I just found out about SOFI, a company/ service that will let you consolidate your student loans - they solicit other alumni to lend. I am not interested in consolidating my federal loans (want that federal guarantee / public service forgiveness option) but I have two companies now servicing my private loans and think this could be a good option for me.

I checked their listing of eligible schools and NYU, my alma-mater is listed under the schools that are serviced.

Anyone have advice or experiences to share in working with this company? I now have my private loans with two companies: Citi and Discover and I couldn’t really be more unhappy (except with my 24-year-old self who took out the loans, but that’s another story…).

Called them and it looks like my monthly payment would go down about $100 or $110 per month, BUT my interest rate would increase about 2% from what it is now and has been for 5 years (I have variable rate but it hasn’t changed so far during the life of the loan). $100 a month is not insignificant for me right now, as I am paying a good chunk of my non-profit income to these loans. But I don’t want to get into a situation with a company that I will regret later.

Any experiences with this particular company or thoughts on consolidating private loans to share would be appreciated.

Hi there.  I don’t have any loans with SoFi but I have had a few conversations with folks there and I appreciate that they are working on innovating in this area.  I agree with you that federal loans are best kept federal but that some people can benefit from reconsolidating private loans. I suggest that you closely compare your current loan terms to the terms of the new loan you are considering.  Read the promissory notes on your private loans.  Look for whether the variable rate has any cap (might not), whether the current lender offers ANY repayment or forbearance flexibility (probably not), and ask the same questions about the loan you are considering.  Ask if the SoFi loan has any provisions for forbearance, cancellation, or payment relief in case of emergency.  It seems to me that your main goal would be to lock in a fixed interest rate to avoid the possibility that your variable rate could climb sky high over time.  If and only if your credit score is higher than it was when you borrowed, you should also be aware that you might be able to find competing loan “products” from other lenders to compare to the SoFi option as well.  Also, bear in mind that paying less per month usually results in paying more over time.  Ask about whether prepayment is allowed.