The cost of college education is soaring and many students and families are turning to student loans to pay for it. Student loans are an essential tool for many students, but they can also be complicated and overwhelming. One option for student loans is SoFi, a company that offers a range of student loan products. In this article, we will review SoFi student loans, their features, and what makes them stand out from other lenders.
What is SoFi?
SoFi (short for Social Finance) is a financial technology company founded in 2011. The company offers a range of financial products and services, including personal loans, mortgages and student loans. SoFi is unique in that it is a member-driven platform that offers members access to a wide range of financial products and services, as well as a community of like-minded individuals.
Features of SoFi Student Loans
SoFi offers a range of student loan products, including undergraduate loans, graduate loans, MBA loans, law school loans and medical school loans. Here are some of the features of SoFi student loans:
- Competitive Interest Rates: SoFi offers competitive interest rates on its student loans. Rates start as low as 1.99% APR (with autopay) for variable rate loans and 2.98% APR (with autopay) for fixed-rate loans. These rates are lower than the average rates offered by other lenders.
- Flexible Repayment Options: SoFi offers flexible repayment options, including deferred, interest-only, and immediate repayment. Deferred repayment allows borrowers to postpone payments until after graduation. Interest-only repayment allows borrowers to make payments on the interest only while they are in school, while immediate repayment requires borrowers to start making full payments while in school.
- Career Support: SoFi offers career support to its borrowers, including access to career coaches, job search assistance and networking events. This is an excellent feature for borrowers who are looking for help finding a job after graduation.
- No Fees: SoFi does not charge any origination fees, application fees or prepayment penalties.
- Loan Limits: SoFi offers undergraduate loans of up to $100,000 and graduate loans of up to $500,000. This is a higher loan limit than many other lenders offer.
- Co-signer Release: SoFi offers co-signer release after 24 on-time payments. This is an excellent feature for borrowers who want to remove their co-signer from their loan.
What Makes SoFi Student Loans Stand Out?
SoFi student loans stand out from other lenders in several ways:
- Community: SoFi is a member-driven platform that offers borrowers access to a community of like-minded individuals. This community can be helpful for borrowers who are looking for advice, support and networking opportunities.
- Career Support: SoFi offers career support to its borrowers, including access to career coaches, job search assistance, and networking events. This is an excellent feature for borrowers who are looking for help finding a job after graduation.
- No Fees: SoFi does not charge any origination fees, application fees, or prepayment penalties. This is a significant benefit for borrowers who want to save money on their loans.
- Competitive Interest Rates: SoFi offers competitive interest rates on its student loans. Rates start as low as 1.99% APR (with autopay) for variable rate loans and 2.98% APR (with autopay) for fixed-rate loans. These rates are lower than the average rates offered by other lenders.
- Flexible Repayment Options: SoFi offers flexible repayment options, including deferred, interest-only and immediate repayment. Deferred repayment allows borrowers to postpone payments until after graduation. Interest-only repayment allows borrowers to make payments on the interest only while they are in school, while immediate repayment requires borrowers to start making full payments while in school.
- Co-signer Release: SoFiOne of the standout features of SoFi student loans is the option for co-signer release. Many borrowers need a co-signer to qualify for a loan, particularly if they have limited credit history or income. However, having a co-signer can be a burden, as they are also responsible for repaying the loan if the borrower cannot.
With SoFi student loans, borrowers can apply for co-signer release after 24 on-time payments. This means that if a borrower makes all of their payments on time for two years, they can request that their co-signer be released from the loan. This can be a significant benefit for both the borrower and the co-signer, as it releases the co-signer from the financial responsibility of the loan and allows the borrower to take full ownership of their debt.
Here is a table that outlines SoFi’s current interest rates for student loans based on the loan type and repayment term:
*It’s important to note that these interest rates are current and are subject to change. Additionally, the rates listed are based on the borrower having excellent credit and making automatic payments from a bank account. Borrowers with less-than-perfect credit or who do not opt for automatic payments may have higher interest rates.
Overall, SoFi offers competitive interest rates for student loans, particularly for borrowers with excellent credit. Additionally, the option for variable interest rates can be beneficial for those who are confident in their ability to pay off their loan quickly and want to take advantage of potentially lower rates.
To apply for co-signer release, borrowers will need to meet certain eligibility requirements. These requirements vary depending on the type of loan, but generally include:
- Making 24 consecutive on-time payments
- Being a US citizen or permanent resident
- Meeting credit and income requirements
- Providing proof of graduation or completion of the program
- Submitting an application and supporting documentation
Once a borrower applies for co-signer release, SoFi will review their application and make a decision within a few weeks. If the application is approved, the co-signer will be released from the loan, and the borrower will be solely responsible for repaying the debt.
Co-signer release is not offered by all student loan lenders, so it is a significant benefit of choosing SoFi. It allows borrowers to take control of their finances and their credit history, while also providing relief to their co-signer. However, it is important to remember that borrowers should only apply for co-signer release if they are confident in their ability to repay the loan on their own. If they are unsure or struggling to make payments, they may need to keep their co-signer on the loan to ensure that they do not default.
