SoFi Student Loan Review
Social Finance, Inc. (SoFi), which started in 2011, was the first company to offer federal and private student loan refinancing. It currently offers various student loan products, including undergraduate, graduate, law, MBA and parent student loans, in all states.
SoFi offers several student loan options that can cover up to the total cost of your higher education. MoneyGeek created this SoFi student loan review to break down loan terms, offers and requirements to help you decide whether a SoFi student loan is the best option for you.
At a Glance: SoFi Student Loans
- 3.22%–11.16%Fixed APR Range
- 1.10%–11.68%Variable APR Range
- $5,000 minimum, no maximumLoan Amounts
- Deferment until six months after graduationGrace Period
on SoFi Website
MoneyGeek Breakdown: SoFi Student Loan Details and Requirements
Undergraduate, Graduate, Law, MBA, Parent and Refinancing
$5,000 minimum, no maximum
5, 7, 10 and 15 years
SoFi Student Loan Application Requirements
Must be the age of majority in the state of residence (otherwise, an age of majority co-signer is required)
Must be a U.S. citizen, permanent resident or visa holder
Non-permanent residents or DACA recipients will need a creditworthy co-signer who is a U.S. citizen or permanent resident
Borrower or co-signer must have sufficient income or be employed (proof of income may be necessary for some)
Must use loan for qualified education expenses at an eligible school or institution
Must be enrolled at least half-time
Social Security number
Student’s school information (including estimated date of graduation and academic term)
Is SoFi Right for You?
The best student loan may vary per person. Check the terms, rates, fees and offers of other lenders and compare them with SoFi to find the right lender for you.
Type of Student SoFi Is Perfect For
When choosing a student loan, you have to make sure that it caters to your needs. Weigh your options carefully and determine which lender has the best offer.
SoFi student loans are a great option for individuals looking for a way to finance the total cost of an undergraduate, graduate, law or MBA education. Parents or sponsors who need help financing their student’s education may also apply.
Additionally, you can opt to defer your payments until six months after your graduation. Individuals looking for a way to refinance their student loans may also find SoFi a good option.
Who Should Not Choose SoFi
MoneyGeek’s SoFi student loan review shows that the release of funds may take four to six weeks. Depending on the school, the timeline may be shorter or even longer. If you need funds immediately, SoFi may not be right for you.
SoFi only offers four loan terms (five, seven, 10 or 15 years). If you are looking for a longer term, you’ll have to find another lender.
Additionally, SoFi has a minimum loan amount of $5,000. If you need a smaller amount, this will not be the right lender for your needs.
How to Apply for a SoFi Student Loan
Getting a student loan requires you to complete an application process. MoneyGeek breaks down the steps you have to take to apply for a SoFi student loan.
Check if you qualify for SoFi’s Fast Track Application. The lender offers this service to borrowers who have borrowed from SoFi or cosigned for a SoFi borrower in the past. If you are eligible for the Fast Track Application, the company will pre-fill most of your application using information from your previous SoFi application.
Fill Out Application Form
If you are not qualified for the Fast Track Application, proceed with filling out the application form. Prepare the following:
- Social Security number
- School information (estimated graduation date and academic term)
- Loan amount
- Financial aid you expect to receive
- Proof of income (for some)
- Government-issued ID (for some)
Wait for Approval
After submitting a completed application form, you will be subject to approval. According to the lender, most borrowers get a decision in three minutes.
Review Loan Agreement
If your application is approved, SoFi will send you a loan agreement. Review the document. Make sure you check all details and understand the terms and conditions of the loan.
Sign Loan Agreement
If all details of the loan agreement are clear to you and you think that the SoFi student loan is the best option for you, sign the loan agreement. You can electronically sign the documents.
Once SoFi receives your signed loan agreement, it will send your application information to your school to get a certification. Your school will then verify your academic progress, enrollment status and financial aid package. The processing time depends on your school.
Receive or Direct Funds
The borrower’s school will send a certification back to SoFi. Then, the lender will schedule when to send the funds to the school. Your school will determine the timeline.
How you make payments depends on the repayment option you choose. Generally, SoFi offers four options. The availability of each repayment option depends on the type of student loan.
- Deferred: Pay principal and interest six months after graduation
- Interest-only: Start paying interest while in school and make full payments after graduation
- Partial: Pay $25 every month while in school and make full payments after graduation
- Immediate: Start paying the principal amount and interest right away
What to Do if You Are Rejected by SoFi
In some cases, SoFi denies student loan applications. If that happens, your first step is to figure out why you were denied a loan. There are various possible reasons, including low credit scores, not enough income and not enough credit history. It is best to find this information out before you apply for another loan. Then, ask the lender if there is a possible way to modify your application so that it becomes acceptable to them.
You can also talk to your school’s financial aid advisors or office for additional information and resources. It would also help to research other options that may be available to you. Compare different lenders and loan offers to find one suitable for your needs.
If you think a SoFi student loan is the best option for you, but you do not qualify, consider getting an eligible co-signer. Clarify the specific qualification requirements for a co-signer with SoFi.
Frequently Asked Questions About Student Loans
MoneyGeek created this SoFi student loan review to help determine whether a SoFi student loan is the right option for you. To further help you make a well-informed decision, MoneyGeek answers some of the most commonly asked questions about SoFi student loans.
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