Federal Direct PLUS Loans are suitable for borrowers seeking potential loan forgiveness and income-driven repayment options, while SoFi Private Student Loans are better for borrowers with good credit who want to avoid origination fees and potentially benefit from variable interest rates and various discounts.
| Attribute | Federal Direct PLUS Loans | SoFi Private Student Loans |
|---|---|---|
| Interest Rates (Fixed or Variable) | Fixed interest rates that are determined annually for loans disbursed between July 1 and June 30. For Direct PLUS Loans disbursed between July 1, 2025, and June 30, 2026, the interest rate is 8.94%. These rates remain fixed for the life of the loan. | SoFi offers both fixed and variable interest rates. Fixed rates range from 3.23% to 15.99% APR with an autopay discount of 0.25%. Variable rates range from 4.39% to 15.99% APR with the same autopay discount. Variable interest rates are capped at 17.95%. Rates are influenced by creditworthiness, loan term, and autopay enrollment. |
| Loan Amounts Available | Borrowers can borrow up to the school's cost of attendance, minus any other financial aid received. There is no fixed limit. | Borrowers can take out a minimum of $1,000, up to the full cost of attendance, as certified by the school, minus any other financial aid received. |
| Repayment Options and Flexibility | Standard, graduated, and extended repayment plans are available. Parent PLUS loans are eligible for Income-Contingent Repayment (ICR) only if the parent consolidates the loan into a Federal Direct Consolidation Loan. Income-driven repayment (IDR) plans are available for Grad PLUS loans. Repayment typically begins within 60 days of full disbursement. However, deferment options are available. | SoFi offers immediate, interest-only, partial, and deferred repayment plans. They also offer 5, 7, 10, and 15-year loan terms. Refinancing loans can have terms up to 20 years. |
| Eligibility Requirements | Parent PLUS Loans: The borrower must be the biological, adoptive, or stepparent of a dependent undergraduate student. Grandparents and legal guardians are ineligible unless they have legally adopted the student. The student must be enrolled at least half-time in an eligible degree or certificate program. Both the borrower and the student must be U.S. citizens or eligible non-citizens. The borrower must not have an adverse credit history. The student and parent must complete the FAFSA. Grad PLUS Loans: The borrower must be a graduate or professional student enrolled at least half-time. The borrower must be a U.S. citizen or eligible non-citizen. Must not have an adverse credit history. FAFSA is required. | Eligibility includes U.S. citizenship or residency, age of majority, enrollment at an eligible institution, and meeting credit score (650-680 minimum) and income requirements. SoFi also considers free cash flow, financial history, and professional credentials. Unlike other lenders, SoFi doesn't have specific income requirements but is more concerned with the money left after monthly bills. |
| Fees (Origination, Late Payment, Prepayment) | Origination Fee: A fee of 4.228% is applied to PLUS loans with a first disbursement date on or after October 1, 2020. This fee is deducted from each loan disbursement. Late Payment Fees: While federal loans previously charged late fees, the U.S. Department of Education no longer charges them on federally-held student loans. Prepayment Penalties: There are no prepayment penalties. | SoFi charges no origination fees, prepayment penalties, or late fees. |
| Cosigner Options and Release | Cosigners are not typically required. If a borrower is denied a PLUS loan due to adverse credit history, they may still qualify by adding an endorser (cosigner) or documenting extenuating circumstances. | Cosigners are not required. Adding a cosigner may improve approval chances and help qualify for a lower interest rate. Cosigner release is possible after 12 months of on-time payments. |
| Deferment and Forbearance Options | Deferment and forbearance allow you to temporarily postpone loan payments. Parents can request a deferment while the student is in school. Interest accrues during deferment and forbearance. You can apply for deferment or forbearance online, by mail, or by phone through your loan servicer. | SoFi offers hardship forbearance due to involuntary unemployment. Borrowers can apply through SoFi's website. Deferment options depend on the chosen repayment plan. Forbearance may be granted in three-month increments for up to 12 months. |
| Loan Forgiveness Programs | Federal Direct PLUS loans are eligible for discharge upon the death or total and permanent disability of the borrower. Parent PLUS loans may be discharged upon the death of the student beneficiary. Parent PLUS loans can qualify for forgiveness under the Income-Contingent Repayment (ICR) plan and Public Service Loan Forgiveness (PSLF) program. To become eligible, PLUS loans must be consolidated into a Direct Consolidation Loan. PSLF forgives the remaining balance on Direct Loans after 120 qualifying monthly payments while working full-time for a qualifying employer. | SoFi does not have specific loan forgiveness programs based on career or other qualifications. In the event of a student's death, the loan would be forgiven. SoFi does offer forgiveness for permanent and total disability cases upon review and verification of specific requirements. |
| Customer Service and Support | Contact your loan servicer for assistance with repayment options, deferment, and forbearance. | SoFi has an in-house customer service team. They also provide debt management and financial literacy tools. The SoFi Paying for College Hotline connects students and their families with specialists at no cost. |
| Application Process and Approval Time | The student must complete the FAFSA. Apply for a PLUS loan through the U.S. Department of Education. Most schools require online applications. The application requires providing a verified FSA ID, the name of the child's school, and personal/employer information. A credit check is conducted. | The application process is entirely online. Initial approval can be obtained within minutes. Funding can take four to six weeks from application submission. |
| Credit Score Requirements | There is no minimum credit score, but an adverse credit history can limit eligibility. | A minimum FICO score of 650 to 680 is typically needed. The typical credit score of SoFi borrowers is at least 700. |
| Discounts and Benefits | Some lenders offer an autopay discount. Federal loans offer flexible repayment options, income-based repayment, and potential loan forgiveness and deferment benefits. | 0.25% interest rate discount for autopay; 0.125% interest rate discount on subsequent loans with the Continuing Scholar Discount; Rewards points program; Good grades bonus; Discounts on other SoFi products; Rate discount for American Academy of Family Physicians (AAFP) members. |