Earnest and SoFi® are two finance companies that offer competitive rates and flexible repayment terms with no origination fees or prepayment penalties.
Both companies allow you to prequalify online with no impact on your credit score. Check your rates with both lenders to see which one provides the best student loan refinancing offer.
Earnest Vs. SoFi: Refinancing Details
  | Earnest | SoFi |
---|---|---|
Annual Percentage Rates (APRs) | 5.89% to 9.74%² fixed APR; 4.89% to 9.74%² variable APR (includes 0.25% autopay discount[1] | 5.24% to 9.99%* fixed APR; 6.24% to 9.99%* variable APR (with autopay discount) |
Loan Terms | Five to 20 years | Five, seven, 10, 15 or 20 years |
Loan Amounts | $5,000 ($10,000 for California residents, $10,001 for Nevada residents) to $500,000 | $5,000 up to total balance of eligible loans |
Fees | None | None |
Co-signer Allowed | Yes | Yes |
Co-signer Release | Yes | Yes, if loans were borrowed after May 1, 2019 |
Credit Score Requirement | 665 | At least 650 |
Degree Requirement | No degree required, but you must be out of school or in your last semester. School attended cannot be for-profit, last attending date must be 6+ years ago. | No degree required, but you must be previously enrolled at Title IV college or university |
Where It Operates . | 49 states and Washington, D.C. (not available in Nevada) | 50 states and Washington, D.C |
Perks and Benefits | You can customize your loan terms for you budget | Access to career coaching and financial planning |
Autopay Discount | 0.25% | 0.25% |
Featured Partner Offers
2
Earnest
5.89% to 9.74%²
4.89% to 9.74%²
4.89%
Earnest Student Loan Refinancing
Earnest lets you refinance $5,000 ($10,000 for California residents, $10,001 for New Mexico residents) to $500,000 in student loans with any repayment term that falls between five and 20 years. The lender also offers benefits that include a 0.25% autopay discount, flexible repayment options and more.
The lender also offers refinancing options for medical school students and recent graduates.
Eligibility Requirements
To qualify for an Earnest student loan refinance, you must:
- Be a U.S. citizen or permanent resident
- Be the age of majority in one of the states that Earnest operates in
- Be the primary borrower on the student loans you wish to refinance
- Have a minimum credit score of 665
- Refinance at least $5,000 (in California and New Mexico, the minimum is $10,000)
- Have bank accounts in good standing and no recent bankruptcy on your credit report
- Possess enough savings to cover at least two months of expenses
Loan Terms and Repayment Options
Earnest offers five- to 20-year repayment terms. Most borrowers start with a standard repayment plan, which charges monthly principal and interest payments after your loan is disbursed.
A short-term, interest-only program is also available for borrowers looking to reduce their monthly payments by making interest-only payments in three-month increments for up to 24 months. This option will lower your long-term monthly payments by extending your loan terms by the same number of months you utilize the program.
Earnest also offers a “Precision Pricing” feature, which lets you customize your repayment schedule to fit your budget. You’ll need to submit a budget estimate for your monthly student loan payments. Earnest’s pricing tool then suggests an appropriate interest rate and payoff term.
Perks and Features
Earnest offers a unique set of features and perks to refinance borrowers, including:
- The option to skip a monthly payment[ ]. You can forgo one payment annually after at least six consecutive, on-time monthly payments. Earnest moves the skipped payment to the end of your loan term. The interest accrued during your skipped month is distributed amongst your remaining monthly payments.
- Forbearance. Earnest may agree to postpone your student loan payments if you run into financial hardship. You can receive up to 12 months of forbearance after making at least three months of on-time, monthly payments. It also offers deferment options for borrowers who return to school or join the military.
- Autopay discount. If you set up automatic payments on your refinanced student loans, you’ll score a 0.25% discount on your interest rate. You can change your autopay due date if you select a date between the third and 22nd of the month.
Pros and Cons
Before you apply for an Earnest student loan refinance, consider some of the key advantages and disadvantages.
Pros
- Customized repayment terms. Earnest suggests a repayment term between five and 20 years that works with your budget. You can also skip one payment per year and change your payment due date.
- Competitive interest rates. Earnest offers fixed and variable rates starting at 5.89%⁶ variable APR (with autopay) and 4.89%⁶ fixed APR (with autopay), respectively.
- Degree not required. Earnest accepts applicants who left school before graduating, as long as their loans are in active repayment. Current students who are in their final semester are also eligible.
Cons
- Not available in every state. Earnest doesn’t lend in Nevada, so it’s not an option for Nevada residents.
- Variable rates are not available everywhere. Earnest doesn’t offer variable rates in Alaska, Illinois, Minnesota, New Hampshire, Ohio, Tennessee and Texas.
Is Earnest Right for You?
Earnest may be the better choice if you didn’t graduate school or are in your last semester. It also has some more flexible repayment options than SoFi, with its skip-a-payment program and Precision Pricing feature.
SoFi Student Loan Refinancing
SoFi provides student loan refinancing in all 50 states and Washington, D.C. You can refinance anywhere from $5,000 up to total balance of eligible loans. SoFi also offers flexible repayment terms and competitive interest rates for borrowers.
Eligibility Requirements
To qualify for a SoFi student loan refinance, there are a few basic requirements you must meet:
- Be a U.S. citizen, permanent resident or nonpermanent resident alien with an acceptable ID
- Must have sufficient outside income, be employed or have a job offer that will start within 90 days of your application
- Most have been enrolled in or graduated from an eligible institution
- Minimum credit score of 650
- Refinance at least $5,000 in student loans (some states have higher minimums)
- Meet SoFi’s underwriting requirements for income, credit and debt-to-income (DTI) ratio
Loan Terms and Repayment Options
SoFi offers five-, seven-, 10-, 15- or 20-year repayment terms for student loan refinancing. Three days after you sign your loan agreement, SoFi will distribute your funds to your previous loan servicer.
SoFi offers:
- Immediate repayment. You will be responsible for your first monthly payment 30 days after your funds are disbursed to your previous loan servicer.
- Interest-only repayment. This option requires you to pay your new loan’s interest for a set timeframe before you make principal payments.
Perks and Features
SoFi offers several perks and features, including:
- Access to member benefits. These benefits include expedited entry to SoFi stadium, personalized financial planning, discounted estate planning, exclusive member experiences and a referral program.
- Low monthly payments for medical residents. You can reduce your payment to $100 per month for up to seven years if you refinance your student loans with SoFi as a medical resident.
- Forbearance and deferment options. SoFi may let you postpone payments if you lose your job, go back to school or have another qualifying reason.
Pros and Cons
Before you apply, consider some of the advantages and disadvantages of SoFi student loan refinancing.
Pros
- Competitive interest rates. SoFi offers fixed rates starting at 5.24%* and variable rates starting at 6.24%*.
- High loan amounts. You can refinance a minimum of $5,000 up to the total cost of attendance for your school.
- Customized refinancing offers. SoFi offers specific refinance options for medical professionals, medical residents, law and MBA loan holders, or parent borrowers.
Cons
- Requires a degree. You must have graduated with your associate’s degree or higher, so it wouldn’t be a fit for borrowers who left school or are still enrolled.
- Has fewer repayment term options. SoFi only offers five-, seven-, 10-, 15- or 20-year terms.
Is SoFi Right for You?
SoFi has a lower credit score requirement and will let you refinance the full balance of your student loans, making it the better option if you owe more than $500,000. Its specialized refinance offers may also be a good fit if you’re a medical professional, parent borrower or owe law or MBA loans.
SoFi’s various member benefits could be valuable if you use them.
*Fixed rates range from 5.24% APR to 9.99% APR with 0.25% autopay discount. Variable rates range from 6.24% APR to 9.99% APR with a 0.25% autopay discount. Unless required to be lower to comply with applicable law, Variable Interest rates on 5-, 7-, and 10-year terms are capped at 13.95% APR; 15- and 20-year terms are capped at 13.95% APR. SoFi rate ranges are current as of 02/06/24 and are subject to change at any time. Your actual rate will be within the range of rates listed above and will depend on the term you select, evaluation of your creditworthiness, income, presence of a co-signer and a variety of other factors. Lowest rates reserved for the most creditworthy borrowers. For the SoFi variable-rate product, the variable interest rate for a given month is derived by adding a margin to the 30-day average SOFR index, published two business days preceding such calendar month, rounded up to the nearest one hundredth of one percent (0.01% or 0.0001). APRs for variable-rate loans may increase after origination if the SOFR index increases. The SoFi 0.25% autopay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. This benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. The benefit lowers your interest rate but does not change the amount of your monthly payment. This benefit is suspended during periods of deferment and forbearance. Autopay is not required to receive a loan from SoFi. You may pay more interest over the life of the loan if you refinance with an extended term.
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