What is SoFi?
Developed by Stanford graduates using a Peer-to-Peer (P2P) model, SoFi began as an effort to relieve Stanford graduates' student debt by crowdsourcing funds from Stanford alumni and, although it has expanded to offer more loans to a wider demographic, their target borrower is still pretty elite — a top-school graduate with a high-income degree making a mid-six-figure salary.
In general, you need a high credit score and well-paying job to qualify. This means loans can be difficult to get, but the great interest rates and flexible terms make it worth applying if you meet the requirements.
What are the Advantages of a SoFi Loan?
If you can hit the benchmarks of “greatness” that SoFi values in applicants, there are definite advantages to refinancing or getting a loan with them, including:
- Refinance federal and private student loans together
- Great interest rates
- Personal loans up to $100,000
- Flexible terms
- SoFi membership that offers networking, career counselling, unemployment insurance and an entrepreneur program
You become a member when you borrow or invest with SoFi. You need to be in good-standing, and your membership continues even after you payoff your loan. However, SoFi insurance customers are not considered members.
AutoPay Discount
SoFi borrowers who authorize automatic deductions from their bank for their monthly payments receive a 0.25% discount on the interest rate of their loan.
SoFi Consumer Reviews
The vast majority of reviews are exceedingly positive. Clients are happy with the interest rates, payment options and interactions with SoFi.
The pain point is application denial. SoFi's membership culture is exclusive.
On the other hand, there could be basic reasons you are denied a SoFi loan that you didn't see in the small print. For one, all their loans are not available or have rate differentials in some states. To qualify for student loan refinancing or a parent loan, you must have graduated or your child must be enrolled full-time in an accredited university.
If you have been denied a SoFi loan, also check to see the minimum loan amounts. You may have asked for less than the required amount. In most states, the minimum is $5,000, but in Arizona, Massachusetts and New Hampshire is $10,001 and in Kentucky, it is $15,001.
SoFi admits to a strict eligibility criteria that they are constantly “tweaking” because it excludes many complicated pay structures it has yet to understand. SoFi uses an algorithm to automatically check applicant eligibility and the company has yet to provide the customer service end to that technology: actually communicating to applicants why they were denied a loan.
SoFi's Financial Products
SoFi offers online student refinancing, parent and personal loans as well as mortgages.
SoFi loans have no penalties like application fees, origination fees or prepayment fees.
Eligibility requirements vary depending on the type of loan and where you live. You can find out more on SoFi’s website.
Student Loan Refinancing
SoFi student loan refinancing is great for working graduates with high-interest student federal or private loan debt.
WARNING: When you refinance with SoFi, you are no longer eligible for federal loan protections like loan forgiveness, income-driven plans, deferment and forbearance.
Details:
- Refinancing for both federal and private loans, as well a previously refinanced loans
- A qualified co-signer could greatly increase chances of approval and good rates
Restrictions:
- Bar loans and residency loan refinancing not available
- Not available in Nevada
Unique Eligibility Requirements:
- Existing loans are in good standing
- Graduate of Title IV accredited university or graduate programs
Rates & Terms (Reflect AutoPay Discount):
Loan Amounts:
- Minimum $5,000 (dependent on state
- Maximum = full amount of qualified student loans
Parent Plus Loans Refinancing
Creditworthy parents can get significant savings by refinancing federal Parent Plus loans with SoFi.
Details:
- Repayment begins about 45 days after outstanding loans are paid off
Restrictions:
- Not available in Nevada
- Variable APR not offered in Illinois or Ohio
Rates & Terms (Reflect AutoPay Discount):
Loan Amounts:
- Minimum $10,000
- Maximum: Up to the outstanding amount of federal or private student loans
Parent Loans
Parents can apply to offset tuition and other expenses for a year of their child's education.
Details:
- Loan disbursed in one payment 7-10 days after approval
- No deferment
- 1st payment is scheduled within 30-45 days of loan receipt
Restrictions:
- Only a child's other parent or guardian can co-sign
- Not available in Nevada
- Variable APR not available in Illinois or Ohio
Unique Eligibility Requirements:
- Parent or legal guardian of a full-time student at a Title IV accredited university or graduate programs
Terms & Rates (Reflect AutoPay Discount):
Loan Amounts:
- Minimum $5,000 (dependent on state)
- Maximum Cost of Attendance less grants or other aid
Personal Loans
SoFi offers unsecured personal loans for a variety of uses included to pay off credit cards or make large purchases.
Restrictions:
- Cannot be used for education
- No co-signers
- Not offered in Mississippi or Nevada
- Variable rates are not available some states
- Maximum interest rates vary by states
Rates & Terms (Reflect AutoPay Discount):
Loan Amounts:
- Minimum $5,000 – $15,001 varies by states
- Maximum $100,000
How to Use SoFi Services
Application Process
SoFi's online application is an easy-to-use process takes about 15 minutes.
Before applying, users should set up an account and use the Find My Rate tool. This step is called a “soft check” that will not affect your credit score. SoFi does do a “hard check” after the application has been submitted.
How User-Friendly is SoFi?
SoFi has made a concerted effort to make the site attractive, intuitive and offers lots of resources. There are several interactive tools borrowers can use to determine the best way to refinance loans and calculate savings including:
- Student Loan Calculator
- Student Loan Options Debt Navigator
- Personal Loan Calculator
- Mortgage Calculator
- IRA Contribution Calculator
There are also a number of useful guides and articles related to personal finance.
However, there have been some criticisms of the website application process. Most involve applicants repeatedly ask to upload their documentation. They need to fix that pronto. It is hard to buy that bankless is better with frustrating document management glitches.
How are SoFi Loan's ratings?
SoFi was rated highly across the board:
- Better Business Bureau (BBB): A+
- Credit karma: 4.9 out of 5 stars
- Supermoney: 4 out of 5 stars
- Best Company: 9 out of 10
- Top 10 Reviews: 9.88 out of 10
- Consumer Advocate: 9.8 out of 10 (Excellent)
- Student Loan Sherpa: 8.8 out of 10
How is SoFi's Customer Service?
SoFi has a great reputation for customer service which is available by phone seven days a week.
Is SoFi Safe and Legitimate?
Yes, SoFi:
- Has Moody's highest rating AAA
- Is the 1st student lender with an S&P AAA rating
- Provided $9.76 billion in student loans
- Is regulated by the Consumer Financial Protection Bureau
SoFi Contact Information
SoFi One Letterman Drive Building A, Suite 4700 San Francisco, CA 94129
Customer Support:(855) 456-7634 Mon-Thu 7am-12am ET Fri-Sun 7am-8pm ET Email:customerservice@sofi.com Website:www.sofi.com