Celebrating 10 years! 2007-2017

SoFi Loans

Anyone try using SoFi or other similar private lenders to re thelegalwhore06/10/15
I refinanced through Sofi - got a great fixed rate over 5 ye nonlinearjdmba06/11/15
I refinanced with Sofi. I had $47,000 in federal loans at 6 hous09/11/15
I get stuff from them in the mail all the time. I assume tha perkinwarbeck06/11/15
I also refinanced with SOFI. I wasn't using any federal pro legaleagle567806/16/15
I'm going to try to see what kind of rate they can give me t perkinwarbeck09/11/15
It may be difficult refinancing 20k because its a relatively hous09/13/15
I've been so tempted to refinance with them. But IBR is such thirdtierlaw09/11/15
Trading away IBR is an absolute non-starter for me, although loblawyer09/13/15
That is what makes it so tricky for me. I could probably go thirdtierlaw09/13/15
I absolutely would not refinance if I were in your shoes. hous09/13/15
Exactly. No private lender offers the government-defined "I qdllc09/14/15
Question - does SOFI refinance private loans? If so, does a ilovethelawjk09/14/15
Yes, sofi refinaces private as well as federal loans. hous09/14/15
I may look into doing that to get the rate down some. I w bittersweet09/14/15
I was very scared of letting go of IBR, even though over las nycatt09/15/15
Sofi's answer to IBR is not just forbearance, but career ser onehell09/15/15
Many of you on jdunderground (including myself) will not qua canon8309/16/15
I went to a lower T1, made 65k, and refinanced 50k worth of hous09/17/15
sorry to clarify, i was referring to loans in the six figure canon8309/17/15
What happens if you default? What is the SOL? thelegalwhore08/20/16
Refinancing a qualified education loan with a private lender fettywap08/20/16
Tried Sofi tonight. They don't seem to offer much in the way perkinwarbeck01/08/17



thelegalwhore (Jun 10, 2015 - 10:38 pm)

Anyone try using SoFi or other similar private lenders to refi their student debt? What happens if you refi, default and file for bankruptcy?

Reply Like (1)
nonlinearjdmba (Jun 11, 2015 - 2:46 pm)

I refinanced through Sofi - got a great fixed rate over 5 years (~4.5% after auto-pay incentives vs. by 6-8.5% on the feds). I also refi'd after that for an even lower rate. The refinancing company simply paid off SoFi in full - easy cheesy. Apart from credit abomination, not sure about what happens if I default.

I read an interesting article about the refi business. Seems like private companies are "skimming" the top of the pool from the feds. It's a strange world. Have a look: http://finance.yahoo.com/news/student-loan-refinancing-boom-could-120000166.html?soc_src=mail&soc_trk=ma

Reply Like (0)
hous (Sep 11, 2015 - 7:52 pm)

I refinanced with Sofi. I had $47,000 in federal loans at 6.8% that I refinanced down to 3.8% adjustable. You lose eligibility for IBR, PSLF, and PAYEE so its not for everyone. I hear that if something were to happen to you in terms of death or disability, private lenders are under no obligation to write off the debt whereas the federal-backed servicers would, so that should also be considered. Overall, I'm very happy with my decision to refinance and its saving me a lot of money.

If you do decide to refinance, make sure you use someone's referral code because you each get $100 if you accept their offer. You can use mine if you want: https://www.sofi.com/refer/234/11233

Reply Like (0)
perkinwarbeck (Jun 11, 2015 - 2:51 pm)

I get stuff from them in the mail all the time. I assume that since I'm not actually in a position to pay back the debt, that they can't do anything for me. They can't possible offer something better than IBR or PSLF.

Reply Like (0)
legaleagle5678 (Jun 16, 2015 - 4:31 pm)

I also refinanced with SOFI. I wasn't using any federal programs, paying my loans back over 10 years I just wanted a better rate. I was very happy, the process was simple and took maybe 3 weeks from the first contact till they paid off my loans.

Reply Like (0)
perkinwarbeck (Sep 11, 2015 - 5:03 pm)

I'm going to try to see what kind of rate they can give me this evening. Most of my debt is in IBR federal loans, but I also got loan directly from the law school with a 5% interest rate and a bar study loan. I'm hoping that since they'll count my wife's income as a cosigner and since the debt is relatively low (20k), they'll give me a nice interest rate. If you add our incomes, we're on 130k a year right now.

It's funny though. I thought I was being responsible and getting a benefit when I took that loan from the law school. The interest rate is 5%, compared to the 6.8 on all the various federal loans. But, it's been much harder to deal with because it didn't get lumped into the IBR pile. Also, the Agency I work for now has a loan repayment assistance program, but they don't do private loans.

Reply Like (0)
hous (Sep 13, 2015 - 11:22 pm)

It may be difficult refinancing 20k because its a relatively small amount. Do keep me updated as to whether they give you an offer. Good luck!

Reply Like (0)
thirdtierlaw (Sep 11, 2015 - 7:27 pm)

I've been so tempted to refinance with them. But IBR is such a good deal and I'm so afraid that they'll allow us to refinance with the gov to a lower interest rate I can't bite the bullet.

Reply Like (0)
loblawyer (Sep 13, 2015 - 11:17 am)

Trading away IBR is an absolute non-starter for me, although I am guessing most who make that statement would not be approved anyway.

Reply Like (0)
thirdtierlaw (Sep 13, 2015 - 11:41 am)

That is what makes it so tricky for me. I could probably go off IBR right now and be fine. (I'm overpaying each month). But if the phone stops ringing, wife loses her job, or whatever else mikes it hard to throw away the saftey net.

Reply Like (0)
hous (Sep 13, 2015 - 12:04 pm)

I absolutely would not refinance if I were in your shoes.

Reply Like (0)
qdllc (Sep 14, 2015 - 7:27 am)

Exactly. No private lender offers the government-defined "IBR/ICR" plan. Their "income sensitive" plan ALWAYS means you must pay the interest...maybe just no principle.

If you are on a non-IBR/ICR repayment plan, they might do well for you, but if you're stuck with IBR/ICR to get by, they don't want you.

This tells me government's going to be stuck holding all the "toxic" student loan debt in a few years.

Reply Like (0)
ilovethelawjk (Sep 14, 2015 - 12:40 pm)

Question - does SOFI refinance private loans? If so, does anyone have experience doing such?

Reply Like (0)
hous (Sep 14, 2015 - 1:59 pm)

Yes, sofi refinaces private as well as federal loans.

Reply Like (0)
bittersweet (Sep 14, 2015 - 3:31 pm)

I may look into doing that to get the rate down some.

I was looking at Earnest, but they wanted ridiculous things like my online bank login and password. Like that's gonna happen - HA!

Reply Like (0)
nycatt (Sep 15, 2015 - 12:24 pm)

I was very scared of letting go of IBR, even though over last seven years I never needed it. The way I see it, I am taking a bet on myself. Lowering my rate from 7.15% to 5.35 means my loan will be paid off soooo much faster; I am so glad I did it. 7.15% is the worst.

Reply Like (0)
onehell (Sep 15, 2015 - 1:28 pm)

Sofi's answer to IBR is not just forbearance, but career services. They call it "unemployment protection," whereby they actually try and help you find a job rather than just starting a clock and calling you a deadbeat if the clock runs out before you find other work:

https://www.sofi.com/blog/student-loan-forbearance-dont-just-postpone-payments-get-career-back-track/

That sounds good at first. HOWEVER, when you click to their member stories and look at the stuff they report from people who used them for career services, a pattern clearly and quickly emerges:
https://www.sofi.com/member-stories/

Harvard, Stanford, Chicago. I think the lowest-ranked school I ran across was UT-Austin.

I get the sense that refinancing with these guys is like applying for a job in and of itself - they are evaluating each applicant individually and they're only taking on people who they think are individually good risks.

I think that since they have the luxury of not being the initial lender, and only refinancing people who went to great schools or who are otherwise unlikely to be unemployed, then the reasons to make the loans almost discharge-proof have disappeared. If it were up to me, these things would not count as student loans at all and would not be subject to the hardship test. Of course, then they'd get even more selective but still. The whole point of making private student loans discharge proof was to convince lenders to lend to people who would otherwise be too risky. But congress in making that decision was thinking of people still in school whose prospects are unknown. Remove so much of the risk by lending only to people who have established themselves postgrad, and you remove the reason for the special treatment, which for private loans was questionable in the first place given that most private lenders demand cosigners.

I would say that these guys should build in to the promissory note that they will agree not to argue that this is a student loan if it is listed in a bankruptcy. If they did that, only then could I see giving up the prospect of the IBR safety net.

Reply Like (0)
canon83 (Sep 16, 2015 - 8:38 pm)

Many of you on jdunderground (including myself) will not qualify. SOFI is another player in the private lending business that looks to quickly and efficiently securitize the fixed payments that originate from these loans. As such, there is a rating component, otherwise they could not be sold in the capital markets.

You must demonstrate to their underwriters that you will not default. T-14, big law, above average credit, and history of sufficient and steady income. I have a friend in medical who refinanced 450K and saved about 35K. But she fits most of the above criteria and makes 200K plus yearly.

Reply Like (0)
hous (Sep 17, 2015 - 12:37 am)

I went to a lower T1, made 65k, and refinanced 50k worth of student loans. Its not as difficult to get refinancing through Sofi.

Reply Like (0)
canon83 (Sep 17, 2015 - 10:32 am)

sorry to clarify, i was referring to loans in the six figures. you probably have good credit and a history of stable income. 50K is not hard to refi if you're making 65K.

Reply Like (0)
thelegalwhore (Aug 20, 2016 - 11:20 am)

What happens if you default? What is the SOL?

Reply Like (0)
fettywap (Aug 20, 2016 - 2:44 pm)

Refinancing a qualified education loan with a private lender does not make it eligible for bankruptcy. You can't get rid of it in bankruptcy. SOL is whatever it is in your state.

Reply Like (0)
perkinwarbeck (Jan 8, 2017 - 6:45 pm)

Tried Sofi tonight. They don't seem to offer much in the way of interest rate improvements. My two existing non-federal loans have interest rates of 5 and 5.6%. I was hoping that Sofi would offer me a significantly lower rate, perhaps around 3 percent. However, a 7 year variable option gets me below 5% right now.

I added my spouse as a co-signer, but it didn't appear to change the offer. I didn't see a place to put down her income.

Has anyone tried any other companies?

Reply Like (0)
Post a message in this thread