If you have already maxed out your federal student loans and still need help covering tuition, a private loan might be your next step. Two lenders come up over and over again in student conversations: Earnest and SoFi. Both market themselves as tech-forward, borrower-friendly alternatives to traditional banks. But their features differ in ways that can save you real money -- or cost you if you pick the wrong fit. This guide breaks down rates, repayment perks, and unique extras so you can make a confident choice for the 2025-26 academic year.
Who Are Earnest and SoFi?
Earnest launched in 2013 and is now a subsidiary of Navient. It focuses on precision pricing -- using granular financial data to give each borrower a personalized rate rather than slotting everyone into broad credit tiers. SoFi (short for Social Finance) started in 2011 as a student loan refinancing company and has since grown into a full financial services platform with banking, investing, and career support tools.
Both lenders are available in all 50 states and offer loans for undergraduate, graduate, and professional degree programs. Neither charges origination fees, application fees, or prepayment penalties -- a standard that sets them apart from many traditional banks.
Interest Rates and Loan Amounts
For the 2025-26 academic year, here is how the two compare on pricing:
- Earnest undergraduate loans carry fixed rates starting at 4.43% APR and variable rates starting at 5.32% APR, with loan amounts from $1,000 up to the total cost of attendance.
- SoFi undergraduate loans offer fixed rates starting at 4.49% APR and variable rates starting at 5.09% APR, with a minimum loan amount of $5,000 and a maximum of the school-certified cost of attendance.
A few things stand out. Earnest's fixed floor is slightly lower, while SoFi's variable floor is slightly lower. That difference may only be a few dollars per month, but it matters over a 10-year repayment window. Also note the minimum: if you only need $2,000 or $3,000, Earnest can accommodate that, while SoFi cannot.
Both lenders offer 5-, 7-, 10-, 12-, and 15-year repayment terms. Earnest goes a step further by letting you pick your exact monthly payment amount (down to the dollar) within their approved range -- that is what they call precision pricing. You decide how much you can afford each month, and the system calculates the corresponding term length.
Repayment Options While in School
Both Earnest and SoFi give you choices about when to start repaying:
- Full deferment (no payments until after you leave school)
- Interest-only payments while enrolled
- Fixed low payments of $25 per month while in school
- Full principal-and-interest payments immediately
Choosing interest-only or fixed payments while enrolled keeps your balance from growing as fast. According to the College Board's Trends in Student Aid report, private loan borrowers who make in-school payments save an average of 10-20% in total interest over the life of the loan compared to full deferment.
Skip-a-Payment: Earnest's Standout Perk
Life happens. Maybe your car breaks down the same week rent is due, or your summer internship starts a month later than expected. Earnest offers a skip-a-payment feature that lets you pause one monthly payment every 12 months without penalty. You do not need to prove hardship -- you simply request it through the app or website.
The skipped payment does not vanish; interest still accrues during that month, and the amount gets added to the back end of your loan. But it gives you breathing room without triggering a late-payment report to the credit bureaus. For a student managing inconsistent income, that flexibility can prevent a small cash-flow crunch from snowballing into a credit problem.
SoFi does not offer a comparable skip-a-payment option on its in-school student loans. If you fall behind, your main option is to contact their support team and request a temporary forbearance, which is a more formal process and typically reserved for documented financial hardship.
Career Coaching and Member Benefits
SoFi stands out with its career services package. Every SoFi member -- not just borrowers in repayment -- gets free access to:
- One-on-one career coaching sessions with certified coaches
- Resume review and interview preparation
- Networking events and job-search workshops
- Financial planning tools and access to certified financial planners at no extra cost
These services are available through SoFi's member benefits portal. For a student about to graduate and enter a competitive job market, free career coaching is worth hundreds of dollars compared to hiring a private coach.
Earnest does not offer career coaching or bundled member perks. Its value proposition centers more on the loan product itself -- flexible terms, precision pricing, and borrower-friendly policies like skip-a-payment.
Cosigner Release Policies
Most undergraduates need a cosigner to qualify for a private student loan. According to Sallie Mae's How America Pays for College 2025 survey, roughly 92% of private student loans for undergraduates involve a cosigner.
Here is how each lender handles cosigner release:
- Earnest allows cosigner release after 24 consecutive on-time payments, provided the primary borrower meets credit and income requirements on their own.
- SoFi also allows cosigner release after 24 consecutive on-time payments with similar credit and income criteria.
The timelines are identical. The real difference is in how easy each lender makes the process. Both require you to submit a formal application for release, but borrowers on forums and review sites frequently note that Earnest's process is more streamlined since it is built into their app dashboard.
Autopay Discounts and Fees
Both lenders offer a 0.25% interest rate reduction when you enroll in autopay. On a $30,000 loan at 6% over 10 years, that quarter-point discount saves you approximately $430 in total interest.
Neither Earnest nor SoFi charges:
- Origination fees
- Application fees
- Prepayment penalties
- Late fees (Earnest does not charge late fees at all; SoFi may charge a late fee after a grace period)
The late-fee difference is small but notable. If you are the type of person who occasionally misses a due date by a few days, Earnest's no-late-fee policy adds a layer of protection.
Precision Pricing: How Earnest Customizes Your Rate
Traditional lenders assign you to a rate tier based on your credit score range. Earnest takes a different approach. Their underwriting model looks at factors beyond your FICO score, including:
- Your savings habits and account balances
- Employment history and earning potential
- Education and degree program
- Monthly spending patterns relative to income
This means two borrowers with the same 720 credit score could get different rates from Earnest based on their overall financial picture. If you have strong savings habits or a high-earning major, you might qualify for a lower rate than a traditional lender would offer.
SoFi's underwriting also considers factors beyond credit score -- including career history, education, and cash flow -- but it does not market the same degree of per-dollar customization that Earnest promotes.
Roadblocks to Watch
Before you sign with either lender, keep these challenges in mind:
- Variable rates can rise significantly. Both lenders tie variable rates to SOFR (the Secured Overnight Financing Rate). If rates climb, your monthly payment could increase by $50-$100 or more on a $30,000 balance. Lock in a fixed rate if you want predictable payments.
- Private loans lack federal protections. Neither Earnest nor SoFi loans qualify for income-driven repayment plans, Public Service Loan Forgiveness, or federal forbearance programs. Always borrow the maximum in federal Direct Loans first -- for 2025-26, that is $5,500 to $7,500 per year for undergraduates depending on your year in school.
- Credit requirements are real. Both lenders typically require a credit score of 650 or higher (or a cosigner who meets that threshold). If your cosigner has limited credit history, you may face higher rates or denial.
- SoFi's $5,000 minimum can be a problem. If you only need a small gap loan of $1,000-$4,000, SoFi will not work for you. Earnest starts at $1,000 and is more flexible for smaller amounts.
- Refinancing later is not guaranteed. Both companies also offer refinancing products, but approval depends on your post-graduation income and credit. Do not assume you can simply refinance to a lower rate after school.
Quick Comparison Table
Here is a side-by-side summary:
- Minimum loan amount: Earnest $1,000 / SoFi $5,000
- Fixed APR floor (2025-26): Earnest 4.43% / SoFi 4.49%
- Variable APR floor (2025-26): Earnest 5.32% / SoFi 5.09%
- Skip-a-payment: Earnest yes (once per 12 months) / SoFi no
- Career coaching: Earnest no / SoFi yes (free for all members)
- Cosigner release: Both at 24 months of on-time payments
- Autopay discount: Both 0.25%
- Late fees: Earnest none / SoFi possible after grace period
- Precision pricing: Earnest yes / SoFi partial
The Bottom Line
If your top priority is payment flexibility and you want the ability to skip a payment, fine-tune your monthly amount, or borrow a smaller sum, Earnest is the stronger pick. Its precision pricing model may also reward you with a better rate if you have solid savings habits but a thinner credit file.
If you value a broader support ecosystem -- career coaching, financial planning, networking events -- and you are borrowing $5,000 or more, SoFi gives you tools that extend well beyond the loan itself. Those career services can be especially valuable in your final year of school and first year after graduation.
Either way, remember the golden rule: exhaust federal aid first. Fill out your FAFSA, accept all federal Direct Loans available to you, and use private loans only to cover the remaining gap. Your future self will thank you for keeping that private balance as small as possible.
Ready to see exactly how much you will need to borrow -- and how Earnest or SoFi fits into your full financial picture? Build your personalized college funding plan at CollegeLens and compare scenarios side by side before you commit.
-- Sravani at CollegeLens