Our reviewers evaluate products and services based on unbiased research. Top Consumer Reviews may earn money when you click on a link. Learn more about our process.
Friday, August 12th
SoFi is one of the most popular options for students who want to refinance their loans. More than 375,000 SoFi members have refinanced over $30 billion in student loans, and the company was named as one of the best choices in the industry by US News and World Report. You'll regularly find SoFi included as a trusted partner on platforms that refer prospective borrowers to other lenders, too.
Good reasons to get loans refinanced here
There are a lot of reasons why SoFi should get your business for refinancing student loans. They're available to residents of all 50 states and DC, and their minimum loan amount is just $5,000. SoFi is also one of the only lenders we found who will refinance loans on associates' degrees and not just bachelors' and up.
Lowest rate guaranteed and other promos
Also, SoFi guarantees that they'll refinance your student loan with the lowest rate. Terms and conditions apply, but if you meet the criteria they'll not only match that rate but also give you $100! And, at the time of our most recent visit to the SoFi site, there was a promotion offering a $500 welcome bonus on newly-refinanced student loans.
No Social Security number required to prequalify
Finding out if you prequalify for refinancing is easy. Just answer a few questions about why you want to refinance your loans and if they're federal, private or a mixture. You can either enter the information from your current loan(s) manually, or link via Plaid to your current provider (Sallie Mae, Discover, Navient, and so on). SoFi will gather other details like your graduation year and field of study, your annual income, and so forth, until they've gathered enough information to do a soft pull on your credit report. We were glad that we didn't have to provide our Social Security number for SoFi to prequalify us for student loan refinancing: many of their rivals required it.
Many combinations of rates and terms
You'll find plenty of loan options here: fixed-rate and variable-rate, terms anywhere from 5-20 years, and all with competitive interest rates. While we didn't qualify for their absolute lowest APRs, we were pleased with what we were given during the prequalification process.
Not a flawless reputation
In spite of all these positives, SoFi's standing isn't picture-perfect. Their reputation has taken some hits over the years, from an FTC action in the past that didn't get resolved until 2019 to more than 150 complaints filed with the Better Business Bureau in the year leading up to this review - though many of those are related to SoFi's other financial products and not to student loans and refinancing. Still, we found complaints from students who said that they never got the promotional money they were expecting, that their loans took too long to fund, and that their interest rates were higher than average. And yet, the BBB still gives SoFi their highest possible rating ("A+" ) and there's a lot of feedback from very satisfied student borrowers too.
Still a good choice for student loan refinancing
SoFi maintains its spot as a recommended choice for student loan refinancing, despite some of the flaws in its reputation. It's a good option for students who might not be eligible to refinance with other lenders for some reason, and we like the wide variety of rates and terms found here. We're hopeful that customer feedback will continue to improve, and we give SoFi high marks for their student loan refinancing product.
If you got your student loans back when interest rates were high, you're smart to think it might be a good idea to refinance when rates have dropped. Whether you get a lower rate or take years off your loan (or both!), your savings could be in the tens of thousands of dollars.
You can typically qualify to refinance your student loans if your outstanding balance is at least $5,000, though some lenders have higher minimums. You'll often need to be in good standing and up to date on your current loan payments, have steady income and a credit score of 660 or higher. Otherwise, your refinancing may require a cosigner.
But, be careful if you're considering refinancing your federal student loans into a private loan. There are some benefits offered with government student loans that don't carry over into privately-funded ones. Do your research before you sign on the dotted line and make sure that the benefits you'd gain outweigh the perks you'd lose.
So, you've determined that it's the right time to refinance your student loan. What should you look for in a lender? Here are some factors to guide your decision-making:
To help you determine the best way to refinance your student loan, TopConsumerReviews.com has evaluated and ranked today's top lenders. We're confident that with this information, you'll easily find the right rate and term on your loan refinancing!
Select any 2 Student Loan Refinance Companies to compare them head to head
CNN on MSN.com
Clock is ticking for Biden to make key decisions on student loans
With less than three weeks to go until the federal student loan repayment pause expires, millions of borrowers are still in the dark about whether President Joe Biden will extend the current payment ...
Thu, 11 Aug 2022