As uncertainty grows around how the federal government plans to address student loan debt concerns, SoFi, the digital personal finance company, announced the launch of a new loan program to help ease borrower distress. Since March 2020, the federal government has paused interest and monthly payments for federal student loan borrowers in response to the COVID-19 pandemic. As the federal moratorium on this is set to expire on September 30, borrowers are searching for clarity around on how federal policy decisions will impact them and whether or not they will qualify for future assistance, if any.
Fortunately, starting today, borrowers have the unique opportunity to refinance, at historically low rates, some or all of their federal student loans without making monthly or interest payments until October 2021, through SoFi. The company’s new program provides federal borrowers the opportunity to continue benefiting from the government’s temporary pause on student loan repayments while also locking-in a historically low interest rate that will be ready for them once the federal moratorium ends. Refinancing now helps alleviate the potential risk of interest rates rising in the fall.
“With SoFi, borrowers don’t have to live with uncertainty, they can capture the best of both worlds by locking-in a historically low rate now, without sacrificing their current, temporary federal student loan benefits,” said Anthony Noto, CEO of SoFi. “We’ve saved our members millions on their student loans, and with this new program we’re making sure federal borrowers don’t have to choose between long-term financial health and short-term relief. We’re always looking for new and creative ways to help people pursue their path toward financial independence, this is another example of how we’re supporting members in getting their money right.”
New Program Details:
- Applicants can effectively pause their payments until October by signing their disclosures to disburse the loan in the fall, locking-in today’s low rates for a first payment due in October at today’s low rates.
- Borrowers would apply for SoFi student loan refinancing using the same easy, digital application SoFi is known for – no extra documents or underwriting requirements, and the same low rates as a normal Sofi refinance loan.
- Borrowers with federal loans can elect to delay disbursement until the end of September to benefit from the federal payment pause.
- Before the loan is disbursed in September, borrowers may cancel and stay with their federal program if they decide they no longer want to refinance.
- Applicants that have signed their disclosures won’t need to take any additional action to have their loan disbursed in late September.
This new program is one of several initiatives SoFi has launched during the COVID-19 crisis to help meet the full breadth of its members’ financial needs. From providing immediate financial assistance and complimentary college-planning and estate-planning tools to debuting a healthcare industry hotline and other resources designed specifically to support SoFi at Work Partners and employees, SoFi has been committed to addressing members’ evolving needs throughout the pandemic. The company also continues to take an active role in conversations with policy leaders and employer partners who share its commitment to helping people get their money right.
SoFi helps people achieve financial independence to realize their ambitions. Our products for borrowing, saving, spending, investing and protecting give our over two million members fast access to tools to get their money right. SoFi membership comes with the key essentials for getting ahead, including career advisors and connection to a thriving community of like-minded, ambitious people. SoFi is also the naming rights partner of SoFi Stadium, home of the Los Angeles Chargers and the Los Angeles Rams. For more information, visit SoFi.com or download our iOS and Android apps.
Terms and conditions apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS PROSPECTIVELY BASED ON MARKET CONDITIONS AND BORROWER ELIGIBILITY. Your existing student loan(s) must total a minimum of $5,000 to be eligible for refinancing. Minimum loan amount may be higher in specific states due to legal requirements. To qualify, a borrower must be a U.S. citizen or other eligible status, have graduated with an associate degree or higher from an eligible Title-IV-accredited college or graduate program, and meet SoFi’s underwriting requirements; see SoFi.com/eligibility. SoFi refinance loans are private student loans and do not have the same repayment options that the federal loan program offers, or may become available, such as Income Based Repayment or Income Contingent Repayment or PAYE. Information current as of 06/07/21 and subject to change. Loans originated by SoFi Lending Corp. or an affiliate (dba SoFi). Licensed by the DFPI under the California Financing Law, license #6054612. NMLS #1121636 (www.nmlsconsumeraccess.org). See SoFi.com/legal for state-specific license details.
NOTICE: Recent legislative changes have suspended all federal student loan payments and waived interest charges on federally held loans until 09/30/21. Please carefully consider these changes before refinancing federally held loans with SoFi, as in doing so you will no longer qualify for these changes or other future benefits applicable to federally held loans.