SoFi Or Upstart: Student Loan Consolidation Rates

If you’re a recent graduate or a current student looking to refinance your student loans, SoFi and Upstart are two of the most popular options to consider. Both companies offer refinancing programs that can help you lower your interest rates and consolidate multiple loans into a single, more manageable payment. But how do they compare, and which one is right for you? Let’s dive into a detailed comparison of SoFi and Upstart when it comes to student loan refinancing.

What is Student Loan Refinancing?

Student loan refinancing is the process of consolidating multiple student loans—whether federal or private—into a new loan with a single monthly payment. The goal is typically to reduce your interest rate, shorten the repayment term, or adjust the loan term to suit your financial situation. Refinancing can help lower your monthly payments, reduce the total interest you pay over the life of the loan, or give you more flexibility in your payments. However, it’s important to note that refinancing federal student loans will cause you to lose access to federal protections, such as income-driven repayment plans and loan forgiveness programs.

How Do SoFi and Upstart Compare for Student Loan Refinancing?

Both SoFi and Upstart offer student loan refinancing, but they cater to slightly different borrower profiles. SoFi is known for its competitive interest rates, excellent borrower perks, and a broad range of loan products, while Upstart uses innovative artificial intelligence to approve borrowers with limited credit history. Below, we break down the differences between the two for refinancing your student loans.

Eligibility: Who Can Refinance With SoFi or Upstart?

SoFi generally requires applicants to have a credit score of 680 or higher for the best rates. They also consider your income, employment history, and debt-to-income ratio when making their decision. While SoFi is ideal for borrowers with good to excellent credit, they also offer student loan refinancing to people with lower credit scores, though rates may be higher in such cases. If you’re a recent graduate or someone with a limited credit history, you may be able to apply with a co-signer.

Upstart takes a more flexible approach when evaluating applicants. They use a mix of traditional credit scores and newer technology, such as artificial intelligence (AI), to assess your potential for repaying a loan. Upstart considers factors like your education, employment history, and even the school you attended in making a lending decision. This means you might qualify for student loan refinancing with a credit score as low as 600, which could be helpful for those who haven’t built much credit yet. For students or recent graduates with limited credit history, Upstart may be a good option, though the rates may not be as low as SoFi’s.

Interest Rates, Loan Terms, and Fees

Both SoFi and Upstart offer competitive interest rates, but their terms differ in some important ways.

SoFi is known for offering low interest rates on student loan refinancing, with rates as low as 4.99% APR (with autopay) for qualified borrowers. SoFi also offers both fixed and variable rates. Fixed rates provide predictable monthly payments, while variable rates may offer a lower starting rate, but can fluctuate over time. Loan terms for SoFi refinancing range from 5 to 20 years, giving you the flexibility to choose a repayment plan that fits your financial situation. SoFi does not charge any fees—no origination fees, no prepayment penalties, and no late fees, making their refinancing option a transparent and borrower-friendly choice.

Upstart offers interest rates for student loan refinancing starting around 5.60% APR, but the rates can go higher depending on your credit profile and other factors. Similar to SoFi, Upstart offers both fixed and variable interest rates. Upstart’s loan terms range from 3 to 5 years for refinancing. While they don’t charge prepayment penalties, they do charge an origination fee, which typically ranges from 1% to 8% of the loan amount. This can add to the overall cost of the loan, so be sure to factor in this fee when considering the full cost of refinancing.

Approval Process: How Quickly Can You Refinance Your Loans?

SoFi is known for its smooth and quick application process. You can complete the application online, and if you’re approved, funds are typically disbursed within 7-10 business days. SoFi also provides an easy-to-use mobile app where you can track your loan status and make payments. Their customer service is highly rated, and they offer helpful resources like career coaching and financial advice.

Upstart also offers a fast and efficient approval process, often providing loan decisions within minutes after you apply. If you’re approved, funds can be disbursed within 1-3 business days. Their online platform is easy to navigate, but it is important to note that Upstart’s approval process relies heavily on AI, meaning the process is less personal compared to SoFi’s more traditional approach. While this AI-driven process can be faster, it may not be as flexible if you have unique financial circumstances.

Customer Support and Additional Perks

SoFi is well-regarded for its customer service and borrower perks. After refinancing your student loans, you’ll have access to a suite of additional benefits, including career coaching, job search resources, and financial advising. SoFi also offers a generous unemployment protection program, allowing you to pause your loan payments if you lose your job. Additionally, their customer service is available via phone, email, or chat, and their online platform is user-friendly.

Upstart offers more limited borrower benefits in comparison. They focus on providing quick loan approval and flexible terms, but they don’t provide the same level of additional perks like SoFi. There’s no unemployment protection program, and Upstart doesn’t offer personalized financial advising. However, Upstart does provide a fast and easy online application process and competitive rates, which could be valuable for borrowers who prioritize speed and ease of access.

Co-Signers and Their Impact on Refinancing

Both SoFi and Upstart allow co-signers to help applicants with limited credit history or lower credit scores. Adding a co-signer with strong credit can help increase your chances of getting approved for a loan and can also help you secure a lower interest rate.

SoFi allows co-signers on most student loan refinancing applications. This can be beneficial if you’re a recent graduate with limited credit history but have a family member or friend who can co-sign for you. It also gives you an opportunity to get better loan terms if your co-signer has an excellent credit score.

Upstart also allows co-signers on its student loan refinancing loans. Since Upstart uses more flexible criteria, having a co-signer with strong credit may help lower your rate even more, especially if your credit score is on the lower end of their requirements. Keep in mind that if you refinance with a co-signer, they will be responsible for the loan if you default, so it’s crucial to ensure you can make the payments.

Potential Risks of Refinancing Your Student Loans

While refinancing can be a great way to lower your interest rate and consolidate your loans, there are some risks to consider, especially if you’re refinancing federal student loans.

Loss of Federal Loan Benefits: If you refinance federal student loans through either SoFi or Upstart, you will lose access to important federal protections. These include income-driven repayment plans, deferment or forbearance options, and eligibility for public service loan forgiveness. For borrowers who may rely on these benefits in the future, refinancing federal loans is not always the best option.

Variable Interest Rate Risk: While both SoFi and Upstart offer variable rates, these rates can fluctuate, meaning your payments could increase over time. If you’re uncertain about your future income or ability to make higher payments, a fixed-rate loan may be a better choice to lock in a predictable rate.

Student Loan Refinancing Comparison Chart

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

Which Is Better for You?

When it comes to refinancing your student loans, your decision between SoFi and Upstart depends on your specific needs:

• Choose SoFi if you have good credit, want a broad range of loan terms, and are looking for additional borrower benefits such as career coaching, financial advising, and unemployment protection. SoFi’s low interest rates and no fees make them an excellent choice for students who want a well-rounded refinancing option.
• Choose Upstart if you have limited credit history, need a quicker approval process, or are looking for more flexible eligibility criteria. While their interest rates can be higher, Upstart’s AI-driven model may help you qualify even if you have less credit history. However, keep in mind their origination fees and lack of additional perks.

Ultimately, both SoFi and Upstart offer great student loan refinancing options, but each has its own strengths. Consider your credit profile, how quickly you need the funds, and whether you’d like additional borrower benefits when choosing between these two lenders.