Refinancing with Earnest
Refinancing rates from 2.54% APR. Checking your rates won’t affect your credit score.
SoFi is one of the largest student loan refinancing companies in the industry. With about $18 billion in refinanced student loans for more than 250,000 members, they specialize in helping young professionals manage their finances.
This SoFi student loan refinancing review will help you understand the pros and cons of the company so you can decide if it’s right for you.
SoFi student loan refinancing review: The basics
SoFi’s approach to refinancing student loans is different than that of many other lenders. Along with competitive repayment terms, the company also offers career support and wealth management services to its members. With these perks, SoFi offers you the opportunity for more than just repaying your student loans.
Here are some of the features of a SoFi refinancing loan:
- APR starting at 2.54% for variable rates and 3.90% for fixed
- Rate quotes without affecting your credit
- 0.25% interest rate discount if you enroll in AutoPay
- Repayment terms between five and 20 years
- Deferment option for those who go back to school, experience disability or serve in the military
- Forbearance option for those who lose their jobs
- No origination fees or prepayment penalties
- Minimum loan amount of $5,000, with no maximum borrowing amount
SoFi also offers an additional benefit for medical and dental school residents: affordable $100 monthly payments for up to four years.
To refinance using SoFi loans, you must be at least 18 years old (or your respective state’s age of majority) and a United States citizen or permanent resident. Your debt must be from a Title IV accredited college or university, and you must have completed your associate’s degree or higher.
You must be employed or show proof that your employment will start in the next 90 days, and you’ll need a minimum credit score of 650 to qualify.
What we like about SoFi student loan refinancing
As you can see from this post and other SoFi reviews, the lender is one of the leading student loan refinancers in the country — and it’s not hard to see why. Here are some of the advantages you may find at SoFi:
Not all refinancing lenders allow you to temporarily pause your payments through student loan deferment. However, SoFi reviews your situation generously, allowing you, for example, to defer your loans while in graduate school, as long as you’re enrolled at least half time. Similarly, you can defer your loans for active military service or if you are on disability rehabilitation.
Interest will still accrue during deferment, however, and your loan will be reamortized to adjust for this.
When you refinance with SoFi loans, you get access to free career coaching. You can schedule one-on-one sessions with career coaches and get help setting career goals, learn about personal branding and even receive tips for creating or improving your resume.
This career strategy also comes into play as part of the lender’s Unemployment Protection program. If you lose your job and enter your loans into forbearance, you’ll be required to use the career strategy services offered by SoFi. The company is invested in getting you back on your feet so you can comfortably manage your student loan debt.
Wealth management services
Not only can you get help with your career, but SoFi also offers its members access to wealth planning services. Through a combination of digital and person-to-person advising, you can set money goals and get help achieving those goals.
SoFi helps you manage your student loans and build wealth through tools like diversification, portfolio selection and automatic rebalancing of your investments.
Parent PLUS and private parent loan refinancing
If you’re a parent who took out Parent PLUS loans or private loans to pay for your child’s education, SoFi has solutions for you, too. They offer comprehensive refinancing services for parent loans, helping you manage the debt you took on to help your children.
What to keep in mind when considering SoFi loans
Even though SoFi is a respected lender, there are some potential disadvantages, depending on your financial situation. Here’s what you should know:
Minimum credit score
To qualify to refinance with SoFi, you’ll need to have a minimum credit score of 650. While SoFi reviews other criteria, including your financial history and your career experience, you won’t qualify to refinance student loans if you have a low credit score.
If you’ve had credit problems in the past, you can increase your chances of approval by adding a cosigner to your SoFi loan. A qualified cosigner can improve your chances of becoming eligible — and help you get a better interest rate. However, it can also add a week or two to the student loan refinancing process.
No cosigner release
If you do use a cosigner on your application, know that SoFi doesn’t allow you to remove them from your loan later, as some other lenders do. Your cosigner has to pass away, or you have to refinance a second time to remove them from the account.
You must have a degree
What if you attended school, but didn’t complete your degree? Unfortunately, SoFi student loan refinancing won’t be an option for you.
Unless you have at least an associate’s degree, you won’t qualify for refinancing with this lender.
Refinancing federal student loans
While refinancing could offer you a lower interest rate, note that you will lose certain borrower protections if you refinance federal student loans. Because the federal government doesn’t currently offer refinancing, any refinancing — including through SoFi — will turn your federal loans into private loans.
As a result, you won’t qualify for income-driven repayment plans or federal student loan forgiveness programs after you refinance with SoFi. If you’re trying to get forgiveness or worried that you might need an income-based repayment plan, it may not make sense to refinance your student loans.
Is SoFi refinancing right for you?
To sum up, SoFi might be a good choice if you…
- … can show consistent monthly income and comfortably afford the payments.
- … have a credit score of at least 650.
- … don’t plan to use income-driven repayment or federal student loan forgiveness on your federal loans.
- … have higher interest rates on your current student loans than what SoFi offers.
- … want access to program perks like career coaching and wealth management.
As you can see from our SoFi refinance review, these loans come with many perks and advantages that student loan borrowers can benefit from.
But before you decide to refinance student loans with SoFi, compare your other refinancing options. Carefully considering your circumstances and your financial needs as you decide about student loan refinancing can potentially save you a good deal of money in the long run.
Student Loan Hero has independently collected the above information related to SoFi refinancing loans, which is current as of Jan. 27, 2019, unless otherwise noted. SoFi has neither provided nor reviewed the information shared in this article.
Interested in refinancing student loans?Here are the top 6 lenders of 2019!
|Lender||Variable APR||Eligible Degrees|
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1 Important Disclosures for SoFi.
2 Important Disclosures for Earnest.
To qualify, you must be a U.S. citizen or possess a 10-year (non-conditional) Permanent Resident Card, reside in a state Earnest lends in, and satisfy our minimum eligibility criteria. You may find more information on loan eligibility here: https://www.earnest.com/eligibility. Not all applicants will be approved for a loan, and not all applicants will qualify for the lowest rate. Approval and interest rate depend on the review of a complete application.
Earnest fixed rate loan rates range from 3.89% APR (with Auto Pay) to 7.89% APR (with Auto Pay). Variable rate loan rates range from 2.54% APR (with Auto Pay) to 7.27% APR (with Auto Pay). For variable rate loans, although the interest rate will vary after you are approved, the interest rate will never exceed 8.95% for loan terms 10 years or less. For loan terms of 10 years to 15 years, the interest rate will never exceed 9.95%. For loan terms over 15 years, the interest rate will never exceed 11.95% (the maximum rates for these loans). Earnest variable interest rate loans are based on a publicly available index, the one month London Interbank Offered Rate (LIBOR). Your rate will be calculated each month by adding a margin between 1.82% and 5.50% to the one month LIBOR. The rate will not increase more than once per month. Earnest rate ranges are current as of March 18, 2019, and are subject to change based on market conditions and borrower eligibility.
Auto Pay discount: If you make monthly principal and interest payments by an automatic, monthly deduction from a savings or checking account, your rate will be reduced by one quarter of one percent (0.25%) for so long as you continue to make automatic, electronic monthly payments. This benefit is suspended during periods of deferment and forbearance.
The information provided on this page is updated as of 0318/2019. Earnest reserves the right to change, pause, or terminate product offerings at any time without notice. Earnest loans are originated by Earnest Operations LLC. California Finance Lender License 6054788. NMLS # 1204917. Earnest Operations LLC is located at 302 2nd Street, Suite 401N, San Francisco, CA 94107. Terms and Conditions apply. Visit https://www.earnest.com/terms-of-service, email us at firstname.lastname@example.org, or call 888-601-2801 for more information on ourstudent loan refinance product.
© 2018 Earnest LLC. All rights reserved. Earnest LLC and its subsidiaries, including Earnest Operations LLC, are not sponsored by or agencies of the United States of America.
3 Important Disclosures for Laurel Road.
Laurel Road Disclosures
However, if the borrower chooses to make monthly payments automatically by electronic funds transfer (EFT) from a bank account, the fixed rate will decrease by 0.25%, and will increase back up to the regular fixed interest rate described in the preceding paragraph if the borrower stops making (or we stop accepting) monthly payments automatically by EFT from the designated borrower’s bank account.
However, if the borrower chooses to make monthly payments automatically by electronic funds transfer (EFT) from a bank account, the variable rate will decrease by 0.25%, and will increase back up to the regular variable interest rate described in the preceding paragraph if the borrower stops making (or we stop accepting) monthly payments automatically by EFT from the designated borrower’s bank account.
4 Important Disclosures for LendKey.
Refinancing via LendKey.com is only available for applicants with qualified private education loans from an eligible institution. Loans that were used for exam preparation classes, including, but not limited to, loans for LSAT, MCAT, GMAT, and GRE preparation, are not eligible for refinancing with a lender via LendKey.com. If you currently have any of these exam preparation loans, you should not include them in an application to refinance your student loans on this website. Applicants must be either U.S. citizens or Permanent Residents in an eligible state to qualify for a loan. Certain membership requirements (including the opening of a share account and any applicable association fees in connection with membership) may apply in the event that an applicant wishes to accept a loan offer from a credit union lender. Lenders participating on LendKey.com reserve the right to modify or discontinue the products, terms, and benefits offered on this website at any time without notice. LendKey Technologies, Inc. is not affiliated with, nor does it endorse, any educational institution.
5 Important Disclosures for CommonBond.
Offered terms are subject to change. Loans are offered by CommonBond Lending, LLC (NMLS # 1175900). If you are approved for a loan, the interest rate offered will depend on your credit profile, your application, the loan term selected and will be within the ranges of rates shown.
All Annual Percentage Rates (APRs) displayed assume borrowers enroll in auto pay and account for the 0.25% reduction in interest rate. All variable rates are based on a 1-month LIBOR assumption of 2.5% effective February 10, 2019.
6 Important Disclosures for Citizens Bank.
Citizens Bank Disclosures
|2.54% – 7.12%3||Undergrad & Graduate|
|2.54% – 7.27%1||Undergrad & Graduate|
|2.67% – 8.96%4||Undergrad & Graduate|
|3.23% – 6.65%2||Undergrad & Graduate|
|2.69% – 7.43%5||Undergrad & Graduate|
|2.98% – 9.72%6||Undergrad & Graduate|