Earnest vs. SoFi: Which Is Better for Refinancing Student Loans for 2025?

by Alex Hillsberg , MA

Student Finance & Loan Expert

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Student loan debt remains a significant issue, with outstanding debt holding steady at $1.6 trillion in the first quarter of 2025. For many graduates, finding a way to manage and reduce this debt is crucial.

In this detailed guide, we compare Earnest and SoFi, two prominent lenders, to help you determine which option might be better for refinancing your student loans. Using credible sources and hearing from loan experts' advice, we aim to provide you with the insights needed to make an informed decision.

Key Things You Should Know About Earnest vs. SoFi for Refinancing Student Loans for 2025

• 43 million Americans have federal student loans.
• The overall average student debt for each student earning a bachelor's degree is $30,500.
• Estimated savings from refinancing student loans is $6,761.05.
• 95% of educational debt comes from student loans.
• Private loans peaked at 34.6% in 2008, saw a significant decline to -7.9% in 2010, and reached -2.0% in 2023.

Table of Contents

1. What are Earnest and SoFi, and how do they work for refinancing student loans?
2. What are the eligibility requirements for refinancing student loans with Earnest and SoFi?
3. What are the current interest rates offered by Earnest and SoFi for 2025?
4. What loan terms are available from Earnest and SoFi?
5. What is the application process for refinancing student loans with Earnest and SoFi?
6. How do Earnest and SoFi address customer support and digital tools?
7. What are the tax implications of refinancing student loans?
8. What happens if you miss a payment with Earnest or SoFi?
9. What are the potential drawbacks of choosing Earnest or SoFi for refinancing?
10. How can you optimize your eligibility for refinancing student loans?
11. How does refinancing impact your long-term credit and financial planning?
12. How to decide between Earnest and SoFi for your specific needs?
13. Is Your Personal and Financial Data Secure with Earnest and SoFi?
14. Is refinancing student loans a strategic move during economic volatility?
15. Are there alternatives to Earnest and SoFi for refinancing student loans?
16. Are there hidden fees or additional costs with Earnest and SoFi?
17. Can refinancing student loans support your investment in professional growth?
18. Will Refinancing Affect Your Eligibility for Additional Education Funding?
19. Other Things You Should Know About Earnest vs SoFi

What are Earnest and SoFi, and how do they work for refinancing student loans?

Earnest and SoFi are private financial companies that offer student loan refinancing among other financial services. Here's a brief overview of each and how they work for refinancing student loans:

Earnest

Earnest is a financial technology company that provides student loan refinancing, personal loans, and other financial products. They focus on offering personalized lending solutions with flexible repayment options.

How It Works for Refinancing

• Application process. You start by filling out an online application, which includes providing information about your current student loans, employment, and financial situation.
• Credit check. Earnest conducts a soft credit check to provide you with preliminary rates. This does not affect your credit score.
• Rate offer. If you qualify, you'll receive a rate offer based on your creditworthiness and financial profile.
• Loan selection. You can choose from various repayment terms and interest rates. Earnest offers both fixed and variable rate loans.
• Approval and disbursement. Once you accept an offer, Earnest pays off your existing student loans, consolidating them into a single new loan with them.

SoFi

SoFi, short for Social Finance, is a personal finance company that offers a range of financial products, including student loan refinancing, personal loans, mortgages, and investment services. SoFi aims to provide competitive rates and various member benefits.

How It Works for Refinancing

• Application process. You apply online, providing details about your current student loans, financial status, and employment.
• Credit check. SoFi performs a soft credit inquiry to show you the rates and terms you may qualify for without impacting your credit score.
• Rate offer. If eligible, you receive rate offers tailored to your financial profile. SoFi offers both fixed and variable interest rate options.
• Loan selection. Choose the loan term and interest rate that fits your needs. SoFi provides various options for repayment periods and rates.
• Approval and disbursement. Once you accept the offer, SoFi pays off your existing student loans, consolidating them into a new loan with SoFi.

What are the eligibility requirements for refinancing student loans with Earnest and SoFi?

Earnest and SoFi offer competitive refinancing options but have distinct eligibility requirements that applicants must meet to qualify.

Eligibility Requirements for Refinancing Student Loans with Earnest

When it comes to Earnest vs SoFi, the first is known for its personalized approach to lending, providing borrowers with flexible repayment options. To be eligible for refinancing with Earnest, applicants must generally meet several criteria.

Firstly, a minimum credit score of 650 is required. This ensures that the borrower has a satisfactory credit history and will likely manage the loan responsibly. Additionally, Earnest looks for a steady income or a job offer starting within six months. This demonstrates the borrower’s ability to make consistent loan payments.

Earnest also considers the applicant’s debt-to-income ratio. A reasonable debt-to-income ratio indicates that the borrower can handle their debt load relative to their income. Employment is another crucial factor; applicants must be currently employed or have a job offer in hand.

Educational background plays a role as well. Applicants must have graduated from a Title IV accredited school, ensuring they have a recognized degree. The status of existing loans to afford average college tuition is also important—borrowers must be current on their existing student loans and not in default. Finally, applicants must be U.S. citizens or permanent residents to qualify.

Eligibility Requirements for Refinancing Student Loans with SoFi

SoFi provides a range of financial products, including student loan refinancing. To qualify for SoFi’s refinancing options, applicants must meet specific requirements that reflect their overall financial health and stability.

Similar to Earnest, SoFi requires a minimum credit score of 650. This baseline helps assess the borrower’s creditworthiness. Applicants must also have a steady income or sufficient cash flow. SoFi evaluates the borrower’s free cash flow and overall financial situation, including their ability to repay the loan.

Employment status is a significant factor for SoFi. Applicants must be employed, have sufficient income, or have a job offer to start within the next 90 days. This criterion ensures that the borrower has a reliable source of income.

Educational qualifications are also important for SoFi. Borrowers must have graduated from a Title IV accredited school, which validates their educational credentials. The current status of the loans is also considered—applicants’ loans must be in good standing and not in default. Lastly, eligibility is limited to U.S. citizens, permanent residents, or those with certain eligible visas.

Below is a chart demonstrating the annual growth of student loan debts among private lenders:

What are the current interest rates offered by Earnest and SoFi for 2025?

As of 2025, Earnest offers fixed interest rates on student loans ranging from 4.17% to 16.49% and variable rates from 5.62% to 16.85%, including an autopay discount. For refinancing, Earnest's fixed rates range from 4.99% to 9.99% and variable rates from 5.89% to 9.99%​.

On the other hand, SoFi's current student loan rates are slightly different, offering fixed rates starting at 4.23% and variable rates beginning at 5.37% for undergraduate loans. For refinancing, SoFi's fixed rates start at 4.99% and variable rates at 5.25%.

Below, we highlight the different types of debt that students use to finance their education: 

What loan terms are available from Earnest and SoFi?

When considering student loans and refinancing options, it's essential to understand the terms offered by different lenders. Two popular lenders in this space are Earnest and SoFi. Both offer a range of loan products with varying terms designed to meet the diverse needs of borrowers. Below is a detailed comparison of the loan terms available from Earnest vs SoFi.

Earnest Loan Terms

Earnest provides three primary types of loans: student loan refinancing, private student loans, and personal loans.

• Student loan refinancing. Borrowers can refinance loan amounts ranging from $5,000 to $500,000, providing flexibility whether you have a modest amount of student debt or a substantial loan balance.
• Private student loans. These loans can cover amounts from $1,000 to the total cost of attendance at your educational institution, ensuring that all educational expenses can be met.
• Personal loans. Personal loan amounts range from $5,000 to $75,000, offering a broad spectrum of funding options for various personal financial needs.

Interest Rates

Earnest offers both variable and fixed interest rates. The specific rate a borrower receives depends on their creditworthiness, the type of loan, and market conditions at the time of application. Earnest is known for providing competitive rates tailored to individual financial profiles.

Repayment Terms

• Student loan refinancing. Repayment terms range from 5 to 20 years. This flexibility allows borrowers to choose a term that fits their financial goals, whether they want to pay off their debt quickly or prefer lower monthly payments over a longer period.
• Private student loans. Repayment terms range from 5 to 15 years, providing a balance between short-term affordability and long-term financial planning.
• Personal loans. Terms typically range from 3 to 5 years, aligning with the usual repayment period for personal loans in the market.

SoFi Loan Terms

SoFi offers many loan products, including Student Loan Refinancing, Private Student Loans, Personal Loans, and Mortgage Loans.

• Student loan refinancing. Borrowers can refinance loans starting at $5,000 with no upper limit, making it suitable for those with significant student debt.
• Private student loans. These loans can cover amounts from $1,000 up to the cost of attendance, similar to Earnest.
• Personal loans. Loan amounts range from $5,000 to $100,000, providing higher maximum borrowing limits than Earnest.
• Mortgage loans. SoFi also offers home loans with competitive terms, though these are beyond the scope of student-related loans.

Interest Rates

SoFi offers both variable and fixed interest rates across its loan products. Interest rates are competitive and, like Earnest, depend on the borrower’s credit profile, loan type, and prevailing market conditions. SoFi is noted for its member benefits, such as rate discounts for existing members.

Repayment Terms

• Student loan refinancing. Terms range from 5 to 20 years, similar to Earnest, offering flexibility for different financial strategies.
• Private student loans. Repayment terms can be 5, 10, or 15 years, providing clear options for borrowers.
• Personal loans. Terms range from 2 to 7 years, offering a broader range of repayment periods compared to Earnest.
• Mortgage loans. Terms vary significantly and include typical mortgage lengths like 15 and 30 years.

What is the application process for refinancing student loans with Earnest and SoFi?

Refinancing student loans with Earnest and SoFi involves several steps, including checking your rates, submitting an application, and finalizing the loan. Here's a detailed overview of the application process in the student loan industry:

• Check your rates. Visit the lender’s website and provide some basic information, including your name, address, and details about your current student loans. Earnest and SoFi usually perform a soft credit check to provide personalized rate estimates without affecting your credit score.
• Choose your loan terms. After receiving your rate estimates, you can customize your loan terms by selecting your preferred interest rate (fixed or variable) and repayment term. Earnest and SoFi offer a unique precision pricing model, allowing you to choose any loan term between 5 and 20 years.
• Complete your application. If you are satisfied with the terms, you can proceed with the full application. This involves providing more detailed personal information, financial details, and documentation to verify your identity, income, and loan balances. Lenders often ask for documents such as recent pay stubs, tax returns, and statements for your existing student loans.
• Underwriting and approval. Lenders conduct a thorough review of your application, including a hard credit check. The underwriting process involves evaluating your credit history, income, employment status, and other financial factors. This step may take a few days to a week, depending on the completeness of your application and the time required for verification.
• Finalize your loan. If approved, you will be presented with a final loan offer. Review the terms carefully before accepting. Sign the loan agreement electronically, and your chosen lender will pay off your existing student loans. You will begin making payments to them under the new terms.

How do Earnest and SoFi address customer support and digital tools?

Both lenders offer comprehensive customer support frameworks to help borrowers manage their loans efficiently. Earnest provides multi-channel assistance, including dedicated phone support and an intuitive online portal that simplifies tracking payments and account details. In contrast, SoFi emphasizes a digital-first approach, with live chat features, detailed FAQs, and personalized member resources designed to resolve issues rapidly. Independent reviews note that both companies prioritize clear communication and accessible support, addressing borrower concerns with timely follow-ups and proactive solutions. For an in-depth look at service performance among leading student loan lenders, additional research can provide further comparative insights.

What are the tax implications of refinancing student loans?

Refinancing student loans may influence the deductibility of interest on your federal returns. Although interest on qualified student loans is often deductible within IRS limits, transitioning to a private refinancing option can require careful review to ensure the loan retains its qualified status. Specific loan structures and repayment arrangements may affect your eligibility for the student loan interest deduction. It is important to consult IRS guidelines or seek professional tax advice to determine how refinancing could alter your tax benefits. Evaluating these considerations alongside your long‐term financial strategy can help align refinancing decisions with your overall fiscal planning; for instance, exploring career options including the best majors to make money can further inform your financial roadmap.

What happens if you miss a payment with Earnest or SoFi?

Missing a payment on a student loan with Earnest or SoFi can have significant consequences. For Earnest vs SoFi, both lenders have protocols to address missed payments, but it's important to understand the potential impacts and available options for handling such situations.

Earnest

• Late fees. Earnest may charge a late fee if a payment is missed. The exact amount of the late fee can vary, but it is typically a percentage of the missed payment amount.
• Credit impact. Missing a payment can negatively impact your credit score. Earnest reports late payments to credit bureaus, which can lower your credit score and affect your ability to secure credit in the future.
• Grace periods and communication. Earnest generally provides a grace period before reporting a missed payment to credit bureaus, often around 30 days. It is crucial to communicate with Earnest if you anticipate difficulty making a payment. They may offer solutions such as adjusting your payment schedule or providing temporary relief options.
• Skip a payment option. If you have been making consistent, on-time payments for at least six months, Earnest allows you to skip one payment every 12 months. This skipped payment is added to the end of your loan term.
• Forbearance and deferment. In cases of financial hardship, returning to school, or other qualifying situations, Earnest offers forbearance and deferment options. These options temporarily pause or reduce your payments without negatively impacting your credit score.

SoFi

• Late fees. SoFi may also charge late fees for missed payments. The specific fee amount can vary, but it is generally a small percentage of the missed payment.
• Credit impact. Similar to Earnest, SoFi reports late payments to credit bureaus, which can adversely affect your credit score. Maintaining timely payments is critical to avoid this impact.
• Grace periods and communication. SoFi usually provides a grace period before reporting late payments, typically around 30 days. Proactively contacting SoFi if you expect to miss a payment is advisable. SoFi may offer temporary solutions to help manage your payments during difficult times.
• Autopay and reminders. Enrolling in autopay can help prevent missed payments by automatically deducting the monthly payment from your bank account. SoFi also provides payment reminders to help you stay on track with your repayment schedule.
• Forbearance and unemployment protection. SoFi offers forbearance options for borrowers experiencing financial hardship or other qualifying situations. Additionally, SoFi has an Unemployment Protection Program that allows borrowers to pause payments for up to 12 months if they lose their job. During this time, SoFi also provides job placement assistance.

What are the potential drawbacks of choosing Earnest or Sofi for refinancing?

Choosing Earnest or SoFi for refinancing can offer significant benefits, but it's important to be aware of potential drawbacks for both lenders.

Loss of Federal Loan Benefits

Refinancing federal student loans with either Earnest or SoFi means forfeiting federal protections such as income-driven repayment plans, deferment, forbearance, and forgiveness programs. This can be a major disadvantage if you encounter financial difficulties or qualify for loan forgiveness in the future.

Impact on Credit Score

Both lenders perform a hard credit check during the application process, which can temporarily lower your credit score. Additionally, if you choose a variable interest rate, there is a risk that rates may increase over time, leading to higher monthly payments and more interest paid over the life of the loan.

Eligibility Requirements and Loan Options

SoFi may have stricter eligibility requirements, such as higher credit scores and stable income, which can limit access to their best rates. Additionally, both lenders focus primarily on student loan refinancing and personal loans, which might be limiting if you seek a broader range of financial products or services.

How can you optimize your eligibility for refinancing student loans?

Strengthening your refinancing application begins with tailored financial improvements. Focus on timely debt repayments and reducing credit utilization as these actions can positively impact your credit score. Strategic management of your debt-to-income ratio through minimizing outstanding balances and securing consistent income streams enhances your profile. Additionally, evaluating further education options, like those offered by trade schools online, can diversify your qualifications and potentially improve future financial flexibility. Ensure all supporting documentation is thorough and up to date, and consider professional advice to align your financial strategies with eligibility criteria.

How does refinancing impact your long-term credit and financial planning?

Refinancing your student loans can have evolving effects on your credit profile and overall financial strategy. A successful refinancing process might consolidate multiple debts into a single payment and potentially improve your credit mix, yet the hard inquiry during the application can cause a short-term score dip that may affect future borrowing. It is essential to evaluate how changes in repayment terms align with your long-term financial goals and how they might influence access to other credit facilities.

For borrowers with less-than-ideal credit, including those considering a student loan for bad credit, a thorough review of monthly obligations and repayment strategies is critical. This evaluation should incorporate analyzing potential benefits such as consistent on-time payments, the cumulative impact on credit history, and future loan eligibility. Balancing immediate refinancing gains with long-term financial stability is crucial for optimal credit health and sustainable financial planning.

How to decide between Earnest and SoFi for your specific needs?

Selecting the right lender for refinancing your student loans depends on a variety of factors, including interest rates, repayment terms, eligibility requirements, and additional features offered by the lender. Both Earnest and SoFi have unique advantages that cater to specific borrower needs.

For borrowers who prioritize flexibility, Earnest stands out with its customizable repayment options. If you anticipate needing to adjust your payment due to changes in financial circumstances, Earnest might be the better choice. Additionally, its unique precision pricing allows borrowers to set their exact monthly payment amount, rather than choosing from predefined terms.

If you're looking for perks beyond financial products, SoFi offers value-added benefits through its member programs, such as career coaching, financial planning, and networking opportunities. Borrowers who want additional community and professional development opportunities may find SoFi more appealing.

It’s also essential to consider the timing of your refinancing decision. Factors such as interest rate trends and federal policy changes can significantly affect your refinancing outcomes. For more detailed guidance on determining the right timing for loan-related actions, visit this comprehensive resource on when to apply for student loans.

Is Your Personal and Financial Data Secure with Earnest and SoFi?

Both lenders implement industry-standard encryption and comply with regulatory privacy standards to protect sensitive borrower information. They maintain transparent data practices and adhere to established protocols to minimize the risk of fraud and unauthorized access. Reviewing their updated privacy policies is recommended before proceeding with refinancing, as it ensures you are aware of how your information is managed. Additionally, evaluating options such as FAFSA-approved online certificate programs may help enhance your financial and professional security strategies.

Is refinancing student loans a strategic move during economic volatility?

When considering refinancing during uncertain economic conditions, evaluate the stability of your income, the potential for variable interest rate increases, and how these factors align with your long‑term financial strategy. Analyze your budget to determine if immediate interest savings justify the risk of future rate adjustments, and ensure that your repayment plan remains manageable even if market conditions shift. Additionally, consider investing in further education to solidify your career prospects, such as pursuing a fast track bachelor's degree online, to build resilience against economic downturns without compromising your cash flow.

Are there alternatives to Earnest and SoFi for refinancing student loans?

When exploring refinancing options, it’s also important to consider alternatives beyond Earnest and SoFi that may align better with specific financial situations or preferences. One such alternative is College Ave, a lender well-regarded for its simple application process, flexible repayment plans, and competitive rates.

College Ave specializes in student loan refinancing and private student loans and stands out for offering borrowers a high degree of customization in their repayment terms. With an intuitive online platform, borrowers can seamlessly adjust loan repayment lengths and view the impact on monthly payments in real-time. This level of transparency makes College Ave a strong option for those seeking clarity and control over their financial commitments. Moreover, College Ave provides additional tools to help students and graduates manage their loans effectively.

When deciding between Earnest, SoFi, or other refinancing options, it’s crucial to compare the specifics of interest rates, eligibility requirements, and unique features offered by each lender. For an in-depth look at one such alternative, you can visit this comprehensive review on College Ave student loans to determine if their refinancing services align with your needs.

By broadening your search and exploring various options, you can make a more informed choice that fits both your current financial standing and long-term repayment goals.

Are there hidden fees or additional costs with Earnest and SoFi?

Both lenders may include fees beyond advertised interest rates, such as application, prepayment, or late payment fees. Earnest generally maintains a transparent fee structure, while SoFi often minimizes charges through bundled member benefits. It is advisable to verify any ancillary costs with your lender and review independent fee analyses before proceeding. Detailed breakdowns from reputable sources, including the best online certificate schools, can provide additional clarity for comprehensive cost comparisons.

Can refinancing student loans support your investment in professional growth?

Refinancing student loans may lower monthly payments, potentially freeing up additional funds to pursue career-enhancing opportunities. By optimizing your debt repayment plan, you might allocate savings toward professional development initiatives, such as 12-month certificate programs that pay well. Evaluating these opportunities within your overall financial strategy can strengthen both your earning potential and long-term career trajectory.

Will Refinancing Affect Your Eligibility for Additional Education Funding?

Refinancing student loans can alter your overall debt profile, which may be evaluated by future lenders when you apply for additional education financing. Potential changes in your credit mix and debt-to-income ratio can influence eligibility for subsequent loans designed for advanced studies. For example, if you plan to embark on further education, such as dentistry, it's important to assess how your refinancing decision might impact future borrowing capacity and access to specialized loan products, like how to pay for dental school. Evaluating these strategic factors as part of your broader educational and financial planning can help ensure that refinancing meets both current and future funding needs.

Key Findings

• There are 43 million Americans with federal student loans.
• Students graduating with a bachelor's degree carry an average debt of $30,500.
• Student loans account for 95% of all educational debt.
• Private loans peaked at 34.6% in 2008, declined sharply to -7.9% in 2010, and stood at -2.0% in 2023.
• Refinancing student loans can save an estimated $6,761.05.

Other Things You Should Know About Earnest vs SoFi

How trustworthy is earnest? 

Earnest is generally considered trustworthy. It's a well-known financial technology company specializing in student and personal loans. They are known for their transparent fee structures and customer-friendly policies. However, it's always wise to review the latest customer feedback and ratings for up-to-date information.

Who is the competitor of SoFi? 

Major competitors of SoFi include companies like Earnest, CommonBond, and Laurel Road. These companies also offer student loans, refinancing, and other financial products.

What are the customer satisfaction ratings for Earnest and SoFi?

Customer satisfaction ratings for Earnest vs SoFi can vary depending on the source, but generally:

• Earnest. Often receives high marks for its customer service and user-friendly loan application process. Customers appreciate the personalized loan options and transparency in the terms. However, some may find their rates slightly higher compared to competitors.
• SoFi. Also tends to score well in customer satisfaction, particularly for its broad range of financial products and perks like career coaching and financial planning. SoFi is praised for its easy-to-use platform and helpful customer support. Some reviews mention occasional issues with loan servicing but generally highlight a positive overall experience.

References:

1. Federal Reserve Bank of New York. (2024). Student debt. Federal Reserve Bank of New York.
2. Education Data Initiative. (2024). Student loan refinancing. Education Data Initiative.
3. Bankrate. (2023, August 9). Student loan debt statistics. Bankrate.
4. Education Data Initiative. (2024). Student loan debt statistics. Education Data Initiative.
5. Investopedia. (2024, January 12). Earnest student loans review. Investopedia.
6. CNBC Select. (2024, April 5). Student loan refinancing saves money. CNBC Select.
7. Money.com. (2023, December 5). Student debt statistics. Money.com.