SoFi® Student Loan Refinance Review: One of the Top Three Most Popular Lenders

What you need to know:

• SoFi® is a private lender that offers student loan refinancing, along with other loan products and investment products.
• SoFi® offers flexible terms with fixed or variable interest rates.
• If you refinance with SoFi, you may qualify for a cashback bonus depending on your loan amount. Borrowers who refinance $200,000 or more are eligible for a $1,000 bonus, while those who refinance $100,000 to $199,999 are eligible for a $500 bonus (terms apply). Note the bonus comes directly from Student Loan Planner®, and you'll need to reach out to let us know when you apply with them.

SoFi® is a private lender that has refinanced over $50 billion in student loans. Its refinanced loans are serviced by MOHELA. There are no required fees or prepayment penalty associated with SoFi® student loan refinance. SoFi® also refinances medical and dental resident loans and Parent PLUS loans.

Borrowers can use SoFi’s user-friendly website to view student loan refinancing options, as well as private student loans, personal loans, home loans and more.

SoFi® student loan refinance review

SoFi® offers both variable and fixed rate loans, along with several repayment terms to fit your needs. A 0.25% interest rate reduction discount is also available when you sign up for automatic payments. This autopay discount can help lower costs.

SoFi®

4.5 out of 5

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SoFi®: Best if you're unsure where to apply

• Positives: Competitive rates, flexible terms and view rates in just two minutes
• Allows cosigners: Yes, but no cosigner release offered
• Deferment or forbearance available: Yes, in limited situations
• Interest rates: Fixed rates 3.99 – 10.99% APR with all discounts; Variable rates 5.74 – 10.99% APR with all discounts
• Bonus: $1,000 for refinancing 200k or more, $500 for $100k to $199,999 (bonus from Student Loan Planner®, not SoFi®. Terms apply)

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Pros and cons of refinancing with SoFi®

Here’s a rundown of the pros and cons of refinancing your student loans with SoFi®:

Pros

• User-friendly website. Navigating SoFi’s website is relatively easy, so the loan application is straightforward.
• Parent PLUS loan refinancing. SoFi® allows Parent PLUS loans to be refinanced under the child’s name.
• Other services outside of refinancing. SoFi® isn’t just a refinancing lender. The company also offers a range of services and perks for SoFi® members and financial products including SoFi® Money (money management), SoFi® Invest (investments), and SoFi® Protect (insurance).
• Checking rates won’t affect your credit score. Getting a rate quote involves a soft credit check that won’t impact your credit score. When you apply for a loan through SoFi®, the company will perform a hard credit pull that could slightly lower your credit score.
• Forbearance options. If you become involved in a Military Mobilization or experience a natural disaster, SoFi® has forbearance options available. It also provides options for loan deferment for certain scenarios, such as returning to graduate school.
• Refinancing availability. SoFi® student loan refinancing is available in all 50 states and the District of Columbia.

Cons

• No cosigner release. A cosigner can only be removed if he or she passes away. You can, however, apply for a loan refinance on your own to see if you qualify without your cosigner.
• Strict eligibility rules. Along with standard eligibility rules, like credit history, minimum credit score and employment requirements, SoFi® also requires that you attended a Title IV school. However, even if you didn’t earn a degree, SoFi® may still allow you to refinance if you meet its other eligibility requirements.
• Loan servicing is outsourced. SoFi’s refinanced loans are serviced by MOHELA, which used to also service loans for the Department of Education. MOHELA had a poor reputation as a federal loan servicer, so you may experience similar issues with a SoFi® student loan refinance.

Eligibility requirements

Several factors go into qualifying for student loan refinancing through online lender SoFi®. When determining eligibility, SoFi® looks at your credit history, credit score, career experience, debt-to-income ratio and more as part of their underwriting and prequalification process. In addition to you having to meet those requirements, SoFi® also requires that you were previously enrolled or graduated from a degree-granting Title IV school.

You must also be a U.S. citizen, permanent resident, or visa holder 18 years or older.

If you don’t meet SoFi’s credit requirements, you may be eligible through the use of a cosigner. Unlike many private lenders, though, there is no cosigner release on SoFi’s refinancing loans. That's a big deal, considering your cosigner may be responsible for your loan payments if you don't do your part.

Application process

Borrowers who refinance with our link can get a SoFi® student loan refinance deal — a bonus of up to $1,000 (terms apply). SoFi's online lending platform is easy to use and allows borrowers to shop around for rates from SoFi® and other lenders quickly.

During the application process, you’ll be asked to provide basic personal information, like your name, address, birth date and citizenship status. At this time, you’ll also need to input details on your education, income and other pertinent information.

Keep in mind that this initial application process is to prequalify for refinancing and to check rates. None of your information will be shared with SoFi® until you move forward in the application process. If approved, you can review repayment plans, variable rates and fixed rates, and any minimum loan amount requirements.

Should you refinance with SoFi®?

Student Loan Planner® surveyed over 1,600 borrowers to gain better insight into SoFi® refinance reviews.

Overall, the company earned an average score for a private lender. In our survey, SoFi® student loan reviews were mostly positive, but there were a couple of notable complaints to consider:

1. The fact that the loans are actually serviced by MOHELA, not SoFi®, was a cause for concern.
2. Interest rates through SoFi® received mixed reviews. Some respondents qualified for great rates, while others thought rates were too high through SoFi®.

One respondent said:

“I really do not like that Sofi's refinanced loans are serviced by another vendor (MOHELA). It's annoying to have to log in to a separate system in order to manage my loans, and it wasn't clear in the application process that another vendor was involved.”

Another survey respondent felt that advertised rates were deceiving, while another person felt the lower rates were reserved for specific service areas.

Several respondents were pleased with the process of refinancing loans through SoFi®. One respondent found SoFi's application process the easiest to use, compared to LendKey, Citizens and a few other lenders.

Where does SoFi® rank compared to other lenders?

Student Loan Planner® borrower surveys have consistently found that SoFi is a popular refinancing option, especially among borrowers with six-figure student loan debt. It's also frequently chosen by physicians, physical therapists, veterinarians and other high-income professionals.

Even so, SoFi isn't necessarily the best choice for every borrower. Comparing offers from multiple lenders can help you find the lowest interest rate and loan terms for your situation.

Final thoughts

SoFi® earns a 4.5 out of 5 rating from Student Loan Planner®. Although SoFi® remains one of the most well-known refinancing lenders, increased competition means many borrowers now find comparable or better offers elsewhere.

Although SoFi® student loan refinance could offer you a lower interest rate, especially if you’re in certain career fields, you might have better luck with another lender. It’s important to shop around to find the best rates and terms for you. When refinancing, look at your new loan terms, monthly payments, repayment options, and the lowest rates.