How To Save THOUSANDS in Student Loan Debt: SoFi Student Loan Refinance Review
How Often Can You Refinance Student Loans – Review
Are you sick of your student loan debt? Are you considering student loan refinancing to make your payments smaller? Or are you trying to pay your student loans off faster? We’re going over how to save THOUSANDS in student loan debt with a SoFi student loan refinance review.
So, if you’re wondering, should I refinance my student loans, this video is for you.
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In the past several years, SoFi has turned into one of the largest student loan companies. They are trying to dominate the market by providing the best college loans.
SoFi Student Loan Rates
The first thing I want to just briefly touch on is what the student loan interest at SoFi looks like. For fixed-rate student loans, the interest rates range from 3.5% to 12%. Variable-rate student loans range from 2.4% to 11.7%.
If you want to check out what your student loan interest rate might look like, I have a link in the description that will take you to the student loan page.
The real benefit of autopay is that you don’t miss a payment and get hit with late fees. You also don’t have late payments showing up on your credit report.
Student Loan Fees and Penalties
SoFi charges no fees whatsoever — no origination fees, insufficient fund fees or late fees.
Student Loan Repayment Options
SoFi has 4 ways that you can pay them back when you graduate.
Deferred Student Loans
This allows you to make no payments on your student loans for 6 months after graduating. Deferred student loans could be beneficial if you’re strapped for cash after graduating.
So, only consider deferring student loans if you are struggling to find a job, are having to pay a lot of moving expenses to relocate for a job, or you’re allocating your money to paying down higher-interest debt like a credit card.
If you choose the deferred repayment plan, you will be charged the highest interest rates.
Interest Only Student Loans
While you’re in school, the amount you owe in student loans IS accruing interest. Each month, the interest is being added to your student loan balance. This means that while you’re in school, your student loan debt is growing.
Making interest only student loan payments while you’re in school will make your balance, and monthly payments, lower when you graduate.
Partial Student Loan Payment
Just like with interest-only student loan payments, partial student loan payments chips away at how much you owe while you’re in school.
With this plan, you’re only paying a flat amount of $25 per month.
These two plans would allow you to reduce student loan debt so that you can pay off student loans fast.
This means that your student loan payments kick in the month after you receive the funds. If you can swing this, it can save you about 35% on the total loan amount that you pay off.
You’ll end up paying off student loans early.
When you refinance student loans with any lender, you lose the protections offered by Federal student loans.
People who refinance student loans with SoFi cannot opt for an income-based repayment plan.
SoFi does have a student loan forbearance program if you’ve become unemployed.
SoFi also offers student loan deferment plans for borrowers who return to graduate school, undergo disability rehabilitation, or serve on active military duty.
BUT during either deferment or forbearance interest continues to accrue on the loan.
Federal student loans do offer this protection.
These personalized services can help push you towards a higher income and help you pay back student loans faster.
Refinancing your federal student loans means that you’re losing your loan forgiveness. So, the main question you should be asking is does SoFi have a student loan forgiveness program?
Does SoFi Have A Student Loan Forgiveness Program
When you refinance federal student loans with a private lender like SoFi, you lose access to federal student loan protection.
These programs offer perks like an income based student loan repayment and student loan debt forgiveness.
But, if you need student loan debt relief, not all is lost.
While SoFi does not forgive student loans, they do offer some protections that can be helpful if you have a change in plans or an unexpected life event.
Student loan deferment.
Deferring student loans allows you to temporarily stop making your student loan payments. In some cases, you can temporarily reduce the amount of your student loan payments.
Student Loan Application Process
The student loan application process through SoFi can be completed entirely online. You can apply and get a decision within minutes.