SAN FRANCISCO, April 29, 2015 /PRNewswire/ -- SoFi, a leader in marketplace lending, today announced it now offers Parent Loans as an affordable alternative to both private and Federal Parent PLUS Loans for parents financing their children's college education. The loans are designed to help parents pay for the rising cost of their children's education while continuing to save for their own retirement or other important financial goals. Following a successful pilot at Stanford University last year, the SoFi Parent Loan is now available in 49 states and the District of Columbiai, for up to the cost of attendance at thousands of accredited universities.
Student loan debt in America has surpassed $1.2 trillion and parent borrowing for college makes up almost 13% of that outstanding debt.ii SoFi's new Parent Loans provide significant savings compared to other options, including Federal Parent PLUS loans that currently require a 4.3% origination fee and a 7.21% interest rate. SoFi's Parent Loans have no fees and start at 4.50% and 2.93% for fixed and variable rates, respectively.
SoFi has also tailored the application experience to fit the needs of busy parents, with a mobile-optimized application that takes as little as 2 minutes to find rates. Features include:
- Loans starting at $10,000 and capped at the cost of attendance, less other sources of aid
- Choice of available terms
- Seamless online, mobile optimized application
- No origination fees or pre-payment penalties
- Direct disbursement
- Access to live customer support 7 days a week
SoFi Parent Loan borrowers will also have access to the company's exclusive member benefits. Designed to build a relationship across a lifetime of needs, these benefits include access to exclusive SoFi products and services, including career services.
"The cost to attend college has skyrocketed to about $50,000 year or more and that's just for one child," said Mike Cagney, CEO of SoFi. "As the lowest cost marketplace lender, we're providing serious savings to parent borrowers. And by doing so, we're hoping to relieve parents from the burden of Federal debt and help solve one of the biggest financial burdens facing families today."
SoFi also offers parents the ability to refinance their existing Parent PLUS Loans. Currently, more than 3 million Parent PLUS borrowers owe nearly $62 billion, or about $20,000 per borrower.iii SoFi refinances Parent PLUS Loans with variable rates ranging from 1.90% to 5.17% and fixed rates ranging from 3.50% to 7.24%, with Autopay. When refinancing, parents can transition their existing Parent PLUS loans to their children, alleviating some of that burden to pursue other financial goals.
For more information on SoFi Parent Loans, visit sofi.com/parent-loan/.
SoFi is a leader in marketplace lending and the largest provider of student loan refinancing, with over $2 billion dollars in loans funded to date. We're transforming financial services for early stage professionals with student loan refinancing, mortgages, personal loans, and MBA loans. Unlike traditional lenders, our proprietary underwriting approach takes into account merit and employment history to offer unique credit products our members won't find elsewhere. We offer individual and institutional investors the ability to create positive social impact on the communities they care about while earning compelling rates of return. For more information, visit SoFi.com.
For press inquiries, including access to SoFi Parent Loan borrowers available for interviews, contact:
i Exception: Nevada (and variable rate loans are not offered in Minnesota or Tennessee)
ii According to Mark Kantrowitz, publisher of Edvisors Network Inc.
iii The Department of Education: http://www.usnews.com/education/best-colleges/paying-for-college/articles/2014/12/08/4-strategies-for-repaying-federal-parent-plus-loans