SoFi Technologies, Inc. (NASDAQ: SOFI) has introduced SmartStart, a new refinancing option designed to provide student loan borrowers with more flexibility during significant life changes. The program allows borrowers to make interest-only payments for the first nine months after refinancing, enabling them to reduce their monthly payment obligations during periods such as job searches or relocations.
A Gallup survey indicates that 71% of student loan borrowers have postponed at least one major life event because of their debt. With the SmartStart program, borrowers can refinance their loans and pay only the interest for the initial nine months. For example, someone refinancing $50,000 over a 10-year term could save more than $3,000 in monthly payments during this period before transitioning to principal and interest payments for the rest of the loan term.
The SmartStart option features fixed interest rates and terms of up to 20 years. SoFi aims to give members control over their monthly payment amounts and increased budget predictability.
“For the millions of people who borrow money to fund their education, paying down debt is a critical, but an often difficult step on the path to getting their money right,” said Anthony Noto, CEO of SoFi. “With SmartStart, members get lower payments in the early part of their loans as they make important life transitions. There are endless ways SoFi will innovate to help our members spend less than they make and invest the rest, and that’s exactly what we’re doing with SmartStart.”
SoFi reports that its members have saved thousands of dollars over the lifetime of their loans through competitive rates and flexible repayment options. Additional member benefits include financial planning tools and access to exclusive events.
As of December 2024, SoFi has helped more than 534,374 members refinance upwards of $45.8 billion in student loans. The company saw continued demand for its services through late 2024; student loan originations reached $1.3 billion in the fourth quarter—a 71% increase from the previous year.
Further details about SmartStart are available at https://www.sofi.com/smart-start/. Information about all student lending options offered by SoFi can be found at https://www.sofi.com/refinance-student-loan/.