SoFi - Financing Your Graduate School Education - SoFi and Ivy Exec Webinar

Information presented is current as of 09/06/2012

Financing Your MBA Education with SoFi
Walter Balmas – Vice President, SOFI LENDING CORP

The information contained in this presentation provides general information about SoFi’s loan programs. The presentation is not
meant to be comprehensive and should serve only as general, background information for further investigation and study related to
the subject matter and the specific factual circumstances being considered or evaluated. Nothing in this presentation constitutes or
is designed to constitute legal advice. Want more info? Go to www.sofi .com 1


The information contained in this presentation provides general information about SoFi’s loan programs. The presentation is not
meant to be comprehensive and should serve only as general, background information for further investigation and study
related to the subject matter and the specific factual circumstances being considered or evaluated. Nothing in this presentation
constitutes or is designed to constitute legal advice.

Overall Cost of Attendance at Top MBA Programs
School Total MBA Cost Two-Year Tuition Percent Getting Aid Amount of Aid/Loans
1. Columbia $168,307 $106,416 55% $115,716
2. Pennsylvania (Wharton) $168,000 $108,018 76% Not Available
3. Stanford $166,812 $106,236 75% $115,954
4. Chicago (Booth) $165,190 $101,800 Not Available Not Available
5. Dartmouth (Tuck) $162,750 $101,400 80% $90,150
6. MIT (Sloan) $160,378 $100,706 71% $130,418
7. Harvard $158,800 $97,200 63% $113,038
8. New York (Stern) $157,622 $94,572 Not Available $114,628
9. Northwestern (Kellogg) $156,990 $102,990 66% $111,782
10. Yale School of Mgt. $151,982 $99,800 70% $87,182
11. Carnegie Mellon $149,400 $105,000 81% $88,240
12. UCLA (Anderson) $147,278 $97,854 80% $85,744
13. Berkeley (Haas) $144,746 $95,274 68% $67,052
14. Cornell (Johnson) $142,404 $98,544 70% $87,182
15. Virginia (Darden) $142,000 $99,000 80% $110,160
16. Michigan (Ross) $141,210 $107,600 72% $107,228
17. Duke (Fuqua) $137,744 $95,920 81% Not Available
18. UNC (Kenan-Flagler) $136,860 $93,176 73% $87,924
19. Emory (Goizueta) $130,280 $84,800 85% $90,534
20. Texas-Austin (McCombs) $127,144 $90,256 75% $97,740

Want more info? Go to www.sofi .com 2


• An analysis by website, Poets & Quants, • There are eight U.S. schools where the
that takes into account the opportunity cost of getting an MBA now exceeds
costs of quitting a job to attend graduate $300,000. They include:
school for two years, has concluded the
following: (John A. Byrne, Poets & Quants,  Stanford ($351,662)
11/17/2011)
 Harvard ($348,800)
 Wharton ($326,400)
• THE TOTAL COST OF AN MBA DEGREE
NOW EXCEEDS $300,000 AT EIGHT U.S.  Columbia ($322,590)
SCHOOLS  Dartmouth ($316,200)
 Chicago ($315,608)
 MIT ($313,264)
 Northwestern ($310,378)



• What is a Financial Aid
Package? • It is an aggregation of free and/or low cost
financing options offered to you by your
school as determined by a federally-
regulated need analysis formula applied to
the income data you provided when you
completed the Free Application for
Federal Student Aid (“FAFSA”)
• It is always recommended that you start
your hunt for financing by completing the
FAFSA even if you think you made too
much money or will not qualify. Most
sources of free or low cost financing
whether a government entity or a private
foundation will require confirmation that
you did so before releasing their money to
you.


• What is in a Financial Aid Package
for most MBA Student?



• SCHOLARSHIPS
• Primarily merit-based
• Some need-based

• Private Foundations
• Governmental Entities
• Individuals

• Free Money
• Competitive
• If you’re offered one, take it



• GRANTS
• Primarily need-based
• Some merit-based
• Some Work Study

• Governmental Entities
• Private Foundations
• Individuals

• Free Money
• Income-contingent
• If you’re offered one, take it


• LOANS
• Federal Perkins
• Federal Direct Unsubsidized
• Federal Graduate PLUS
• Private Education Loans

• U S Department of Education
• Private Lenders

• NOT Free Money
• If you’re offered one, shop
carefully and compare


• COMPARING LOANS Information current as of 09/06/2012

Federal Perkins Federal Direct Federal Direct
SoFi
Unsubsidized Graduate PLUS
• 5.00% fixed • 6.80% fixed • 7.90% fixed • 6.49% fixed
• 0% fee • 1% fee • 4% fee • 0% fee
• Interest-free • Interest accrues • Interest accrues • Interest accrues
while in-school while in school while in school while in school
• 9 month grace & capitalizes at & capitalizes at & capitalizes at
period repayment repayment repayment
• 10 yrs. to repay • 6-month grace • 6-month grace • 6-month grace
period period period
• 10-25 yrs. to • 10-25 yrs. to • 15 yrs. to repay
repay (30 repay (30
through Direct through Direct
Consolidation) Consolidation)


What are the differences between federal and private loans?

The following differences are replicated verbatim from a chart created by Federal Student Aid,
An Office of the U.S. Department of Education at http://studentaid.ed.gov/node/52
My comments to it are highlighted accordingly

• Federal Student Loans • Private Student Loans

• You will not have to start repaying • Many private student loans require
your federal student loans until you payments while you are still in
graduate, leave school, or change school.
your enrollment status to less than
half-time.

SoFi offers the following repayment options while in school
with additional borrower benefits:
1. Fully Deferred (6.49%)
2. Interest Only Payments (.25% IRR w/ ACH = 6.24%)
3. Immediate Repay (.25% IRR w/ ACH = 6.24%)
4. Upon graduating and entering repayment, you get an
additional benefit (.50% IRR w/ ACH = 5.99%)





• The interest rate is fixed and is often • Private student loans can have
lower than private loans—and much variable interest rates, some greater
lower than some credit card interest than 18%. A variable rate may
rates. View the current interest rates substantially increase the total
on federal student loans. amount you repay.

SoFi offers a FIXED interest rate too:
1. Fully Deferred (6.49%)
2. Interest Only Payments (.25% IRR w/ ACH = 6.24%)
3. Immediate Repay (.25% IRR w/ ACH = 6.24%)
4. Upon graduating and entering repayment, you get an
additional benefit (.50% IRR w/ ACH = 5.99%)





• Undergraduate students with • Private student loans are not
financial need will likely qualify for a subsidized. No one pays the interest
subsidized loan where the on your loan but you.
government pays the interest while
you are in school on at least a half-
time basis.

Graduate Students are not eligible for the Federal Direct Subsidized
Loan.
The Federal Direct Unsubsidized Loan accrues interest (at 6.80%), and
the Federal Direct Graduate PLUS accrues interest (at 7.90%) just like a
SoFi Private Loan (at 6.49%) that you are responsible for paying.





• You don’t need to get a credit check • Private student loans may require an
for most federal student loans established credit record. The cost of
(except for PLUS loans). Federal a private student loan will depend on
student loans can help you establish your credit score and other factors.
a good credit record.

SoFi’s applicants, at minimum, must meet the following eligibility criteria:
1. Attending an eligible institution & program
2. U.S. Citizen or Permanent Resident
3. No adverse credit history

SoFi does not practice tiered-based pricing, we have one rate (6.49%).

Good repayment behavior across all your debts, your credit longevity and utilization
rates and the types of debt you carry determine the health of your credit record.





• You won’t need a cosigner to get a • You may need a cosigner.
federal student loan in most cases.

SoFi does not require a co-signer. You pass our
eligibility criteria, you get a loan. Otherwise, you are
declined.





• Interest may be tax deductible. • Interest may not be tax deductible.

SoFi’s private loan meets the IRS definition of a student
loan. Your ability to deduct your student loan interest is
dependent on legislated income thresholds. Please
consult with your tax adviser as they are best equipped
to counsel you on your particular situation.





• Loans can be consolidated into a • Private student loans cannot be
Direct Consolidation Loan. Learn consolidated into a Direct
about your consolidation options. Consolidation Loan.

SoFi borrowers are eligible to refinance all their student loans
they took out while in school (SoFi-issued or otherwise,
Federal or Private) under the SoFi ReFi Private Consolidation
Loan Product upon completing their studies. Our current ReFi
Private Consolidation Loan Product has a fixed rate of 6.24%
(5.99% w/ auto-pay).





• If you are having trouble repaying • Private student loans may not offer
your loan, you may be able to forbearance or deferment options.
temporarily postpone or lower your
payments.

SoFi offers deferment and forbearance options aligned
with most of the conditions the government issues
such deferments and forbearances. We will work with
our borrowers who experience temporary financial
hardship.





• There are several repayment plans, • You should check with your lender to
including an option to tie your find out about your repayment
monthly payment to your income. options.

SoFi borrowers may request the following non-standard
repayment options while in repayment:
1. Graduated Repayment
2. Income Based Repayment (“IBR”) if borrower meets the
federal requirements for such (i.e. personal hardship test)





• You need to make sure there are no
• There is no prepayment penalty fee.
prepayment penalty fees.

SoFi loans do not have a prepayment penalty.





• You may be eligible to have some • It is unlikely that your lender will
portion of your loans forgiven if you offer a loan forgiveness program.
work in public service. Learn about
our loan forgiveness programs.

SoFi loans do not qualify for the government-sponsored loan
forgiveness programs, however SoFi offers community-based
loan forgiveness where borrowers can make their case to the
alumni and borrower community for such dispensation.





• Free help is available at 1-800-4-FED- • The Consumer Financial Protection
AID and on our websites. Bureau's private student loan
ombudsman may be able to assist
you if you have concerns about your
private student loan.

For additional information about SoFi’s loan products,
please call us at 1-866-357-6342.


Social Finance – Alumni-Funded Student Loan Solution

• Social Finance (SoFi) – A Different
Kind of Loan
• SoFi connects students and alumni
through a dedicated lending pool and
an original social community
approach where students, alumni
and schools all benefit. Alumni earn a
compelling double bottom line
return, students receive a lower loan
rate than their private or federal
options, and both sides benefit from
the connections formed.



• One more look Information current as of 09/06/2012


SoFi - Financing Your Graduate School Education - SoFi and Ivy Exec Webinar

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SoFi - Financing Your Graduate School Education - SoFi and Ivy Exec Webinar