SoFi

SoFi Review

SoFi (short for Social Finance) is an online personal finance company that provides student loan refinancing, mortgages and personal loans. SoFi has funded over $30 billion in loans to over half a million customers since the company was established in 2011. Founded in San Francisco by four friends who met at the Stanford Graduate School of Business, SoFi’s goals from the beginning has been to provide more affordable options for those taking on student debt.


Originally SoFi utilized alumni investments to generate borrower funds, but as the company grew, they moved on to a non-traditional underwriting approach to fund loans.

The loan application is online, and those who apply with SoFi receive a decision within minutes.

Why SoFi?

SoFi offers the unique opportunity to take out a loan on both a fixed and a variable-rate. While most borrowers opt for a fixed-rate term, some borrowers, especially those who are taking out a shorter length loan, choose a variable rate to save money on interest. SoFi offers a lower APR to borrowers who set up automatic payments.


There are zero fees when taking out a loan with SoFi.


Yes, you heard that right.


With Sofi, there are no origination, pre-payment or late fees.

SoFi offers unemployment protection for up to 12 months after you lose your job in addition to flexible payment features. SoFi provides live customer support 7 days a week.

What you need to know:

  • SoFi is an ideal lender for those with good or excellent credit. The minimum credit score for SoFi borrowers is 680—the average credit score is 700
  • The average annual income of a SoFi borrower is $100,000
  • SoFi borrowers should be seeking a loan between $5,000-$100,000
  • SoFi borrowers are expected to pay back their loans in 2-6 years
  • APR starts at 6.26% (with automatic repayment)

SoFi is not for:

  • Borrowers with average or bad credit
  • Borrowers with a low annual income
  • Borrowers wanting to take out less than $5,000
  • Borrowers who want to pay back their loan quickly
  • Borrowers who want a quick application process- the online application is long and time-consuming