How to Refinance a Student Loan in 15 Minutes with Sofi

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Refinancing a student loan sounds like a complicated process but you’ll be relieved to know it can be done in just 15 minutes using SoFi. Here’s how it works.

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  • Loan Options
  • Moderate Interest Rates
  • Low Closing Costs

Editor's note - You can trust the integrity of our balanced, independent financial advice. We may, however, receive compensation from the issuers of some products mentioned in this article. Opinions are the author's alone, and this content has not been provided by, reviewed, approved or endorsed by any advertiser.

SoFi (short for Social Finance) is not a peer-to-peer lending platform. Its primary focus is student loan refinancing, and it offers both fixed and variable rate loans of varying terms, from 5 to 20 years. It’s grown in popularity over the years, in part because it offers some of the lowest refinance rates available to college graduates.

Given the growth of student debt over the past few years, we thought a review of SoFi was in order.

Who is SoFi?

Four students from the Stanford Graduate School of Business founded SoFi in 2011. Their idea was to enable alumni, giving them a way to help recent college graduates lower the rates on education loans. Considering the limited options that are available in refinancing student loan debts, they wanted to create more affordable refinance loans and to streamline the process.

When they launched, it was as a pilot program, initially funded with $2 million from 40 alumni of the Stanford Graduate School of Business. Loans were available only to Stanford graduates, and the funds invested provided loans to 100 students.

After the success of the Stanford pilot loan program, the founders expanded to include additional colleges and more students across the country. Since its founding, SoFi has provided refinance loans exceeding $30 billion and has a community of over 600,000 members. The site minimizes loan defaults by focusing on low-risk students and graduates.

How SoFi Works

In addition to mortgages, personal loans, and MBA loans (a pilot loan program for certain schools), SoFi is best known for student loan debt consolidation. The basic concept of student loan debt refinance program is to provide an exchange — one that matches students and recent graduates with both institutional and alumni investors. Together, they provide school-specific student loan refinance funds, allowing borrowers to reduce their interest rates.

SoFi offers student loan refinancing packages in 49 states and the District of Columbia (Nevada being the one exception). They offer both fixed- and variable-rate loans, though variable-rate loans are not available for residents of Minnesota or Tennessee. SoFi will consolidate all qualified education loans, whether federal or private.

Student Loan Refinance Program

In order to qualify for a loan with SoFi you must:

  1. Be of legal age in your state
  2. Be a US citizen or permanent resident (that’s you and your co-signer, if applicable)
  3. Hold a 4-year undergraduate degree or graduate degree from a Title IV accredited institution
  4. Have a good employment history — that means you are currently employed or hold a confirmed offer of employment (which must begin within 90 days)
  5. Be in good standing on current student loans
  6. Demonstrate a strong monthly cash flow
  7. Have an excellent FICO score
  8. Be looking to refinance educational debt (bar loans and residency loans are not eligible for refinancing at this time)

If you don’t meet the above criteria, your application can be declined. The company recommends that you reapply at a later date when your deficiencies in any of the above areas have improved.

How to Refi with SoFi

Some of the features of student loan consolidations include:

  • You can refinance both federal and private student loans through the platform.
  • There are no application, origination, or pre-payment fees.
  • Fixed rate loans range from 3.899% APR to 8.024% APR (with AutoPay; rates are subject to change).
  • Variable rate loans range from 2.54% APR to 7.275% APR (with AutoPay; rates are subject to change).
  • Interest rates on variable rate loans are capped at either 8.95% or 9.95%, depending on term of loan.
  • Loan terms are from 5 years to 20 years.
  • The minimum loan amount is $5,000, and no maximum is indicated.

Auto Pay entitles you to a 0.25% rate reduction if you agree to make monthly payments by automatic draft from your checking or savings account.

If you qualify, you can complete the online loan application process in less than 15 minutes.

Refinance with SoFi in 15 Minutes

How SoFi Can Help You

If you have been looking for a lender that will enable you to refinance your student loan debts under a single loan with a more advantageous rate, then you are well aware that there are no more than a handful of potential lenders nationwide. SoFi claims to be the largest student loan refinance source in the country, so this may be the first place you need to check if you’re looking for such a loan.

How much you actually save will, depend upon the size of your outstanding loan balances, as well as the interest rate and terms that will apply to your new loan.

Unemployment Protection

This is in interesting feature of a SoFi loan. The company recognizes the potential for just about anyone to lose a job. If you do – through no fault of your own – you can apply for unemployment protection. Under this program, SoFi will suspend your monthly loan payments for up to 12 months. They will also provide job placement assistance to help you find a new job. Interest on the loan will continue to accumulate and will be added to your outstanding principal balance at the end of each forbearance period.

In order to qualify for the protection, you must provide proof that you have applied for and are eligible for unemployment compensation and that you will actively work with SoFi’s career services department to look for a new job. The benefit is also available if you have a cosigner who loses a job.

Pros and Cons


  • Good Loan Options Available
  • Moderate Interest Rates
  • Low Closing Costs
  • Unemployment Protection
  • Auto Pay Discount


  • Excellent Credit Required
  • No 30 Year Notes

Is SoFi Right for You?

If you have been wanting to refinance your student loan debts but haven’t had much luck finding a willing lender, check out SoFi. They have an interesting lending model, one that has been growing steadily over the last six years. And best of all, there’s no need to head down to a local bank to fill out paperwork; you can do it all online in a matter of minutes.

Author Bio

Total Articles: 1082
Rob founded the Dough Roller in 2007. A litigation attorney in the securities industry, he lives in Northern Virginia with his wife, their two teenagers, and the family mascot, a shih tzu named Sophie.
Article comments
Bob says:

The problem with SoFi is that the range of fixed rates is too large, and there is no way of knowing what kind of rate you may be able to get until they’ve run a hard credit check. With Darien Rowayton, you know going into the application process that the most you will pay for a 10 year fixed rate refi is 5.5%.

Lynn says:

REALLY? … you need more than $200,000 in yearly income with SoFi to qualify!!!???
Isn’t there something for the regular guy?

Rob Berger says:

You do not need more than $200,000 to qualify. They do have underwriting standards, of course, but $200,000 is not the requirement.

Jean says:

I was extremely disappointed when I tried to refinance my daughters loans. It took me longer to answer all the questions than it did for them to deny me. I have EXCELLENT credit and more than enough income. I was looking for a lower interest rate from them but will not recommend SoFi to anyone

aa says:

The reality is that having a job is not enough. You actually have to be making a particular income before they let you refinance, and no one tells you this until after you try to apply. They also do not account for your spouse’s earnings when calculating your rates. So they will reject you if you do not fit a particular income bracket on your own. I did not qualify because my personal earnings were too low, despite the fact that my husband and I very successfully pay above the minimum payments of our loans as they currently stand.

Reneeroseanne says:

I started off with over $30,000 in student loan debt with an 8.5 interest rate. With roughly an upper 600s credit score. Sofi refinanced my loan to be 6.5% for ten years saving me around $15,000. I refinanced the same loan with them again to get a lower rate and now I am at 5.99% for 7 years which shaves off another $3,000. My credit scores wasn’t any better when I applied for the second refinance but sofi looks at various factors in order to give you the best rates possible. Applying with sofi was the best decision I ever made in 2015. Plus the customer service is awesome.