SoFi announces its support for the landmark decision by Congress to tie student loan interest rates to the market.
San Francisco, CA – Aug. 1, 2013 – SoFi (Social Finance, Inc.) announced today its support for the landmark decision by Congress to tie student loan interest rates to the market. The legislation will affect current students, but does not impact recent graduates.
“While these changes were needed, they haven’t replaced the need for SoFi for the vast majority of student borrowers,” said SoFi Chief Executive Officer Mike Cagney. “Recent graduates can still benefit by refinancing with SoFi, where they get rates as low as 5.49% (with ACH payments), exclusive access to a valuable community, and the convenience of loan consolidation. Current students who are PLUS loan borrowers can also benefit by choosing SoFi as their lender.”
In light of the changes in the government program, SoFi will introduce new products to increase its borrower footprint and borrower value. “We will continue to expand our community, and work on delivering products that offer compelling value relative to federal and other private loans,” said Cagney.
SoFi is using the power of social to disrupt the $1 trillion student loan industry. SoFi connects students and recent graduates with alumni and other community investors through school-specific student loan funds. Investors earn an attractive return, borrowers receive a lower loan rate than their private and federal options, and both sides benefit from the SoFi community. Founded in 2011, SoFi has funded over $135 million in loans to students and alumni from 100 top universities.