SoFi Blog

I got a request to write something about the recent fall in gold prices.  Gold had rallied the last decade through a combination of “it’s the end of the world” buyers and concerns about inflation.  These concerns are now getting replaced with expectations for high real rates driven by growth and a Fed exit, and from expectations of low inflation.  Consequently, gold has suffered.  Oil – another hedge fund commodity favorite – has held on to its gains, showing support for some industrial commodities (and supporting a growth thesis – sort of).

There is a lot of debate going on these days about overhauling student loans.  Here’s a high-level summary of our view:

Earlier this year, the Consumer Financial Protection Bureau (CFPB) solicited input on how to “stop the student debt domino effect.” Tens of thousands of individuals and organizations responded with their comments and suggestions along with our very own CEO Mike Cagney.

San Francisco, CA – April 10, 2013 – Social Finance, LLC (www.sofi.com), the private student lender, announced today it is expanding its selection of loan products for eligible customers refinancing their student loans.

As a result of customer demand for increased flexibility in loan terms and interest rates, SoFi now offers a range of fixed-interest loans with varying terms from 5 years to 15 years. Customers who select a 5-year-term can refinance at a rate of 5.74% APR. This rate is further discounted to 5.49% APR when customers make monthly principal and interest payments by an automatic, monthly deduction from a savings or checking account.

SoFi’s new 10-year and 15-year loan terms have fixed-interest rates set at 6.375% APR and 6.875% respectively, and these loans are also eligible for a 0.25% discount when a customer makes automatic payments. SoFi’s rates compare favorably to Federal Direct PLUS Loan rates, which are fixed at 7.9% with a 4% origination fee. SoFi does not charge an origination fee for refinancing customers.

“We are grateful to have such enthusiastic customers and are acting on their suggestions to increase the range and flexibility of our products,” said SoFi’s Chief Executive Officer Mike Cagney. “SoFi borrowers are now able to select the loans terms that best meet their needs.”

About SoFi
SoFi is transforming the $1 trillion student loan market. By connecting accredited alumni investors with students and recent graduates through school-specific loan funds, investors can earn a compelling risk-adjusted return while helping borrowers reduce the cost of their loans. Founded in 2011 by a team of Stanford Graduate School of Business alumni, SoFi has funded over $90 million in new and refinanced student loans to students and alumni of 78 schools. To learn more about SoFi visit www.sofi.com.

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Private student lender SoFi recommences origination of loans to borrowers as a result of alumni investments and the recent Morgan Stanley warehouse facility.

San Francisco, CA – April 2, 2013 – Social Finance, LLC (www.sofi.com) recommences lending today for current students and graduates from the majority of the 78 schools in the company’s footprint.

SoFi paused lending in November of 2012 after demand for loans far outstripped the supply of alumni capital. The company had originated over $90 million in loans to that point. SoFi has recently raised additional alumni and institutional capital that will provide funding for new loans.

“As a result of more alumni investment and the recent Morgan Stanley warehouse facility, SoFi is able to start lending again,” stated Mike Cagney, Chief Executive Officer, SoFi. “We are aggressively raising additional alumni capital to meet both our current backlog and ongoing demand. Our ability to fund loans for a given school will continue to be driven by our success raising alumni capital for that school.”

About SoFi
SoFi is transforming the $1 trillion student loan market. By connecting accredited alumni investors with students and recent graduates through school-specific loan funds, investors can earn a compelling risk-adjusted return while helping borrowers reduce the cost of their loans. Founded in 2011 by a team of Stanford Graduate School of Business alumni, SoFi has funded over $90 million in new and refinanced student loans to students and alumni of 78 schools. To learn more about SoFi visit www.sofi.com.

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