Private student lender SoFi announces fixed rates as low as 4.99 percent (with Autopay); new variable rate student loan product with rates as low as 2.94 percent (with Autopay).
San Francisco, CA – Sept. 6, 2013 – SoFi (Social Finance, Inc.), the community-based private student lender, announced today that it has reduced interest rates for its fixed rate product as low as 4.99 percent and added a new variable rate student loan product with rates as low as 2.94 percent. This expanded product selection offers increased options for eligible customers interested in consolidating and refinancing their federal and/or private student loans.
“By achieving success in the student loan market, we have been able to lower our cost of financing. With today’s announcement, we are now passing along these savings to our customers in the form of reduced rates,” said SoFi’s Chief Executive Officer Mike Cagney. “We believe these rates are the lowest cost options for graduates looking to refinance their educational debt.”
Graduates who choose to refinance with SoFi at a fixed rate can select from a 5, 10, or 15-year loan term. Rates are set for the lifetime of the loan and range from 4.99 percent APR (with Autopay discount; when a 5-year term is selected) to 6.99 percent APR (without Autopay discount; when a 15-year term is selected).
SoFi’s variable interest rates are tied to the 1-Month LIBOR and currently range from 2.94 percent APR (with Autopay discount) to 5.18 percent APR (without Autopay discount). Interest rates are capped at 8.95 percent APR over the lifetime of the loan. All fixed and variable rate SoFi loans continue to have no origination fees and no prepayment penalties.
“We are pleased to offer expanded loan options that lower our borrowers’ debt burden and allow them to select the type of loan that is best suited to their needs,” said Cagney.
SoFi is an innovative student lender focused on building a community around traditional financial products. 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 nearly $150 million in loans to students and alumni from 100 top universities.
***Correction: Variable interest rates range up to 5.19 percent (without Autopay); not 5.18 percent as originally published***