Feb
16
2018

AAHA has partnered with SoFi to give members the opportunity to save on student loan refinancing. AAHA members and their families are eligible for a $300 welcome bonus1 when they apply to refinance their student or Parent PLUS Loans through SoFi.

What exactly is a Parent PLUS Loan and how does it differ from a Parent Loan? Learn the key differences here.

What is the Federal Parent PLUS Loan?

  • A government program that allows parents to borrow on behalf of dependent undergraduate students up to the cost of attendance, minus other financial aid received.
  • The US Department of Education is the lender.
  • Term is 10 years and the interest rate is tied to the 10-year US treasury notes. Current rate is 6.84% with a 4.292%2 origination fee. Everyone gets the same rate regardless of credit history.
  • A parent can refinance Parent PLUS Loans while his /her child is in school.
  • Once a child graduates from school, the child may refinance his/her parent’s original Parent PLUS Loan into his/her own name, but not if the loan has already been refinanced.
  • Detailed, up-to-date information is available at studentaid.ed.gov.

What is the SoFi Parent Loan?

  • A private loan option for parents to borrow on behalf of dependent undergraduate or graduate students up to the cost of attendance, minus other financial aid received.
  • SoFi Lending Corp. is the lender.
  • Term is 5 or 10 years and the interest rate is tied to the monthly LIBOR. Current rates range from 4.020% APR to 7.445% APR (with AutoPay)* variable rates with 0% origination fee. Rates depend on creditworthiness and other factors.
  • Detailed, up-to-date information is available at sofi.com.

Depending on your circumstances, the Federal Parent PLUS Loan may be the best option. If you take out a Parent PLUS Loan with the US Department of Education, you can apply to refinance your loan with SoFi and receive the welcome bonus.1 However, originating a SoFi Parent Loan to fund your child’s education while in college may provide a lower monthly payment, higher lifetime savings, or possibly both. We recommend consulting the FinAid calculator to understand your repayment circumstances under various scenarios.

Questions? SoFi is here to help by phone, email, chat, and social, seven days a week. Contact SoFi at 855-456-7634 or ask@sofi.com.

*Terms and Conditions Apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. Current as of January 1, 2018 and subject to change without notice. To qualify, a borrower must reside in an eligible state and meet SoFi's underwriting requirements. SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers such as Income Based Repayment or Income Contingent Repayment or PAYE. Fixed rates from 4.25% APR to 8.00% APR (with Autopay). Variable rates starting from 4.020% APR to 7.445% APR (with AutoPay), capped at 9.95% APR. Not all borrowers receive the lowest rate. To qualify for the lowest rate, you must have a responsible financial history and meet other conditions. If approved, your actual rate will be within the range of rates listed above and will depend on a variety of factors, including term of loan, a responsible financial history, years of experience, income and other factors. Rates and Terms are subject to change at anytime without notice and are subject to state restrictions. For the SoFi variable rate product, the 1-month LIBOR index will adjust monthly and the loan payment will be re-amortized and changed monthly. APRs for variable rate loans may increase after origination if the LIBOR 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. SoFi loans not offered to residents of Nevada. Other state restrictions may apply. See eligibility requirements at sofi.com/legal. Licensed by the Department of Business Oversight under the California Financing Law License No. 6054612. SoFi loans are originated by SoFi Lending Corp., NMLS # 1121636.

1See sofi.com/legal/#welcome-bonus

2See studentaid.ed.gov/sa/types/loans/plus#interest

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