SoFi Blog

Lending Solution Helps Students by Providing Lower Loan Rates and Connecting Alumni Investors to Student and Graduate Borrowers

San Francisco, CA – Sept. 12, 2012 – Social Finance, LLC (“SoFi”) today announced that it has raised $77.2 million in series B funding led by Baseline Ventures and joined by DCM and Renren Inc. (NYSE: RENN), China’s largest social networking site. SoFi is an innovative lending solution that gives students access to lower loan rates than Federal Direct and PLUS loans with similar borrower protections by fostering social and economic connections with alumni investors. The new capital will be used to help SoFi grow its alumni investor base and reach new student and graduate borrowers as it expands beyond 78 schools this fall.

“With more students applying for loans for post-secondary education coupled with state budget cutbacks for higher education and a federal loan market that can punish good borrowers, the student loan and debt crisis is getting worse before it’s going to get better,” said Mike Cagney, CEO of Social Finance. “Through SoFi, we have been able to create a whole new market that gives students better alternatives to fund their education while strengthening ties to their alumni community.”

The SoFi program works as a dedicated lending fund that offers students a better fixed loan rate than today’s unsubsidized Federal Direct and PLUS loans. At the same time it enables alumni to connect with their alma mater while earning an attractive return. The program also fosters interaction between students and alumni through a unique social platform that combines on-line and off-line connections that facilitate financial literacy, career mentoring and in-school project assistance – ultimately helping to reduce lending rates and lower loss rates for students.

To date, SoFi’s lending program is available in 78 schools ranging from large universities such as Stanford and University of Michigan to smaller colleges such as Smith and Swarthmore. It will expand beyond 78 schools this fall. SoFi has generated more than $60 million in loan applications and is on a path to commit more than $200 million in student loans in 2012.

“When taking the current and foreseeable macro environment into account, there is a massive opportunity for SoFi to disrupt the entire finance market,” said Steve Anderson, founder of Baseline Ventures. “Alumni across the country want to be more involved with their universities and many have savings sitting on the sidelines earning no interest. At the same time students need lower loan rates to make college more affordable and need help with career decisions and mentoring. SoFi makes the economics work for everyone: students benefit from lower rates and alumni support, and alumni earn better returns and add value to their schools through SoFi’s community lending engagement model.”

In March, the Consumer Financial Protection Bureau announced that student debt had passed $1 trillion. In addition, a recent report from the Federal Reserve Bank of New York revealed that the delinquency rate for student loans, which is currently at 8.9 percent, increased during the second quarter of 2012. This compared to the delinquency rates for mortgages (6.3 percent), credit cards (10.9 percent) and auto loans (4.2 percent) which all decreased.

“There are very few companies that do social good while also leveraging next generation financial and social networking services,” said David Chao, co-founder and general partner, DCM. “Student loans are a major national issue that needs to be resolved. Through SoFi’s unique approach they are not only helping students through financial literacy and reducing their loan rates, but also enabling alumni to connect with their alma mater and truly give back to their community.”

“As a pioneering company pushing the potential of social infrastructure, we closely observe and participate in other online businesses that are leveraging ‘social’ to create, market and distribute products at scale,” said Joe Chen, CEO of Renren. “SoFi lies at the nexus of the social revolution, which began with social gaming and social ecommerce – and is now poised to transform finance and education.”

About SoFi

Located in the Presidio in San Francisco, SoFi was started by a team of Stanford Graduate School of Business (GSB) students in the fall of 2011. SoFi’s inaugural loan program was a $2 million pilot at the GSB that fall. Since then, SoFi has moved toward becoming a national lender via state registration, created a broker dealer, expanded its product set to include both in-school and consolidation loans, raised significant capital to fund loans and expanded its presence to more than 50 schools nationwide. SoFi is backed by a group of leading institutions including Baseline Ventures, DCM and Renren. The company encourages interested students, alumni and investors to visit www.sofi.com for more information.

About Baseline Ventures

Baseline Ventures is a seed-stage capital firm founded by Steve Anderson in late 2006. Bringing his diverse experience from eBay, Microsoft, Kleiner Perkins, Starbucks and Digital Equipment Corporation, Steve founded Baseline to in order to help entrepreneurs build and grow their ideas into companies.

Since inception Baseline has invested in more than 60 companies and helped more than 15 companies exit. Baseline is proud to be a seed investor associated with such promising companies as Instagram (acquired by Facebook), Twitter, Weebly, Formspring, Heroku (acquired by Saleforce.com), CoTweet (acquired by ExactTarget), GeoAPI (acquired by Twitter), IndexTank (acquired by LinkedIn), Rupture (acquired by EA), Sendori (acquired by Ask.com), Parakey (acquired by Facebook), Versely (acquired by Cisco), Aardvark and DocVerse (both acquired by Google) and Hunch (acquired by eBay).

About DCM

DCM is an early stage venture capital firm based in Silicon Valley, Beijing and Tokyo with more than $2 billion under management. DCM has investments in more than 140 technology companies across the United States and Asia and provides hands-on operational guidance and a global network of business and financial resources. DCM has backed industry-leading companies such as 51job, About.com, Clearwire, eDreams, Foundry Networks, Kabu.com, Sling Media, SMIC and VanceInfo as well as upcoming startups such as Bill.com, Bridgelux, Happy Elements, PapayaMobile and Trion Worlds. Recent successes include China-based IPOs: Renren, BitAuto, DangDang, Luxin and VIPShop and US-based M&A and IPOs: Fortinet, PGP (Symantec) and Sandforce (LSI).

About Renren

Renren Inc. (NYSE: RENN) operates the leading real name social networking internet platform in China. It enables users to connect and communicate with each other, share information and user-generated content, play online games, listen to music, shop for deals and enjoy a wide range of other features and services. Renren’s platform includes the main social networking website Renren.com, the online games center game.Renren.com, the social commerce website Nuomi.com and the video-sharing website 56.com. Renren had approximately 162 million activated users as of June 30, 2012.

A Better Student Loan Option, With a Maximum Fixed Interest Rate of 6.49% (6.38% APR)*, Ready on a First-Come, First-Served Basis

San Francisco, Calif., – July 18, 2012 – SoFi, a next generation social finance company that harnesses the power of a school’s alumni to offer students a better deal on student loans, is now offering its unique community-based student loans for the upcoming academic year. SoFi offers qualified students a more affordable option to finance school, with fixed-rate student loans at a maximum interest rate of 6.49% (6.38% APR)*, zero origination fees, market-leading benefits and the ability to refinance into a 5.99% (5.99% APR)*** rate after graduating and signing up for automatic ach payments.

“The current student loan system is just plain broken,” said SoFi CEO Mike Cagney. “Students and their parents are having to borrow more at rates that are way too high. We’re working with alumni to create a better option for students, particularly for students who don’t qualify for subsidized loans or may need financing beyond the federal Stafford loan limits. By looking to members of the university community, rather than to the government or the big banks, we think SoFi finally gives these students a much better deal than federal loans at 7.9% or private loans that can top 10%. For a lot of borrowers, SoFi is an easy way to save a lot of money without having to sacrifice many of the appealing benefits of the federal student loan system.”

Features of new SoFi alumni-funded student loans for the 2012-13 academic year include:

— 6.49% fixed rate (6.38% APR)* if you choose to defer payments while in school.

— 6.24% fixed rate (6.24% APR)** if you choose to make payments while in school and sign up for automatic ach payments.

— Refinance into a 5.99% fixed rate (5.99% APR)*** when you graduate and sign up for auto ach payments.

— Matches most benefits of the federal loan program, including a 6 month grace period after graduation; non-standard repayment options such as income-based and extended repayment; deferment and forbearance for economic hardship and other defined circumstances; cancellation upon death or disability. Innovative program also gives borrowers the opportunity to seek loan forgiveness from participating alumni for teaching, public interest work, entrepreneurial efforts or other reasons.

— In-school education deferrals available up to 60 months.****

— Membership in an online community of SoFi students and alumni to facilitate career advice, professional networking and loan assistance.

— Easy online loan application process.

Beginning today, individuals enrolled for the 2012-13 academic year as undergraduate students or as graduate business students at participating colleges and universities can apply online at SoFi.com. While SoFi plans to expand its program to additional campuses, the program is now available at the following schools for MBAs and undergraduate students:

— Babson College

— Boston College

— Boston University

— Brigham Young University

— Brown University

— Carnegie Mellon University

— College of William & Mary

— Columbia University

— Cornell University

— Dartmouth College

— Duke University

— Emory University

— Georgetown University

— George Washington University

— Harvard University

— Lehigh University

— Massachusetts Institute of Technology

— New York University

— Northwestern University

— Purdue University

— Santa Clara University

— Stanford University

— Tufts University

— University of California, Berkeley

— University of California, Davis

— University of California, Irvine

— University of California, Los Angeles

— University of California, Riverside

— University of California, San Diego

— University of California, Santa Barbara

— University of Chicago

— University of Illinois, Urbana Champaign

— University of Michigan – Ann Arbor

— University of North Carolina at Chapel Hill

— University of Notre Dame

— University of Pennsylvania

— University of Rochester

— University of Southern California

— University of Utah

— University of Virginia

— University of Wisconsin

— Vanderbilt University

— Virginia Polytechnic Institute

— Wake Forest University

— Yale University

For a limited time, students may save even more by taking advantage of SoFi’s $100/$100 summer savings referral program. The $100/$100 program saves borrowers even more on their student loans when they help expand SoFi’s social network with friends and family referrals.***** Click here for complete details of the company’s policy, which benefits both referred and referring SoFi borrowers.

About SoFi

Founded in 2011, SoFi offers community-based lending and student loan consolidation programs to MBA, graduate and undergraduate students at US universities. Deepening the relationships between student borrowers and alumni investors, SoFi is a place where social meets finance.

Please note that:

* 6.38% APR Assumes a $10,000 loan with a 22 month in-school deferment, 6 month grace period, monthly payments, no origination fee, capitalization of accrued interest upon entering repayment and a 15 year repayment term.

** 6.24% APR Assumes a $10,000 loan, borrower begins making monthly interest-only or interest and principal payments immediately with auto ach, 15 year repayment term and no origination fee. Does not include any discounts.

*** 5.99% APR requires borrower to have graduated and sign up for automatic ACH payments. Assumes a $10,000 loan, 15 year repayment term, no origination fee, and beginning monthly repayment 30 days after loan origination.

**** Direct Loans and other private loans may offer benefits not offered by SoFi. Please carefully consider all your options. Click here for information about federal loan benefits.

***** SoFi $100/$100 policy will provide $100 toward a borrowers outstanding SoFi loan for each new SoFi borrower referred. Additionally, any borrower referred by an existing SoFi borrower will also receive $100 toward his/her SoFi loan payment. Terms and conditions apply.

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 and meet underwriting requirements. Your APR may increase or decrease based on your own circumstances. You will receive a customized APR estimate during the application process. This information is current as of July 15, 2012 and is subject to change. SoFi loans are originated by SoFi Lending Corp (dba SoFi) California Finance Lender #6054612.

SoFi ReFi Program Is Now Available at 27 Schools 

In May we introduced the first phase of SoFi ReFi, our graduate loan refinancing program, to five schools: the Stanford Graduate School of Business, Harvard Business School, MIT’s Sloan School of Business, the University of Pennsylvania’s Wharton School of Business, and Northwestern’s Kellogg School of Business and worked closely with the alumni community at these schools to get the program up and running. The first few months have gone well and we’ve had a great response from both students and alumni to the program.

[Update (as of 9/27): Removed outdated savings calculation information.]

SoFi Can Save Student Borrowers Thousands of Dollars Without Sacrificing Benefits

San Francisco – May 3, 2012 – Social Finance, LLC (SoFi) announced today that the company’s Community Loan Program for students and recent graduates will match the benefits of the government’s Direct Loan Program, offering borrowers income-based repayment options, loan cancellation in the case of death, relief for economic hardship and other advantages. With today’s announcement, borrowers from participating colleges and universities will receive a range of benefits comparable to those offered by the government’s loan program at fixed interest rates more favorable than the government’s current unsubsidized Direct and PLUS loans and much more favorable than virtually all fixed-rate private offerings.

SoFi will provide all benefits on terms comparable to those currently offered by the government, with the exception of the loan forgiveness program. Unlike the government’s loan forgiveness program, which is open only to those in teaching or public service after many years of loan repayment, SoFi’s participating alumni investors may choose to reduce or cancel the debt of any borrower, including for work in teaching, public service or even entrepreneurial efforts.

“We wanted to create the best student loan we could,” said SoFi’s CEO Mike Cagney. “By matching the government’s current benefits, we’re making our fixed-interest rate student loans even better, and we hope that every lender – whether government or private – will rise to the challenge and offer students a fairer deal. If students are going to have to take out loans to pay for school, everyone should be working hard to reduce their debt burden.”

SoFi was founded at Stanford University’s Graduate School of Business in 2011 to bring the power of social networks to finance. SoFi’s community-based lending programs connect students and alumni through dedicated lending pools that provide students with lower-cost student loans, alumni with a new investment opportunity, and both groups with a way to engage each other through new online social networks.

“The whole idea behind SoFi is to use new technology and social media to get back to an old-fashioned model of finance where members of a community invest in the success of other members of the community,” said SoFi’s Cagney. “We believe the benefits offered by the government’s program are consistent with how a community should treat its members, and so we decided to match them.”

The SoFi Community Loan Program is expanding to business school, graduate and undergraduate students at 40 public and private universities across the country, as well as to recent graduates seeking to refinance or consolidate their existing loans. The company will offer up to $150 million in new loan offerings for the upcoming school year.

Key features of SoFi’s Community Loan Program include:

— 6.24% (6.32% APRi) fixed-rate loan for enrolled students that drops to 5.99% (6.13% APRi) in repayment with auto payments.

— 5.99% (5.99% APRi) fixed-rate refinance loan for recent graduates with no origination fee and required auto payments. 5, 10 or 15 year repayment terms available.

— $5,000 loan minimum, $200,000 maximum (or up to cost of attendance, whichever is less), with no need for a co-signer.

— Deferrals for continuing education; a grace period on graduation; non-standard repayment options such as income-based and extended repayment; deferment and forbearance for economic hardship and other defined circumstances; cancellation upon death or disability; and possible forgiveness for teaching, public interest work, entrepreneurial efforts or other reasons.

— Access to the SoFi online community, where SoFi facilitates online and offline interaction between students and alumni in areas ranging from career advice to loan assistance.

— Qualified alumni can invest in a certificate backed by student loans from their alma mater (IRA eligible). Within the SoFi community, alumni investors connect with loan recipients in a meaningful way, providing career guidance and learning from a new generation of future leaders. (ii)

Enrollment in SoFi’s Spring 2012 Community Refinance Loan Program will be open until June 30 or until funds are fully allocated. SoFi’s Fall 2012 Loan Program for enrolled borrowers will open in July 2012. Loan dollars will be distributed to eligible students on a first-come, first-served basis. (iii)

About SoFi

Founded in 2011, San Francisco-based Social Finance, LLC “SoFi” offers a community-based lending and refinancing program open to Graduate and Undergraduate students at US universities. Interested students, alumni and investors are encouraged to visit www.SoFi.com for more information.

i. Terms and Conditions Apply. Call 866-357-6342 to receive a fax or hard copy of all applicable disclaimers, assumptions and up-to-date information.

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.

ii. Certificates offered by SoFi Securities, LLC. Call 866-357-6342 to receive a fax or hard copy of all applicable disclaimers, assumptions and up-to-date information.

iii. All loans made under Social Finance, LLC (dba SoFi) or SoFi Lending Corp (dba SoFi). Social Finance, LLC is a licensed California Finance Lender. License Number: #6054513.

Successful $2 Million Stanford Pilot Paves the Way to 40 More Schools, $150 Million
in New Student Loans at Market-Leading Rates

San Francisco – April 2, 2012 – SoFi is launching a nationwide rollout of its innovative Community
Loan Program for students and recent graduates. SoFi brings a new party to the broken $1 Trillion
student loan industry – alumni. Through dedicated school-specific lending funds, SoFi empowers
alumni to provide funding for students through their IRAs, creating meaningful long–term
communities.

Alumni do well and do good, meaning they earn an attractive financial return from an investment
they feel is making a positive difference to their community. Most students receive a lower
fixed loan rate than their private or Federal options. Both alumni and students benefit from the
connections formed. In addition, schools access a new, stable, and low cost way to address their
student-funding gap while enhancing accountability to students and alumni.

“The current student loan market is unsustainable,” said Mike Cagney, SoFi CEO. “Between the
government – which accounts for 93% of student lending, students and schools, no single party is
particularly vested in the others’ long–term success. What is missing is a community solution where
the interests of all members are aligned. Alumni provide the missing ingredient as they care deeply
about both the students and the reputation of their alma mater. Through the SoFi Community Loan
Program, alumni have a financial incentive for the students to succeed above the existing natural
affinity that already exists. High default rates directly affect alumni, meaning they are incented to
keep the school accountable to its product – the education the students receive – helping to ensure
the students’ debt at graduation is commensurate with the value of their degree in the job market.
And the community persists beyond any particular loan – this is a long-term engagement.”

SoFi started at Stanford University’s Graduate School of Business in the Fall of 2011, raising and
lending out roughly $2 million. The pilot community had 40 alumni and nearly 100 students. Ben
Kessler, an MBA student and a SoFi loan borrower, said a combination of SoFi’s affordable rate and
unique form of access to the school’s alumni set the program apart. “The SoFi application process
was easy and its loans are among the best on the market,” he said. “In addition, I have received
some great practical advice from alumni investors who have a direct economic interest in my
success.”

On the back of the success and enthusiasm at Stanford University, SoFi is expanding its program to
40 schools and $150 million in loans in 2012. Key features of this year’s Community Loan Program
include:

— 6.24% (6.39% APR*) fixed rate loan for new students that drops to 5.99% (6.14% APR*) in
repayment with auto payments.

— 5.99% (5.99% APR*) consolidation loan for recent graduates.

— $5,000 loan minimum, $200,000 maximum (or up to need, whichever is less), with no need for a
co-signer.

— Deferrals for continuing education, a grace period on graduation and community-based loan
support options.

— Access to the SoFi online community, where SoFi facilitates online and offline interaction
between students and alumni in areas ranging from career advice to loan assistance.

Alumni investors earn nominal returns of 5% to 8%, pending on the level of risk they take in their
investment. Alumni can invest directly or through their IRA, meaning investing does not impact
alumni donations to the school. Within the SoFi community, alumni have the opportunity to identify
and connect with students with common interests and backgrounds, thus directly influencing their
own economic return via participation.

While launched in 2011, the seeds for SoFi were planted during the financial crisis of 2008. “I began
to look at lots of new business ideas in finance – but I didn’t find anything I felt had defensibility to
the big banks,” Mike Cagney said. That changed in 2010 when Cagney entered Stanford University’s
Graduate School of Business as part of a Sloan Fellowship and met several of his co-founders. “I was
fortunate to find a team that understood social. Social unlocked our model. It allowed us to take
the old community banking model – something that worked for hundreds of years before being
supplanted by the mega-banks – and reintroduce it. Only rather than community being defined by
geography, we defined it through social. While we’re rolling out to 40 schools this year, we want to
take SoFi to every school as fast as we can.”

SoFi is funded by a group of leading individual and institutional investors, including board
members Joe Chen, founder and CEO of RenRen (China’s equivalent to Facebook), and Steve
Anderson, Twitter seed investor and founder of Baseline. Mr. Anderson said, “This has the potential
to be a much bigger idea in the way student loans are financed going forward, and I believe that this
model will be successfully used to fund the educations of students everywhere.” SoFi’s model has
been shaped with the help of investors and advisors deeply rooted in education, including trustees
at schools such as MIT, Williams and the University of California system.

*APR calculations are based on a first-year MBA student who takes all funds in one disbursement, is in deferment
for 21 months and defers all payments while in school. It assumes the student enters into a 6-month grace period
and, upon starting repayment, makes all payments on-time thereafter. APRs may increase or decrease based an
applicant’s situation. SoFi will provide applicants with a specific APR estimate during the application process.

**Social Finance, Inc is a licensed California finance lender and its loans are made under license number
6054513.