SoFi consolidation savings

SoFi (aka Social Finance Inc.) Student Loan Review

The Sherpa Blog, Student Loan Consolidation Reviews, Student Loans 48 Comments


Interest Rates


    Loan Terms


      Co-Signer Release


        Repayment Length



          • - Extremely Low Interest Rates
          • - Fixed Rate Plans Available
          • - Job Placement Assistance
          • - Zero Orignation, Application, and Prepayment Fees


          • - Higher Income Requirements
          • - Federal Loan Consolidation is not for everyone

          In-Depth SoFi Review: 

          (Updated January 26, 2015)

          If you are in the market for student loan consolidation or student loan refinancing, one company worth investigating is Sofi.

          The bottom line on this company is that they are offering some of the best interest rates and most flexible terms.  Though some of SoFi’s financing options do present a little cause for concern, their innovative approach and great rates make SoFi a good option for many borrowers.

          How does SoFi work?

          Before you consider using SoFi, it is important to understand what makes SoFi different than traditional lenders.  SoFi was actually created by a group of Stanford business students who wanted to help other business students.  Alumni invested in the program, and the funds were used to help recent grads lower their interest rates.  The program started out just at Stanford, expanded to some other schools, included some other programs, and eventually became a nationwide program.  This approach is commonly referred to as crowd-sourcing or peer-to-peer lending.

          One of SoFi’s goals is for former borrowers to go on to become lenders.  Even if you have no interest in future investments, the fact that the company seeks an ongoing relationship with its customers is a huge positive.  Most student loan borrowers know that the customer experience goes down hill quickly one the lender has your name on the dotted line.  Working with a company that has an incentive to keep you happy is a major upgrade.

          What loans does SoFi offer?

          SoFi presently offers student loan consolidation and refinancing services.  Borrowers specify the loans that they want consolidated or refinanced, SoFi pays them off, and then the borrower pays off their debt to SoFi.  The objective behind consolidation and refinancing is to lower your monthly payments by qualifying for a lower interest rate or by spreading out the payments over a longer period of time.  Doing both of these things can save you money over the short term and in the long run.

          SoFi offers both fixed rate and variable interest rate loans.  The fixed rate loans start at 3.5% and have a maximum possible rate of 6.99%.  Borrowers can sign up for 5, 10, 15, and 20 year repayment plans.  The variable rate loans are presently as low as 1.92% to 4.92%, and they are tied to the LIBOR rate.  The interest rate is capped at 8.95%.  These rates are among the very best on the market, and the 1.92% rate is the lowest we have ever seen.

          SoFi, like most legit lenders, does not charge any application fee, origination fee, or prepayment penalties.

          What is the cause for concern with SoFi?

          SoFi offers a service that some lenders do not provide.  They are willing to consolidate federal loans with private loans.  Though combining federal loans with private loans is a mistake for many, in some 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 it is critical to make a smart decision when weighing the federal perks vs. the lower interest rate on the private market.

          If you are considering applying for consolidation with SoFi and want to make sure that your federal loans are not included, go to the federal student loan database.  There you will be able to pull up a full list of your federal loans.  If the loan is not on the list, you can be assured that it is a private loan.

          Who is SoFi best for?

          Due to the fact that SoFi offers such low interest rates, most private loan borrowers could likely benefit from their services.  SoFi has a reputation for being one of the more difficult lenders to qualify for, so interested borrowers will need a higher credit score and a good income.  However, the perk that comes with picky lending is low interest rates, and currently SoFi offers some of the best we have ever seen.  To see if you qualify and to lock in a low rate, apply here.


          The SherpaSoFi (aka Social Finance Inc.) Student Loan Review
          • mike

            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.

          • Nick

            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

            • The Student Loan Sherpa

              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.”

          • jaybob

            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?

            • S

              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.

            • Jules22

              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?

            • Brandon

              No one has to pay your loans when you die. So this is a waste of money on your part.

            • Frank

              if you make 120 payments without being late or missing one, you can have your federal student loans forgiven under Obama’s forgiveness act.

            • all_I_have_to say

              is this true? I’ve never heard this before,,,,thats awesome if its true

          • Cory

            I refinanced my student loans through SoFi and have to say that the
            entire process was horrible. The application process ended up taking 3
            months. Every time that they said something would take 3-4 days it took
            3-4 weeks. Each time I called them I got a different story about what
            stage my application was in. When they claimed that everything was
            finalized I found out that they never sent checks to several of my old
            loan companies and I ended up paying payments to multiple companies for
            the same loans. I called them to rectify the situation and asked to
            speak to a manager. I spoke to a VP and she told me she would figure it
            out “right away” and call me right back. It has been 4 days and I
            still have not received a call. Pretty much sums up my interactions
            with this company. I feel like you couldn’t run a company this poorly
            if you tried.

            • Lil25

              I’ve heard that SoFi is very easy compared to Darian Rowayton.

            • Enrique M. Rivera-Cortes

              It was super easy! I had initial reservations based on Cory’s response but I still decided to go through with it. I am glad I did.

            • YappysDogTreats

              About how long did it take for it to go through from the day you first applied?

            • The Student Loan Sherpa

              I’ve heard of it taking as little as a couple weeks to as long as a month.

            • Enrique M. Rivera-Cortes

              It took about two weeks from start to finish. I checked my loans with Mohela and Wells Fargo and they were paid on 12May. I started the process on 30Apr.

          • Lil25

            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.

          • Ryan

            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.

          • Mark

            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

            • Linda

              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.’

            • Angela

              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.

            • nicole

              same 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!!

          • Rez

            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 [email protected].

            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.

          • Ruhiyyih

            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.

          • TED

            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 !!

          • TMEA

            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.

          • Andrew

            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.

          • Ellen

            I have only federal loans at 6.5 %….is it wise to consolidate with Sofi?

            • The Student Loan Sherpa

              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:

              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.

          • Bi

            Do NOT refinance your student loans with SOFI / Trustudent.
            If I could give them negative stars, I would. I refinanced and consolidated my
            2 loans in to a new SOFI loan and TRU Student handles the loan servicing. One old
            loan was with Sallie Mae and the other one already with SOFI. The day my new
            loan was disbursed, Sallie Mae received the money from SOFI and paid off my
            loan in full and I NEVER paid even a penny on the Sallie Mae loan after that
            date. Now what happened with the loan that I had with SOFI. From the day the
            new loan was disbursed, it took 23!!! days for the old loan to be paid off!!!!
            Sallie Mae which is an external company received the fund on the same day of
            the new loan disbursement and paid off my loan but SOFI took 23 days to
            transfer the fund from the new loan to pay off the old loan within the SAME
            company. And guess what, during those 23 days, they accumulated interest on
            both my new loan and old loan while the old loan should have been already paid
            off. Also, they debited my bank account for my monthly charge on the old loan!!!
            How could that happen?? I was making payments on both loans simultaneously and
            both of them were accumulating interest!!! Expect DOUBLE interests for more
            than 20 days when going with SOFI! The fact that they say there is no fee for
            the loans, is NOT the truth. There is a fee and that’s the fee that YOU pay for
            their extremely slow processes and extremely unproductive working way. So I did
            call them for at least 12 times!!! SOFI asked me to call TRUStudent and TRU
            student referred me back to SOFI. Every agent gave me a different response and
            when I called back to follow up every time, the new agent was completely blank
            not knowing anything about my account history so every time I had to explain
            what happened to my case from scratch. Ultimately after talking to 10 agents or
            more, and not getting any response from any of them, I requested to talk to a
            manager. I called 3 more times in a 1 month period asking for a manager to call
            me back and every time I was promised that a manager will call me ASAP. 1 month
            since my last email and call and I’m still waiting for a manager to call me!!!
            The customer service is horrible and when you email them, what you get is an
            automated response or some generic answers!!! BTW, they never sign their emails
            with their names. Is that professional at all??? All they put under their
            emails is their name initials like A.B. so you’d never know who responded to
            your emails. I’ve been in the business world for 10 years and I’ve never seen
            people responding to emails with their initials as their signature! As a result
            of this refinancing, I’ve lost almost $300 because of paying interest on both
            old and new loans simultaneously while they were thinking how to handle the
            case. It’s really interesting that an external company receives the fund on the
            same exact date and pays off your loan but it takes 23 days for SOFI to
            transfer the fund from your new loan to pay off the old loan. I’m completely
            disappointed with their customer service. If you think there are no fees in
            refinancing loans with SOFI, think twice, because ultimately YOU are the one
            who has to pay for their extremely unproductive and slow work. I’m still
            waiting to hear back from a manager after calling them back and forth for 5
            months!!!! The wait goes on…….

          • WIStoney

            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.

          • Mike Andrews

            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.

          • Svetlana

            I just received an offer from sofi. There is a $5000.00 finance charge and I am not sure what that is exactly. Is it the cost of refinancing?

            • The Student Loan Sherpa

              My understanding is that there should not be any fees associated with the loan. Is it possible that the finance charge is the amount you spend in interest over the life of the loan?

              If it is any other sort of fee, please let me know and I will update the article accordingly.

            • Svetlana

              So I found out that it is the total interest you will pay over the life of the loan.

          • jim

            So 625 credit score making 46000/year 56k in loans. From the comments it sounds like I shouldn’t even bother right?

            • all_I_have_to say

              thats my question…. I make about $50k a year and have double your loans,,,,no one replied to you so I’m curious as to know if you applied or not?

            • G-dub

              I’d advise against it. My credit score is above 700, income just shy of $50k and private loans around $40k. I was denied for insufficient income despite getting the ‘pre-approved’ letter in the mail. Seems that they’re only helping those that are already in excellent financial shape.

            • Claire

              Observe your income and FICO you would be better getting a personal loan from a credit union with low rate try your local bank they are the best for personal loans

            • Dan

              Yeah I wouldn’t

          • Johnny Heedless

            After seeing some of the negative reviews on here, I was a little worried about the process. But, my refinancing was flawless. I had $60k balance left of consolidated subsidized loans with Sallie Mae (AKA Navient) at a ridiculous 8.5%. I was pay $1,000 a month to try and speed up that balance considering I was wasting nearly $5k a year in interest payments. So, I applied with SoFi. I followed all the instructions and send them any paperwork that was requested. It took about a week to get fully approved and another week for the funding to arrive at Navient. The two week process left $105 balance at Navient, which I promptly paid off. SoFi gave me 2.67% variable interest with a 10-year payoff — hopefully LIBOR will remain low.

            While at 8.5%, I was aggressive about paying off my balance. Now, at 2.67%, I am much less concerned. I’ll probably just stick with the 10-year repayment schedule as long as LIBOR stays low and use the difference increase my savings in my kids’ 529s (I don’t want them to leave school with the loans I did). The refinancing will probably save me $20k over the life of the loan.

            It couldn’t have been easier to go through the process. My good FICOs and income probably had a lot to do with my ease.

            • all_I_have_to say

              I was getting worried after reading these reviews as well and you are the only one on here who gives this company any positive reviews? what hurdles did you experience? I’m asking because I’m interested in re-financing my loans which are currently a little north of $100k with a rate of 11%. I pay more than a $1,0000 a month and currently make around $60k yearly. My credit score is not that great but the funny thing is, the only thing on my credit is this stinking student loan and I’m really limited on what I can do. You didn’t experience anything annoying or any type of hurdles?

            • Johnny Heedless

              I didn’t experience any any significant hurdles other than having to send them copies of my pay stubs and a an additional form of ID (a copy of my passport). That being said, my financial situation is a little better than yours. My FICOs hover near 800 and my salary is well into the six figures. Based on what I read here and on another review site, 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.

            • all_I_have_to say

              ” 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”,,,,,,why would you say that? that can’t possibly be true could it?! not in America!,,,,:,-) thanks for your input

          • Anya

            Hello, I have read comments about the requirements. I was thinking of applying without a co-signer, and pretty sure that mine would be denied too. Have any of you found another company that was reasonable? I am looking at CU Student Loans?

          • Claire

            Yes so the whole experience with sofi was not bad for me I refi a little over 65k my fico is upper 750+ I make more than 6 figures my debt is low, I think the people who are complaining obviously dint complete any financial course in school, do the math people you are trying to borrow double what you get paid I.e borrowing $100k only making 50k with fico scores in the low 700. Sorry to be blunt it’s not the fault of Sofi or any other financial institution it’s your fault for not reading over the fine print before signing.

          • DGOODELL

            I filled out an application and then saved it to my file WITHOUT SUBMITTING! I read a ton of awful reviews and decided not to apply. I got back on the website and tried to delete my application- not possible. I left the application and that’s been 3 weeks ago. Today I received an email that I was denied for loan consolidation- THE ONE I NEVER APPLIED FOR!!!!!! They pulled my credit as well with out my knowledge or acceptance. When I called to delete my file she lady said that the computer sensed that there was enough information to go ahead and submit and they “only did a soft pull of credit”. WELL LADY- SHAME ON YOU. I never even applied for your horrible consolidation program. BEWARE OF THIS PROGRAM.

          • ShoppedAround

            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.