Huge news on the debt payoff front today: I received an email from SoFi telling me that I’ve been approved to refinance my student loans, which are currently around 7 percent, to 3.4 percent.
This is important for multiple reasons, which I’ll go through below, but first, I’d like to do a quick review of my experience with SoFi so far.
A review of the application process with SoFi
(1) I was able to fill out the entire form online, which included uploading PDFs of W2s and other tax documents as proof of income.
(2) When I realized that I’d made an error on the form, there were three ways to contact SoFi instantly.
(3) Upon sending an email, I received a helpful, polite response to each of my questions within minutes.
Maybe a lifetime of long waits and endless circuits of automated messaging has lowered my expectations, but SoFi — whose rates are low enough that they don’t have to compete on customer service — really surprised me.
If the prospect of saving money on your loan payment isn’t enough to convince you to apply, then the customer service should. Oh, and since we’re on the topic, here’s a link to get $100 cash back if you do: https://sofi.com/refer/4/11129.
Three reasons why this refinance is important
These might be self-explanatory, but what the heck…
(1) Refinancing helps me build wealth
Depending on how quickly I pay back this newly refinanced loan, I could save tens of thousands of dollars in interest. And who’s gonna complain about having a couple extra Salmy Chases in their back pocket?
(2) Refinancing gives me more disposable income
At their current amount, my student loans cost me over $6,000 per year in interest. By cutting that interest rate in half, SoFi is effectively giving me a $3,000 raise — no performance review necessary 🙂
(3) Refinancing gives me more options
Ever since I took on this high-interest rate student loan debt, it’s been the primary focus of my personal finances. Any time I thought to do anything with money, I wondered how it might affect my student loan payoff.
Now that these loans will be at a much more reasonable interest rate, there may be new options for the money I save that I hadn’t even considered. I’ll have to think long and hard about what those might be.
Anyhow, thanks for reading. I’m excited about being able to move on to another chapter of my personal finance journey with the help of SoFi.