SoFi opinion and alternatives

[Anonymous]

Hi all,

I wanted to see if anyone has an opinion on SoFi http://friends.sofi.com/96dbQ I recently refinanced through them which helped drop the interest rate on my federal student loans from 6.9% down to 5.4%. I was wondering if anyone else has used the service and what success they have had.

I also have a question, I would like to work with my mother in law on refinancing the student loans in my wife’s name. They currently have a 8.1% interest rate which seems high to me. I tried having her go though SoFi as well but it is currently not available in Vermont. I was wondering if anyone had any recommendations on a refinancing options for the state of Vermont. Any advice would be appreciated. 

Best,

-Zachary

[Simply827]

I see that Citizen's Bank is now getting into refinancing. 

[Tazman81]

Are these private student loans or federal loans?  If federal and you have which have a considerably lower rate, then you can get an overall better rate for consolidating.  Just remember, when you consolidate, it's an average of your federal loans interest rates.

[heyitsyeh]

I use CommonBond which has a 3.625% interest rate compared to the flat 6.2% on Fedloan (since they take credit into consideration). I also considered So-Fi using the same credit pull but their rate was slightly higher.

These peer-lending services are definitely worth it over the long run.

[iDShaDoW]

Dumb question but if I reconsolidate through one of these companies, I assume you take a hard inquiry against your credit report but are you also able to pay down your loan more aggressively?  (ie. pay more than what they ask you for each month)

[heyitsyeh]

Not a dumb question. Refinancing with one of these lenders gives you more options than your standard 10-year repayment plan (i.e. you can go 5-year for lower interest rate if you know you can pay down faster or 15-year for greater peace of mind but higher interest). As with the major government-backed lenders you can still pay down loans faster than the posted statement amounts (and the peer lenders are a bit more transparent and quick in payment processing). You do take a HP for applying to them but it will only be one if you are shopping multiple lenders at the same time.

[Anonymous]

Hey, resurrecting an old post here, but check out Darien Rowayton Bank. They are based in Conneticut and will do student loan refinancing for federal or private student loans.

They are also the only lender that I have been able to find that will refinance Parent PLUS loans from the parent into the student's name. Their system is fairly clunky, and they took a couple of weeks to get back to me, but overall I have been happy with the CSR's that I have spoken with and the rate that they have offered me.

They just approved me for refinancing and will be paying off my current federal loans in January, so hopefully I will have a positive report mid-January on how things are going with DRB.