Amid Student Loan Debate, SoFi Launches New Program to Help Borrowers
As unreliability grows around how the central government plans to deal with student loan debt concerns, SoFi, the digital personal finance company, publicized the launch of a new loan project to help ease borrower anguish. Since March 2020, the central government has discontinued interest and monthly payments for federal student loan borrowers in response to the COVID-19 pandemic. Because the federal halt on this is set to end on September 30, borrowers are looking for clarity around how federal policy decisions will affect them and if they will qualify for future help, if any.
Mercifully, starting today, borrowers have the special chance to refinance, at historically low rates, some or all of their federal student loans without making monthly or interest payments until October 2021, through SoFi. The company’s new project provides federal borrowers with the chance to continue to take benefits of the government’s provisional pause on student loan repayments while also locking in a historically low-interest rate that will be ready for them once the federal embargo ends. Refinancing now helps reduce the probable risk of interest rates rising in the autumn.
Application details and information about this new loan initiative
New Program Details:
- Applicants can effectively pause their payments until October by signing their disclosures to disburse the loan within the fall, locking in today’s low rates for a primary payment scheduled in October at today’s low rates.
- Borrowers would apply for SoFi student loan refinancing using the same easy, digital application SoFi is well known for.
- Borrowers with federal loans can choose to delay paying out until the end of September to gain benefit from the federal payment pause.
- Before the loan is paid out in September, borrowers may cancel and continue with their federal program if they decide they no longer want to refinance.
- Applicants that have signed their disclosures would not have to take any additional action to have their loan paid out in late September.
- This new program is one of the many initiatives SoFi has launched during the COVID-19 crisis to help its members’ financial needs. From providing instant financial assistance and free college-planning and estate-planning tools to launching a healthcare industry hotline and other resources outlined individually to assist SoFi at Work Partners and employees, SoFi has been devoted to addressing members’ evolving needs all around the pandemic. The company also continues to take an active role in conversations with policy leaders and employer partners who share its devotion to helping people get their finances right.