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Refinance Student Loans With SoFi: Rates Starting At 2.13%

With SoFi, you can refinance student loans — federal or private — at rates as low as 3.50 percent percent fixed or 2.13 percent variable (with AutoPay discount).

Refinance student loans with SoFiRefinancing student loans used to be something of a fantasy. Yes, it could be done, but it was hard to find lenders willing to do it and, if you did, the rates may not have saved you much money anyway.

That’s changing thanks to companies like SoFi, which sees a win-win in graduates’ increasing student loan debts.

Today, young adults carry around more than $26,000 in student loan debt on average, according to The Project on Student Debt. It’s an albatross for young adults trying to establish themselves financially.

About SoFi

Sofi provides student loan refinancing funded by alumni of your school.Dan Macklin (pictured), the co-founder of SoFi, wondered much the same while finishing up at the Stanford Graduate School of Business. It was 2011, and over drinks with a few of his classmates, the group talked about the state of the student loan realm—a state of emergency, if you prefer.

“We were horrified by the high rates people were patting for student loans, and 93 percent of loans are made by the government, so there is very little choice for students out there,” Macklin says. “It’s an underserved market and we wanted to bring a new solution, something that was completely fresh.”

And so Macklin set to work immediately. He graduated Stanford on a Saturday and started SoFi the following Monday.

SoFi, short for Social Finance, began by getting alumni from certain top universities to fund student loan refinancing for graduates of their school. In just a few years, SoFi has grown to be the largest provider of student loan refinancing in the United States.

Are you eligible to refinance student loans with SoFi?

To be eligible to refinance your student loan with SoFi, you must:

  • Be a U.S. citizen of legal age
  • Be employed or have an offer of employment to start in the next 90 days
  • Have graduated from an eligible Title IV accredited university or graduate program
  • If you are refinancing law school loans, you must have passed the bar and be a licensed attorney
  • Have at least $10,000 in student loans to refinance (federal or private)

SoFi provides student loan refinancing to 48 states and Washington. D.C. At this time, SoFi does not provide loans to residents of Nevada or Idaho.

If you meet the above criteria, you can apply to refinance your loan with SoFi. To be approved, you must have a good job and proof of reliably meeting your monthly financial obligations. Note that SoFi does not, however, use FICO scores in underwriting its loans.

Student loan refinancing rates

As for SoFi’s refinancing loan rates, they’re likely to beat anything you currently — even through the federal government.

If you sign up for a fixed rate loan with AutoPay deductions, you’ll be starting as low as 3.5 percent APR. For variable rate loans, the starting rate with AutoPay is 2.13 percent APR. Below is a chart detailing all of SoFi’s student loan refinancing rates.

Important! Variable rates in the below graphic are outdated and are currently approximately 0.2 percent higher.

SoFi Student Loan Refinancing Rates

How to apply for student loan refinancing

SoFi’s application process is all online and quite easy. Assuming you have all of your information at the ready, they say you can get approved in as little as 15 minutes. (Of course, some approvals will take longer depending on your situation).

SoFi Student Loan Refinancing Application Process

Sound good?

Check your school’s eligibility and apply to refinance student loans here

Published or updated on January 19, 2015

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About Lou Carlozo

Based in Chicago, Lou Carlozo is a personal finance contributor for Reuters Money, a columnist with DealNews.com, and a former managing editor at AOL's WalletPop.com. Contact him with story ideas for Money Under 30 at feedbacker@aol.com, or follow him via LinkedIn and Twitter (@LouCarlozo63).


We invite readers to respond with questions or comments. Comments may be held for moderation and will be published according to our comment policy. Comments are the opinions of their authors; they do not represent the views or opinions of Money Under 30.

  1. VA says:

    I have been reading Money Under 30 for a while, and I am disappointed to read this post. While there is a clear disclosure at the bottom of this post, I still think you are doing the readers a disservice with this “advertorial.”

    My boyfriend is deep in student loan debt from law school, and he received something in the mail from SoFi this weekend. We looked into it — the reality is very few borrowers will receive a 4.99% interest rate. That was noted clearly on the mail ad (and missing from your post). The variable interest rate offer is also a red flag. Entering into a loan with a variable interest rate is very risky. While many federal loans have interest rates as high as 7%,8%,9%, one of the benefits of a federal loan is a fixed rate. You also receive special protections that private loans do not offer, such as deferment, forbearance, and access to other programs such as IBR and PAYE.

    I am disappointed that your post lists none of the risks of trading a federal loan for a loan through a private lender like SoFi. Many people under crushing student loan debt are desperate. Sites like Money Under 30 should give borrowers a full picture so they understand both the risks and advantages of any product. SoFi could be helpful to some people, but it is not a good idea for everyone.

    Please be more careful in the way you present these “partnership” posts.

    • Elizabeth says:

      Thanks for your comments VA – we at SoFi appreciate your feedback and wanted to respond directly to some of your concerns.

      While you are correct that our most-qualified borrowers get the best rate, we have a narrow range of rates for everyone who qualifies (only a 1% difference – such as 4.99%-5.99% for a 5-year – for any particular length of loan). And all of our rates are below what most are paying for PLUS & Direct Federal Loans.

      Variable rates are not right for everyone, which is why we offer both variable and fixed rate options. However, if you plan to pay off your student loans quickly, a variable rate loan may be a good choice, here’s how to choose what’s right for you: http://bit.ly/16cDxmW

      As for borrower protections, you are correct that most private loans do not offer identical benefits to the federal loan program and this is something we make sure our borrowers are aware of before refinancing. However, we’ve worked with dozens of our borrowers who find themselves in an unexpected financial situation offering loan forbearance or modified payment schedules when appropriate. If a borrower becomes unemployed, we call them up to offer up the help of our on-staff job placement & professional development experts.

      More than anything, we promote smart borrowing. SoFi is a great solution for our community of nearly 3000 borrowers and growing, but we know it’s not right for everyone. We encourage people to explore their options and select the lender, interest rate, loan term, and borrower benefits that are best for them.

  2. JL says:

    I wouldn’t recommend them as a viable option – my husband and I clear six figures per year but they refuse to consider his income and denied me the loan since I had only $1,300 of free cash flow from my salary rather than the $1,500 minimum. So unless you happen to be one rich post-grad without relying on a two income household – good luck trying to get them to loan to you.

    • Elizabeth says:

      JL – Elizabeth from SoFi here. We’d love to talk to you about your individual circumstances and see if we can help. Give Sonja, our head of customer service, a call: 415.697.2029

  3. Micro says:

    It reminds me a little bit of Lending Club, but geared towards student loans and limits the donars to the alumni of the school. I think it would be a while before my school would make the list since I went to a small division III school. I do like the idea though of having a network where I can refinance my loans at a lower rate. I have no issues paying back what I owe but wish I wouldn’t have to pay back so much in interest.

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