San Francisco, CA – April 10, 2013 – Social Finance, Inc. (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.”
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.