Colleges are expensive and often require students to apply for loans. Despite the scholarships and grants offered by colleges, students may need additional funds to cover their tuition fees and other expenses.
Student loans make it easier for students to pursue higher education in top colleges. However, finding a reliable lender is a difficult job because of the many available choices.
SoFi is a well-known student loan provider that offers great options to college students. They provide private student loans to professional students, graduates, and undergraduates.
In our SoFi student loans review, we will cover important details about this lender.
SoFi Overview
SoFi (Social Finance) is a well-established financial company that started operations in 2011. The company is the brainchild of a group of students from Stanford Business School, with Anthony Noto being the CEO.
Initially, the company offered private student loans and followed a lending model supported by alumni. In 2012, SoFi started offering private and federal student refinancing loans. Later, they started offering loans to students in the medical and other fields.
At present, the company has partnerships with several top banks and offers private student loans across all 50 states in the country. SoFi is in association with the following banks:
- Capital Bank
- TriState Bank
- HSBC Bank USA
- Bank United
- MetaBank
- Eagle Bank
- Wells Fargo Bank, N.A.
- East West Bank
Types Of Student Loans Offered By SoFi
SoFi offers different types of student loans, catering to students in diverse education fields. Here’s a brief rundown of SoFi private student loans offered:
- MBA and Law Loans
Students pursuing a Law or MBA can seek a loan from SoFi. The minimum borrowing amount is $1,000.
- Undergraduate Loans
SoFi’s undergraduate loans come with no repayment terms and fees. Students can apply for any amount of loan money with no maximum limit and repay it over a 5 to 15-year period. When applying for an undergraduate loan, students can select between a variable rate or a fixed interest rate.
- Health Professions Student Loans
This loan is particularly for students in the medical, or dental field. SoFi offers special loans tailored to students’ needs.
- Parent Loans
SoFi offers loans for sponsors or parents of college students at a slightly higher interest rate. However, the repayment terms and loan amounts are flexible. The borrower can reduce the loan balance with SoFi points, earned using the SoFi app.
- Graduate Student Loans
SoFi offers graduate student loans at a higher fixed interest rate. Students can borrow up to the total cost of attending school, and repay it in 15 years.
Eligibility Criteria For SoFi Student Loans
SoFi provides student loans that are available in all 50 states. However, certain criteria need to be met to qualify for a SoFi student loan. These conditions are:
- Enrolment
Applying students must be enrolled half-time in a program that grants degrees at a recognized institution and associate’s degree programs are not included.
- Financial Assessment
Apply student needs to get their credit score, debt-to-income, and financial history checked by SoFi.
- Legal Status
The applying candidate must be a legal and permanent U.S. citizen. Non-permanent resident aliens can also apply.
- Income
The applying candidate should either have a job or sufficient income to repay the loan. Or they can apply with a co-signer who meets these income requirements.
- Age
The candidate should be of legal age in their state or they will need a co-signer who meets this requirement.
Meeting these criteria makes a student eligible for a SoFi student loan.
SoFi Student Loans Rates & Terms
SoFi private student loans are offered at the best interest rates. Borrowers can repay it over 5, 7, 10, 15, or 20 years. Some loans are offered at variable interest rates, some at fixed interest rates, and others have both options.
The minimum refinance amount on an existing loan is $5,000, except in California, where it is $10,000.
At present, the SoFi student loan rates are:
- Fixed Rates: These range from 5.24% to 9.99% APR (with AutoPay).
- Variable Rates: They vary from 6.24% to 9.99% APR (with AutoPay).
These interest rates are subject to change depending on market conditions, and therefore one should check their website for the up-to-date rates.
SoFi offers competitive interest rates, among the lowest in the country. However the rates and terms can change at any time, so one should verify the latest information on the official website.
Loan Repayment Options
SoFi has four different repayment plans for borrowers and these include:
- Immediate
This plan requires borrowers to repay the interest and principal amount right away, resulting in high monthly payments. However, it is the least expensive in the long run.
- Partial
This plan requires borrowers to pay a small $25 monthly payment while they are still in school and after graduation; it switches to a standard payment schedule.
- Interest Only
Under this option, borrowers only pay interest while they are in school, and after graduation, it changes to a standard payment plan.
- Deferred
This plan doesn’t require borrowers to pay while they are in school. The full payment starts six months after their graduation.
SoFi offers a 0.25% interest rate discount to borrowers signing up for automatic payments. This discount is factored into the advertised loan rates, making it an attractive incentive for borrowers.
These repayment options provide borrowers the flexibility to choose a plan that best fits their financial situation and preferences.
Before applying for a refinancing loan, borrowers should check out the SoFi student loan refinance rates on the official website.
Is It Safe?
SoFi’s website is protected with TLS 1.2 encryption and it regularly undergoes third-party security audits. It assesses its safety protocols against standards like PCI DSS and SSAE18 SOC2 to ensure that its security measures meet industry standards.
SoFi provides additional security with two-factor authentication and helps users prevent unauthorized access to their accounts.
SoFi provides FDIC insurance to users with a SoFi Money cash account up to $1.5 million. This means if something were to happen to SoFi, the deposited funds would be safeguarded. They take security seriously and protect users’ personal and financial information.
Final Words
SoFi offers a range of student loan options to meet the specific needs of borrowers. The loans are offered at competitive interest rates and flexible repayment plans. They simplify the process of applying for student loans for those who need it. Any graduate, undergraduate, or professional student can apply for SoFi loans to fund their education.
