Let’s compare the best student loan refinancing and consolidation companies. Many people are paying for much more than they need to on their student loans.
In this SoFi vs Earnest comparison article, we will help you to lower your monthly loan rates by thoroughly examining two popular names to help you to get out of debt quicker.
What is SoFi?
Social Finance, Inc. is a well-known personal finance company that offers a plethora of different options for borrowers. SoFi was founded in 2011 by Mike Cagney, Dan Macklin, James Finnigan, and Ian Brady. The goal of SoFi is to provide an easier option for you to reduce your student loans.
What is Earnest?
Earnest is a fintech lender that offers student loan refinancing and personal loans. Earnest was founded two years after SoFi. In 2013, Earnest was founded by Louis Beryl and Benjamin Hutchinson. The company officially launched their site on March 2014. The goal of Earnest is to reduce the costs that financially responsible people may face.
Reputation comparison
Both platforms have great reviews in TrustPilot, BBB, Reddit, and more.
BBB
Better Business Bureau is an important factor when comparing companies because it allows you to know if the company can be trusted or not. BBB will allow you to know how well each company handles the complaints of their customers. A few factors that BBB takes into consideration include: the complaint history of your business, transparent business practices, failure to honor commitments to BBB, and more.
Both online lenders performed well in the BBB rating system. Both Earnest and SoFi have an “A+” rating in the BBB rating overview.
TrustPilot
TrustPilot is another great source to help us with knowing the trustworthiness of a company.
With over 1900+ reviews, SoFi.com received a TrustScore of 9.2 out of 10. This is an excellent trust score. Earnest.com received a TrustScore of 8.4 out of 10. Both companies received exceptional ratings from TrustPilot, but it is clear that SoFi beats out Earnest in the reputation comparison.
Student loan refinancing rates compare
All prices shown are assuming you set up autopay, which gives you a discount of 0.25%.
SoFi rates
SoFi has 5 terms for you to choose from ranging from 5 years to 20 years. The shorter your term the more you will be able to save. SoFi offers fixed rates for as low as 3.899% and as high as 7.804%. They also offer variable rates for as low as 2.480% and as high as 7.804%
Fixed rate loans
Variable rate loans
Fixed rate vs variable rate student loan
Variable is all about the market and how it’s doing at the moment. The good thing about variable rates is that you may be able to get a low rate. The bad about variable is that your rates can change if the market changes. You may have a low rate, but since rates may fluctuate you may end up with high rates.
Fixed rates are more predictable. With fixed rates you will not have to worry about your interest rates changing. A fixed rate is the safer option for borrowers. However, you might be able to save more with variable rate loans if you are willing to take on the potential risk of a market change.
Earnest rates
Earnest has loan terms ranging from 5 to 20 years. Earnest is slightly more expensive than SoFi.
- Variable rates range from 2.57% – 5.87%.
- Fixed rates range from 3.89% – 6.32%.
Fees comparison
With SoFi and Earnest you will not have to worry about application or origination fees, nor will you have to worry about prepayment penalties. One of the benefits of choosing an online lender is that they will process all of your information online.
Online lenders are adapting to what millennials desire, which as a quick and easy loan process. By being online lenders both companies cut the cost and by cutting the costs, customers are able to benefit.
The loan application process
Earnest offers a quick and easy refinancing experience that will help you to save time and money. The first step in the application process is to add basic information such as your name. Then you will add your education history. You will then add your financial information and residential information. After following these four steps you will be able to get your rates.
The SoFi student loan refinancing process is simple and easy. With SoFi you will be able to get rates in 4 steps. Uploading documents and talking to experts via live chat while you are completing the loan process can easily be done.
Features comparison of both companies.
SoFi features and benefits
- 0.125% rate discount – By bundling loans you will be able to receive a 0.125% discount with SoFi. This means more savings on mortgages, mortgage refinancing, personal loans, and student loan refinancing.
- Consolidation of federal and private loans.
- Complimentary guidance from licensed financial advisors.
- Unemployment Protection
- Entrepreneur Program
- Community events
- SoFi Money
- Soft credit pull
- Student loan calculator
Earnest features and benefits
- You will be able to consolidate your private and federal loans
- Optional bi-weekly payments
- You will be able to skip one payment every 12 months after you have made 6 consecutive payments on time.
- Precision Pricing
- Soft credit pull
- Unique application process
- Refi student loan calculator
- Comprehensive underwriting process
How much can you borrow?
With both companies there is a $5000 loan minimum.
Earnest loan amounts range from $5000 to $75,000.
SoFi loan amounts range from $5000 to $100,000.
Estimated funding time comparison
Waiting for a loan can seem never-ending. However, both companies offer fast funding times
On average Earnest funds their loans within a week to two weeks after you are approved.
On average SoFi funds their loans in under 7 days after you are approved.
Minimum credit score for both companies
- Applicants must have with at least a 650 credit score.
Availability
Whether you live in Florida, Texas, North Carolina, Ohio, New York, Georgia, Illinois, Washington, etc. you will be glad to know that both San Francisco, California based lenders offer loans in all 50 states.
Mobile app comparison
Earnest has an awesome mobile app. This app is only available for iPhone at the moment, but the company is working on creating an app for Androids. With the app you can control when you pay, adjust your payments, and more.
SoFi’s mobile app is available for both iPhone and Android phones. The app allows you to connect with other SoFi members, use fingerprint scanning, apply for SoFi loans, and more.
Customer support comparison
SoFi
Customer phone support
Monday – Thursday 4:00 AM – 9:00 PM PT
Friday – Sunday 4:00 AM – 5:00 PM PT
SoFi gives their customers frequently asked questions and a large resource center for help with debt management, home buying, investing, and more.
Earnest
Customer phone support
Phone hours are Monday – Friday, 8am-5pm Pacific Time.
Earnest has a help center with general questions, applying for a loan help, repaying a loan, and more.
Which company is better?
Both lenders have similarities and unique perks about them. With either company you will have no problem getting decent APR rate. However, I believe SoFi is the clear winner in this review. Is SoFi worth it? Yes, SoFi is cheaper, has a shorter funding time, and it has better ratings across the boards.