Many college graduates, even those who land fantastic jobs, can find themselves battling debt for years after they’ve tossed their caps in the air. This is particularly true for those burdened with pricey private student loans. If you’re struggling to make ends meet, getting rid of student debt through bankruptcy is almost an impossible task. This can lead to a seemingly never-ending cycle of financial consequences that can last for decades.
Enter SoFi, a company that’s trying to turn this grim picture around. SoFi kicked off earlier this decade with a student loan refinancing product, using a peer-to-peer lending model between the public and qualified student borrowers. This product was available to graduates from over 2,000 U.S universities.
Over the years, SoFi has broadened its scope and now provides personal loans, mortgages, and non-loan products and services like wealth management, life insurance, and a deposit account known as SoFi Checking and Savings. While it has moved away from the peer-to-peer aspect, SoFi continues to innovate in other areas.
SoFi offers a range of financial products and services. The rates on these loans can vary depending on your income and credit history.
One of these is Student and Parent Loan Refinancing. SoFi provides refinancing loans that could potentially lower the interest rates on your outstanding private and federal student loans. This is available for undergraduate loans, medical and dental loans, and Parent PLUS loans. The minimum principal on any SoFi refinancing loan is $5,000, and the maximum is the full outstanding balance of the refinanced loan. There are no application or origination fees, and terms range from 5 to 20 years.
SoFi also offers fixed-rate personal loans with principal balances ranging from $5,000 to $100,000 and terms ranging from 2 to 7 years. Rates can vary significantly and may change with prevailing rates. There are no application or origination fees.
SoFi provides mortgage loans to borrowers in 32 states. These include Adjustable Rate Mortgages (ARMs), Fixed Rate Mortgages, Refinancing Loans, and Cash-Out Refinancing Loans. SoFi also offers a student loan refinancing mortgage that allows you to refinance your home loan at a lower rate and use some of the equity in your home to pay down your student debt.
SoFi’s wealth management program, SoFi Invest, is a robo-advisor similar to Wealthfront or Betterment. The minimum opening investment is $1, and balances are protected by SIPC insurance up to $500,000 per account type.
SoFi partners with Ladder, an insurance startup, to offer term life insurance policies for qualifying U.S. clients.
SoFi Checking and Savings is a high-yield deposit account that combines the best features of checking accounts, savings accounts, and cash back credit cards.
SoFi also offers additional features like Career Coaching, a Referral Program, Unemployment Protection, an Autopay Discount, and a SoFi Member Discount.
While SoFi has many advantages, it also has some disadvantages. These include strict financial eligibility criteria, limited availability of loans, and variable rate options that may not save you much.
To be eligible for any SoFi loan, you must meet certain criteria. These include being a citizen or permanent resident, being 18 years or older, having no bankruptcy declarations within the past 3 years, and being currently employed or holding a binding offer of future employment.
In conclusion, SoFi is becoming an increasingly popular option for borrowers seeking to refinance student loans or obtain mortgage loans and personal loans. It offers lower rates than many competitors, as well as valuable perks like networking opportunities and job search assistance. Recently, SoFi has expanded beyond consumer lending, moving into wealth management and insurance. It’s an exciting time to be a SoFi member.
