The Basics of SoFi's Private Student Loans!

What are SoFi Private Student Loans?

SoFi Private Student Loans launched in 2019 with a goal to create private student loan products that help students and parents pay for school easily. SoFi aims to help students and parents make smart financial decisions through transparency, tons of resources and support, and modern first solutions all with no additional fees.

We offer pre-qualification based on a soft credit pull, so the applicant and their co-signer will know prior to uploading their documents and having a hard pull whether they are pre-qualified or not. A soft credit pull will not impact your credit.  

Final approval will be determined by a review of your application, uploaded documentation, and a hard credit pull, which may impact your credit. The actual amount you receive may be less, pending your school's certification. 

Are private student loans better than federal student loans?

In the spirit of transparency, SoFi strongly believes you should exhaust all of your federal grant and loan options before you consider SoFi as your private loan lender.

If you do decide that a private student loan is the right fit for your education, we’re happy to help! Our loan process is trusted, easy, and fast. SoFi’s Private Student Loans offer competitive rates and flexible payment options and terms, with absolutely zero fees.

Still curious? Check out our Guide to Private Student Loans on SoFi Learn.

Who is eligible for a SoFi Private Student Loan?

To be eligible for one of our private student loans, you must be enrolled in a degree seeking or graduate certificate seeking program at an eligible school. 

There are two main criteria we look at to determine school eligibility for private student loans:

1. The school must be a Title IV not-for-profit college or university.
2. At least 25% of students must graduate with a Bachelor's degree or higher.

In addition to this, you must be attending classes either full time or at least half-time and meet SoFi’s income and credit eligibility criteria. Check out our full eligibility requirements to learn more.

Please note that, in most instances, a co-signer may be needed to qualify.

1. If you are working full-time and at least a half-time student, you may qualify without a co-signer. We will underwrite your loan application based on YOUR credit, income, and academic status.
2. If you are NOT earning sufficient wages, or do not have enough credit history to qualify on your own, a co-signer may be required. We will underwrite your loan based on your CO-SIGNER'S credit and income, and YOUR academic status.

If your enrollment ends or you fall below half time, your grace period (6 months) would begin. Full repayment of principal and interest would be required approximately 30 days after the grace period ends.

If you return to school before your grace period ends and you are enrolled half-time or more, you will enter the same repayment schedule as previously selected.

If you return to school after your grace period ends and are enrolled at least half-time or more, you have the option of applying for an in-school deferment by giving us a call at 855-456-7634.

In addition having a qualified cosigner may significantly improve your chance of getting approved and receiving a better interest rate if you have no or limited credit file, or limited ability to repay. 

Our private student loan product allows for only one cosigner to be included. In addition to this, if both parents are interested in being added to your loan, one parent can apply for a Parent Loan and add the other as a cosigner during the application process. 

If you are planning to study abroad may apply for a SoFi Private Student Loan through their U.S.-based school using their U.S. permanent address or their permanent address located in either Puerto Rico, the U.S. Virgin Islands, or American Samoa

Your funds will be disbursed to the U.S.-based school, and the school will be responsible for forwarding the required funds to the study-abroad program.

Please note, if you transfer schools, your loan will NOT transfer with you, because the loan is certified by the school you attend. You will need to complete a new application, provided your new school is eligible. 

What costs do SoFi Private Student Loans cover?

Your school sets your budget for the school year and 100% of your certified costs are covered.

They will subtract any other financial aid, such as grants, scholarships, or federal loans, from your budget when certifying your SoFi Private Student Loan.

IRS guidelines currently allow schools to certify your loan inclusive of the following expenses:  

• Tuition and Fees (This includes the cost of required equipment, supplies, and materials.)
• Books and Supplies
• Transportation
• Miscellaneous Personal Expenses
• Personal Computer
• Room and Board

The minimum you can borrow is $1,000 (may be higher in specific states due to legal requirements—learn more by reading our eligibility requirements). If the loan is certified below $1,000 it will be withdrawn for not meeting our minimum loan amount.

Private Student Loans can also cover past due balances as long as the student is enrolled the next semester or has recently graduated. The student may apply for a past-due balance up to 12 months after the term. The school must certify the loan and the dates the funds cover.

What are the available repayment terms for your Private Student Loans?

There are four available repayment terms: 5, 7, 10, and 15 years. 20-year terms may be available offered for Medical and Dental Graduate Student Loans.

What repayment options are offered for your Private Student Loans?

Each term offers the following four repayment options:

1. Immediate Repayment – Full payments begin while the borrower is still in school.
2. Interest-Only – Interest payments are made while in school; full repayment begins 6 months after graduation, dropping below half-time, or leaving school.
3. Partial Interest-Only – $25 monthly payments are made while in school; full repayment begins 6 months after graduation, dropping below half-time, or leaving school.
4. Full Deferment – No payments are required while in school; full repayment begins 6 months after graduation, dropping below half-time, or leaving school.

If you have selected Interest-Only, $25 Partial Interest, or the Full Repayment option your first monthly payment will start 30 days after your first disbursement.

Please note: Parent Loans only have Immediate Repayment and Interest-Only repayment options available at this time.  If your school classifies your term as one of the Less Than Half Time options meeting eligibility criteria then the Immediate Repayment, Interest-Only, and Partial Interest payments are the options available at this time.

You can change your repayment type anytime during the application process prior to signing the final loan acceptance document! The repayment type cannot be changed after that document is signed.

If you have multiple loans, SoFi will combine your student loan payments each month into one payment. If you pay the minimum amount, the payment will be applied to each loan payment to cover the amount due for each loan.

If you pay more than the minimum, you can specify which loan(s) receive the extra funding.

What school term(s) can I apply for with your Private Student Loans?

It is recommended to apply for the full academic year to take advantage of the following benefits:

• A single application for the year; one less thing you need to worry about throughout the year
• You only pay interest on the disbursed amount, your school will set the disbursements for each semester
• If approved, you are guaranteed funding for the full year
• If approved, you are guaranteed the same rate for the full year

We only recommend taking a single-semester loan if you only need the money for one semester.

Summer and Winter Term loans are available and you may submit separate applications to apply for each of these terms

What about Graduate Student Loans?

SoFi offers Private Student Loans for those interested in pursuing a Graduate Degree. Tailored programs are available for eligible degree types seeking education in the Medical and Veterinary, Health, Dental, STEM, Law, or MBA fields.

Each Graduate Loan Program offers a grace period that best suits a student’s program of choice and takes effect following graduation or separation from school.* At this time, there are only deferment options for Medical and Veterinary Graduate Loans. The grace periods are as follows:

* Parent Loans are not eligible for grace regardless of the repayment option selected during the application process.

Can I remove a Cosigner from my Private Student Loans?

Yes, we do offer Cosigner release! The primary applicant may apply to remove the Cosigner if they were of legal age in their state* when the loan was taken out. Additionally, after making at least 12 on-time scheduled monthly payments—or the equivalent in lump sum payment(s)—the student can request Cosigner removal, pending approval through the underwriting process.

At this time we do not offer cosigner release on Parent Loans with cosigners or for Student Loan Refinances. If you are looking to remove your cosigner from a Student Loan Refinance, you must refinance their existing SoFi loan and qualify on your own in order to remove the cosigner.
 

*The age of majority is 18 in most states, except for Alabama and Nebraska (19) and Mississippi (21).

Have more questions? Chat with us or call 855-456-7634 to speak with an agent.