SoFi

Packing up and heading off to college is an absolutely thrilling time in a young person’s life. However, with all the fun comes a lot of responsibility. One of the first, and perhaps most important, choices a college student must make is exactly where they want to live.

Students may choose between living on- or off-campus, though some schools require freshmen to live on-campus. On-campus housing is generally a convenient option for students because they will be close to their classes. Off-campus housing can potentially be less expensive than living on-campus.

Here are a few things to consider on your journey to finding college housing.

1. Start With a Budget

College student housing can get expensive very quickly, especially if a student decides to live in off-campus housing.

It’s important to begin any college housing search by first determining a budget. How much rent can the student actually afford month-to-month while also maintaining enough funds to pay for tuition, food, and other living expenses? Figuring out a personal housing budget is a wholly unique process for each student.

Budgeting Considerations for College Students

Students should sit down and map out all monthly expenses either alone or with a loved one to figure out just how much they can afford and go from there. While developing your budget, consider things such as:

•   Transportation costs to get to and from campus

•   Utilities and internet

•   Whether the apartment will be furnished or will require you to bring (or buy) furniture

•   How you’ll split these costs with roommates

•   Grocery costs vs. relying on the college dining plan

Some considerations and costs may vary depending on whether you choose to live on- or off-campus. If you are still debating between on- or off-campus housing, it may help to map out two budgets to capture the difference in cost and expenses between the two options. SoFi’s Ca$h Course: A Student’s Guide to Money has more information on setting up your college budget.

Paying for Housing Expenses

In addition to costs, evaluate sources of income so you have an idea of how you will pay for your tuition and housing expenses. Have an honest discussion with your parents or guardians about how much they are able to contribute toward housing and tuition expenses.

In addition to savings, undergraduate loans can be used to pay for housing expenses. Students may apply for both federal or private student loans. Federal student loans have certain benefits like deferment options and income-driven repayment options that aren’t necessarily afforded to private student loans. Therefore, federal student loans are typically prioritized over private student loan options. Learn more about the differences between private and federal student loans in SoFi’s private student loan guide.

Students who qualify for a need-based Pell Grant can also use these funds toward their housing expenses. Some scholarships may have restrictions on how the funding can be used, but others will be flexible and can be used for any qualifying education expense including housing costs. When doing your scholarship search, be sure to read the fine print so you understand if there are any restrictions up front.

Recommended: Guide to Unclaimed Scholarships

2. Decide on On-Campus or Off-Campus Housing

After outlining your budget it’s time to answer another big question: On-campus housing or off? This is a major consideration for many students and can be budget-dependent.

It can also be dependent on what year the student is as many colleges require students to live on campus during their freshman year. But, after that, it’s likely up to students.

Each choice has its merits and its pitfalls so weigh the pros and cons of on-campus vs. off-campus housing before deciding.

Recommended: Budgeting Tips for High School Students and Those Entering College

On-campus Housing

For those who want to live on-campus, there are likely a number of options available at their school. This can include residence or dorm halls. Think of these as apartment buildings, but smaller. Some dorms require students to share rooms with other students, and often only come with one bathroom per floor (though there are a lucky few who may be able to snag a private bath).

Dorms often do not come with private kitchens, though they may have a shared space. This often means students will likely also purchase a meal plan, so factor that in when budgeting.

Beyond dorms, students may also be able to live in on-campus apartments or in fraternity or sorority housing. These homes are typically maintained by private Greek organizations and admittance to the frat or sorority is usually required in order to live in the house. Room styles in Greek housing can vary greatly, along with availability, even as a member.

Note that some fraternity or sorority housing options are considered off-campus housing so you may need to check the housing program at your university.

Older students may also want to look into graduate housing, family housing, or co-op living on their university or college campus.

Off-Campus Housing

Off-campus housing may vary depending on where you go to school. The first option may be to just remain living at home with parents or guardians. Though this may not be the college dream for many, it can be one way to cut expenses in both housing and food.

If a student chooses to remain home he or she should sit down with their parents or guardians prior to the start of the school year to go over expectations on both sides. Have the tough conversations about curfews, chores, and anything else one would typically discuss with any other roommate.

Of course, college students may also look for off-campus housing by renting a nearby apartment or home either alone or with friends. Renting alone could be an option for those who like their space and quiet time for studying, but, this could also become prohibitively expensive as that person would also have to pay all the bills on their own.

By renting with friends a college student may gain a bit more independence while still being able to rely on others to split the cost of rent and other bills.

Note that student loans can be used to pay for both on- and off-campus living expenses.

Recommended: Using Student Loans for Living Expenses and Housing

3. Figure Out the Right Timeline

No matter which option a student chooses — on-campus or off — they must also follow the right timeline. Many colleges and universities have deadlines to declare the need for on-campus housing, while many college town rentals also follow a specific timeline for rentals.

Areas surrounding college campuses may be competitive for rentals. Some schools offer off-campus guides to get students started with their search. It may also help to do a bit of digging on your college community and ask friends who have moved off-campus in the past to see what the timeline is there.

4. Where to Look for Housing

For off-campus students, there are a plethora of options for looking for housing online. This includes websites like Zillow, Trulia, Apartments.com, Craigslist, and more. Each of these websites allows users to filter their searches by location, price, number of bedrooms and bathrooms, or any other specific needs.

A student and their potential roommates may want to sit down together to list out their wants vs. needs in housing (for example, a big kitchen, study area, outdoor space, or pet-friendly) and begin their search from there.

5. Tour Housing Options

Prior to committing to housing, take a bit of time and tour the homes in person. This can help you get a feel for a place, open up the cabinets, test the water pressure, see if the street noise is too much, or anything else that may bother someone. On the tour, a student may find items not to their liking or may find things that will allow them to negotiate the rent down. Go in and take plenty of notes.

6. Look at the Fine Print

Don’t sign a lease (or anything for that matter) without reading the fine print. Before putting a name on the dotted line make sure to read each and every section in a lease and ask questions of the landlord.

Also, it’s important to note it’s not a one-way street — you too can add things to the lease. However, a landlord will have to agree before making any changes. But, if there’s something you want in there for your own legal protection, it doesn’t hurt to ask for it.

7. Consider Renter’s Insurance

Students living off-campus may want to consider renters insurance. Those living in a dorm may be covered by their parents’ home or renter insurance policy if you are listed as a dependent. Renters insurance may protect a person’s things if they are lost, damaged, or stolen from the home.

For example, if a pipe bursts while a student is in class and their home is flooded, renters insurance could cover the cost of replacing their damaged items. And, renters insurance could even cover temporary living expenses if their home becomes unlivable.

The Takeaway

No matter where a student lives, things can most certainly get expensive. But, rather than stress about how they’ll pay for their newfound freedom, students should plan instead. And that begins by looking into all their financial options, including a SoFi private student loan.

Students, along with their parents or guardians, can apply for a private student loan with SoFi in minutes and get on their way to finding the perfect housing option for them. SoFi student loans have no origination fees, no late fees, and no insufficient fund fees.

Note that private student loans aren’t appropriate for every student, and are generally relied on after a student has explored other options including federal student aid and scholarships. Upon graduation, students can choose one of SoFi’s repayment options, paying back the loan on a timeline that works for them.

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

Terms and conditions apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. SoFi Private Student loans are subject to program terms and restrictions, such as completion of a loan application and self-certification form, verification of application information, the student's at least half-time enrollment in a degree program at a SoFi-participating school, and, if applicable, a co-signer. In addition, borrowers must be U.S. citizens or other eligible status, be residing in the U.S., Puerto Rico, U.S. Virgin Islands, or American Samoa, and must meet SoFi’s underwriting requirements, including verification of sufficient income to support your ability to repay. Minimum loan amount is $1,000. See SoFi.com/eligibility for more information. Lowest rates reserved for the most creditworthy borrowers. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change. This information is current as of 4/22/2025 and is subject to change. SoFi Private Student loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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More than half to two-thirds of people who attend college take on debt — most often in the tens of thousands of dollars. According to the Federal Reserve, in 2021 the median amount of outstanding education debt was between $20,000 to $24,999 .

Federal student loans are one option for students looking to borrow to help pay for their education. In the case that federal loans aren’t enough, private student loans could be considered. Finding a reputable lender is essential when entering a long financial relationship.

Student loans are often the first major debt a young adult signs their name to, so evaluating potential lenders is a good first step when considering a private student loan.

There are some general considerations to keep in mind when evaluating private student loan lenders. Keep in mind these are general considerations when deciding between private student loan providers and not an exhaustive list.

Each potential borrower will need to consider her or his own financial situation to help make an informed decision.

1. First Things First: Reputation Before Rate

Before even considering the interest rates, savvy students look for indicators that a loan company is legitimate. Bottom-of-the-barrel interest rates might seem attractive, but if the bargain comes at the price of doing business with a dubious company, potential borrowers may want to steer clear.

Several options are available for researching a lender’s reputation. The Better Business Bureau or the local chamber of commerce are good first places to check.

Look up the name of the lender and the parent company, if there is one, to find any reviews that might be available. If nothing is found on these channels, a general search online often yields news stories or first-hand accounts pulled from multiple sources that can help paint a picture of how the lender treats customers.

Other ways to verify reputation and legitimacy are by checking any accreditations, endorsements by other credible entities, and backing by established institutions.

It’s also worth talking to recent grads and trusted colleagues. What lender do they use? What has their experience been? While anecdotal advice adds color, though, it shouldn’t be the bulk of research.

2. What Rates Are Offered?

Another factor to consider is a lender’s interest rate. The higher the interest rate, the more money the borrower will pay on top of the loan amount — it’s how the lender makes money. For example, private student loans can be fixed vs. variable and have a wide range of interest rates.

Variable Rate

A loan with a variable interest rate — also known as a floating rate — changes interest rates over time. When and how the interest rate changes depend on the terms of the loan and will vary from lender to lender. Typically, the rate is tied to a specific index and will impact monthly loan payment amounts. A rate cap is generally outlined in the terms of your loan. This is the highest the interest rate may rise.

Fixed Rate

A fixed-interest-rate loan carries an interest percentage that does not change over the life of the loan. The interest rate at the start of the loan stays the same until the loan is repaid.

Choosing Between Variable or Fixed Interest

Variable rate loans may seem attractive because the initial rates are often lower than fixed-rate loans. However, since rates will fluctuate, variable rate loans can be more costly in the long run, especially if a borrower has the loan for a lengthy period of time.

Borrowers who wish to lock in one rate and the same monthly payment each month are generally better served with fixed-rate loans. Because the interest rate doesn’t change, monthly payments will stay the same, which can help with budget planning and financial management.

3. What Are the Loan Terms?

The term refers to the length of time a borrower has to repay the loan. In general, the longer the loan term, the more interest a borrower will pay.

Shorter term lengths usually have higher monthly payments than longer term loans, as the loan has to be repaid at an accelerated schedule. Some lenders may offer flexible repayment options. Other lenders may have fixed term lengths and monthly payments.

When deciding between lenders, verifying available term lengths and options can help borrowers select a lender that offers terms that fit their budget and repayment timeline.

4. In-School Repayment Options

Will you be required to make payments on the loan while you are actively enrolled in school? Be sure to find out what the lender’s policies are. Some private lenders will allow borrowers to defer their payments while they are enrolled in school. Using in-school deferment can be helpful if you are tight on money as a college student. But, during this time interest will likely continue to accrue on the loan, which may increase the cost of borrowing over the life of the loan.

Other in-school payment options include making interest-only payments or making flat-fee payments each month. Understanding whether or not you’ll be required to make payments while you are in school is important as it can have an impact on how you manage your money as a student. Review the options offered by your chosen lender closely. For more information on college budgeting ideas and more, check out SoFi’s Ca$h Course: A Student’s Guide to Money.

5. Have You Exhausted Your Federal Loan Options?

A quick check before applying for private student loans: Did you take advantage of any available federal student loans? They offer several benefits not found with private student loans. Here’s a brief overview of some of the benefits and protections offered for federal student loans, but not private student loans:

•   Interest Rates. Federal student loans generally have a lower interest rate than private student loans. Interest rates on federal student loans are fixed and are set annually by Congress.

•   Repayment Plans. Federal student loan borrowers have a few different repayment options to choose from, including income-driven repayment plans that can help make loan payments more manageable.

•   Loan Forgiveness. Borrowers who work in public service or other qualified professions may qualify for loan forgiveness through programs like Public Service Loan forgiveness or Teacher Loan Forgiveness.

•   Loan Deferment and Forbearance Options. Loan deferment and forbearance options may be available as a temporary relief if a borrower is having trouble making payments.

•   Subsidized Loans. Undergraduate students who exhibit financial need may qualify for Direct Subsidized Loans. The government covers interest charges on this type of loan while the borrower is enrolled in school, during the loan’s grace period and during other qualified periods of deferment.

For these reasons, borrowers are encouraged to consider federal student loan options before opting for a private student loan. But, as mentioned, there are borrowing limits associated with federal student loans. And in some situations, private student loans can be a helpful tool to help borrowers pay for their college education.

6. What Fees Are Associated with the Loan?

No one likes additional fees, especially when they’re associated with a loan. Unfortunately, lender fees are not uncommon. Reading the fine print and speaking with loan representatives to understand the fees each lender charges is an important part of the search process.

Charges may include application fees, late fees, insufficient fund fees, and origination fees. Understanding which lenders charge fees can help if you are interested in avoiding student loan fees. When comparing loans from different lenders, be sure to review the APR, or annual percentage rate, associated with the loan. The APR is a reflection of the interest rate and any additional fees, so it is more representative of the total cost of the loan than comparing interest rates alone.

7. What Happens if Your Financial Situation Changes?

Unpredictable circumstances happen all the time. In recent years, recessions, pandemics, and natural disasters count among the various catastrophes impacting people all over the world. Circumstances like these — along with many others — can put a dent in your finances.

For borrowers, a change such as a job loss might mean the difference between paying their student loan bill for the month — or not. Because financial circumstances are prone to change, a borrower may want to compare private student loan lenders.

How flexible are the lenders with monthly payments? Do steep late fees pile on if a borrower can’t make a monthly payment? What happens if a borrower needs to refinance or decrease monthly payments? These are all questions to consider and discuss with potential lenders.

Lenders that lack flexibility can mean the difference between thousands of extra dollars of debt if unforeseen circumstances change your finances and you’re unable to make your payments.

8. Does the Lender Offer any Incentives or Perks?

Once the serious stuff is considered, such as reputation, interest rates, term, and fees, there’s room to evaluate lenders on what else they can offer. Some lenders, like SoFi, offer career services and rate discounts.

Others may offer bundled banking so borrowers can have all financial services in one place. There also may be referral fees a borrower can earn for recommending the lender to others.

While the perk factor probably shouldn’t carry the heaviest weight in your comparison, it still might be worthwhile to evaluate.

9. Customer Service Quality

Finally, consider the company’s customer service quality and reputation. Should you run into any issues during repayment, a company with excellent customer service can make a difference.

The Consumer Financial Protection Bureau operates an online complaint database. Here, you’re able to read any online complaints associated with a particular company in order to make a more educated decision concerning their customer service reputation.

The Takeaway

Once you complete your research and comparison shopping, you may be ready to apply for a loan to pay for your education. With SoFi private student loans, undergrads and grad students can apply for a no-fee loan. That includes no application fee, no origination fees, no insufficient fund fees, or late fees.

For further savings, SoFi also offers an interest rate deduction if you enroll in automated payments from your checking or savings account.

FAQ

What are typical private student loan interest rates?

As of August 2022, interest rates on private student loans may range from 3.22% to 13.95% fixed and 0.94% to 12.99% variable. Keep in mind that interest rates can vary from lender to lender and are based on the individual applicant’s financial history, income, and credit score, among other factors.

Can you start repaying student loans while still enrolled in school?

Yes, you can start repaying student loans while you are enrolled in school. For most federal student loans, students enrolled in school at least half-time are not required to make payments on their loan but have the option to do so.

For private student loans, the policy will depend on the loan terms and conditions. Some private lenders offer in-school deferment options while others may require in-school loan payments.

Do student loans have prepayment penalties?

Do student loans have prepayment penalties?

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

Terms and conditions apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. SoFi Private Student loans are subject to program terms and restrictions, such as completion of a loan application and self-certification form, verification of application information, the student's at least half-time enrollment in a degree program at a SoFi-participating school, and, if applicable, a co-signer. In addition, borrowers must be U.S. citizens or other eligible status, be residing in the U.S., Puerto Rico, U.S. Virgin Islands, or American Samoa, and must meet SoFi’s underwriting requirements, including verification of sufficient income to support your ability to repay. Minimum loan amount is $1,000. See SoFi.com/eligibility for more information. Lowest rates reserved for the most creditworthy borrowers. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change. This information is current as of 4/22/2025 and is subject to change. SoFi Private Student loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

SOPS0222016

Wondering what to do about your undergraduate school loans before starting graduate school? There are several options to consider, including deferment and refinancing college student loans.

Some grad students defer loan repayment while enrolled in school or refinance college student loans before starting a graduate program. As with your undergraduate student loans, the right choice for you will depend on a range of factors, such as whether you have federal or private student loans as well as how you plan to pay for grad school. Here’s an overview of the pros and cons of graduate school loan refinancing.

Grad School Student Loans

Before considering whether you should refinance your college student loans, it may be helpful to consider how you’ll be paying for graduate school. The average cost of public, in-state tuition for graduate school was $12,410 for the academic year 2019-2020, according to the National Center for Education Statistics. For a private institution, that number more than doubles to $26,597. In fact, graduate student loans account for 40 percent of federal student loans, according to The Center for American Progress.

You may be eligible for various types of student financial aid, including federal loans and private student loans. You’ll likely want to start by pursuing options such as grants (federal or private) that don’t need to be repaid, work-study programs, and federal loans.

Federal loans offer some benefits and protections, such as fixed interest rates, income-driven repayment plans, and access to forgiveness programs. As a grad student, you can apply for a Direct Unsubsidized Loan and Direct Grad PLUS Loan. (Direct Subsidized Loans are only an option for undergrads.) If federal options don’t cover what you’ll need to pay for grad school, private loans may be an option. Here are the most common grad school student loans.

Recommended: How Do Student Loans Work?

Direct Unsubsidized Loans

With federal Direct Unsubsidized Loans, students enrolled at least part-time can access financing at a fixed interest rate. Unlike Direct Subsidized Loans, the government doesn’t pay for accrued interest while you’re in school, during the loan’s grace period, or if a loan is in deferment. This means you’re responsible for repaying all interest charges that incur.

Although you can choose not to pay interest while you’re in school and during periods of deferment, the accumulated interest will capitalize. Capitalized interest means the unpaid interest charges are added to your principal balance, so that when you start making student loan payments, you’ll pay interest on a larger balance.

Your school will determine how much in Direct Unsubsidized Loans you can borrow each academic year, up to the maximum of $20,500. (Students enrolled in certain health profession programs may be eligible for additional loan amounts.) Any existing undergraduate federal loans you have will count toward the $138,500 aggregate federal loan limit for grad students and may affect the amount you’re able to borrow.

Direct Grad PLUS Loans

Graduate and professional students enrolled at least half-time can also look into federal fixed-rate Direct Grad PLUS Loans if they need more funding. Direct PLUS Loans are the only federal loan program that require a credit check.

Like Direct Unsubsidized Loans, you’re fully responsible for all interest charges that accrue. You also have the option to let interest charges capitalize on the account if you choose not to make interest payments while you’re in school or during deferment.

The maximum you can borrow through a Direct Grad PLUS Loan is the cost of attendance minus any existing financial aid you’ve received.

Private Student Loans

Private student loans offer non-federal funding from a private institution, like a bank, online lender, college, or credit union.

Private student loans can come with fixed or variable interest rates, and eligibility criteria and terms differ between lenders. Graduate students who’ve built a positive credit history might qualify for more competitive rates. Students with adverse credit — or those applying to grad school who haven’t graduated college yet — might require the help of a cosigner to qualify.

If you’re considering a private student loan, always compare multiple offers from different lenders to find the lowest rate for you.

Do You Have to Pay Undergraduate Loans While in Graduate School?

If you have federal student loans and you’re enrolled at least half-time at an eligible school, you can opt to defer payment on your loans while you’re in graduate school.

In-school deferment for a federal loan is typically automatic after your school reports your enrollment status. Expect to receive a notice from your loan servicer that your loans are in deferment. If your loans aren’t automatically placed on deferment, ask your school to report your enrollment status.

Keep in mind that if you defer federal loan payments while you’re in school, interest on deferred Direct Unsubsidized Loans from your undergrad years will continue to accrue and capitalize. You also won’t make any progress toward loan forgiveness, if you plan on participating in programs like Public Service Loan Forgiveness.

Choosing when to pay back student loans and whether to take advantage of federal loan deferment is a personal decision that depends on your individual financial situation.

If you borrowed private student loans while pursuing your undergraduate degree, you’ll need to contact your lenders about your options. Not all private lenders offer in-school deferment and eligibility may vary.

Recommended: Examining How Student Loan Deferment Works

Should I Refinance Before Grad School?

If you only have federal Direct Subsidized Loans, you don’t need to make payments while in school and, since interest doesn’t accrue, it won’t make sense to refinance. If you have Direct Unsubsidized or private student loans, however, refinancing college student loans might help lower your monthly obligation by extending your loan term or lowering your interest rate.

Keep in mind if you refinance a federal loan with a private lender, you’ll lose access to federal protections and benefits. And extending your term may mean that when you start making payments, you may pay more interest over the life of the loan and will be in debt longer. To find the choice that’s right for you, it’s helpful to look at the pros and cons of graduate school loan refinancing.

Refinancing College Student Loans, Explained

A student loan refinance lets you put one or multiple student loans, federal and/or private, into a new loan — ideally, with a lower interest rate. This loan is provided by a private lender, and it will pay off your original student loans in full. In turn, you’ll repay the lender under the new refinance loan which can be at a fixed or variable rate, as well as a different repayment term. As mentioned earlier, if you refinance a federal loan with a private lender, it will no longer be eligible for federal benefits and protections.

If your goal is to reduce the monthly loan payments for private and/or unsubsidized loans while you’re in grad school, for example, you might consider extending your term to make smaller payments over time.

Pros of Refinancing Before Grad School

Refinancing is a repayment strategy that offers some advantages.

Lets You Change Your Loan Term

When you refinance, you can change the specific repayment terms of your original undergraduate loan — electing, for example, a 10-year term instead of a five-year one (again, this may result in your paying more interest over the life of the loan.)

Allows for a Reallocation of Your Monthly Budget

A longer term reduces your monthly payment amount. As a grad student, freeing up money upfront can help pay for graduate school expenses, like textbooks, lab equipment, and fees.

Simplifies Repayment for Two or More Undergraduate Loans

Student loan refinancing helps simplify your repayment experience. Instead of managing payment amounts and due dates for multiple undergraduate loans, a student loan refinance results in one monthly payment and one due date to remember.

Cons of Refinancing Before Grad School

Although there are advantages to refinancing college student loans, there are downsides, too.

You may pay More Interest Over Time

Again, an extended repayment term may result in paying more interest over time, and paying more toward your education loan overall. It also prolongs the amount of time you’ll be in debt.

You’ll Lose Access to Federal Loan Forgiveness

Refinanced federal student loans won’t be eligible for forgiveness or other current or future federal loan benefits. This applies to all refinanced student loans, regardless of whether they originated as a federal loan.

Recommended: Can Refinanced Student Loans Still Be Forgiven?

Some Refinance Lenders Don’t Offer Academic Deferment

If you originally had federal loans from your undergrad, you’ll no longer receive automatic in-school deferment after refinancing. Although some lenders, like SoFi, offer eligible members in-school deferment, not all lenders do. This means you might be required to continue refinance payments while you’re studying for your grad program.

Refinancing Student Loans With SoFi

If you’ve decided to refinance your student loans, comparing a few different lenders can help you find the right fit for your needs. SoFi’s student loan refinancing offers flexible terms, no fees, no prepayment penalties — and you can view your rate in 2 minutes.

FAQ

Can you refinance student loans before graduation?

Yes, you can technically apply for a student loan refinance at any time. But proceed with caution when refinancing federal loans. Doing so removes you from the federal loan system and you’ll lose access to income-driven repayment plans, loan forgiveness, and other federal loan benefits and protections. Also, for Direct Unsubsidized loans, there is a six-month grace period after graduation, when payments aren’t due yet.

If I go to grad school, can I defer my loans?

Yes, you can defer federal student loans as long as you’re enrolled at least half-time in grad school. However, if your federal student loans aren’t Direct Subsidized, the interest may still accrue.

Do undergraduate loans affect grad school student loans?

Yes, for federal loans, undergraduate loans count toward the $138,500 aggregated loan limit that graduate students are allowed to borrow. Your available federal loan funds toward grad school might be limited, based on how much you borrowed as an undergraduate student.

SoFi Student Loan Refinance
Terms and conditions apply. SoFi Refinance Student Loans are private loans. When you refinance federal loans with a SoFi loan, YOU FORFEIT YOUR ELIGIBILITY FOR ALL FEDERAL LOAN BENEFITS, including all flexible federal repayment and forgiveness options that are or may become available to federal student loan borrowers including, but not limited to: Public Service Loan Forgiveness (PSLF), Income-Based Repayment, Income-Contingent Repayment, extended repayment plans, PAYE or SAVE. Lowest rates reserved for the most creditworthy borrowers. Learn more at SoFi.com/eligibility. SoFi Refinance Student Loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.