SoFi lending products use simple daily interest. Interest begins accruing once your loan is funded or disbursed, and it is calculated daily based on your principal balance.
Personal Loans
- For Personal Loans, interest accrues daily on the principal balance using a simple daily interest calculation based on the outstanding balance
- If you make extra payments, you may reduce the amount of interest you pay over the life of the loan because extra payments are applied to accrued interest first and then to principal
- There are no early repayment or prepayment penalties
Private Student Loans
- For Private Student Loans, interest starts accruing on the date the loan funds are disbursed to the school
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If your loan has multiple disbursements, only the funds that have already been disbursed to the school will accrue interest
- Any remaining undisbursed funds will not accrue interest yet
- You can only pay on the amounts disbursed and NOT on loans that have not yet been disbursed and boarded.
- Like other SoFi lending products, extra payments are applied toward accrued interest first and then principal, and there are no prepayment penalties
Student Loan Refinance
- For Student Loan Refinance, interest accrues daily, and payments are applied first to fees or charges, then to accrued interest, and then to principal
- If you make extra payments, they are applied toward accrued interest first and then principal
- There are no early repayment or prepayment penalties
Have more questions? Chat with us or call 855-456-7634 to speak with an agent.