SoFi Student Loan Refinancing: A Comprehensive Review

SoFi student loan refinancing may present a viable option for health professionals and borrowers who possess excellent credit seeking debt relief and competitive low rates. Checking your rate with SoFi won't affect your credit score.

Key Features and Benefits

Competitive Rates and Potential Savings

SoFi offers the potential to significantly reduce your APR. One customer reported slashing their APR by almost 40% by switching to SoFi, projecting savings of at least $70,000 in interest payments and accelerating their payoff by at least 5 years. This highlights the potential for substantial financial benefits through refinancing. SoFi also offers a 0.25% interest rate reduction when you enroll in automatic payments.

Flexible Loan Terms and Amounts

SoFi provides a range of repayment terms, including 5, 7, 10, 15, and 20-year options. The minimum loan amount is $5,000, and you can refinance up to your full loan balance.

User-Friendly Online Experience

SoFi's online platform allows you to get your interest rate in just 2 minutes.

Important Considerations

Loss of Federal Loan Benefits

Refinancing federal student loans with SoFi means foregoing several federal protections. These include income-driven repayment options, federal forgiveness programs, and generous deferment options. Borrowers need to weigh the potential benefits of a lower interest rate against the loss of these safety nets.

Customer Service and Bonus Issues

Some customers have reported issues with receiving promised bonuses. One customer detailed a situation where a promised refinancing incentive and signing bonus were not honored due to a requirement to sign up for a SoFi "money" account, a term not disclosed in the final agreement. This experience underscores the importance of carefully reviewing all terms and conditions and documenting communications with SoFi representatives.

Complaints and Legal Issues

Consumers filed 2,854 complaints about SoFi. The allegations made in these complaints are unverified, are not necessarily representative of all consumers’ experiences with SoFi, and may contain outdated information (about rates, bonus offers, etc.).

Examples of Complaints:

Overpayments: One customer reported that an error in applying for refinance loans with SoFi led to nearly $72,000 in overpayments.
Denial of Relief: Another customer who refinanced federal student loans tied to an institution with "strong indicia of misconduct" alleged that SoFi did not provide any review or relief despite the Department of Education's determination.
Handling of Death: A customer reported that SoFi charged off a loan after being informed of the borrower's father's death, despite consistent payments and the borrower's intention to continue paying the loan.

Legal Actions:

SoFi paid a $1.1 million fine for a "vulnerable" and "largely automated process" that enabled consumer identification fraud and theft using SoFi Money’s brokerage service.
Juarez v. Social Finance alleges lending discrimination against recipients of Deferred Action for Childhood Arrivals (DACA).
SoFi settled a suit with the FTC early in 2019, which alleged false statements about loan refinancing savings in advertisements since April 2016.

No Co-signer Release

SoFi does not offer co-signer release on loans disbursed after May 1, 2019. Refinance borrowers must instead reapply for refinancing.

Loan Servicing and Financial Hardship Options

Lenders vary greatly on the benefits and options provided to borrowers during the loan servicing period. Additionally, benefits may only be available on a case-by-case basis. If unexpected financial hardships make it difficult or impossible to continue making timely payments in full, borrowers may be able to postpone payments for a limited period. SoFi’s postponement options include deferment and forbearance. Deferments is preferable because interest does not continue to accrue for the length of the deferment. Loans in forbearance always continue to accrue interest.

Fees

Beyond interest rates, there are a number of fees a refinance lender may charge up-front or during the loan servicing period. Late payment fee - fee for making a late payment.

Read also: SoFi Program Details

SoFi and Federal Student Loans

SoFi loans are not federal.

Refinancing a SoFi Loan

You can refinance a SoFi student loan or a student loan from another private lender. SoFi advertises that there is no limit to the number of times a borrower may refinance.

Credit Score Impact

During their prequalification process of checking rates for student loans, SoFi will perform a soft credit check, which will not hurt your credit score.

SoFi Partnerships

SoFi partners with Credible as part of its multilender marketplace.

How to Apply

If you fall into one of these categories, contact Customer Support (available five days a week) to receive application documents.

Customer Reviews and Ratings

TrustPilot.com: 4.2 out of 5
ConsumerAffairs.com: 1.4 out of 5

These ratings offer a mixed view of customer experiences with SoFi.

Consumer Financial Protection Bureau (CFPB)

As consumer finance companies, student loan refinancing lenders fall under the jurisdiction of the Consumer Financial Protection Bureau (CFPB), a federal agency. As part of their mission, the CFPB allows consumers to log official complaints.

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