By looking to members of the university community, rather than to the government or the big banks, we think SoFi finally gives these students a much better deal than federal loans at 7.9% or private loans that can top 10%
San Francisco, CA (PRWEB) July 18, 2012
SoFi, a next generation social finance company that harnesses the power of a school's alumni to offer students a better deal on student loans, is now offering its unique community-based student loans for the upcoming academic year. SoFi offers qualified students a more affordable option to finance school, with fixed-rate student loans at a maximum interest rate of 6.49% (6.38% APR)* , zero origination fees, market-leading benefits and the ability to refinance into a 5.99% (5.99% APR)*** rate after graduating and signing up for automatic ach payments.
"The current student loan system is just plain broken," said SoFi CEO Mike Cagney. "Students and their parents are having to borrow more at rates that are way too high. We're working with alumni to create a better option for students, particularly for students who don't qualify for subsidized loans or may need financing beyond the federal Stafford loan limits. By looking to members of the university community, rather than to the government or the big banks, we think SoFi finally gives these students a much better deal than federal loans at 7.9% or private loans that can top 10%. For a lot of borrowers, SoFi is an easy way to save a lot of money without having to sacrifice many of the appealing benefits of the federal student loan system."
Features of new SoFi alumni-funded student loans for the 2012-13 academic year include:
- 6.49% fixed rate (6.38% APR)* if you choose to defer payments while in school
- 6.24% fixed rate (6.24% APR)** if you choose to make payments while in school and sign up for automatic ach payments
- Refinance into a 5.99% fixed rate (5.99% APR)*** when you graduate and sign up for auto ach payments
- Matches most benefits of the federal loan program, including a 6 month grace period after graduation; non-standard repayment options such as income-based and extended repayment; deferment and forbearance for economic hardship and other defined circumstances; cancellation upon death or disability. Innovative program also gives borrowers the opportunity to seek loan forgiveness from participating alumni for teaching, public interest work, entrepreneurial efforts or other reasons. In-school education deferrals available up to 60 months.****
- Membership in an online community of SoFi students and alumni to facilitate career advice, professional networking and loan assistance.
- Easy online loan application process at SoFi.com.
- For more information about all features of SoFi alumni-funded student loans, please go to SoFi.com.
Beginning today, individuals enrolled for the 2012-13 academic year as undergraduate students or as graduate business students at participating colleges and universities can apply online at SoFi.com. While SoFi plans to expand its program to additional campuses, the program is now available at the following schools for MBAs and undergraduate students:
Brigham Young University
Carnegie Mellon University
College of William & Mary
George Washington University
Massachusetts Institute of Technology
New York University
Santa Clara University
University of California, Berkeley
University of California, Davis
University of California, Irvine
University of California, Los Angeles
University of California, Riverside
University of California, San Diego
University of California, Santa Barbara
University of Chicago
University of Illinois, Urbana Champaign
University of Michigan - Ann Arbor
University of North Carolina at Chapel Hill
University of Notre Dame
University of Pennsylvania
University of Rochester
University of Southern California
University of Utah
University of Virginia
University of Wisconsin
Virginia Polytechnic Institute
Wake Forest University
For a limited time, students may save even more by taking advantage of SoFi's $100/$100 summer savings referral program. The $100/$100 program saves borrowers even more on their student loans when they help expand SoFi's social network with friends and family referrals.***** Click here for complete details of the company's policy, which benefits both referred and referring SoFi borrowers.
Founded in 2011, SoFi offers community-based lending and student loan consolidation programs to MBA, graduate and undergraduate students at US universities. Deepening the relationships between student borrowers and alumni investors, SoFi is a place where social meets finance.
Please note that:
- 6.38% APR Assumes a $10,000 loan with a 22 month in-school deferment, 6 month grace period, monthly payments, no origination fee, capitalization of accrued interest upon entering repayment and a 15 year repayment term.
** 6.24% APR Assumes a $10,000 loan, borrower begins making monthly interest-only or interest and principal payments immediately with auto ach, 15 year repayment term and no origination fee. Does not include any discounts.
*** 5.99% APR requires borrower to have graduated and sign up for automatic ACH payments. Assumes a $10,000 loan, 15 year repayment term, no origination fee, and beginning monthly repayment 30 days after loan origination.
**** Direct Loans and other private loans may offer benefits not offered by SoFi. Please carefully consider all your options. For information about federal loan benefits, visit http://federalstudentaid.ed.gov/federalaidfirst/index.html. Community-based loan forgiveness is not guaranteed.
***** SoFi $100/$100 policy will provide $100 toward a borrowers outstanding SoFi loan for each new SoFi borrower referred. Additionally, any borrower referred by an existing SoFi borrower will also receive $100 toward his/her SoFi loan payment. Terms and conditions apply. See SoFi.com/100 for complete details of the program, which expires September 30, 2012.
Terms and Conditions Apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. To qualify, a borrower must be a U.S. citizen or permanent resident and meet underwriting requirements. Your APR may increase or decrease based on your own circumstances. You will receive a customized APR estimate during the application process. This information is current as of July 15, 2012 and is subject to change. SoFi loans are originated by SoFi Lending Corp (dba SoFi) California Finance Lender #6054612.