Earnest vs SoFi: Who’s Better for Student Loan Refinancing?

Refinancing your student loans is a great way to lower the interest rate or monthly payment of your current loan. If you’re debating between Earnest vs SoFi, here’s what you should know about both lenders before picking one to move forward with.

Earnest offers student loan refinancing with customizable repayment plans, letting you choose your repayment term down to the month. It also has forward-looking eligibility requirements and offers competitive interest rates. Earnest is best if you don’t have a cosigner and want a repayment plan customized to your situation. 

SoFi is one of the biggest student loan refinancing companies in the industry. You have to have an associate’s degree or higher to qualify, but if you do qualify, you’ll have access to a wide variety of repayment options and exclusive member benefits. SoFi best if you have at least an associate’s degree, are a creditworthy borrower, and want to take advantage of their borrower benefits.

>> MORE: Compare your personalized refinance rates

Earnest vs. SoFi: An Overview

Understanding the difference between Earnest vs SoFi can be difficult. Here’s an overview of how Earnest and SoFi differ when it comes to student loan refinancing.

	Earnest	SoFi
Fixed APR Rate	4.96% to 9.79%	4.99% to 9.99%
Variable APR Rate	5.49 % to 9.74%	5.38% to 9.99%
Loan Terms	5-20 years	5, 7, 10, 15, or 20 years
Loan Amounts	$5,000 ($10,000 minimum for California residents) – $500,000	$5,000 to your outstanding balance
Minimum Credit Score	650	650
Minimum Income	No minimum income requirement. Applicants must have a consistent income or have a job offer starting within the next 6 months.	No minimum income requirement. SoFi looks at your income after taxes and any payments.
Cosigner Release Options	No option for cosigner release, but refinancing removes the original cosigner.	No
Ability to Transfer a Parent Loan to A Student	No	Yes
Must Have Graduated	Must have graduated or be in your last academic semester with either a consistent income or job offer.	Must have graduated with an Associate’s degree or higher.
State Restrictions	Residents of Alabama, Delaware, Rhode Island, Kentucky, and Nevada cannot qualify for loan refinancing.	None

Earnest: The Pros and Cons

Earnest student loan refinancing is a great option for borrowers who have fair credit and are seeking strong borrower protections and flexible repayment terms. 

Pros	Cons
Individuals with fair credit can qualify for loan refinancing with Earnest. You do not need excellent or good credit to qualify.	You cannot refinance your student loans during medical or dental residency.
Earnest does not charge late fees if you miss a payment.	You cannot apply with a cosigner.
You can skip a loan payment once every six months.	You cannot transfer parent loans to your name.
Earnest lets you customize your loan term to fit your financial situation. You can choose a repayment period between 5-20 years.
You can choose your monthly payment with Earnest’s Precision Pricing program.

Apply with Earnest.

SoFi: The Pros and Cons

SoFi student loan refinancing can be more fitting for borrowers who prioritize varied eligibility requirements and additional borrowing perks.

Pros	Cons
SoFi allows you to transfer a parent loan to the student it was borrowed for.	SoFi charges $5 if your loan payment is 15 days overdue.
You can refinance your loans even during medical or dental residency.	Repayment terms are set at 5, 7, 10, 15, and 20 years, without any flexibility.
You can apply with a cosigner.	It can be difficult to qualify for loan refinancing with SoFi if you have a fair or poor credit score.
SoFi borrowers have access to community events and career coaching.
SoFi offers up to $10,000 in awards for referrals to SoFi’s other financial offerings.

Apply with SoFi.

Which is Better: Earnest vs. SoFi?

When looking at Earnest vs SoFi, there is no lender that is objectively “better.” Both Earnest and SoFi are reputable lenders and which one you choose should depend on your unique circumstances.

If you’re finishing your medical or dental residency, or want to transfer a parent loan to a student, you may find offers from SoFi more compelling. If you have a fair credit score, want borrower protections for loan delinquency, or want to select your repayment term, you may want to consider Earnest. 

Otherwise, SoFi and Earnest are generally similar in terms of loan terms, APR rates, minimum income, and loan amounts. 

To better explore your fit for student loan refinancing, use a student loan refinancing calculator to calculate what your optimal refinancing plan would be. Once you determine this, compare refinancing offers and their corresponding repayment plans from Earnest and Sofi by completing the Sparrow application. 

Closing Thoughts From the Nest

Rest assured that whether you refinance with Earnest or SoFi, you truly can’t go wrong with either company. However, remember to consider your financial status and how that fits with the offerings of both companies.

View Earnest and SoFi disclosures.

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