Categories: Finance

Exploring Your Options for Refinancing Student Loans

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Earnest and SoFi are two prominent student loan refinancing companies that offer borrowers the opportunity to refinance their student loans with added benefits. Each company has its own unique features and eligibility requirements, making it essential for borrowers to compare the two before making a decision.

Earnest, known for its personalized refinancing options, offers a “precision pricing” feature that allows borrowers to select their monthly payment. This flexibility helps borrowers align their loan terms with their payment goals, ensuring they stay on track towards repayment. Additionally, Earnest provides an interest-only option to reduce monthly payments, giving borrowers the flexibility to extend the loan term while lowering payments.

On the other hand, SoFi, short for Social Finance, offers a range of non-financial benefits such as career coaching and networking events, in addition to traditional lending products. SoFi has strict eligibility standards but provides refinancing solutions for various situations, including the transfer of Parent PLUS loans into the borrower’s name and the option to refinance with a cosigner.

When comparing loan features, both Earnest and SoFi offer similar terms, including variable rate loans with a 0.25% reduction for autopay. Both companies require a minimum loan amount of $5,000 and do not charge prepayment penalties or application fees. However, SoFi charges a late fee, while Earnest does not.

In terms of borrower eligibility and requirements, Earnest requires a minimum credit score of 665, while SoFi requires a minimum of 650. Borrowers must also show proof of income to qualify for refinancing with either company.

Ultimately, the choice between Earnest and SoFi for student loan refinancing will depend on individual financial situations and goals. Borrowers should carefully evaluate their options, compare rates and terms, and consider factors such as repayment flexibility, additional benefits, and eligibility requirements before making a decision.

Team@GQN.