SoFi (Social Finance) provides private student loans with rates starting at 5.99% annual percentage rate for well-qualified borrowers, making it one of the lower-cost options in the private lending market. The company bundles loan benefits that other lenders don't typically offer.
All SoFi borrowers receive unemployment protection, which pauses monthly payments if they lose their job. The lender also waives one month of payments annually for members who maintain a SoFi checking and savings account, effectively reducing borrowing costs by 8.33% for compliant users. These features appeal to employed borrowers with stable income who value extra financial cushioning.
SoFi offers both fixed and variable rate loans. Fixed rates range from roughly 5.99% to 11.99%, while variable options start lower but carry refinancing risk if rates spike. Loan terms span 5 to 20 years, allowing borrowers to choose between faster payoff or lower monthly payments.
The catch: SoFi requires strong credit to qualify. Applicants need a FICO score around 680 or higher and verifiable income. The company also does not accept Parent PLUS loan consolidation, limiting eligibility for some borrowers. Federal student loan holders should exhaust Public Service Loan Forgiveness and income-driven repayment options before refinancing into SoFi's private loans, since private loans forfeit federal protections.
SoFi's $250,000 maximum loan amount suits graduate and professional school students, though undergraduate borrowers can access the same rates. Application approval takes 1 to 3 business days, and funds disburse quickly once approved.
For borrowers with strong credit seeking lower rates and willing to sacrifice federal protections, SoFi delivers competitive pricing. The unemployment protection and member discount provide real savings beyond the