Earnest vs SoFi: Student loan refinancing compared

Choose Earnest if you want flexible repayment customization and granular payment control to fit a specific budget; choose SoFi if you value comprehensive member benefits, career support services, and a clear path for cosigner release. Both lenders offer competitive rates and no fees, but they serve different financial priorities.

Whether you are a parent managing family finances or a graduate looking to lower monthly payments, refinancing can be a powerful tool to regain control over debt. However, the nuances between top lenders like Earnest and SoFi can make the difference between a loan that simply exists and one that actively works for your financial goals. In this guide, you’ll learn how rates, terms, unique benefits, and eligibility requirements compare to make the right refinancing choice.

When refinancing makes sense

Before comparing specific lenders, it is crucial to determine if refinancing is the right strategic move for your situation. Refinancing involves taking out a new private loan to pay off one or more existing federal or private student loans. This process is most beneficial for borrowers who have established a stable income, improved their credit score since graduation (typically to 650 or higher), or are currently holding loans with high variable interest rates.

Refinancing makes sense when the math works in your favor—specifically, when you can secure a lower interest rate to reduce the total cost of the loan or extend the term to lower monthly payments to improve cash flow. Both parents carrying Parent PLUS loans and graduates managing their own debt can benefit from consolidating multiple payments into one.

However, refinancing is not for everyone. If you are refinancing federal student loans, you permanently lose access to federal benefits. This includes access to Income-Driven Repayment (IDR) plans, Public Service Loan Forgiveness (PSLF), and generous federal deferment or forbearance options. If your employment is unstable or you anticipate needing these safety nets, you should likely avoid refinancing federal loans, even if the private rates look attractive. For a deeper dive into these considerations, review our complete guide to student loan refinancing.

Both Earnest and SoFi allow you to refinance federal and private loans, as well as undergraduate and graduate debt. The decision ultimately hinges on whether the savings outweigh the loss of federal flexibility.

Quick decision: Earnest vs SoFi at a glance

If you need to make a decision quickly, this comparison highlights the core differences between these two top-tier lenders. While both offer competitive rates and a fee-free structure, their approach to borrower support and loan customization differs significantly.

Source: Earnest and SoFi official disclosures (rates and terms as of January 2025). Rates include autopay discounts where applicable.

Choose Earnest if:

• You want to pick an exact monthly payment amount and let the loan term adjust to match it (e.g., a 7-year, 4-month term).
• You have a “thin” credit file but strong savings and earning potential, as their underwriting looks at holistic financial health.
• You value the ability to skip one payment every 12 months in case of short-term cash flow needs.

Choose SoFi if:

• You want access to broader financial benefits, such as free financial planning and career coaching services.
• You plan to use a cosigner and want a clear, guaranteed path to release them from the loan after 24 months of on-time payments.
• You are interested in bundling other financial products (like checking or investing) to unlock rate discounts.

Interest rates and APR comparison

Interest rates are often the primary driver for refinancing decisions. As of January 2025, both Earnest and SoFi offer highly competitive rates that are frequently lower than historical federal averages for Parent PLUS and some graduate loans. However, the mechanism for determining your specific rate varies slightly between the two.

According to Earnest’s official disclosures, fixed rates are 2.47% - 7.99% APR and variable rates are 1.74% - 7.99% APR as of January 2025. Earnest uses a distinctive “Precision Pricing” model. Instead of fitting you into a broad credit tier, they evaluate unconventional factors like your savings patterns, career trajectory, and 401(k) contributions. This can sometimes result in a lower rate for responsible borrowers who might not have an 800+ credit score but demonstrate strong financial discipline.

SoFi’s official rates show fixed rates of 2.74% - 7.99% APR and variable rates of 1.74% - 7.99% APR as of January 2025. SoFi rewards members who use their ecosystem; you may qualify for additional rate discounts if you are an existing SoFi member or have other products with them. Both lenders include a 0.25% interest rate reduction for enrolling in autopay, which is factored into the lowest advertised rates.

It is important to note that variable rates can fluctuate with market conditions. According to Mark Kantrowitz, financial aid expert, “Private loans can offer variable interest rates, which may be lower than federal fixed rates initially.” However, borrowers should be prepared for the possibility of rates rising over the life of the loan. Checking your rate with both lenders won’t hurt your credit score, so comparing personalized offers is the only way to know for sure which is cheaper for you. For a broader look at the market, you can view our current private student loan rate comparison.

Loan terms and repayment flexibility

Beyond the interest rate, the structure of your repayment term dictates your monthly budget. This is an area where Earnest and SoFi have distinct philosophies.

Earnest is the market leader in repayment customization. While most lenders force you to choose a standard term (like 10 or 15 years), Earnest allows you to select your exact monthly payment amount. The system then calculates the precise term needed to meet that payment, resulting in terms like 8 years and 3 months. This allows borrowers to budget down to the dollar, ensuring the loan fits their life rather than the other way around. Additionally, Earnest offers a “Skip-a-Payment” feature, allowing borrowers to skip one payment every 12 months (though interest continues to accrue), which provides a safety valve for unexpected expenses.

SoFi adheres to more traditional loan terms, typically offering 5, 7, 10, 15, and 20-year repayment periods. While less granular than Earnest, these standard terms are sufficient for most borrowers. SoFi does offer unemployment protection (discussed in the next section), which provides flexibility during hardship, but they do not offer the same “pick your payment” precision or the specific skip-a-payment feature for non-hardship scenarios.

When choosing a term, remember the golden rule of lending: shorter terms result in higher monthly payments but significantly lower total interest costs. Longer terms improve monthly cash flow but increase the total amount paid over the life of the loan.

Unique benefits and member perks

When rates are similar, the additional benefits provided by the lender can tip the scales. Both lenders are “fee-free,” meaning they charge no origination fees, prepayment penalties, or late fees.

Earnest focuses its benefits on loan management and underwriting flexibility. Their primary perk is the aforementioned flexibility—the ability to adjust payment dates and amounts easily. Their unemployment protection is also robust, allowing borrowers to defer payments for three-month increments, up to 12 months total, if they involuntarily lose their job. This protection is built into the loan agreement and provides peace of mind for those in volatile industries.

SoFi positions itself as a holistic financial partner rather than just a lender. Becoming a SoFi member unlocks access to:

• Career Coaching: One-on-one advice to help you negotiate a raise or find a new job.
• Financial Planning: Complimentary access to financial planners who can help with broader goals like buying a home or retirement.
• Networking Events: Access to exclusive member experiences and networking opportunities.
• Unemployment Protection: Similar to Earnest, SoFi offers unemployment protection (typically in 3-month increments up to 12 months) where they pause payments and may even help with your job search.

If you are looking for a community and career support, SoFi offers clear value. If you simply want a flexible loan that you can manage precisely, Earnest’s structural benefits may be more appealing.

Ready to see your personalized rates? Compare offers from Earnest, SoFi, and other top lenders — checking rates won’t affect your credit. Trusted by 50,000+ students and families.

Eligibility requirements and credit expectations

Qualifying for student loan refinancing generally requires a stronger financial profile than applying for undergraduate private loans, as you are likely applying without a cosigner (though both allow cosigners).

Credit Score & History:
Both lenders typically look for a minimum credit score in the 650–680 range, though the most competitive rates go to borrowers with scores of 750 or higher. Earnest is unique in that they may approve borrowers with a slightly lower credit score or “thinner” credit file if other financial indicators—like savings habits and low debt-to-income ratios—are strong. SoFi generally adheres to stricter credit thresholds.

Income & Employment:
Stable income is non-negotiable. You must be employed or have a verified offer of employment starting soon. Both lenders will analyze your Debt-to-Income (DTI) ratio. While specific caps aren’t always public, a DTI below 40% is generally recommended for approval.

Education & Citizenship:
Both lenders refinance loans for graduates of Title IV accredited schools. You typically need to have completed your degree to refinance, unlike in-school loans. Both require you to be a U.S. citizen or permanent resident (green card holder). SoFi may accept specific visa holders if they have a qualified cosigner who is a citizen or permanent resident, whereas Earnest has historically been stricter regarding residency requirements.

Cosigner policies and release options

Many borrowers, especially recent graduates, apply for refinancing with a cosigner to secure a lower interest rate. However, the goal is often to eventually remove the cosigner from the obligation.

SoFi is the clear winner in this category. According to SoFi’s official policy, they offer a transparent cosigner release program where borrowers can apply to release their cosigner after making 24 consecutive, on-time principal and interest payments, provided they meet the credit and income requirements on their own at that time. This provides a clear “off-ramp” for parents or guardians helping out.

Earnest typically does not offer cosigner release for their student loan refinancing product. While they do offer it for their private student loans (in-school), their refinancing policies have historically required you to refinance the loan again entirely in your own name to remove a cosigner. This is a critical distinction for parents who want to help their child secure a low rate now but do not want to be legally tied to the debt for the next 10 or 20 years.

According to Mark Kantrowitz, financial aid expert, “Cosigner release is a valuable feature offered by some private lenders, rewarding responsible repayment.” If releasing a cosigner is a priority, SoFi offers the more straightforward path.

Application process and rate shopping

Applying for refinancing is a digital-first experience with both lenders, designed to be quick and user-friendly.

1. Prequalification (2 Minutes):
Both Earnest and SoFi allow you to check your rate without affecting your credit score. This is done via a “soft credit pull.” You will provide basic information like your name, address, income, and estimated loan balance. In return, you will see estimated fixed and variable rates.

2. Rate Shopping:
Because prequalification is risk-free, you should absolutely check rates with both lenders. It is also wise to check a few others during this window. If you decide to proceed with a full application, the lender will perform a “hard credit pull,” which may temporarily lower your score by a few points. If you do multiple hard pulls for similar loan types within a 14-45 day window, credit bureaus typically treat them as a single inquiry.

3. Documentation & Approval:
Once you select an offer, you will upload documents such as pay stubs, tax returns, and payoff statements from your current loan servicers. Approval can take anywhere from a few days to a couple of weeks depending on the complexity of your income verification. Once approved, the new lender pays off your old loans directly, and you begin making payments to the new lender.

Pros and cons summary

To help summarize your decision, here are the key advantages and drawbacks of each lender.

Pros:

• Unmatched Flexibility: Choose your exact monthly payment and loan term.
• Skip-a-Payment: Option to skip one payment every 12 months.
• Fair Underwriting: Looks at savings and financial habits, not just credit score.
• No Fees: No origination, prepayment, or late fees.

Cons:

• No Cosigner Release: Generally unavailable for refinancing products.
• Fewer Member Perks: Focuses on the loan product rather than broader career services.

Pros:

• Member Benefits: Free career coaching, financial planning, and networking.
• Cosigner Release: Clear path to release after 24 months.
• Ecosystem Discounts: Rate reductions for having other SoFi products.
• Strong Support: Unemployment protection includes job search assistance.

Cons:

• Standard Terms: Less flexibility to customize payment amounts compared to Earnest.
• Stricter Eligibility: Typically requires stronger traditional credit metrics.

Final verdict: which lender is right for you

Both Earnest and SoFi are top-tier lenders that have modernized the student loan refinancing landscape. The choice ultimately comes down to whether you prioritize loan flexibility or member benefits.

Choose Earnest if you want granular control over your budget. The ability to pick your exact payment and the option to skip a payment provides a level of day-to-day financial management that other lenders don’t match. It is also an excellent choice if your credit history is short but your financial habits are strong.

Choose SoFi if you view your loan as part of a broader financial journey. If you want career advice, financial planning, or plan to use a cosigner that you intend to release later, SoFi is the superior option. The added value of their member services can be worth a lot more than a fractional difference in interest rates.

Regardless of your choice, remember that refinancing federal loans means trading federal protections for private terms. Ensure your employment is stable and your emergency fund is healthy before making the switch. For qualified borrowers, however, locking in a lower rate with either lender can be a smart step toward financial freedom.

Refinancing your student loans is a major financial milestone that can accelerate your path out of debt. By comparing Earnest and SoFi, you are already looking at two of the most reputable options in the market.

• Earnest excels at payment flexibility and customization, making it ideal for budget-conscious borrowers.
• SoFi offers broader member benefits and career support, adding value beyond the loan itself.
• Both lenders offer competitive rates, no fees, and unemployment protection.
• Always rate shop with multiple lenders; prequalification takes minutes and does not hurt your credit score.

Compare personalized refinancing rates from Earnest, SoFi, and 6+ other top lenders in minutes — Trusted by 50,000+ students and families

Frequently asked questions

Neither is objectively “better”; it depends on your needs. Earnest is better for borrowers who want flexible repayment terms and customizable monthly payments. SoFi is better for borrowers seeking career support, financial planning services, and cosigner release options.

Both lenders offer highly competitive rates that fluctuate with market conditions. Because rates are determined by your personal credit profile, income, and debt-to-income ratio, one may offer you a lower rate than the other. You should prequalify with both to see which is cheaper for you.

Yes, both lenders allow you to refinance federal student loans, private student loans, and Parent PLUS loans. However, remember that refinancing federal loans into a private loan means losing access to federal benefits like PSLF and income-driven repayment plans.

No. Both lenders use a “soft credit pull” for their prequalification process, which allows you to see your estimated interest rate without impacting your credit score. A hard inquiry is only performed if you choose an offer and submit a full application.

SoFi has the better policy for refinancing. They offer cosigner release after 24 months of on-time payments, provided the primary borrower meets credit criteria. Earnest generally does not offer cosigner release for their refinancing loans.

While specific minimums can change, both lenders generally look for a credit score of at least 650 to 680. However, to qualify for the lowest advertised rates, borrowers typically need scores in the mid-to-high 700s along with a stable income.

References and resources

• Earnest Student Loan Refinancing – Official Lender Site
• SoFi Student Loan Refinancing – Official Lender Site
• StudentAid.gov – Federal Student Aid Information
• College Finance: Student Loan Refinancing Guide
• College Finance: Private Student Loan Comparison
• College Finance: Federal Student Loans Explained