Refinancing with Earnest
Refinancing rates from 2.49% APR. Checking your rates won’t affect your credit score.
If you’re watching the Superbowl on Sunday, you’ll likely be tuned into the Super Bowl commercials. One of the advertisers may jump out: SoFi.
SoFi’s Super Bowl commercial features “Great loans for great people.” But what does this mean exactly? And what is SoFi anyway?
If you’re curious to learn more about SoFi and how they may be able to help you, check out our SoFi FAQ below.
What is SoFi?
SoFi is a financial institution that offers a number of loans, but is considered a “nontraditional lender.” This basically means they don’t operate like a normal bank. In fact, SoFi doesn’t really believe in traditional banks as we know them.
In fact, SoFi recently launched an ad titled “This is the beginning of a bankless world,” which gives you some insight into their mission. SoFi believes that big banks are “antiquated approach to personal finance” and thus “decided there had to be a better way.”
Is SoFi a bank?
So no, SoFi is not a bank (at least, not in the traditional sense). While SoFi does now offer an investing platform, you can’t currently use SoFi like you would a normal bank. For instance, SoFi doesn’t offer bank accounts like checking and savings at this time.
SoFi does many more things differently than a bank as well.
How is SoFi different than a bank?
SoFi takes a different approach to lending than “normal” banks do.
According to a spokesperson from the company, “SoFi is a modern finance company fueling the shift to a bankless world. Banks treat people like they’re just a score or a transaction, but at SoFi you’re a member of a community with SoFi as a life-long partner who’s invested in your success.”
Essentially, SoFi takes a holistic approach to working with its members, focusing on their overall well-being rather than treating them as just a number.
“Being a SoFi member includes benefits like career support, an Entrepreneur Program and regular member events across the country. These events range from panels and industry-specific networking to happy hours, because we love to meet our members and we’ve learned they love to meet each other – we’re even starting to host singles events!”
When it comes to actual financial products, SoFi takes an innovative approach as well. One example: SoFi recently stopped using FICO scores when assessing the eligibility of borrowers. This was a pretty radical change considering all traditional lenders use FICO scores when evaluating a lending application.
SoFi loans come with some interesting features as well.
First off, they make it really easy to find out what rate you would qualify for without having to do a hard pull on your credit. It takes about two minutes and you can even get your rate from your smartphone.
Additionally, if you’ve refinanced your student loans through SoFi and then suddenly lose your job, SoFi offers unemployment protection. This allows you to temporarily pause payments while SoFi also helps you find a new job. “We’ve helped more than 165 of our members find new employment,” noted their spokesperson.
SoFi doesn’t adhere to “banker hours,” either. They offer support seven days a week.
What kinds of loans does SoFi offer?
The main types of loans that SoFi offers are: student loan refinancing, mortgages, and personal loans.
If you hadn’t guessed, we primarily work with SoFi’s student loan refinancing option here at Student Loan Hero. The reason? The potential for massive savings for student loan borrowers.
And if you saw the Super Bowl commercial, you know that SoFi is all about providing “great loans for great people.” But what does that mean, exactly?
“We’re able to provide great rates on [our] products because we work with financially responsible people,” stated their rep. “In our eyes, those who spend responsibly, have strong monthly cash flow, and a solid employment history are #SoFiGreat.”
According to SoFi, this latest marketing campaign is meant to reflect that while everyone won’t qualify for a loan, those who do have made some great decisions so far, and SoFi provides the best products and tools to match their ambitions.
Why should I refinance student loans with SoFi?
In addition to all the benefits above, there are many reasons to refinance your student loans using SoFi. Some of the top reasons include:
- Save money on interest. Borrowers who refinance student loans can often receive a lower interest rate, which usually results in savings.
- Lower monthly payments. Through a combination of lower interest rates and/or adjusting the loan term, borrowers may be able to lower their monthly payments.
- Transfer a Parent PLUS loan. SoFi allows parents to transfer Parent PLUS loans from their name to their child’s name while also refinancing and consolidating the loans in the process.
- Reduce the number of monthly bills. Many borrowers consolidate several loans when refinancing. When combining loans, borrowers have fewer total bills they need to track and pay each month.
- Remove a cosigner. Refinancing student loans can remove a cosigner in the process.
- Get a new servicer. Borrowers who are frustrated with their current loan servicers will be transferred to a new servicer when refinancing.
Am I eligible to refinance my loans with SoFi?
SoFi has some basic eligibility criteria in order to qualify for refinancing. Applicants generally must:
- Be at least 18 years old
- Live in an eligible state
- Be a U.S. citizen
- Have graduated from one of about 2,200 Title IV accredited universities
- Be employed or hold a job offer with a start date within 90 days
- Have a responsible financial history
- Have a strong monthly cash flow
While this might not provide a crystal clear picture for you, you can check eligibility, rates, and terms here on the SoFi website. This takes about two minutes and it won’t affect your credit score.
Is SoFi trustworthy?
Sure is! While you might not be familiar with SoFi, they’ve been around for five years. In that time, they’ve issued $7 billion in loans to over 110,000 members (and counting).
“We think that’s a pretty awesome track record,” said their spokesperson. “About half of our business comes from referrals, and more than 400 leading companies and organizations provide SoFi as a benefit to their employees.”
“And on a more serious note, we’re regulated by the Consumer Financial Protection Bureau and abide by all applicable laws.”
Where is SoFi located?
SoFi’s main office is located in San Francisco, California. They currently have six other offices throughout the United States.
Where can I watch the SoFi Super Bowl commercial?
Check out the “Great loans for great people” Super Bowl commercial below:
Have another question about SoFi? Ask us in the comments below.
Interested in refinancing student loans?Here are the top 6 lenders of 2019!
|Lender||Variable APR||Eligible Degrees|
|Check out the testimonials and our in-depth reviews!
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 3.50% APR (with Auto Pay) to 7.89% APR (with Auto Pay). Variable rate loan rates range from 2.49% 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 April 17, 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 04/17/2019. 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 email@example.com, or call 888-601-2801 for more information on our student 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.
All credit products are subject to credit approval.
Laurel Road began originating student loans in 2013 and has since helped thousands of professionals with undergraduate and postgraduate degrees consolidate and refinance more than $4 billion in federal and private school loans. Laurel Road also offers a suite of online graduate school loan products and personal loans that help simplify lending through customized technology and personalized service. In April 2019, Laurel Road was acquired by KeyBank, one of the nation’s largest bank-based financial services companies. Laurel Road is a brand of KeyBank National Association offering online lending products in all 50 U.S. states, Washington, D.C., and Puerto Rico. All loans are provided by KeyBank National Association, a nationally chartered bank. Member FDIC. For more information, visit www.laurelroad.com.
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 2.48% effective April 10, 2019.
6 Important Disclosures for Citizens Bank.
Citizens Bank Disclosures
|2.49% – 7.27%1||Undergrad & Graduate|
|2.49% – 6.65%3||Undergrad & Graduate|
|2.49% – 7.41%4||Undergrad & Graduate|
|2.50% – 6.65%2||Undergrad & Graduate|
|2.49% – 7.11%5||Undergrad & Graduate|
|2.98% – 9.72%6||Undergrad & Graduate|