When this site first reviewed SoFi back in 2014, readers wanted to know if SoFi was legitimate and how the student loan refinance process worked.
Over the years, refinancing has become far more common, and SoFi has grown into one of the biggest names in student loans and finance in general.
Despite all of these changes, the fundamental questions remain. Is SoFi student loan refinancing a good deal? What should consumers expect?
Meet SoFi in [year]
SoFi first started as a student loan refinance company, but they have significantly expanded.
SoFi now offers mortgages, personal loans, and investing services. The days of SoFi being the plucky underdog are over.
For borrowers focused on getting a lower rate on their student loans, this evolution has some advantages.
For SoFi to grow, they had to evolve from a lender that focused only on high earners to a lender willing to accept a wide range of borrowers. The good news for borrowers is that many of the perks that SoFi used to target the doctors and lawyers of the world still remain.
SoFi approved many borrowers with less than perfect credit in an attempt to expand. We have also seen borrowers with excellent credit shop around to compare rates and find that SoFi was the best option. As a result of SoFi’s ability to offer the best rate for a variety of borrowers, SoFi checks in at #3 in our student loan refinance lender rankings.
SoFi Refinance Rates and Options
SoFi offers a wide range of student loan refinancing options. As of [month], [year], the following rates and terms are available:
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The lowest listed rate includes a .25% autopay discount. All rates listed as an APR. See full SoFi disclosure for full details.
Borrowers can refinance federal student loans, private student loans, and Parent PLUS loans. SoFi, like most legit lenders, does not charge any application fee, origination fee, or prepayment penalties.
Looking at all of the SoFi possible rates and options, borrowers should be careful to tweak loan repayment lengths to find the sweet spot between getting the lowest rate and getting the best monthly payment.
For example, one strange aspect of the current SoFi options is the close rates offered for longer-length loans. The rate on a 10-year loan may be only a fraction of a percent less than the rate on a 15 or 20-year loan. Opting for a longer loan can result in an interest rate that is only slightly higher. The longer loan advantage is more flexibility.
Note: having a 20-year loan does not mean that a borrower must take 20 years to pay it off. Opting for the longer duration loan gives the borrower the flexibility of low minimum payments. Additionally, the loan can still be paid off aggressively by making extra or larger payments.
The SoFi Advantages
SoFi offers competitive interest rates and flexible repayment terms. However, the advantages associated with SoFi go beyond the numbers.
To handle a large volume of applications and borrowers, SoFi has a streamlined system. The application process and loan funding is fast and simple.
SoFi also runs its customer support out of a California call center. Having the customer support team here in the United States doesn’t necessarily guarantee better service. Still, we do like to see them spending the extra money to make sure customers get the best treatment possible.
Borrower Beware – The Danger of Refinancing Federal Student Loans
If you have the credit score and income to qualify for SoFi, it is a great option. However, there is one warning that all borrowers need to consider carefully…
SoFi, like most other refinance lenders, is willing to consolidate federal loans with private loans. Though combining federal loans with private loans is a mistake for some, in other instances it is a good idea. The classic example would be high-income earners with strong job security.
The important thing for borrowers to realize is that the repayment plans and forgiveness programs of federal loans are eliminated upon private loan consolidation. Because there is no way to undo a consolidation or refinance, it is critical to make a smart decision when weighing the federal perks vs. the lower interest rate on the private market.
Outside of the traditional concerns that go with student loan refinancing, we see no additional concerns associated with SoFi.
How does SoFi work?
First, borrowers specify the loans that they want refinanced. SoFi creates a new loan and uses the funds from that loan to pays off the old loan. The borrower then pays off their debt to SoFi according to the terms of the new loan.
Borrowers typically refinance to achieve one of two goals:
- Lower Payments – Selecting a longer loan or getting a lower interest rate means a smaller monthly bill.
- Reducing Interest – Some borrowers select a short loan with an ultra-low interest rate. Going this route eliminates the loans as quickly as possible and minimizes total spending.
SoFi’s seems to have a goal of becoming the finance company for millennials. This is evidenced by their aggressive expansion into areas like banking and life insurance.
Helping people pay off their student loans seems to be SoFi’s way of securing long-term customers who continue the business relationship in more profitable areas such as wealth management.
From a student loan borrower perspective, this is probably a slight advantage because it means SoFi has an incentive to keep customers happy even after they have refinanced their loans. These long-term goals would also explain why SoFi can keep its rates lower than most of the other lenders in the marketplace.
SoFi Refinance Reviews from Actual Customers
When this article was originally published, we could only base our opinion on the black and white terms of the SoFi loans. Since that time, dozens of customers and would-be customers have taken the time to leave their thoughts in the comment section.
What we have learned is that SoFi customer satisfaction seems to revolve around whether or not the application was approved. Because of the originally tough underwriting criteria, many people have stopped by to share their disappointment with their denial. As one user summed it up, “people with high FICOs and high incomes sail right through while people with more moderate FICOs and incomes don’t seem to have the same experience.”
SoFi Complaints and Reviews from the BBB, Reddit, and Others
Most of the SoFi reviews from other experts have reached similar conclusions.
The Better Business Bureau gave SoFi an A+ rating, but there were numerous user complaints about SoFi. Some of the complaints dealt with SoFi’s mortgage and personal finance loans. The customer rating was 1.59/5 from a total of 311 reviews.
Reddit users generally have positive things to say about SoFi. However, when doing head-to-head rate checks with other lenders, SoFi at times did not offer the best interest rates.
The Consumer Financial Protection Bureau complaint database has about 50 complaints related to SoFi student loans. The issues were varied in the complaints. In terms of the volume of borrower issues, SoFi is comparable to other lenders, perhaps a bit better than average.
In short, the SoFi reviews are mixed, which is to be expected with any financial company.
SoFi Compared to Other Lenders
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Should I apply for a SoFi loan?
SoFi is an excellent option for student loan refinancing, but SoFi is far from the only option.
Borrowers looking for the best deal would be wise to check their rate with SoFi. However, checking rates with other lenders is also essential as many companies advertise rates as low or lower than SoFi. Each lender uses different underwriting criteria. Thus, it is impossible to say which of the top student loan refinance companies will actually offer the best rate.
I have only federal loans at 6.5 %….is it wise to consolidate with Sofi?
This question will really depend upon your finances. Private consolidation of federal loans is something that should only be done if you are absolutely positive it is the right move and you understand the consequences. Read more here: https://staging-studentloansherpa.kinsta.cloud/golden-rule-student-loan-consolidation/
Basically you are weighing the advantage of lower interest against the loss of the many great programs that only apply to federal loans. If you can save a bundle with Sofi and you are certain you won’t be taking advantage of any of the federal repayment plans or forgiveness programs it might be for the best. Otherwise, your best bet is probably to stick with federal loans.
Screw these guys. I have an 803 credit score and have made over $100k the past 3 years. They declined me for “insufficient income” in relation to the amount of my monthly repayment which would be around $560/mo. I guess you need to be a billionaire to deal with these bozos. Their underwriting policy is the most ridiculous thing I have ever seen.
What about refinancing federal graduate loans with a private company like SoFi? The interest rates on federal are insane! Yes, I know that you lose protections, but we hope to pay off our loans in less than 10 years, and the chances of us needing the federal protection is very slim.
I Just attempted to refi a 24,000 loan got denied. with a 722 credit score and 60,000 a year income I am 39 and been paing my Salliemae since 2011 even before it came due. They recommeded I get a co-signer HAHAHA. Nope I am an adult thank you
ME TOO!!! Refinancing a quarter of my loans (the portion with high interest) with a similar credit score and income as you Mark and they recommended a co-signer LOL. They said my debt to income ratio was too high, even though my payment would have been lower than I am paying now (every month on time)! Glad I am not the only one, I was really upset and thought I would never be able to refinance.
Same here!!! I just attempted to refinance $38K and got denied! I have the same credit score and make $72,500. I’ve never missed a loan payment and have been repaying my student loans for years. Not impressed with SoFi, especially when it states it is ‘ideal for those with good credit and are established.’
Same here…I’ve been paying my student loans for 8 years with not 1 missed payment and more than enough income to support the payments I’m currently making..why wouldn’t it support a lower payment with a lower interest rate?!? Not impressed SoFi.
same here..my wife was rejected and is in tears. she has 50k student loan, never missed a payment, great credit, and I’m an attorney. make 60k. they said income insufficient. wow. their payment would have been 200 less, and only 400 a month. I thought about cosigning, but glad I read this because I guess i must be a millionaire to help her!!
Hi Mike, I know everyones tax situation is different, however if you went with a SoFI loan would you still be able to claim the interest on your taxes like you can with federal student loan
Great question Nick. Let me first say that the student loan tax interest deduction applies to federal AND private loans. SoFi loans do qualify for the student loan interest deduction, but like you said, it depends upon your individual situation.
According to SoFi, “SoFi loans are considered student loans for federal and state tax consideration. Note that you may or may not be eligible for interest deduction depending on your individual tax situation. You should consult your tax advisor for more information.”
Hey Mike, I have over $68,000 in Federal Student Loans at 4.125%. I am currently paying $300.00 a month and the principal keeps growing. I can’t afford to pay any more than that so I’ll probably pay this until I die. Will my family be held responsible for this loan at that time?
if you make 120 payments without being late or missing one, you can have your federal student loans forgiven under Obama’s forgiveness act.
is this true? I’ve never heard this before,,,,thats awesome if its true
BUT, you will receive a 1099 so the forgiven balance will be imputed to you as income, for which you will have to pay the income tax on it. If you have a massive balance, that could present an issue, because now you have an IRS debt/problem instead of a student loan debt/problem.
I actually took out a life insurance policy to cover my loans. I’m 25, in good health.. and took out a 25 year term policy that covers more than enough for my loans (150K policy, I owe about 80K). I actually only pay like $200 a year for this.. Maybe you should look into that if you’re worried?
No one has to pay your loans when you die. So this is a waste of money on your part.
Your kids or spouse do.. look it up. especially if its a federal loan.
Brandon is correct.
Depends on the loan and whether you are or were married when you take it out. Read your loan terms carefully! (I am an attorney).
hi michael, thanks for the article on sofi and your website in general. my school is not on the list of schools serviced by sofi. do you know of any similar programs like sofi that has more schools or no limitations on what schools you attended? thanks.
Hey Mike. SoFi is a fairly unique company in the way that they conduct business, however, this site has reviewed a couple other student loan consolidation companies that may be able to help you out. Check out our reviews here: https://staging-studentloansherpa.kinsta.cloud/category/student-loan-consolidation-reviews/
Sofi refused to consolidate my student loans. They claimed it was my credit score (which happened to be 810). I believe it was because I am disabled because everything was going just fine until I gave my income as being from both social security as well as a private disability provider. I make the same amount that I did while I was working full time, and they certainly don’t have any trouble sending out all sorts of marketing material to my house. They are a waste of time if you are concerned about discrimination. I went to credible and got a better loan right away.
My son attempted to refinance his student loans with me as a co-signer. In a nutshell we were denied because the idiots at SoFi didn’t understand how to read the financial reports from my businesses. They ask for all the right reports but can’t comprehend what they are looking at. I told my son to move on and deal with a real company that has a clue! SoFi was unimpressive in all ways….don’t waste your time!
What they don’t tell you is that the average income of someone who qualifies for SoFi’s refinancing is $130,000. So yeah. Don’t bother unless you are already loaded.
My credit score is 755 and make 47k per year trying to refinance $34k in student debt. Pre-approved, submitted the application, read and signed the loan agreement, was told it would be funded in 4 days, then suddenly was denied due to insufficient income and asked for a consigner. Pathetically unethical. Don’t waste your time.
SoFi was so easy it made me scared that I missed something. Expressed interest in a personal loan at 9pm of each evening. So for responded the next day. I did all my paperwork on their mobile website and within 36 hours of my initial query I had the money in my account.
Good, like I said, scarey good.
PS I make 85,000 per year over 800 credit score and borrowed 20,000 over 5 years.
I initially received misleading customer service, but re-applied with a new application and all went smooth. Happy so far, just be sure to keep good notes of your communications if anything is out of the ordinary.
Going to give SoFi 5 stars. Excellent company from my experience with them. Tried consolidating with DRB starting December 4, 2015. I have solid income and excellent credit. After 6+ weeks of runaround from DRB that my loan was “with underwriting” (my mortgage didn’t take THAT long) I gave it a shot with SoFi. I applied on a Monday evening, by Tuesday morning at 10AM I was approved and signed all my paperwork through DocuSign. Now a mere 10 days later, all my loans have been paid off with my original lenders. Can’t recommend SoFi enough.
Wondering if its worth my time. Have $20k in loans at 4.865%. Current min monthly payment is $120 but usually I pay around $200-$500. Gross is now $195k/year – just doubled thanks to a new job. Credit score 805. Wanted to pay off my Mohela loan in two years and was hoping this would get me there faster . Right now about $70/month going to interest on Mohela and this annoys me.
Depends on the loan and whether you are or were married when you take it out. Read your loan terms carefully! (I am an attorney).
I just completed the process on my private student loans. I’m saving a few percentage points and I got a lower monthly payment. Their process was rigorous, but they looked more closely at the numbers than other lenders. For example, I had tried to get a Wells Fargo loan, and my amount of federal debt was prohibitive. However, Sofi took in documentation that I’m on an IBR with 10 year loan forgiveness. I think they take a better-rounded look at everything.
Great Refi – Saves Me $$$!
I was initially hesitant to refi my student loans with SOFI given some of the bad reviews I saw at the time, but I took a chance and am very glad I did. I did my refi in May 2015 and the process was seamless. I had 6+ seperate loans ranging from 2.5% to 7% and I was able to refinance them all together for a 1.9% rate and much lower term with a slightly lower monthly payment. The process was easy – uploaded my docs online and the loan funded and my lenders were paid off quickly. The servicing has been great and its much nicer to have one loan and see the balance go down faster due to the lower rate and shorter term. To give some perspective I had over $100k in student loans between undergrad and grad school. I’ve paid them down to $50k and now with the refi I can finish them off much sooner. Its a great feeling.
I will not hesitate to consider SOFI for future loans. I know everyone’s situation is different, but SOFI was great for me. I also got a $100 bonus and welcome gift (Diptique candle) when my loan completed. I have also been invited to local events hosted by Sofi and attended a very posh, open bar free happy hour they hosted at a hot spot in my area. All the SOFI people I met there were very nice as well.
avoid this business. they blatantly false advertise. they sent me an unsolicited mailer offering a loan. I was prequalified according to their mailer and was again prequalified after submitting my initial information. after the company obtained my initial information they then asked for an excessive amount of additional information including a copy of my passport, 2 years of tax returns and a utility bill only to turn me down for the loan they contacted me about and said I was prequalified for. additionally, they took way too long to confirm or deny the app and the rate they offered wasn’t even close to the rate quoted on the mailer they sent me. I would not recommend this company to anyone.
My experience with sofi is similar to many ppl here. Terrible, unreasonable and waste of my time. Let’s me tell you… Sofi seems very unorganized and their underwriting policy is ridiculous! Don’t bother with sofi and don’t let them mess up your credit score for nothing (they did hard pull on credit check)!
My story:
Filled out my application and upload all paperwork online on day 1. Live chat with a sofi rep who told me, my application could get reviewed within 4 business days if I called and talked to a rep. So I did. I then waited waited and waited. No single word from sofi at all after 2 whole weeks. I called, that rep told me one of the paystubs I uploaded was Outdated, they would need me to upload/ email a more recent one. I thought to myself, of course it now outdated … Coz the application review took way longer than expected and promised. Anyways, I immediately uploaded and emailed my paystub to that particular rep (as he offered on phone, so he could forward it to someone to review my case as soon as they got my paystub).
I was stupid to trust sofi the second time! Guess what? No word from sofi again, a week after I updated my paystub. If they hadn’t done credit check on me, I would have withdrawn my application at that time coz sofi seems very very unprofessional. Anyways, I called again. I asked why still no word ?!
That rep dared to tell me ……
Rep: “oh, it looked like we need your most recent paystub.”
Me: “what?! Again?! I just uploaded and emailed xxx my paystub last week. Did you not see it on my profile?”
Rep: “hm… if that is case, let me look into it…pls hold”
(5 min later)
Rep: “we did receive your paystubs last week. Somehow, it just didn’t reach to the underwriter. I will forward it now.”
Me: “well. When I talked to xxx last week. He said he would make sure someone looked at it right away, so my application didn’t get delayed any longer. How did it still get overlooked? On the day I applied, I got promised review within 4 business days!”
Rep: “I apologize. I will forward it to our underwriter now. You should hear from us in a week.”
One week later, I received an email from sofi, denied my application for insufficient income.
They promised 4 business day review. It turned out to be a month process! If I didn’t call them, they probably wouldn’t bother to call me, not even a courtesy call.
I made $150k a year. Full time employment since grad 3 years ago. Always paid my student loan on time, even often made extra payment. Credit score is 775. No mortgage. My student loan balance was $96k at that time.
Sofi, seriously?!
That’s how they operate, they actually review all details about you before they approve your loan. I have had 3 loans with them in the past and each one of them took at least a week before they approved it.
– They do not operate like most financial institutions.
Facts:
– Number of pple in your income bracket of $60K with SoFi loans are 32%
– Average SoFi income is $110k which is about 42% of their loans
– 50.1 % of SoFi members own a home
– 39.4 % Rent
-10.6% live with Parents
– 77% have a fixed rate loans on Mortgages
Otherwise, their rates are great. personal loans are at 5.19%, Student Loans start at 2.815% include those with parents and medical students.
– They now offer Wealth Management accounts and they give you $100 for just opening the account.
Don’t Expect to Get Their Lowest Advertised Rate!!!
Pro: Quick and easy application process with readily-available customer support to assist.
Con: They aren’t (in my experience) the most competitive! Keep shopping!
I completed the application process for a student-loan refinance with both SoFi and a competitor, Darian Rowayton Bank. I’m so glad that I applied with multiple lenders! DRB offered 3.5% for a 5-year term refinance (their lowest advertised rate). SoFi offered 4.74% for the same loan (even though they also advertise 3.5%). I decided to try requesting SoFi to match the competitor’s rate because SoFi had a NCAA sweepstakes that I wanted to enter. So I made the request on Mar 12. It took until Mar 26 and multiple back-and-forth emails before SoFi finally gave me their “best offer” which was 4.625%. No Thanks! I find it hard to believe there are many more qualified borrowers than myself and so I would guess that you probably won’t get whatever rate they are advertising either.
There aren’t many lenders to shop from but google “best banks to refinance student loans” to see a few alternatives to SoFi.
I was denied for a $12,000 loan! I make $65,000 and have a 750 credit score. Stay away from this place! What a waste of time, and hard credit hit.
Same here. I make a good income employed for 8 years full time, my credit score is 793 and they still denied me for a $13k refinance! I went with Laurel Road, they approved me right away and I got a $400 referral bonus I split with my sister 🙂
Great article. Glad I read the comments. This company did a target direct mailing campaign to members of the American Academy of Physician Assistants. I received a letter from SoFi, which states SoFi medical customers save x amount of money and if I refinance now I’ll get $500 from them. Looks good at first glance. This whole process has made me look into my loans (which I only seem to be chipping away at), but I have all federal loans, so the interest rate is not bad at 4.125%. Instead of refinancing, I chucked a little more cash towards my monthly payment and will continue to do so. Great Lakes (my loan servicer) doesn’t seem to offer any easily identified way to pay off the loans faster, so I will do it manually as I draw down other debt.
Makes me not too happy that my national association sold the member mailing list to a company that hasn’t been fully vetted. I reviewed some other websites with similar complaints about SoFi.
Thanks for everyone’s comments. I’m steering clear of this company.
I applied a few weeks ago and was just notified that I was approved, but I am very reluctant to accept because of how horribly this company seems to operate. I had to call multiple times before I spoke to someone, then the information I received was inaccurate. The numbers (interest rate I was offered and maximum lifetime amount I would pay) both went up from what I was given initially (after the credit pull) and today when the offer was made. Additionally, I applied for a fixed loan, it says fixed, but the interest rate listed is variable with the high end being higher than what I am currently paying. I recommend using caution when dealing with this company.
SOFI only refinances if the person refinancing graduated from a college on their approved (limited) list of colleges.
i.e. If you have a parent plus loan for your child, and (even though they graduated from) you didn’t graduate from one of their ‘approved colleges (or graduated from a foreign college), you cannot get refinanced !!
I had a very similar experience to Rex below. They claim on the site that they only perform a soft pull of your credit and that it won’t affect your score. Well my credit monitoring was pinged and it turns out they performed a hard pull of my credit and it will be affected. Blatant false advertising, and a downright lie. I am also in the process of trying to purchase property in a very competitive market and certainly did not need this sort of aggravation. Given that others have experienced this problem I’m sure it’s making the rounds.
Just got off the phone with these guys… they refused to give you a quote over the phone and forced you into applying online. I had my credit pulled 3 weeks ago and had all my scores (all three over 750) and they still refused to assist me over phone. I started the application online and when I saw the offered products, it really wasn’t that impressive. So, I decided to withdraw my application. Before applying online, I called to ensure that their credit pull was a soft pull (I am in the process of purchasing a house) – they confirmed it “was” over the phone. I had to call back (twice) to request an application withdrawal, and this time I was told that the credit check was a hard pull. It even indicates that the credit check is a soft pull on their site (and I hope that truly is the case) .. anyhow, frustrating customer service. Below is their response regarding the credit check:
I confirmed that you did consent to a hard credit pull when
submitting your application. We begin with a soft credit pull to
determine the product, and finish that step with a hard credit pull to
ensure the product matches your credit portfolio.
Thank you for your recent interest in refinancing your education loans with SoFi.
This email will confirm your recent request to withdraw your application for a SoFi Refinance loan.
Thank you again for your interest in SoFi. If you have any questions
or concerns or would like to resume your application, please don’t
hesitate to call us at 855.456.7634 or email us at CustomerService@sofi.com.
I don’t recall ever consenting to a hard pull. Maybe I did not read the entire thing…but be aware and good luck for those of you who chose to go SoFi.
I applied for a refi through SoFi and they declined my application based solely on my credit score, which isn’t too abysmal at 680. Seems like they’re pretty picky.
Cory… I am really sorry you had such a horrible experience. I had exactly the opposite. The entire process took approximately two weeks! I have approximately 44k in student loans from two lenders and I checked their websites and viola! $0.00 balance! I am going to preach the word of Sofi.com to all of my friends….as they have a $100 referral bonus!
if it makes you feel any better I have loans exceeding 200K at interest rates varying from 6 to 8.25%. I think after death you don’t have to pay, but if you are bankrupt you will still be liable for student loan debt. best of luck to you.