Social Finance, Inc.

Text (OCR of the scan at left; may contain errors)

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IN THE MATTER OF

SOCIAL FINANCE, INC., AND SOFI LENDING CORP., BOTH D/B/A SOFI

CONSENT ORDER, ETC. IN REGARD TO ALLEGED VIOLATIONS OF SECTION 5 OF THE FEDERAL TRADE COMMISSION ACT

Docket No. C-4673; File No. 162 3197 Complaint, February 22, 2019 – Decision, February 22, 2019

This consent order addresses Social Finance, Inc.’s and SoFi Lending Corp.’s savings claims regarding consumers refinancing their student loans with SoFi. The complaint alleges that SoFi makes savings claims that, as detailed below, misrepresent how much money students have saved, will save, or will likely save by refinancing their student loans with SoFi. The consent order prohibits SoFi from misrepresenting that consumers who obtain a credit product have saved, will save, or will likely save money, or a specific amount of money, over the lifetime of a credit product or over any other time period (e.g. monthly), including by representing that the amount of money saved over a specific time period will be zero when consumers will instead pay more money over that specific time period.

Participants

For the Commission: Patrick Roy and Evan Zullow.

For the Respondents: John Direnfeld, Sulina Gabale, Antony Kim, and Garret Rasmussen, Orrick, Herrington & Sutcliffe, LLP.

COMPLAINT

The Federal Trade Commission, having reason to believe that Social Finance, Inc., a corporation, also doing business as SoFi, and SoFi Lending Corp., a corporation, also doing business as SoFi (collectively, “Respondents” or “SoFi”) have violated the provisions of the Federal Trade Commission Act, and it appearing to the Commission that this proceeding is in the public interest, alleges:

1. Respondent Social Finance, Inc., also doing business as SoFi, is a Delaware corporation with its principal office or place of business at One Letterman Drive, Building A, San Francisco, California 94129.

2. Respondent SoFi Lending Corp., also doing business as SoFi, is a California corporation with its principal office or place of business at 375 Healdsburg Avenue, Suite 280, Healdsburg, CA 95448. SoFi Lending Corp. is a wholly owned subsidiary of Respondent Social Finance, Inc.

3. Respondents have marketed, advertised, offered, and originated a variety of credit products to consumers, including unsecured loans for the purposes of refinancing consumers’

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student loans. Respondents have disseminated or have caused to be disseminated advertisements promoting such student loan refinances.

4. The acts and practices of Respondents alleged in this complaint have been in or affecting commerce, as "commerce" is defined in Section 4 of the Federal Trade Commission Act.

Respondents' Claims Regarding the Average Savings Achieved by Consumers

5. Since at least April 2016, Respondents' Internet, television, and direct mail advertisements have represented that consumers who obtain a student loan refinance from Respondents have saved, on average, specific large amounts of money over the lifetime of their loans or each month.

6. In fact, in numerous instances, Respondents' representations inflate the average savings consumers have actually achieved - sometimes even doubling the actual savings - by selectively excluding large categories of consumers. For example, in numerous instances, Respondents have promoted average lifetime savings amounts in their advertisements that exclude all consumers whose loans with Respondents have a longer term than the previous student loans that consumers refinanced. Most of these excluded consumers actually pay more money - thousands of dollars, on average - as a result of their loans with Respondents over the lifetime of those loans.

7. Additionally, in numerous instances, Respondents have promoted average monthly savings amounts in their advertisements that exclude all consumers, on the flip side, whose loans with Respondents have a shorter term than the previous student loans that the consumers refinanced. Most of these excluded consumers actually pay more money each month - hundreds of dollars, on average - as a result of their loan with Respondents.

8. In numerous instances, Respondents' Internet advertisements have made prominent, unqualified claims regarding the average lifetime or monthly savings achieved by consumers who have obtained a student loan refinance from Respondents. For example, these advertisements, copies of which are attached as Exhibits A through E, have included the following statements:

You gave it your all to get your degree.

Now save some money on it.

Average lifetime savings:

$18,936 GET STARTED > SoFi

Exhibit A

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Refi your Student Loans today Members save an average of $19k SoFi FIND MY RATE > SoFi Lending Corp. NMLS #1121636. See SoFi.com/eligibility for details

Exhibit B

Refinancing student loans saves $22,359 on average.

FIND YOUR RATE > SoFi Loans originated by SoFi Lending Corp. CFL #6054612 Terms and conditions apply see SoFi.com/legal

Exhibit C

SOCIAL FINANCE, INC.

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Start saving on your student loans.

Average monthly savings:

$292.

FINISH YOUR APP >

SoFi

SoFi Lending Corp. NMLS #1121639. See SoFi.com/eligibility for details.

Exhibit D

Saving our members an average of $316/month.

FIND MY RATE

SoFi Proud Partner of the Florida Gators SoFi Lending Corp. NMLS#1121639. Terms and conditions apply at SoFi.com/Legal

Exhibit E

9. Respondents have made similar claims in television advertisements. For example, the visual component of a television advertisement broadcast during the fall 2017 Major League

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Baseball playoffs, attached as Exhibit F, prominently represents the following about consumers' average lifetime savings:

Save $22,359 on average.

TrySoFi.com

Exhibit F

10. Respondents have also made similar claims in their direct mail advertisements. A copy of one such advertisement is attached as Exhibit G.

a. The front of the first page of the direct mailer makes the following representations:

How much can you save? SoFi customers average over $18,936^ in savings during the lifetime of their loan by refinancing. That's cash in your pocket — available for investing, vacations, buying a home, whatever.

Exhibit G at 2

b. At the bottom of the reverse side of this page – buried beneath descriptions of the frequently asked questions, terms and conditions, and prescreen opt-out notices – the mailer contains the following fine print disclaimer:

^Lifetime Savings Average savings calculation is based on all SoFi members who refinanced their student loans between 1/1/15 and 12/31/15. The savings calculation is derived by taking the estimated lifetime cost of existing student loans minus the lifetime cost of SoFi loans upon refinancing for SoFi members who refinanced their student loans. SoFi's average savings methodology for student loan refinancing assumes 1) members' interest rates do not change over time (projections for variable rates are static at the time of the refinancing and do not reflect actual movement of rates in the future), 2) members make all payments on time, 3) members do not prepay loans, 4) members take advantage of AutoPay, which enables them to lower the APR of their loan by 0.25%. SoFi's average savings methodology for student loan refinancing excludes refinancings in which 1) members elect SoFi loans with longer maturity than their existing student loans, 2) the term length of the SoFi loan is greater than 25 years, 3) the member did not provide correct or complete information regarding his or her outstanding balance, loan type, APR, or current monthly payment. SoFi excludes the above refinancings in an effort to maximize transparency on how we calculate our average savings amount and to minimize the risk of member data error skewing the average savings amount.

Exhibit G at 3

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This fine print disclaimer, in a buried provision, reveals that consumers had not, in fact, saved the average lifetime amount prominently promoted on the front of this direct mailer. Instead, it acknowledges on the fifth and sixth lines of fine print text that, among other things, "SoFi's average savings methodology for student loan refinancing excludes refinancings in which . . . members elect SoFi loans with longer maturity than their existing student loans."

11. Consumers who view one of Respondents' Internet or television advertisements, or who receive one of Respondents' direct mail advertisements, can apply for prequalification by visiting one of Respondents' website landing pages. In numerous instances, these landing pages again prominently promote the average savings amounts represented to consumers in Respondents' advertisements. Examples of such landing pages are attached as Exhibits H and I. The following statements have been featured at or near the top of these landing pages:

Student Loan ReFi Mortgage Personal Loan Wealth Student Loan Refinancing Members save $18,936² on average when they refinance student loans. LEARN MORE FIND MY RATE

Exhibit H

LEADING STUDENT LOAN REFINANCING PROVIDER

We've refinanced the most student debt in the U.S., so saving you money on student loans is kind of our thing. In fact, members who refinance with us save an average of $288²¹ a month—and $22,359² total. SoFi is one of few lenders that handles federal and private student loan consolidation. Plus, as a member, you'll have access to a whole lot of perks: career strategy services, customer support seven days a week, invites to SoFi events, and more. Get started by checking your rates online in just two minutes.

Exhibit I

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12. To the extent Respondents' websites reveal that the prominently-touted average savings are not actually the average savings, that information is buried.

a. For example, if consumers who view the landing page in Exhibit I above notice and click on the small number "2f" that follows the statement "members who refinance with us save an average of $288," they have been directed to a separate webpage titled "Disclosures & Disclaimers" – an example of which is attached as Exhibit J. This webpage contains a lengthy list of buried disclaimers. Among those many disclaimers is the following:

2f. Member Monthly Savings – Average monthly savings calculation of $288 is based on all SoFi members who refinanced their student loans between 8/16/2012 and 6/30/2016. The calculation is derived by averaging the monthly savings of SoFi members, which is calculated by taking the monthly student loan payments prior to refinancing minus the monthly student loan payments after refinancing with SoFi. SoFi's monthly savings methodology for student loan refinancing assumes 1) members' interest rates do not change over time (PROJECTIONS FOR VARIABLE RATES ARE STATIC AT THE TIME OF REFINANCING AND DO NOT REFLECT ACTUAL MOVEMENT OF RATES IN THE FUTURE) 2) members make all payments on time. SoFi's monthly savings methodology for student loan refinancing excludes refinancings in which 1) members elect a SoFi loan with a shorter term than their prior student loan term(s) 2) the term length of the SoFi member's prior student loan(s) was shorter than 5 years or longer than 30 years 3) the SoFi member did not provide correct or complete information regarding his or her outstanding balance, loan type, APR, or current monthly payment. SoFi excludes the above refinancings in an effort to maximize transparency on how we calculate our monthly savings amount and to minimize the risk of member data error skewing the monthly savings amount.

Exhibit J at 2

This disclaimer, in a buried provision, reveals that consumers had not, in fact, saved the average monthly savings amount prominently promoted on the landing pages and Respondents' other advertisements. Instead, it acknowledges on the sixth and seventh lines of text that, among other things, "SoFi's monthly savings methodology for student loan refinancing excludes refinancings in which . . . members elect a SoFi loan with a shorter term than their prior student loan term(s)."

b. If consumers who view the landing page in Exhibit I above notice and click on the small number "2" in the statement "members who refinance with us save an average . . . $22,359² total," they have also been directed to the separate webpage titled "Disclosures & Disclaimers" – attached as Exhibit J. Among the lengthy list of buried disclaimers is the following:

2. Member Lifetime Savings – Average member lifetime savings calculation of $22,359 is based on all SoFi members who refinanced their student loans between 8/16/2012 and 6/30/2016. The savings calculation is derived by taking the estimated lifetime cost of existing student loans minus the lifetime cost of SoFi loans upon refinancing for SoFi members who refinanced their student loans. SoFi's lifetime savings methodology for student loan refinancing assumes 1) members' interest rates do not change over time (PROJECTIONS FOR VARIABLE RATES ARE STATIC AT THE TIME OF REFINANCING AND DO NOT REFLECT ACTUAL MOVEMENT OF RATES IN THE FUTURE) 2) members make all payments on time 3) members make monthly payments for the full duration of their loan 4) members take advantage of AutoPay, which enables them to lower the APR of their loan by 0.25%. SoFi's average savings methodology for student loan refinancing excludes refinancings in which 1) members elect SoFi loans with longer maturity than their existing student loans 2) the term length of the member's original student loan(s) is greater than 30 years 3) the member did not provide correct or complete information regarding his or her outstanding balance, loan type, APR, or current monthly payment. SoFi excludes the above refinancings in an effort to maximize transparency on how we calculate our average lifetime savings amount and to minimize the risk of member data error skewing the average lifetime savings amount.

Exhibit J at 1

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This disclaimer, in a buried provision, reveals that consumers had not, in fact, saved the average lifetime savings amount prominently promoted on the landing pages and Respondents' other advertisements. Instead, it acknowledges on the seventh and eighth lines of text that, among other things, "SoFi's average savings methodology for student loan refinancing excludes refinancings in which ... members elect SoFi loans with longer maturity than their existing student loans."

13. From the landing pages described in Paragraph 11 above, in many instances consumers can apply for prequalification for a loan by clicking on a button or link, such as the "Find My Rate" button in Exhibit H above.

14. After consumers click on the button or link, they can apply for prequalification. In order to apply for prequalification, in numerous instances, consumers have had to create an online account with Respondents, and then fill out an online application. In numerous instances, the application has required that consumers enter a variety of personal information, including name, contact information, date of birth, income, citizenship status, employment information, and educational history.

15. After consumers are prequalified for a loan online, in numerous instances Respondents' website directs consumers to a webpage alerting them that they prequalify and displaying the available loan options for which they prequalify (based on information consumers can input regarding their current student loans). An example of such a webpage is attached as Exhibit K. As shown in Exhibit K, this webpage provides the consumer's estimated individual savings for a select group of loans, while excluding the individual estimated savings or losses for other available loans, as discussed below:

a. To the extent a consumer seeking a fixed rate loan would pay more over the lifetime of a loan or each month, the webpage does not inform the consumer how much more money the consumer would pay. Instead, it falsely states that the consumer's lifetime or monthly savings would be "$0.00."

b. To the extent a consumer seeking a variable rate loan would pay more each month, the website does not inform the consumer how much more money the consumer would pay. Instead, it falsely states that the consumer's monthly savings would be "$0.00."

16. Respondents' prominent representations, in Paragraphs 8 through 11 above, that consumers have saved, on average, large amounts of money over the lifetime of their loans or each month are false. In fact, these representations significantly inflate the average savings consumers have actually achieved – sometimes even doubling the actual savings – by selectively excluding large categories of consumers. Further, none of Respondents' advertisements, buried disclaimers, or application information, as described in Paragraphs 8 through 15 above, shows consumers who were exposed to Respondents' deceptive savings claims the actual, dramatically-lower average lifetime or monthly savings Respondents' consumers have received. In fact, as

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noted above, most of the consumers excluded from Respondents' savings claims pay more money over the relevant time periods – losing thousands of dollars (on average) over the lifetime of their loans, or paying hundreds of dollars more (on average) in monthly payments.

FEDERAL TRADE COMMISSION ACT VIOLATION Count I False, Misleading, or Unsubstantiated Claims Regarding the Amount of Money Saved by Consumers

17. In connection with the advertising, marketing, promotion, or offering of student loans, Respondents have represented, directly or indirectly, expressly or by implication, that:

a. Consumers who obtain a refinance of student loans from Respondents have saved a specific, large average amount over the lifetime of these loans, such as “$18,936” or “$22,359”;

b. Consumers who obtain a refinance of student loans from Respondents have saved a specific, large average monthly amount, such as “$292” or “$316”; and

c. Consumers who prequalify for a refinance of student loans from Respondents will not lose money over the lifetime of one or more of Respondents’ refinance loans, or each month.

18. In numerous instances, the representations set forth in Paragraph 17 were false or misleading, or were not substantiated at the time the representations were made.

19. Therefore, Respondents’ practices constitute deceptive acts or practices in or affecting commerce in violation of Section 5(a) of the FTC Act, 15 U.S.C. §45(a).

THEREFORE, the Federal Trade Commission this twenty-second day of February 2019, has issued this Complaint against Respondents.

By the Commission.

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Complaint

Exhibit C

Refinancing student loans saves $22,359 on average.

FIND YOUR RATE >

SoFi

Loans originated by SoFi Lending Corp. CFL #6054612 Terms and conditions apply see SoFi.com/legal

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Exhibit E

Saving our members an average of $316/month.

FIND MY RATE

SoFi Proud Partner of the Florida Gators SoFi Lending Corp. NMLS#21936. Terms and conditions apply at SoFi.com/Legal

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Exhibit F

Save $22,359 on average.

TrySoFi.com

SOCIAL FINANCE, INC.

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Exhibit G

SoFi | One Letterman Drive, Building A | Suite 4700 | San Francisco, CA 94129

Don't Bank SoFi

PRSRT STD U.S. POSTAGE PAID CAROL STREAM, IL PERMIT NO. 35

Refinance student loans with lower rates!

Variable Rates as low as 2.14% APR*

Fixed Rates as low as 3.50% APR* *With AutoPay, see details inside.

0416-SL-OE-A

| MERKLE | Job Name: 0416_SL_OE_A Description: SLR April OEA Modification: February 26, 2016 1:52 PM | | | | Prints: 3/0 (RRD_FG0222 (SoFi Navy), Black, RRD_FG0230 (SoFi Light Blue)) Size: #10 - 11" x 6.1523" (Flat) 4.125" x 9.5" (Finished) Stock: 70# Gloss Window Size: 4.25"x .375" FL: .625" FB: .625" | | | Release Date | Acct. | Writer | Creative | Studio K. Condron |

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SoFi About SoFi You'll enjoy savings as a customer and even more as a member of the SoFi community! • SoFi has already refinanced over $8 billion in federal and private student loan debt • If you become unemployed, you may be eligible for deferred payments or job search assistance.* • Access to our career support center that includes interview coaching, resume review and negotiating tactics.* • We even enable qualified entrepreneurs to start new companies while deferring payments for 6 months.* • There are no SoFi loans have no fees and no prepayment penalties.

*Please see SoFi.com for terms and conditions. Unemployment benefits offered for twelve-month increments, and capped at 12 months, in aggregate, over the life of the loan. Refinance your student loans and start saving today at SoFi.com/XXXXXXXXXXXX

SLIT & NEST SLIT & NEST

SoFi Reduce the Cost of Your Student Debt Refinance, make one monthly payment, save thousands Apply online at SoFi.com/XXXXXXXXXXX Confirmation #: S0416X-<12345678> Limited-time offer ends XX/XX/XXXX

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Firstname Lastname 12345 Any Street Any City, ST 12345-1234 [illegible]

FOLD Dear XXXXX, Have you seen what many financial experts are saying about student loans like yours? You can save money by refinancing — and enjoy the convenience of combining your student loans into one low monthly payment. Plus, you're already pre-selected for a loan.

Apply in less than two minutes. Save thousands You can choose to reduce your monthly payment now or save more money over the long term, and sometimes accomplish both, depending on your debt. There are no application or origination fees and no pre-payment penalties. How much can you save? SoFi customers average over $18,936* in savings during the lifetime of their loan by refinancing. That's cash in your pocket — available for investing, vacations, buying a home, and whatever.

We refinance both federal and private student loans. Apply today! SoFi is not "too good to be true." We reduce student loan costs for thousands of working professionals like you every day. Apply online today to start saving money on your student debt.

Sincerely, Mike Cagney Mike Cagney Co-Founder & CEO P.S. You're already pre-selected for a loan, so visit SoFi.com/XXXXXXXXXXX by XX/XX/XXXX.

SoFi's Current Rates Multiple loan terms available Variable Rates with AutoPay 2.14% APR* ranging up to 6.19% APR* Fixed Rates with AutoPay 3.50% APR* ranging up to 7.99% APR* Apply online at SoFi.com/XXXXXXXXXXX Confirmation #:

S0416X-<12345678> Offer ends XX/XX/XXXX FOLD

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FOLD FOLD

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*See reverse for important terms. See enclosure for more information about SoFi. Notice: SoFi's Refinance Loan is a private loan. Understand that when you refinance federal loans, you forfeit certain flexible repayment options. If you expect to incur financial hardship that would affect your ability to repay, you should consider federal consolidation loan options.

You can choose to stop receiving "prescreened" offers of credit from this and other companies by calling toll-free 1-888-5-OPTOUT (1-888-567-8688). See PRESCREEN AND OPT-OUT NOTICE on the other side for more information about prescreened offers.

0416-SL-LTR-A [illegible]

MERKLE [illegible]

SOCIAL FINANCE, INC.

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SoFi What financial experts are saying about SoFi "They're offering something those traditional banks aren't offering, which is an enhanced approach to lending through a combination of better rates, example application process, and exceptional customer service." YAHOO! FINANCE "SoFi stands for 'social finance' — a key ingredient in the do-well-by-doing-good aspect of their mission. Save in the fortune or interest you pay to refi your college or grad student loans."

THE HUFFINGTON POST "To distinguish itself from banks, SoFi smothers customers with personalized service. Its 100,000 or so borrowers are referred, invited to parties thrown by the firm."

The Economist You will have great things to say, too.

Contact us today! SoFi.com/XXXXXXXXXXX SLIT & NEST SLIT & NEST SoFi Student Loan Refinance — Frequently Asked Questions 3.75"

What is a direct consolidation loan? A Direct Consolidation Loan is a government program that allows you to combine multiple federal education loans into a single loan. The resulting interest rate is a weighted average of your prior loan rates. Refer to www.sofi.com/consolidate-student-loans-vs-refinance for more information.

What is the AutoPay discount? The AutoPay discount is a 0.25% interest rate reduction on loans in which you authorize the loan servicer to automatically deduct monthly payments from any bank account you choose. Can I refinance previously consolidated loans with SoFi? Yes. Whether you previously consolidated federal loans through the government's Direct or FFEL consolidation programs or you did a consolidation loan with a private lender, you can still apply to refinance the consolidated loan through SoFi just the way you could with any other federal or private loan.

When is the best time to refinance? The earlier you refinance to a lower loan rate, the more money you will save. Even if you are in your grace period, interest accrues for unsubsidized federal loans. SoFi will honor any existing grace period of the loans you refinance with us.

Who should refinance? Refinancing is a great solution for working graduates who have high-interest, unsubsidized Direct Loans, Graduate PLUS loans, and/ or private loans. Federal loans do carry some special benefits, for example, public service forgiveness, income-based repayment, and economic hardship programs, that may not be accessible to you after you refinance. Check out this blog post that provides more information: When to Consolidate Federal and Private Loans through Refinancing (www.sofi.com/blog/student-loan-smarts-consolidate-federal-privateloans). Or, call us for a free consultation about your particular situation. Am I eligible for a SoFi Refinance loan? To be eligible for a SoFi loan, you must be a U.S. citizen or permanent resident, reside in one of our eligible states, and have graduated from a selection of Title IV accredited university or graduate programs. Loan eligibility also depends on a number of additional factors, such as your credit score, your income, and employment status. Please review our Eligibility Criteria or call us for further details. Is it possible to refinance both federal and private student loans? Yes, you can refinance both federal loans and private loans with SoFi. What is the minimum and maximum amount I can borrow with SoFi? The minimum amount is $5,000 (and may be higher in certain states due to legal requirements). The maximum amount is the full balance of your qualified education loans.

FOLD FOLD Check online to see additional FAQs 3.75"

Get your rates and see what you'll save in less than two minutes. Visit SoFi.com/XXXXXXXXXXX today! Terms and conditions apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS PROSPECTIVELY BASED ON MARKET CONDITIONS AND BORROWER ELIGIBILITY. To qualify, a borrower must be a U.S. citizen or permanent resident and meet SoFi's underwriting requirements. SoFi loans not offered to residents of Nevada. Other state restrictions may apply. This information is current as of March 14, 2016, and is subject to change based on market conditions and borrower eligibility. SoFi loans are originated by SoFi Lending Corp. (dba SoFi), California Finance Lender #6054612. NMLS #1121636. PRESCREEN AND OPT-OUT NOTICE: You received this "prescreened" offer of credit because we used information from your credit report to determine that you satisfied certain criteria for this offer. This offer is not guaranteed if you no longer meet the criteria used to screen you for this offer, you do not meet additional credit criteria needed to be credit worthy for this offer or you add a joint applicant. We are allowed by law to prescreen you for these offers. However, if you do not want to receive prescreened offers of credit from us and other companies, you may exercise the right to not be included on prescreened lists by calling the consumer reporting agencies' toll-free at 1-888-5-OPT-OUT (1-888-567-8688); or writing to: Equifax Options, P.O. Box 740123, Atlanta, GA 30374-0123, TransUnion, Opt Out Request, P.O. Box 505, Woodlyn, PA 19094-0505, Experian Consumer Opt Out, P.O. Box 919, Allen, TX 75013. Refinance Loans FOLD FOLD Your existing student loan(s) must total a minimum of $5,000 to be eligible for refinancing. Minimum loan amount may be higher in specific states due to legal requirements. Fixed rates from 3.50% APR (with AutoPay) to 7.99% APR (without AutoPay) depending on loan term selected, your credit and other factors. Variable rates currently from 2.14% APR (with AutoPay) to 6.19% APR (without AutoPay). Interest rates on 5, 7, and 10-year terms are capped at 8.95% APR, 15 and 20-year terms are capped at 9.95% APR to the extent permitted under law. Interest rates on variable-rate loans vary based on loan term selected, your credit and other factors. Variable-rate caps may be lower in some states due to legal requirements. To check your eligibility to qualify for a SoFi loan, SoFi rate ranges are current as of March 14, 2016 and are subject to change based on market conditions and borrower eligibility. Variable 2.14% APR (with AutoPay) assumes current 1-month LIBOR rate of 0.44% plus 1.70%. Few applicants qualify for the lowest rate. To qualify for the lowest rate, you must have excellent credit and meet other conditions. Your actual rate will be within the range of rates listed above and will depend on the term you select and a variety of factors, including credit usage and history, years [illegible] For the SoFi 1-month LIBOR index will adjust monthly and the loan payment will be re-amortized and changed monthly. APRs for variable-rate loans may increase after origination if the LIBOR index increases. The SoFi 0.25% AutoPay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic, monthly deduction from a savings or checking account. This benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. 3.5"

^Lifetime Savings Average savings calculation is based on all SoFi members who refinanced their student loans between 1/1/15 and 12/31/15. The savings calculation is derived by taking the estimated total lifetime cost of existing student loans minus the lifetime cost of SoFi loans upon refinancing for SoFi members who refinanced their student loans. SoFi's average savings methodology for student loan refinancing assumes 1) member's interest rates do not change over time (projections for variable rates are static at the time of the refinancing and do not reflect actual movement of rates in the future), 2) members make all payments on time, 3) members do not prepay loans, 4) members take advantage of AutoPay, which enables them to lower the APR of their loan by 0.25%. SoFi's average savings methodology for student loan refinancing excludes refinancings in which 1) members elect SoFi loans with longer maturity than their existing student loans, 2) the term length of the SoFi loan is greater than 25 years, 3) the member did not provide correct or complete information regarding his or her outstanding balance, loan type, APR, or current monthly payment. SoFi excludes the above refinancings in an effort to maximize transparency on how we calculate our average savings amount and to minimize the risk of member data error skewing the average savings amount. © 2016, Social Finance, Inc. All rights reserved.

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SOFI LENDING CORP. REFI EDUCATION LOAN APPLICATION AND SOLICITATION DISCLOSURE VARIABLE RATE LOAN Loan Interest Rate & Fees Your starting interest rate will be between 2.39% and 6.19% After the starting rate is set, your rate will then vary with the market. Your starting interest rate (upon approval) The starting interest rate you pay will be determined after you apply. It will be based on your credit history and other factors (co-signer credit, term of your loan, etc.). If approved, we will notify you of the rate you qualify for within the stated range. Your interest rate during the life of the loan Your rate is variable. This means that your rate could move lower or higher than the rates on this form. The variable rate is based upon the 1-month LIBOR rate (as published in The Wall Street Journal). For more information on this rate, see the Reference Notes. Although the interest rate will vary after you are approved, the interest rate will never exceed 8.95% for the 5-year, 7-year, and 10-year terms. For the 15-year and 20-year term product, the interest rate will never exceed 9.95% (the maximum rates for these loans). Loan Fees Application Fee: $0 Origination Fee: 0% — the fee that we charge to make this loan Loan Guarantee Fee: 0% Repayment Fee: 0% Late Charge: 4% of the amount of the past due payment or $5, whichever is less Returned Check Charge: $10 Loan Cost Example The total amount you will pay for this loan will depend on the actual amount required to pay off the loans you select for consolidation. | Repayment Option | Amount Provided (amount paid to others on your behalf) | Interest Rate (highest possible starting rate) | Loan Term (how long you have to pay off the loan) | Total Paid Over Entire Loan Term (includes associated fees) | | MAKE FULL PAYMENTS Pay both the principal and interest | $10,000.00 | 5.190% | 5 years starting after your first payment | $11,375.04 | | MAKE FULL PAYMENTS Pay both the principal and interest | $10,000.00 | 5.320% | 7 years starting after your first payment | $11,999.20 | | MAKE FULL PAYMENTS Pay both the principal and interest | $10,000.00 | 5.570% | 10 years starting after your first payment | $13,064.82 | | MAKE FULL PAYMENTS Pay both the principal and interest | $10,000.00 | 5.940% | 15 years starting after your first payment | $15,131.14 | | MAKE FULL PAYMENTS Pay both the principal and interest | $10,000.00 | 6.190% | 20 years starting after your first payment | $17,458.45 | About this example The repayment example is based on the Loan Amount and Loan Term shown in the above table. It is based on the highest starting rate currently charged and associated fees. The example assumes that the borrower begins repayment one month after disbursement.

Federal Loan Alternatives and Disclosure Regarding Benefits | Loan Program | Current Interest Rates by Program Type | | | PERKINS for Students | 5.00% fixed | | | DIRECT LOANS for Students | 4.29% fixed 4.29% fixed 5.84% fixed | Undergraduate Subsidized Undergraduate Unsubsidized Graduate Unsubsidized | | PLUS for Graduate/ Professional Students | 6.84% fixed | Federal Direct PLUS | | PLUS for Parents | 6.84% fixed | Federal Direct PLUS | You may qualify for federal education loans.

For additional information, contact your school's financial aid office or the Department of Education at studentaid.ed.gov. • Private education loans are not eligible to be included in a Federal Direct Consolidation Loan. • You may be able to consolidate your outstanding federal loans into a Federal Direct Consolidation Loan. The current interest rate for a Federal Direct Consolidation Loan is the weighted average of the interest rates being consolidated rounded up to the nearest one-eighth of one percent. • Think carefully before taking out a SoFi Lending Corp. Refi Education Loan to pay off your federal loans. If you refinance your federal loans through this SoFi Lending Corp. Refi Education Loan, you will not be able to select income-based repayment or other flexible payment plans that are available to federal student loan borrowers. In addition, federal student loans offer deferment and forbearance options that are not available to you if you take out a SoFi Lending Corp. Refi Education Loan. • See studentaid.ed.gov/types/loans/federal-vs-private for a description of the benefits and repayment options available to federal student loan borrowers. Next Steps 1. Find out about other loan options The Federal Direct Consolidation Loan may have student loan benefits and terms not detailed on this form. Contact your school's financial aid office or visit the Department of Education's website at www.loanconsolidation.ed.gov for more information about other consolidation loans. 2. To apply for this loan, complete the application If you are approved for this loan, the loan terms will be available for 30 days (terms will not change during this period, except as permitted by law).

0416-SL-INS2-A

Reference Notes Disclosure Regarding Federal Loans See your loan agreement for important disclosures about the consequences of refinancing federal student loans in this SoFi Lending Corp. Refi Education Loan. Variable Interest Rate • This loan has a variable interest rate that is based on a publicly available index, the 1-month London Interbank Offered Rate (LIBOR). Your rate will be calculated each month by adding a margin between 1.95% and 5.25% to the 1-month LIBOR. • The rate will not increase more than once per month. The maximum rate for your loan is 8.95% if your loan term is five, seven, or 10 years or 9.95% if your loan term is 15 or 20 years. AutoPay Discount • If you make monthly principal and interest payments by an automatic, monthly deduction from a savings or checking account, the Variable Rate will be reduced by one-quarter of one percent (0.25%) for so long as you continue to make such automatic, electronic monthly payments. This benefit is suspended during periods of deferment and forbearance. Borrower Eligibility Criteria • Must be a U.S. citizen or permanent resident alien without conditions and with proper evidence of eligibility. • Must be 21 or older at the time of loan application. • Must have graduated from a SoFi-eligible school and program of study. • Must reside in a state in which SoFi is authorized to lend. Co-Signers • Must be 21 or older at the time of loan application. Bankruptcy Limitations • If you file for bankruptcy you may still be required to pay back this loan. More information about loan eligibility and repayment deferment or forbearance options is made available in your agreement.

SoFi SOFI LENDING CORP.

California Finance Lender License No. 6054612 One Letterman Drive, Building A Suite 4700 San Francisco, CA 94129

| MERKLE | Job Name: 0416_SL_INS2_A Description: SLR April Insert 2 Modification: March 15, 2016 3:01 PM | | | | Prints: 1/1 (Black) Size: 11" x 8.5" (Flat) 8.5" x 3.6875" (Folded) Stock: 60# White Offset Folds: F1: 3.667" F2: 7.4375" | | | Release Date | Acct. | Writer | Creative | Studio K. Condron | |

SOCIAL FINANCE, INC.

Complaint

SOFI LENDING CORP. REFI EDUCATION LOAN FIXED RATE APPLICATION AND SOLICITATION DISCLOSURE

Loan Interest Rate & Fees Your interest rate will be between 3.75% and 7.99% After the rate is set, it will be fixed for the entire term of the loan.

Your interest rate (upon approval) The interest rate you pay will be determined after you apply. It will be based upon your credit history, the loan term you select, and other factors. If approved, we will notify you of the rate you qualify for, which will be between 3.75% and 7.99%.

Your interest rate during the life of the loan Your rate is fixed. This means that your interest rate will never change during the life of your loan. For more information on this rate, see the Reference Notes.

Your interest rate will not vary after you have been approved.

Loan Fees Application Fee: $0 Origination Fee: 0% — the fee that we charge to make this loan Loan Guarantee Fee: 0% Repayment Fee: 0% Late Charge: 4% of the amount of the past due payment or $5, whichever is less Returned Check Charge: $10

Loan Cost Examples The total amount you will pay for this loan will depend on the actual amount required to pay off the loans you select for consolidation and the loan term that you select from the options: 5, 7, 10, 15, or 20 years.

| Repayment Option | Amount Provided (amount paid to others on your behalf) | Interest Rate (highest possible rate) | Loan Term (how long you have to pay off the loan) | Total Paid Over Entire Loan Term (includes associated fees) | | MAKE FULL PAYMENTS Pay both the principal and interest | $10,000.00 | 6.240% | 5 years starting after your first payment | $11,666.76 | | MAKE FULL PAYMENTS Pay both the principal and interest | $10,000.00 | 6.740% | 7 years starting after your first payment | $12,571.36 | | MAKE FULL PAYMENTS Pay both the principal and interest | $10,000.00 | 7.250% | 10 years starting after your first payment | $14,088.12 | | MAKE FULL PAYMENTS Pay both the principal and interest | $10,000.00 | 7.740% | 15 years starting after your first payment | $16,932.65 | | MAKE FULL PAYMENTS Pay both the principal and interest | $10,000.00 | 7.990% | 20 years starting after your first payment | $20,059.63 |

About these examples The repayment examples are based on the Loan Amounts and Loan Terms shown in the above table. The Interest Rates shown are the highest possible for each Loan Term. The examples assume that the borrower begins repayment one month after disbursement.

Federal Loan Alternatives and Disclosure Regarding Benefits | Loan Program | Current Interest Rates by Program Type | | | PERKINS for Students | 5.00% fixed | | | DIRECT LOANS for Students | 4.29% fixed 4.29% fixed 5.84% fixed | Undergraduate Subsidized Undergraduate Unsubsidized Graduate Unsubsidized | | PLUS for Graduate/ Professional Students | 6.84% fixed | Federal Direct PLUS | | PLUS for Parents | 6.84% fixed | Federal Direct PLUS |

You may qualify for federal education loans.

For additional information, contact your school's financial aid office or the Department of Education at studentaid.ed.gov. • Private education loans are not eligible to be included in a Federal Direct Consolidation Loan. • You may be able to consolidate your outstanding federal loans into a Federal Direct Consolidation Loan. The current interest rate for a Federal Direct Consolidation Loan is the weighted average of the interest rates being consolidated rounded up to the nearest one-eighth of one percent. • Think carefully before taking out a SoFi Lending Corp. Refi Education Loan to pay off your federal loans. If you refinance your federal loans through this SoFi Lending Corp. Refi Education Loan, you will not be able to select income-based repayment or other flexible repayment plans that are available to federal student loan borrowers. In addition, federal student loans offer deferment and forbearance options that are not available to you if you take out a SoFi Lending Corp. Refi Education Loan. • See studentaid.ed.gov/types/loans/federal-vs-private for a description of the benefits and repayment options available to federal student loan borrowers.

Next Steps 1. Find out about other loan options The Federal Direct Consolidation Loan may have student loan benefits and terms not detailed on this form. Contact your school's financial aid office or visit the Department of Education's website at www.loanconsolidation.ed.gov for more information about Federal Direct Consolidation Loans. 2. To apply for this loan, complete the application If you are approved for this loan, the loan terms will be available for 30 days (terms will not change during this period, except as permitted by law).

0416-SL-LN52-A

Reference Notes Disclosure Regarding Federal Loans • See your loan agreement for important disclosures about the consequences of refinancing federal student loans in this SoFi Lending Corp. Refi Education Loan. Interest Rate • Your interest rate will depend on the loan term that you select. Repayment Options • This SoFi Lending Corp. Refi Education Loan does not have a grace period. Monthly payments of principal and interest begin the month after the loan proceeds are disbursed unless we grant you a deferment and align your repayment begin date to the expiration of the grace period on the federal student loans that you are refinancing with us. You understand that interest will continue to accrue during this deferment period and that accrued interest will be capitalized at the end of this deferment period. AutoPay Discount • If you make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account, the Fixed Rate will be reduced by one-quarter of one percent (0.25%) for so long as you continue to make such automatic electronic monthly payments. This benefit is suspended during periods of deferment and forbearance. Borrower Eligibility Criteria • Must be a U.S. citizen or permanent resident alien without conditions and with proper evidence of eligibility. • Must be 21 or older at the time you apply.

• Must have graduated from a SoFi-eligible school and program of study. • Must reside in a state in which SoFi is authorized to lend. Bankruptcy Limitations • If you file for bankruptcy you may still be required to pay back this loan. More information about loan eligibility and repayment deferral or forbearance options is available in your loan application and loan agreement.

SoFi SOFI LENDING CORP.

California Finance Lender License No. 6054612 One Letterman Drive, Building A Suite 4700 San Francisco, CA 94129

VOLUME 167

Complaint

Exhibit H

SoFi BORROW WEALTH PARTNER COMMUNITY RESOURCES ABOUT US LOG IN FIND MY RATE

Student Loan ReFi Mortgage Personal Loan Wealth

Student Loan Refinancing Members save $18,936* on average when they refinance student loans.

LEARN MORE FIND MY RATE

$10 billion in loans funded to date

$760 million in member savings

143,500 members make up our amazing community

We're a modern finance company.

SoFi's turning the very idea of banking on its head and creating an experience that puts our members first. We offer better rates, zero fees, unprecedented service, and awesome benefits. Our goal is to help each of our members achieve their goals. Because when they succeed, we succeed. Pretty awesome, huh?

GET STARTED WITH US >

More reasons to SoFi.

Career Counseling & Unemployment Protection

Everyday Customer Service

Community Events

This might sound weird, but we genuinely want you to succeed. Our career coaches are here to help you do just that

Your money is serious business. That's why we're standing by, 7 days a week on the phone or social media, just

Our members are pretty great. So great, we offer member events and happy hours just so they can meet each other

SOCIAL FINANCE, INC.

Complaint

Exhibit I

Make your student debt go away faster.

Fixed rates start at 3.350% APR and variable rates start as low as 2.815% when you enroll in AutoPay.

LEADING STUDENT LOAN REFINANCING PROVIDER

We've refinanced the most student debt in the U.S., so saving you money on student loans is kind of our thing. In fact, members who refinance with us save an average of $288 a month—and $22,359 total. SoFi is one of few lenders that handles federal and private student loan consolidation. Plus, as a member, you'll have access to a whole lot of perks: career strategy services, customer support seven days a week, invites to SoFi events, and more. Get started by checking your rates online in just two minutes.

RATES AND TERMS No origination fees in most states, no prepayment penalties. Whether you're looking to refinance federal student loans, pay off loans sooner, or get a lower monthly payment [illegible] we offer a range of rates and terms. Choose what works for you.

VARIABLE RATE FIXED RATE [illegible]

WHY REFINANCE STUDENT LOANS WITH SOFI?

Serious Savings Federal + Private Exclusive Rates Unemployment Protection Career Support Wealth Advisors [illegible]

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Complaint

REFINANCE STUDENT LOANS IN THREE EASY STEPS If you have questions, our friendly customer support team is standing by to help you through the process—seven days a week. 1 Online Pre-Approval Our quick pre-approval process lets you know if you qualify before you complete the full application.

2 Select a Loan Compare the plans available to you with specific payments, rates, and terms.

3 Upload & Sign Easily upload documents via screenshots or smartphone photos, then sign your paperwork electronically.

GET STARTED >

TRUST AND SECURITY $ 20 Billion [illegible] 350,000 [illegible] 256-Bit SSL [illegible]

[illegible] SoFi is regulated by the [illegible] Financial Protection Bureau

HEAR FROM OUR MEMBERS With benefits like career counseling, unemployment protection and entrepreneur programs, our members have a lot to say.

VIEW MEMBER STORIES >

COMMON QUESTIONS REFINANCING FEDERAL AND PRIVATE LOANS CONSOLIDATING VS REFINANCING What is student loan refinancing? Can I refinance both federal and private student loans? Am I a good candidate to refinance my student loans with SoFi? What is the difference between consolidating and refinancing? What is a direct consolidation loan? What's the difference between fixed and variable rate loans? SEE ALL FAQS >

YOU MIGHT ALSO LIKE Student Loan Smarts:

Consolidation vs. Refinancing [illegible] Student Loan Consolidation:

When to Combine Federal and Private Loans Through Refinancing [illegible] Student Loan Smarts: How Student Loans Affect Your Credit Score [illegible]

SOCIAL FINANCE, INC.

Complaint

VIEW OUR BLOG >

STUDENT LOAN CALCULATOR

Learn how you could lower your monthly payments and save on total interest when you refinance student loans with SoFi.

CALCULATE SAVINGS

“A NEW FINANCIAL MODEL IS EMERGING...ONE OF THE COMPANIES AT THE FOREFRONT OF IT IS SOFI”

TIME

VIEW ALL PRESS

Excellent [illegible]

[illegible]

VOLUME 167

Complaint

[illegible] [illegible] [illegible] [illegible] [illegible] [illegible]

Degree-Specific Metrics

Average number and amount of loans refinanced by degree type is based on member-submitted degree information and includes loans funded between 08/31/2012 and 04/03/2017.

Degree Type | Avg. Amount Refinanced | #Loans Refinanced Undergraduates | $48,261 | 50,250 Dental | $188,828 | 3,083 Pharmacy | $105,596 | 4,858 Law | $100,689 | 17,581 Nursing | $60,475 | 9,993 MBA | $70,971 | 20,142 Engineering | $50,680 | 4,071 Math | $50,384 | 811 Medicine - M.D. & D.O. | $178,708 | 10,958

SOCIAL FINANCE, INC.

Complaint

| Portfolio Weights | Aggressive | Moderately Aggressive | Moderate | Moderately Conservative | Conservative | | US | [illegible] | [illegible] | [illegible] | [illegible] | 0 | | Developed Ex US | [illegible] | [illegible] | 5% | 0% | 0% | | EM Equity | 20% | 18% | 10% | 5% | 0 | | US Energy | 5% | 0% | 0% | 0% | 0% | | REIT | 5% | 0% | 0% | 0% | 5% | | EM USD | | 5% | 10% | 15% | 5% | | Inflation Linked Treasury | | 0% | 0% | 0% | 0% | | Short Duration Treasury | | 0% | 0% | 0% | 10% | | Intermediate Treasury | | 5% | 5% | 5% | 10% | | Intermediate Corp | | 5% | 7% | [illegible] | 10% | | Short Term Corp | | 5% | 10% | 10% | 0% | | Barclays High Yield | | 5% | 10% | 5% | 0% | | Short Term HY | | 15% | 18% | [illegible] | 0% | | Short Term Inv Muni | | 0% | 0% | 0% | 0% | | Int Muni | | 0% | 0% | 0% | 11% | | High Yield Muni | | 0% | 0% | 0% | 0% | | 1-3 Month Bill | | 0% | 0% | 0% | 0% |

Risks [illegible]

Exchange Traded Funds (ETFs) [illegible]

Equity [illegible]

Fixed Income [illegible]

[illegible]

U.S. Government securities include securities issued or guaranteed by the U.S. Treasury, issued by a U.S. Government agency, or issued by a [illegible]

International Securities [illegible]

Definitions [illegible]

Cash and Cash Alternatives [illegible]

Bonds [illegible]

SOCIAL FINANCE, INC.

Complaint

Employer Contribution Program:

Average Enrollee Lifetime Savings [illegible]

Average Monthly Employer Contribution Amount [illegible]

Total Employer Contributions Amount [illegible]

Average Enrollee Repayment Years Reduced [illegible]

LICENSES

SoFi Lending Corp. holds consumer lending licenses in the following states:

| State | License | License Type | |---|---|---| | Alabama | 21883 | Consumer Credit | | California | 605462 / NMLS# 1121636 | Finance Lender | | Delaware | 30275 | Lender | | DC | MLB1121636 | Money Lenders - Class A | | Idaho | RRL-9120 | Regulated Lender | | Indiana | 16030 | Consumer Credit | | Iowa | NMLS# 2014-0066 | Regulated Loan | | Louisiana | 1121636 | Licensed Lender | | Maryland | 1421 | Consumer Loan | | Michigan | RL-0019594 | Regulatory Loan | | Minnesota | RL-357 | Regulated Loan Co. | | Missouri | 387-14-7315 | Consumer Credit Loan Co. | | Montana | 1121636 | Consumer Loan | | Nevada | 4035 | Broker License | | North Dakota | 1121636 | Money Broker | | Oregon | 0438-001-C | Consumer Finance | | Pennsylvania | 41249 | Consumer Discount Co. | | Rhode Island | 20163665LL | Lender | | South Dakota | MYL-2078 | Money Lending Licensee | | Tennessee | 3765 | Industrial Loan & Thrift License | | Texas | 164481 | Regulated Lender License | | Vermont | 6705 | Lender | | Washington | CL-1121636 | Consumer Loan |

SOFI LENDING CORP. MORTGAGE STATE LICENSING DETAILS

[illegible]

SOCIAL FINANCE, INC. 375

Complaint

SOCIAL FINANCE LIFE INSURANCE AGENCY STATE LICENSES Social Finance Life Insurance Agency LLC holds life insurance agency licenses in the following states: State | License Number Alabama | 77302 Alaska | 100156445 Arizona | 189412 Arkansas | 100161858 California | 0L10077 Colorado | 593003 Connecticut | 2526731 Delaware | 3000027212 District of Columbia | 3098043 Florida | L097785 Georgia | 191108 Hawaii | 444832 Idaho | 668933 Illinois | 100101106 Indiana | 3999920 Iowa | 102279025 Kansas | 518797015-0 Kentucky | DOI-931183 Louisiana | 707821 Maine | AGN375435 Maryland | 3000035093 Massachusetts | 2013496 Michigan | 110797 Minnesota | 40494323 Mississippi | 1503043 Missouri | 8388434 Montana | 100150209 Nebraska | 100257167 Nevada | 3193515 New Hampshire | 2252445 New Jersey | 1622442 New Mexico | 100074631 New York | 1444252 North Carolina | 019791278 Ohio | 1124435 Oklahoma | 100271523 Oregon | 100281597 Pennsylvania | 780123 Rhode Island | RI does not license agencies South Carolina | 208849 South Dakota | 10019155 Tennessee | 2340236 Texas | 270572 Utah | 593002 Vermont | 3325603 Virginia | 140904 Washington | 936815

VOLUME 167

Complaint

West Virginia 100229088 Wisconsin 100218955 Wyoming 32481

Questions? Call us for a free consultation at 855-456-7834

[illegible]

SOCIAL FINANCE, INC.

Complaint

Exhibit K

SoFi [illegible] CONTACT US [illegible]

Congratulations, we think you're great! You've been pre-approved! This pre-approval is conditional upon our verification of your profile information and credit history.

Get Your Rate

Tell Us about Your Current Loans [illegible] Your Total Loan Balance Your Average Interest Rate Your Average Remaining Term $ 25,000.00 [illegible] 7.00 % [illegible] 10 Yrs [illegible] Total Monthly Payment $290.27 Lifetime Cost $34,832.40

What type of loan are you looking for? You are conditionally pre-approved for the rates shown below which include the Autopay Discount (0.25%). You are not required to sign up for Autopay. Select your preferred loan. You can choose a different option later. If you need help deciding, or if there is a loan term you'd like that you don't see, please call us at 1-855-456-SOFI or email [illegible]

Fixed Rate payment never changes | | Term | Monthly payment | Interest rate | Lifetime cost | Lifetime savings | Monthly savings | | [illegible] Selected | 5-year | $457.28 | 3.890% | $27,436.80 | $7,395.60 | $0.00 | | Select | 7-year | $344.09 | 4.000% | $28,948.40 | $5,884.00 | $0.00 | | Select | 10-year | $250.52 | 4.090% | $30,062.40 | $5,219.00 | $39.75 | | Select | 15-year | $200.62 | 5.190% | $36,471.50 | $0.00 | $89.65 | | Select | 20-year | $175.74 | 5.625% | $42,197.60 | $0.00 | $114.53 |

All rates are shown with the Autopay Discount (0.25%). You are not required to sign up for Autopay.

Variable Rate lowest payment today Initial payment, rates and savings shown:

| | Term | Monthly payment | Interest rate | Lifetime cost | Lifetime savings | First monthly savings up to | | Select | 5-year | $445.78 | 2.480% | Varies | Varies | $0.00 | | Select | 7-year | $326.65 | 2.830% | Varies | Varies | $0.00 | | Select | 10-year | $243.60 | 3.540% | Varies | Varies | $46.67 | | Select | 15-year | $179.52 | 3.215% | Varies | Varies | $110.75 | | Select | 20-year | $149.07 | 3.293% | Varies | Varies | $141.20 |

All rates are shown with the Autopay Discount (0.25%). You are not required to sign up for Autopay. Fixed vs. Variable Rates: How are they different? [illegible] Clicking the button below will not affect your credit score.

CONTINUE

Student Loan Refi Get Started Get Your Rate [illegible] Upload Documents & Apply [illegible] Sign Acceptance Packet

VOLUME 167

Decision and Order

DECISION

The Federal Trade Commission (“Commission”) initiated an investigation of certain acts and practices of the Respondents named in the caption. The Commission’s Bureau of Consumer Protection (“BCP”) prepared and furnished to Respondents a draft Complaint. BCP proposed to present the draft Complaint to the Commission for its consideration. If issued by the Commission, the draft Complaint would charge the Respondents with a violation of the Federal Trade Commission Act.

Respondents and BCP thereafter executed an Agreement Containing Consent Order (“Consent Agreement”). The Consent Agreement includes: 1) statements by Respondents that they neither admit nor deny any of the allegations in the Complaint, except as specifically stated in this Decision and Order, and that only for purposes of this action, they admit the facts necessary to establish jurisdiction; and 2) waivers and other provisions as required by the Commission’s Rules.

The Commission considered the matter and determined that it had reason to believe that Respondents have violated the Federal Trade Commission Act, and that a Complaint should issue stating its charges in that respect. The Commission accepted the executed Consent Agreement and placed it on the public record for a period of 30 days for the receipt and consideration of public comments. The Commission duly considered any comments received from interested persons pursuant to Section 2.34 of its Rules, 16 C.F.R. § 2.34. Now, in further conformity with the procedure prescribed in Rule 2.34, the Commission issues its Complaint, makes the following Findings, and issues the following Order:

Findings

1. The Respondents are:

a. Respondent Social Finance, Inc., a Delaware corporation, also doing business as SoFi, with its principal office or place of business at One Letterman Drive, Building A, San Francisco, California 94129.

b. Respondent SoFi Lending Corp., a California corporation, also doing business as SoFi, with its principal office or place of business at 375 Healdsburg Avenue, Suite 280, Healdsburg, CA 95448.

2. The Commission has jurisdiction over the subject matter of this proceeding and over the Respondents, and the proceeding is in the public interest.

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Decision and Order

ORDER

Definitions

For purposes of this Order, the following definitions apply:

A. “Advertisement” shall mean a commercial message in any medium that directly or indirectly promotes a consumer transaction.

B. “Competent and reliable evidence” means tests, analyses, research, studies, or other evidence based on the expertise of professionals in the relevant area, that (1) have been conducted and evaluated in an objective manner by qualified persons and (2) are generally accepted in the profession to yield accurate and reliable results.

C. Unless otherwise specified, “Respondents” shall mean Social Finance, Inc., a corporation, also doing business as SoFi, and SoFi Lending Corp., a corporation, also doing business as SoFi, individually or collectively; and their successors and assigns.

Provisions

I. Prohibited False, Misleading, or Unsubstantiated Representations Regarding Credit Product Savings

IT IS ORDERED that Respondents, and Respondents’ officers, agents, employees, and attorneys, and all other persons in active concert or participation with any of them, who receive actual notice of this Order, whether acting directly or indirectly, in connection with the advertising, promotion, offering, or extension of a credit product, must not:

A. Misrepresent, expressly or by implication, that consumers have saved, will save, or will likely save money, or a specific amount of money, over the lifetime of a credit product or over any other time period (e.g., monthly), including by representing that the amount saved over a specific time period will be zero when consumers may instead pay more money over that specific time period.

B. Make any representation, expressly or by implication, concerning the claims set forth in I.A., unless at the time such representation is made, Respondents possess and rely upon competent and reliable evidence that substantiates that the representation is true.

C. Misrepresent, expressly or by implication, any other material fact about the performance, benefits, or characteristics of any credit product(s) in any Advertisement that makes any representation, expressly or by implication, concerning the claims set forth in I.A.

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Decision and Order

II. Acknowledgments of the Order

IT IS FURTHER ORDERED that Respondents obtain acknowledgments of receipt of this Order:

A. Each Respondent, within 10 days after the effective date of this Order, must submit to the Commission an acknowledgment of receipt of this Order sworn under penalty of perjury.

B. For 10 years after the issuance date of this Order, each Respondent must deliver a copy of this Order to: (1) all principals, officers, directors, and LLC managers and members; (2) all employees, agents, and representatives who participate in the marketing or advertising of credit products; and (3) any business entity resulting from any change in structure as set forth in the Provision titled Compliance Reports and Notices. Delivery must occur within 10 days after the effective date of this Order for current personnel. For all others, delivery must occur before they assume their responsibilities.

C. From each individual or entity to which a Respondent delivered a copy of this Order, that Respondent must obtain, within 30 days, a signed and dated acknowledgment of receipt of this Order.

III. Compliance Reports and Notices

IT IS FURTHER ORDERED that Respondents make timely submissions to the Commission:

A. One year after the issuance date of this Order, each Respondent must submit a compliance report, sworn under penalty of perjury, in which each Respondent must: (a) identify the primary physical, postal, and email address and telephone number, as designated points of contact, which representatives of the Commission may use to communicate with Respondent; (b) identify all of that Respondent's businesses by all of their names; (c) describe the activities of each business; (d) describe in detail whether and how that Respondent is in compliance with each Provision of this Order, including a discussion of all of the changes the Respondent made to comply with the Order; and (e) provide a copy of each Acknowledgment of the Order obtained pursuant to this Order, unless previously submitted to the Commission.

B. For 10 years after the issuance date of this Order, each Respondent must submit a compliance notice, sworn under penalty of perjury, within 14 days of any change in the following:

1. Each Respondent must submit notice of any change in: (a) any designated point of contact; or (b) the structure of Respondent or any entity that Respondent has any ownership interest in or controls directly or indirectly

SOCIAL FINANCE, INC. 381

Decision and Order

that may affect compliance obligations arising under this Order, including: creation, merger, sale, or dissolution of the entity or any subsidiary, parent, or affiliate that engages in any acts or practices subject to this Order.

C. Each Respondent must submit notice of the filing of any bankruptcy petition, insolvency proceeding, or similar proceeding by or against such Respondent within 14 days of its filing.

D. Any submission to the Commission required by this Order to be sworn under penalty of perjury must be true and accurate and comply with 28 U.S.C. § 1746, such as by concluding: “I declare under penalty of perjury under the laws of the United States of America that the foregoing is true and correct. Executed on: ______” and supplying the date, signatory’s full name, title (if applicable), and signature.

E. Unless otherwise directed by a Commission representative in writing, all submissions to the Commission pursuant to this Order must be emailed to [email protected] or sent by overnight courier (not the U.S. Postal Service) to: Associate Director for Enforcement, Bureau of Consumer Protection, Federal Trade Commission, 600 Pennsylvania Avenue NW, Washington, DC 20580. The subject line must begin: In re Social Finance, Inc., Docket No. C-4673

IV. Recordkeeping

IT IS FURTHER ORDERED that Respondents must create certain records for 10 years after the issuance date of the Order, and retain each such record for 5 years. Specifically, Respondents must create and retain the following records:

A. accounting records showing the revenues from all goods or services sold, the costs incurred in generating those revenues, and resulting net profit or loss;

B. personnel records showing, for each person providing services in relation to any aspect of the Order, whether as an employee or otherwise, that person’s: name; addresses; telephone numbers; job title or position; dates of service; and (if applicable) the reason for termination;

C. records of all consumer complaints concerning the subject matter of the Order, whether received directly or indirectly, such as through a third party, and any response;

D. a copy of each unique advertisement or other marketing material making a representation subject to this Order; and

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Decision and Order

E. all records necessary to demonstrate full compliance with each provision of this Order, including all submissions to the Commission.

V. Compliance Monitoring

IT IS FURTHER ORDERED that, for the purpose of monitoring Respondents' compliance with this Order:

A. Within 10 days of receipt of a written request from a representative of the Commission, each Respondent must: submit additional compliance reports or other requested information, which must be sworn under penalty of perjury, and produce records for inspection and copying.

B. For matters concerning this Order, representatives of the Commission are authorized to communicate directly with each Respondent. Respondents must permit representatives of the Commission to interview anyone affiliated with Respondent who has agreed to such an interview. The interviewee may have counsel present.

C. The Commission may use all other lawful means, including posing through its representatives as consumers, suppliers, or other individuals or entities, to Respondents or any individual or entity affiliated with Respondents, without the necessity of identification or prior notice. Nothing in this Order limits the Commission's lawful use of compulsory process, pursuant to Sections 9 and 20 of the FTC Act, 15 U.S.C. §§ 49, 57b-1.

VI. Order Effective Dates

IT IS FURTHER ORDERED that this Order is final and effective upon the date of its publication on the Commission's website (ftc.gov) as a final order. This Order will terminate on February 22, 2039, or 20 years from the most recent date that the United States or the Commission files a complaint (with or without an accompanying settlement) in federal court alleging any violation of this Order, whichever comes later; provided, however, that the filing of such a complaint will not affect the duration of:

A. Any Provision in this Order that terminates in less than 20 years;

B. This Order's application to any Respondent that is not named as a defendant in such complaint; and

C. This Order if such complaint is filed after the Order has terminated pursuant to this Provision.

Provided, further, that if such complaint is dismissed or a federal court rules that the Respondent did not violate any provision of the Order, and the dismissal or ruling is either not appealed or upheld on appeal, then the Order will terminate according to this Provision as though the

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complaint had never been filed, except that the Order will not terminate between the date such complaint is filed and the later of the deadline for appealing such dismissal or ruling and the date such dismissal or ruling is upheld on appeal.

By the Commission.

STATEMENT OF COMMISSIONER ROHIT CHOPRA

Today, the Federal Trade Commission has issued for public comment a settlement with SoFi, an online student lender. According to the FTC's complaint, SoFi's widely disseminated advertisements have significantly exaggerated the average savings that student loan borrowers achieve when they refinance through the company. These advertisements were deceptive and I agree that SoFi's actions were unlawful, so I have voted in favor.

Our proposed resolution does not require SoFi to pay any money whatsoever for this misconduct. Ideally, SoFi would pay civil penalties for violating the law. Due to limitations in the FTC's authority, the agency cannot seek civil penalties in matters like these. However, the Consumer Financial Protection Bureau and the State Attorneys General would be able to seek penalties from SoFi under existing federal law.¹

In future matters where we are unable to obtain monetary remedies, we should carefully consider whether partnering with other law enforcement agencies can lead to better results for consumers and deter bad actors from violating the law.

ANALYSIS OF CONSENT ORDER TO AID PUBLIC COMMENT

The Federal Trade Commission ("Commission") has accepted, subject to final approval, an agreement containing a consent order from Social Finance, Inc. and SoFi Lending Corp. (collectively "SoFi").

1 SoFi's alleged misconduct likely violated both the Federal Trade Commission Act's ban on unfair or deceptive practices and the Consumer Financial Protection Act's (CFPA) prohibition on unfair, deceptive, or abusive practices by those who offer or provide a consumer financial product or service. With some exceptions, States can enforce the CFPA and obtain remedies available under it. See 12 U.S.C. § 5552(a).

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Analysis to Aid Public Comment

The proposed consent order has been placed on the public record for thirty (30) days for receipt of comments by interested persons. Comments received during this period will become part of the public record. After thirty (30) days, the Commission will again review the agreement and the comments received, and will decide whether it should withdraw from the agreement and take appropriate action or make final the agreement's proposed order.

SoFi is an online lender that offers, among other credit products, student loan refinancing. The Commission's proposed complaint alleges that SoFi makes savings claims that, as detailed below, misrepresent how much money students have saved, will save, or will likely save by refinancing their student loans with SoFi.

SoFi has prominently advertised that consumers who refinance their loans with SoFi have saved large average amounts of money over the lifetime of those loans or each month. These claims overstate consumers' average savings. SoFi's calculations of its members' average savings selectively excludes large categories of consumers who would likely pay more money, instead of saving. Specifically, when SoFi calculates its members' average lifetime savings it excludes all consumers who refinance into longer term loans, most of whom actually pay more over the lifetime of the loan. Further, when SoFi calculates its members' average monthly savings it excludes all consumers who refinance into shorter term loans, most of whom actually pay more on a monthly basis. As a result, SoFi's representations significantly inflate the average savings consumers have actually achieved – sometimes even doubling the actual savings.

Additionally, when a consumer submits an application to refinance his or her student loan(s) and is presented with loan options, SoFi misrepresents that the consumer will save zero dollars when the consumer is actually expected to lose money. Specifically, if, for a fixed rate loan option, the consumer is expected to lose money over the lifetime of the loan, then SoFi falsely states that the consumer's lifetime savings will be "$0.00." Likewise, if a consumer is expected to pay more on a monthly basis for a given loan option, then SoFi falsely states that the consumer's monthly savings will be "$0.00."

The proposed order will prevent SoFi from engaging in similar acts or practices. Part I.A. would prohibit SoFi from misrepresenting that consumers who obtain a credit product have saved, will save, or will likely save money, or a specific amount of money, over the lifetime of a credit product or over any other time period (e.g., monthly), including by representing that the amount of money saved over a specific time period will be zero when consumers will instead pay more money over that specific time period. Part I.B. would also prohibit SoFi from making any of the savings claims covered by Part I.A., unless those claims are substantiated with competent and reliable evidence. Part I.C. would prohibit SoFi from misrepresenting any other material fact about the performance, benefits, or characteristics of any credit product when making a savings claim covered by Part I.A.

Parts II through VI of the proposed order are reporting and compliance provisions. Part II is an order distribution provision that requires SoFi to provide the order to current and future principals, officers, and corporate directors, as well as current and future managers, employees, agents and representatives who participate in certain duties related to the subject matter of the proposed complaint and order, and to secure statements acknowledging receipt of the order. Part

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Analysis to Aid Public Comment

III requires SoFi to submit a compliance report one year after the order is entered. It also requires SoFi to notify the Commission of corporate changes that may affect compliance obligations within 14 days of such a change.

Part IV requires SoFi to maintain and upon request make available certain compliance-related records, including certain consumer complaints and unique advertisements. Part V requires SoFi to submit additional compliance reports within 10 business days of a written request by the Commission. Part VI is a provision “sunsetting” the order after twenty (20) years, with certain exceptions.

The purpose of this analysis is to aid public comment on the proposed order. It is not intended to constitute an official interpretation of the complaint or proposed order, or to modify in any way the proposed order’s terms.

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Complaint

IN THE MATTER OF

LINDE AG, PRAXAIR, INC.

AND LINDE PLC

CONSENT ORDER, ETC. IN REGARD TO ALLEGED VIOLATIONS OF SECTION 5 OF THE FEDERAL TRADE COMMISSION ACT AND SECTION 7 OF THE CLAYTON ACT

Docket No. C-4660; File No. 171 0068 Complaint, October 19, 2018 – Decision, February 26, 2019

This consent order addresses the $80 billion acquisition by Linde AG of certain assets of Praxair, Inc. The complaint alleges that the merger violates Section 7 of the Clayton Act and Section 5 of the Federal Trade Commission Act by eliminating direct and substantial competition between Praxair and Linde in relevant markets, providing the merged firm with an enhanced ability to increase prices unilaterally, and eliminating a competitor for gas customers in markets where alternative sources of supply are limited. The consent order requires Linde to divest the vast majority of Linde’s U.S. industrial gas business, and some worldwide assets to MG Industries GmbH. The order also requires Linde to divest five facilities that produce hydrogen and carbon monoxide (“HyCO”) for on-site customers, along with Linde’s hydrogen pipeline in the Gulf Coast and related customer contracts, to Matheson Tri- Gas, Inc., its HyCO plant in Clear Lake, Texas to Celanese Corporation and its HyCO plant in La Porte, Texas to LyondellBasell Industries N.V.

Participants

For the Commission: Jordan S. Andrew, Peter Colwell, Jeffrey Dahnke, Kelly A. Horne, and Samantha R. Morelli.

For the Respondents: Renata Hesse, Steven L. Holley, and Joseph J. Matelis, Sullivan & Cromwell LLP; Thomas A. McGrath, Linklaters LLP.

COMPLAINT

Pursuant to the Clayton Act and the Federal Trade Commission Act (“FTC Act”), and its authority thereunder, the Federal Trade Commission (“Commission”), having reason to believe that Respondent Linde AG (“Linde”), a corporation subject to the jurisdiction of the Commission, and Praxair, Inc. (“Praxair”), a corporation subject to the jurisdiction of the Commission, have entered into an agreement and plan of merger to form Linde PLC, a corporation subject to the jurisdiction of the Commission, in violation of Section 7 of the Clayton Act, as amended, 15 U.S.C. § 18, and Section 5 of the FTC Act, as amended, 15 U.S.C. § 45, and it appearing to the Commission that a proceeding in respect thereof would be in the public interest, hereby issues its Complaint, stating its charges as follows: