Any experiences consolidating student loans with SOFI?
September 6, 2013 3:56 PM   Subscribe

I just found out about SOFI, a company/ service that will let you consolidate your student loans - they solicit other alumni to lend. I am not interested in consolidating my federal loans (want that federal guarantee / public service forgiveness option) but I have two companies now servicing my private loans and think this could be a good option for me.

I checked their listing of eligible schools and NYU, my grad school alma-mater is listed under the schools that are serviced.

Anyone have advice or experiences to share in working with this company? I now have my private loans with two companies: Citi and Discover and I couldn't really be more unhappy (except with my 24-year-old self who took out the loans, but that's another story...).

Called them and it looks like my monthly payment would go down about $100 or $110 per month, BUT my interest rate would increase about 2% from what it is now and has been for 5 years (I have variable rate but it hasn't changed so far during the life of the loan). $100 a month is not insignificant for me right now, as I am paying $653 per month for my loans, federal and private (a good chunk of my non-profit income). But I don't want to get into a situation with a company that I will regret later.

Any experiences with this particular company or thoughts on consolidating private loans to share would be appreciated!
posted by ethel to Work & Money (2 answers total) 3 users marked this as a favorite
 
If your interest rate is going up, and your loan amount is staying the same. How is your payment going down? A higher interest rate already sounds like a worse deal.
posted by TheAdamist at 6:20 PM on September 6, 2013 [1 favorite]


I'm guessing the repayment period is longer? Based on the info in your question this sounds like a worse deal for you, but run the numbers - use a loan repayment calculator to compare the total you'll pay with your current rate/balance/remaining term and the one being offered. Usually you refinance to get a LOWER interest rate, not higher, so be very careful that you know all the details going in. You'll also want to compare the new lender's options for deferral or forbearance to what you currently have.
posted by ella wren at 7:26 PM on September 6, 2013


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