer is set to expire in September.
- Zero fees: You won’t have to pay origination fees, application fees, prepayment penalties, late fees or insufficient funds fees.
- Flexible repayment options: SoFi offers co-signer release options, plus borrowers hit by financial hardship can access programs and benefits.
- Prequalify: Whether seeking undergraduate, graduate or parent loans, you and your co-signer can check rates and terms before submitting a full loan application without hurting your credit scores.
- Doesn’t disclose all loan requirements: This means that deciding whether the lender is right for you can be challenging, but prequalification is available online.
- Potentially slow funding: The entire application process, including school certification of the loan, could take four to six weeks, depending on the school. Borrowers who need funds faster should contact SoFi at 855-456-7634.
Find the Best Student Loans for You
SoFi Private Student Loans offers undergraduate student loans, graduate student loans, law and MBA student loans, and parent student loans. Loans start at $5,000 and cover up to 100% of the school-certified cost of attendance, including tuition, room and board, food, and books and supplies.
The application process can be completed online, including accepting a loan and electronically signing your loan documents. To apply for a SoFi private student loan, you’ll need to provide this information:
- Social Security number.
- School information, including academic term and estimated graduation date.
- How much you’d like to borrow.
- Any financial aid you expect to receive.
- Proof of income, if applicable.
A co-signer will need a Social Security number, a government-issued ID, and an annual income and proof of income.
Once you’ve accepted a loan, SoFi will send the application information to your school for certification, which involves the school verifying your enrollment status, academic progress and financial aid. SoFi will also ask the school to check that you meet its satisfactory academic progress standards, which measure academic progress toward degree completion.
Certification times vary from days to weeks because each school has its own processes and timelines. Once the school has certified the loan, SoFi will schedule the funds to be sent to the school. The entire process typically takes four to six weeks, but it can be shorter for some schools.
Students must be enrolled at least half-time at eligible institutions and meet underwriting criteria to obtain private student loans from SoFi.
The minimum loan amount is $5,000, but it may be higher in some states.
Annual percentage rates depend on the type of student loan and whether you set up autopay, which qualifies for a 0.25 percentage point rate discount. Here are the APRs you can expect with the autopay discount:
- Undergraduate loans with fixed APRs of 4.23% to 10.66% or variable APRs of 1.20% to 11.23%.
- Graduate student loans with fixed APRs from 4.13% to 10.90% and variable APRs from 1.10% to 11.34%.
- Law school and MBA student loans with fixed APRs from 4.08% to 10.86% and variable APRs from 1.05% to 11.29%.
- Parent student loans with fixed APRs from 4.23% to 10.66% fixed APR and variable APRs from 1.20% to 11.23%.
SoFi charges no fees. This includes application fees, origination fees, late fees, unsuccessful payment fees, late fees and prepayment penalties.
Borrowers have two repayment options for parent student loans – immediate or interest only – and four options for undergraduate, graduate, law and MBA loans, including:
- Deferred, which lets you begin repaying six months after you graduate, drop below half-time or leave school.
- Interest only, which lets you make payments on just the interest while you’re in school and then start repayment six months after graduating, dropping below half-time or leaving school.
- Partial repayment, which involves a fixed $25 payment while you’re in school, and repayment begins six months after graduating, dropping below half-time or leaving school.
- Immediate repayment, which means you start paying principal and interest right away.
You can save money on your SoFi student loan in two ways: Sign up for autopay, and become a SoFi member.
The lender offers a 0.25 percentage point interest rate discount when borrowers enroll in automatic payments from a checking or savings account.
Borrowers and co-signers who are SoFi members could qualify for an additional 0.125 percentage point interest rate reduction on SoFi student loans. SoFi membership is free, but you will need to download the SoFi app to access all of your member benefits.
A borrower must be a U.S. citizen or other eligible status and meet SoFi’s underwriting requirements to qualify for a SoFi student loan.
You’ll need to be enrolled at least half-time in a degree program at an eligible institution, and your school must determine that you’re making satisfactory progress toward a degree.
Co-signers are not required but can help borrowers with limited credit histories increase their likelihood of approval. Loan eligibility depends on a number of factors, including your financial history, credit score and monthly income versus expenses, according to SoFi.
The lender does not disclose the minimum credit score to qualify for a SoFi student loan. Your credit score is only part of what SoFi considers.
SoFi looks at an applicant’s full financial picture, including monthly income, career experience and future income based on job offer letters. Also, the borrower or co-signer must be employed or have sufficient income to meet the lender’s requirements.
SoFi offers undergraduate, graduate and parent student loans in all 50 states and the District of Columbia.
SoFi received 4.3 out of 5 stars from U.S. News & World Report. This rating is calculated based on the lender’s affordability, eligibility criteria for potential borrowers and customer service. The average rating for lenders in the student loans category is 4.4 stars.
SoFi is not accredited by the Better Business Bureau but receives an A+ rating and 1.39 out of 5 stars based on 95 customer reviews. The lender earns an Average rating from Trustpilot and a score of 3.3 out of 5 stars based on almost 2,500 user reviews.
The Consumer Financial Protection Bureau received 23 complaints in 2020 about SoFi student loans, and the company provided a timely response to all complaints. The most common complaints were about getting a loan, dealing with the lender or servicer and struggling to repay the loan.
SoFi Private Student Loans offers customer support by phone and by chat from the lender’s Contact Us page. Call customer service at 855-456-7634 from 5 a.m. to 7 p.m. Pacific time Monday through Thursday and from 5 a.m. to 5 p.m. Pacific time Friday through Sunday.
In addition to an online application process, including prequalification, SoFi offers members access to Edmit Plus, a tool that can help you compare school costs and estimate financial aid. SoFi members can also access complimentary career coaches and financial planners.
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