ELFI Review Overview

ELFI has emerged as one of the best student loan refinance lenders on the market.

Our review of ELFI found two big advantages over most other lenders. First, the ELFI customer support is based in the US and has won several awards. Second, because ELFI is backed by a bank, its rates tend to be more stable than those offered by tech companies like SoFi, and Earnest.

That all being said, there is some cause for concern for borrowers considering refinancing with ELFI.

Getting Started: The ELFI Basics

At this time, ELFI currently offers the lowest advertised interest rate in student loan refinancing. Their 5-year fixed-rate loan is an excellent choice for borrowers looking to repay their debt as quickly as possible. Another highlight for ELFI might be the 15 and 20-year fixed-rate loans which are among the lowest rates on the market.

To qualify for an ELFI loan, a borrower does need to have a degree and pass a credit check. Like most legitimate lenders, there are no loan application fees, origination fees, or prepayment penalties.

One area where ELFI is a little more strict than other lenders is that they require a minimum student loan balance of $10,000 to refinance. Borrowers with smaller balances should look at lenders like SoFi and Laurel Road, who require a minimum of only $5,000.

ELFI does offer a co-signer release program, but co-signers can only be released if the borrower can pass a credit check on their own.

ELFI Advantages

ELFI offers more than just low interest rates. Their call centers are all located in Tennessee, and borrowers get a single point of contact with a direct number to call for support. This should make resolving any issues go significantly smoother.

ELFI student loans are serviced by Mohela and American Education Services (AES). Mohela has one of the better reputations among student loan servicers, while AES is just average. Unfortunately, borrowers do not have a choice in the servicer that they are assigned.

ELFI is currently running a promotion that provides new borrowers a bonus of $150 who sign up following this link. While $150 is a decent chunk of change, we should note that it is still critical to shop around — borrowers with larger balances will be much better off in the long run if they chase the lowest rate rather than the biggest bonus.

Borrower Beware: An Important ELFI Concern

The concern we have with ELFI applies to pretty much every student loan refinance company.

Even though it makes sense for some borrowers to consolidate their federal student loans with a private lender, this move can also be a mistake. Refinancing your federal loans means you lose federal perks such as repayment plans based upon your income and student loan forgiveness programs. We look at these programs as an insurance policy. The cost of that insurance policy is higher interest rates.

If you think you might lose your job or not be able to afford your student loans, it is best to keep your loans with the federal government. If you have no problem paying off the debt, locking in a low interest rate could be a smart move.

Do I have Federal Loans? If you are not sure if your student loans are federal or private, visit the Department of Education’s Student Aid Portal. They keep detailed records of all federal student loans.

Why Pick ELFI Over Refinance Lenders Like SoFi and Earnest?

After watching ELFI for several years, I’ve come to the conclusion that this is a lender that marches to the beat of its own drum.

Investor interest tends to move the rates at most tech-based lenders. If student loans are a popular investment, the tech companies can offer excellent rates. If nobody wants to make an investment, funds dry up, and lenders raise rates. Most refinance companies move rates up and down in a similar manner.

ELFI rates move around less. There are times when ELFI is a bit behind the rest of the market, and there are times when ELFI has by far the best rates. For this reason, ELFI is worth a look for any borrower shopping around.

ELFI Student Loan Refinance Review: The Final Thoughts

The ELFI option sticks out due to the low interest rate offerings in a variety of loan categories.

Ultimately, advertised rates are a tiny part of the refinance equation. What matters is the actual rate offered. Because ELFI combines the stability of a longstanding bank with very low interest rates, it is a lender worth serious consideration.

Click here to check your rate with ELFI.

The post ELFI Student Loan Refinance Review appeared first on The Student Loan Sherpa.

When comparing SoFi and ELFI, very little separates the two companies. However, ELFI’s improved interest rates and approval rates give them a slight edge.

Both of these lenders rank toward the top of our student loan refinancing rankings, so no lender is clearly better than the other. Borrower circumstances may dictate which lender ends up being the better deal.

SoFi vs. ELFI – The Company Basics

ELFI, short for Education Loan Finance, is one of the newer national lenders offering student loan refinance. The ELFI strategy targets borrowers with large amounts of debt, excellent credit, and high incomes. While ELFI is a new name on the student loan marketplace, it is a product of SouthEast Bank, a longstanding regional bank. As we noted in our ELFI Review, this makes ELFI a compelling option.

SoFi is the established giant in the student loan refinance marketplace. Even though the company was founded less than ten years ago, SoFi now refinances more student debt than any other lender. Our SoFi Review explains how SoFi has grown so quickly.

Loan Terms Compared

These two lenders are very close in terms of interest rate offerings. ELFI rates currently start at 5.28% for their five-year variable-rate loan, while SoFi is a bit behind at 6.24%. On the fixed-rate side of things, Sofi has a 5.24% starting rate, while ELFI offers a slightly better 5.08%. Rates for both lenders tend to be close in nearly all loan categories. To compare these lenders across different loan types and lengths, be sure to check out our best student loan refinance interest rates page.

Neither lender caps maximum borrowing, but SoFi is willing to take on smaller balances starting at $5,000. To refinance with ELFI, you need a student debt of at least $15,000.

Finally, ELFI offers a signup bonus of $150. The $150 is a nice perk for signing up, but the interest rates offered will be the numbers that matter in the loan run.

Refinance Approval Rates

Approval rates with these two lenders tend to fluctuate.

When this article was first written, SoFi had a clear edge. As of the last update, ELFI appears to be slightly better than SoFi.

Ultimately, getting loan approval requires good credit and income, no matter what lender you select. The only way to know for sure what lender has the best interest rate is to apply with ELFI and then check your rate with SoFi.

SoFi and ELFI Perks

Each lender offers a consumer perk that is unique to the student loan refinance market.

SoFi Job Placement – Unlike any other lender, SoFi will help you find a job if you find yourself out of work or underpaid. Their calculation seems to be that by helping borrowers find jobs, they will spend less time and money chasing down borrowers who default on their loans. It is a bold strategy. We hope to see other lenders copy in the future.

ELFI Customer Support – Several lenders, including SoFi, have customer support entirely based in the United States. What makes ELFI unique is that each borrower is assigned a single point of contact for handling questions and issues. This means you have a direct number to the same person who is addressing any questions or concerns. The result is more personalized customer service and less time explaining the same problem over and over.

Which Student Loan Refinance Lender is Better: SoFi or ELFI?

Separating these two lenders is a bit of a challenge. ELFI has slightly better rates, but SoFi is the biggest lender for a reason.

In our student loan refinance rankings, we put SoFi in fifth place and ELFI in third. ELFI offers some of the very best rates to consumers with excellent credit scores and high income, but SoFi is still a willing lender able to offer excellent interest rates.

That being said, how we rank these two lenders should be of little significance to someone looking for the best deal on student loan refinancing. For a prospective borrower, the deciding factor should be the lender who offers the lower actual rate. The good news is that it takes less than 15 minutes total to check your rate with SoFi and to check your rate with ELFI.

Readers: Did you look into both of these companies? How did the rates they offered compare?

The post SoFi vs ELFI Student Loan Refinance Comparison appeared first on The Student Loan Sherpa.