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SoFi offers a repayment option for refinanced student loans that allows for Interest-Only payments during the first 9 months, giving you short-term flexibility. This option is available with terms of 7, 10, 15, and 20 years.
During the Interest-Only payment period, your payments will only cover the interest, meaning your principal balance will not decrease until the period ends. After this Interest-Only payment period, your payments will adjust to cover both principal and interest for the remainder of the loan term.
While this option provides initial flexibility, keep in mind that your total repayment over the life of the loan may be slightly higher than if you had chosen standard payments from the beginning. You can choose to make standard payments from the start if preferred.
Yes, we will honor the grace period from your current loan servicer, which is a temporary pause on your loan payments. If you choose the SmartStart loan during your grace period, the 9 months of Interest-Only payments will begin once your grace period ends.
Yes, SmartStart loans are available with a Cosigner as well. The same loan terms and eligibility criteria apply.
The SmartStart option is ideal for those experiencing major life changes, such as graduating, relocating to a new city, buying a home, or welcoming a child—events that can strain your budget. It allows you to secure terms that make managing debt easier in the long run, while offering flexibility and relief in the short term.
Yes, your total lifetime cost will be higher compared to making standard payments from the beginning. This is because principal payments are deferred until after the first 9 months of the loan.
No. During the first 9 months, your payments will cover only the interest accruing on your loan each month. After this period, your payments will include both principal and interest for the remainder of the term.
We currently offer a 9-month Interest-Only term. Once you select and sign a SmartStart loan offer, you'll be committed to this 9-month period. However, you're welcome to make additional payments at any time. Any extra payments will first cover outstanding interest, with the remainder applied to your principal.
Depending on your loan and credit score, there may not be a noticeable difference! There’s no catch—we’ve simply structured the repayment terms differently to provide you with more options that better suit your needs.
Yes, you can refinance as many times as needed. However, you are only eligible for the SmartStart repayment option once.
Yes! You can make payments above the minimum Interest-Only amount at any time during the first 9 months. Any extra payments will first cover the accrued interest and then be applied to your principal balance.
Eligibility for the SmartStart loan is based on factors such as your financial history, credit score, income vs. expenses, and employment status. Please note that not all borrowers may qualify for this repayment option. Additionally, you can only be the primary borrower on a SmartStart loan once.
Yes, you can view all discounts applied to your rate on the right side of your offer selection page.
No, there is no fee. However, SmartStart loans have slightly higher interest rates.
The SmartStart option is not available for Medical and Dental Residency refinance loans. However, it is available for all other types of student loan refinances.
We’ll send you an email about a month before your payment changes at the end of the Interest-Only payment period. You can also log into your account anytime to see your upcoming bill.
If you’re unable to make the higher payments after the 9-month Interest-Only payment period, we may have options available to assist borrowers facing financial hardship. Please reach out to us as soon as possible. For more information, reach out via chat here.