Law Students

Student Loan Refinancing May Be Tempting but Also Risky
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)

student loan debt

Summary: One law school graduate explains how his decision to refinance his student loans for lower interest rates with SoFi was the worst decision he has ever made.

UPenn Law School graduate Josh Garber was looking for options when his student loans were becoming a burden. He had over $250,000 in debt and knew he needed a way out. Garber started looking around and found a better interest rate with online personal finance startup SoFi so he decided to refinance $80,000 of his loans. Garber has a warning for anyone else considering making the same decision he did.


He decided to take advantage of the better interest rate and other features of the program that mirrored federal loan programs such as allowing him to defer payments if they reached a percentage of his income.

Garber claims that SoFi has gotten rid of the loan program he was a part of so every few months he has debt collectors hunting him down to collect repayments he can’t afford. He works as a freelancer on the legal marketplace “UpCounsel” and was part of a panel for “gig economy.”

Garber explained his situation at the Self-Employed Entrepreneurs conference hosted in San Francisco by the California Association for Micro Enterprise Opportunity. He said, “One of my worst regrets is refinancing with a company like SoFi because the federal government has a thing such as income-based repayment.” The interest rate for the federal loan was higher than the rate SoFi offered but he would have been able to set an amount based on his income to make the payments doable.

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!

SoFi claims they never offered a program like the one Garber thought he was signing up for. They stated. “Student loan refinancing through SoFi puts money back in people’s pockets. On average, our members save $22,359 by refinancing their student loans with us over the life of their loan. If a member loses their job, we temporarily pause loan payments up to 12 months, and also provide help in a hob search.” They went on to explain, “We’ve never offered an income-based repayment plan, but we can offer members forbearance for up to 12 months if they can show us economic hardship. So incorrect to say we took away a program.”

When SoFi’s debt collectors become too fierce, he pushes back, reminding them that he is a lawyer. Garber said, “I’m an attorney, I know to complain. I think if I wasn’t I would just be toast at this point.” Garber strongly urges anyone considering refinancing their loans to stay away from lenders outside of the federal program. The interest rate may be better but in the end you could be hurt more.

Do you think student loans are worth it? Tell us in the comments below.

To learn more about student loans, read these articles:




ASSOCIATE ATTORNEY - Infrastructure, Major Projects, Public-Private Partnerships and Alternative Del

USA-NY-New York City

ASSOCIATE ATTORNEY Infrastructure, Major Projects, Public-Private Partnerships and Alternative De...

Apply now

Civil Litigation Associate

USA-NY-New York City

The Janey Law Firm LLP serves as of-counsel to Robert C. Gottlieb & Associates PLLC, a 38-year-old l...

Apply now

Lawyer / Attorney

USA-LA-New Orleans

Transcendent Law Group is looking for a attorney. The firm needs someone who has trial and litigatio...

Apply now

Probate & Estate Paralegal


Probate and Estate Paralegal Job Description Established Tampa law firm seeks a full time Prob...

Apply now




Search Now

BCG Attorney Search In-House Counsel

USA-CA-Los Angeles

BCG Attorney Search In-House Counsel We are a Legal Employment Company located in California with o...

Apply Now

FDA Regulatory Attorney


Boston office of a BCG Attorney Search Top Ranked Law Firm seeks FDA regulatory attorney with 3-4 ye...

Apply Now

Foreclosure/Bankruptcy Associate Attorney


Temecula office of our client seeks associate attorney with preferably 2 years of experience working...

Apply Now


To Top