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Unlock the Power of Student Loan Refinancing

Understanding the Process

Are you struggling to manage your student loan debt? Refinancing and consolidating your loans can be a game-changer, helping you save money, simplify your payments, and pay off your debt faster. But where do you start?

We sat down with Christina Kramlich, Senior Director of SoFi, to demystify the process and explore the benefits of student loan refinancing.

What is Student Loan Refinancing?

Student loan refinancing is a way to combine multiple loans into one loan with a lower interest rate, making it easier to manage your debt. By refinancing, you can save money on interest, make lower monthly payments, and pay off your loans sooner. At SoFi, borrowers can save an average of $14,000 over the life of their loan.

Who is Eligible for Refinancing?

Refinancing is ideal for working graduates with high-interest, unsubsidized Direct Loans, Graduate PLUS loans, and/or private loans. SoFi looks for candidates who are financially responsible and have a strong track record of meeting their financial obligations. Unlike other lenders, SoFi doesn’t consider FICO scores, instead focusing on employment, monthly cash flow, and borrowing history.

Can You Consolidate Federal and Private Loans?

Yes, SoFi accepts both private and federal loans for refinancing. However, when refinancing federal loans through a private lender, you’ll lose some of the benefits that come with those loans, such as deferment or forbearance options. If you think you’ll need these benefits, it’s best to keep your loans with the government.

What’s the Difference Between Consolidating and Refinancing?

Consolidating your loans through a private lender means refinancing them with the goal of locking in a lower interest rate. Direct Loan Consolidation, on the other hand, is a government program that combines multiple federal education loans into a single loan with a weighted average interest rate.

Benefits of Refinancing and Consolidation

Refinancing can save you money on interest and help you pay off your loans faster. Consolidation, through Direct Loan Consolidation, allows you to combine federal loans into one loan with a single interest rate and monthly payment. Both options can simplify your financial life and help you achieve your goals.

How Do You Get a Rate?

After qualifying to refinance, you’ll be given a range of loan options to choose from, including fixed and variable interest rates and shorter or longer terms. Your rate refers to the interest you’ll accrue based on those term options. Many lenders, including SoFi, offer an easy online pre-qualification process to determine your rate.

Is Getting Approval Difficult or Time-Consuming?

No, it doesn’t have to be! SoFi’s application is completely online, and you can find out in minutes if you’re approved and what your rate will be. When choosing a lender, consider factors like customer service availability, benefits, and fees.

How Does SoFi Differ from Other Providers?

SoFi offers competitive rates, a range of options, and no origination fees or prepayment penalties. We also provide support through community events, career services, and unemployment protection. Our unique Entrepreneur Program helps qualified members defer their student loan debt and access resources to pursue their dreams.

Does Refinancing Affect Your Credit Score?

Responsible repayment of debt usually has a positive impact on your credit score. SoFi conducts a soft credit pull that won’t affect your score, but a hard credit pull may be required if you choose a product and continue your application.

Additional Resources

For more information, check out SoFi’s Student Loan Calculator and The Smart Borrower’s Guide. Our customer service team is available 7 days a week to answer your questions.