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Key takeaways
- LendKey is better if you’re looking to quickly compare several loan companies.
- SoFi is better if you want an established company with discounts and member benefits.
- Get a quote from each lender and evaluate loan terms; explore alternatives if they fall short of your needs.
If you’re looking for a way to finance your college education, LendKey and SoFi are two solid options. The choice between the two comes down to how much you value flexibility in your loan choices and what features you prioritize.
SoFi is a more traditional student loan lender, offering specific loans for all types of students such as undergraduates, graduates and law students. LendKey is a loan comparison tool that matches you with small banks and credit unions.
SoFi vs. LendKey at a glance
| SoFi | LendKey | |
|---|---|---|
| Bankrate score | 4.8 | 3.8 |
| Interest rates | 3.54% to 15.99% Fixed APR (with Autopay) | 3.48% to 12.61% Fixed APR |
| Repayment terms | 5, 7, 10 or 15 years | 10 years |
| Loan amounts | $1,000 to full cost of attendance | $2,000 to full cost of attendance |
| Benefits | No fees; membership rewards; discounts | Compare several lenders at once; low APR caps; no application fees |
| Drawbacks | Loan term capped at 15 years | Extensive application requirements (with select lenders); loan details and fees vary by lender; credit-based application may require a cosigner to qualify |
| Details accurate as of Jan. 16, 2025 | ||
LendKey student loans
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Instead of offering separate student loan products, LendKey uses a single portal where several companies will review your information. This user-friendly platform streamlines the search for funding options with competitive rates by presenting you with tailored student loan offers that best suit your financial profile.
Pros
- No application or origination fees with lending partners.
- Matches borrowers with partner lenders to find the best deal.
- Borrowers get access to educational resources and scholarship search tool.
Cons
- Loan details and eligibility guidelines vary by lender.
- Single repayment term of 10 years on private student loans.
- Uses credit-based application.
SoFi student loans
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SoFi offers undergraduate, graduate, law and MBA student loans. It’s one of the more well-known student loan lenders, and borrowers enjoy a fee-free lending experience coupled with monetary incentives, rate discounts and flexible loan amounts to make it an attractive option. The minimum credit score requirement is 640, so it’s better suited for borrowers with good credit scores.
Pros
- No origination fees, application fees or late fees with SoFi.
- Borrowers have several repayment term options.
- Membership rewards points to help accelerate loan repayment.
Cons
- High APR for borrowers with lower credit scores.
How to choose between LendKey and SoFi
| Key points | LendKey | SoFi |
|---|---|---|
| Terms | ||
| Private student loans | 3.48% to 12.61% Fixed APR (with Autopay) | 3.54% to 15.99% Fixed APR (with Autopay) |
| Graduate loans | 3.48% to 12.61% Fixed APR (with Autopay) | 3.54% to 14.83% Fixed APR (with Autopay) |
| Refinance loans | 4.89% to 9.44% Fixed APR (with Autopay) | 4.49% to 9.99% Fixed APR (with Autopay) |
| Repayment options | ||
| In-school interest and principal payments | Yes | Yes |
| Interest only | Yes | Yes |
| Fixed in-school payment | Varies by lender and loan amount | Yes ($93.21 to $243.13, depending on loan term) |
| Deferment | Yes | Yes |
| Grace period (private student loans) | 6 months | 6 months |
APR range
The starting APRs of 3.48 percent and 3.54 percent for LendKey and SoFi, respectively, are comparable. That said, these figures are reserved for strong borrowers, which means LendKey could be the better pick here with a maximum APR of 12.61 percent compared to SoFi’s 15.99 percent if your credit score is on the lower end.
Minimum credit score
Both lenders permit cosigners, so poor credit doesn’t have to hinder you from qualifying for a loan. If you’re applying without a cosigner and have less than perfect credit, LendKey is more ideal since it shops your information to its network of over 300 lenders.
Repayment terms and grace periods
Regardless of the lender you’re matched with, all student loans through LendKey have a six-month grace period. The same applies for SoFi, but you get more flexibility with repayment terms, as there are four options to choose from compared to the one offered by LendKey.
Loan amount
SoFi has a slightly lower minimum of $1,000, which could work better for individuals looking to borrow a small amount. Both let you borrow up to the full cost of attendance.
Fees
SoFi prides itself on offering a fee-free lending experience for all its borrowers. LendKey’s partners also skip the application and origination fees, but other costs could apply depending on the lender you select.
The bottom line: Which lender is better?
If you have great credit and want a more full-service lender, SoFi is for you. SoFi offers a variety of products that may fit other aspects of your financial life, so you can earn discounts and membership benefits. Online chat support also makes SoFi more accessible.
If you’re hoping to stick with a credit union or you want to take some of the hassle out of comparing lenders, LendKey may be better for you. It’s an easy way to submit your loan details to several companies, and you’ll end up with a small bank or credit union that may offer more personalized service.
Compare more lenders before applying
SoFi and Lendkey are worth considering if you’re searching for ways to fund your college expenses. Still, it’s always smart to get quotes from several sources before taking out a loan.
Be sure to compare quotes from both lenders to see which offers you the best combination of interest rates, terms, perks and fees. From there, you can decide which lender is truly right for your needs or if you should explore alternative lenders.
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