SoFi Student Loans Review: Low-Rate, No-Fee Private Loans

Choosing a private student loan company can be tricky, and it’s important to make the right decision. The difference between a great lender and a bad one can result in paying tens of thousands of dollars (or more!) in additional interest.

If you already have student loans, refinancing them can save you a ton in interest and help you pay off your debt sooner. However, it’s crucial to pick the right refinancing provider. 

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Overview of SoFi Student Loans

There are SoFi student loans for both undergraduate and graduate students, including loans for law school, medical school, and MBA programs. 

They also provide loans for parents of college students, including undergraduate and graduate students.

Types of SoFi Student Loans

SoFi offers several different kinds of student loans with different rules and requirements.

There are four different repayment plans available:

• Deferred: Start paying principal and interest six months after leaving school.
• Interest-only: Pay only interest while you’re in school, which reduces your overall cost.
• Partial: Make a $25 fixed monthly payment while you’re in school.
• Immediate: Start paying the principal and interest right away — this works out to the lowest overall cost.

Undergraduate student loans

You don’t have to be a full-time student to qualify for SoFi loans, but you must be enrolled on at least a part-time basis. 

The maximum loan amount is 100% of the cost of attendance. 

Plus, if you use a co-signer, you can be eligible for co-signer release after 24 months of on-time payments (or 12 months for residents of Colorado, Connecticut, and Maine).

Graduate student loans

Graduate degrees are available for students getting an advanced degree. You don't necessarily have to get a graduate degree to qualify for one of these — even students in graduate certification programs are eligible.

You can borrow up to the certified cost of attendance (minus any financial aid you receive from the school). The minimum amount to borrow is $1,000.

Special student loans

SoFi offers graduate loans for law school, MBA, and professional health degrees. 

Parents and sponsors are also eligible to take out loans for a student.

SoFi Student Loan Refinancing

SoFi began as a student loan refinancing company before it started originating private student loans. The interest rates for SoFi student loan refinancing are often lower than federal student loan rates.  

SoFi offers both fixed-rate and variable-rate loans. The exact rate you receive depends on your credit score, income, if you have a co-signer, loan amount, and other factors. 

There are also special reduced rates for some borrowers, such as doctors and dentists with at least $150,000 in student loan debt.

But if you have federal student loans, be cautious about refinancing, as these loans offer special protections, like income-based repayment and loan forgiveness. Refinancing federal loans into private loans will mean you lose those benefits. 

What We Like About SoFi Student Loans

We love that SoFi student loans offer low interest rates and have a no-fee policy (including no late fees).  

Plus, they offer benefits that are usually limited to federal student loans. For example, they have deferment and forbearance options for struggling borrowers. 

They also have special career coaching programs if you lose your job.

What We Don’t Like About SoFi Student Loans

There’s not much to dislike about SoFi’s student loans or their student loan refinancing program. They provide low interest rates and a slew of unique benefits, and have a stellar rep for customer service. 

One notable exception is that SoFi sued the Department of Education to reinstate student loan payments after the government paused payments during the Covid-19 pandemic. While they eventually dropped the lawsuit, it still left many borrowers with a sour taste. 

Who Should Use SoFi Student Loans?

If you’re considering SoFi student loans, make sure you have maxed out all other types of financial aid, especially grants, scholarships, and federal student loans. All of these have more borrower protections and benefits. 

If you have already looked into every other alternative, then SoFi loans may be a good choice.

If you have a high credit score or have a co-signer with a high credit score, you may even receive an interest rate that is better than what you might get with a federal student loan.

Who Should Not Use SoFi Student Loans? 

SoFi student loans are best for students who have either maxed out their federal student loans or who are not eligible for them. 

Because SoFi loans have fewer loan forgiveness and repayment programs than federal loans, they should be used as a last resort. 

If you already have a relatively low interest rate with another private lender or federal student loan, then switching to SoFi may also not make sense.

Alternatives to SoFi 

Not sure if you want to take out a loan or refinance with SoFi? Here are some solid alternatives:

Credible

Earnest

One of Earnest’s main benefits is its nine-month grace period, which is three months longer than what SoFi and federal student loans provide.

College Ave

FAQs

Is SoFi legit for student loans?

SoFi was one of the first private student loan companies to come on the market, especially for student loan refinancing. They’re a major brand that also offer banking, insurance, mortgages, and investing services.

What is the loan limit for a SoFi student loan?

The minimum amount for a SoFi loan is $1,000, and there is no exact maximum limit. 

If you want to refinance your loans, the minimum loan amount is $5,000. There is no specific maximum amount for student loan refinancing. 

These limits are fairly similar to what other lenders offer.  

Are SoFi student loans eligible for forgiveness?

Private student loans are not eligible for federal loan forgiveness programs. However, some loan repayment programs do accept private student loans. These are usually specific to your career. 

If you plan to work in public service, then it's best to take out federal loans instead of private loans from lenders like SoFi. 

The Bottom Line

SoFi student loans have competitive interest rates and the company has a stellar reputation. However, any private loan company will still pale in comparison to federal student loans. 

Always max out federal loans before relying on companies like SoFi. And if you already have student loans, be careful about refinancing that will convert federal loans into private loans.

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