If you’re considering getting a student loan, but don’t want to go through a traditional bank or the US government, your research may have led you to SoFi. This fintech company, which also functions as a lending app, has been providing student loans since 2011 and has lent money to thousands of Americans.
This article explains everything you must know about getting a SoFi student loan, including eligibility requirements, available loan types, and interest rates.
Key Takeaways
- SoFi offers student loans for undergraduates, graduates, parents, healthcare professionals, MBA students, and law students.
- To qualify, you or your cosigner must be a US citizen, permanent resident, or non-permanent resident alien.
- SoFi lets you choose between fixed and variable interest rates and five, seven, 10, 15, or 20-year repayment terms.
- The least you can borrow in student loans is $1,000.
- SLP clients receive a special .25% interest rate discount for autopay.
About SoFi
SoFi Technologies Inc., is a financial technology company. Established in 2011 by Stanford students, it started as a platform that aimed to provide a cheaper alternative to student loans. It currently has 10 million members and has funded over $73 billion in loans since its inception. The name ‘SoFi’ stands for social finance.
How SoFi Student Loans Work
Applying for a student loan online is straightforward. SoFi claims the process takes just a few minutes. In that time, you can quickly learn whether you prequalify for a loan and get your rate.
If you qualify, you can pick your loan term, choose a comfortable repayment option, and sign your agreement. Once you receive your school’s approval, you’re all set.
SoFi student loans don’t have any hidden charges, nor do you pay an origination fee. The company offers various discounts and rewards, each with specific conditions.
SoFi Student Loan Features
Here’s what you can expect from SoFi private student loans:
Services and Loan Types
SoFi offers the following loans:
- Undergraduate Loans
- Graduate Loans
- Parent Loans
- MBA Loans
- Law School Loans
- Health Professions Loans
The company can also refinance student loans, provided the applicant is no longer enrolled in school. You can refinance federal student loans, private student loans from other private lenders, SoFi loans (if you borrowed from the company previously), or a mixture of them all.
Refinancing your federal student loan will result in the loss of any associated benefits. Unlike federal loans, private ones aren’t eligible for loan forgiveness or income-driven repayment programs. If you’d like to learn more about how refinancing helps to reduce your monthly payment, consult one of our experts.
Eligibility/Application Requirements
SoFi’s eligibility criteria for its private student loans and student loan refinancing offerings are as follows:
- The borrower must be a US citizen, permanent resident, or non-permanent resident alien.
- Borrowers must attain the age of majority in their state or apply with a cosigner who meets that criteria.
- Applicants of SoFi’s private student loans must be employed, have sufficient income, or apply with a cosigner who meets either criteria.
- Borrowers must use the loan for educational purposes, covering “Qualified Higher Education Expenses” at an eligible institution. (SoFi student loans aimed at undergraduates aren’t available for associate degree-seeking students)
- Half-time enrollment at a degree-granting institution is mandatory unless you are in your final semester of an undergraduate program.
- “International borrowers must have a Social Security Number (SSN) or International Tax Identification Number (ITIN) as well as a physical U.S. address.” (Graduate loans)
- The amount sought must meet SoFi’s minimum loan amount for the loan type.
In addition to the above requirements, SoFi expects applicants to meet its underwriting criteria. The company also uses the applicant or their cosigner’s “financial history, credit score, and monthly income vs. expenses” when making borrowing decisions.
Meanwhile, medical loan applicants must also “have graduated with an MD, DO, DMD, or DDS from a selection of Title IV accredited university or graduate programs in the U.S.”
Please note that SoFi will need to check your credit history during the application process, specifically when you’re checking your rate. This process involves a soft credit check, which does not negatively affect your credit score.
Proving Eligibility
Applicants and their cosigners must provide photographic evidence of the following documents when applying for private student loans or student loan refinancing through SoFi:
| US Citizens (one of the following) | Permanent Residents | Non-Permanent Resident Aliens | International Borrowers |
| Driver’s license (with photo)Certified birth certificatePassportPermanent resident card, Government issued ID card, Global entry cardReport of birth abroad form Certificate of citizenshipCertificate of US Naturalization | Permanent residency card (Green Card) with no expiration datePermanent residency card (Green Card) ‘with an expiration date more than 2 years past the “Resident Since” date’ and “accompanied by a copy of an I-751 receipt notice (I-751 NOA) or I-829 receipt issued within the last 12 months.” | “Valid E-2, E-3, H-1B, J-1, L-1, or O-1 Visa or a Form I-797A or I-797B. These documents must be accompanied by an approved Green Card application documented with an I-140 approval notice (Immigrant Petition for Alien Worker), or receipt or approval of an I-485 (Application to Register Permanent Residence).” | “Social Security Number (SSN) or International Tax Identification Number (ITIN) as well as a physical U.S. address.” |
Ensure all documents are valid at the time of application.
Please see SoFi’s eligibility criteria page for the full list of documents and requirements relevant to your loan type.
Discounts and Rewards
SoFi gives borrowers a 0.25% interest rate discount when they sign up for automated payments from their checking or savings account. It also has a Continuing Scholar Discount that removes 0.25% off subsequent fixed or variable rate loans taken by previous SoFi student loan borrowers.
Student Loan Professor has also secured proprietary rate discounts for our clients. These discounts are only available if you connect with us before applying with SoFi. Alternatively, we can provide our SoFi link, but an advisor is needed to explain which discounts may or may not apply.
Loan Repayment Options
SoFi gives you four options for repaying your loan balance (i.e., principal and interest payments). They are:
- Immediate Repayment: The borrower makes principal and interest payments while attending school and after graduation.
- Partial Repayment: This repayment plan involves paying $25 monthly while in school and paying the full amount after graduation, dropping below half-time, or leaving school.
- Interest-Only Repayment: You make interest-only payments while in school and make the full payment six months after graduating, dropping below half-time, or dropping out.
- Deferred Repayment: You completely defer the monthly payment amount until after the six-month grace period elapses following graduation.
Borrowers who experience difficulty repaying their loans can apply for a “hardship forbearance due to involuntary unemployment.” While student loan forbearance can provide temporary relief for up to three years, interest will continue to accrue on the principal loan amount.
Borrowing Amounts
SoFi has a minimum amount you can borrow when applying for one of its student loans. The minimum amount is $1,000. In contrast, you must apply to refinance a minimum of $5,000.
Regarding the maximum amount you can borrow, SoFi complies with US legislation related to annual student loan caps. In the company’s words, “SoFi Private Student Loans can cover up to 100% of the school-certified cost of attendance, which typically includes things like tuition and food, books and supplies, room and board, transportation and personal expenses.”
Get Expert Advice on the Best Private Student Loan Lenders
SoFi’s quick and convenient application process, flexible loan terms, and diverse repayment options make it an excellent private student loan provider. As an SLP client, you are also eligible for a special .25% interest rate discount for autopay.
Still, if you’re looking for alternatives, getting expert advice could help you make a sound choice. Schedule a consultation today to explore private lending options and secure your financial future.
Brandon Barfield is the President and Co-Founder of Student Loan Professor, and is nationally known as student loan expert for graduate health professions. Since 2011, Brandon has given hundreds of loan repayment presentations for schools, hospitals, and medical conferences across the country. With his diverse background in financial aid, financial planning and student loan advisory, Brandon has a broad understanding of the intricacies surrounding student loans, loan repayment strategies, and how they should be considered when graduates make other financial decisions.
