Lender Profile: SoFi Parent Loans
SoFi offers parent loans for parents and guardians of students. Unlike many other private parent loans, SoFi does offer the option of having another parent or guardian cosign the loan. However, there is no cosigner release.
Find out more about SoFi Parent loans below!
SoFi Parent Loan Summary
|Types of Loans Available||Private Parent Loans|
|Private Student Loan||Not Available|
|Cosigner Release||*A parent or guardian must take out the loan, and another parent or guardian may cosign
*No cosigner release
|Prequal Without Credit||Yes|
|Borrowing Amount||Minimum: $5,000
Maximum: Cost of Attendance
|Repayment Length||5 or 10 years|
|Interest Rates||Variable: 4.33% - 7.755%
Fixed: 4.25% - 8.00%
|Fees||No fees for application, origination or early payoff|
|Benefits||0.125% interest rate reduction with SoFi membership
0.25% interest rate reduction with autopay
|Repayment Terms||Full repayment right away|
|Hardship Options Available||SoFi will review additional options with you if you encounter hardship.
Death and disability forgiveness is available unless there is a cosigner. The cosigner is still responsible.
About Parent Loans from SoFi
SoFi focuses primarily on refinancing existing loans, so they do not offer private student loans as a new-debt product. However, they do offer parent loans for those wanting to borrow to help their student attend school.
The parent loans from SoFi are available in 5 or 10-year repayment lengths. These parent loans are immediate-repayment only, so keep that in mind as you make your selections. You can borrow from $5,000 up to the cost of attendance for the school.
SoFi allows you to borrow for one academic year at a time. This means that if you borrow to support subsequent loans, you’ll have to do a new credit check each time, and each loan will be separate.
With SoFi, you can get a sense of what your interest rate will be with a soft credit check. This will not show as a credit check on your report. If you move forward with your application, there will be a regular credit check which will show on your report.
To qualify for a SoFi Parent Loan, you must be:
- The parent or guardian of a full-time student at an eligible school
- A U.S. Citizen or permanent resident with more than 2 years until expiration
- At least 18 years old
- At a permanent residence in one of the states SoFi is authorized for
Interest Rates and Fees for SoFi Parent Loans
With a SoFi parent loan, you can choose between variable and fixed interest rates when you apply. The rates you receive depend on the term of the loan, amount borrowed, and creditworthiness.
Variable rates range between 4.33% – 7.755% and fixed rates are between 4.25% – 8.00%. There are no fees for application, origination, or early repayment.
There are two interest rate reductions you can access if you borrow from SoFi. If you are a SoFi member, you get a 0.125% rate reduction. You can also get an additional 0.25% interest rate reduction by enrolling in automatic payment.
Repaying a Parent Loan from SoFi
SoFi parent loans are very straightforward – you start repayment right away. The first payment is due 30 – 45 days from the disbursement of the loan.
If you have another parent or guardian cosign the loan, there is no cosigner release. You would need to refinance the loan in your own name in order to remove a cosigner.
If you face financial difficulty in repaying your SoFi parent loan, contact the lender. They will be able to review your options and see what they can do to help you get back on track. If the borrower dies or is disabled, the debt is forgiven unless there is a cosigner. A cosigner would still be responsible for the loan.
Review other profiles of private loan lenders.
Keep School Affordable!
Knowing your loan options is only part of the puzzle. It’s also vital to choose a generous school and take other steps to keep college costs low. If you’re still reviewing schools, find out which ones are best for your family with our toolkit today!
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