If you’re a recent graduate or a current student thinking about refinancing your student loans, SoFi and Upstart are two lenders that come up again and again. Both can help you lower your interest rate or simplify your repayment, but they approach refinancing very differently. Understanding those differences can help you choose the option that fits your financial situation best.
Student loan refinancing allows you to combine one or more existing student loans—federal, private, or a mix of both—into a new loan with a private lender. The goal is usually to secure a lower interest rate, reduce your monthly payment, shorten the total repayment period, or simply replace several payments with one.
The big trade-off is this: refinancing federal loans with a private lender means giving up federal benefits like income-driven repayment, federal forbearance options, and loan forgiveness programs. That’s not a dealbreaker for everyone, but it’s important to understand before making the switch.
SoFi and Upstart can both refinance student loans, but they appeal to different types of borrowers. SoFi is known for competitive interest rates, strong borrower benefits, and a polished customer service experience. Upstart, on the other hand, is built for borrowers who may not have long credit histories—its underwriting model looks beyond credit scores and considers education, employment, and other indicators of financial potential.
SoFi generally works best for borrowers with good or excellent credit. To qualify for the lowest rates, SoFi typically looks for a credit score around 680 or higher, along with steady income and a manageable debt-to-income ratio. Recent graduates or borrowers with limited credit can still apply, especially if they can add a co-signer with strong credit.For help deciding whether combining your loans makes sense, visit our complete section on Student Loan Consolidation.
Upstart is more flexible. While they do look at credit score, they also use an AI-based model that accounts for factors like your major, educational background, job history, and even the school you attended. Because of this approach, some borrowers may qualify with credit scores as low as 600. This makes Upstart a possible fit for borrowers early in their careers who don’t yet have strong credit profiles—but interest rates may be higher as a result.
SoFi is known for offering some of the most competitive interest rates in the refinancing space, with APRs starting around 4.99% for highly qualified borrowers who enroll in autopay. Borrowers can choose fixed or variable rates, and SoFi offers terms ranging from 5 to 20 years. Another key benefit: SoFi charges no origination fees, prepayment penalties, or late fees.
Upstart offers refinancing rates starting around 5.60% APR, although borrowers with weaker credit may see higher rates. Upstart also offers both fixed and variable rates, but its repayment terms are shorter—typically 3 to 5 years. One important difference is Upstart’s origination fee, which can range from 1% to 8% of the loan amount. That fee should be factored into the total cost before you decide to refinance.
SoFi offers an online application process that’s smooth but a bit more traditional. After approval, funds are usually sent within 7–10 business days. Borrowers get access to a clean dashboard, a mobile app, and well-regarded customer support. SoFi also offers career coaching and financial planning sessions—extras that many borrowers find reassuring.
Upstart is built for speed. Their AI-based system can approve some applications in minutes, and funds may be disbursed in as little as 1–3 business days. While Upstart’s process is fast and straightforward, it’s less personal than SoFi’s approach. Borrowers with unusual financial situations sometimes find that the system doesn’t account for nuance as well as a traditional underwriting review would.
SoFi offers several borrower-friendly benefits beyond refinancing itself. These include career coaching, job search support, financial planning sessions, and an unemployment protection program that allows temporary payment pauses during job loss. SoFi’s app and service team are consistently rated highly.
Upstart focuses mainly on speed and accessibility. It doesn’t offer the broader suite of perks that SoFi provides, and there’s no unemployment protection program. For borrowers who value ease and quick decisions over extra benefits, that may still be perfectly fine.
Both SoFi and Upstart allow applicants to add a co-signer. This can be especially helpful for younger borrowers who are still building credit.
SoFi encourages co-signers for borrowers who want better rates or need help meeting credit requirements. Having a strong co-signer can significantly improve loan terms.
Upstart also allows co-signers, and because its underwriting considers many factors, adding a co-signer can make a noticeable difference—especially for those whose credit profiles fall toward the lower end of their range. As always, the co-signer will be responsible for the loan if the borrower fails to pay.
Loss of Federal Loan Protections: Refinancing federal loans turns them into private loans. That means losing access to income-driven repayment plans, federal forbearance, PSLF eligibility, and future federal relief programs. Borrowers who expect to use these benefits should think carefully before refinancing.
Variable Rate Uncertainty: Both lenders offer variable rates, which may start out low but can rise. Borrowers with tight budgets or inconsistent income may be safer choosing a fixed rate.
| Feature | SoFi | Upstart |
|---|---|---|
| Interest Rates | 4.99% – 10.99% APR (with autopay) | 5.60% – 35.99% APR |
| Loan Terms | 5 to 20 years | 3 to 5 years |
| Origination Fees | No fees | 1% to 8% of loan amount |
| Loan Amount | $5,000 to $100,000 | $1,000 to $50,000 |
| Approval Speed | 7-10 business days | 1-3 business days |
| Co-Signer Option | Yes | Yes |
| Unemployment Protection | Yes | No |
| Additional Borrower Perks | Career coaching, financial advising, job search resources | None |
Both lenders have their strengths—choosing the right one comes down to your credit profile, financial goals, and how much support you want beyond refinancing itself.
Fast. Free. No Hidden Promotions. Just Smarter Refinance Insights.
CollegeWhale.com has been a trusted source for college financial aid information for nearly 2 decades! We have been on a mission to connect students (and parents) with free money for college and we haven't stopped yet! Take a look at our Editor Picks for Student Loan Consolidation
