SoFi Student Loans
Social Finance — SoFi for short — loans are the perfect option for students wishing to lower payments or manage one monthly payment to one lender rather than several payments to multiple sources. SoFi loans aren’t traditional student loans, in that you don’t borrow from SoFi to cover educational costs while attending school. Rather, SoFi loans come along after graduation, when you’re ready to trade in your federal or private loans in an effort to make them more convenient to manage.
SoFi provides consolidation services and refinancing for students who desire a more manageable or non-traditional student loan payment plan. They accept loans from undergrads and graduate students, as well as parents, provided a degree has been awarded. Other eligibility criteria include:
- Being of legal age to enter into a contract in your resident state
- Have graduated from or be the parent of a graduate from select Title IV universities and colleges
- Law program graduates must have passed the bar exam and be licensed in their state of practice
- All applicants, including cosigners, are American citizens or permanent legal residents
- Have secure employment or the offer for such within the next three months
Employment records, monthly income, credit history, and numerous other factors go into making the decision of whether or not you’re eligible for a SoFi loan. Applicants can expect these loan terms to be similar to those of other traditional loans, not of other student loans. Point blank, not just anyone will be approved for a SoFi student loan. A solid and steady stream of income isn’t a huge problem for most SoFi applicants, because Social Finance only services certain schools. Among the ranks are schools like Stanford, Harvard, and Northwestern — known for producing lucrative alumni, among which many rake in an average of $140,000 per year, CNN Money reports.
The Cost of an Education
FinAid reports that there is a 25 to 35 percent increase in the use of private student loans each year. U.S. News reported an average total student loan debt amount of $29,400 among the majority of 2012 college graduates. This year, federal funding disbursed to students across America totaled approximately $100 billion, the Federal Education Budget Project reports.
As of May of 2013, student loan debt totaled more than $1.2 trillion in the United States, Consumer Finance reports. Loans that have already been consolidated through a private lender or the federal government’s FFEL or Direct Consolidation programs are still eligible for refinancing via SoFi. Forbes Magazine claims that SoFi can save their refinance applicants an average of $9,400 over the course of their loan repayment years.
Other perks of being a SoFi member include career assistance and the ability to put your loans on hold should you lose your job in today’s sometimes rocky economy. Be sure to educate yourself on the ins and outs of these loans prior to applying or going so far as to sign a promissory note.