SoFi claims to offer some of the best student loan refinance products. We’ve reviewed their offerings to determine if their claims are valid and to evaluate how well this lender might meet your needs.
Key Takeaways
- SoFi offers competitive rates, flexible terms, and no fees for refinancing.
- Borrowers need a minimum 650 credit score and online-only account management.
- Federal loan refinancing forfeits income-driven repayment plans and forgiveness options.
- Offers hardship forbearance and deferment for unemployment, military duty, or education.
SLP Rating: ⭐⭐⭐⭐⭐
 | Credit Score: Mid 600s Loan Term: Up to 20 years APR: Competitive rates based on your credit profile and other factors. Cosigner Release Availability: No |
SoFi Loan Refinance Overview
SoFi (Social Finance, Inc.) was launched in 2011 and founded by Stanford business school students, aiming to provide more affordable student loan options.
Since its launch in 2011, SoFi has amassed over a decade of experience. We also cross-checked this detail on Vault, and it seems to be accurate.
After launch, SoFi quickly grew to become one of America’s biggest financial service providers, offering products like personal loans, investment accounts, insurance, and banking services.
SoFi enhances its credibility by being licensed as a financial service entity in the US. This gives them grounds to provide loan services, including student loan refinancing, amongst others, in multiple states.
Overall, customer reviews on SoFi student loan refinancing services have been favorable. Customers love that they offer competitive rates and member perks, like career coaching.
They also have a transparent fee structure, which is a plus when searching for a refinance lender.
SoFi student loan refinancing is best for borrowers who are comfortable managing finances online since they don’t have physical bank branches.
SoFi Loan Refinance Pros and Cons
| Pros | Cons |
| SoFi offers competitive refinancing rates compared to other lenders, but the exact rates you qualify for depend on your creditworthiness and other factors. | Credit requirements are high, typically above 650 |
| No origination, application, or prepayment fees | Operations are fully online; lacks in-person customer service |
| A mobile app is available | |
| They offer flexible repayment terms from 5 to 20 years |
SoFi Student Loan Refinance Details
SoFi effectively maintains transparency by providing essential information about their student loan refinancing options on their website. However, there are still some details that are missing that you might want to consider.
We’ll highlight what information is available and what’s unavailable on the site here.
Refinance Rates, Terms, and Fee Structure
SoFi’s student loan refinancing is structured to offer competitive rates, though your financial profile, such as your credit score and income, influences them.
SoFi’s refinance rates are competitive, but the exact rates depend on factors such as your credit profile and income. Rates are subject to change, so it’s a good idea to check SoFi’s website or use their soft credit check to see what rates you qualify for without impacting your credit score.
You can try using our Free Student Loan Refinance Calculator to get a realistic idea based on your specific profile. Alternatively, you can use SoFi’s soft credit check to see what rates you get without a heavy impact on your credit score.
It’s worth noting that all SLP clients receive a 0.25% discount if signing up for autopay.
Regarding fees, SoFi does not charge application, origination, or prepayment fees for its refinancing products, which is a strong plus for borrowers looking to reduce extra costs. Loans are available from $5,000 up to the amount of your outstanding student debt.
Loan terms are flexible, ranging from 5 to 20 years, allowing borrowers to choose a repayment timeline that aligns with their financial goals.
Shorter terms allow borrowers to pay off the loan quicker but often come with higher monthly payments. Longer terms, on the other hand, ensure you pay smaller amounts monthly.
Refinancing Requirements
Several potentially critical details were not disclosed on SoFi’s website. These include:
- Minimum required income: Undisclosed
- Maximum debt-to-income ratio: Undisclosed
- Approved borrowers’ income: Undisclosed
- Qualification after bankruptcy: Undisclosed
If these details are relevant to your situation, you might want to ask the support team online before signing up.
However, we did find some other essential information regarding SoFi’s student loan refinancing requirements.
- Residency Status: You must be a citizen or permanent resident in the US. Non-permanent residents must provide documentation of current immigration status, I-485 or Green card.
- Credit and Financial Health: SoFi requires a credit score of at least 650 to get better rates
- Loan Type: SoFi allows borrowers to refinance both federal and private student loans
- Education Level: Graduates with an associate degree or higher
- Approved School: Schools authorized to receive federal aid
Application Process
The application process for refinancing student loans with SoFi is straightforward, mostly online. Here’s a breakdown of the steps involved.
1. Pre-qualification
Start by checking your rate on SoFi’s website, which requires only a soft credit pull and doesn’t affect your credit score. Pre-qualifying lets you see potential loan terms and rates based on factors like your credit profile and employment status.
2. Application Submission
After reviewing your options, complete the formal application form. Here, SoFi will request more detailed documentation like proof of income, identity verification, and evidence of graduation (or current student loan balance).
This step involves a hard credit inquiry, which can impact your credit score slightly.
3. Loan Selection
SoFi offers various loan term options—5, 7, 10, 15, and 20 years. This allows you to choose a repayment period that aligns with your financial goals. You can also select between fixed and variable interest rates.
4. Approval and Loan Closure
Upon approval, SoFi will coordinate with your current loan servicers to pay off your original loans, consolidating them under the new SoFi refinance loan. At this point, you’ll automatically enter the repayment period based on your selected terms.
Additional Info
- SoFi advises comparing rates with other lenders and securing the highest credit score possible before applying. Borrowers with strong financial profiles tend to receive the best rates and terms.
- Note that SoFi doesn’t offer cosigner release for student loan refinance. If you need a cosigner, they’ll remain obligated unless you refinance the loan again without them
Repayment Options
For borrowers who refinance their student loans with SoFi, there are a variety of repayment options available if they encounter financial hardship. These include forbearance, deferment, and other options for special cases.
- Unemployment Forbearance: SoFi offers borrowers up to 12 months of forbearance, broken into three-month increments if they experience involuntary unemployment. During this period, monthly payments are paused, which provides temporary relief while interest continues to accrue.
- Economic Hardship Forbearance: If a borrower is facing significant financial hardship, such as during a period of low income, they may qualify for SoFi’s hardship forbearance. Eligibility is assessed individually and, if granted, allows payments to be paused for an agreed-upon period. Interest, however, accrues and is later capitalized.
- Academic and Military Deferment: SoFi extends deferment options to borrowers who return to school at least half-time for a graduate degree or who serve on active duty in the military.
- Disability Deferment: Borrowers who enter into a certified disability rehabilitation program can also access deferment, allowing them to postpone payments during their rehabilitation without penalty.
SoFi Student Loan Refinance Alternatives
Here are other lenders with refinancing rates and options similar to SoFi.
| Lender | Minimum Credit Score | Cosigner Release | APR | Loan Amount | Loan Term |
| Credible | Varies by the lender; generally 600+ | Yes, it’s available with some lenders | Competitive fixed and variable rates | Minimum $5,000 | 5-20 years |
| Earnest | 650+ | No | Competitive fixed and variable rates | $5,000 – $500,000 | 5-20 years |
| Laurel Road | 660+ | No | Competitive fixed and variable rates | $5,000+ | 5-20 years |
| Splash | Varies by lender; typically 600+ | Yes, with some lenders | Competitive fixed and variable rates | $5,000+ | 5-20 years |
Considerations for Federal Borrowers
As a federal borrower, before refinancing your student loans with a private lender like SoFi, consider these factors.
- Loss of Federal Protection: Refinancing federal student loans with a private lender eliminates access to federal benefits, such as income-driven repayment (IDR) plans, deferment, forbearance, and potential forgiveness programs like Public Service Loan Forgiveness (PSLF). These benefits can be highly valuable, especially during financial hardships or similar situations.
- Impact on Repayment Flexibility: Federal student loans allow borrowers to adjust monthly payments based on their income or family size through IDR plans. This flexibility is lost upon refinancing, as private loans generally come with fixed repayment terms and lack the adjustable payment options provided by federal loans.
- Future Policy Changes: During the COVID-19 pandemic, federal loans benefited from 0% interest rates and temporary payment suspensions—an option not available to private loans. Future policies or relief programs could offer similar benefits, making refinancing a choice that might prevent access to government-provided relief.
Learn More About Refinancing and Your Options
SoFi’s student loan refinancing provides a promising option for students seeking lower rates who are comfortable with an online-only lender.
Although refinancing with a lender like SoFi can be beneficial, federal borrowers must carefully consider the potential drawbacks. It’s not a choice you want to make in haste.
This is why we provide consultations for students considering refinancing. We help you assess your financial situation and provide guidance regarding your options and the next best step.
Reach out to us to get started!
Brandon Barfield is the President and Co-Founder of Student Loan Professor, and is nationally known as student loan expert for graduate health professions. Since 2011, Brandon has given hundreds of loan repayment presentations for schools, hospitals, and medical conferences across the country. With his diverse background in financial aid, financial planning and student loan advisory, Brandon has a broad understanding of the intricacies surrounding student loans, loan repayment strategies, and how they should be considered when graduates make other financial decisions.
