SoFi Parent PLUS loan refinancing: rates, requirements, and how to apply

SoFi offers Parent PLUS loan refinancing that allows qualified borrowers to replace high-interest federal loans with a private loan featuring potentially lower rates and zero fees. This process permanently converts federal debt into private debt, meaning you gain potential interest savings and member benefits but lose access to federal protections like Income-Contingent Repayment (ICR) and Public Service Loan Forgiveness (PSLF).

You’ll learn the specific eligibility requirements for SoFi refinancing, how their rates compare to federal options, the step-by-step application process, and the critical trade-offs you must consider before applying.

For parents, refinancing can significantly reduce monthly obligations and total interest costs, freeing up cash flow for other family priorities. For students and graduates, if you plan to share responsibility for these loans or take over payments eventually, refinancing to a lower rate now can reduce the total cost when the loan transfers to you later. Rates and terms mentioned in this guide are current as of October 2023.

Learning objectives

By the end of this guide, you’ll be able to:

• Determine if you meet SoFi’s specific credit and income eligibility requirements for Parent PLUS refinancing.
• Compare SoFi’s current rates and fee structures against your existing federal Parent PLUS loan to calculate potential savings.
• Identify exactly which federal protections you will lose by moving to a private lender.
• Navigate the application process with a clear understanding of documentation needs and timelines.
• Decide whether the financial benefits of SoFi refinancing outweigh the loss of federal flexibility for your specific situation.

Context: how Parent PLUS refinancing works and what you give up

Before diving into rates and requirements, it is vital to understand the mechanics of refinancing. When you refinance a Parent PLUS loan with SoFi, a private lender pays off your existing federal loan and issues a new private loan with new terms. This is fundamentally different from federal consolidation, which combines loans but keeps them within the federal system.

The conversion from federal to private debt is irreversible. Once you refinance, you cannot convert the loan back to a federal loan. This means you permanently lose access to federal benefits, including:

• Income-Driven Repayment (IDR): Specifically Income-Contingent Repayment (ICR), which is the only IDR plan available to Parent PLUS borrowers who consolidate federally.
• Public Service Loan Forgiveness (PSLF): If you work in public service, refinancing disqualifies you from forgiveness.
• Federal Deferment and Forbearance: While SoFi offers some hardship protections, they are not as extensive or guaranteed as federal options.
• Death and Disability Discharge: Federal loans offer specific discharge rules that private lenders may not match exactly, though SoFi does offer compassionate discharge in the event of the primary borrower’s death.
• Servicer Change: Your loan will move from a federal servicer (like MOHELA or Nelnet) to SoFi (or their servicing partner, MOHELA).

Refinancing generally makes sense if you have a strong financial profile, stable income, and no intention of utilizing federal forgiveness programs. If you are unsure about losing these protections, review our guide on federal student loan consolidation first.

Decision: should you refinance your Parent PLUS loan with SoFi?

Use this checklist to determine if SoFi refinancing is a viable option for your financial situation. If you answer “Yes” to most of these questions, refinancing may be a smart financial move.

• Credit Score Readiness: Do you have a credit score of approximately 680 or higher, or access to a creditworthy cosigner who does?
• Debt-to-Income Ratio: Is your income high enough relative to your debt payments to meet private underwriting standards?
• Federal Protections: Are you certain you will NOT pursue Public Service Loan Forgiveness (PSLF) or need Income-Contingent Repayment (ICR)?
• Rate Gap: Can you secure a new interest rate that is at least 1–2 percentage points lower than your current Parent PLUS rate?
• Employment Stability: Do you have a steady income source and an emergency fund to handle payments if you face a temporary financial setback?
• Loan Transfer Plans: If you plan for the student to take over the loan, have you discussed the fact that refinancing keeps the loan in your name unless the student refinances it separately?

If you answered “No” to the questions regarding credit score or federal protections, you may want to explore federal Parent PLUS repayment options instead.

SoFi Parent PLUS refinancing eligibility requirements

To qualify for SoFi’s refinancing product, you must meet specific criteria regarding your credit history, income, and the loans themselves. While SoFi is known for a streamlined digital experience, their underwriting standards are rigorous to ensure borrowers can afford the new private loan.

• Credit Score: While SoFi does not publish a hard minimum credit score, successful applicants typically have a score of 680 or higher. A higher score generally unlocks the most competitive rates.
• Income and Employment: You must be employed, have a verifiable offer of employment to start within the next 90 days, or have sufficient income from other sources. SoFi evaluates your debt-to-income (DTI) ratio to ensure you have enough cash flow to manage monthly payments.
• Financial History: You generally cannot have a recent bankruptcy, foreclosure, or repossession on your credit report.

• Citizenship: You must be a U.S. citizen, permanent resident, or a non-permanent resident alien with a valid visa.
• Loan Types: Parent PLUS loans are eligible for refinancing. You can also combine Parent PLUS loans with other private or federal student loans you hold into a single new loan.
• Loan Amounts: According to SoFi, as of October 2023, a minimum loan amount of $5,000 is required to refinance. The maximum amount is the total balance of your qualified education loans.
• Degree Status: Generally, the student for whom the loan was taken must have graduated or be close to graduation. SoFi typically requires the degree to be from a Title IV accredited institution.

If your credit score or income is borderline, adding a cosigner with a strong financial profile can improve your chances of approval and potentially secure a lower interest rate. According to Mark Kantrowitz, financial aid expert, “Most students will need a cosigner to qualify for a private student loan.” While this often applies to student borrowers, parents with high debt-to-income ratios can also benefit significantly from a creditworthy cosigner.

For the most current eligibility details, visit the SoFi eligibility page.

SoFi Parent PLUS refinancing rates, terms, and fees

Understanding the costs associated with refinancing is essential for calculating your potential savings. SoFi is competitive in the market because it eliminates many of the fees charged by traditional lenders and the federal government.

As of October 2023, SoFi offers both fixed and variable interest rates. Your specific rate is determined by your creditworthiness, income, selected loan term, and whether you use a cosigner.

• Fixed Rates: These remain the same for the life of the loan, providing predictable monthly payments. SoFi’s fixed rates are 2.74% - 7.99% APR.
• Variable Rates: These may start lower than fixed rates but can fluctuate monthly based on market conditions (typically tied to the SOFR index). SoFi’s variable rates are 1.74% - 7.99% APR.
• Autopay Discount: According to SoFi, the lender offers a 0.25% rate discount if you enroll in automatic payments.

For context, according to StudentAid.gov, federal Parent PLUS loans disbursed between July 1, 2023, and June 30, 2024, carry a fixed interest rate of 8.05%. If you can qualify for a rate significantly lower than this, the savings can be substantial.

SoFi offers flexible repayment terms, typically ranging from 5 to 20 years. Shorter terms (like 5 or 7 years) usually come with lower interest rates but higher monthly payments, while longer terms (15 or 20 years) lower your monthly payment but increase the total interest paid over the life of the loan.

One of SoFi’s strongest selling points is its fee structure. According to StudentAid.gov, federal Parent PLUS loans charge an origination fee of 4.228% for loans disbursed on or after October 1, 2020, and before October 1, 2024. In contrast, SoFi charges no origination fees.

Source: SoFi.com and StudentAid.gov (Federal rates/fees effective July 1, 2023 – June 30, 2024)

Before you apply: what to know about credit checks and trade-offs

Before starting the application, it is important to understand how the process impacts your credit and to confirm you are comfortable with the trade-offs.

SoFi allows you to check your rate using a soft credit pull. This process allows you to see your estimated interest rate and monthly payment without affecting your credit score. A hard credit pull, which can temporarily lower your score by a few points, only occurs if you choose a loan offer and proceed with the full application.

If you apply with a cosigner, be aware that their credit will also be checked. Both you and the cosigner are equally responsible for the debt. This means missed payments will damage both credit scores.

If you choose a variable rate loan, understand that your interest rate and monthly payment can increase if market rates rise. Ensure your budget can handle potential payment increases before selecting this option.

Remember, by refinancing, you are permanently leaving the federal system. If you have any doubt about your job stability or believe you might need Income-Contingent Repayment (ICR) in the future, pause and review the federal protections you are giving up.

If your credit is borderline, applying with a strong cosigner can improve approval odds and your rate.

How to apply for SoFi Parent PLUS refinancing

SoFi’s application process is digital-first and designed to be completed quickly. Here is the step-by-step process so you know what to expect.

1. Check Your Rate (2 Minutes): Create an account on SoFi’s website and provide basic information (name, address, income, education info). SoFi will perform a soft credit check to determine your eligibility.
2. Review Your Offers: If you qualify, you will see a dashboard with various loan offers. You can toggle between fixed and variable rates and different loan terms (e.g., 5, 10, 15 years) to see how they affect your monthly payment.
3. Select Your Loan: Choose the term and rate structure that best fits your budget and savings goals.
4. Complete Full Application: Upload required documentation. This typically includes:
   • Government-issued ID (Driver’s license or passport)
   • Proof of income (Recent pay stubs or tax returns)
   • Loan payoff statements from your current servicer

   Note: At this stage, SoFi will perform a hard credit inquiry.

5. Verification and Approval: SoFi’s team will verify your documents. This process can take anywhere from a few days to a few weeks, depending on the complexity of your application.
6. Loan Disbursement: Once approved and signed, SoFi will send the funds directly to your previous lender to pay off your Parent PLUS loan. You will then begin making payments to SoFi.

Ready to see your personalized rate? Check your rate with SoFi in 2 minutes—no credit score impact.

According to SoFi, the company has helped members refinance over $30 billion in student loan debt.

SoFi member benefits for Parent PLUS refinance customers

One factor that differentiates SoFi from many other lenders is its focus on “membership.” When you refinance with SoFi, you gain access to benefits that go beyond the loan itself. These can be particularly valuable for families managing complex finances.

• Career Services: SoFi offers complimentary career coaching, resume reviews, and job search assistance. This is a unique benefit that can be utilized by the borrower to improve earning potential.
• Financial Planning: Members have no-cost access to credentialed financial planners. They can help you build a budget, plan for retirement, or strategize debt repayment.
• Unemployment Protection: According to SoFi, if you lose your job through no fault of your own, the lender offers an unemployment protection program. You may be eligible to pause your payments in three-month increments (up to 12 months total) while you look for work. Interest continues to accrue, but this safety net provides breathing room.
• Member Events and Community: SoFi hosts networking events, happy hours, and educational webinars for members.
• Referral Bonuses: Members can earn cash bonuses for referring friends or family members who refinance their student loans or open other SoFi accounts.

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 a lender that leans heavily into these value-added services.

SoFi Parent PLUS refinancing vs. standard student loan refinancing

It is important to clarify that SoFi does not have a separate “Parent PLUS” product with different rules. It is the same refinancing product used for student borrowers, but the application is tailored to the parent’s financial profile.

Same Rates, Different Profiles: Parents and students receive rates based on the same underwriting criteria. However, parents often have longer credit histories and higher incomes than recent graduates, which means they may qualify for better rates or higher loan amounts.

Combining Loans: As a parent, you can refinance a Parent PLUS loan alongside other private or federal education loans you hold in your own name. This simplifies repayment by consolidating multiple bills into one monthly payment.

Borrower Identity: The most critical distinction is that refinancing a Parent PLUS loan keeps the debt in the parent’s name. It does not automatically transfer the legal responsibility of the loan to the child.

Can you transfer a refinanced Parent PLUS loan to the student?

A common question among families is whether refinancing can shift the debt burden from the parent to the student. The direct answer is: SoFi does not offer a direct loan transfer feature within the parent’s refinancing application.

However, the transfer can be achieved through a different method. If the goal is to move the debt to the student, the student must refinance the loan in their own name. Here is how that works:

1. The student applies for a SoFi student loan refinance individually.
2. The student must meet all credit, income, and employment requirements on their own (or with a different cosigner).
3. If approved, the new loan in the student’s name pays off the parent’s loan.

This path requires the student to have established credit and a steady income, which often takes a few years after graduation. Until then, some families choose to have the parent refinance to secure a lower rate immediately, with an agreement that the student will refinance the loan into their name once they are eligible.

Pros and cons of SoFi Parent PLUS loan refinancing

Before making your final decision, review this summary of advantages and disadvantages to ensure SoFi is the right fit for your family.

• Potential Interest Savings: If your credit is strong, you may secure rates of 2.74% - 7.99% for fixed or 1.74% - 7.99% for variable, which can be significantly lower than the federal Parent PLUS rate.
• No Fees: Zero origination fees, application fees, or prepayment penalties.
• Member Benefits: Access to free financial planning, career coaching, and unemployment protection.
• Flexible Terms: Choose repayment periods from 5 to 20 years to optimize for monthly cash flow or total interest savings.
• Soft Credit Check: You can see your rate without impacting your credit score.

• Loss of Federal Protections: You permanently lose access to PSLF, ICR, and federal forbearance options.
• Strict Eligibility: Requires good to excellent credit and stable income to qualify for the best rates.
• No Direct Transfer: Does not automatically transfer the loan to the student; the student must refinance separately to take over the debt.
• Variable Rate Risk: If you choose a variable rate, your payments could increase over time.

Want to see if SoFi’s benefits outweigh the trade-offs for your situation? Check your personalized rate with no credit impact.

Frequently asked questions about SoFi Parent PLUS refinancing

While SoFi does not publish a strict minimum, borrowers typically need a credit score of roughly 680 or higher to qualify. Higher scores generally unlock lower interest rates. If your score is lower, applying with a creditworthy cosigner can improve your approval odds.

No. SoFi charges no origination fees, no application fees, and no prepayment penalties. This is a significant advantage over federal Parent PLUS loans, which according to StudentAid.gov charge an origination fee exceeding 4%.

Yes. You can choose to refinance all your Parent PLUS loans or just specific ones. This allows you to leave some loans in the federal system if you want to retain federal protections for a portion of your debt.

Checking your rate takes about 2 minutes. Once you submit a full application, the verification and approval process typically takes 2 to 4 weeks, though it can be faster if all documentation is accurate and submitted promptly.

Yes. Refinancing converts your federal loan into a private loan. You will no longer be eligible for Public Service Loan Forgiveness (PSLF) or Teacher Loan Forgiveness. If you are pursuing these programs, you should not refinance.

Not directly through the parent’s refinancing application. To transfer the debt, the student must apply to refinance the loan in their own name and meet SoFi’s eligibility requirements independently.

Refinancing your Parent PLUS loan with SoFi can be a strategic move to lower your interest rate and pay off debt faster, but it requires careful consideration of what you are giving up. Here are the key takeaways:

• Competitive Savings: SoFi offers competitive fixed and variable rates with absolutely no fees, potentially saving you thousands over the life of the loan.
• Eligibility Matters: You need strong credit (typically 680+) and stable income to qualify for the best terms.
• Permanent Trade-Off: You will permanently lose federal protections like PSLF and Income-Contingent Repayment.
• Added Value: SoFi’s member benefits, including career coaching and financial planning, provide value beyond just the interest rate.
• Strategic Choice: If you have a secure job, no need for federal forgiveness, and want to reduce total costs, refinancing is a powerful tool.

Taking control of your education debt is a smart financial move. If the math works in your favor, refinancing can provide immediate relief to your monthly budget and long-term savings for your family.

References and resources

For further research and verification of the details provided in this guide, consult the following resources:

• SoFi Student Loan Refinancing Rates and Terms
• StudentAid.gov: Parent PLUS Loans
• College Finance: Parent PLUS Loans Complete Guide
• College Finance: Student Loan Refinancing Guide
• College Finance: FAFSA Guide