PLUS Loans are suitable for parents seeking federal loan benefits and protections, while SoFi Private Student Loans are a good option for borrowers with strong credit seeking flexible repayment terms and additional perks.
| Attribute | PLUS Loan (Parent Loan for Undergraduate Students) | SoFi Private Student Loans |
|---|---|---|
| Interest Rate | Fixed. For loans disbursed between July 1, 2025, and June 30, 2026, the interest rate is 8.94%. Interest rates for new PLUS loans change annually on July 1. | Fixed rates range from 3.23% APR to 15.99% APR with a 0.25% autopay discount. Variable rates range from 4.39% APR to 15.99% APR with a 0.25% autopay discount. Variable rates are capped at 17.95% unless otherwise required by law. |
| Loan Amount Limits | The maximum PLUS loan amount is the student's cost of attendance minus any other financial aid received. There are no set annual or aggregate loan limits. | Minimum loan amount is $1,000. No maximum loan amount, but you can't borrow more than your school-certified cost of attendance, minus any financial aid. SoFi can cover up to 100% of the school-certified cost of attendance. |
| Repayment Options and Flexibility | Eligible repayment plans include the Standard Repayment Plan, Graduated Repayment Plan, and Extended Repayment Plan. Parent PLUS borrowers can become eligible for the Income-Contingent Repayment Plan by consolidating their loans into a Direct Consolidation Loan. Repayment generally begins soon after the loan is fully disbursed, but deferment may be requested. | 5, 7, 10, and 15-year repayment terms. Making payments while in school and picking shorter loan terms can help pay the loan off quickly. Option to make payments even if you choose to defer during school. |
| Eligibility Requirements | The borrower must be the biological, adoptive, or stepparent of a dependent undergraduate 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. | Must be at least the age of majority in your state. Must be a U.S. citizen, permanent resident, or eligible non-permanent resident alien. Need proof of citizenship status. Must be enrolled in an eligible degree-granting program at an eligible school (associate degrees do not qualify). Half-time enrollment generally required. Applicants must be employed or have sufficient income, or apply with a cosigner who meets either criteria. |
| Cosigner Options | While PLUS loans don't technically have cosigners, you can apply with an endorser if you don't initially qualify. An endorser is someone with good credit who agrees to repay the loan if you cannot. The endorser cannot be the child on whose behalf you are borrowing. | Cosigners allowed. A cosigner with a strong financial history, income, and good credit may improve approval chances and could help qualify for a lower interest rate. Cosigner release available after 12 months of on-time consecutive payments, meeting credit and income criteria at that time. |
| Fees | PLUS Loans have origination fees. For loans first disbursed on or after October 1, 2020, the origination fee is 4.228%. This fee is deducted from the loan disbursement unless you choose to roll it into the outstanding loan balance. There are no prepayment penalties. | Zero fees. No origination fees, application fees, prepayment penalties, late fees, or insufficient fund fees. |
| Deferment and Forbearance Options | Deferment allows you to postpone payments, often while the student is in school and for six months afterward. Forbearance is also possible during financial hardship. Interest accrues during both deferment and forbearance. | Deferment and forbearance options are determined by the lender. SoFi may offer these options in certain circumstances, such as returning to grad school or entering active military duty. Contact SoFi to discuss available options if you encounter unexpected financial difficulties. |
| Credit Score Requirements | There is no minimum credit score needed. However, you cannot have an adverse credit history. | SoFi doesn't explicitly list a minimum credit score. Most private lenders require at least good credit (FICO score between 670 and 739). SoFi shares that 'good or excellent' credit scores will be approved, usually meaning scores around or above 700. |
| Loan Servicer | The U.S. Department of Education is your lender, but they utilize various servicers to handle billing and other aspects of the loans. | SoFi partners with MOHELA to service loans from disbursement until they are paid in full. Contact MOHELA at 877-292-7470 for assistance. |
| Disbursement Speed | Federal PLUS Loan funds are sent directly to the college, which applies the funds to tuition, fees, and other charges. Any remaining balance is refunded to the student or parent. | You can apply for a student loan online and get a credit decision in just three minutes. |
| Borrower Benefits | PLUS loans offer access to federal benefits and protections like income-driven repayment plans and loan forgiveness programs. | Autopay Discount: 0.25% interest rate reduction when you sign up for automated payments. Continuing Scholar Discount: 0.125% interest rate discount on subsequent loans if you've taken out a private student loan with SoFi before. Good Grades Bonus: Up to a $250 cash bonus to your SoFi Checking and Savings account for a 3.0 or higher GPA. Rewards Program: Earn points for actions like signing up for credit score monitoring or using other SoFi products, redeemable to help pay down your student loan. Financial Planning: SoFi members can book 30-minute sessions with financial planners to get personalized advice at no cost. |
| Customer Service Quality | Contact your loan servicer for assistance. They can help explain options for keeping your loan in good standing, such as changing repayment plans or requesting deferment or forbearance. | SoFi consistently receives strong reviews from borrowers for its customer support. Contact them by live chat, phone at 855-456-7634, or by tweeting @SoFiSupport. |
| Origination Fee | 4.228% | None |