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SoFi Student Loan Refinance Review

SoFi is the biggest name in student loan refinancing for a good reason. However, SoFi isn’t the best choice for all borrowers.

Written By: Michael P. Lux, Esq.

Last Updated:

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When this site first reviewed SoFi back in 2014, readers wanted to know if SoFi was legitimate and how the student loan refinance process worked.

Over the years, refinancing has become far more common, and SoFi has grown into one of the biggest names in student loans and finance in general.

Despite all of these changes, the fundamental questions remain. Is SoFi student loan refinancing a good deal? What should consumers expect?

Meet SoFi in 2024

SoFi first started as a student loan refinance company, but they have significantly expanded.

SoFi now offers mortgages, personal loans, and investing services. The days of SoFi being the plucky underdog are over.

For borrowers focused on getting a lower rate on their student loans, this evolution has some advantages.

For SoFi to grow, they had to evolve from a lender that focused only on high earners to a lender willing to accept a wide range of borrowers. The good news for borrowers is that many of the perks that SoFi used to target the doctors and lawyers of the world still remain.

SoFi approved many borrowers with less than perfect credit in an attempt to expand. We have also seen borrowers with excellent credit shop around to compare rates and find that SoFi was the best option. As a result of SoFi’s ability to offer the best rate for a variety of borrowers, SoFi checks in at #3 in our student loan refinance lender rankings.

SoFi Refinance Rates and Options

SoFi offers a wide range of student loan refinancing options. As of May, 2024, the following rates and terms are available:

SoFi Overview
Loan Terms5, 7, 10, 15, and 20 Years
Variable Rate Loans6.24% - 9.99%
Fixed Rate Loans5.24% - 9.99%
Minimum Refinance Amount$5,000
New Borrower BonusNA

The lowest listed rate includes a .25% autopay discount. All rates listed as an APR. See full SoFi disclosure for full details.

Borrowers can refinance federal student loans, private student loans, and Parent PLUS loans. SoFi, like most legit lenders, does not charge any application fee, origination fee, or prepayment penalties.

Looking at all of the SoFi possible rates and options, borrowers should be careful to tweak loan repayment lengths to find the sweet spot between getting the lowest rate and getting the best monthly payment.

For example, one strange aspect of the current SoFi options is the close rates offered for longer-length loans. The rate on a 10-year loan may be only a fraction of a percent less than the rate on a 15 or 20-year loan. Opting for a longer loan can result in an interest rate that is only slightly higher. The longer loan advantage is more flexibility.

Note: having a 20-year loan does not mean that a borrower must take 20 years to pay it off. Opting for the longer duration loan gives the borrower the flexibility of low minimum payments. Additionally, the loan can still be paid off aggressively by making extra or larger payments.

The SoFi Advantages

SoFi offers competitive interest rates and flexible repayment terms. However, the advantages associated with SoFi go beyond the numbers.

To handle a large volume of applications and borrowers, SoFi has a streamlined system. The application process and loan funding is fast and simple.

SoFi also runs its customer support out of a California call center. Having the customer support team here in the United States doesn’t necessarily guarantee better service. Still, we do like to see them spending the extra money to make sure customers get the best treatment possible.

Borrower Beware – The Danger of Refinancing Federal Student Loans

If you have the credit score and income to qualify for SoFi, it is a great option. However, there is one warning that all borrowers need to consider carefully…

SoFi, like most other refinance lenders, is willing to consolidate federal loans with private loans. Though combining federal loans with private loans is a mistake for some, in other 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 or refinance, it is critical to make a smart decision when weighing the federal perks vs. the lower interest rate on the private market.

Outside of the traditional concerns that go with student loan refinancing, we see no additional concerns associated with SoFi.

How does SoFi work?

First, borrowers specify the loans that they want refinanced. SoFi creates a new loan and uses the funds from that loan to pays off the old loan. The borrower then pays off their debt to SoFi according to the terms of the new loan.

Borrowers typically refinance to achieve one of two goals:

  • Lower Payments – Selecting a longer loan or getting a lower interest rate means a smaller monthly bill.
  • Reducing Interest – Some borrowers select a short loan with an ultra-low interest rate. Going this route eliminates the loans as quickly as possible and minimizes total spending.

SoFi’s seems to have a goal of becoming the finance company for millennials. This is evidenced by their aggressive expansion into areas like banking and life insurance.

Helping people pay off their student loans seems to be SoFi’s way of securing long-term customers who continue the business relationship in more profitable areas such as wealth management.

From a student loan borrower perspective, this is probably a slight advantage because it means SoFi has an incentive to keep customers happy even after they have refinanced their loans. These long-term goals would also explain why SoFi can keep its rates lower than most of the other lenders in the marketplace.

SoFi Refinance Reviews from Actual Customers

When this article was originally published, we could only base our opinion on the black and white terms of the SoFi loans. Since that time, dozens of customers and would-be customers have taken the time to leave their thoughts in the comment section.

What we have learned is that SoFi customer satisfaction seems to revolve around whether or not the application was approved. Because of the originally tough underwriting criteria, many people have stopped by to share their disappointment with their denial. As one user summed it up, “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.”

SoFi Complaints and Reviews from the BBB, Reddit, and Others

Most of the SoFi reviews from other experts have reached similar conclusions.

The Better Business Bureau gave SoFi an A+ rating, but there were numerous user complaints about SoFi. Some of the complaints dealt with SoFi’s mortgage and personal finance loans. The customer rating was 1.59/5 from a total of 311 reviews.

Reddit users generally have positive things to say about SoFi. However, when doing head-to-head rate checks with other lenders, SoFi at times did not offer the best interest rates.

The Consumer Financial Protection Bureau complaint database has about 50 complaints related to SoFi student loans. The issues were varied in the complaints. In terms of the volume of borrower issues, SoFi is comparable to other lenders, perhaps a bit better than average.

In short, the SoFi reviews are mixed, which is to be expected with any financial company.

SoFi Compared to Other Lenders

SoFiLendKeySplash Financial
Pros:SoFi is the biggest name in student loan refinancing for a simple reason – their rates are reliably among the best on the market.LendKey works with a large network of smaller credit unions and banks. As a result, many applicants get the best offer from LendKey.Splash has the best new customer bonus right now, and they have excellent rates and term opitons.
Cons:SoFi has grown into a large company offering mortgages, personal loans, and investment services. They no longer focus entirely on student loan refinancing.Going the LendKey route does require working with a local bank or credit union. For many, this is a plus, but it is an extra step.Splash is a newer lender and getting approval may be more difficult for some borrowers.
Up to $500

Should I apply for a SoFi loan?

SoFi is an excellent option for student loan refinancing, but SoFi is far from the only option.

Borrowers looking for the best deal would be wise to check their rate with SoFi. However, checking rates with other lenders is also essential as many companies advertise rates as low or lower than SoFi. Each lender uses different underwriting criteria. Thus, it is impossible to say which of the top student loan refinance companies will actually offer the best rate.

Click here to check your rate with SoFi.

About the Author

Student loan expert Michael Lux is a licensed attorney and the founder of The Student Loan Sherpa. He has helped borrowers navigate life with student debt since 2013.

Insight from Michael has been featured in US News & World Report, Forbes, The Wall Street Journal, and numerous other online and print publications.

Michael is available for speaking engagements and to respond to press inquiries.

100 thoughts on “SoFi Student Loan Refinance Review”

  1. Pros: They are quick to respond.

    Cons: Do not expect compassion or flexibility from them.

    When considering refinancing with SoFi, I called and specifically asked about In-School Deferments as I am currently enrolled full-time in graduate school and cannot afford to make payments. The customer service agent assured me that SoFi would help me in this regard, so I decided to go through with the refinancing.

    I made a rookie mistake: I didn’t carefully read the contract. It turns out that they require interest payments from people enrolled full-time in school if that person refinanced their loan with them. I explained that I cannot afford this. I asked if I could pay a reduced amount. I explained that I was misled in my earlier communications about the terms of in-school deferments.

    SoFi did not care and are still insisting that I pay the full amount, which is 20% of my meager income working 30 hours each week in addition to my full-time schooling. Now I have to figure out how I can come up with this money, and I honestly have no idea.

    As a note, I could remove the in-school deferment and then apply for economic forbearance, but they only allow a maximum of 12 months of economic forbearance for the life of the loan, and I have two more years of my PhD, so that is of little help.

  2. SoFi is a scam. When the fed cuts interest rates it has zero impact on the rates they offer. Just move to another country and do income based repayment for 20 years, don’t mess with these people.

  3. We just had a wonderful experience refinancing our student loans with SoFi! We applied for several different products and eventually got a loan for $187,000 bringing our interest rate down to 3.8% from 7.5%, reducing our monthly payments from $2,300 to $1,600! I highly recommend this company for refinancing – not to mention their incredible career and professional benefits for members, and lots of free stuff! They work with you to make it happen–trust me, if we can get refinanced, ANYONE can!

  4. The sofi rates are competitive. The online process is easy and you can get pre-qualified without impacting your score. I got approved in a day or so. Unlike other refinancing options this one also offers a freeze on commitments in the event you lose your income. This is reassuring. Its worth looking into, to reduce interest charges and possibly help to improve your score along the way. This is particularly encouraging as credit card rates are going to be on the upswing going forward.


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