LendKey Vs. SoFi®: Which One Is Better For Student Loan Refinancing?

LendKey and SoFi® both offer student loan refinancing to qualifying borrowers. You can look for low interest rates from some of the best student loan refinancing lenders out there. But each company goes about the process differently.

SoFi® is a traditional private lender with various loan options, including personal loans, while LendKey is a lending marketplace that connects borrowers with several different refinancing lenders. Each offers competitive rates and a host of other benefits. There are some key differences between these lenders, though.

In this LendKey vs. SoFi® review, we’ll compare these two refinancing options to highlight key differences you should know.

LendKey vs. SoFi®: Student loan refinancing basics

If you’re thinking about refinancing your student loans, the interest rate is the first factor to consider. Lower rates mean a chance to save considerable money over the life of your refinanced loan. You can choose fixed rates or variable rates. However, with LendKey, only fixed rates are available for student loan refinancing at this time.

Here’s a breakdown of rates and terms available with each lender.

LendKey

4.0 out of 5

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LendKey: Best for community banks and credit unions

• Positives: Compares many smaller lenders you might not apply to
• Allows cosigners: Yes
• Deferment or forbearance available: Yes
• Interest rates: Fixed starting at 4.89% APR; Variable starting at 5.54% APR
• Bonus: $100 for refinancing up to $20k, or $200 for $20k to $100k, or $400 for over $100k, or $1,250 for $150k or more

Visit LendKey Up to $1,250 Bonus More Information

SoFi®

4.5 out of 5

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SoFi®: Best if you're unsure where to apply

• Positives: Competitive rates, flexible terms and view rates in just two minutes
• Allows cosigners: Yes, but no cosigner release offered
• Deferment or forbearance available: Yes, in limited situations
• Interest rates: Fixed rates 3.99 – 9.99% APR with all discounts; Variable rates 5.99 – 9.99% APR with all discounts
• Bonus: $500 for refinancing 100k or more (bonus from Student Loan Planner®, not SoFi®)

Visit SoFi® Up to $500 Bonus More Information

LendKey's loan terms range from five to 15 years, while SoFi® offers loan terms ranging from five to 20 years. Each comes with competitive rates and a 0.25% interest rate reduction if you sign up for the autopay discount feature. You can score a lower interest rate and choose from various repayment terms.

Also, both lenders offer refinancing starting at just $5,000 of student loan debt. So, you don't have to have a huge loan balance or take on a huge loan amount to take advantage of these benefits.

LendKey vs. SoFi®: Refinancing perks

Interest rates are another factor to consider when refinancing. You should still spend time looking at other features offered before making your decision.

	LendKey	SoFi®
Cosigner release	Yes	No
Transfer Parent PLUS to adult child	No	Yes
Minimum credit score	660	650
Referral bonus	Yes	Yes
Cash back bonus	Up to $1250 with this link	Up to $500 with this link (bonus from Student Loan Planner®, not SoFi)
Servicer	LendKey	MOHELA

Cosigners and cosigner release: Cosigners can help you qualify for refinancing when you don’t meet a lender’s requirements on your own.

LendKey and SoFi® allow cosigners on refinance loans, but only LendKey allows for cosigner release. Since LendKey works with multiple lenders, cosigner release depends on the specific lender you choose to refinance your loans.

There are financial implications for your cosigner if you can’t make your student loan payments. Make sure you and your cosigner are familiar with your lender’s terms before moving forward.

Ability to transfer a loan to another person: Sometimes, parents take out Parent PLUS Loans, hoping to transfer them into their child’s name, eventually. SoFi® allows parents to refinance loans under their child’s name, but LendKey doesn’t.

Earn money: LendKey and SoFi® have referral programs in place that offer borrowers a chance to earn extra cash. LendKey pays you $200 for each person you refer who takes out a loan. That person earns a $200 bonus, too. There’s no cap on how much money you can earn through LendKey referrals. Borrowers can earn up to $10,000 annually for referring friends to SoFi®.

As a disclaimer, Student Loan Planner® also partners with both refinancing companies, giving our readers a way to earn the biggest student loan refinance cash-back bonuses.

Loan servicers: Some lenders use loan servicers to handle the day-to-day business of managing and processing loan payments. LendKey services its own loans, while SoFi® uses the Missouri Higher Education Loan Authority (MOHELA) to service student loans.

For a closer look at both refinancing companies, check out our LendKey student loan refinance review and SoFi® student loan refinance review.

LendKey vs. SoFi®: Eligibility requirements

Private lenders, such as financial institutions, credit unions, community banks, and online lenders put strict requirements in place to qualify for refinancing. Requirements often include a minimum credit score. Here’s a look at some of the other requirements for a LendKey and SoFi® student loan refinance.

	LendKey	SoFi®
Minimum age	Varies by lender	Age of majority in your state
Citizenship	US citizen or permanent resident	US citizen, permannet resident or visa holder
Degree	Associates or higher from Title IV school	Associates or higher from Title IV school
Employment	$24,000 minimum income	Employed or offer of employment within 90 days

Both lenders require borrowers to have earned at least an associate’s degree as an eligibility requirement. They also have similar citizenship and degree requirements.

LendKey requires a $24,000 (or $12,000 with a cosigner) minimum income, while SoFi® only requires that you’re employed or have an offer of employment starting within 90 days.

Keep in mind that LendKey works with multiple lenders that might have additional requirements you’ll need to meet to qualify.

During the application process, you’ll be asked for documentation to verify the information provided is accurate.

Other factors lenders consider when refinancing student loans

Your financial health plays an important role in whether you’ll qualify for a student loan refinance. Besides credit scores, private lenders consider additional factors that affect their decision, like your debt-to-income ratio and credit history.

When comparing LendKey vs. SoFi® rates, both companies offer a quick interest rate check through a “soft credit pull” without negatively affecting your credit score. After deciding on a refinancing loan you want to pursue, the lender will run a hard credit check during the application process.

LendKey vs. SoFi®: Which one is better?

Student Loan Planner® recently rated 11 student loan refinancing companies as part of our commitment to readers. Both LendKey and SoFi® received a rating of 4.5 out of 5.

See the complete refinance lender ranking and how each compares to other refinancing companies.

Both companies offer a convenient rate-shopping experience and competitive terms. You can check LendKey student loan refinance rates directly.

Based on our research, LendKey and SoFi® are both highly-rated lenders. When considering a student loan refinance, a better question to ask is which lender is right for you?

The right fit depends on your current and future finances and your life situation. Be sure to check out the repayment plans, fixed interest rate versus variable-rate loans (Note: At this time, LendKey does not offer variable rates on refinance student loans), deferment/forbearance options, and automatic payments discount. Consider what your new monthly payment will be, and be sure to look at origination fees, and how much interest will cost you over the life of the loan.

If you have federal student loans, it's important to understand that consolidation through refinancing will pay off your current loans, and you'll then have private student loans. That means giving up loan forgiveness and loan repayment options like Income-Driven Repayment (IDR). Finding the best rates may be worth it, but understand what you give up with refinancing. If you refinance private loans, there's less risk. Just make sure to continue making on time payments.

Check out Student Loan Planner®’s list of the best banks to refinance student loans to learn more about your refinancing and cash-back bonus options.