SoFi® was the first company to offer student loan refinancing for both federal and private loans, launching this service in 2012. Since then, it has become a top choice for borrowers looking to lower their interest rates or adjust their repayment terms. With over $41 billion in refinanced student loans and nearly half a million customers, SoFi remains a leader in student loan refinancing. In this review, we'll break down SoFi's refinancing options and how they could benefit you.
SoFi student loan refinancing review
Best for: Member rewards
What sets SoFi apart from other student loan refinancing lenders is its wide range of member perks. When you refinance with SoFi, you become part of a community that offers more than just financial products. Here are some key benefits SoFi members can access:
- Access to financial planners: SoFi offers free one-on-one sessions with qualified financial planners. Whether you need help creating a budget, saving for the future, or developing an investment strategy, they can help guide you. You can schedule meetings with them or reach out anytime for ongoing support.
- Member events: SoFi hosts social events like dinners, happy hours, and educational workshops across the country, giving members a chance to connect and learn.
- Online community: Members can join a private Facebook group to access resources, participate in giveaways, and engage with other SoFi borrowers.
- Travel discounts: SoFi members can find deals on flights, hotels, rental cars, and more through their travel partners.
- Referral bonuses: You can earn as much as $1,000 for referring friends to SoFi's products.
Other notable perks include priority entry at SoFi Stadium in Los Angeles and a 20% discount on estate planning services through SoFi's partnership with Trust & Will.
Eligibility criteria
To qualify for SoFi student loan refinancing, you'll need to meet certain eligibility requirements. Here's what SoFi looks for:
- Age: You must be the age of majority in your state of residence.
- State of residence: SoFi offers student loan refinancing in all 50 states and the District of Columbia.
- Citizenship: Applicants must be U.S. citizens, permanent residents, or nonpermanent resident aliens.
- Income and employment: While SoFi requires you to have enough income to repay the loan, they don't specify a minimum income amount. If you're currently between jobs, you can still qualify as long as you have an offer of employment that begins within 90 days.
- Education: You must have graduated from or be enrolled in a Title IV accredited school and hold at least an associate degree.
- Credit score: While SoFi doesn't disclose a specific minimum credit score, your credit will be reviewed as part of the application process.
Important:
If you’re applying with a cosigner, they must meet the same citizenship and financial requirements. However, SoFi does not offer cosigner release, meaning your cosigner will remain responsible for the loan until it’s fully repaid.
How much can I refinance?
With SoFi, you can refinance as little as $5,000 in student loans. There's no cap on the maximum amount — you can refinance your entire outstanding balance on eligible student loans.
Repayment terms
SoFi offers flexible repayment options, with terms ranging from 5 to 20 years — giving you more choices than many other student loan refinancing lenders. You can choose from the following repayment terms:
- 5 years
- 7 years
- 10 years
- 15 years
- 20 years
SoFi also provides deferment and forbearance options if you face financial challenges, enroll in graduate school, enter a disability rehabilitation program, or serve in the military.
Pros and cons of refinancing with SoFi
Pros
- No fees: SoFi doesn't charge any fees for student loan refinancing. That means no application fees, origination fees, or prepayment penalties. You also won't face late payment fees or insufficient funds fees.
- Unique member benefits: Refinancing with SoFi gives you access to valuable member perks, including financial planning services, discounts, event invitations, and referral bonuses. You can even receive personalized financial advice from a qualified adviser at no extra cost.
- Flexible repayment terms: SoFi offers a range of repayment options, with terms of 5, 7, 10, 15, and 20 years. This flexibility gives you more choices compared with many other lenders.
Cons
- No cosigner release: While SoFi allows cosigners, they don't offer a cosigner release option. Your cosigner will remain responsible for the loan until it's fully paid off.
- Minimum loan amount of $5,000: SoFi's refinancing option is only available for loans of $5,000 or more, so if you have a smaller balance, you won't qualify.
What to consider before refinancing with SoFi
Refinancing with SoFi can be a smart move if you meet its education, income, and credit requirements. But before you move forward, here are a few important things to keep in mind:
- You won't be able to release a cosigner from your loan: If you refinance with a cosigner, they'll remain responsible for the loan until it's fully repaid, as SoFi doesn't offer a cosigner release option.
- You'll lose access to federal benefits if you refinance federal loans: Refinancing federal student loans with SoFi means giving up benefits like loan forgiveness programs and income-driven repayment plans, which are only available through federal loans.
Even if you qualify for SoFi, it's a good idea to shop around and compare rates from multiple lenders. Each lender has its own way of evaluating borrowers, so checking several options can help you secure the best interest rate and loan terms.
Compare student loan refinance rates
How to refinance with SoFi
Refinancing your student loans with SoFi is a straightforward process. Here's how it works:
- Get prequalified: Start by visiting the SoFi website to get prequalified. This allows you to check your potential rates without affecting your credit score, as it only involves a soft credit inquiry.
- Choose your terms: Once prequalified, you can select the repayment term that fits your needs. Your term choice will determine your interest rate and monthly payment.
- Submit your application: After choosing your terms, complete the application by providing any additional required information. At this stage, SoFi will perform a hard credit inquiry, which may temporarily lower your credit score by a few points.
Why you can trust our Credible experts
The Credible editorial team is independent and unbiased. Partners do not influence our editorial content. To help you find the best student loan for your situation, we conduct thorough research and analyze thousands of lender data points. Using data-driven methodologies, we score criteria that are important to you. This allows us to objectively rank student loan lenders and products. To learn more, read our methodology.
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