Thinking About a SoFi Loan? Here’s What You Need to Know

sofi loans

SoFi is one of the most innovative lenders out there today, giving people a non-traditional mode of borrowing money or refinancing existing debt. This self-described modern finance company is one of the key players in an industry that’s seeing more peer-influenced lenders take precedence over the conventional method of borrowing from a bank.

We’ve previously sung the praises of SoFi loans when it comes to refinancing student loans. You might be happy to find out that the company also offers a host of other loan types, so if you’re in the market for a personal loan, a mortgage, or simply a new way to manage and grow your wealth, consider SoFi as an option by checking out our breakdown of its services below.

Some background on SoFi loans

SoFi is short for Social Finance, and like its name suggests, the online loan company garners the crowdfunding-influenced approach that’s become popular in today’s social media age. Started five years ago by a cluster of Stanford business graduate students, SoFi touts its “radical approach” to an increasingly bankless world.

SoFi is not a bank and doesn’t evaluate potential borrowers with the same criteria. For example, SoFi will look at a person’s overall financial well-being. Borrowers are evaluated by criteria like income versus expenses, education level, and career experience (instead of their three-digit FICO score) to determine their creditworthiness.

For the early stage professional, this can be a big financial advantage if you’ve got low or zero credit and you need a manageable student loan regimen as you climb the professional ladder.

SoFi also takes its non-banking approach to a friendly, accessible level by hosting several community events (such as happy hours) for its members, and offering career counseling services. To date, SoFi has funded $8 billion in loans for more than 125,000 members.

A SoFi loans review

SoFi specializes in student loan refinancing, mortgage lending, personal loans, and parent loans, among some other options. Read on for a full SoFi loans review of their available services.

Refinancing with SoFi student loans

Naturally, the borrower who is seeking SoFi loans to refinance their student debt will want better terms, conditions, and repayment options than their current arrangement. SoFi offers two primary options:

  • A variable rate option with APRs ranging from 2.75% to 6.84% APR
  • A fixed rate option with a 3.25% to 7.24% APR

Both federal and private student loans are available for refinancing through SoFi. According to the company, members have saved more than $18,000 on average on their student loan payments by making the switch, which also includes complementary unemployment protection, halting payments in the event of a temporary job loss.

Get approved to refinance with SoFi student loans, and you’ll also have access to career support, with interview coaching, resume review, and negotiating tactics at your disposal.

SoFi mortgage loans

SoFi uses its own underwriting approach (at the pre-approval stage) that hopes to give members a better deal on a home loan than they might find through other lenders, with down payments received from 10 to 50%, even on jumbo loans up to $3 million.

Other benefits of a SoFi mortgage include additional financing with flexible debt-to-income limits, so your payments stay proportionate to your pay; a quick pre-qualification process that eliminates the waiting period; no fees, across the board; and an interest-only loan requiring homeowners to only pay interest for the first decade of a 40-year adjustable-rate loan.

Like its student loan offers, SoFi also carries a mortgage refinance option for members looking to switch to another lender with better, more amenable terms.

SoFi personal loans

The jury’s still out on if you should use a personal loan to pay off your student loan debt.

While SoFi would recommend that you simply use its student loan refinancing option, it does offer a personal loan line primarily for members trapped in credit card debt, or for those looking to make a major purchase without risking their credit or cash supply.

Trading in double-digit penalty interest from your credit card provider to a minimal APR just below 6% is SoFi’s starting offer here, with a fixed rate on personal loans ranging from $5,000 all the way up to $100,000.

Similar to student loan refinancing, SoFi personal loans provide a similar payment pause option if you’ve lost your job. It’s a convenience backed by a 24/7 customer service support line.

SoFi parent loans

Parents looking to save up for their child’s college education can supplement their 529 plans and other investments with one of SoFi’s parent loans. This higher-ed-focused loan is meant to finance partial tuition costs, with lower interest rates than that of a student loan.

SoFi’s parent loans begin with 4.25% fixed rates and 2.89% variable rates, with no origination fees and attractive terms and rates.

SoFi MBA loans

Student loan debt from one’s undergrad years may deter borrowers from pursuing a graduate degree. SoFi’s MBA loan is meant to make that pursuit easier with low rates to make that business degree a possibility now, not after you’ve paid off your original student loans.

Rates start at 6.5% fixed or 4.82% variable. The MBA loan also comes with an individual or cosigner option, as well as full deferment or interest-only repayment if you’re still in school. No origination fees or pre-payment penalties exist.

In all, we’re impressed not just with SoFi’s emphasis on lending options, but also it’s more holistic, casual approach to the process that other competing online lenders can’t beat.

There’s no intimidation factor like you might have walking into a bank looking for a loan, no hard credit checks to ding your score, and a respect for members that extends to examining your entire financial life, instead of just one facet of your creditworthiness.

To learn more about SoFi loans, visit SoFi.com.

Interested in refinancing student loans?

Here are the top 6 lenders of 2018!
LenderRates (APR)Eligible Degrees 
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2.75% - 7.24%Undergrad
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2.99% - 6.99%Undergrad
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