Debt Payoff Archives

Jul

2025

What to Do After You Graduate From Law School

By Kayla McCormack | Debt Payoff, Fresh Out of School, Student Loans, student_loan | No Comments

Life after law school can be an exciting time as you look forward to your new career. There are plenty of opportunities available to those with a JD. Some avenues to consider include practicing law at a firm; specializing as an attorney in a field like patents, contracts, immigration (and many more); working as general counsel in-house at a corporation; or even pursuing a career in government.

The path you choose depends on the type of law you studied, your interests, and your past experiences. According to the Bureau of Labor Statistics (BLS), the median salary for lawyers in 2024 was $151,160 annually.

Once you find your first post-law school gig, you will also likely have to start thinking about repaying any law school student loans.

Key Points

• Career paths after law school include working at a law firm, clerking for a judge, pursuing an advanced degree, or transitioning into non-legal careers like politics, journalism, or lobbying.

• Law school graduates often carry significant student loan debt, with an average of $130,000, making repayment strategies a key financial priority.

• Making interest payments while still in school can help reduce total loan costs and prevent interest from accruing.

• Budgeting effectively post-graduation can help balance savings, emergency funds, credit card payments, and student loan repayment.

• Refinancing law school loans may lower interest rates and simplify payments, but it removes access to federal benefits like income-driven repayment and loan forgiveness programs.

Finding Jobs After Law School

After getting a law degree, what to do really depends on why you decided to go to law school in the first place. Did you have dreams of working at a major law firm, becoming a public defender, or going solo with your own practice?

Maybe you’ve decided you no longer want to practice law and would rather apply your new skills to a relevant career or continue to further your education. If you are considering what to do after law school, you can start by examining what workplace environment you find the most exciting and attainable.

Landing at a Law Firm

A law firm is an obvious choice for where to work after getting your JD. But the size, location, and culture of the law firm can greatly impact your experience and job satisfaction. Attorneys working at smaller firms may offer stronger partnership prospects than larger law firms. However, depending on location, the pay could be comparatively lower, and your training may come in the form of on-the-job experience.

While the path to promotion may be longer at a larger firm, they may have more resources and a higher salary. Depending on your preferences and career interests, a major law firm with a big name might be a better fit to help you find your specialty.

Considering a Clerkship

A clerkship is an important career milestone for many attorneys. Usually taking place under the guidance of a certain judge, a clerkship allows law school graduates to see the inner workings of the legal system. Many are considered prestigious resume boosters and offer valuable first-hand experience working under a judge and a leg up on networking from the start.

There are federal and state court clerkships, but federal opportunities like with Supreme Court or circuit court judges can be more difficult to secure because of their prestige. However, state clerkships can also be beneficial, especially if you plan on practicing in the local area.

Getting an Advanced Degree

If you have a desire to specialize in a specific field of law, staying in school to get a post-JD degree is another avenue to consider after getting a law degree.

You might want to pursue this type of degree after having some relevant work experience, which can help you first figure out what particular field of law you want to study. These specialty degrees include Air and Space Law, Sports Law, Global Food Law, Cannabis Law, and more.

Alternative Careers Outside Law

Pivoting after law school to a different career is another option to consider when looking at jobs. If you, like many, have graduated with six-figures worth of student loan debt, you’ll obviously want to find a steady job so you can make regular student loan payments.

Other jobs that may fit with the skill set you curated in law school may include political advisor, journalist, lobbyist, and teacher.

Tackling Law School Debt

Depending on your earning potential and chosen career path, it might make sense for you to aggressively pay off your law school debt in 10 years or less.

Another option is to try to maximize your law school loan forgiveness opportunities.

In order to make your degree count towards your personal and professional goals, figuring out how to approach your debt is a key part of what to do after law school.

Ready to tackle your law school debt?
Refinancing your student loans
could help you pay it off faster.

Making Payments While Still in School

While the government does not require you to make payments on most federal student loans while still in school, you could consider paying the amount of student loan interest that builds up each month to help keep your student loan debt from growing.

Whether you need to pick up a side hustle or prioritize how much you save, making at least interest-only payments on your student loans while still in school can help reduce the amount of interest that will accrue on your student loans. This can ultimately reduce the amount of interest that accrues and help set you up for success after law school.

Sticking to Budget Basics

After your law degree, it can be wise to take stock of your budget and work to balance your goals for savings, emergency funds, credit card payments, and student loans. The average student loan debt from law school currently sits at $130,000, so you’ll want to prioritize making a plan to get these paid off as quickly and efficiently as possible.

Ultimately, you’ll likely want to pick a student loan repayment plan that works for your personal budget, no matter what jobs after law school you are considering. You may decide to pay down debt while also building up a basic emergency fund as part of your financial foundation.

Refinancing Law School Loans

Refinancing your law school loans means that a private lender will issue one new loan that pays off your existing federal and/or private student loans. This new loan comes with new terms, ideally with a lower interest rate or shorter repayment period. Instead of paying multiple student loans, such as from undergraduate and graduate school, there is only one new loan to pay off.

While there are many advantages to student loan refinancing, be aware that refinancing federal loans means that you will not be able to take advantage of benefits like income-driven repayment plans and Public Service Loan Forgiveness. So it may not make sense if you are taking advantage of one of these benefits or plan to in the future.

The Takeaway

Life after law school can mean something different for everyone. Whether you pursue a private practice, family law at a small firm, or corporate law at a large one, there are many career opportunities to pursue as you pay off your student loan debt.

Looking to lower your monthly student loan payment? Refinancing may be one way to do it — by extending your loan term, getting a lower interest rate than what you currently have, or both. (Please note that refinancing federal loans makes them ineligible for federal forgiveness and protections. Also, lengthening your loan term may mean paying more in interest over the life of the loan.) SoFi student loan refinancing offers flexible terms that fit your budget.

With SoFi, refinancing is fast, easy, and all online. We offer competitive fixed and variable rates.

FAQ

What is the next step after graduating law school?

There are many career opportunities available after graduating law school, including joining a law firm, doing a clerkship with a state or federal judge, getting an advanced degree to specialize in a specific type of law, or switching to a different career in which you can use the skills you learned in law school, such as a teacher, a political advisor, or a lobbyist.

What jobs can you get if you graduate law school?

Jobs you can get after you graduate law school include working at a small or large law firm, becoming a clerk to a state or federal judge, landing a position as in-house counsel at a corporation, or working for the government or a nonprofit. To help decide which path is right for you, consider your interests and career goals.

What field of law pays the most?

Typically, the highest-paid lawyers specialize in such areas as corporate law, tax law, intellectual property law, medical malpractice, and entertainment law.

SoFi Student Loan Refinance
Terms and conditions apply. SoFi Refinance Student Loans are private loans. When you refinance federal loans with a SoFi loan, YOU FORFEIT YOUR ELIGIBILITY FOR ALL FEDERAL LOAN BENEFITS, including all flexible federal repayment and forgiveness options that are or may become available to federal student loan borrowers including, but not limited to: Public Service Loan Forgiveness (PSLF), Income-Based Repayment, Income-Contingent Repayment, extended repayment plans, PAYE or SAVE. Lowest rates reserved for the most creditworthy borrowers. Learn more at SoFi.com/eligibility. SoFi Refinance Student Loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Third Party Trademarks: Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

SOSLR-Q225-068

Jul

2025

5 Easy Ways Doctors Can Save on Taxes

By SoFi Editors | Debt Payoff, Student Loans, student_loan | No Comments

Doctors tend to make a good amount of money. For instance, primary care physicians report earning about $281,000 a year while specialists make approximately $398,000 annually, according to a 2025 survey from Medscape.

But compared to other high-earners, doctors also have high amounts of student debt. Med school graduates owe an average of $243,483 in student debt, reports EducationData.org. In addition, physicians spend extra years in school, rather than building equity in their future, such as having a 401(k) or an IRA.

That’s why it makes sense to know how to save money on taxes as a doctor and learn about physician tax deductions.

Here are five easy ways doctors can save on taxes, plus tax deductions for doctors.

Key Points

• Doctors can reduce their tax burden by contributing to various tax-advantaged retirement accounts.

• Establishing a 529 plan for children’s education expenses can provide tax savings.

• Self-employed doctors should deduct all business-related expenses to minimize taxes.

• Doctors should evaluate the tax implications of long-term versus short-term capital gains.

• Donating appreciated investments to charity can offer significant tax benefits.

1. Contribute to multiple tax-advantaged retirement accounts.

One way to save? Instead of only paying into one company-sponsored 401(k) or 403(b) plan, spread your retirement savings across as many tax-advantaged accounts as you can. By having multiple accounts like this, you can substantially increase your savings each year.

2. Consider a 529 plan account to save for children’s college funds.

A 529 account grows tax-free when used for qualifying educational expenses. You might even get a tax deduction on your state taxes the year you fund it. Check your local tax laws to find out more.

3. If you own a practice or you moonlight, consider deducting all business-related expenses.

For physicians, owning a practice comes with a perk: tax deductions for doctors. Think advertising, licensing fees, board exam fees, website fees, subscriptions to professional publications, dues and memberships to medical associations, and traveling to conferences. The general strategy is to deduct as much on Schedule C or your personal tax return as allowable.

4. For investments, consider the tax benefits of long versus short term gains.

Owning an investment for more than one year means any profit will qualify as a long-term gain. That makes sense. What’s important to consider is that long-term capital gains are typically taxed at lower rates than short-term capital gains (which are taxed at your ordinary income rate). For those with portfolios to manage, this is one factor worth keeping in mind.

5. For charitable donations, don’t forget you can donate investments.

Most people know that donating cash or used items qualifies as a tax deduction. But for physician tax deductions, it’s good to remember you can donate appreciated stocks and funds. In this case, you can gain a double tax benefit by getting a tax deduction for the gift—and avoiding the capital gain on the sale.

Another way to possibly save money is with student loan refinancing. When you refinance, you replace your existing student loans with a new loan, ideally with a lower interest rate and better terms.

Should you refinance your student loans? One very important thing to keep in mind is that refinancing federal student loans makes them ineligible for federal protections and programs, like income-driven repayment plans. If you think you may need these federal benefits, refinancing may not be right for you.

This student loan refinancing guide may be helpful as you weigh your options.

If you decide to explore refinancing, this student loan refinance calculator can help you figure out what you might save. For instance, a lower interest rate or a longer loan term may help lower your monthly payment. However, a longer loan term means you may end up paying more interest over the life of the loan.

This student loan refinancing guide may be helpful as you weigh your options.
If you decide to move forward with refinancing your student loans, SoFi offers flexible terms and no origination or prepayment fees.

With SoFi, refinancing is fast, easy, and all online. We offer competitive fixed and variable rates.

FAQ

How can doctors reduce their taxes?

Doctors can reduce their taxes by taking such steps as contributing to multiple tax-advantaged retirement accounts, deducting business expenses if they own their own practice, opening a 529 plan to save for their children’s education, exploring long-term vs. short-term capital gains when it comes to investments, and donating investments.

What can you write off as a doctor?

Tax deductions you can write off as a doctor include board exam fees, memberships and dues to medical associations, traveling to conferences, licensing fees, and fees for professional publications.

Why do doctors get taxed so much?

Doctors may pay more in taxes because they typically earn high salaries. For example, primary care physicians make about $281,000 a year, while specialists make around $398,000. Tax-saving strategies such as contributing to tax-advantaged retirement accounts, taking work-related tax deductions, and making charitable contributions may help lower a doctor’s tax bill.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

SOSLR-Q225-064

Jul

2025

4 Student Loan Repayment Options — and How to Choose the Right One for You

By Kayla McCormack | Debt Payoff, Financial Independence, Fresh Out of School, Student Loans, student_loan | No Comments

Table of Contents

Different Student Loan Repayment Options
Can You Change Your Student Loan Repayment Plan?
SoFi Student Loan Refinancing
FAQ

It’s never too early to think about student loan repayment. Whether you’re still in college, or you recently graduated and are in the grace period before repayment begins, strategizing now can help you weigh the options.

If you’ve graduated and are already working and making payments, it can be a good idea to re-evaluate your repayment plan over time. As your financial circumstances change, the way you’d like to manage your student loans may also shift.

Before considering your options, take inventory of all your student loans. Be sure to list the principal, the interest rate, the repayment period, and the servicer for each loan.

All federal student loans issued in recent years have fixed interest rates, but private student loans or older federal student loans may have variable rates. If the rate is variable, be sure to note that as well.

Key Points

• The Standard Repayment Plan is the default option for federal student loans, offering fixed payments over 10 years, but it may not be the most cost-effective for everyone.

• Income-Driven Repayment Plans adjust payments based on discretionary income and can lead to loan forgiveness after 20-25 years, though they may increase total interest paid.

• Student Loan Forgiveness Programs are available for certain borrowers, such as those in public service or teaching, but require meeting eligibility criteria like 120 qualifying payments.

• Student Loan Consolidation allows federal borrowers to combine multiple loans into one with a single payment, but it does not lower interest rates.

• Student Loan Refinancing can reduce interest rates and lower payments, but refinancing federal loans with a private lender eliminates federal protections and repayment options.

Different Student Loan Repayment Options

Once you understand the details of your student loans, it’s time to think about your repayment options. The simple choice if you have federal student loans is the Standard Repayment Plan. It’s the “default” repayment plan, so unless you sign up for another option, this is the plan you’ll have. Under the Standard plan, you typically pay a fixed amount every month for up to 10 years.

There is no “standard repayment plan” for private student loans; the interest rate may vary based on market factors, and your repayment term might be shorter or longer.

The federal government also offers graduated and extended repayment plans for borrowers. With the Graduated Repayment Plan, payments start smaller and grow over time, while the Extended Repayment Plan stretches repayment over a period of up to 25 years and payments may be either fixed or graduated.

Opting for the Standard Repayment Plan may work for you, but for some borrowers, it’s not the most cost-effective choice. These borrowers may be eligible for special federal programs that can reduce the amount they owe monthly based on financial circumstances, and in some cases, forgive balances if they meet certain requirements.

Or some borrowers might be able to find a more competitive interest rate by refinancing their loans through private lenders.

💡 Quick Tip: Often, the main goal of refinancing is to lower the interest rate on your student loans — federal and/or private — by taking out one loan with a new rate to replace your existing loans. Refinancing may make sense if you qualify for a lower rate and you don’t plan to use federal repayment programs or protections, since refinancing federal loans makes them ineligible for federal benefits.

Here’s an overview of some student loan repayment options that may help if you are choosing a repayment plan:

1. Student Loan Consolidation

Federal student loan consolidation allows you to combine multiple federal student loans into a single new loan. You can’t consolidate private student loans using this federal program.

When you consolidate your federal student loans into a Direct Consolidation Loan, your new loan’s interest rate will be the weighted average of all your old student loans’ interest rates, rounded up to the nearest one-eighth of a percent. This means your interest rate won’t necessarily be lower than the rate you were paying before consolidation on some of your student loans — in fact, it could be slightly higher.

When you consolidate, you’ll also have the option to select a new repayment plan. The standard plan would still be available, but consolidation can also be a first step toward other plans of action, like student loan forgiveness or income-driven repayment.

2. Student Loan Forgiveness

Federal student loans are eligible for student loan forgiveness programs, and private student loans may qualify for some loan repayment assistance programs. For instance, some federal student loans and Direct Consolidation Loans are eligible for modified payment plans that forgive outstanding student loan balances.

Health care professionals, teachers, military service members, and those employed full-time by qualifying nonprofit or public service organizations may be eligible for certain federal student loan forgiveness programs. Some states and employers offer loan repayment assistance toward both federal and private loans for eligible workers.

Under the Public Service Loan Forgiveness (PSLF) program, those who have worked for qualified employers, such as the government or some nonprofit agencies, and have made 10 years of payments on a qualified income-driven repayment plan, can apply for forgiveness of all of their remaining federal student loan balances. That forgiveness is not considered taxable income.

The Federal Student Aid website has additional information on which federal student loans qualify for which types of forgiveness, cancellation, and/or discharge.

3. Income-Based Repayment

If the payments under the Standard Repayment Plan seem too high, federal student loans offer income-driven repayment plans, which tie the amount you pay to your discretionary income. The currently available options are Income-Based Repayment, Income-Contingent Repayment, and Pay As You Earn.

Income-driven repayment plans may help lower your monthly payments. In some cases, however, you might end up paying more over the life of the loan than you would have on the Standard Repayment Plan. That’s because with low monthly payments that stretch out over more years, you could be paying more in interest over time.

Additionally, with income-driven repayment plans, you may be eligible for student loan forgiveness if the remainder of your student loans aren’t paid off after 20 to 25 years of consistent, on-time payments.

4. Student Loan Refinancing

Refinancing student loans through a private lender offers the opportunity to consolidate multiple student loans into a single payment and potentially decrease your interest rate or lower your monthly payment.

Loan repayment terms vary based on the lender, and borrowers with better credit and earning potential (among other financial factors that vary by lender) may qualify for better terms and interest rates.

One important thing to know about refinancing, however, is that once you refinance a federal student loan into a private loan, you can’t undo that transaction and later consolidate back into a federal Direct Consolidation Loan.

This can be relevant for professionals in health care or education where federal student loan forgiveness plans are offered, or for those considering long-term employment in the public sector.

In addition, refinancing federal student loans with a private lender renders them ineligible for important borrower benefits and protections, like income-driven repayment and deferment.

💡 Quick Tip: When refinancing a student loan, you may shorten or extend the loan term. Shortening your loan term may result in higher monthly payments but significantly less total interest paid. A longer loan term typically results in lower monthly payments but more total interest paid.

Can You Change Your Student Loan Repayment Plan?

If you have federal student loans, it is possible to change your repayment plan at any time, without any fees. You’ll have the option to choose from any of the federal repayment plan options, including income-driven repayment plans.

There is less flexibility to change the terms of a private student loan. Some private lenders may offer alternative payment plans for borrowers. Check with your lender directly to see what options may be available to you.

Recommended: Student Loan Calculator

SoFi Student Loan Refinancing

Refinancing is another avenue that can result in a new repayment plan. An important consideration, however, is that refinancing federal student loans will remove them from any federal programs or protections, so this won’t be the right choice for everyone.

The Takeaway

Federal student loan borrowers have the ability to change their repayment plan at any time, without being charged any fees. There are different plans to choose from, and you can look for one that suits your situation and needs.

Changing your repayment plan is a bit more challenging for private student loans, though some private lenders may offer alternative options for borrowers. Refinancing is another option that could allow some borrowers to adjust their repayment terms.

With SoFi, refinancing is fast, easy, and all online. We offer competitive fixed and variable rates.

FAQ

What student loan repayment options are available to me?

Borrowers with federal student loans can choose from various federal repayment plans, including the standard 10-year repayment plan and income-driven repayment options. The SAVE plan, which was introduced by the Biden Administration at the end of June 2023, is no longer available. For private student loans, repayment options will be determined by the lender.

What is a standard repayment plan for student loans?

The Standard Repayment Plan for federal student loans involves fixed monthly payments over a period of 10 years. For consolidation loans, repayment may extend up to 30 years, depending on the loan amount.

How long is a typical student loan repayment?

The typical student loan repayment period may vary from individual to individual. The Standard Repayment Plan for federal loans is 10 years, but income-driven repayment plans or Direct Consolidation loans may have a term of up to 25 to 30 years. The repayment terms for private student loans vary by lender.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

SOSLR-Q225-044

Jul

2025

The Pros and Cons of Graduated Repayment Plans

By Sarah Brooks | Debt Payoff, Fresh Out of School, Student Loans, student_loan | No Comments

Table of Contents

Student Loan Repayment Options
How Do Graduated Repayment and Extended Graduated Repayment Plans Work?
What Are the Benefits of a Graduated Repayment Plan?
What Are the Drawbacks of a Graduated Repayment Plan?
Refinancing Student Debt vs Graduated Repayment Plans
Refinancing Student Loans with SoFi

Graduation from college or grad school is a time to celebrate a great achievement after years of hard work. But once the party is over, many graduates will be thinking of their next steps: new careers, new cities, and a life filled with new experiences and responsibilities.

For most recent grads, one of those responsibilities is a major one — managing and organizing the repayment of student loans. The average undergrad borrower leaves school with $35,530 in student loan debt, joining the growing population of Americans who, together, are repaying more than $1.7 trillion in student loans.

Key Points

• Graduated repayment plans allow recent graduates to start with lower monthly payments that increase every two years, helping to accommodate entry-level salaries.

• The repayment term for graduated plans is typically 10 years, allowing borrowers to pay off their loans relatively quickly while managing their cash flow.

• Drawbacks include paying more interest over time due to lower initial payments and potential difficulty handling scheduled payment increases as salaries may not keep pace.

• An extended graduated repayment plan offers lower monthly payments over a longer term of 25 years, but results in higher overall interest costs.

• Refinancing student loans can provide a lower interest rate and streamlined repayment, but borrowers lose federal loan benefits such as forgiveness options and income-based repayment plans.

Student Loan Repayment Options

Managing the repayment of federal student loan debt requires strategy, organization, diligence, and a bit of know-how, especially when it comes to picking a repayment plan.

There are several federal repayment options: the standard plan, income-driven plans, and the graduated repayment plan, among others. New grads can also consider consolidating or refinancing their student loans into one new loan with a new rate and new terms. For a recent grad overwhelmed by new choices and decisions, parsing out the details of these loans can be a chore — one that frequently gets ignored.

The graduated repayment plan has been somewhat replaced by newer repayment options, like income-based and income-contingent plans. For some borrowers, though, this plan can be a useful way to begin repayment slowly but still pay off federal loans in 10 years (10-30 years for consolidation loans).

💡 Quick Tip: Often, the main goal of refinancing is to lower the interest rate on your student loans — federal and/or private — by taking out one loan with a new rate to replace your existing loans. Refinancing can make sense if you qualify for a lower rate and don’t plan to use federal repayment programs or protections, since refinancing federal loans makes them ineligible for federal benefits.

How Do Graduated Repayment and Extended Graduated Repayment Plans Work?

Graduated Repayment Plan

The graduated repayment plan is designed to help keep repayment costs low for recent graduates who may have lower starting salaries, but who expect to see their salaries increase substantially over the next 10 years.

Under the graduated repayment plan, the repayment term for federal loans will be 10 years (10-30 years for consolidated loans), which is the same length as the standard repayment plan. With the standard repayment plan, you will pay the same fixed amount each month for the length of the term.

On the graduated plan, your payments will be lower than what you would pay if you were to stay on the standard plan, but never too low that you aren’t paying the amount of interest that is accruing each month. Then, every two years, your payment amount will increase.

Extended Graduated Repayment Plan

The extended graduated repayment plan is similar to the graduated plan, however, the repayment term is over 25 years rather than 10. Typically, borrowers who select this plan will have lower monthly payments than they would under the standard or graduated plan. While their payments will increase over time, they’ll do so more gradually than they would under the extended plan due to the longer term.

With this plan, borrowers may have a much lighter bill to pay each month than they would on many other plans. However, they will end up paying more in interest over time.

What Are the Benefits of a Graduated Repayment Plan?

The main benefit of the graduated repayment plan is that your payments will be low for the first few years of repayment. This can be a big help to recent graduates on entry-level salaries who may not have additional cash flow and are just learning how to build a solid financial foundation while staying within their budget.

Payments will increase over time, but your repayment term (for unconsolidated loans) is 10 years. This means that if you make scheduled payments, you’ll be finished paying off your debt relatively quickly. For Direct Consolidation Loans, your repayment period will depend on the amount of debt you have and could be between 10 and 30 years.

What Are the Drawbacks of a Graduated Repayment Plan?

There are a number of drawbacks to the graduated repayment plan, which can make it a less attractive option than some of the other repayment options available. First, even though you’ll be paying off your loans in 10 years, you will end up paying more in interest using this plan as opposed to the standard plan.

Why? Because with the graduated plan, you’re making lower payments in the first few years. As a result, you’re not paying down as much of the principal as you would be on the standard plan, which means you’re paying more in interest over time.

Another potential drawback is that your payments are scheduled to increase every two years. Depending on the amount you owe, these increases can be staggering.

While the lower payments up front might fit your budget as you start your career, it’s hard to predict whether your salary will increase at just the same rate as your payments will. However, if you end up having a difficult time making the higher payments that eventually come with a graduated repayment plan, you can switch to an income-based plan or an extended plan.

Refinancing Student Debt vs Graduated Repayment Plans

Once you’ve gotten settled into a steady job, another option to consider is refinancing your student loans with a private lender. When you refinance, you are essentially using one new loan to pay off all your current student loans. Then, you just have the new loan to repay, which will have a new interest rate and new terms.

There are a number of benefits to refinancing, including getting a lower interest rate, a lower monthly payment, or a shorter or longer loan term. Additionally, replacing all your loans with one loan will help you streamline your repayment. Some lenders even allow you to refinance private and federal loans together. Note: You may pay more interest over the life of the loan if you refinance with an extended term.

Refinancing your loans with a private lender at a lower interest rate and shorter term can potentially save you thousands of dollars in interest over the life of your loan. However, when you refinance, you give up some of the benefits that come with keeping your federal loans, including student loan forgiveness and income-based repayment plans.

If you foresee a need to use any of these benefits that come with federal loans, it might not be in your best interest to refinance. But, if you have built a strong financial foundation and have a steady income coming in, refinancing could be the best strategy for paying your loans down quickly — and for saving money in the process.

Refinancing Student Loans with SoFi

With SoFi, refinancing is fast, easy, and all online. We offer competitive fixed and variable rates.

Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

SOSLR-Q225-042

Jul

2025

6 Ways to Save Money for Grad School

By SoFi Editors | Debt Payoff, Student Loans, student_loan | No Comments

Figuring out how to save money for grad school can feel overwhelming, but it doesn’t have to be. In fact, it’s possible to save for grad school without picking up a side hustle or taking on more debt — if you plan ahead and adjust your current budget.

Here’s how to save money for grad school and help make it more affordable.

Key Points

• Automate savings by splitting your paycheck or setting up recurring transfers to a dedicated account.

• Open a separate savings account to track grad school funds and stay organized.

• File the FAFSA early to access federal aid, work-study, or grants; grad students are considered independent.

• Ask your employer about tuition assistance or student loan repayment benefits.

• Explore international programs that may cost less or take fewer years to complete.

• Refinance undergrad loans to lower monthly payments and free up budget for grad school (note: federal protections are forfeited).

Strategies to Save Up for Grad School

1. Splitting Up Your Paycheck

If you are currently working and get regular paychecks, one of the simplest ways to start saving for grad school is to automate as much of the process as possible. If your workplace has direct deposit, you could contact HR and see if you are able to add another bank account and designate a certain amount from every paycheck to go into your savings account.

It can be as much or as little as you’d like, but putting the money directly into savings makes it harder to spend right away. By automating your savings account, you eliminate the hassle of manually parting with it.

If your company doesn’t offer the option to split your paycheck to multiple accounts, you can contact your bank directly or check online to see if they offer a recurring transfer. Banks are typically able to set up transfers for you automatically on your payday.

To decide how much to save for grad school, review your monthly budget before starting. If you don’t have one, put one together.

2. Opening a Separate Savings Account

While you shouldn’t necessarily open a new account for every savings goal in your life, as that could get messy fast, setting up a new, separate savings account with your bank for grad school is another way to potentially maximize your money.

Opening a new account with a specific goal of how much to save for grad school could help you keep track of the goal and make your progress tangible. Having a separate account specifically for school can also help you manage and keep track of spending on books and other school-related costs.

These first two ideas can work together to get you progressing on your savings goal. It can be intimidating to commit to allocating some of your budget for savings, but if you make the process regular and automatic, you may be surprised to find how little you miss that extra cash.

3. Applying for Financial Aid

The Free Application for Federal Student Aid is not just for student loans — you could also receive work-study and grants by filling out the FAFSA®. Just like undergraduate applications for federal financial aid, students must demonstrate need, be a U.S. citizen or eligible noncitizen, and be enrolled or accepted as a regular student pursuing a degree beyond a bachelor’s.

However, when graduate students fill out the FAFSA, they may be considered independent student, meaning their parents’ income is no longer taken into consideration.

For some people, this might actually mean they are eligible for more financial aid as an independent individual. The amount a student is awarded will be based on factors including their income and financial assets. Students cannot be in default on a prior student loan to be eligible for additional aid.

Regardless of dependency status, graduate students may be eligible to receive PLUS Loans. These unsubsidized loans can be taken out in amounts up to the cost of attendance, but be aware you can’t have an adverse credit history to qualify.

There’s also the option of financial aid that isn’t typically repaid, in the form of scholarships or other grants, or scholarships from your state based on field of study, interest, or school type.

File your FAFSA as soon as possible after October 1, the year before each enrollment period. Since there are limited funds, the sooner you file, the better chance you may have of getting the most aid possible.

Recommended: Important FAFSA Deadlines to Know

When we say no fees we mean it.
No required fees, late fees, & insufficient fund
fees when you take out a student loan with SoFi.

4. Checking With Your Current Employer

Even if you are not in a career where your employer is expected to pay for a graduate degree, a lot of companies may offer some contribution to ongoing education if it’s possible to show that it will be relevant to your job.

Tuition reimbursement varies depending on your company and industry, but some may offer tuition assistance to their employees. While it might not cover your entire graduate school cost, a tuition reimbursement benefit from your company could significantly lower the amount you need for school, which in turn could lower your dependence on loans.

If you have existing student loan debt from your undergraduate education, check to see if your company offers employees a match (up to a certain amount yearly) on payments made toward student loan debt every year. In this way, employers can make a regular contribution to help with your student loan balance, while you make your regular payments, too.

5. Considering Schools Abroad

Schools in Europe, South America, and Africa may be significantly less expensive than universities in the United States, which can help with saving for grad school. But, before enrolling in graduate school abroad, make sure you understand how your industry will accept and transfer over any foreign degrees. You’ll want to make sure that your grad school degree is a decent ROI.

While the cost of living might be higher in some other countries, international graduate programs can also save you time; some PhD programs in Europe are only three to four years, as compared to six or seven in the U.S.

6. Refinancing Current Student Loans

If you are currently paying off undergraduate student loans, the idea of juggling paying for grad school and paying off undergrad loans may seem daunting. It’s helpful to get your current debt situation under control before saving for grad school. One option you might want to consider that could potentially result in monthly savings is student loan refinancing.

Refinancing your student loans could possibly result in a lower interest rate, which could mean lower monthly payments (depending on the loan term), potentially freeing up room in your monthly budget. A lower interest rate might also mean spending less money over the life of the loan. Note: You may pay more interest over the life of the loan if you refinance with an extended term.

However, it’s important to know that loan refinancing means you’re no longer eligible for federal student loan forgiveness, deferment, and income-driven repayment.

A lower overall interest rate could help you with your goal of saving money to pay for graduate school, helping to make your savings goals more manageable as you embark on this exciting next step in your career. A student loan refinance calculator can help you figure out if refinancing makes sense for your situation.

The Takeaway

Graduate school doesn’t necessarily mean taking on more debt. Those looking to focus their savings plan for graduate school can review their monthly budget and automate as much of their savings as possible.

Additional options to pay for college include federal student loans, scholarships, grants, and work-study. Some students may even consider pursuing their graduate degree abroad to attend a more affordable university. And refinancing is an option that could help some students with undergraduate loans reduce their interest rate.

With SoFi, refinancing is fast, easy, and all online. We offer competitive fixed and variable rates.

FAQ

How can I pay less for grad school?

To pay less for grad school, explore financial aid, scholarships, and grants. Consider in-state or public institutions, which often have lower tuition. Look for assistantships or fellowships that cover tuition and provide a stipend. Additionally, maintain a budget and minimize living expenses.

How much money do you need for grad school?

The amount of money needed for grad school varies widely depending on the program, location, and living expenses. Tuition can range from $10,000 to over $50,000 per year, plus additional costs for books, housing, and other expenses. Budgeting carefully is essential.

Do scholarships and grants exist for graduate students?

Yes, scholarships and grants are available for graduate students. These can come from universities, government programs, private organizations, and professional associations. They often require applications and may be based on merit, need, or specific criteria like field of study.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Third Party Trademarks: Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

SOSLR-Q225-058

What to Do After You Graduate From Law School

Finding Jobs After Law School

Landing at a Law Firm

Considering a Clerkship

Getting an Advanced Degree

Alternative Careers Outside Law

Tackling Law School Debt

Ready to tackle your law school debt? Refinancing your student loans could help you pay it off faster.

Making Payments While Still in School

Sticking to Budget Basics

Refinancing Law School Loans

The Takeaway

FAQ

What is the next step after graduating law school?

What jobs can you get if you graduate law school?

What field of law pays the most?

5 Easy Ways Doctors Can Save on Taxes

1. Contribute to multiple tax-advantaged retirement accounts.

2. Consider a 529 plan account to save for children’s college funds.

3. If you own a practice or you moonlight, consider deducting all business-related expenses.

4. For investments, consider the tax benefits of long versus short term gains.

5. For charitable donations, don’t forget you can donate investments.

FAQ

How can doctors reduce their taxes?

What can you write off as a doctor?

Why do doctors get taxed so much?

4 Student Loan Repayment Options — and How to Choose the Right One for You

Different Student Loan Repayment Options

1. Student Loan Consolidation

2. Student Loan Forgiveness

3. Income-Based Repayment

4. Student Loan Refinancing

Can You Change Your Student Loan Repayment Plan?

SoFi Student Loan Refinancing

The Takeaway

FAQ

What student loan repayment options are available to me?

What is a standard repayment plan for student loans?

How long is a typical student loan repayment?

The Pros and Cons of Graduated Repayment Plans

Student Loan Repayment Options

How Do Graduated Repayment and Extended Graduated Repayment Plans Work?

Graduated Repayment Plan

Extended Graduated Repayment Plan

What Are the Benefits of a Graduated Repayment Plan?

What Are the Drawbacks of a Graduated Repayment Plan?

Refinancing Student Debt vs Graduated Repayment Plans

Refinancing Student Loans with SoFi

6 Ways to Save Money for Grad School

Strategies to Save Up for Grad School

1. Splitting Up Your Paycheck

2. Opening a Separate Savings Account

3. Applying for Financial Aid

When we say no fees we mean it. No required fees, late fees, & insufficient fund fees when you take out a student loan with SoFi.

4. Checking With Your Current Employer

5. Considering Schools Abroad

6. Refinancing Current Student Loans

The Takeaway

FAQ

How can I pay less for grad school?

How much money do you need for grad school?

Do scholarships and grants exist for graduate students?

JOIN THE COMMUNITY

Student Loan Refinancing

Personal Loans

Online Investments

Other

Ready to tackle your law school debt?
Refinancing your student loans
could help you pay it off faster.

When we say no fees we mean it.
No required fees, late fees, & insufficient fund
fees when you take out a student loan with SoFi.

Student Loan
Refinancing

Personal
Loans

Online
Investments