Are you buried under a crippling mound of student debt?  You’re not alone.  These days student debt touches all disciplines and demographics.  Student loans are to millennials what a mortgage and two kids were to our grandparents’ generation—commonplace, part of the cultural fabric, and a huge financial burden.

Never fear, SoFi is here! SoFi.com is a social marketplace that matches successful alumni from your university with new graduates looking to refinance student debt and reduce their annual interest rate.  The investors both strengthen their alumni community and get better-than-savings-account investment returns, and the new graduates get access to more favorable interest rates than those available through private lenders or the federal government. 

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If you’re like me, you worked your fingers to the bone to get into a good college.  Then you focused in college to get a “good” entry-level job that paid barely enough to cover your rent and nightly ramen.  All of your hard work merely afforded you the “opportunity” to pay down your student loans, not the opportunity to create a better life.

By matching successful, driven graduates with qualified alumni investors, SoFi has managed to remove the middle-man from the student loan market and offer student loan “pricing” that reflects the true likelihood you’ll repay the loan.  After all, who knows your degree better than those who share your background?

 

In addition to loan consolidation and lower interest payments, SoFi members also receive the added perks of career counseling, job placement services, and a supportive community of alumni.  Though it was only founded in 2011, SoFi already claims to have funded over $400,000,000 in loans to over 4,000 borrowers. 

Here’s how it works.  SoFi investors (alumni from your school) pay off your public and/or private student loan obligations and in turn lend directly to you at fixed rates between 4.99% and 6.74% and variable rates as low as 2.91%. If you graduated school in the last five years, your student debt might be costing you as much as 8.5% in interest annually—ouch! — and this when interest rates on other debt products are at multi-generational lows. 

Consider that a $50,000, 10-year loan at 8.5% must be repaid in 120 equal monthly installments of approximately $620, while the same loan at 6% would be repaid in the same 120 equal monthly installments of approximately $555—a savings of about $65 per month or $7,800 over the life of the loan!!  Now that’s really your hard work paying off….

To learn more about SoFi, go to www.sofi.com.

 

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