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SoFi Review – Personal Loans and Refinancing for Qualified Borrowers

SoFi Review

Our rating



  • Loan Types: Student and resident loan refinancing, MBA loans, parent loans, personal loans, mortgage loans
  • Loan Terms: Varies by loan type
  • Loan Size: Varies by loan type (mortgages range up to $2.5 million)
  • Loan Rates: Varies by loan type
  • Origination Fee: None
  • Other Products: Wealth management (no fees, $1 minimum); term life insurance (policy benefits up to $8 million); SoFi Checking and Savings (deposit account)

Even college graduates who find great jobs can struggle with debt for years after leaving school, especially if they have expensive private student loans. And, for borrowers who can’t make ends meet, it’s nearly impossible to discharge student debts in bankruptcy. The result is an unending cascade, possibly decades long, of financial repercussions.

SoFi aims to change this glum reality. Using peer-to-peer lending between members of the public and qualified student borrowers, it launched earlier this decade with a student loan refinancing product for graduates of more than 2,000 U.S universities.

In subsequent years, SoFi has expanded its purview and now offers personal loans, mortgages, and non-loan products and services such as wealth management, life insurance, and a deposit account called SoFi Checking and Savings. It has de-emphasized the peer-to-peer angle, though it remains plenty innovative in other ways.

Key Products

SoFi offers the following financial products and services. Its loan rates may vary according to your current income and your credit score and history.

Student and Parent Loan Refinancing

SoFi offers refinancing loans that may lower the interest rates on your outstanding private and federal student loans. Refinancing is available for undergraduate loans, medical and dental loans, and Parent PLUS loans.

The minimum principal on any SoFi refinancing loan is $5,000. The maximum principal is the full outstanding balance of the refinanced loan. There are no application or origination fees. Terms range from 5 to 20 years.

SoFi refinancing loan rates vary with prevailing interest rates, pegged to the London Interbank Offered Rate (Libor). Though subject to change and dependent on your credit profile, rates on 5-, 7-, and 10-year loans are capped at a slightly lower rate than those on 15- and 20-year loans.

Personal Loans

SoFi offers fixed-rate personal loans with principal balances ranging from $5,000 to $100,000 and terms ranging from 2 to 7 years. Rates range considerably* and may vary with prevailing rates. There are no application or origination fees.

Though you don’t need to put up collateral for a SoFi personal loan, you do need good to excellent credit. There’s no pre-payment fee when you choose to pay principal ahead of schedule or pay off your loan in full before its term ends.

Mortgage Loans

SoFi offers mortgage loans to borrowers in 32 states:

  • Adjustable Rate Mortgages (ARMs): On the 7/1 ARM, you pay a fixed rate for 7 years, then accept yearly adjustments to your rate. This loan requires at least 10% down. On the 5/1 interest-only ARM, you pay interest only for 10 years, with your rate fixed for the first 5 years. Thereafter, your rate adjusts annually, with principal repayments back-loaded onto the loan’s last 20 years. This loan requires at least 25% down. Rates on these adjustable options can’t rise by more than 2% in one year and more than 6% over the life of the loan.
  • Fixed Rate Mortgages: 30-year fixed mortgages require as little as 10% down. 15-year fixed mortgages also require as little as 10% down. Principal and interest payments are made at the same rate for the entire length of the loan. SoFi issues mortgage loans as large as $2.5 million and never charges origination fees.
  • Refinancing Loans: SoFi offers traditional refinancing loans with a maximum of 80% LTV. Rates and terms are identical to SoFi’s fixed and adjustable rate purchase loans.
  • Cash-Out Refinancing Loans: SoFi also offers cash-out refinancing loans with maximum LTV of 65%. Rates and terms are identical.
  • Student Loan Refinancing: SoFi’s student loan refinancing mortgage allows you to refinance your home loan at a lower rate and use some of the equity in your home to pay down your student debt. The maximum LTV is 80%.

No SoFi mortgage loan requires borrower-paid private mortgage insurance (PMI), even when the down payment is less than 20%.

Wealth Management

SoFi’s wealth management program, SoFi Invest, is a robo-advisor in the mold of Wealthfront or Betterment. The minimum opening investment is $1, and balances are protected by SIPC insurance up to $500,000 per account type. Taxable and tax-advantaged retirement accounts are available. Funds are invested in a variety of ETFs and other diversified financial instruments, depending on your risk tolerance, and portfolios are rebalanced on a quarterly basis.

Life Insurance

SoFi partners with Ladder, an insurance startup, to offer term life insurance policies for qualifying U.S. clients. Policy terms range from 10 to 30 years. Benefits (policy size) range from $100,000 to $8 million. Premiums by policyholder profile (risk), term, and benefit size.

SoFi Checking and Savings

SoFi Checking and Savings is a high-yield deposit account that blends the best features of checking accounts, savings accounts, and cash back credit cards. The variable yield on all balances (currently 4.60% APY**) is consistently among the high-yield savings category’s best, third-party U.S. ATM fees are waived in perpetuity, and SoFi Checking and Savings has no regular fees – period.

That’s not all. Other notable SoFi Checking and Savings benefits include:

SoFi Checking and Savings users aren’t obligated to apply for loans or insurance through SoFi.

Additional Features

SoFi’s additional features include the following.

Career Coaching

SoFi’s Career Services department provides comprehensive career coaching assistance to current and former SoFi members. Services rendered may include job search assistance, career transition coaching, professional development, personal branding advice, and general career guidance.

Referral Program

SoFi lets you create a unique referral link that you can share with friends who might be interested in its products. For every successfully referred individual who opens their first SoFi loan, you earn $300. SoFi is also currently offering a $300 bonus to new borrowers who sign up through a referral link, though this could change in the future. You’re limited to $10,000 in cumulative referral and welcome bonuses in a 12-month period.

Unemployment Protection

If you’re laid off from your job, SoFi may temporarily suspend your monthly loan repayments and help you find a new job by connecting you with other borrowers, investors, and alumni in its network. You must reapply for this program every three months. SoFi only suspends loan payments for a total of 12 months over the entire life of the loan. During the suspension period, your loan continues to accrue interest, which is capitalized (added to the principal).

To earn Unemployment Protection, you must be eligible for government unemployment benefits. To remain in this program, you must actively work with SoFi’s Career Services department to find a new job. If you obtained your loan with a cosigner, both of you must be unemployed to qualify.

Autopay Discount

When you set up automatic debit payments (autopay) on your SoFi loan, you qualify for a 0.25% reduction in its effective interest rate for as long as the autopay arrangement remains in place. For instance, autopay drops the rate on a loan originated at 6% to 5.75%.

SoFi Member Discount

Qualifying SoFi borrowers may be eligible for rate discounts of 0.125% on second (and subsequent) SoFi loans when they maintain their original loans in good standing. If you’ve already refinanced your student loans and feel ready to buy a house, your patronage could save you thousands of dollars in interest over the life of your loan.


1. Help for Entrepreneurs and Temporarily Unemployed Borrowers
SoFi doesn’t just temporarily suspend loan repayments for laid-off and entrepreneurial borrowers – it also lets you leverage its community of investors and borrowers for business development assistance, mentoring, and even startup funding.

No other student lenders offer such a comprehensive deferment-and-support program for entrepreneurs. The Small Business Administration’s Student Startup Plan, however, does allow budding entrepreneurs to opt for income-based repayment on their outstanding federal loans. Federal Sallie Mae loans feature up to three years of unemployment deferment, compared to SoFi’s 12 months, but the organization doesn’t provide additional services like SoFi does.

2. No Origination Fees
SoFi loans don’t have origination fees. That’s great news for cash-strapped borrowers. Other private student loan consolidation services, such as NextStudent and Student Loan Network, may charge origination fees of up to 5%. And mortgage origination fees are common among traditional lenders like Wells Fargo. Other personal loan providers, such as Lending Club, may charge far higher origination fees (up to 5%, in some cases) on personal loans.

3. Attractive Fixed Rates for Qualified Borrowers
If you can qualify for a SoFi loan with a fixed interest rate, it may come at a significant discount compared to other lenders. Rates on SoFi’s student loan refinancing products come in at under 10%, regardless of creditworthiness or principal. Mortgage rates are competitive, as well.

4. Free Professional Development, Networking, and Business Funding Support
SoFi has a slew of value-added programs, such as the Entrepreneur Program and career coaching. While traditional lenders such as Sallie Mae and Wells Fargo provide college planning tools and general financial advice, their borrowers can’t leverage an entire community’s insights and resources. And, though peer-to-peer lenders like Lending Club follow SoFi’s lead and encourage borrowers to eventually become investors, creating a de facto community, they don’t exploit that community to offer networking opportunities or professional development services.

5. Lucrative Referral Program
SoFi’s $300 referral bonus is a fantastic incentive to bring friends onboard, and the $10,000 limit on cumulative referral and welcome bonuses within a 12-month period is comfortably high. Though Sallie Mae has a referral program for lenders in its network, no other lender with a national profile offers such an attractive referral program for individual borrowers.

6. Low-Fee Wealth Management With Low Minimums
SoFi Invest is its most democratic, with a low minimum investment ($100) and no SoFi fees (though funds held in your SoFi portfolio do carry fees). If you’re looking for a cheap, serviceable automated wealth management program to begin building your nest egg, you can do a lot worse.

7. Good Yields and No Fees With SoFi Checking and Savings
The SoFi Checking and Savings account has above-average yields, below-average fees (including third-party ATM fee reimbursements), and competitive FDIC insurance. If you’re looking for a place to park money for the short to medium term, SoFi Checking and Savings deserves a close look, even if you’re not in the market for a SoFi loan.


1. Strict Financial Eligibility Criteria
SoFi makes lending decisions on a case-by-case basis and doesn’t disclose the specifics of its methodology. However, to qualify for refinancing – which is the easiest way for graduates to become members – you must have a superior credit score and ample monthly cash flow.

2. Loans Aren’t Available Everywhere
SoFi’s mortgage products are available in just 32 states. If you live in an area not served by SoFi, you’ll need to look elsewhere, no matter how attractive you find the company’s products.

3. Variable Rate Options May Not Save You Much
Though SoFi’s fixed loan rates are generally cheaper than other lenders’, its variable rates for student loans and refinancing may not be. For instance, variable rates on Discover MBA loans are 1% to 3% cheaper than comparable SoFi loans.

Are You Eligible for a SoFi Loan?

To be eligible for any SoFi loan, you must meet these universal criteria:

  • Citizen or permanent resident status
  • 18 years of age or older
  • No bankruptcy declarations within the past 3 years
  • Currently employed or holding a binding offer of future employment

SoFi also uses strict underwriting criteria – the specifics of which aren’t made public – to approve or deny loan applications. To have a good chance of being approved, you need to be ineligible for federal loan forgiveness programs, have a credit score of at least 700, and have a moderate debt-to-income ratio. However, SoFi doesn’t clearly define “moderate.” You must also have, or expect to have shortly, at least a four-year degree.

Final Word

SoFi is an increasingly popular option for borrowers seeking to refinance student loans or obtain mortgage loans and personal loans. Though your exact loan cost depends on your credit history and the amount you’re borrowing, rates are lower than those of many competitors. Plus, customers get valuable perks, including networking opportunities and job search assistance, that aren’t available through traditional lenders. It’s like a career coach, personal finance expert, and lender, all in one package.

Lately, SoFi has tiptoed beyond the consumer lending space, moving into wealth management and insurance. It’s an exciting time to be a SoFi member.

Have you used SoFi to refinance your student loans?

*Fixed rates reflect the 0.25% autopay discount and a 0.25% direct deposit discount. SoFi rate ranges are subject to change without notice. Not all rates and amounts available in all states. See Personal Loan eligibility details. Not all applicants qualify for the lowest rate. Lowest rates reserved for the most creditworthy borrowers. Your actual rate will be within the range of rates listed above and will depend on a variety of factors, including evaluation of your credit worthiness, income, and other factors. See APR examples and terms. The SoFi 0.25% AutoPay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account.

**SoFi members with direct deposit or who deposit $5,000 or more every 30 days can earn up to 4.60% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum direct deposit amount required to qualify for the 4.60% APY for savings. Members without direct deposit will earn up to 1.20% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of 8/2/2023. There is no minimum balance requirement. Additional information can be found at

The Verdict

SoFi Review

Our rating



SoFi is a versatile lender with a steadily expanding product line that now includes wealth management and term life insurance. On balance, however, it caters to an affluent, highly qualified clientele, especially compared to other peer-to-peer lenders such as Prosper and Lending Club. If you can gain admission to this somewhat exclusive club, you can make out well – but that’s a big “if.”

Great for those who qualify, but restrictive qualification requirements and limited geographical coverage counts against. On the plus side, networking, career assistance, and non-loan products such as life insurance are important for keeping clients in the fold. For many prospective SoFi members, wealth management is the best way in the door.

Editorial Note: The editorial content on this page is not provided by any bank, credit card issuer, airline, or hotel chain, and has not been reviewed, approved, or otherwise endorsed by any of these entities. Opinions expressed here are the author's alone, not those of the bank, credit card issuer, airline, or hotel chain, and have not been reviewed, approved, or otherwise endorsed by any of these entities.

Brian Martucci writes about credit cards, banking, insurance, travel, and more. When he's not investigating time- and money-saving strategies for Money Crashers readers, you can find him exploring his favorite trails or sampling a new cuisine. Reach him on Twitter @Brian_Martucci.

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