Social Finance, Inc student loan refinancing

[Pharmist1720]

Has anybody used SoFi refinancing with their student loans? They have fixed rates of around 5% and variable rates from 3-7%. Right now my loans are at 6.55%. Is this a reliable company to refinance with? Are there any catches with the refinancing?

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[awval999]

I attempted to use them. Submitted all my documents. Wasted a couple hours on the whole thing. I have perfect credit, have been working for 4 years with 4 years of student loan payments. They quoted me some terrible interest rate and I told them to shove it.

This is what they quoted me:

• 10 year fixed rate loan at a rate of 6.125%, 5.875% with AutoPay

I have some private loans that have a currently low variable rate. My average student loan rate is like ~5.6%. I suppose if you just have straight Federal loans that 5.875 > 6.55 but who knows what Obama has in store in the future with refinancing and stuff.

 

[Ackj]

I attempted to use them. Submitted all my documents. Wasted a couple hours on the whole thing. I have perfect credit, have been working for 4 years with 4 years of student loan payments. They quoted me some terrible interest rate and I told them to shove it.

This is what they quoted me:

• 10 year fixed rate loan at a rate of 6.125%, 5.875% with AutoPay

I have some private loans that have a currently low variable rate. My average student loan rate is like ~5.6%. I suppose if you just have straight Federal loans that 5.875 > 6.55 but who knows what Obama has in store in the future with refinancing and stuff.

Same rate I was offered. 4.74% for 5 year, 5.875% for 10 year 6.625% for 15 year. Variable rates 3.785% 3.91% and 4.285% for the 5,10,15 respectively.

I got declined immediately for "not meeting employment requirements" although the only requirement I could find was that you actually have a job. I called customer service and they said it was because I'm a new grad and have only had my current job for about a year. I told them I had previous internships in the field, etc and they were able to fix whatever they had and let me continue the application.

All my loans are currently the federal 6.55%, so yeah 5.875 is better, I'm just trying to read up and find if there are any fees that get added on which may make it pointless for the small discount. I only owe about $15k left on my subsidized loans, so I can get rid of those within the year. If I consolidate that won't be possible anymore. Also no IBR on these loans, not that I need it, but I just use it so in case of emergency I can make a $300 payment instead of $1700.

 

[awval999]

I attempted to use them. Submitted all my documents. Wasted a couple hours on the whole thing. I have perfect credit, have been working for 4 years with 4 years of student loan payments. They quoted me some terrible interest rate and I told them to shove it.

This is what they quoted me:

• 10 year fixed rate loan at a rate of 6.125%, 5.875% with AutoPay

I have some private loans that have a currently low variable rate. My average student loan rate is like ~5.6%. I suppose if you just have straight Federal loans that 5.875 > 6.55 but who knows what Obama has in store in the future with refinancing and stuff.

Figured I can reply to my own post.

Since interest rates continue to drop I attempted to re-finance with SOFI again. This time I attempted to consolidate only my federal loans since they were at 6.8% and 7.9%. Applied for the 5 year fixed and got the 4.74% rate (after autopay) which I took for ~$50k.

I really think this is a no-brainer for any non IRB/PSLF pharmacist in repayment. I had 6 years remaining on my Staffords so I shortened the term to pay them off in 5 years, and with the lower interest rate I am paying a negligible amount more per month but will save nearly $5000 in interest due to shorter term and lower interest rate.

I know that PSLF/IRB and all that jazz gets discussed a lot around here, but a lot of pharmacists either don't work for a non-profit, don't trust the PSLF, and want to pay them off on their own terms. I think refinancing makes sense for the vast majority. No pharmacist should be paying their loans off at that usurious 6.8+%.

 

[fauxden]

I graduated with 42k in debt @ 6.8% for ten years, I refied with darien rowayton bank (similar to SoFi, but for "professionals" like us, I think they accept docs, pharmd, lawyers etc) 60 month @ 3.5%... quite good I thought. Also, a no brainer I figured.

 

[awval999]

I graduated with 42k in debt @ 6.8% for ten years, I refied with darien rowayton bank (similar to SoFi, but for "professionals" like us, I think they accept docs, pharmd, lawyers etc) 60 month @ 3.5%... quite good I thought. Also, a no brainer I figured.

3.5% fixed?

I read about DRB on white coat blog but DRB had the worst reviews/comments so I didn't attempt with them. SOFI offered 4.74% and Citizens Bank offered 4.99% (both after 0.25% autopay).

I kinda hope we get more comments in this thread because we've beaten PSLF/IRB to death, and every month a pharmacist is paying their Staffords back at 6.8%+ they are pissing away hundreds.

 

[fauxden]

3.5% fixed?

I read about DRB on white coat blog but DRB had the worst reviews/comments so I didn't attempt with them. SOFI offered 4.74% and Citizens Bank offered 4.99% (both after 0.25% autopay).

I kinda hope we get more comments in this thread because we've beaten PSLF/IRB to death, and every month a pharmacist is paying their Staffords back at 6.8%+ they are pissing away hundreds.

yeah 3.5% fixed, that is discount included for autopay. DRB has treated me right thus far. I did it a couple months ago. No problem. I had one friend who refied and got a rate similar to mine. Another friend or two afterwards applied and the rate had gone up, so I don't know if I lucked out or what, but that is what it's at.

 

[MatCauthon]

I used DRB. Like fauxden I also got 3.5% fixed. I've had no problems with DRB whatsoever. The 3.5% interest rate has really been a huge blessing. I refinanced this summer, haven't check the new rates since then.

 

[awval999]

What's the deal with having to have a drb checking account to pay the loans with? Can I not pay with a regular auto debit from my normal checking account?

 

[owlegrad]

What's the deal with having to have a drb checking account to pay the loans with? Can I not pay with a regular auto debit from my normal checking account?

It is stupid, but they set it up so the money goes into the checking account before it goes to pay the loan - so in practice you can't tell the difference. Or at least, I can't.

So far I have been happy with DRB. Saved a ton of money in interest. Yes please!

 

[fauxden]

What's the deal with having to have a drb checking account to pay the loans with? Can I not pay with a regular auto debit from my normal checking account?

eh, well to get the autopay discount you do have to have a checking account with them to auto draft out of. They auto transfer the cash from your primary bank account (or under your mattress or wherever you keep your money) into your drb account and then transfer from your drb account to your student loan account. This all happens automatically. It seems kind of stupid and convoluted, but since its all auto I don't really pay much attention it.

As far as making extra payments, I just have my normal bank auto send them a check each month via bill pay.

 

[rxdawg21]

I also refinanced with DRB a total of 68k for 5 years at 3.5% with the .25% autopay discount. I also made a few hundred bucks just telling my friends about it and getting them to say I referred them. It took about a month for it to get all the paperwork approved and then my payment didn't go through right away to pay off the loans, but DRB was great and refunded me the accrued interest since it was a mishap on their side.

Sofi gave me the same crappy rate as everyone else and my credit score is mid 700s, almost laughed at their 1% discount when banks can borrow money for free these days.

 

[bacillus1]

Anyone know how these refinancing programs work in conjunction with federal loan repayment programs (e.g. EDRP)? The refinancing deals discussed in this thread are great, but I don't want my award cut due to a lower interest rate. In addition, are there any upfront costs with this? I can't pay off too much too early, as that could also reduce the amount that the program pays for me.

 

[awval999]

Anyone know how these refinancing programs work in conjunction with federal loan repayment programs (e.g. EDRP)? The refinancing deals discussed in this thread are great, but I don't want my award cut due to a lower interest rate. In addition, are there any upfront costs with this? I can't pay off too much too early, as that could also reduce the amount that the program pays for me.

You can refinance federal loans but you lose all federal benefits. They make you affirm it like 5 times during the signature phase. The loan becomes a fully amortizing loan over the time selection you choose. No forebeance, forgiveness, grace, etc. I weighed the options and I chose to refinance with the lower interest rate. I may refinance again with drb later this year since you guys have good experiences with them

 

[fauxden]

Anyone know how these refinancing programs work in conjunction with federal loan repayment programs (e.g. EDRP)? The refinancing deals discussed in this thread are great, but I don't want my award cut due to a lower interest rate. In addition, are there any upfront costs with this? I can't pay off too much too early, as that could also reduce the amount that the program pays for me.

how much debt do you have? Either way, yeah, you lose the "benefits" of a federal loan.

 

[bacillus1]

how much debt do you have? Either way, yeah, you lose the "benefits" of a federal loan.

About 55k left combined between federal and private loans. I don't mean benefits of federal loans, I mean loan benefits provided for federal employees (which cover private loans as well). I just don't want to do anything to jeopardize my EDRP funding, and our HR and benefits people are rather unhelpful when it comes to these things.

 

[awval999]

I'm with Sofi, 3.535% variable with autopay.



You don't need to refinance. Sofi or DRB takes at least 2 months to get the paperwork done. Just pay $4-5,000 a month while living on a budget with ur six-figure salary, your loan will be gone in 1 year.

Sofi took like 2 weeks when I just did it. And I'm talking from applying to them paying off obama.

 

[Ackj]

how much debt do you have? Either way, yeah, you lose the "benefits" of a federal loan.

Would that also mean you are able to go bankrupt and get rid of the loan? I know federal loans don't go away, but these are no longer federal.

 

[fauxden]

Would that also mean you are able to go bankrupt and get rid of the loan? I know federal loans don't go away, but these are no longer federal.

i understand that they are not dischargeable via bankruptcy.

 

[awval999]

They are still a student loan. It refers to the federal statue in the loan documentaion. Still tax deductibile. Still unbankruptible.

 

[mustang sally]

Does anyone have concerns about losing their federal benefits when switching to these types of loans?

I'm not talking about IBR and PSLF, rather things like discharge through death or disability, or the easy ability to defer and lower your payments. Or do these loans still work in much the same way as other student loans?

 

[awval999]

The cost of a life insurance term policy to pay for the loans is so small it's meaningless. I agree I wouldn't refinance until you are secure in your job. Sofi says they offer unemployment insurance in the way that if you fired they will suspend payments.

Honestly guys, I just want to be done with this burden. It is almost laughable the way we talk about these federal student loan "benefits". Yes they will let you forbear it forever with compounding interest. Or give you 25 years to repay it. And cant forget about that PSLF, how many people have ever had their loans forgiven? Zero. I can't bet my family's future on that. And this Congress that they won't renege.

 

[bacillus1]

I'm with Sofi, 3.535% variable with autopay.



You don't need to refinance. Sofi or DRB takes at least 2 months to get the paperwork done. Just pay $4-5,000 a month while living on a budget with ur six-figure salary, your loan will be gone in 1 year.

But then I lose 40,000 dollars that the government will pay to repay my loan. Just tryinig to see if there are ways for me not to really have to pay any of my loan from now on.

 

[Tsap]

is there any fee to refinance your student loan?

 

[ancienbon]

I was always reluctant to refinance but the good interest rate was too tempting. I tried and they offered me 4.75 percent fixed rate for 5 years. I thought i would qualify for 3.5 percent

Fico score 820
Salary 126 grants
Over 118 grants in student loans.. I am refinancing 60 grants
Have been working as a rph since 2010

I will give them a call to see if i can get the 3.5 percent rate

 

[awval999]

I was always reluctant to refinance but the good interest rate was too tempting. I tried and they offered me 4.75 percent fixed rate for 5 years. I thought i would qualify for 3.5 percent

Fico score 820
Salary 126 grants
Over 118 grants in student loans.. I am refinancing 60 grants
Have been working as a rph since 2010

I will give them a call to see if i can get the 3.5 percent rate

I have similar financials. I only got the 4.74%. That 3.5% rate is for the physician/surgeons making the $500k+

 

[PumpkinSmasher]

I have similar financials. I only got the 4.74%. That 3.5% rate is for the physician/surgeons making the $500k+

Not even they are getting that rate right now, from my experience. Will call them one of these days and follow-up. I can't figure out who they give that rate to.....

 

[BMBiology]

Pretty difficult to get a 3.5% rate on an unsecured loan considering inflation is 2-3% per year.

 

[ancienbon]

It looks like a few people here got the 3.5 percent rate.

 

[BMBiology]

Like everything in life, timing is everything

 

[rxdawg21]

My friend also didn't get that rate but I did. He called and was told they rate you on 3 things and you're rated in groups. If I recall it was credit income and debt to income. the credit was grouped into groups you got points for and let's just say it was *<650 ,650-700,700-750 and >750 (thisis very close to correct numbers) the income had grouping of <100k, 100-125 and I don't remember the other groups. then I have no idea The groups for debt to income .

My credit was 750s, income above 125 and debt of 68 refinancing. His was 105 income and refinancing almost 140k which is why he didn't get lowest rate

 

[fauxden]

yeah i got the 3.5 back in august

income >125k
debt <39k
credit ?? >750

Like I said earlier. I had a friend who got this rate, and a few who did not. The one who got the same rate as me refied slightly before I did. He has a bit higher income, way more debt, and I have no idea on credit score. My other friends who got offered higher rates had more debt, one high and one lower income, and no idea on credit scores, but I assume all were high.

 

[ancienbon]

I was told that the rates are not negotiable. So i am thinking whether i should take it or not. I was going to try social finance, but i heard that DRB gives better rates.
I will weigh my options

 

[ExpressMaiL]

I also got a quote from Sofi and after all the work, it was a terrible rate and a waste of a hard inquiry.

There are better rates out there. I locked in a rate under 3% a few years ago. If you have at least 70k in loans, pm me for information.

 

[d2rx]

Anyone here still paying off their loans? Just refinanced 93k with LendKey for 3.15% Fixed, 5 years.