LOANS: The SOFI* Special

Fintech #7

With student loans set to resume after Congress vetoed Biden’s plan, many former students or current students across the country have to deal with a massive headache: student loans.

But since this is a fintech newsletter, nowadays, with the rapid increase in technologies, getting a loan has never been easier, and here is one way people paid for their entire undergraduate education:

SOFI with their Undergraduate Student loans, which they promise you can secure funding within THREE MINUTES (to get a rate quote) to pay for your entire undergraduate education.

It comes with no late fees, origination fees, late fees, or insufficient funds fees, and once students have made 24 straight on-time payments, they can apply to release cosigners from their loan.

There are two types of loans that SoFi offers: variable and fixed loans.

Before we bring in our thinking expert, ‘ The Thinker, to break this down

Anyways:

Variable Loans: They are like a rollercoaster; they go up and down because the interest rate can go up or down. This means that your monthly payments might change too. So, if the interest rate is 5% when you borrow the money, it might become 6% or 4% later on.

Fixed Loans: When you borrow money with a fixed interest rate, it means that the interest rate stays the same throughout the entire time you're paying back the loan. So, if the interest rate is 5% when you borrow the money, it will always be 5% until you finish paying it back.

Fixed loans tend to be safer because you know exactly the rate you are paying, but variable loans may have a lower interest rate, which means smaller payments are made each time.

Useful Fine Print Notice:

It should be noted that the longer the loan term, the lower the monthly payments will be, but that means more interest will be paid over the life of the loan.

Conversely, a shorter loan term may mean higher monthly payments, but less is paid in interest over the life of the loan.

*not a sponsored article