SoFi Blog

SoFi’s new nine month interest-only refinancing option enables people with student loans to lower monthly minimum payments when it matters most.

SoFi Technologies, Inc. (NASDAQ: SOFI) is making student loan repayment more flexible with the launch of SmartStart, a new refinance option. With SmartStart, people can put money they’d otherwise use on student loan payments in the first nine months towards supporting life transitions like finding a new job, relocating to a new city, or searching for a new home.

A recent Gallup survey found that 71% of student loan borrowers delayed at least one major life event, like buying a car or moving out of their parents’ home, because of their student loans.1 With SmartStart, members can refinance their student loans and pay only the interest for their first nine months. This keeps minimum monthly payments low and eases financial stress as they start their next chapter. For example, a member refinancing $50,000 in loans over a 10-year term could reduce their monthly payments by more than $3,000 during their first nine months.2 After the first nine months, members will start paying the principal and interest for the remainder of the loan. SmartStart loans come with SoFi’s competitive fixed interest rates and flexible terms of up to 20 years, providing members with control over the amount they pay each month and more predictability over their budgets.

“For the millions of people who borrow money to fund their education, paying down debt is a critical, but an often difficult step on the path to getting their money right,” said Anthony Noto, CEO of SoFi. “With SmartStart, members get lower payments in the early part of their loans as they make important life transitions. There are endless ways SoFi will innovate to help our members spend less than they make and invest the rest, and that’s exactly what we’re doing with SmartStart.”

Through competitive interest rates, no hidden fees, and flexible repayment options, SoFi members have saved thousands of dollars over the life of their loans. SoFi makes it easier for borrowers to lower their monthly payments, reduce their total interest costs, and pay off their loans faster. SoFi members also get access to benefits like financial planning tools, and member events, ensuring that refinancing isn’t just about saving money—it’s about setting yourself up for long-term success.

As of December 2024, SoFi has helped over 534,374 members refinance more than $45.8 billion in student loans. Demand for SoFi’s student loan offerings continued through the end of 2024, with student loan originations reaching $1.3 billion in the fourth quarter, a 71% year-over-year increase.

To learn more about Smart Start visit https://www.sofi.com/smart-start/

To check out SoFi’s full suite of student lending options visit https://www.sofi.com/refinance-student-loan/

About SoFi

SoFi (NASDAQ: SOFI) is a member-centric, one-stop shop for digital financial services on a mission to help people achieve financial independence to realize their ambitions. The company’s full suite of financial products and services helps its over 10.1 million SoFi members borrow, save, spend, invest, and protect their money better by giving them fast access to the tools they need to get their money right, all in one app. SoFi also equips members with the resources they need to get ahead – like credentialed financial planners, exclusive experiences and events, and a thriving community – on their path to financial independence.

SoFi innovates across three business segments: Lending, Financial Services – which includes SoFi Checking and Savings, SoFi Invest, SoFi Credit Card, SoFi Protect, and SoFi Insights – and Technology Platform, which offers the only end-to-end vertically integrated financial technology stack. SoFi Bank, N.A., an affiliate of SoFi, is a nationally chartered bank, regulated by the OCC and FDIC and SoFi is a bank holding company regulated by the Federal Reserve. The company is also the naming rights partner of SoFi Stadium, home of the Los Angeles Chargers and the Los Angeles Rams. For more information, visit SoFi.com or download our iOS and Android apps.

©2025 SoFi Technologies, Inc. All rights reserved.

1 Gallup & Lumina Foundation. (2024). The State of Higher Education 2024 Report. Retrieved from https://news.gallup.com/poll/643328/student-loan-borrowers-delayed-major-life-events.aspx

2 Estimated monthly payments for the SmartStart loan are $269 per month and calculated using 6.47% APR (the average rate for all SoFi refinance loans from 2/28/24 to 2/28/25 plus 0.125%). Estimated monthly payments without SmartStart are $621 per month and based on a hypothetical loan with 8.55% APR (SoFi borrowers’ average incoming rate from 2/28/24 to 2/28/25) with a remaining term of at least 10 years. Calculations assume no origination fee option selected and no pre-payment amounts. Actual rates on a new SoFi loan will depend on various factors, including the term of your loan, your credit history, and your cosigner’s (if any) credit.

SOFI-F

Crumbling Sentiment

Darkening macro clouds are evident in a wide variety of so-called soft data (qualitative information collected through surveys). According to the American Association of Individual Investors, over the last two months, there have been roughly twice as many bearish investors as bullish ones. That’s not a major surprise given the steady drumbeat of negative news on the trade front.

However, this pessimism has also found its way to business executives. Several regional Federal Reserve banks conduct monthly surveys of manufacturing and services businesses in their districts to get a feel for how operators see things. By incorporating their views on factors like orders, workforce activity, and price trends, the Fed banks publish indexes to approximate overall activity. While April data remains partial, the composites across regions have fallen into firmly negative territory (0 = neutral).
 

Regional Fed Activity Composites

Although manufacturing input costs are generally more exposed to imports, the economy is interconnected enough that major shocks reverberate throughout markets. An increase in input costs will probably raise costs for most firms and weigh on demand. Higher costs and lower demand is a recipe for margin pressure, and recent business pessimism reflects that concern.

Deterioration and Rotation

The S&P 500 remains nearly 13% off its all-time high of 6144 set on February 19, yet it has rallied 8% since closing at 4982 on April 8 on fresh hopes for a resolution to the trade impasse. Nonetheless, it’s hard to envision stocks setting new records in the near-term: Recent upheaval can’t just be forgotten. Technical trends have been damaged and investor sentiment could take time to rebound.

A key element of the current market backdrop has been the rotation between cyclical and defensive stocks. When investors are optimistic about economic growth, they tend to favor cyclical sectors like consumer discretionary that benefit from economic expansion. When concerns about economic contraction emerge, money tends to flow toward defensive sectors like utilities and consumer staples with more stable earnings profiles.

Given the macro backdrop, one would expect defensives to be outperforming cyclicals. That’s exactly what has been happening.
 

S&P 500 Cyclicality Ratios

Hardening Data

Up until recently, markets have largely traded on the unknown and its possibilities. Economists have rapidly revised their growth expectations downward, with consensus now expecting the U.S. economy to expand by 1.7% in 2025, significantly below the 2.3% expected at the end of February. Of course, soft data has helped explain the shifting landscape, but that isn’t a replacement for hard data (i.e. factual and reliable statistics). The wait is almost over now, though, as April data starts getting released in the coming weeks.

Critical economic indicators such as the unemployment rate, inflation, and consumer spending will all go a long way in shaping how markets trade over the coming weeks. An important caveat, however, is that market risks here are likely to be asymmetric. Weak jobs numbers or hot inflation reports could have a greater impact on markets because they’d confirm investors’ fears. Conversely, better-than-expected data could get shrugged off due to the possibility that the trade upheaval might just take a bit longer to reflect in the hard data, perhaps because some spending was pulled forward to get ahead of tariffs going into effect.

In this volatile environment, it might be prudent to maintain (or adopt) defensive positioning until greater clarity emerges. Of course, market timing is notoriously difficult, and periods like the one we’re in can lead to poor decisions. It’s why getting completely out of the market tends to be the wrong move, since missing even a few of the best days has a major effect on investment returns. And as discussed two weeks ago, the best days of returns tend to cluster around the worst days.

Performance of $10,000 Invested in the S&P 500 in 1927

When times are easy, diversification might not seem important. But when times are tough and emotions are high, diversification across sectors, regions, and assets pays off. Stick to it.

Want more insights from SoFi’s Investment Strategy team? The Important Part: Investing With Liz Thomas, a podcast from SoFi, takes listeners through today’s top-of-mind themes in investing and breaks them down into digestible and actionable pieces.

SoFi can’t guarantee future financial performance, and past performance is no indication of future success. This information isn’t financial advice. Investment decisions should be based on specific financial needs, goals and risk appetite.

Communication of SoFi Wealth LLC an SEC Registered Investment Adviser. Information about 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. Mario Ismailanji is a Registered Representative of SoFi Securities and Investment Advisor Representative of SoFi Wealth. Form ADV 2A is available at www.sofi.com/legal/adv.

• You could save from the start with lower partial payments.

  Pay no principal for nine months¹ and keep more of your cash.

  ¹Pay only the monthly interest for the first 9 months, then start full principal and interest payments.

• Your extra cash can go toward your savings.

  Save the money you keep for an emergency or other need.

• You could still save thousands overall.

  A lower rate could take a big bite out of your interest costs.

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SoFi SmartStart student loan refinancing gives you lower partial payments for nine months. So why is that extra breathing room today helpful for tomorrow?

Nine months of extra cash could help you:

Find the right refi for you.

SoFi SmartStart helps our most qualified borrowers keep extra cash for nine months. Like our standard SoFi Student Loan Refinancing, it could save you thousands. See a 10-year, $50,000 refinance example:

Example chart shows calculations based on a 10-year term and a $50,000 loan balance. Estimated monthly payments for the standard Student Loan Refinance are based on 6.34% APR (the average interest rate for all SoFi refinance loans from 2/28/24 to 2/28/25). Estimated monthly payments for the SmartStart loan are calculated using 6.47% (the average rate for all SLR plus 0.125%). Estimated monthly payments for “Current Loan” are based on a hypothetical loan with 8.55% APR (SoFi borrowers’ average incoming rate from 2/28/24 to 2/28/25) with a remaining term of at least 10 years. Calculations assume no origination fee option selected and no pre-payment amounts. Your rate on a new SoFi loan will depend on various factors, including the term of your loan, your credit history, and your cosigner’s (if any) credit. SoFi Refinance Student Loans are private loans. When you refinance federal loans with a SoFi loan, YOU FORFEIT YOUR ELIGIBILITY FOR ALL FEDERAL LOAN BENEFITS, including all flexible federal repayment and forgiveness options that are or may become available to federal student loan borrowers including, but not limited to: Public Service Loan Forgiveness (PSLF), Income-Based Repayment, Income-Contingent Repayment, extended repayment plans, PAYE or SAVE.

*You may pay more interest over the life of a new SoFi loan if you refinance. Visit our SmartStart calculator to compare the terms of your existing loan to potential refinance options.

Find the right refi for you.

SmartStart helps our most qualified borrowers keep extra cash for nine months. Like our standard SoFi Student Loan Refinancing, it could save you thousands. See a 10-year, $50,000 refinance example:

Example chart shows calculations based on a 10-year term and a $50,000 loan balance. Estimated monthly payments for the standard Student Loan Refinance are based on 6.34% APR (the average interest rate for all SoFi refinance loans from 2/28/24 to 2/28/25). Estimated monthly payments for the SmartStart loan are calculated using 6.47% (the average rate for all SLR plus 0.125%). Estimated monthly payments for “Current Loan” are based on a hypothetical loan with 8.55% APR (SoFi borrowers’ average incoming rate from 2/28/24 to 2/28/25) with a remaining term of at least 10 years. Calculations assume no origination fee option selected and no pre-payment amounts. Your rate on a new SoFi loan will depend on various factors, including the term of your loan, your credit history, and your cosigner’s (if any) credit. SoFi Refinance Student Loans are private loans. When you refinance federal loans with a SoFi loan, YOU FORFEIT YOUR ELIGIBILITY FOR ALL FEDERAL LOAN BENEFITS, including all flexible federal repayment and forgiveness options that are or may become available to federal student loan borrowers including, but not limited to: Public Service Loan Forgiveness (PSLF), Income-Based Repayment, Income-Contingent Repayment, extended repayment plans, PAYE or SAVE.

*You may pay more interest over the life of a new SoFi loan if you refinance.

Get SoFi SmartStart now.

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