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FAQs about refinancing your student loans

Over 40 million Americans hold $1.4 trillion in student loan debt, according to the Federal Reserve Bank of New York. ASDA partner SoFi answers some commonly asked questions about student loan refinancing.

Who should refinance?

Refinancing is a great solution for working dentists who have high-interest, unsubsidized Direct Loans, Graduate PLUS loans and/or private loans. Federal loans do carry some special benefits, such as public service forgiveness and economic hardship programs, that may not be accessible to you after you refinance.

What is a Direct Consolidation Loan?

A Direct Consolidation Loan is a government program that allows you to combine multiple federal education loans into a single loan. The resulting interest rate is a weighted average of your prior loan rates.

What is the difference between consolidation and refinancing?

When you consolidate federal loans through the federal loan consolidation program, you’re combining multiple loans with a resulting interest rate that’s the weighted average of your original loans’ rates. When you refinance loans with a private lender, you’re also consolidating (i.e., combining) them, but the lender will use your financial information to give you a new, hopefully lower, interest rate.

Will applying for a student loan refinancing affect my credit?

Typically, a lender will conduct a soft credit pull to check the rates and terms you qualify for; this will not affect your credit score. However, if you choose a product and continue your application, the lender will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull.

When is the best time to refinance?

You must have graduated and have a job offer to start within 90 days. The earlier you refinance to a lower loan rate, the more money you will save. Even if you are in your grace period, interest accrues for unsubsidized federal loans.

SoFi extends ASDA members the opportunity to save money on their student loan debt by refinancing through SoFi honors the first six months of any existing grace period of the loans you refinance with the company. Members and their families who refinance their student loans through are eligible to receive a $300 welcome bonus1 upon refinancing.

Terms and conditions apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. To qualify, a borrower must be a U.S. citizen or permanent resident in an eligible state and meet SoFi’s underwriting requirements. Not all borrowers receive the lowest rate. To qualify for the lowest rate, you must have a responsible financial history and meet other conditions. If approved, your actual rate will be within the range of rates listed above and will depend on a variety of factors, including term of loan, a responsible financial history, years of experience, income and other factors. Rates and terms are subject to change at anytime without notice and are subject to state restrictions. SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers such as Income Based Repayment or Income Contingent Repayment or PAYE. Licensed by the Department of Business Oversight under the California Financing Law License No. 6054612. SoFi loans are originated by SoFi Lending Corp., NMLS # 1121636. (
(1) Payment will be issued electronically once you become a SoFi borrower; you have submitted a completed application with documents and your loan has been disbursed. Offer good for new customers only.


SoFi is a new kind of finance company taking a radical approach to lending and wealth management. We take a radical approach in everything we do, from offering unprecedented services around borrowing and wealth management to evaluating loan applicants not on numbers, but on potential. We’ve replaced the impersonal, transactional bank experience with a long term partnership, enabling our members to realize the full potential of their money, careers and relationships. Our members constantly push the limits of what life has to offer. Whether looking to refinance their student loans, buy their dream home, or simply seek advice as they ascend in their careers, SoFi provides the best products and tools to match their ambitions and propel them to new levels of financial greatness. Learn more at Members and their families who refinance their student loans through are eligible to receive a $300 welcome bonus upon refinancing.

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