5 Ways to Slash Your Parent PLUS Loan Payments by Refinancing with SoFi
If you’re one of the millions of parents who has taken out a Parent PLUS loan to help support your child’s dreams, we commend your sacrifice. Yet, managing these loans can be challenging, and the light at the end of the tunnel may seem out of sight. Fortunately, refinancing with SoFi offers a way to slash your monthly payments and help you pay off your loan faster.
Read on below for five ways to slash your Parent PLUS loan payments through refinancing with SoFi and get to life after debt faster.
You could save thousands and pay off your Parent PLUS loans sooner.
1. Low Interest Rates
Refinancing your Parent PLUS loans with SoFi could secure you a lower interest rate, reducing your total payments over the life of the loan. SoFi’s rates are competitive, with fixed APRs starting as low as 5.24% and variable rates starting at 6.07%.
2. Choose a More Flexible Repayment Term
Another perk of refinancing your student loan with SoFi is the ability to choose a more flexible repayment term that best fits your financial situation. SoFi offers a wide variety of term options, including 5, 7, 10, 15, and 20 years. Opting for a longer repayment term can lower your monthly payments, making them more manageable. While this might increase the total interest paid over time, the immediate relief on your monthly budget could be a game-changer. On the other hand, if you can afford higher monthly payments, choosing a shorter term can potentially help you save on interest in the long run.
3. Receive a Special Rate Discount with Autopay
Enrolling in automatic payments with SoFi can earn you a 0.25% discount on your interest rate. Not only does this ensure you never miss a payment but also helps you save on interest over the life of your loan, and reduce your overall loan costs.
4. Make Extra Payments to Reduce your Principal
SoFi allows you to make extra payments without any prepayment penalties, giving you the flexibility to reduce your debt on your terms. Whenever you have extra funds, consider making additional payments toward your loan principal. This can help you pay off your loan faster and reduce the overall interest you pay. Even small additional payments can make a big difference over time, helping you slash your student loan payments sooner.
6. Consolidate Multiple Loans & Start Fresh
Refinancing with SoFi allows you to easily consolidate Federal Parent PLUS and private qualified education loans into a single loan with one monthly payment. No fees, no catch. SoFi pays off your other loans and consolidates them into a brand new private loan. This can get you better loan terms, and potentially lower your overall payment amount.
Getting Started
It only takes two minutes to explore your options—with no effect to your credit score.
Click here to get started with SoFi and see how much you can save on our student loan payments.
Find your Parent PLUS Refi rate in just two minutes.
SoFi’s Disclosures: Terms and conditions apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS PROSPECTIVELY BASED ON MARKET CONDITIONS AND BORROWER ELIGIBILITY. Your existing student loan(s) must total a minimum of $5,000 to be eligible for refinancing. Additional terms and conditions may apply. To qualify, a borrower must be a U.S. citizen or other eligible status, be residing in the U.S., have graduated with an associate degree or higher from an eligible Title-IV-accredited college or graduate program, and meet SoFi’s pre-established underwriting requirements, including verification of sufficient income to support your ability to repay; see SoFi.com/eligibility. Lowest rates reserved for the most creditworthy borrowers. You may pay more interest over the life of the loan if you refinance with an extended term. SoFi refinance loans are private student loans and do not have the same repayment options that the federal loan program offers, or may become available, such as Public Service Loan Forgiveness, Income-Based Repayment, Income-Contingent Repayment, PAYE or SAVE. Information current as of 02/06/2024 and subject to change. SoFi Student Loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).
Fixed rates range from 3.54% APR to 15.99% APR with 0.25% autopay discount. Variable rates range from 5.54% APR to 15.99% APR with a 0.25% autopay discount. Unless required to be lower to comply with applicable law, Variable Interest rates are capped at 17.95%. SoFi rate ranges are current as of 11/20/24 and are subject to change at any time. Your actual rate will be within the range of rates listed above and will depend on the term and type of repayment option you select, evaluation of your creditworthiness, income, presence of a co-signer (if applicable) and a variety of other factors. Lowest rates reserved for the most creditworthy borrowers. Check out our eligibility criteria at https://www.sofi.com/eligibility-criteria/. For the SoFi variable-rate product, the variable interest rate for a given month is derived by adding a margin to the 30-day average SOFR index, published two business days preceding such calendar month, rounded up to the nearest one hundredth of one percent (0.01% or 0.0001). APRs for variable-rate loans may increase after origination if the SOFR index increases. The SoFi 0.25% autopay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. This benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. The benefit lowers your interest rate but does not change the amount of your monthly payment. This benefit is suspended during periods of deferment and forbearance. Autopay is not required to receive a loan from SoFi. SoFi Private Student loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).
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.