SoFi Student Loans – Flexibility, Autopay Discounts and a 6-Month Grace Period
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Fast Facts
Low Rates:
Competitive interest rates.
Flexible Terms:
Variety of repayment options.
No Fees:
No origination or late fees.
Refinancing Options:
Available for existing loans.
Career Support:
Provides career coaching services.
Co-Signer Release:
Option to release co-signers.
Paying for college isn’t easy. And if you’re like most students, you’ll need to take out student loans to pay for your higher education. If you’ve already exhausted the funds from federal student loans, you might consider applying for a private student loan from SoFi.
SoFi is an online lender that offers a suite of financial products such as mortgage loans, personal loans, credit cards, and student loan refinances. It also offers private student loans designed for various students, whether you’re an undergraduate pursuing a bachelor’s degree, a graduate student seeking an advanced degree, or a student enrolled in law, business, or medical school.
Is a SoFi private student loan right for you? It could be if you’re interested in flexible repayment plans and a lender that charges no fees to originate your loan. Our SoFi student loan review gets into the details.
Jump To
What is a SoFi student loan?
There are two main types of student loans: federal student loans and private student loans.
The U.S. Department of Education gives out federal loans. They are considered the best type of student loan because they usually come with lower interest rates and better repayment terms. If you are struggling financially after graduation, you might qualify for a payment deferral or partial loan forgiveness of your outstanding federal student loan.
The problem? Federal student loans come with strict borrowing limits. If you are a dependent student pursuing an undergraduate degree, you can only borrow a maximum of $31,000 in federal student loans. If you are an independent student, you can borrow a maximum of $57,500. For graduate or professional students, you can borrow a total of $138,500.
Many students need to borrow more than that. These students often turn to private student loans, such as those issued by SoFi. With a SoFi private student loan, you can borrow up to 100% of the cost of attendance at a university, college, or trade school. This includes tuition, but you can also use a SoFi loan to pay for living expenses, books, and food.
In addition to undergraduate and graduate student loans, SoFi offers MBA loans, law school loans, health professional loans, and parent loans that parents can take out to help cover the costs of their children's college education.
SoFi offers a few perks that set it apart from other student loan lenders. You’ll receive an autopay discount on your loan’s interest rate if you sign up for automatic payments. This rate discount will lower your student loan interest rate by 0.25%. You’ll also receive a six-month grace period after you graduate. This means you won’t have to repay your student loan six months after you graduate.
SoFi says that borrowers can apply for a private student loan online and that SoFi will typically approve or deny loan applications in three minutes or less. You must meet certain eligibility requirements to qualify for a SoFi private student loan. For instance, you’ll need to apply for a student loan of at least $1,000. SoFi says undergraduate students applying for a student loan without a cosigner typically need a minimum credit score of 670. This is why many students, especially undergrads, apply for a SoFi student loan with a cosigner. That cosigner, usually a family member such as a parent, typically has a higher credit score, which makes it easier to qualify for a SoFi private student loan.
The higher your credit score or your cosigner's credit score, the lower your interest rate will be. A lower interest rate also means a lower monthly payment. It pays to find a cosigner with the highest possible credit score.
Your loan amount and term will also determine how much you pay each month. The longer your loan’s term, the less you’ll pay monthly. However, with a shorter-term loan, you will pay less in interest over time, making this the least expensive way to borrow education dollars.
5.24% - 12.42% VARIABLE rate APRs 4.17% - 16.69% FIXED rate APRs
- Easy online application!
- No origination fees, late fees, and no insufficient fund fees
- Flexible repayment options to help you find the right loan for you
- Student loans for college, graduate, law, MBA, Health Professionals, and Parent loans
- Students are 5x more likely to be approved with a cosigner
- 0.25% discount when you set up autopay
How do SoFi student loans work?
As with any time you take out a loan with a lender, you’ll repay your SoFi student loan with monthly payments. The size of those payments will depend on your interest rate, how much you borrow, and your loan terms.
You’ll be required to repay your loan six months after graduation. You’ll need to meet some requirements to apply for a SoFi private student loan, too.
You must be a U.S. citizen, permanent resident, or non-permanent resident. You must also be in school at least on a half-time basis. You must also apply for a student loan of at least $1,000. If a cosigner signs your loan application, that person must also be a U.S. citizen, permanent resident, or non-permanent resident alien.
SoFi will study your credit history and credit reports when you apply. SoFi says it typically requires a minimum credit score of 670 from primary borrowers or cosigners. When applying for a SoFi student loan, click on the company’s student loan page. Once there, click on the “Apply Now” button at the top of the page.
Fortunately, the application process for a SoFi private student loan is straightforward. Clicking the “Apply Now” button will take you here:
Once here, enter your full name, the state where you live, and your email. Be sure to check the box stating that you’ve read SoFi’s disclosures. Then click the “View my rate” button. That will take you to this page:
Once here, let SoFi know whether you are a student, parent, cosigner, or sponsor, and click the “Next” button. Now SoFi will ask for your birthday. Provide that information and click “Next.” You’ll now have to tell SoFi your citizenship status. Once you provide this information, click “Next” again. Now, tell SoFi where you live:
Then click “Next” at the bottom of this page. Now, you will tell SoFi about the school you are attending or will be attending. Once you provide that information, you’ll need to provide SoFi with additional information, such as how much you want to borrow.
You’ll also choose whether you want a cosigner on your loan. SoFi says that 87% of undergraduate students provide a cosigner. That’s because many undergraduate students have not built a strong credit score or do not have a long enough credit history.
You can also choose from private student loans with variable or fixed interest rates. Fixed-rate loans have interest rates that don’t change. Your monthly payment will then remain the same throughout the life of your loan. Interest rates with variable-rate loans can change over time, depending on the performance of the economic index to which the loan is tied. This means that your loan payment can change over time. The benefit of variable-rate loans is that you’ll usually start with a lower initial interest rate.
How much does a SoFi private student loan cost?
The good news? You will pay nothing upfront for a SoFi student loan. SoFi does not charge origination fees or late fees. It also does not charge prepayment penalties if you repay your loan too soon.
You will pay interest, though, on your SoFi student loan. It’s how SoFi earns money on your loan. How much you pay in interest will vary depending on your credit score, loan term, amount you borrow, and repayment terms.
For example, for a private undergraduate student loan with a fixed interest rate and a term of five years, your interest rate will be 4.19% to 14.68%. For a 10-year term, that rate jumps from 8.52% to 14.78% and rises from 8.84% to 14.83% for a 15-year term.
SoFi also offers interest-only loans, where you'll only pay interest on your loan for a set number of years. Later, you'll pay interest and principal, so your monthly payment will rise. The interest rate for a 10-year interest-only undergraduate student loan ranges from 8.78% to 14.78%. For a partial payment student undergraduate loan, SoFi charges competitive rates ranging from 8.51% to 13.23% for partial payment undergraduate student loans and 8.30% to 12.97% for fully deferred fixed-rate undergraduate student loans.
For variable-rate loans with a term of five years, your interest rate will range from 5.74% to 14.68%. Those numbers will be 8.52% to 14.78% for a variable APR undergraduate student loan with a term of 10 years.
5.24% - 12.42% VARIABLE rate APRs 4.17% - 16.69% FIXED rate APRs
- Easy online application!
- No origination fees, late fees, and no insufficient fund fees
- Flexible repayment options to help you find the right loan for you
- Student loans for college, graduate, law, MBA, Health Professionals, and Parent loans
- Students are 5x more likely to be approved with a cosigner
- 0.25% discount when you set up autopay
Features of a SoFi private student loan
Several repayment options
You can choose from four terms when repaying your SoFi student loan: five, seven, 10, or 15 years. The longer your term, the lower your monthly payment will be. But you will pay more interest on longer-term loans than on shorter-term ones.
Cosigner release
You can release your cosigner from his or her loan obligations after you've proven to SoFi that you can make your payments on time each month. SoFi offers cosigner release to borrowers who have made 24 months of consecutive on-time payments.
SoFi offers a fast-track application for some borrowers
If you’ve borrowed money or cosigned on a loan with SoFi in the past, the lender will use information from your previous application to pre-fill most of your new student loan application. This will reduce the time it takes to apply for another SoFi private student loan.
Pros and cons
Pros
- No origination or application fees
- No late payment fees
- No prepayment penalties
- You can borrow enough to fund 100% of your college education costs
Cons
- You will have to meet credit score requirements to qualify
- As an undergraduate, you might need a cosigner on your loan
- Your interest rate could be high if your or your cosigner’s credit score isn’t high enough
Who should apply for a SoFi private student loan?
Those who want flexibility. You can apply for a short-term or long-term student loan from SoFi depending on your cash flow. The lender offers loan terms ranging from five to 15 years.
Those who have a cosigner available. SoFi says that most undergraduate students apply with a cosigner with a solid credit score. That reduces the risk that SoFi takes on and can lower your student loan’s interest rate.
Those who need to borrow a lot. You can fund up to 100% of the cost of your college education, including expenses for books, materials, living arrangements, and food.
Those worried about their income immediately after graduating. SoFi offerrs interest-only and partial-payment repayment options. These options come with lower initial monthly payments, which can be helpful if it might take you time to earn a higher salary after graduation.
Who should not apply for SoFi private student loans?
Those who can still borrow more federal student loan dollars. If you haven’t reached the limit on how much you can borrow with federal student loans, it makes sense to continue to tap that resource before you take out private student loans. Federal student loans typically come with better rates and terms.
Those without access to a co-signer. You can't find a cosigner if your credit score is low or your credit history is short. SoFi might not approve you for a student loan. And if it does, your interest rate might be higher.
Those who aren’t enrolled on at least a half-time basis. You must qualify at least as a half-time student to apply for a student loan from SoFi. If you are not enrolled at least on a half-time basis, SoFi won’t accept your application.
5.24% - 12.42% VARIABLE rate APRs 4.17% - 16.69% FIXED rate APRs
- Easy online application!
- No origination fees, late fees, and no insufficient fund fees
- Flexible repayment options to help you find the right loan for you
- Student loans for college, graduate, law, MBA, Health Professionals, and Parent loans
- Students are 5x more likely to be approved with a cosigner
- 0.25% discount when you set up autopay
SoFi student loans vs. the competitors
Lender | Term lengths | Fees | Credit score needed |
SoFi | Five, seven, 10 or 15 years | SoFi does not charge origination, late, or prepayment fees. | SoFi does not publish a minimum required credit score, but some online sources say you’ll need a score of at least 680. |
Earnest | Five, seven, 10, 12 and 15 years. | Earnest charges no application, origination, late, or other fees. | You or your cosigner will need a minimum FICO score of 650. |
Sallie Mae | 10 to 12 years. | No application or origination fees. | Sallie Mae does not disclose a minimum required credit score. |
Sallie Mae
You can work with Sallie Mae to fund 100% of your education costs with its private student loans. Sallie Mae offers graduate and undergraduate student loans, medical school loans, dental school loans, MBA loans, and career training student loans.
If you apply for a fixed-rate Sallie Mae undergraduate student loan, expect your interest rate to range from 3.99% to 15.49%. If you instead choose, a variable-rate undergraduate loan, your rate will range from 5.37% to 15.70%. Sallie Mae charges no origination or application fees for its private student loans.
Loan terms for undergraduate loans range from 10 to 15 years. Sallie Mae will check your credit history and score when you apply for a student loan. The company does not disclose its minimum required credit score.
Earnest
Earnest offers private student loans with terms of five, seven, 10, 12 and 15 years. It also offers a variety of repayment plans, including a standard plan with a fixed monthly payment, an interest-only plan that features a smaller initial payment and larger payments later, and a rate-reduction plan that comes with a lower interest rate if you are struggling to make your current payment.
You will need a FICO credit score of at least 650 to qualify for an Earnest student loan. If you take out a fixed-rate private student loan from Earnest, your interest rate will range from 4.64% to 16.74%. If you take out a variable-rate loan, this rate will range from 5.87% to 18.51%.
FAQs
What can I use SoFi private students loans to pay for?
You can use these loans to cover 100% of the costs of your college education. That includes the costs of your tuition, but also the costs of books, materials, living arrangements and meals.
When must you being repaying SoFi student loans?
You have a grace period of six months after graduating during which you do not have to repay your SoFi student loans. Once those six months are up, it's time to begin making regular monthly payments.
Do I need a cosigner to qualify for a SoFi student loan?
That depends on the strength of your credit and your income. Many undergraduate students haven't built enough of a credit history to qualify for a SoFi student loan without the help of a cosigner. These same students might not earn enough income. Having a cosigner with a strong credit score and income makes it easier for many students to qualify for a SoFi private student loan.
The bottom line
Taking out a private student loan from SoFi could be a smart decision if you need extra money to cover your college education. You can fund 100% of your college costs with a SoFi loan, and you can take out a loan that’s tailored to the type of degree you are seeking. Just remember: Whatever you borrow, you must pay back. Make sure you can afford your monthly payment once your deferment period ends.
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Writer
Dan Rafter is a freelance writer who has more than 20 years experience covering personal finance. He's written for the Chicago Tribune, Washington Post, Bankrate, CreditCards.com, Rocket Mortgage, NortonLifeLock and several others.
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