SoFi Helps Students by Providing Payment Flexibility and Competitive Fixed Rates
The more you learn about the student loan market, the more you realize how broken the system really is. There are horror stories about companies suing parents whose children have died before repaying their student loans. Others tell tales of loan companies being totally inflexible and demanding full payment even when a borrower has hit a temporary rough patch.
At SoFi, we don’t want to be part of that. We’re working with communities of alumni and students, and that’s not how members of a community ought to treat one another. Instead, we want to drive competition in the market so that students can get a much better deal. That’s why we announced last week that our Community Loan Program for students and recent graduates will offer similar benefits to the government’s Direct Loan Program, with a few improvements that we think make it even better.
All SoFi loans will come with a range of enhanced benefits for borrowers, including alternative repayment options, loan cancellation in the case of death, forbearances for economic hardship and other options. We provide benefits comparable to those offered by the government, except for certain loan forgiveness options. While the government’s loan forgiveness is open only to those in teaching or public service after many years of loan repayment, SoFi’s participating alumni investors can choose to reduce or cancel the debt of any borrower immediately, including those working in teaching, public service or even entrepreneurial efforts.*,**
In addition to including similar features of a government loan, SoFi’s fixed rate of 6.24% (6.32% AP)*** – additional .25% discount available with automatic-ACH payments**** – is among the most competitive in the industry. The rates of other private lenders can range to above 12%, are dependent on a student’s credit score and often require a co-signer.
We’re determined to create the best loans possible and hope that every lender – whether government or private – will rise to the challenge and offer students a fairer deal. A good rate is just a component of a good loan. The terms and conditions of the loan are equally as important in determining the right loan for a student. By offering similar benefits to the government program’s benefits, we think students and families will have an easier time comparing their options and choosing the loan program that makes the most sense for them.
* Direct Loans and other private loans may offer benefits not offered by SoFi. Please carefully consider all your options. For information about federal loan benefits, see: https://studentaid.gov/h/understand-aid/how-aid-works. Please review the list of benefits offered on www.sofi.com.
** Community based loan forgiveness is not guaranteed.
*** 6.32% APR Assumes a $10,000 loan with a 21-month deferment, 6-month grace period, 1.5% origination fee, capitalization of accrued interest upon entering repayment and 15-year repayment term. Your APR may increase or decrease based on your own circumstances. You will receive a customized APR estimate during the application process.
**** If the automatic payment is cancelled at any time after repayment begins, the discount will be lost until automatic payment is reinstated.
To qualify, a borrower must be a U.S. citizen or permanent resident and meet underwriting requirements. All loans made under Social Finance Inc. ( dba SoFi – California Finance Lender License Number: #6054513) or SoFi Lending Corp. or an affiliate. Terms and Conditions Apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. CHECK SOFI.COM FOR THE MOST UP TO DATE PRODUCT INFORMATION.