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SoFi Student Loans: Competitive Rates and Easy Application

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Well known for its low-rate student loan refinancing options, SoFi launched its own private student loans this year for undergraduates, graduate students and parents. With a SoFi student loan, you can enjoy a streamlined application process, competitive rates and flexible repayment terms, though there are some drawbacks as well.

This SoFi student loan review will try to help you decide if this loan is the right option for funding your college or graduate degree.

SoFi student loan review: What is SoFi?

SoFi Student Loan Review: Rates At a Glance

Loan type

Fixed interest rate

Variable interest rate

Undergraduate5.05% to 11.71% APR3.65% to 11.25% APR
Graduate 4.33% to 11.99% APR2.93% to 11.57% APR
Parent 5.05% to 11.71% APR3.65% to 11.25% APR

SoFi is an online lender that made a splash in the fintech world with its student loan refinancing business. After helping more than 250,000 customers refinance their student loans, SoFi is bringing its same approach to the world of student loans.

Through SoFi, you can borrow up to the full cost of attendance of your school. Parents also have the option to borrow student loans on behalf of their children. Thanks to its competitive rates and no-fee structure,SoFi student loans are worth exploring as you compare options for a private student loan.

Plus, SoFi doesn’t just offer money for school — the company also provides a number of special benefits for its members. For example, if you borrow with SoFi, you’ll have access to exclusive networking events, career coaching services and other activities.

While it’s always a good idea to focus on the best interest rates when you shop around to find a private student loan, SoFi’s special perks are also worth keeping in mind for the added value they could bring to your college and post-graduate experience.

Types of student loans SoFi offers

SoFi offers three types of student loans to borrowers: undergraduate, graduate, and parent student loans. Undergraduates will likely need to apply with a cosigner to meet SoFi’s underwriting requirements. (Note that applying with a cosigner is typical for private student loans — according to data firm MeasureOne, 92% of undergraduates applied for private student loans with a cosigner in the 2018-19 school year.)

See the chart above for the interest rates SoFi offers on its student loans. The lender will look at your creditworthiness, along with other factors, to assign you a from the appropriate range rate after you’ve decided whether to take a fixed-rate or variable-rate loan.

SoFi doesn’t charge any origination, prepayment or even late fees on its student loans. Student and parent loans must be at least $5,000, but can be as much as the entire cost of attendance of the school.

SoFi student loans repayment options

Whether you’re borrowing an undergraduate, graduate or parent student loan from SoFi, you have the option of a five-year, 10-year or 15-year repayment term. Going with a shorter term will mean higher monthly payments, but you’ll pay less interest and get out of debt faster. A longer term could be easier on your budget, but it will increase your overall cost of borrowing.

As for when you start paying back your loan, SoFi offers four options:

  • Deferred repayment: SoFi’s “grace period” — you don’t start repayment while you’re in school or for six months after you graduate. This option isn’t available on parent loans.
  • Interest-only payments: Pay any accrued interest while you’re in school to reduce the overall cost of your loan.
  • Partial payments: Make fixed payments of $25 per month while in school to lower the costs of your loan. This option isn’t available for parents.
  • Immediate payments: Start making full payments on the principal and interest right away.

As noted, parent borrowers can choose only the interest-only payment or immediate repayment on their SoFi loan. For students, meanwhile, choosing to make small or interest-only payments while you’re in school could cut down on costs and avoid a ballooning balance after you graduate.

How SoFi compares with other lenders

SoFistands out among the competition due to its relatively low interest rates and flexible repayment options. Here are a few ways in which SoFi beats the others, as well as some areas where it might fall short.

Advantages of SoFi student loans

You can choose a repayment plan that works for you. While some lenders have even more term-lengths to choose from, SoFi’s options of between five and 15 years still offers enough freedom to pick a repayment plan that works for your budget and goals.

You don’t have to worry about hidden fees. SoFi doesn’t charge any origination fees, application fees, insufficient funds fees or prepayment penalties — it doesn’t even have late fees. That said, missing payments could harm your credit, just as it would on any type of debt.

You could qualify for a very low rate. SoFi offers very competitive interest rates — its lowest rates even beat those on federal student loans. If you or your cosigner has excellent credit, you could qualify for a low-cost student loan.

You can check your rates without harming your credit. As an online lender, SoFi makes it easy to prequalify with an instant rate quote. This rate check only does a soft credit pull, so you don’t have to worry about dinging your credit score. You’ll only consent to a hard credit inquiry — which can lower your credit score slightly for a short period of time — after choosing a loan offer and submitting a full application.

You can qualify for an “unemployment protection” benefit. If you lose your job, SoFi might allow you to place your loan into forbearance for three months at a time, up to a maximum of 12 months total. You won’t have to make payments during this time, but your loan terms won’t get longer, meaning that you’ll have to make increased payments once forbearance ends.

You can put your loan in deferment if you go back to school. Borrowers who go back to school can pause payments through deferment for up to 36 months.

You can benefit from career coaching, networking events and other perks. As a SoFi member, you’ll get access to complementary career coaching, which can help you with your job search, personal branding and other aspects that can help in building your career. You can also access networking events, such as dinners, happy hours and financial education workshops. Benefits like these are rare among student loan lenders.

You could release your cosigner. SoFi allows borrowers to apply for cosigner release after 24 months of full principal and interest payments. Note, however, that cosigner release isn’t guaranteed.

You could get discounted rates on future SoFi loans. If you borrow another SoFi loan in the future, such as a personal loan or mortgage, you could get a rate discount of 0.125%. Plus, you can earn up to $300 for referring others to become SoFi members.

You can borrow a loan in all 50 states. While some other lenders have geographic restrictions, SoFi lends in all 50 states and the District of Columbia.

Disadvantages of SoFi student loans

You might have a tough time qualifying. You or your cosigner will have to meet certain underwriting requirements to borrow from any private lender, including SoFi. While SoFi doesn’t advertise a specific credit score, it says most borrowers have a score of 700 or higher. If you look at SoFi’s reviews on the BBB (the Better Business Bureau) website, you’ll likely see some dissatisfied customers that weren’t able to meet SoFi’s stringent credit requirements.

You might find a longer grace period elsewhere. While SoFi offers the standard grace period of six months, Earnest offers an even longer grace period of nine months. Although delaying repayment will make your loan more expensive, it could be helpful if you’re having trouble finding a job after graduation.

You might be able to find better rates with a different lender. Although SoFi offers very competitive rates, it’s always a good idea to shop around — you never know if you could get even better rates elsewhere unless you look.

You won’t have access to federal benefits. Finally, it’s important to note that SoFi student loans, just like any other private student loan, don’t qualify for federal benefits. You won’t be able to access income-driven repayment plans, or government-sponsored forgiveness programs, such as Public Service Loan Forgiveness. Before turning to any private lender, it’s probably a good idea to max out your eligibility for federal student loans first.

What it takes to qualify for SoFi student loans

When you apply, SoFi reviews your or your cosigner’s credit and income, as well as your financial history, your career experience and your monthly income versus your expenses.

Along with making sure you meet credit and income requirements, SoFi reviews your application to make sure you also meet these criteria:

  • Attend a qualifying school at least half-time. Most four-year public and private degree institutions qualify
  • Be the age of majority in your state, or apply with a cosigner who is
  • Use the loan for qualified educational expenses
  • Make satisfactory academic progress toward your degree
  • Be a U.S. citizen

Note that parent borrowers are not required to be the legal guardian of a student to apply for SoFi’s parent loan.

Are SoFi student loans right for you?

With its low rates, flexible terms and host of member benefits, SoFi could be the lender to meet your financial needs. But it’s always a good idea to look at several lenders, so you can find the private student loan with the best rate or other benefits.

Take advantage of the instant rate quotes that online lenders such as SoFi, Earnest or College Ave Student Loans offer, so you can compare offers without hurting your credit. By doing your lender-research homework, you can feel confident you’ve found a student loan with the lowest costs of borrowing.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Rebecca Safier
Rebecca Safier |

Rebecca Safier is a writer at MagnifyMoney. You can email Rebecca here

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Best Private Student Loan Companies in 2019

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

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Taking out private student loans can be a relatively expensive ways to borrow for school, yet many college students make the mistake of turning to private loans too quickly. From 2015 to 2016, more than half (53%) of undergraduates borrowed from private lenders before maximizing their federal loan allotment, according to the Institute for College Access and Success.

On the other hand, federal loans can only go so far, especially if you are pursuing a postgraduate degree that requires more schooling. Once you’ve tapped out your federal aid, a private student loan could help you fill the gap.

While federal loans offer a relatively uniform application process and loan terms, private lenders’ terms can vary widely. If you’re thinking about paying for school with a private student loan, it’s vital to compare lenders’ offerings to find the one that’s best for you.

How we ranked the best private student loans

There’s a lot to review when you’re shopping around with private lenders. Your annual percentage rate (APR), fees and loan repayment term could impact how much you pay in interest over the lifetime of the loan. Other features — such as a straightforward application process and the option to request that a cosigner be removed from the loan — could also affect your repayment.

We started the search for the best private student loan companies by identifying the 10 largest national private lenders. Each lender’s undergraduate student loan was graded on eight critical factors:

  • Private lenders offer loans with varying interest rates depending on the applicant’s creditworthiness — or that of the applicant’s cosigner. Lenders advertise an interest-rate range that you can use to compare one with another.
  • In this case, each lender was assigned grades based on its lowest and highest APRs compared with the average lowest and highest APRs for all 10 lenders. Each lender received four scores (as they all offer variable-rate and fixed-rate loans), and the lenders with below-average APRs received top marks.
  • Lenders could charge application, origination and prepayment fees based on your loan balance.
  • Although fees are becoming a thing of the past, one of these 10 lenders (CommonBond) still charges a federal-like origination fee when the loan is disbursed.
  • All of the top 10 lenders offer an online application, but the clarity and ease of use can vary. The lenders with intuitive processes, plus pre-qualification offers, got the best grades.
  • Many private student lenders, including all 10 of the lenders we compared, offer a 0.25% interest rate discount if you enroll in autopay. A few lenders earned extra points for also extending a 0.25% interest rate discount to borrowers with a related bank account.
  • Most of the private student loans we compared offered several repayment terms with a maximum of 15 or 20 years. Lenders that feature fewer loan-term options didn’t score as well because they offer less flexibility to borrowers.
  • Most undergraduate students qualify for private loans thanks to a creditworthy cosigner, who can also help reduce the interest rate. Some private student loan lenders let you apply to release your cosigner after you make a given number of consecutive, on-time full principal and interest payments and pass a credit check. Setting the bar for a top score of only 12 payments was the shortest option available among the lenders we compared.
  • You may be able to choose from different repayment plans, such as making interest-only payments while you’re in school or fully deferring payments until your post-school grace period ends. Lenders that offer full interest and principal deferment received top marks.
  • A few lenders earned extra credit because they offer unique perks, such as a principal rate reduction or cash back when you graduate.

After assigning each lender a grade, we ranked them and selected the top five for our “Best Private Student Loan Companies” list.

Our top picks for private student loan companies

 

Sallie Mae

CommonBond

College Ave

Citizens Bank

Wells Fargo

Ranking12345
Variable APR3.12% to 10.54%3.52% to 9.50%2.84% to 10.97%2.90% to 11.16%4.33% to 10.30%
Fixed APR4.74% to 11.35%5.45% to 9.74%4.54% to 11.98%4.72% to 12.19%4.99% to 10.72%
Rate discount0.25% for autopay0.25% for autopay0.25% for autopay0.25% for autopay, 0.25% for having a Citizens Bank account 0.25% for autopay, 0.25 to 0.50% for having a Wells Fargo banking or investment account
Origination feeNo Origination FeesYesNo Origination FeesNo Origination FeesNo Origination Fees
Repayment terms5 to 15 years5, 10 or 15 years5, 8, 10 or 15 years5, 10 or 15 years15 years
Cosigner releaseAfter 12 months of timely paymentsAfter 24 months of timely paymentsAfter half your term has elapsed and after 24 months of timely paymentsAfter 36 months of timely paymentsAfter 24 months of timely payments
PerkReceive study support, plus credit score trackingPause your repayment for up to 12 months after leaving school via economic hardship forbearanceReceive $150 bonus upon graduationReceive approval for multiple years of loans at onceN/A

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on Sallie Mae Bank’s secure website

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on CommonBond’s secure website

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on College AVE’s secure website

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on Citizens Bank (RI)’s secure website

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on Wells Fargo Bank’s secure website

*Rates are current as of Jan. 24, 2019, and may include a 0.25% autopay discount.

#1 Sallie MaeSmart Option Student Loan

Sallie Mae offers a wide range of student loans to undergraduate, graduate and professional students, as well as their parents. That may not come as a surprise though, since Sallie Mae is one of the most widely known private student loan companies. It opened its doors in 1972 as a government-sponsored company before privatizing in 2004.

  • Why it’s our top pick:
    • The undergraduate Smart Option Student Loan has a few standout benefits, such as the option to release a cosigner after making 12 consecutive monthly payments.
    • You can also choose from three in-school repayment plans: full deferment, $25 monthly payments or interest-only payments. And if you’re having trouble making payments after graduation, you can also request to make 12 interest-only payments.
    • Borrowers also get non-loan-related perks, such as quarterly access to one of their FICO credit scores, plus four months of academic support from Chegg.
  • Room for improvement:
    • Overall, Sallie Mae serves borrowers a variety of choices and benefits. However, it doesn’t offer as many potential discounts as some of the other top lenders. Still, if you find you qualify for a lower pre-discount rate with Sallie Mae than another lender, Sallie Mae could indeed be a smart option.
  • Fine print to watch out for:
    • Sallie Mae says it offers repayment terms between 5 and 15 years, but your repayment term depends on a variety of factors, including your loan amount. Unlike with other lenders, you can’t independently choose your repayment term.

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on Sallie Mae Bank’s secure website

#2 CommonBond

Founded in 2012, the student loan refinancing and lending firm CommonBond is perhaps the most giving among competitors. For every loan it funds, it pays for the education of a child abroad. That could among a number of factors that push CommonBond over the top when you’re considering where to borrow for college.

  • Why we like it:
    • Aside from its do-good ways, CommonBond also saves money for its borrowers. It offers for the most part, the lowest rates of any lender under consideration, plus the benefits found at most online-only lenders: a straightforward loan application, flexible repayment terms and responsive customer service.
    • Although it’s not the only lender to offer you the ability to pause your payments once you leave school, it’s also worth noting that CommonBond gives its members up to 12 months of forbearance. That could come in handy if you lose your job or fall on hard times once you’re out in the real world.
  • Room for improvement:
    • CommonBond offers low rates, but it also charges a 2% origination fee. Aside from matching Sallie Mae’s 12-month path to cosigner release, eliminating the fee is CommonBond’s biggest bugaboo. If you decide the lender is right for you, ensure you calculate the added cost of this 2% fee, which is a one-time charge based on your loan amount.
  • Fine print to watch out for:
    • Unlike federal student loan options for deferment and forbearance, CommonBond (like other private lenders) isn’t mandated to grant you a pause on your repayment. You would need to prove that your circumstances are dire enough to be considered.

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on CommonBond’s secure website

#3 College Ave

Founded by former Sallie Mae executives, College Ave is another online-only lender looking to disrupt the student loan industry. It lends to undergraduates, graduate students and parents, plus students attending career schools.

  • Why we like it:
    • College Ave is the only lender among the 10 we surveyed that offers four repayment term options (5, 8, 10 and 15 years). Interestingly, the company says 79% of its borrowers choose plans of 10 years or less, keeping additional interest from accruing during the life of repayment.
  • Room for improvement:
    • We penalized College Ave in our rankings for its slow path to cosigner release. If you agree to borrow on a 10-year term with the lender, you won’t be eligible to apply to remove your cosigner until after the five-year mark. All the other lenders we reviewed offer release within 12 to 48 months.
  • Fine print to watch out for:
    • College Ave contends it takes just three minutes to apply for a loan, but that merely determines whether or not you (and/or your cosigner) are eligible. After prequalifying, you could proceed to the more detailed application process.

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on College AVE’s secure website

#4 Citizens Bank

Citizens Bank is a large traditional bank with over 1,100 branches across 11 states. It offers student loans to undergraduates, graduate students and parents, as well as student loan refinancing.

  • Why we like it:
    • You might need to apply for a student loan at the start of each term. With Citizen Bank’s multi-year approval, however, you could choose to borrow additional money for another term without having to fill out a new application.
    • Also, if you or your cosigner have a qualifying bank account or loan from Citizens Bank, you could be eligible for a permanent 0.25% interest rate reduction on your student loan.
  • Room for improvement:
    • The primary drawback is the 36-payment requirement to apply to release a cosigner. Aside from that, Citizens Bank offers competitive rates, a variety of loan terms and interest-rate discounts that are in line or possibly better than many of the other private student loan companies.
  • Fine print to watch out for:
    • To qualify for cosigner release, you must also submit income statements to prove you can handle repayment on your own.

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on Citizens Bank (RI)’s secure website

#5 Wells Fargo

You’ll likely recognize Wells Fargo, as it’s one of the largest banks in the U.S., but you may not have realized that it offers student loans. It has several different programs, with offerings for community college students, undergraduates, graduates and professional school students.

  • Why we like it:
    • Like many other lenders, Wells Fargo offers a 0.25% interest rate discount if you enroll in autopay. Also, you can get a permanent 0.25% to 0.50% interest rate reduction if you or your cosigner have an eligible Wells Fargo student loan, consumer checking account or Portfolio by Wells Fargo relationship.
  • Room for improvement:
    • Put simply: You’re put in a box. You have to choose a 15-year term for your student loan. If you stick to making your required payment amount, you could wind up paying more in interest than if you took out a shorter loan elsewhere.
  • Fine print to watch out for:
    • Be sure that you make your first full payment on time. If it’s late, you’ll need to make 48 consecutive full payments (rather than 24) before you can apply to release a cosigner.

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on Wells Fargo Bank’s secure website

Determine if a private student loan is right for you

Using our rankings, you might be able to identify the private lender that offers you the best overall loan. However, it’s worth taking a step back to consider all your options before committing.

To do this objectively, come up with the list of criteria that matter most to you. They could vary from the eight criteria that we employed above — your list might emphasize a lender’s customer service, for instance.

When you’re comparing lenders with your criteria in mind, be prepared to weigh them as you see fit. You might not have a cosigner and therefore don’t care if a lender offers a fast path to cosigner release. In that case, you might look past top-ranked Sallie Mae — and its industry-best 12-month policy — to prioritize a lender that offers the lowest rates to independent borrowers.

Finally, confirm that you’re eligible to borrow from most private student loans banks, credit unions and online companies. You might find yourself disqualified, for example, if you’re an international student without a U.S. permanent resident cosigner. Lenders also generally require undergraduates to be 18, to attend school at least half-time and to have solid to strong credit — or to apply a cosigner who does.

Alternatives to private student loans

Almost always, federal student loans should be a borrower’s first choice if he or she has to borrow money. In part, this is because federal loans give you access to forgiveness programs, special repayment plans and guaranteed options to defer payments or put your loans in forbearance.

Also, if you haven’t built credit of your own and don’t have a creditworthy cosigner, federal student loans could be your only option. Most don’t have a credit requirement, and the federal loans for graduate or professional students and parents that do have a credit check don’t vary their interest rate based on your credit.

By contrast, even with a creditworthy cosigner, you may wind up with a higher interest rate if you take out a private student loan. Advertised interest rates can climb into the double digits, while 2018-2019 undergrads could access federal direct subsidized and unsubsidized student loans at 5.05%.

However, there may be times when a private student loan makes sense or could be a necessity. For example, undergraduate federal student loans have annual ($5,500 to $12,500) and aggregate (up to $57,500) borrowing limits that may not be enough to cover all your educational expenses.

Even if your unsure about whether you’re going to take out federal or private loans, complete the Free Application for Federal Student Aid (FAFSA) annually. In addition to being a requirement for federal loans and work-study aid, you may need to submit the FAFSA to qualify for some grants and scholarships.

Secure as much gift aid as you can before resorting to loans of any kind. After all, grants and scholarships don’t need to be repaid.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Louis DeNicola
Louis DeNicola |

Louis DeNicola is a writer at MagnifyMoney. You can email Louis at [email protected]

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3 Best Parent PLUS Loan Refinance Options for 2019

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

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Updated January 29, 2018

Are you a parent still repaying student loans you took out to help your children finance their education? While rising student loan debt totals are concerning for new graduates, Parent PLUS loans can mean similar trouble for older Americans trying to plan for retirement or meet other financial goals.

If you’re in this situation, consider refinancing your Parent PLUS loans to lower your interest rate and make the loan more affordable. Direct PLUS loans have had interest rates ranging from 6% to 8% over the last few years, but some refinance programs have rates as low as 2% to 4%, so there are potentially big savings to be reaped.

Below are three lenders we’ve found to be among the best Parent PLUS refinance programs currently available. We encourage you to check each one out to see which (if any) suit your needs the most, as well as to shop around with multiple lenders. All credit inquiries made within a 30-day period count as one inquiry in the eyes of the credit bureaus, so you don’t have to worry about dinging your credit score.

A Word of Warning on Refinancing

Thankfully, most student loan refinance programs and Parent PLUS refinance programs don’t have fees associated with the loan, so you may not need to worry about paying origination or application fees. However, you should do the math to make sure refinancing is worth the paperwork.

If you extend your repayment term, you’ll have a lower monthly payment, but you’ll pay more interest over the life of the loan. And if you’re trying to retire sooner rather than later, extending your term might not be to your advantage.

Beyond interest rates, you should also be aware that refinancing your federal Direct PLUS loan means giving up federal benefits. Private lenders don’t offer the same repayment plans or forgiveness programs, though some lenders are more flexible about repayment than others.

For example, you’ll no longer have access to the graduated, extended repayment or income-driven repayment plans. Private loans also aren’t eligible for Public Service Loan Forgiveness, and you won’t have access to federal forbearance or deferment, though some private lenders allow you to temporarily pause payments if you run into financial hardship.

If you haven’t been struggling with paying back your PLUS loans, then losing these benefits might not concern you, but it’s a factor to consider. And if you refinance your Parent PLUS loans and later run into financial hardship, make sure to speak with your new lender about any arrangements that can be made.

SoFi Parent PLUS Refinance Program

SoFi is one of the leaders in the student loan refinance industry, and it offers refinancing specifically for Parent PLUS loans.

  • Offers refinancing for a minimum of $5,000 up to the cost of attendance for your child’s school
  • Fixed APRs ranging from 3.46% – 6.88% (with autopay)
  • Variable APRs ranging from 1.81% – 6.88% (with autopay)
  • No application or origination fees, and no prepayment penalties
  • Soft credit inquiry with pre-approval; hard inquiry once you apply for the loan
  • Good credit required, but SoFi also takes employment and credit history into account
SoFi

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on SoFi’s secure website

Laurel Road Bank (formerly known as DRB) Parent PLUS Refinance Program

Laurel Road Bank also offers a Parent PLUS refinance program with low interest rates.

  • A minimum of $5,000 required to refinance, with no maximum amount
  • Fixed rates: 3.50% – 7.02% (with autopay)
  • Variable rates: 1.99% – 6.65% (with autopay)
  • Terms of 5, 7, 10, 15, and 20 years available, though borrowers can request a specific term under 20 years
  • Also offers hybrid loans (mix of fixed and variable rates), but you must inquire about it
  • Child needs to have graduated college and be professionally employed
  • No origination fee or prepayment penalty
  • Available in all 50 states
  • Soft credit check first, and then hard inquiry when you apply for the loan
Laurel Road Bank

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on Laurel Road Bank’s secure website

CommonBond Parent PLUS Refinance Program

CommonBond is dedicated to making the refinance process as simple as possible for student loan refinancing borrowers.

  • Maximum amount offered for refinance is $500,000
  • Fixed APRs ranging from 3.67% to 7.25% (with autopay)
  • Variable APRs from 2.50% to 7.24% (with autopay)
  • Hybrid APRs (5 years at fixed, then 5 years at variable) also offered
  • No application or origination fees, and no prepayment penalties
  • 5-, 7-, 10-, 15- and 20-year terms available (hybrid loans offered on a 10-year term)
  • Temporary loan forbearance is available if certain requirements are met
  • Soft credit inquiry first, then hard credit inquiry if you apply for the loan
CommonBond

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on CommonBond’s secure website

Keep in mind some lenders, such as SoFi, CommonBond, and Laurel Road Bank, offer the option to transfer your PLUS loans to your child. If your child can handle making the payments, you might take advantage of this opportunity to get the debt out of your name.

Although these three lenders offer some of the most competitive rates for refinanced Parent PLUS Loans, keep an eye out for other refinancing providers as well. You might find a different lender with even better rates and terms for your loan.

You can also check with your local credit union to see if they have any options available, but be sure the math works out in your favor, as some aren’t offering the best rates. Don’t forget — it’s worth shopping around to find the most savings!

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Erin Millard
Erin Millard |

Erin Millard is a writer at MagnifyMoney. You can email Erin at [email protected]

Rebecca Safier
Rebecca Safier |

Rebecca Safier is a writer at MagnifyMoney. You can email Rebecca here

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