SoFi vs LendKey: Student loan refinancing compared

Choose SoFi if you want a consistent experience from a direct lender with career perks and member benefits; choose LendKey if you want to compare offers from credit unions and community banks for potentially lower rates and relationship banking.

Refinancing student loans is one of the most effective ways to reduce total education costs, but the lender you choose determines your future interest rate, repayment flexibility, and customer service experience. In this guide, you will learn the specific differences between SoFi and LendKey regarding interest rates, eligibility criteria, cosigner policies, and borrower protections. We will break down the trade-offs so you can decide which platform best supports your financial goals.

Whether you are a recent graduate managing your own debt or a parent looking to refinance Parent PLUS loans, understanding the distinct business models of these two industry leaders is the first step toward securing a better financial future.

How SoFi and LendKey work: Business models explained

Before comparing rates, it is helpful to understand that SoFi and LendKey operate on fundamentally different business models. This structural difference impacts everything from your application experience to who actually services your loan.

SoFi (Social Finance) is a direct lender. When you apply with SoFi, they underwrite, fund, and service the loan themselves. This means you have a single point of contact, one set of consistent policies, and a standardized experience for all borrowers. SoFi positions itself as a “one-stop shop” for finances, offering members access to other products like investing, banking, and insurance alongside their loans.

LendKey is a lending marketplace that partners with hundreds of non-profit credit unions and community banks. When you fill out an application on LendKey, the platform matches you with local institutions that might not otherwise have a large digital presence. If you proceed with a loan, your debt is funded by that specific credit union or bank, not LendKey itself. This allows borrowers to potentially access lower rates often associated with non-profit lenders while using modern technology to find them.

For borrowers, the choice is between the consistency of a large national fintech company (SoFi) versus the potential for personalized rates and relationship banking from smaller community institutions (LendKey). For a broader look at how different lenders operate, you can review our comprehensive guide to student loan refinancing.

SoFi vs LendKey at a glance: Quick comparison

To help you make a quick assessment, the table below highlights the core features, terms, and limitations of each platform. While both offer competitive refinancing options, their specific terms vary significantly due to their different operating models.

Source: SoFi and LendKey official websites (rates and terms as of May 2025)

The most distinct difference for many borrowers is the cosigner release policy. LendKey partners frequently offer this option after a period of on-time payments, whereas SoFi currently does not offer cosigner release for refinanced student loans. Conversely, SoFi offers a standardized unemployment protection program, while LendKey borrowers are subject to the specific hardship policies of the credit union they match with.

Both lenders use soft credit pulls for initial rate checks, so comparing offers will not negatively impact your credit score.

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Interest rates and loan terms compared

The primary motivation for refinancing is securing a lower interest rate. Because SoFi and LendKey determine rates differently, it is common for a borrower to receive significantly different offers from each platform.

Both platforms offer fixed and variable interest rates. Fixed rates remain the same for the life of the loan, providing budget stability. Variable rates may start lower but can fluctuate with market conditions (specifically the SOFR index). 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 must be comfortable with the risk that payments could increase over time.

For more on choosing between these options, read our guide on fixed vs. variable student loan rates.

SoFi determines your rate based on a proprietary underwriting model that considers your credit history, income, career experience, and free cash flow. They reward strong financial profiles with their lowest advertised rates. As reported by SoFi, as of May 2025, enrolling in autopay provides a 0.25% interest rate reduction.

LendKey’s rates are determined by the individual credit unions and banks in their network. Because credit unions are non-profit organizations, they can sometimes offer lower rates than large national banks or fintech lenders, particularly for borrowers with strong community ties or specific credit profiles. Like SoFi, according to LendKey, most partner institutions offer a 0.25% autopay discount, though this must be confirmed with the specific lender you select.

Both platforms generally offer terms ranging from 5 to 20 years. Shorter terms (5-7 years) typically carry lower interest rates but higher monthly payments, while longer terms (15-20 years) lower your monthly obligation but increase the total interest paid over the life of the loan. SoFi consistently offers the full range of terms, while LendKey’s term options depend on which partner institutions match with your application.

Eligibility requirements: Who qualifies for SoFi vs LendKey

Qualifying for student loan refinancing generally requires a steady income, a good credit history, and a degree from an eligible institution. However, the specific thresholds differ between the two providers.

SoFi is known for having relatively strict eligibility standards, targeting financially stable professionals. To qualify, you typically need:

• Credit score: A strong credit score is generally required. While they do not publish a hard minimum, approved borrowers typically have scores of 650 or higher.
• Education: You generally must have graduated with an associate degree or higher from a Title IV-accredited school.
• Employment: You must be employed, have a verifiable offer of employment starting within 90 days, or have sufficient income from other sources.
• Citizenship: You must be a U.S. citizen, permanent resident, or qualifying visa holder.

Because LendKey aggregates offers from many lenders, their eligibility criteria can be broader. If you don’t fit the “perfect” borrower profile for a major bank, a local credit union via LendKey might still have a program for you.

• Credit score: Requirements vary by partner, but generally, a score in the mid-600s is the baseline. Some credit unions may be more flexible than national lenders.
• Income: Debt-to-income (DTI) requirements vary, but most partners look for a DTI ratio below 40-50%.
• Education: Most LendKey partners require you to have graduated, though the specific school list may vary by institution.
• Citizenship: Most partners require U.S. citizenship or permanent residency (Green Card).

If you are unsure about your credit standing, review our guide to credit scores for student loan refinancing before applying.

Application and approval process

The user experience is where the difference between a direct lender and a marketplace becomes most obvious. Here is what to expect when applying to each.

SoFi offers a streamlined, mobile-first experience designed for speed.

1. Pre-qualification: You create an account and provide basic information to see estimated rates in roughly two minutes. This is a soft credit check.
2. Select offer: If eligible, you choose your preferred term and rate type.
3. Upload documents: You upload proof of income (pay stubs) and loan statements directly to their secure portal.
4. Final approval: SoFi verifies your information. Once you sign the final agreement, they pay off your old loans, typically within a few days.

LendKey acts as a matchmaker, adding a step to the selection process but potentially offering more choice.

1. Check rates: You submit one form to check your eligibility against their network of credit unions and banks. This is also a soft credit check.
2. Compare matches: You will see a dashboard of offers from different institutions (e.g., “Navy Federal Credit Union” or “Citizens Bank of Edmond”).
3. Select lender: You choose the specific lender you want to work with.
4. Finalization: LendKey facilitates the document upload and verification process on behalf of that lender. Once approved, the specific bank or credit union funds your loan.

Key difference: With SoFi, you are dealing with SoFi from start to finish. With LendKey, you use their platform to apply, but your loan agreement is ultimately with a specific community bank or credit union.

Unique borrower benefits: SoFi vs LendKey perks

Interest rates are critical, but the additional benefits a lender provides can offer significant value, particularly during financial hardships or career transitions.

According to SoFi, the company invests heavily in “member benefits” that go beyond the loan itself. These perks are standardized for all borrowers:

• Unemployment protection: If you lose your job through no fault of your own, SoFi allows you to pause payments in 3-month increments (up to 12 months total). During this time, interest continues to accrue, but it provides a safety net that many private lenders lack.
• Career services: Members get access to complimentary career coaching, resume reviews, and tools to help negotiate salaries. According to Mark Kantrowitz, financial aid expert, “Private lenders sometimes offer benefits like autopay discounts or career support,” and SoFi is a prime example of this value-add strategy.
• Financial planning: Access to credentialed financial planners to discuss goals beyond student debt.
• Member events: Exclusive networking events and dinners in major cities.

LendKey’s benefits are rooted in the philosophy of credit unions:

• Relationship banking: By refinancing through a credit union, you often become a member of that institution. This can unlock better rates on auto loans, mortgages, or high-yield savings accounts in the future.
• Personalized service: Community banks and credit unions often pride themselves on customer service that is more personal than large national lenders.
• Hardship programs: While LendKey doesn’t have a single standardized unemployment policy like SoFi, many credit unions are willing to work with members during tough times. You must check the specific terms of the partner lender you choose.

Cosigner policies and cosigner release options

For many recent graduates, a cosigner is necessary to meet income or credit requirements. However, most borrowers and cosigners eventually want that financial tether cut. This is a major differentiator between SoFi and LendKey.

SoFi allows you to apply with a cosigner to improve your chances of approval or secure a lower rate. However, as of May 2025, according to SoFi’s official website, the company does not offer a cosigner release program for student loan refinancing. This means the cosigner remains legally responsible for the loan until it is paid in full or refinanced again with a different lender. This is a significant consideration for parents who want to help their child now but want to be removed from the debt later.

As reported by LendKey, many lenders within the LendKey network do offer cosigner release. While policies vary by partner, a typical requirement is 12 to 36 months of consecutive, on-time principal and interest payments, along with the primary borrower meeting credit and income requirements on their own.

If having a clear path to removing a cosigner is a priority for your family, LendKey (or checking the specific terms of the credit union offer) is likely the better option. For more details on how this process works, read our guide to student loan cosigners.

Federal loan refinancing: What you’re trading away

Before you refinance federal student loans with either SoFi or LendKey, it is critical to understand that you are permanently converting federal debt into private debt. This applies regardless of which private lender you choose.

When you refinance federal loans, you lose:

• Income-driven repayment (IDR) plans: Federal plans that cap payments at a percentage of your discretionary income.
• Public Service Loan Forgiveness (PSLF): The ability to have balances forgiven after 10 years of work in government or non-profit sectors.
• Federal forbearance and deferment: While private lenders offer some hardship options, they are rarely as generous or guaranteed as federal protections.

When does refinancing make sense? Refinancing federal loans is typically only recommended if you have a stable income, a strong emergency fund, and no intention of pursuing loan forgiveness. If your goal is strictly to minimize interest costs and pay off debt aggressively, the lower rates from private lenders can save you thousands. Compare the trade-offs in our federal vs. private student loans comparison.

Best-fit scenarios: When to choose SoFi vs LendKey

Both lenders are reputable and offer competitive products, but they serve slightly different needs. Use this framework to decide which application is right for you.

• You value career and networking perks: You want access to career coaching, financial planners, and member events.
• You want a guaranteed safety net: You prefer a defined unemployment protection policy over variable lender policies.
• You want a streamlined digital experience: You prefer managing everything through a high-tech app from a single direct lender.
• You do not need cosigner release: You are applying on your own, or your cosigner is comfortable remaining on the loan for the full term.

• You want to shop local lenders: You prefer supporting credit unions and community banks over large fintech companies.
• You need cosigner release: You are applying with a parent or guardian who wants a clear exit strategy from the loan obligation.
• You want to compare multiple offers: You want to see rates from various institutions with a single application.
• You value relationship banking: You are interested in establishing a relationship with a financial institution that might offer other banking products.

Find your best refinancing rate in minutes. Compare personalized offers from SoFi, LendKey, and other top lenders—one application, multiple offers, no credit score impact. Trusted by 50,000+ families.

Frequently asked questions

Yes. Both SoFi and LendKey allow you to check your rates using a soft credit pull, which does not impact your credit score. It is smart to check rates with both platforms to see which can offer you the lowest APR before proceeding with a full application.

Both lenders typically complete the process within 1-2 weeks. SoFi’s direct lender model often allows for a slightly more consistent timeline, whereas LendKey’s timing can vary depending on the specific credit union or bank partner you select.

Yes, both platforms allow you to refinance Parent PLUS loans. This can help parents lower their interest rate. Additionally, some lenders on the LendKey network and SoFi allow parents to transfer the loan into the child’s name, provided the child meets the credit and income requirements.

According to SoFi, the company offers a standardized unemployment protection program that can pause payments for up to 12 months (in 3-month increments). LendKey does not have a universal policy; hardship options depend entirely on the specific credit union or bank partner that funds your loan.

Yes, both lenders refinance undergraduate and graduate student loans, including those for medical school, law school, and MBA programs. Borrowers with advanced degrees and high income potential are often eligible for the most competitive rates.

References and resources

• Official lender resources:
  • SoFi Student Loan Refinancing
  • LendKey Student Loan Refinancing
• Federal resources:
  • StudentAid.gov – Federal Student Aid information
  • Consumer Financial Protection Bureau – Student loan resources
• College Finance guides:
  • Student Loan Refinancing Guide
  • Fixed vs Variable Rate Guide
  • Private Student Loans Comparison