1. Fixed rates from 3.250% APR to 7.125% APR (with AutoPay). Variable rates from 2.540% APR to 7.380% APR (with AutoPay). Interest rates on variable rate loans are capped at either 8.95% or 9.95% depending on term of loan. See APR examples and terms. Lowest variable rate of 2.540% APR assumes current 1 month LIBOR rate of 1.88% plus 1.26% margin minus 0.25% ACH discount. Not all borrowers receive the lowest rate. If approved for a loan, the fixed or variable interest rate offered will depend on your creditworthiness, and the term of the loan and other factors, and will be within the ranges of rates listed above. For the SoFi variable rate loan, the 1-month LIBOR index will adjust monthly and the loan payment will be re-amortized and may change monthly. APRs for variable rate loans may increase after origination if the LIBOR index increases. The SoFi 0.25% AutoPay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. *To check the rates and terms you qualify for, SoFi conducts a soft credit inquiry. Unlike hard credit inquiries, soft credit inquiries (or soft credit pulls) do not impact your credit score. Soft credit inquiries allow SoFi to show you what rates and terms SoFi can offer you up front. After seeing your rates, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit inquiry. Hard credit inquiries (or hard credit pulls) are required for SoFi to be able to issue you a loan. In addition to requiring your explicit permission, these credit pulls may impact your credit score.
2. Lifetime savings of $30,069 is a hypothetical calculation and is not representative of your situation. Your actual savings may vary based on interest rates, balances, remaining repayment term and other factors. The calculation assumes an original loan amount of $96,672 with a 10-year term and a rate of 7.041%, refinanced to a shorter, 5-year term with a fixed rate of 3.250% APR, SoFi’s lowest available 5-year fixed rate with AutoPay as of 12/8/17. The calculation also assumes no pre-payment amounts and on-time payments for the duration of the refinanced term. Not all applicants will qualify for the lowest rate as they are reserved for the most creditworthy applicants.
2b. Total member lifetime savings calculation of $2.05B is based on all SoFi borrowers who refinanced their student loans between 8/16/2012 and 10/01/2017, which constitutes 59% of our borrower base as of 10/01/2017. Prior to refinancing, these borrowers had a balance of $7.6B and lifetime payment of $11.2B at a weighted average rate of 6.89%. After refinancing, these borrowers have a lifetime payment of $9.1B based on a weighted average of new rates received across both types (fixed and variable) and respective loan terms with AutoPay. SoFi’s lifetime savings methodology for student loan refinancing assumes 1) members’ interest rates do not change over time (PROJECTIONS FOR VARIABLE RATES ARE STATIC AT THE TIME OF REFINANCING AND DO NOT REFLECT ACTUAL MOVEMENT OF RATES IN THE FUTURE) 2) members make all payments on time 3) members make monthly payments for the full duration of their loan 4) members take advantage of AutoPay, which enables them to lower the APR of their loan by 0.25%. Borrowers refinancing loans into longer terms typically forfeit savings for lower monthly payments.
2c. M.B.A. Degree Lifetime Savings – Lifetime savings calculation of $20,215 is based on all SoFi members with a MBA degree who refinanced their student loans between 8/16/2012 and 6/30/2016. The savings calculation is derived by taking the estimated lifetime cost of existing student loans minus the lifetime cost of SoFi loans upon refinancing for SoFi MBA-degree members who refinanced their student loans. SoFi’s lifetime savings methodology for student loan refinancing assumes 1) members’ interest rates do not change over time (PROJECTIONS FOR VARIABLE RATES ARE STATIC AT THE TIME OF REFINANCING AND DO NOT REFLECT ACTUAL MOVEMENT OF RATES IN THE FUTURE) 2) members make all payments on time 3) members make monthly payments for the full duration of their loan 4) members take advantage of AutoPay, which enables them to lower the APR of their loan by 0.25%. SoFi’s average savings methodology for student loan refinancing excludes refinancings in which 1) members elect SoFi loans with longer maturity than their existing student loans 2) the term length of the member’s original student loan(s) is greater is than 30 years 3) the member did not provide correct or complete information regarding his or her outstanding balance, loan type, APR, or current monthly payment. SoFi excludes the above refinancings in an effort to maximize transparency on how we calculate our average lifetime savings amount and to minimize the risk of member data error skewing the average lifetime savings amount.
M.B.A. Degree Monthly Savings – Monthly savings calculation of $248 is based on all SoFi members with a MBA degree who refinanced their student loans between 8/16/2012 and 6/30/2016. The calculation is derived by averaging the monthly savings of SoFi members with a MBA degree, which is calculated by taking the monthly student loan payments prior to refinancing minus the monthly student loan payments after refinancing with SoFi. SoFi’s monthly savings methodology for student loan refinancing assumes 1) members’ interest rates do not change over time (PROJECTIONS FOR VARIABLE RATES ARE STATIC AT THE TIME OF REFINANCING AND DO NOT REFLECT ACTUAL MOVEMENT OF RATES IN THE FUTURE) 2) members make all payments on time. SoFi’s monthly savings methodology for student loan refinancing excludes refinancings in which 1) members elect a SoFi loan with a shorter term than their prior student loan term(s) 2) the term length of the SoFi member’s prior student loan(s) was shorter than 5 years or longer than 30 years 3) the SoFi member did not provide correct or complete information regarding his or her outstanding balance, loan type, APR, or current monthly payment. SoFi excludes the above refinancings in an effort to maximize transparency on how we calculate our monthly savings amount and to minimize the risk of member data error skewing the monthly savings amount.
2d. Medical M.D. Lifetime Savings – Lifetime savings calculation of $44,282 is based on all SoFi members with a medical school degree (M.D.) who refinanced their student loans between 6/14/2013 and 6/30/2016. The savings calculation is derived by taking the estimated lifetime cost of existing student loans minus the lifetime cost of SoFi loans upon refinancing for SoFi medical school degree (M.D.) members who refinanced their student loans. SoFi’s lifetime savings methodology for student loan refinancing assumes 1) members’ interest rates do not change over time (PROJECTIONS FOR VARIABLE RATES ARE STATIC AT THE TIME OF REFINANCING AND DO NOT REFLECT ACTUAL MOVEMENT OF RATES IN THE FUTURE) 2) members make all payments on time 3) members make monthly payments for the full duration of their loan 4) members take advantage of AutoPay, which enables them to lower the APR of their loan by 0.25%. SoFi’s average savings methodology for student loan refinancing excludes refinancings in which 1) members elect SoFi loans with longer maturity than their existing student loans 2) the term length of the member’s original student loan(s) is greater is than 30 years 3) the member did not provide correct or complete information regarding his or her outstanding balance, loan type, APR, or current monthly payment. SoFi excludes the above refinancings in an effort to maximize transparency on how we calculate our average lifetime savings amount and to minimize the risk of member data error skewing the average lifetime savings amount.
2e. Pharmacist Lifetime Savings – Lifetime savings calculation of $28,660 is based on all SoFi members with a pharmacist degree who refinanced their student loans between 8/28/2013 and 6/30/2016. The savings calculation is derived by taking the estimated lifetime cost of existing student loans minus the lifetime cost of SoFi loans upon refinancing for SoFi pharmacist degree members who refinanced their student loans. SoFi’s lifetime savings methodology for student loan refinancing assumes 1) members’ interest rates do not change over time (PROJECTIONS FOR VARIABLE RATES ARE STATIC AT THE TIME OF REFINANCING AND DO NOT REFLECT ACTUAL MOVEMENT OF RATES IN THE FUTURE) 2) members make all payments on time 3) members make monthly payments for the full duration of their loan 4) members take advantage of AutoPay, which enables them to lower the APR of their loan by 0.25%. SoFi’s average savings methodology for student loan refinancing excludes refinancings in which 1) members elect SoFi loans with longer maturity than their existing student loans 2) the term length of the member’s original student loan(s) is greater is than 30 years 3) the member did not provide correct or complete information regarding his or her outstanding balance, loan type, APR, or current monthly payment. SoFi excludes the above refinancings in an effort to maximize transparency on how we calculate our average lifetime savings amount and to minimize the risk of member data error skewing the average lifetime savings amount.
Pharmacist Monthly Savings – Monthly savings calculation of $408 is based on all SoFi members with a pharmacist degree who refinanced their student loans between 2/28/2014 and 6/30/2016. The calculation is derived by averaging the monthly savings of SoFi members with a pharmacist degree, which is calculated by taking the monthly student loan payments prior to refinancing minus the monthly student loan payments after refinancing with SoFi. SoFi’s monthly savings methodology for student loan refinancing assumes 1) members’ interest rates do not change over time (PROJECTIONS FOR VARIABLE RATES ARE STATIC AT THE TIME OF REFINANCING AND DO NOT REFLECT ACTUAL MOVEMENT OF RATES IN THE FUTURE) 2) members make all payments on time. SoFi’s monthly savings methodology for student loan refinancing excludes refinancings in which 1) members elect a SoFi loan with a shorter term than their prior student loan term(s) 2) the term length of the SoFi member’s prior student loan(s) was shorter than 5 years or longer than 30 years 3) the SoFi member did not provide correct or complete information regarding his or her outstanding balance, loan type, APR, or current monthly payment. SoFi excludes the above refinancings in an effort to maximize transparency on how we calculate our monthly savings amount and to minimize the risk of member data error skewing the monthly savings amount.2f. Monthly savings of $466 is a hypothetical calculation and is not representative of your situation. Your actual savings may vary based on interest rates, balances, remaining repayment term and other factors. The calculation assumes an original loan amount of $96,672 with a 10-year term and a rate of 7.041%, refinanced to a longer, 20-year term with a fixed rate of 5.125% APR, SoFi’s lowest available 20-year fixed rate with AutoPay as of 12/8/17. The calculation also assumes no pre-payment amounts and on-time payments for the duration of the refinanced term. Not all applicants will qualify for the lowest rate as they are reserved for the most creditworthy applicants.
Since her time at SoFi, Joanne Bradford has helped 103,258 student loan refinance members save an estimated $1,756,453,535 over the lifetime of their loans. The savings calculation is derived by taking the estimated lifetime cost of existing student loans minus the lifetime cost of SoFi loans upon refinancing for SoFi members who refinanced their student loans between 8/17/2015 – 2/20/2018. SoFi’s lifetime savings methodology for student loan refinancing assumes; 1) members’ interest rates do not change over time (PROJECTIONS FOR VARIABLE RATES ARE STATIC AT THE TIME OF REFINANCING AND DO NOT REFLECT ACTUAL MOVEMENT OF RATES IN THE FUTURE); 2) members make all payments on time; 3) members make monthly payments for the full duration of their loan; and 4) members take advantage of AutoPay, which enables them to lower the APR of their loan by 0.25%. SoFi’s average savings methodology for student loan refinancing excludes refinancings in which 1) members elect SoFi loans with longer maturity than their existing student loans, as these borrowers typically forfeit lifetime savings for lower monthly payments; 2) the term length of the member’s original student loan(s) is greater is than 30 years; and 3) the member did not provide correct or complete information regarding his or her outstanding balance, loan type, APR, or current monthly payment.
3. If you lose your job through no fault of your own, you may apply for Unemployment Protection. SoFi will suspend your monthly SoFi loan payments and provide job placement assistance during your forbearance period. Interest will continue to accrue and will be added to your principal balance at the end of each forbearance period, to the extent permitted by applicable law. Benefits are offered in three month increments, and capped at 12 months, in aggregate, over the life of the loan. To be eligible for this assistance you must provide proof that you have applied for and are eligible for unemployment compensation, and you must actively work with our Career Advisory Group to look for new employment. If the loan is co-signed the unemployment protection applies where both the borrower and cosigner lose their job and meet conditions.
** SoFi is the leading student loan refinancing provider as of June 2017. The leading student loan refinancing provider is defined as the private lender that has refinanced the most student loan debt of citizens and permanent residents of the U.S., measured by dollar origination volume. Claim based on data reported in presale reports from rating agencies and annual reports of public companies.
7. Fixed rates from 4.250% APR to 8.000% APR (with Autopay). Variable rates starting from 4.330% APR to 7.755% APR (with AutoPay), capped at 9.95% APR. Choose from available terms. If approved for a loan, the fixed or variable interest rate offered will depend on the borrower’s creditworthiness and the term of the loan, and will be within the ranges of rates listed above. Lowest rates are reserved for the best borrowers. For the SoFi variable rate product, the 1-month LIBOR index will adjust monthly and the loan payment will be re-amortized and changed monthly. APRs for variable rate loans may increase after origination if the LIBOR index increases. The SoFi 0.25% Autopay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic, monthly deduction from a savings or checking account. This benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. *To check the rates and terms you qualify for, SoFi conducts a soft credit inquiry. Unlike hard credit inquiries, soft credit inquiries (or soft credit pulls) do not impact your credit score. Soft credit inquiries allow SoFi to show you what rates and terms SoFi can offer you up front. After seeing your rates, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit inquiry. Hard credit inquiries (or hard credit pulls) are required for SoFi to be able to issue you a loan. In addition to requiring your explicit permission, these credit pulls may impact your credit score.
8. Explore federal loans and compare to ensure you understand the terms and features. Federal Parent PLUS loans offer graduated repayment plans and deferment benefits, which other student loans are not required to provide. Federal Parent PLUS loans have origination fees and the fixed interest rate for Parent PLUS Loans made from July 1, 2015 through June 30, 2016 is 6.31% per annum. The SoFi Parent Loan is an immediate repayment loan and there is no deferment while your child or dependent is in school.
The interest rate for Direct PLUS Loans first disbursed on or after July 1, 2017, and before July 1, 2018, is 7%. The origination fee (“Loan Fee”) for Direct PLUS Loans disbursed on or after October 1, 2016, and before October 1, 2017, is 4.276%. More information can be found at https://www.studentaid.ed.gov/sa/types/loans/plus.
SoFi Parent Loan Member Lifetime Savings – The savings calculation of $3,637 compares the estimated lifetime cost of a SoFi Parent Loan with the estimated lifetime cost of a Federal Direct Parent PLUS loan. The SoFi Parent Loan lifetime cost estimation uses an APR of 5.849%, loan amount of $28,084, and a 10 year loan term. The Federal Direct Parent PLUS lifetime cost estimation uses an interest rate of 7%, origination fee (“Loan Fee”) of 4.276%, loan amount of $28,084, and a 10 year loan term. The lifetime savings methodology for SoFi Parent Loans assumes 1) members make monthly payments on time for the full duration of their SoFi Parent Loan; and 2) members take advantage of AutoPay, which enables them to lower the APR of their loan by 0.25%. Actual savings may vary depending on your unique situation and the interest rate you qualify for. Federal Direct Parent PLUS Loan rate and fee information can be found online at www.studentaid.ed.gov/sa/types/loans/plus.
12. Fixed rates from 3.250% APR to 6.750% APR (with AutoPay). Variable rates from 2.540% APR to 7.130% APR (with AutoPay). Interest rates on variable rate loans are capped at either 8.95% or 9.95% depending on term of loan. See APR examples and terms. Lowest variable rate of 2.540% APR assumes current 1 month LIBOR rate of 1.88% plus 1.26% margin minus 0.25% autopay discount. Not all borrowers receive the lowest rate. If approved for a loan, the fixed or variable interest rate offered will depend on your creditworthiness, and the term of the loan and other factors, and will be within the ranges of rates listed above. For the SoFi variable rate loan, the 1-month LIBOR index will adjust monthly and the loan payment will be re-amortized and may change monthly. APRs for variable rate loans may increase after origination if the LIBOR index increases. The SoFi 0.25% AutoPay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. Unlike Federal Parent PLUS loans, the SoFi Parent Loan is not discharged in the event of death or permanent disability of the borrower or the student on whose behalf the loan is taken out.
1. Fixed rates from 3.500% APR to 7.750% APR (with AutoPay). Variable rates from 2.790% APR to 8.005% APR (with AutoPay). Interest rates on variable rate loans are capped at either 8.95% or 9.95% depending on term of loan. See APR examples and terms. Lowest variable rate of 2.790% APR assumes current 1 month LIBOR rate of 1.88% plus 2.075% margin minus 0.25% ACH discount. Not all borrowers receive the lowest rate. If approved for a loan, the fixed or variable interest rate offered will depend on your creditworthiness, and the term of the loan and other factors, and will be within the ranges of rates listed above. For the SoFi variable rate loan, the 1-month LIBOR index will adjust monthly and the loan payment will be re-amortized and may change monthly. APRs for variable rate loans may increase after origination if the LIBOR index increases. Not all amounts available in all states, see Medical and Dental Resident Student Loan Refinancing eligibility details. Notice: this loan type will likely result in negative amortization during the residency period; read more at SoFi.com/legal#medical-resident-slr-100. The SoFi 0.25% AutoPay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. The discount will not reduce the monthly payment; instead, the discount is applied to the principal to help pay the loan down faster.
The minimum monthly payment of $100 while in the Residency Period may not pay all of the interest due each month, which will likely result in negative amortization and a larger principal balance when you enter the Full Repayment Period. Dental residents and fellows are unable to receive additional tuition liabilities for the duration of their Residency Period; see SoFi.com/eligibility for details. SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers such as Income Based Repayment or Income Contingent Repayment or PAYE or REPAYE. In addition, federal student loans offer deferment and forbearance options that are not available for SoFi Lending Corp. Medical or Dental Resident Refinance Loan borrowers.
4. If you lose your job through no fault of your own, you may apply for Unemployment Protection. SoFi will suspend your monthly SoFi loan payments and provide job placement assistance during your forbearance period. Interest will continue to accrue and will be added to your principal balance at the end of each forbearance period, to the extent permitted by applicable law. Benefits are offered in three month increments, and capped at 12 months, in aggregate, over the life of the loan. To be eligible for this assistance you must provide proof that you have applied for and are eligible for unemployment compensation, and you must actively work with our Career Advisory Group to look for new employment.
5. Fixed rates from 5.490% APR to 13.490% APR (with AutoPay). Variable rates from 5.365% APR to 13.365% APR (with AutoPay). SoFi rate ranges are current as of April 1, 2018 and are subject to change without notice. Not all rates and amounts available in all states. See Personal Loan eligibility details. Not all applicants qualify for the lowest rate. If approved for a loan, to qualify for the lowest rate, you must have a responsible financial history and meet other conditions. Your actual rate will be within the range of rates listed above and will depend on a variety of factors, including evaluation of your credit worthiness, years of professional experience, income and other factors. See APR examples and terms. Interest rates on variable rate loans are capped at 14.95%. Lowest variable rate of 5.365% APR assumes current 1-month LIBOR rate of 1.88% plus 3.735% margin minus 0.25% AutoPay discount. For the SoFi variable rate loan, the 1-month LIBOR index will adjust monthly and the loan payment will be re-amortized and may change monthly. APRs for variable rate loans may increase after origination if the LIBOR index increases. The SoFi 0.25% AutoPay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account.
To check the rates and terms you qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull.6. Rate ranges for Lending Club and Discover are based on data compiled in February 2018 from company websites. Average credit card rates as of 2/9/18 from CreditCards.com for all categories of cards.
Your results will vary and an increase is not guaranteed. 82% of people who used their SoFi Personal Loan to consolidate $10,000+ of credit card debt saw their FICO scores increase an average of 31 points within 2 months from funding date. Average FICO score increases are based on funded members from January through October 2017. Increase was computed by comparing reported Version 8 FICO scores at the time of application against the same scores two months later. SoFi is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act.
SoFi Personal Loan borrowers reduced their interest rate by 44% on average, based on a survey of 1823 SoFi borrowers who took out a Personal Loan to pay off credit cards between January and February 2018.
Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website on credit.
Calculations based on a 5-year SoFi Personal Loan with lowest available fixed rate with AutoPay of 7.075% APR. Credit card calculation assumes 5-year repayment of $35,000 credit card balance with interest rate of 15.99% APR. Both Calculations assume 60 total monthly payments, and no pre-payment amounts.
Every 6 Minutes: Claim based on 47,159 SoFi Personal Loan borrowers who used the loan to pay off credit card debt between 1/1/17 and 9/30/17.
Recommend SoFi: Based on a survey of 1,890 SoFi members from 02/08/2018 to 02/14/2018 who opened and/or funded an account within 6 months of the survey date, 98% of participants would recommend SoFi to a friend. This should not be confused with SoFi’s Net Promoter Score®, which is a separate survey that uses a different scoring model.
PRESCREEN AND OPT-OUT NOTICE: You received this “prescreened” offer of credit because we used information from your credit report to determine that you satisfied certain criteria. This offer is not guaranteed if you do not meet our additional underwriting criteria. However, if you do not want to receive prescreened offers of credit from us and other companies, you may exercise the right to not be included on prescreened lists by calling the consumer reporting agencies toll-free at 1-888-5-OPTOUT (1-888-5-8688); or writing to: Equifax Options, P.O. Box 740123, Atlanta, GA 30374-0123, TransUnion, Opt Out Request, P.O. Box 505, Woodlyn, PA 19094-0505, Experian Consumer Opt Out, P.O. Box 919, Allen, TX 75013.
Performance Disclosures: Hypothetical Future Outcomes
Additional Explanatory Notes and Disclosures Related to Performance: General:
SoFi Wealth, LLC (“SoFi Wealth”) is an SEC registered Investment Adviser. Information pertaining to SoFi Wealth’s advisory operations, services, and fees is set forth in SoFi Wealth’s current Form ADV Part 2 (Brochure), a copy of which is available upon request and at www.adviserinfo.sec.gov.
The material in this presentation is based on information from a variety of sources we consider reliable, but we do not represent that the information is accurate or complete. The material provided herein is for informational purposes only. SoFi Wealth does not provide tax advice to its clients. All investors are strongly urged to consult with their tax advisors regarding any potential investment.
This content is not intended to be used as a general guide to investing, or as a source of any specific investment recommendations, and makes no implied or express recommendations concerning the manner in which any client’s account should or would be handled, as appropriate strategies depend upon the client’s specific circumstances and investment objectives. The presentation of performance is neither an offer to sell nor a solicitation of an offer to buy any securities.
SoFi Indices:
SoFi Wealth constructed the indices presented using a series of widely used total return asset class-specific indexes that follow a set of rules of ownership that are typically held constant regardless of market conditions and that are generally representative of holdings currently maintained in the SoFi Wealth model portfolios. An important characteristic of an index fund is that its rules of ownership are not based on a forecast of short-term events. Therefore, an investment strategy that is limited to the buying and rebalancing of a portfolio of index funds is often referred to as passive investing, as opposed to active investing. Simulated index data is based on a combination of performance of widely used total return asset class-specific indexes and subjective judgement taking into account the current economic environment.
Performance results assume the reinvestment of dividends and capital gains and monthly rebalancing at the end of each month. The monthly return is calculated with the assumption that the SoFi index is perfectly in balance at the end of each month. In actual SoFi portfolios, rebalancing occurs at no set time, and such actions are dependent on both market conditions and individual client liquidity inflows and outflows, along with the cost impact of such transactions on the overall portfolio.
The performance of the SoFi indices excludes the impact of fees. ETF’s used in an investment portfolio generally do not minimize tax liabilities from short and long-term capital gains and any potential resulting tax liability is not deducted from performance results. SoFi Wealth does not charge transaction fees, but management fees and other custody related expenses may apply and are not reflected, which reduce returns.
The underlying holdings of the portfolio are not federally or FDIC-insured and are not deposits or obligations of, or guaranteed by, any financial institution. Investing in securities involves investment risks including possible loss of principal and fluctuation in value.
No taxes are taken into account—chart assumes the account used to invest is a taxable account that is an ongoing concern throughout the period presented.
Monte Carlo Simulation:
The hypothetical illustrations rely upon a Monte Carlo simulation which provides thousands of future states of the given investment strategy. The inputs to this simulation are the forecasted expected return of each investment strategy along with the anticipated standard deviation of the investment strategy. The expected return assumptions are based on SoFi Wealth’s Investment Committee’s view on the macroeconomic environment, historical returns, and forward-looking views and assumptions. Expected standard deviation is approximated by analyzing the backtest of the hypothetical returns of the current allocations in each given investment strategy over the most recent 10-year period, and any forward-looking views and assumptions. Allocations are assumed constant over the course of the entire simulation and assumed to be rebalanced on a monthly basis. No trading costs or taxes are incorporated into the simulation.
These assumptions materially impact the simulations and may change from time to time at the discretion of the Investment Committee. No assurances can be made that the assumptions will prove to be accurate. There are many variables that can affect an investment performance forecast. The most volatile variable is the expected investment returns, which, historically, vary on a daily basis. Even with this knowledge, most financial projections use constant investment rates over the period of the analysis. The use of these averages is used as a start for the planning process, since the actual values are unknown. Unfortunately, however, this type of analysis illustrates only one outcome, thereby requiring that simulation be used to imitate real-life situations. In order to produce meaningful results, these simulations are processed many times. By varying the rates of return to simulate the fluctuations that can be experienced in the marketplace, a more realistic reflection of the anticipated ups and downs of the investment environment is presented.
These multiple simulations produce a range of results. These results are then analyzed and probabilities are associated with the outcome. Due to the random nature in which the simulations are generated and the regular updating of historical asset class data, the results may vary with each use and over time, even if the underlying assumptions are not changed.
Important: The projections or other information generated by Monte Carlo simulations regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results and are not guarantees of future results. An investment cannot be made directly into a Monte Carlo simulation. There are limitations in using a Monte Carlo simulation, including the analysis is only as good as the assumptions, and despite modeling for a range of uncertainties in the future, it does not eliminate uncertainty.
The results can be presented various ways, but the ultimate goal of a Monte Carlo simulation is to educate and communicate about the uncertainty of the future, so you can make educated decisions about your specific situations.
Key Assumptions:
| Strategy | Return | Volatility |
|---|---|---|
| Aggressive | 6.42% | 15.46% |
| Moderately Aggressive | 5.66% | 12.49% |
| Moderate | 4.90% | 9.62% |
| Moderately Conservative | 3.58% | 5.41% |
| Conservative | 2.40% | 3.58% |
Risks:
All investments are subject to risk, which should be considered prior to making and investment decisions.
Exchange Traded Funds (ETFs)
ETFs are open-end investment companies, unit investment trusts or depository receipts that hold portfolios of stocks, bonds, commodities and/or currencies that commonly are designed, before expenses, to closely track the performance and dividend yield of (i) a specific index, (ii) a basket of securities, commodities or currencies, or (iii) a particular commodity or currency. The types of indices commonly sought to be replicated by ETFs most often include domestic equity indices, fixed income indices, sector indices and foreign or international indices. ETF shares are traded on exchanges and are traded and priced throughout the trading day. ETFs permit an investor to purchase a selling interest in a portfolio of stocks throughout the trading day. Because ETFs trade on an exchange, they may not trade at NAV. Sometimes, the prices of ETFs may vary significantly from the NAVs of the ETFs’ underlying securities. Additionally, if an investor decides to redeem ETF shares rather than selling them on a secondary market, the investor may receive the underlying securities which must be sold in order to obtain cash.
Equity:
Equity securities include common stocks, preferred stocks, convertible securities and mutual funds that invest in these securities. Equity markets can be volatile. Stock prices rise and fall based on changes in an individual company’s financial condition and overall market conditions. Stock prices can decline significantly in response to adverse market conditions, company-specific events, and other domestic and international political and economic developments.
Fixed Income:
Fixed income securities include corporate bonds, municipal bonds, other debt instruments and mutual funds that invest in these securities. Issuers generally pay a fixed, variable, or floating interest rate, and must repay the amount borrowed at maturity. Some debt instruments, such as zero-coupon bonds, do not pay current interest, but are sold at a discount from their face value. Prices of fixed income securities generally decline when interest rates rise, and rise when interest rates fall. Longer-term debt and zero-coupon bonds are more sensitive to interest rate changes than debt instruments with shorter maturities.
Fixed income securities are also subject to credit risk, which is the chance that an issuer will fail to pay interest or principal on time. Many fixed income securities receive credit ratings from Nationally Recognized Statistical Rating Organizations (NRSROs). These NRSROs assign ratings to securities by assessing the likelihood of issuer default. Changes in the credit strength of an issuer may reduce the credit rating of its debt investments and may affect their value. High-quality debt instruments are rated at least AA or its equivalent by any NRSRO or are unrated debt instruments of equivalent quality. Issuers of high-grade debt instruments are considered to have a very strong capacity to pay principal and interest. Investment grade debt instruments are rated at least Baa or its equivalent by any NRSRO or are unrated debt instruments of equivalent quality. Baa rated securities are considered to have adequate capacity to pay principal and interest, although they also have speculative characteristics. Lower rated debt securities are more likely to be adversely affected by changes in economic conditions than higher rated debt securities.
U.S. Government securities include securities issued or guaranteed by the U.S. Treasury; issued by a U.S. Government agency; or issued by a Government-Sponsored Enterprise (GSE). U.S. Treasury securities include direct obligations of the U.S. Treasury, (i.e., Treasury bills, notes and bonds). U.S. Government agency bonds are backed by the full faith and credit of the U.S. Government or guaranteed by the U.S. Treasury (such as securities of the Government National Mortgage Association (GNMA or Ginnie Mae)). GSE bonds are issued by certain federally-chartered but privately-owned corporations, but are neither direct obligations of, nor backed by the full faith and credit of, the U.S. Government. GSE bonds include: bonds issued by Federal Home Loan Banks (FHLB), Federal Farm Credit Banks (FCS), Federal Home Loan Mortgage Corporation (FHLMC or Freddie Mac) and the Federal National Mortgage Association (FNMA or Fannie Mae).
International Securities:
International investments involve additional risks you should be aware of, which include differences in financial accounting standards, currency fluctuations, political instability, foreign taxes and regulations, news that can trigger volatile conditions, and the potential for illiquid markets. Small cap companies in these markets may react with greater volatility in reaction to activities in those markets. It is more difficult to obtain reliable information about some foreign securities. The costs of investing in some foreign markets may be higher than investing in domestic markets. Investments in foreign securities also are subject to currency fluctuations.
Definitions:
Asset Class
Asset Class is a standard term that broadly defines a category of investments. The three basic asset classes are Cash, Bonds (fixed income), and Stocks (equity). Bonds and Stocks are often further subdivided into more narrowly defined classes. Some of the most common asset classes are defined below.
Cash and Cash Alternatives
Cash typically includes bank accounts or certificates of deposit, which are insured by the Federal Deposit Insurance Corporation up to a limit per account. Cash Alternatives typically include money market securities, U.S. Treasury Bills, and other investments that are readily convertible to cash, have a stable market value, and a very short-term maturity. U.S. Treasury Bills are backed by the full faith and credit of the U.S. Government and, when held to maturity, provide safety of principal. (See the “Risks Inherent in Investing” section in this Important Disclosure Information for a summary of the risks associated with investing in cash alternatives.)
Bonds
Bonds are either domestic (U.S.) or global debt securities issued by either private corporations or governments. (See the “Risks Inherent in Investing” section in this Important Disclosure Information for a summary of the risks associated with investing in bonds. Bonds are also called “fixed income securities.”)
Domestic government bonds are backed by the full faith and credit of the U.S. Government and have superior liquidity and, when held to maturity, safety of principal. Domestic corporate bonds carry the credit risk of their issuers and thus usually offer additional yield. Domestic government and corporate bonds can be sub-divided based upon their term to maturity. Short-term bonds have an approximate term to maturity of 1 to 5 years; intermediate-term bonds have an approximate term to maturity of 5 to 10 years; and, long-term bonds have an approximate term to maturity greater than 10 years.
Stocks
Stocks are equity securities of domestic and foreign corporations. (See the “Risks Inherent in Investing” section in this Important Disclosure Information for a summary of the risks associated with investing in stocks.)
Domestic stocks are equity securities of U.S. corporations. Domestic stocks are often sub-divided based upon the market capitalization of the company (the market value of the company’s stock). “Large cap” stocks are from larger companies, “mid cap” from the middle range of companies, and “small cap” from smaller, perhaps newer, companies. Generally, small cap stocks experience greater market volatility than stocks of companies with larger capitalization. Small cap stocks are generally those from companies whose capitalization is less than $500 million, mid cap stocks those between $500 million and $5 billion, and large cap over $5 billion.
Large cap, mid cap and small cap may be further sub-divided into “growth” and “value” categories. Growth companies are those with an orientation towards growth, often characterized by commonly used metrics such as higher price-to-book and price-to-earnings ratios. Analogously, value companies are those with an orientation towards value, often characterized by commonly used metrics such as lower price-to-book and price-to-earnings ratios.
International stocks are equity securities from foreign corporations. International stocks are often sub-divided into those from “developed” countries and those from “emerging markets.” The emerging markets are in less developed countries with emerging economies that may be characterized by lower income per capita, less developed infrastructure and nascent capital markets. These “emerging markets” usually are less economically and politically stable than the “developed markets.”
Additional Explanatory Notes and Disclosures Related to Performance:
General:
SoFi Wealth LLC (“SoFi Wealth”) is an SEC registered Investment Adviser. Information pertaining to SoFi Wealth’s advisory operations, services, and fees is set forth in SoFi Wealth’s current Form ADV Part 2 (Brochure), a copy of which is available upon request and at www.adviserinfo.sec.gov.
The material in this presentation is based on information from a variety of sources we consider reliable, but we do not represent that the information is accurate or complete. The material provided herein is for informational purposes only.
SoFi Wealth does not provide tax advice to its clients. All investors are strongly urged to consult with their tax advisors regarding any potential investment.
This content is not intended to be used as a general guide to investing, or as a source of any specific investment recommendations, and makes no implied or express recommendations concerning the manner in which any client’s account should or would be handled, as appropriate strategies depend upon the client’s specific circumstances and investment objectives.
The presentation of performance is neither an offer to sell nor a solicitation of an offer to buy any securities.
Backtested Performance:
Backtested performance is NOT an indicator of future actual results. The results reflect performance of a strategy not offered to investors and do NOT represent returns that any investor actually attained. Backtested results are calculated by the retroactive application of a model constructed on the basis of historical data and based on assumptions integral to the model which may or may not be testable and are subject to losses.
Backtested performance is developed with the benefit of hindsight and has inherent limitations. Specifically, backtested results do not reflect actual trading or the effect of material economic and market factors on the decision-making process. Since trades have not actually been executed, results may have under- or over-compensated for the impact, if any, of certain market factors, such as lack of liquidity, and may not reflect the impact that certain economic or market factors may have had on the decision-making process. Further, backtesting allows the security selection methodology to be adjusted until past returns are maximized. Actual performance may differ significantly from backtested performance. Future returns are not guaranteed and a loss of principal may occur.
Backtested results are adjusted to reflect the reinvestment of dividends and other income to rebalance the portfolio and are presented net-of-fees, as described below. No cash balance or cash flow is included in the calculation. Results assume that SoFi Wealth would have been able to purchase the securities recommended by the model and the markets were sufficiently liquid to permit all trading. Changes in these assumptions may have a material impact on the backtested returns presented. Certain assumptions have been made for modeling purposes and are unlikely to be realized. No representations and warranties are made as to the reasonableness of the assumptions. This information is provided for illustrative purposes only.
SoFi Indices:
SoFi Wealth constructed the indices presented using a series of ETF’s that follow a set of rules of ownership that are held constant regardless of market conditions and that mirror holdings currently maintained in the SoFi Wealth model portfolios. An important characteristic of an index fund is that its rules of ownership are not based on a forecast of short-term events. Therefore, an investment strategy that is limited to the buying and rebalancing of a portfolio of index funds is often referred to as passive investing, as opposed to active investing. Simulated index data is based on the performance of live ETF’s.
Performance results assume the reinvestment of dividends and capital gains and monthly rebalancing at the end of each month. The monthly return is calculated with the assumption that the SoFi index is perfectly in balance at the end of each month. In actual SoFi portfolios, rebalancing occurs at no set time, and such actions are dependent on both market conditions and individual client liquidity inflows and outflows, along with the cost impact of such transactions on the overall portfolio.
The performance of the SoFi indices reflects and is net of the effect of SoFi’s annual investment management fee of 0.25%, billed quarterly. Actual SoFi Wealth advisory fees may be different than that illustrated. The fee utilized is the highest fee SoFi Wealth charges as of the date of the chart. Depending on the amount of your assets under management, your investment management fee may be less. Since we accept no fees from investment product firms, SoFi uses index fund data based on net asset value returns, which are net of the ETF expenses only. Expenses of the underlying holdings were estimated using a weighted average of the expense ratios for the ETF’s utilized in the SoFi Wealth model portfolios at the date of the chart. Although ETF’s may minimize tax liabilities from short and long-term capital gains, any resulting tax liability is not deducted from performance results. SoFi Wealth does not charge transaction fees, but other custody related expenses may apply and are not reflected, which reduce returns.
All of the securities used in the SoFi indices were not available during the time period presented.
No taxes are taken into account—chart assumes the account used to invest is a nontaxable account that is an ongoing concern throughout the period presented.
Representative indexing of SoFi Wealth’s conservative strategy underperforms the associated benchmark due to short duration bias and concentration of fixed income.
Benchmarks
Benchmarks have been constructed using combinations of MSCI ACWI and the Bloomberg Barclays Global Aggregate (Dollar Hedged”) Total Return index, blended to represent the weighting of equity and fixed income allocations maintained in the associated SoFi Index. Benchmark construction is intended to capture the approximate equivalent risk between the benchmark and the associated SoFi index. References to market or composite indices, benchmarks or other measures of relative market performance over a specified period of time are provided for your information only. Reference to an index does not imply that we believe a SoFi Wealth portfolio will achieve returns, volatility or other results similar to the index. The composition of a benchmark may not reflect the manner in which a SoFi Index is constructed in relation to expected or achieved returns, investment holdings, portfolio guidelines, restrictions, sectors, correlations, concentrations, volatility or tracking error targets, all of which are subject to change over time.
Performance results assume the reinvestment of dividends and capital gains and monthly rebalancing at the end of each month. The monthly return is calculated with the assumption that the benchmark is perfectly in balance at the end of each month. The performance of the benchmark reflects and is net of the effect of an assumed “average mutual fund fee” of 79 basis points, which was expressed in the Morningstar 2015 Fee Study. Although index mutual funds minimize tax liabilities from short and long-term capital gains, any resulting tax liability is not deducted from performance results. Performance results also do not reflect transaction fees and other expenses, which reduce returns. Performance results assumes the reinvestment of dividends, interest and other earnings and are time-weighted based on monthly portfolio valuations for all periods.
The volatility of a benchmark index may be materially different from the individual performance attained by a specific investor. In addition, strategy holdings may differ significantly from the securities that comprise the index. The index has not been selected to represent an appropriate benchmark with which to compare an investor’s performance, but rather is disclosed to allow for comparison of the SoFi Indices’ performance to that of certain well-known and widely recognized index. You cannot invest directly in an index.
Key Assumptions:
| Portfolio Weights | Aggresive | Moderately Aggressive | Moderate | Moderately Conservative | Conservative |
|---|---|---|---|---|---|
| US Equity | 47% | 38% | 28% | 14% | |
| Developed Ex US Equity | 40% | 32% | 24% | 12% | |
| EM Equity | 13% | 10% | 8% | 4% | |
| Short-Term US Aggregate Bond | 10% | 15% | 25% | ||
| US Aggregate Bond | 15% | 20% | 40% | 60% | |
| EM Debt (USD) | 5% | 5% | 10% | 5% | |
| Short Term High Yield | 5% | 5% | 10% |
Risks:
All investments are subject to risk, which should be considered prior to making and investment decisions.
Exchange Traded Funds (ETFs)
ETFs are open-end investment companies, unit investment trusts or depository receipts that hold portfolios of stocks, commodities and/or currencies that commonly are designed, before expenses, to closely track the performance and dividend yield of (i) a specific index, (ii) a basket of securities, commodities or currencies, or (iii) a particular commodity or currency. The types of indices commonly sought to be replicated by ETFs most often include domestic equity indices, fixed income indices, sector indices and foreign or international indices. ETF shares are traded on exchanges and are traded and priced throughout the trading day. ETFs permit an investor to purchase a selling interest in a portfolio of stocks throughout the trading day. Because ETFs trade on an exchange, they may not trade at NAV. Sometimes, the prices of ETFs may vary significantly from the NAVs of the ETFs’ underlying securities. Additionally, if an investor decides to redeem ETF shares rather than selling them on a secondary market, the investor may receive the underlying securities which must be sold in order to obtain cash.
Equity
Equity securities include common stocks, preferred stocks, convertible securities and mutual funds that invest in these securities. Equity markets can be volatile. Stock prices rise and fall based on changes in an individual company’s financial condition and overall market conditions. Stock prices can decline significantly in response to adverse market conditions, company-specific events, and other domestic and international political and economic developments.
Fixed Income
Fixed income securities include corporate bonds, municipal bonds, other debt instruments and mutual funds that invest in these securities. Issuers generally pay a fixed, variable, or floating interest rate, and must repay the amount borrowed at maturity. Some debt instruments, such as zero-coupon bonds, do not pay current interest, but are sold at a discount from their face value. Prices of fixed income securities generally decline when interest rates rise, and rise when interest rates fall. Longer-term debt and zero-coupon bonds are more sensitive to interest rate changes than debt instruments with shorter maturities. Fixed income securities are also subject to credit risk, which is the chance that an issuer will fail to pay interest or principal on time. Many fixed income securities receive credit ratings from Nationally Recognized Statistical Rating Organizations (NRSROs). These NRSROs assign ratings to securities by assessing the likelihood of issuer default. Changes in the credit strength of an issuer may reduce the credit rating of its debt investments and may affect their value. High-quality debt instruments are rated at least AA or its equivalent by any NRSRO or are unrated debt instruments of equivalent quality. Issuers of high-grade debt instruments are considered to have a very strong capacity to pay principal and interest. Investment grade debt instruments are rated at least Baa or its equivalent by any NRSRO or are unrated debt instruments of equivalent quality. Baa rated securities are considered to have adequate capacity to pay principal and interest, although they also have speculative characteristics. Lower rated debt securities are more likely to be adversely affected by changes in economic conditions than higher rated debt securities.
U.S. Government Securities
U.S. Government securities include securities issued or guaranteed by the U.S. Treasury; issued by a U.S. Government agency; or issued by a Government-Sponsored Enterprise (GSE). U.S. Treasury securities include direct obligations of the U.S. Treasury, (i.e., Treasury bills, notes and bonds). U.S. Government agency bonds are backed by the full faith and credit of the U.S. Government or guaranteed by the U.S. Treasury (such as securities of the Government National Mortgage Association (GNMA or Ginnie Mae)). GSE bonds are issued by certain federally-chartered but privately-owned corporations, but are neither direct obligations of, nor backed by the full faith and credit of, the U.S. Government. GSE bonds include: bonds issued by Federal Home Loan Banks (FHLB), Federal Farm Credit Banks (FCS), Federal Home Loan Mortgage Corporation (FHLMC or Freddie Mac) and the Federal National Mortgage Association (FNMA or Fannie Mae).
International Securities
International investments involve additional risks you should be aware of, which include differences in financial accounting standards, currency fluctuations, political instability, foreign taxes and regulations, news that can trigger volatile conditions, and the potential for illiquid markets. Small cap companies in these markets may react with greater volatility in reaction to activities in those markets. It is more difficult to obtain reliable information about some foreign securities. The costs of investing in some foreign markets may be higher than investing in domestic markets. Investments in foreign securities also are subject to currency fluctuations.
Definitions:
Asset Class
Asset Class is a standard term that broadly defines a category of investments. The three basic asset classes are Cash, Bonds (fixed income), and Stocks (equity). Bonds and Stocks are often further subdivided into more narrowly defined classes. Some of the most common asset classes are defined below.
Cash and Cash Alternatives
Cash typically includes bank accounts or certificates of deposit, which are insured by the Federal Deposit Insurance Corporation up to a limit per account. Cash Alternatives typically include money market securities, U.S. treasury bills, and other investments that are readily convertible to cash, have a stable market value, and a very short-term maturity. U.S. Treasury bills are backed by the full faith and credit of the U.S. Government and, when held to maturity, provide safety of principal. (See the “Risks Inherent in Investing” section in this Important Disclosure Information for a summary of the risks associated with investing in cash alternatives.)
Bonds
Bonds are either domestic (U.S.) or global debt securities issued by either private corporations or governments. (See the “Risks Inherent in Investing” section in this Important Disclosure Information for a summary of the risks associated with investing in bonds. Bonds are also called “fixed income securities.”) Domestic government bonds are backed by the full faith and credit of the U.S. Government and have superior liquidity and, when held to maturity, safety of principal. Domestic corporate bonds carry the credit risk of their issuers and thus usually offer additional yield. Domestic government and corporate bonds can be sub-divided based upon their term to maturity. Short-term bonds have an approximate term to maturity of 1 to 5 years; intermediate-term bonds have an approximate term to maturity of 5 to 10 years; and, long-term bonds have an approximate term to maturity greater than 10 years.
Stocks
Stocks are equity securities of domestic and foreign corporations. (See the “Risks Inherent in Investing” section in this Important Disclosure Information for a summary of the risks associated with investing in stocks.) Domestic stocks are equity securities of U.S. corporations. Domestic stocks are often
sub-divided based upon the market capitalization of the company (the market value of the company’s stock). “Large cap” stocks are from larger companies, “mid cap” from the middle range of companies, and “small cap” from smaller, perhaps newer, companies. Generally, small cap stocks experience greater market volatility than stocks of companies with larger capitalization. Small cap stocks are generally those from companies whose capitalization is less than $500 million, mid cap stocks those between $500 million and $5 billion, and large cap over $5 billion.
Large cap, mid cap and small cap may be further sub-divided into “growth” and “value” categories. Growth companies are those with an orientation towards growth, often characterized by commonly used metrics such as higher price-to-book and price-to-earnings ratios. Analogously, value companies are those with an orientation towards value, often characterized by commonly used metrics such as lower price-to-book and price-to-earnings ratios.
International stocks are equity securities from foreign corporations. International stocks are often sub-divided into those from “developed” countries and those from “emerging markets.” The emerging markets are in less developed countries with emerging economies that may be characterized by lower income per capita, less developed infrastructure and nascent capital markets. These “emerging markets” usually are less economically and politically stable than the “developed markets.”
Existing SoFi members with a SoFi Mortgage, Personal Loan, or Student Loan who take out a new loan of a different product type will receive the 0.125% Member Rate Discount on that new loan. To be eligible for the Member Rate Discount Program, members must meet the following criteria: 1) The member must be in good standing with their current and prior SoFi loans; 2) the member has never been 60 or more days past due on a current and prior SoFi loan; 3) the member has not been 30 or more days past due more than once on a current and prior SoFi loan; and 4) the member was never in forbearance on a SoFi loan. The Member Rate Discount must be for a different type of loan, thus it does not apply to another loan of the same type. For instance, an existing SoFi Personal Loan borrower is not eligible to receive the Member Rate Discount on a second SoFi Personal Loan, but is eligible to receive the Member Rate Discount on a SoFi Mortgage, Mortgage Refinance, Student Loan Refinance, Parent PLUS Student Loan Refinance, or a Parent In-School Loan.SoFi Wealth members with no SoFi loan accounts will also receive the Member Rate Discount on a new loan if the member’s existing SoFi Wealth account meets minimum balance criteria described below at the time of origination of the new loan. SoFi Wealth members are eligible to receive the Member Rate Discount on a Mortgage Loan if they have and maintain a minimum balance of $50,000 in their SoFi Wealth account. SoFi Wealth members are eligible to receive the Member Rate Discount on a Personal and Student Loan if they have and maintain a minimum balance of $10,000 in their SoFi Wealth account.The SoFi Wealth platform is operated and maintained by SoFi Wealth LLC, an SEC Registered Investment Advisor. Brokerage services are provided to clients of SoFi Wealth LLC by SoFi Securities LLC, an affiliated broker-dealer registered with the Securities and Exchange Commission and a member of FINRA/SIPC. Investments are not FDIC Insured, have No Guarantee and May Lose Value. Investing in securities involves risks, and there is always the potential of losing money when you invest in securities. Clearing and custody of all securities are provided by APEX Clearing Corporation.Standards and Limitations 7/1 Adjustable Rate Mortgage (ARM) loan products will receive the Member Rate Discount for the duration of the fixed period, i.e. 7 years only. Limit one Member Rate Discount per loan. Member Rate Discount cannot be combined with other rate discounts, with the exception of the 0.25% AutoPay rate discount. SoFi reserves the right to change or terminate the Member Rate Discount Program to unenrolled participants at any time with or without notice.
Member Rate Discount Program average savings of $659 for SoFi Student Loans is based on all SoFi members who refinanced their student loans between 1/1/2016 and 12/31/2016. The savings calculation is derived by taking the lifetime cost of SoFi loans minus the lifetime cost of SoFi loans assuming a 0.125% discount. The savings calculation assumes an average rate of 4.846% APR, an average term of 137.43 months, and an average balance $77,495. SoFi’s lifetime savings methodology for student loan refinancing assumes 1) members’ interest rates do not change over time (PROJECTIONS FOR VARIABLE RATES ARE STATIC AT THE TIME OF REFINANCING AND DO NOT REFLECT ACTUAL MOVEMENT OF RATES IN THE FUTURE) 2) members make all payments on time 3) members make monthly payments for the full duration of their loan 4) members take advantage of AutoPay, which enables them to lower the APR of their loan by 0.25%.
SoFi’s Referral Program (“Program”) is open to all individuals who reside outside of Michigan or Vermont. If the cumulative welcome and referral bonus rewards paid to an individual in one calendar year exceed $599, then Form W-9 may be required to be completed prior to funds disbursement. You are responsible for any applicable federal, state, or local taxes associated with receiving the bonus offer; consult your tax advisor to determine applicable tax consequences. Any payments or items not claimed due to missing or incorrect shipping, tax, or bank account information may be subject to forfeit after 180 days of issuance. SoFi reserves the right to change or eliminate the Program at any time with or without notice. Additional terms and conditions apply; see SoFi.com/Refer-a-Friend for Official Rules.
Lifetime referral bonus payment calculation is based on the total funds paid or pending payment to SoFi referral members who earned one or more welcome bonuses through the referral program between 12/10/14 – 1/30/2017, regardless of whether the funds have been disbursed.
The member lifetime savings calculation of $120,509,738 is for SoFi referred members who had their student or parent plus loans refinanced between 7/17/2013 – 1/27/2017. SoFi’s lifetime savings methodology for student loan refinancing assumes 1) members’ interest rates do not change over time (PROJECTIONS FOR VARIABLE RATES ARE STATIC AT THE TIME OF REFINANCING AND DO NOT REFLECT ACTUAL MOVEMENT OF RATES IN THE FUTURE) 2) members make all payments on time 3) members make monthly payments for the full duration of their loan 4) members take advantage of AutoPay, which enables them to lower the APR of their loan by 0.25%. Borrowers refinancing loans into longer terms typically forfeit savings for lower monthly payments.
Lifetime welcome bonus payment calculation is based on the total funds paid or pending payment to SoFi members who earned a welcome bonus through the referral program between 12/10/14 – 1/30/2017, regardless of whether the funds have been disbursed.
Terms and conditions apply. Offer is subject to lender approval. To receive the offer, you must: (1) register and/or apply through the referral link you were given; (2) complete a loan application with SoFi; (3) have and provide a valid US bank account to receive bonus; (4) and meet SoFi’s underwriting criteria. Once conditions are met and the loan has been disbursed, you will receive your welcome bonus via automated clearing house (ACH) into your checking account within 30 calendar days. Bonuses that are not redeemed within 180 calendar days of the date they were made available to the recipient may be subject to forfeit. Bonus amounts of $600 or greater in a single calendar year may be reported to the Internal Revenue Service (IRS) as miscellaneous income to the recipient on Form 1099-MISC in the year received as required by applicable law. Recipient is responsible for any applicable federal, state or local taxes associated with receiving the bonus offer; consult your tax advisor to determine applicable tax consequences. SoFi reserves the right to change or terminate the offer at any time with or without notice.
Average Enrollee Lifetime Savings
Average enrollee lifetime savings calculation of $9,681.86 is based on all employees of SoFi’s Employer Contribution Program partners who received contributions between 5/13/2016 and 01/04/2018. SoFi itself is a participant in the Employer Contribution Program. The savings calculation is derived by taking the estimated lifetime cost of the enrollee’s existing student loan without the employer contribution minus the lifetime cost of existing student loan with the employer’s contribution added as an additional payment each month. SoFi’s average lifetime savings methodology for its Employer Contribution Program assumes: 1) data entered during enrollment in the contribution program is accurate; 2) enrollees’ interest rates do not change over time (PROJECTIONS FOR VARIABLE RATES ARE STATIC AT THE TIME OF REFINANCING AND DO NOT REFLECT ACTUAL MOVEMENT OF RATES IN THE FUTURE); 3) enrollees make all payments on time 4); enrollees make their minimum monthly payment for the full duration of their loan; 5) employer contribution is applied for the duration of the enrollee’s loan; and 6) enrollee remains employed by the company for the duration of their loan. SoFi’s average lifetime savings methodology for its Employer Contribution Program excludes: 1) enrollees from employers that do not apply the contribution for the duration of the enrollee’s loan; 2) enrollees with loan terms of 25 years or greater who have a remaining loan balance under $60,000; and 3) enrollees with loan terms greater than 30 years.
Average Monthly Employer Contribution Amount
Average monthly employer contribution amount calculation of $128.04 is based on all of SoFi’s Employer Contribution Program partners who have offered a monthly contribution between 5/13/2016 and 01/04/2018. SoFi itself is a participant in the Employer Contribution Program. The calculation is derived by averaging the monthly contribution amount offered to each enrollee for each employer, then averaging all of the employer’s monthly contribution amounts. SoFi’s average monthly contribution amount methodology for its Employer Contribution Program uses the contribution amount that enrollees receive as of 01/04/2018.
Total Employer Contributions Amount
Total employer contributions amount calculation of $991,173.75 is based on all of SoFi’s Employer Contribution Program partners who have offered a monthly contribution between 5/13/2016 and 01/04/2018. SoFi itself is a participant in the Employer Contribution Program. The calculation is derived by summing the contributions offered to each enrollee since their enrollment in their employer’s program.
Average Enrollee Repayment Years Reduced
Average enrollee repayment years reduced calculation of 4.26 is based on all employees of SoFi’s Employer Contribution Program partners who received contributions between 5/13/2016 and 01/04/2018. SoFi itself is a participant in the Employer Contribution Program. The repayment years reduced calculation is derived by taking the estimated years of repayment for the enrollee’s existing student loan without the employer contribution minus the years of repayment of existing student loan with the employer’s contribution added as an additional payment each month. SoFi’s repayment years reduced methodology for its Employer Contribution Program assumes: 1) data entered during enrollment in the contribution program is accurate; 2) enrollees’ interest rates do not change over time (PROJECTIONS FOR VARIABLE RATES ARE STATIC AT THE TIME OF REFINANCING AND DO NOT REFLECT ACTUAL MOVEMENT OF RATES IN THE FUTURE); 3) enrollees make all payments on time; 4) enrollees make their minimum monthly payment for the full duration of their loan; 5) employer contribution is applied for the duration of the enrollee’s loan; and 6) enrollee remains employed by the company for the duration of their loan. SoFi’s repayment years reduced methodology for its Employer Contribution Program excludes: 1) enrollees from employers that do not apply the contribution for the duration of the enrollee’s loan; 2) enrollees with loan terms of 25 years or greater who have a remaining loan balance under $60,000; and 3) enrollees with loan terms greater than 30 years.
11. The Financial Education Awareness Council (FEAC) is a group of experienced and passionate financial aid administrators that have volunteered to assist SoFi with our financial education efforts. Their participation in FEAC does not imply any endorsement or recommendation of SoFi on behalf of their schools. None of the FEAC representatives are compensated by SoFi. *To check the rates and terms you qualify for, SoFi conducts a soft credit inquiry. Unlike hard credit inquiries, soft credit inquiries (or soft credit pulls) do not impact your credit score. Soft credit inquiries allow SoFi to show you what rates and terms SoFi can offer you up front. After seeing your rates, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit inquiry. Hard credit inquiries (or hard credit pulls) are required for SoFi to be able to issue you a loan. In addition to requiring your explicit permission, these credit pulls may impact your credit score.
10. Any unpaid interest will be capitalized and added to your principal balance at the end of the deferment period. Maximum deferment period is six months.
| State | License | License Type |
|---|---|---|
| Alabama | 21983 | Consumer Credit |
| California | 6054612 / NML# 1121636 | Financing Law |
| Delaware | 30278 | Lender |
| DC | MLB1121636 | Money Lenders – Class A |
| Idaho | RRL-9120 | Regulated Lender |
| Indiana | 18090 | Consumer Credit |
| Iowa | NRR 2014-0096 | Regulated Loan |
| Louisiana | 1121636 | Licensed Lender |
| Maryland | 1421 | Consumer Loan |
| Michigan | RL-0019084 | Regulatory Loan |
| Minnesota | RL-167 | Regulated Loan Co. |
| Missouri | 367-14-7215 | Consumer Credit Loan Co. |
| Montana | 1121636 | Consumer Loan |
| Nevada | IL11055 & IL11056 | Installment Loan |
| North Dakota | 1121636 | Money Broker |
| Oregon | 0436-001-C | Consumer Finance |
| Pennsylvania | 42140 | Consumer Discount Co. |
| Rhode Island | 20153065LL | Lender |
| South Carolina | # MLS – 1121636 | Lender/Servicer License |
| South Dakota | MYL.3015 | Money Lending Licenses |
| Tennessee | 3745 | Industrial Loan & Thrift License |
| Texas | 154481 | Regulated Lender License |
| Vermont | 6705 | Lender |
| Washington | CL-1121636 | Consumer Loan |
Social Finance Life Insurance Agency State Licenses
Social Finance Life Insurance Agency LLC holds life insurance agency licenses in the following states:| State | License Number |
|---|---|
| Alabama | 773152 |
| Alaska | 100135885 |
| Arizona | 1159472 |
| Arkansas | 100161658 |
| California | 0L13077 |
| Colorado | 519092 |
| Connecticut | 2535731 |
| Delaware | 3000027212 |
| District of Columbia | 3098049 |
| Florida | L097765 |
| Georgia | 191708 |
| Hawaii | 444833 |
| *Idaho | 588933 |
| Illinois | 100781196 |
| Indiana | 3189520 |
| Iowa | 102279025 |
| Kansas | 611797079-0 |
| Kentucky | DOI-931183 |
| Louisiana | 707821 |
| Maine | AGN275435 |
| Maryland | 3000035395 |
| Massachusetts | 2013496 |
| Michigan | 110767 |
| Minnesota | 40494303 |
| Mississippi | 1503043 |
| Missouri | 8388434 |
| Montana | 100159259 |
| Nebraska | 100257107 |
| *Nevada | 3189525 |
| New Hampshire | 2352445 |
| New Jersey | 1622442 |
| New Mexico | 100014691 |
| New York | 1444252 |
| North Carolina | 611797079 |
| Ohio | 1124435 |
| Oklahoma | 100271523 |
| Oregon | 100297507 |
| Pennsylvania | 790122 |
| *Rhode Island | RI does not license agencies |
| *South Carolina | 209867 |
| South Dakota | 10019195 |
| Tennessee | 2346236 |
| Texas | 2135572 |
| Utah | 593009 |
| Vermont | 3199669 |
| Virginia | 140604 |
| Washington | 930875 |
| West Virginia | 100229069 |
| Wisconsin | 100216955 |
| *Wyoming | 321451 |
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Social Finance, Inc. and its affiliates, including SoFi Lending Corp, Sofi Securities LLC, SoFi Wealth LLC and SoFi Capital Advisors, LLC, is committed to providing continuous, quality service to our members and maintains a business continuity plan in order to minimize customer impact in the event of a business disruption. In the event of a significant business disruption, SoFi uses our business continuity management program to prioritize the recovery of critical business and technology functions. We accomplish this by: 1) re-routing service activities to available locations across the country; 2) relocating impacted businesses to recovery locations, as needed; 3) designing our technology and systems to support the recovery processes for critical business functions; 4) designating a crisis management team and recovery leaders responsible for activating and executing on the business continuity plan; and 5) adopting a communication plan to ensure that relevant updates are provided to our employees, customers, regulators and other key stakeholders.
While no contingency plan can eliminate all risk of a business interruption, SoFi has taken significant steps to develop and implement sound recovery plans. SoFi tests its plans on a regular basis and requires updates and approvals of the plans on at least an annual basis.
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Terms and Conditions Apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. To qualify, a borrower must be a U.S. citizen or permanent resident in an eligible state and meet SoFi's underwriting requirements. Not all borrowers receive the lowest rate. To qualify for the lowest rate, you must have a responsible financial history and meet other conditions. If approved, your actual rate will be within the range of rates listed above and will depend on a variety of factors, including term of loan, a responsible financial history, years of experience, income and other factors. Rates and Terms are subject to change at anytime without notice and are subject to state restrictions. SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers such as Income Based Repayment or Income Contingent Repayment or PAYE. Licensed by the Department of Business Oversight under the California Financing Law License No. 6054612. SoFi loans are originated by SoFi Lending Corp., NMLS # 1121636. (www.nmlsconsumeraccess.org)
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