Sofi Student Loan Refi Rates
The SoFi student loan refinance program is a great way to save money on your loans. It allows you to refinance your student loans at a lower interest rate and defer payments for months or years.
The process of applying for a student loan refinance is similar to the application process for other types of loans, which means that you don’t need any special qualifications or experience working with lenders. But before you submit an application, make sure that refinancing your current student loan makes sense for your situation.
How to Calculate Your Savings
Once you’ve decided to refinance, the next step is to figure out how much you can save. There are three ways to do this: by calculating your savings on interest, monthly payments, and total student loan debt.
- Calculate how much you will save on your interest rate.
- Calculate how much you will save on your monthly payments.
- Calculate how much you will save on your total student loan debt.
SoFi Refinancing Options
SoFi offers a range of student loan refinancing options for borrowers with federal and private student loans.
- The SoFi Variable Refinancing Loan allows you to refinance your loans at an interest rate that’s based on the current market conditions and your credit profile. You’re free to pay off your loan faster or slower than the standard repayment term, as long as you don’t go over the repayment cap—the maximum amount that can be paid each month—or extend beyond it (for example, by making payments while still in school). This option is ideal if you’re cash-strapped right now but plan on being more financially stable later in life; it’s also flexible enough for those seeking more traditional repayment terms, who might want more control over their monthly payments.
- The SoFi Fixed Refinancing Loan gives you a fixed rate for three years after which point your payment will adjust annually based on market conditions and inflation guidelines set forth by the Bureau of Labor Statistics (BLS). This option is ideal if you prefer predictable payments over time; however, note that this option may not save money compared to other types of loans available through SoFi depending on how long it takes for inflation adjustments to kick in (which could be many years).
To qualify for refinancing, you can’t be a SoFi member. The lender will check your credit score and income to see if you meet the requirements. To qualify, you must:
- Be a U.S. citizen or permanent resident
- Have graduated from an accredited school that is eligible for federal financial aid (if you attended college in the United States)
- Have a minimum credit score of 640
The lender reviews all applications manually, so it may take time for them to reach out with their decision on your application. If approved, they’ll send over an invitation email inviting them to join SoFi and get started applying through our online form—then follow up with any additional paperwork needed!
How to Apply for SoFi Student Loan Refinancing
- Visit the SoFi website and click “Student Loan Refinancing” at the top of the page.
- Enter your information (name, birthday, email address) into their form fields, then click “Next.”
- Select your loan type (grad school or undergraduate), enter the current balance of your student loans, and choose a loan term length between 5 and 20 years in increments of 1 year (the longer you borrow for, the lower your monthly payment will be). Be sure to review all terms before submitting an application!
- Enter in any credit card information if you have any outstanding balances on them; otherwise leave this field blank or put “none” as a response if you don’t have a credit card with SoFi already established yet! This is how they’ll determine how much money they’ll lend us based on our credit score because we’re not asking them directly for money here–they’re just lending us against what’s left over after covering whatever balance we still owe some other lender(s) who issued us these loans initially.* If no credit cards show up after entering “none” then skip ahead five steps below where it says “Review Your Application.”*If yes does show up then go back three steps above where it says…”Choose Your Loan Term.”**If yes does show up again then go back another step above where it says…
SoFi Student Loans Repayment Terms
SoFi student loans have flexible repayment options.
Here are some of the repayment options for SoFi student loans:
- 2 years fixed rate, 10 year amortization—fixed interest rate of 5.99% with a 2-year repayment term and 10-year amortization period for federal loans only
- 5 years fixed rate, 20 year amortization—5% fixed interest rate with no origination fee on both federal and private student loans; 20-year repayment terms available for all other loan types (including parent PLUS)
Compare these rates with what you’re paying on your student loans now.
If you are currently paying around 8 percent interest on your student loans, and SoFi offers a rate of 4.5 percent, then your savings over the life of the loan will be about $15,000.
If you’re looking for a way to lower your student loan payments and save money on interest, SoFi’s student loan refinancing could be the answer. Its flexible repayment terms mean you can get started on repaying your loans right away without worrying about any prepayment penalties. Plus, the company offers some of the best rates out there: an average of 0.87% APR* for variable-rate loans and 4.99% APR* for fixed-rate loans (for new borrowers).