Sofi Lending

[MsIndependent]

Sofi lending came up in a "customized" ad on credit score app. Rates seem fair enough. Anyone have any experience with consolidating private loans. Just curious as to what interest you were given. Also, if you have Sallie Mae loans, what is fair?

[hodap2001]

Sofi or Social Finance is a new player in the private student loan market place created by Stanford Business School Graduates who primary goal is to play a pivotal role in the private student loan market by offering lower interest rates and flexible repayment terms which is unheard of from traditional banks. In addition, they are willing to consolidate both Federal Student Loans and Private Student Loans together. They offer both variable and fixed interest rates for consolidation (refinance). The company seems to be doing quite well - maybe someone here on the boards have used their services?

 

I would do a little bit more research before I would pull the trigger with consolidating with them.

[MsIndependent]

Sofi or Social Finance is a new player in the private student loan market place created by Stanford Business School Graduates who primary goal is to play a pivotal role in the private student loan market by offering lower interest rates and flexible repayment terms which is unheard of from traditional banks. In addition, they are willing to consolidate both Federal Student Loans and Private Student Loans together. They offer both variable and fixed interest rates for consolidation (refinance). The company seems to be doing quite well - maybe someone here on the boards have used their services?

 

I would do a little bit more research before I would pull the trigger with consolidating with them.

Agreeing on the last point. Thank you! I only want to consolidate my three private loans at a lower interest rate. It has been years since I have seen any lender offering to consolidate a private loan, so I was curious.

 

The variable rates are scary and could leave me in a much worse position than I am now. I'll continue researching and will post anything noteworthy. If anyone else has any information, please feel free to post your findings and/or advice.

[hodap2001]

Keep us updated and good luck!

[JoeDirtPharmD]

So far, SoFi is legit for us: consolidating both federal and private loans. Plenty of lenders out there to consolidate private loans, first one to do so with federal that we've found.

 

Wife is consolidating into SoFi as of Monday. She owes about $209k to Direct Consolidation with a rate of 7.3% for 30 years (has 27 more to go). She qualified for 6.2% fixed for 15 years, so total payment only goes up about $300/mo and looks like total interest paid over the life of the loan is going to be reduced by $204,000 (total interest paid will be $113k vs. $317k). Whereas if she paid an extra $300/mo with her current loan/rate, she'd be out $196k in interest, so that 1% savings by wrapping everything up through SoFI makes sense for us.

 

Start to finish took about 2 weeks. We didn't want to gamble on variable rate. Lucky for me, I wrapped up my $132k in loans at 2% for 30 years so those aren't going anywhere anytime soon.

Edited April 25, 2014 by JoeDirtPharmD

[hodap2001]

Good Luck with SoFi and I hope that you fully understand that once you consolidate your Federal Student Loans that you no longer have the same consumer protection as you would if your Federal Loans remained with the Federal Government. You will no longer be eligible for deferments or forbearance or any of the discharge programs.

 

I wish you the best - but you are losing out on major (HUGE) consumer protections by consolidating your Federal Student Loans with SoFi.

[JoeDirtPharmD]

Understood - we always seem to be excluded from the .gov's fanciful discharge programs. We have other stop gaps in place in the event something occurs that reduces our income, so with regards to consumer protections, SoFi does offer some relief assistance in specific instances, though we choose to forsake those protections in favor of the interest we're saving (risk vs. benefit). I would agree that if folks do not have the appropriate means to be consistent in their repayment, then forgoing the Federal protections is not in their best interests.

[hodap2001]

Understood and good luck and thank you for sharing your experience with SoFi! - truly appreciate hearing about your experience with SoFi so I can share the information to others who may also be interested in SoFi.

[MsIndependent]

So far, SoFi is legit for us: consolidating both federal and private loans. Plenty of lenders out there to consolidate private loans, first one to do so with federal that we've found.

 

Wife is consolidating into SoFi as of Monday. She owes about $209k to Direct Consolidation with a rate of 7.3% for 30 years (has 27 more to go). She qualified for 6.2% fixed for 15 years, so total payment only goes up about $300/mo and looks like total interest paid over the life of the loan is going to be reduced by $204,000 (total interest paid will be $113k vs. $317k). Whereas if she paid an extra $300/mo with her current loan/rate, she'd be out $196k in interest, so that 1% savings by wrapping everything up through SoFI makes sense for us.

 

Start to finish took about 2 weeks. We didn't want to gamble on variable rate. Lucky for me, I wrapped up my $132k in loans at 2% for 30 years so those aren't going anywhere anytime soon.

 

Greatly appreciate the informed and detailed feedback! I'm at 7.25% variable interest on my three private loans, so a fixed interest rate would be ideal. Would love to PIF in 7 years or less, with no penalty (on a 15 year) and reduced interest. If something goes awry with my circumstances, then I can just revert to the actual 15 year plan.

 

Did they pull all three reports or just one (same one for both of you?)? Any prepayment penalties for either (or both) of you?

[hodap2001]

I sent a PM to Joe so hopefully he will give you feedback on your questions about SoFi and their process - stand by Ms.

[MsIndependent]

I sent a PM to Joe so hopefully he will give you feedback on your questions about SoFi and their process - stand by Ms.

Thanks!

[JoeDirtPharmD]

Heya!

 

So, I didn't apply for the refi, just the wife. They didn't consider household income or require both of us to apply. My loans were consolidated with Chase back in 2005 before the economy crapped out and the ACA required gov't-involved consolidation nonsense.

 

That said, it looks like they pulled EQ for her (747 FICO) - not sure what score they're looking for to get at 5.99%?! I can't say for certain about EX or TU, since we're not actively monitoring those reports for her, but we're actually getting a HELOC next week for a pool and if I find they pulled those reports as well I'll let you know.

 

There are no pre-payment penalties, but it also doesn't look like an option to swap from variable- to fixed-rate; I think you have to choose from the beginning.

 

If you apply, keep on them. Their initial reply (via email) was that we would hear back within 5-7 days, but I had the wife call after a week and it sounded like things hadn't progressed very far on their end. It was about the 2 week mark before she got a 'congrats you're fully approved' email with the option to begin on May 1 or June 1. She did say they are very friendly and accommodating, but senses that it's a small office and some of their workflow processes are still maturing.

 

Once the ink has dried on all the paperwork and we see that her Direct Consolidation loans are paid off, I'll give additional updates. In the meantime, if you have any other questions or concerns, let me know!

 

 

 

So far, SoFi is legit for us: consolidating both federal and private loans. Plenty of lenders out there to consolidate private loans, first one to do so with federal that we've found.

 

Wife is consolidating into SoFi as of Monday. She owes about $209k to Direct Consolidation with a rate of 7.3% for 30 years (has 27 more to go). She qualified for 6.2% fixed for 15 years, so total payment only goes up about $300/mo and looks like total interest paid over the life of the loan is going to be reduced by $204,000 (total interest paid will be $113k vs. $317k). Whereas if she paid an extra $300/mo with her current loan/rate, she'd be out $196k in interest, so that 1% savings by wrapping everything up through SoFI makes sense for us.

 

Start to finish took about 2 weeks. We didn't want to gamble on variable rate. Lucky for me, I wrapped up my $132k in loans at 2% for 30 years so those aren't going anywhere anytime soon.

 

Greatly appreciate the informed and detailed feedback! I'm at 7.25% variable interest on my three private loans, so a fixed interest rate would be ideal. Would love to PIF in 7 years or less, with no penalty (on a 15 year) and reduced interest. If something goes awry with my circumstances, then I can just revert to the actual 15 year plan.

 

Did they pull all three reports or just one (same one for both of you?)? Any prepayment penalties for either (or both) of you?

 

[hodap2001]

Thanks Joe for the update!

[JoeDirtPharmD]

Updating with corrected information. When I said they pulled EQ, what I meant was they pulled EX Apparently I need to pay better attention.

 

Electronic documents received today, 26 pages in all. Mostly legalese about cutting off limbs if you default, and disclaimers about the rights you forfeit by exiting out of a government-backed loan. The last page is the credit info sheet, which shows Experian as the bureau used for the application.

 

Interesting that DW's score is a 776 per their documentation with 5+ years employment, $300k annual household income, spotless report, < 15% utilization, decent DTI, multiple mature installments, etc., and that didn't earn the best possible rate of 5.99%. Came close, though. Makes me wonder what the hell one has to do to get the best rate?

 

Anyways, all it requires is an electronic signature and we're good to go. Let me know if anyone else has any questions about the process.

Edited May 2, 2014 by JoeDirtPharmD

[20something]

Does SoFi offer any forbearance/deferment features other than the 12 month "help you find a job" thing?

 

I have 3 private loans with high interest rates - around 10% - and 5-7k each, but they offer me 2 to 3 years of forbearance which is an amazing thing to have in case the job market gets awful again.

 

I'm not sure I'd be willing to jump ship for the less interest, when they're only going to give me 12 total months of forbearance and in 3-month intervals.

[hodap2001]

Based upon my limited review of SoFi that is the only consumer protection they offer - I was unable to locate any other information to postponement of payments with SoFi. May Joe can chime in when he/she has a chance.

[JoeDirtPharmD]

Here's a couple excerpts from the contract

 

3. NOTICE ABOUT FEDERAL LOANS AND CERTAIN PRIVATE LOANS THAT I CHOOSE TO INCLUDE WITH THIS PRIVATE LOAN CONSOLIDATION

(a). Loss of Grace Period on My Federal and/or Private Student Loan upon Consolidation. If any of the loans that I have selected for consolidation are in a grace period, I will lose that grace period except in instances where you have extended my first payment due date to align with the grace period on the loans I am consolidating. My SoFi Lending Corp. ReFi Education Loan will be processed and any selected loans that are in a grace period will enter repayment immediately upon consolidation except in instances where you have extended my first payment due date to align with the grace period on the loans I am consolidating .

( b ). Loss of Deferment Entitlements and Forbearance Options on My Federal and/or Private Student Loan upon Consolidation. If any of the loans that I have selected for consolidation is a loan made under the Federal Family Education Loan Program (“FFELP”) or the Federal Direct Loan Program (“FDLP”), I understand that I will lose all of my federal deferment entitlements and forbearance options accorded to me under these programs. If any of the private loans I have selected for consolidation is a private loan made by a state or state-sponsored agency, I understand that I will lose all state-mandated deferment entitlements and forbearance options accorded to me under such programs. However, I understand that the deferment and forbearance options that you provide under this Agreement are as described below in Paragraph H. If any of the private loans I have selected for consolidation is currently in a period of deferment or forbearance, my SoFi Lending Corp. ReFi Education Loan will be processed and any included loans that are in a deferment or forbearance status will enter repayment immediately upon consolidation.

( c ). Loss of Loan Forgiveness Options. If any of the loans that I have selected for consolidation is a loan made under the Federal Family Education Loan Program (“FFELP”) or the Federal Direct Loan Program (“FDLP”), I understand that I will lose all eligibility for any federal loan forgiveness programs including but not limited to loan forgiveness programs directed to borrowers pursuing careers in Public Service, Teaching and/or the Armed Forces. If any of the private loans I have selected for consolidation is a private loan made by a state or state-sponsored agency, I understand that I will lose all state-mandated loan forgiveness options and loan cancellation provisions that are similar but not limited to those mentioned herein.

... <goes on to talk about loss of income-contingent repayment, consolidation with .gov, loss of interest subsidy made under FFELP>

 

Goes on to state...

 

 

H. DEFERMENT, FORBEARANCE AND LOAN DISCHARGE

1. In the event that I experience a financial or other hardship and am unable to make my regular monthly payments, or in the event I return to school after obtaining this Loan, but only for the purpose of obtaining a graduate degree and not for obtaining an additional undergraduate degree or license, you may offer certain deferment and forbearance options. Requests for forbearance must be submitted in accordance with your reasonable procedures and requirements, and the decision to grant my request for forbearance shall be solely at your discretion. I may obtain copies of deferment or forbearance request forms that explain the eligibility and documentation requirements for the type of deferment or forbearance I am requesting by sending an e-mail request to CustomerService@sofi.org or mailing your office a request at P.O. Box 29372, San Francisco, CA 94129-0372 or any future address or electronic method you provide to me. If I am in default on my Loan, I may not be eligible for a deferment or forbearance.

2. Deferment.

(a) Return to School. Deferments are available to me if I return to an eligible school on at least a half-time basis to obtain a graduate degree only, if (i) I submit documentation of my eligibility for the deferment, or (ii) you receive other credible information from a third party that I am enrolled at least half-time at an eligible school to obtain a graduate degree. If you grant me a deferment under this paragraph 2(a), I understand that I will be responsible for making interest only payments during such deferment period. If you grant me a deferment based on information you obtain from a third party, you will notify me of the deferment and I will have the option of canceling the deferment and continuing to make payments on the Loan. I understand that Deferment granted specifically for returning to school after my Repayment Period begins is limited to a maximum of thirty-six (36) months.

( b ). Other Deferments. Deferments are also available to me if (i) I am enrolled in an approved full-time disability rehabilitation program, or (ii) if I am serving on active duty during a war or other military operation or national emergency or performing qualifying National Guard duty during a war or other military operation or national emergency, and for an additional 180-day period following the demobilization date for my qualifying service.

3. Forbearance. You may give me a forbearance in three (3) month increments if I am temporarily unable to make my scheduled loan payments for reasons including, but not limited to: financial hardship, unemployment, or illness. Under certain circumstances, you may also give me forbearance without requiring me to submit a request or documentation. These circumstances include, but are not limited to, the following: periods necessary for you to determine my eligibility for a loan discharge, a period of up to sixty (60) days in order for you to collect and process documentation related to my request for a deferment, forbearance, change in repayment plan, or a local or national emergency (interest is not capitalized during this period).

4. Payments during Deferment or Forbearance. During any period of deferment or forbearance, regularly scheduled payments of principal and interest on my Loan may be deferred. Except as described above, I understand that I will remain responsible for all interest accruing during any period of deferment or forbearance and that you may add any interest that I do not pay during any deferment or forbearance period to the principal balance as described in Paragraph E.2. I understand that my Repayment Period as defined in Paragraph D.9 is inclusive of any forbearance periods unless prohibited by applicable law.

5. Loan Discharge Provisions. You will discharge (forgive) my Loan if (a) I die and you receive acceptable documentation of my death consisting of a certified copy of my death certificate or other documentation acceptable to you; or ( b ) if I become totally and permanently disabled (“TPD”) as defined below. In order to establish total and permanent disability I must demonstrate to your satisfaction that I am unable to engage in any substantial gainful activity due to a physical or mental impairment that: (i) can be expected to result in death; (ii) has lasted for a continuous period of not less than sixty (60) months; or (iii) can be expected to last for a continuous period of not less than sixty (60) months. A doctor of medicine or osteopathy, authorized to practice in the United States, must describe and certify my TPD status on your TPD discharge application form.

Edited May 2, 2014 by JoeDirtPharmD

[20something]

Interesting... it states that forbearance may be granted in 3 months increments, but doesn't seem to state the total amount allowed over the life of the loan.

[hodap2001]

Hey Joe,

 

The disclosure listed above, is this from their website or from the Master Promissory Note?

[JoeDirtPharmD]

This was copied/pasted from the MPN that we received, so not publicly available. Thus, the caveat is that terms/conditions are subject to change at any time from what's posted above so folks should certainly read before they sign.

 

Let me know if you need any more information from our MPN.

[hodap2001]

Thanks Joe for the additional information!