SoFi is a financial services company that is only a few years old. Originally, SoFi focused exclusively on Student Loan Consolidation and Refinancing services for MBA students from certain schools. As SoFi grew, they began to include all areas of study and a wide range of schools. Today, SoFi is the biggest name in the student loan consolidation and refinancing business.
In addition to their work with student loans, SoFi now also offers personal loans and mortgages in certain states.
“Try SoFi” is their clever slogan aimed at getting more people to seek out their services.
Is SoFi a Good Deal?
For many student loan borrowers, SoFi is one of the better options in the market. In fact, they currently rank first in our list of student loan consolidation companies.
However, SoFi is not for everyone. SoFi has gone to great lengths to be the company with the most customer perks. It is why the “Try Sofi” advertising campaign focuses on the many services that they offer borrowers, such as their networking events. They even offer a $150 sign up bonus to new customers. Surprisingly, these perks do not mean higher interest rates. SoFi is able to offer all of the services and low rates by focusing on the lowest risk borrowers. This means people with jobs who can comfortably afford their debt. If you are struggling to get by, SoFi probably won’t be the life raft you need.
Though we do rank SoFi highly in our comparisons of student loan companies, it is important to note that SoFi may not be the best deal for many borrowers. Shopping around is the only way to ensure that you are being offered the best rate. A full list of national lenders is available here.
How does SoFi work?
SoFi is clearly targeting affluent millennials. They want you to consolidate your student loans with them, and if you have credit card debt, they want you to pay it off with a SoFi personal loan. Finally, when the time comes to buy a house, they want to be the mortgage company you select. All of their programs are primarily focused on helping high income individuals manage large amounts of debt.
As a consumer the advantage to this business structure is that SoFi has a huge incentive to provide great customer service. They want your ongoing business. If your internet provider has a monopoly in your area, you know what it is like when a company has no incentive to provide quality service. Poor service is often a problem with student loan lenders. The SoFi business strategy will not necessarily ensure great service, but it does mean there is a big incentive to take care of their customers.
Not long ago SoFi was a smaller startup offering student loan services to a small group of students. Today SoFi is legitimately on of the best student loan refinance options and a major financial services company. We won’t say SoFi is the best option for customers, but we will say SoFi definitely merits a look.