Refinancing with Earnest
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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 2018!
|Lender||Rates (APR)||Eligible Degrees|
|Get real rates from up to 4 Lenders at once
Check out the testimonials and our in-depth reviews!
|2.57% – 6.32%||Undergrad & Graduate||Visit Earnest|
|2.80% – 7.02%||Undergrad & Graduate||Visit Laurel Road|
|2.36% – 7.73%||Undergrad & Graduate||Visit SoFi|
|2.68% – 8.79%||Undergrad & Graduate||Visit Lendkey|
|2.57% – 6.65%||Undergrad & Graduate||Visit CommonBond|
|2.75% – 8.69%||Undergrad & Graduate||Visit Citizens|