SoFi vs ELFI: which refinancing lender is right for you?
Which lender is better—SoFi or ELFI? SoFi excels for borrowers wanting comprehensive member benefits, lower loan minimums, and a streamlined digital experience. ELFI stands out for personalized service, dedicated loan advisors, and competitive rates for borrowers with strong credit profiles.
Choosing the right lender for student loan refinancing is about more than just finding the lowest interest rate—though that is certainly a priority. It is also about matching loan terms to your financial goals, whether you are a parent managing Parent PLUS loans or a graduate handling your own debt. In this guide, you will learn how these two top-tier lenders compare on rates, repayment terms, eligibility requirements, and borrower benefits.
Context: how student loan refinancing works and when it makes sense
Before diving into the specific differences between SoFi and ELFI, it is essential to understand the mechanics of refinancing to ensure it is the right strategic move for your finances. Refinancing involves taking out a new loan from a private lender to pay off one or more existing student loans. The goal is to secure a new loan with a lower interest rate, a different repayment term, or both.
For borrowers with high-interest private loans, refinancing is often a clear choice if you can qualify for a better rate. However, if you are refinancing federal student loans, there is a significant trade-off. By moving federal debt to a private lender, you permanently lose access to federal protections. These include income-driven repayment (IDR) plans, Public Service Loan Forgiveness (PSLF), and generous federal deferment options. You can review these protections in detail at StudentAid.gov.
Refinancing typically benefits borrowers who have a stable income, a strong credit history, and a low debt-to-income ratio. It is a powerful tool for those who are confident they will not need federal safety nets in the future. According to Betsy Mayotte, student loan expert, “In general, federal loans should be your first stop, but private loans can be appropriate when you’ve maxed out your federal eligibility.”
If you are struggling with monthly payments or working in a public service job, sticking with federal options is usually safer. However, for families and graduates focused on minimizing total interest costs and paying off debt faster, refinancing remains one of the most effective strategies available. For a deeper dive into the process, check our comprehensive guide to student loan refinancing.
SoFi vs ELFI: quick comparison at a glance
To help you quickly assess which lender aligns with your needs, we have compiled the key features of both SoFi and ELFI. Both lenders are heavyweights in the refinancing space, but their product structures cater to slightly different borrower needs.
| Feature | SoFi | ELFI (Education Loan Finance) |
|---|---|---|
| Fixed APR Range | Competitive fixed rates available | Competitive fixed rates available |
| Variable APR Range | Competitive variable rates available | Competitive variable rates available |
| Loan Amounts | $5,000 – Full balance | $15,000 – Full balance |
| Repayment Terms | 5, 7, 10, 15, 20 years | 5, 7, 10, 15, 20 years |
| Autopay Discount | 0.25% rate reduction | 0.25% rate reduction |
| Cosigner Release | Available after 24 on-time payments | Available (check current terms) |
| Standout Feature | Career coaching & member benefits | Dedicated Personal Loan Advisor |
Source: SoFi.com and ELFI.com (Rates and terms as of October 2024)
According to SoFi.com, SoFi is more accessible for borrowers with smaller loan balances, starting at just $5,000, whereas ELFI requires a minimum of $15,000. This makes ELFI less suitable for graduates who have already paid down a significant portion of their debt. Additionally, SoFi distinguishes itself with broader member benefits, while ELFI focuses on a high-touch service model. Both lenders offer the standard suite of repayment terms, allowing you to choose between paying off debt quickly or lowering monthly payments.
Interest rates and APR comparison
The interest rate is often the deciding factor for most borrowers. Both SoFi and ELFI offer competitive fixed and variable APR options, but the rate you are actually offered depends on how each lender weighs your financial profile. It is important to remember that the “lowest advertised rate” is typically reserved for borrowers with excellent credit and high income.
SoFi utilizes a proprietary underwriting model that looks beyond just your FICO score. They consider factors like your estimated cash flow and career trajectory. This can sometimes result in more favorable rates for early-career professionals who have high earning potential but a shorter credit history. Their variable rates of 1.74% - 7.99% can be an attractive option for those who plan to pay off their loan aggressively, though variable rates do carry the risk of increasing over time. SoFi fixed rates are 2.74% - 7.99%.
ELFI is known for offering highly competitive rates, particularly for borrowers with strong credit scores and established financial histories. They position themselves as a lender for creditworthy borrowers, and their rates often reflect that focus. According to ELFI.com, if you have an excellent credit score (typically 750+), ELFI may offer a lower floor rate compared to many competitors. ELFI fixed rates are , and their variable rates are .
As shown in the comparison table, both lenders offer fixed and variable options. A fixed APR provides stability with consistent monthly payments, making budgeting easier for families and recent graduates. A variable APR might start lower than a fixed rate, but it fluctuates with market indices. If you choose a variable rate, ensure you have the financial buffer to handle potential payment increases.
Ultimately, because underwriting criteria vary, one lender may view your profile more favorably than the other. Checking your rate with both is the only way to know for sure which is cheaper for you specifically. You can view the most current rates directly on the SoFi rate page and ELFI rate page.
Loan terms and amounts available
Beyond the interest rate, the structure of your loan—specifically the term length and the amount you can borrow—plays a massive role in your monthly budget and total cost of borrowing. Both SoFi and ELFI offer a standard range of repayment terms: 5, 7, 10, 15, and 20 years. This flexibility allows you to customize your repayment strategy.
Choosing a shorter term, such as 5 or 7 years, will result in higher monthly payments but significantly less interest paid over the life of the loan. Conversely, a 15 or 20-year term will lower your monthly obligation, freeing up cash flow for other expenses like rent or savings, but will increase the total interest cost. You can use our refinancing calculator to model how different terms impact your wallet.
A major differentiator between the two lenders is the minimum loan amount. According to SoFi.com, SoFi allows you to refinance as little as $5,000. This is ideal for borrowers who may have already paid off a chunk of their debt or those who only want to refinance a specific high-interest private loan. ELFI, on the other hand, has a minimum refinancing amount of $15,000 as of October 2024. If your remaining balance is $12,000, ELFI is not an option for you, regardless of your credit score.
Both lenders are generous with maximum loan amounts, typically allowing you to refinance the full balance of your qualified education debt. This is particularly relevant for parents holding large Parent PLUS balances or professionals with significant graduate school debt, such as medical or law school loans.
Eligibility requirements: who qualifies for each lender
Even the best rates are irrelevant if you cannot qualify for the loan. While neither SoFi nor ELFI publishes a hard “minimum” credit score, industry standards and approval data give us a clear picture of what they are looking for.
Generally, both lenders require a credit score in the “good” to “excellent” range, typically starting around 660 to 680. However, approval odds improve significantly with scores above 700. In addition to credit history, both lenders require proof of stable income or a binding job offer. SoFi is somewhat unique in that it may be more flexible with borrowers who have non-traditional career paths, provided the cash flow is strong.
Key eligibility criteria (as of October 2024):
- Citizenship: You must be a U.S. citizen or permanent resident (SoFi also accepts visa holders in some specific contexts).
- Education: You must have graduated from a Title IV-eligible university or program. SoFi accepts an Associate’s degree or higher; ELFI generally requires a Bachelor’s degree or higher to refinance.
- Employment: You must be employed or have a job offer starting within 90 days.
If you are a parent looking to refinance Parent PLUS loans, both lenders offer this option. However, if you are a student wanting to take over a Parent PLUS loan into your own name, you will need to meet the income and credit requirements independently. For more on this specific strategy, read our guide on refinancing Parent PLUS loans.
For many recent graduates, meeting these income and credit benchmarks alone can be difficult. According to Mark Kantrowitz, financial aid expert, “Most students will need a cosigner to qualify for a private student loan.” Adding a creditworthy cosigner can not only help you qualify but also secure a lower interest rate from either lender.
Application process and customer experience
The application experience is where the philosophical differences between SoFi and ELFI become most apparent. SoFi is a fintech company at its core, prioritizing a slick, digital-first experience. ELFI, a division of SouthEast Bank, prioritizes a relationship-based banking experience.
SoFi’s experience: The process is designed to be fast and fully online. You can check your rate in minutes using a soft credit pull, which does not impact your credit score. Once you proceed with a full application, you can upload documents (pay stubs, loan statements) directly via their app or website. Most borrowers can complete the process without ever speaking to a human, though support is available via chat and phone if needed.
ELFI’s experience: ELFI also offers a quick online rate check with a soft credit pull. However, their defining feature is the “Personal Loan Advisor.” Once you start an application, you are assigned a specific advisor who serves as your single point of contact. Instead of calling a generic hotline and explaining your story to three different agents, you have a direct line to someone who knows your file. This can be incredibly reassuring for parents or borrowers with complex consolidation needs.
Both lenders typically process applications within a few weeks, though timelines vary based on how quickly you provide documentation. If speed and autonomy are your priorities, SoFi’s interface is hard to beat. If you prefer guidance and having a human expert manage the details, ELFI’s concierge approach is superior.
Borrower benefits and member perks
When interest rates are similar, borrower benefits can be the tie-breaker. This is an area where SoFi aggressively differentiates itself from the rest of the market.
SoFi member benefits:
SoFi views its borrowers as “members” and provides a suite of perks designed to help you get ahead financially and professionally. These include:
- Career Services: Complimentary access to career coaching and resume reviews.
- Financial Planning: Access to credentialed financial planners at no extra cost.
- Member Events: Networking events and community dinners.
- Ecosystem Perks: Discounts on other SoFi products (like personal loans or mortgage processing fees) and rewards points for using their app.
ELFI borrower benefits:
ELFI focuses its benefits on the loan experience itself rather than lifestyle perks.
- Dedicated Support: As mentioned, the Personal Loan Advisor is a significant benefit that simplifies the repayment journey.
- Referral Bonus: ELFI offers a robust referral program where you can earn money for referring friends who refinance.
- Fast Payment Bonus: Occasionally, ELFI runs promotions for faster repayment, though these vary by time.
SoFi clearly wins on the breadth of perks. If you are a young professional who might use career coaching or financial planning, these services could be worth hundreds of dollars. ELFI wins on depth of service; having a dedicated advisor can save you hours of frustration if administrative issues arise.
Autopay discounts, cosigner policies, and hardship options
Life happens, and flexibility matters. Both lenders offer features to reduce costs and protect you during tough times, but the specifics vary.
Autopay discounts:
According to both SoFi.com and ELFI.com as of October 2024, both SoFi and ELFI offer a standard 0.25% interest rate reduction when you enroll in automatic payments. This is an industry-standard benefit that you should absolutely utilize to lower your total interest costs.
Cosigner release:
If you apply with a cosigner, you likely want to release them from the loan obligation eventually.
- SoFi: According to SoFi.com, SoFi offers cosigner release after 24 consecutive on-time principal and interest payments, provided the primary borrower meets the underwriting criteria on their own.
- ELFI: As of October 2024, ELFI offers cosigner release, typically after a specific period of on-time payments (often 12-24 months), subject to credit approval. Always check the specific terms in your promissory note.
Hardship and forbearance:
This is a critical area of comparison. According to SoFi.com, SoFi offers a robust Unemployment Protection program. If you lose your job through no fault of your own, you can apply to pause payments for 3-month increments, up to 12 months in total over the life of the loan. During this time, interest may still accrue, but it provides a massive safety net.
ELFI offers forbearance options for economic hardship or medical difficulties, typically granted at the lender’s discretion for up to 12 months total as of October 2024. While helpful, SoFi’s formalized unemployment program is generally considered more comprehensive and transparent.
SoFi vs ELFI: which lender is right for you?
After comparing the rates, terms, and benefits, the choice between SoFi and ELFI often comes down to your personal preferences regarding technology versus human support, and your loan balance size.
Choose SoFi if:
- You have a smaller loan balance: You need to refinance between $5,000 and $15,000.
- You value career support: You want access to career coaching, financial planning, and networking events.
- You want digital convenience: You prefer managing everything via a top-tier mobile app.
- You want safety nets: The specific unemployment protection policy gives you peace of mind.
Choose ELFI if:
- You have excellent credit: You want to see if your strong credit profile can unlock a market-leading rate.
- You prefer personal service: You want a dedicated advisor who knows your name and your loan details.
- You have a larger balance: You are refinancing $15,000 or more.
- You dislike chatbots: You want to ensure you can reach a human easily whenever you have a question.
The best strategy: compare both
Since both lenders use soft credit inquiries for their initial rate checks, there is no downside to seeing what each will offer you. You might find that one offers a significantly lower rate than the other, making the decision purely financial.
Frequently asked questions: SoFi vs ELFI refinancing
Yes, both lenders allow you to refinance federal loans, private loans, or a combination of both into a single new loan. Remember that refinancing federal loans means forfeiting federal benefits.
No. Both lenders utilize a “soft credit pull” to provide you with a preliminary rate estimate. This does not impact your credit score. A hard credit inquiry will only occur if you choose an offer and submit a full application.
Neither lender publishes a strict minimum, but approval generally requires a score in the mid-to-high 600s. To get the lowest advertised rates, you will typically need a score in the mid-700s or higher.
Yes, both lenders allow parents to refinance Parent PLUS loans. Additionally, both allow qualified children to refinance Parent PLUS loans into their own names, transferring the legal responsibility of the debt. See our Parent PLUS refinancing guide for details.
The timeline is similar for both. Once you submit your full application and documents, approval can happen in a few days. Funding (paying off your old loans) typically takes another 1 to 2 weeks depending on your previous servicer.
Deciding between SoFi and ELFI is a good problem to have—both are reputable, high-quality lenders that offer competitive alternatives to high-interest debt. Your decision ultimately depends on whether you prioritize the “extras” and digital ease of SoFi or the personalized, relationship-based service of ELFI.
Key takeaways:
- SoFi is best for borrowers who want lower loan minimums ($5,000), extensive member benefits like career coaching, and robust unemployment protection.
- ELFI is ideal for borrowers with balances over $15,000 who value having a dedicated Personal Loan Advisor and potentially lower rates for excellent credit.
- Both lenders offer competitive fixed and variable rates, autopay discounts, and cosigner release options.
- No risk to check: You can view your potential rates with both lenders using a soft credit check that won’t hurt your score.
Refinancing is a smart financial move for qualified borrowers looking to reduce interest costs or simplify repayment. By comparing offers, you ensure you are getting the best possible terms for your financial future.
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