SoFi vs Earnest

SoFi and Earnest are two companies that offer student loan refinancing options to borrowers. Both companies allow borrowers to refinance their existing student loans at potentially lower interest rates, potentially saving them money on their loan payments. In this article, we will compare the two companies in terms of their loan products, eligibility requirements, the application process, and customer service.

Loan products:

Earnest offers student loan refinancing to both undergraduate and graduate borrowers. Borrowers can choose between fixed or variable interest rates, with terms ranging from 5 to 20 years. Earnest also offers the option to include a cosigner on the loan, which may help borrowers qualify for a lower interest rate. In addition to student loan refinancing, Earnest also offers personal loans and mortgage loans.

SoFi offers student loan refinancing to both undergraduate and graduate borrowers, as well as parent loans for parents who want to refinance their loans taken out to pay for their child’s education. Borrowers can choose between fixed or variable interest rates, with terms ranging from 5 to 20 years. Like Earnest, SoFi also offers the option to include a cosigner on the loan. In addition to student loan refinancing, SoFi also offers personal loans, mortgage loans, and investment products.

Eligibility requirements:

To be eligible for refinancing with Earnest, borrowers must have a credit score of at least 660 and an income of at least $24,000 per year. Borrowers must also have at least $5,000 in student loan debt and be a U.S. citizens or permanent residents.

To be eligible for refinancing with SoFi, borrowers must have a credit score of at least 660 and an income of at least $45,000 per year. Borrowers must also have at least $5,000 in student loan debt and be a U.S. citizens or permanent residents. SoFi also has a requirement that borrowers must have graduated from a Title IV accredited university and be employed or have an offer of employment.

Application process:

Both Earnest and SoFi have an online application process that is simple and straightforward. Borrowers can enter their personal and financial information, and the companies will use this information to determine their eligibility and the interest rate they are offered. Both companies also have a network of customer service representatives available to assist borrowers with the application process if needed.

Once a borrower is approved for refinancing with either company, they will need to provide documentation to verify their income, employment, and educational background. This documentation may include pay stubs, tax returns, and transcripts.

Customer service:

Earnest has a reputation for excellent customer service, with many borrowers praising the company for its responsive and helpful representatives. The company has a network of customer service representatives available to assist borrowers with any questions or issues they may have, and borrowers can contact the company through phone, email, or chat.

SoFi also has a reputation for excellent customer service, with many borrowers praising the company for its helpful and knowledgeable representatives. The company has a network of customer service representatives available to assist borrowers with any questions or issues they may have, and borrowers can contact the company through phone, email, or chat. SoFi also offers a variety of resources for borrowers, including a comprehensive FAQ section on its website and access to financial advisors.

Overall, both Earnest and SoFi are excellent options for borrowers who are looking to refinance their student loans. Both companies offer competitive interest rates and have a reputation for excellent customer service. The main difference between the two companies is their eligibility requirements, with Earnest having slightly more lenient income and credit score requirements. Borrowers should carefully consider their financial situation and compare the terms offered by both companies before deciding which one is the best fit for them.

It’s also worth noting that both Earnest and SoFi charge origination fees for their refinancing products. An origination fee is a fee that is charged by the lender to cover the cost of processing and underwriting the loan. Earnest charges a fee of 0.50% to 1.00% of the loan amount, while SoFi charges a fee of 1.00% to 2.00% of the loan amount. Borrowers should take these fees into account when comparing the overall cost of refinancing with each company.

In addition to origination fees, both Earnest and SoFi charge late fees for borrowers who miss their monthly loan payments. These fees can vary depending on the terms of the loan and the borrower’s state of residence. Borrowers should be aware of these fees and make sure they are able to make their monthly payments on time to avoid incurring additional charges.

Conclusion:

Finally, it’s important to note that refinancing your student loans can have both pros and cons. On the plus side, refinancing can help you save money on your loan payments by securing a lower interest rate. It can also make it easier to manage your debt by consolidating multiple loans into a single monthly payment. However, refinancing can also have some drawbacks. For example, you may lose certain borrower protections and forgiveness options that are available with federal student loans. It’s important to carefully consider all of the factors involved before deciding whether refinancing is right for you.

Both Earnest and SoFi are reputable companies that offer competitive student loan refinancing options to borrowers. While they have some similarities, they also have some key differences in terms of their eligibility requirements and the fees they charge. Borrowers should carefully compare the terms offered by both companies and consider their financial situation before deciding which one is the best fit for them.