Financial Topics Archives

Jul

2025

Short Calls vs Long Calls: Complete Comparison

By Mike Zaccardi, CMT, CFA | Growing Wealth, invest, Investing | Comments Off

Editor's Note: Options are not suitable for all investors. Options involve risks, including substantial risk of loss and the possibility an investor may lose the entire amount invested in a short period of time. Please see the Characteristics and Risks of Standardized Options.

Table of Contents

Short Calls vs Long Calls
What Are Short Calls?
What Are Long Calls?
Comparing Short Calls vs Long Calls
FAQ

Short and long calls are opposing options strategies: one seeks to profit from rising prices, the other from stability or market declines.

Each involves different risk profiles, trading costs or margin requirements, and sensitivities to time and volatility. Understanding how they work can help traders navigate the complexities of directional options trading.

We’ll break down how each strategy works, look at trade examples, and highlight the differences in payoff potential, time decay, and risk.

Key Points

• Short calls involve selling call options, collecting a premium that may result in income if the option expires worthless.

• Risk may be unlimited with a short call if the stock rises sharply, unless the call is covered.

• Short calls can be used to hedge against a decline in stock value.

• Long calls give option buyers the right to buy a stock at a set price, benefiting from price increases.

• Long calls offer leverage, allowing control of a large number of shares with less capital.

What’s the Difference Between Short Calls and Long Calls?

Every time a call option contract transaction takes place there is a seller and a buyer. The seller is said to be short the calls and the buyer is long the calls. “Short calls” and “long calls” are simply shorthand for two different positions and strategies.

Short calls are a bearish options strategy that may benefit from a decline in the underlying asset’s price, or from time decay in low-volatility conditions when used in a covered call. On the other hand, a long call is a bullish options strategy that aims to capitalize on upward price movements on an asset, such as a stock or exchange-traded fund (ETF).

Short calls are the opposite strategy to long calls and their potential payoffs reflect that. Long calls may offer theoretically unlimited upside, while the maximum profit for a short call is capped at the premium received.

What Are Short Calls?

“Short calls” are an options strategy involving selling a call option.

Short call sellers receive a premium when the call is sold. The seller hopes to see a decrease in the underlying asset’s price to achieve the maximum profit.

It is also possible for the seller to profit if the underlying asset price stays the same. Options prices are based on intrinsic value (the difference between the strike price and the asset price) and extrinsic value, influenced by time to expiration and volatility.

If the asset price remains below the strike price, the call has no intrinsic value — only extrinsic value, which erodes over time due to time decay. There are two types of short calls: naked calls and covered calls. Short calls are “naked” when the seller does not own the underlying asset (considered an extremely risky strategy). Short calls are “covered” when the seller owns the underlying asset at the time of sale.

Short calls have a fixed maximum profit equal to the premium collected, but risk is technically unlimited if the asset rallies sharply. Theoretically, a stock could rise to infinity, so there is no cap on how high the value of a call option could be.

Therefore short calls can be highly risky. For this reason, traders should have a risk management plan in place when they engage in naked call selling.

Short Call Example

It’s helpful to see an example of a short call to understand the upside reward potential and downside risks involved with such a strategy.

Suppose your outlook on shares of XYZ stock is neutral to bearish. You think that the stock, currently trading at $50, will trade between $45 and $50 in the next three months.

A plausible trade to execute would be to sell the $50 strike calls expiring in three months. We’ll assume those options trade at $5. The breakeven price on a short call is the strike price plus the premium collected.

In this example, the breakeven price is thus $50 plus $5 which is $55. You profit so long as the stock is below $55 by the time the options expire, but will experience losses if the stock is above $55 by expiry.

Two months pass, and the stock is at $48. The calls have dropped in value thanks to a minor share price decline and since there is less time until expiration. The drop in time value relates to decaying theta, one of the option Greeks, as they’re called. Your short calls are now valued at $2 in the market.

Fast-forward three weeks, and there are just a few days until expiration. Despite a modest rise to $49, the call options declined in value due to accelerated time decay. They are now worth just $1. Time decay has eaten away at the value of the calls — more than offsetting the rise in the underlying shares. Time decay becomes quicker as expiration approaches.

You choose to buy-to-close your options in the market rather than risk a late surge in the stock price. Most options are closed out rather than left to expire (or be exercised) as closing options positions before expiration can save on transaction costs and added margin requirements. You cover your short calls at $1 and enjoy a net profit of $4 on the trade ($5 collected at the trade’s initiation minus a $1 buyback to close the position).

Pros and Cons of Short Calls

Pros of Short Calls	Cons of Short Calls
Benefits from time decay	Unlimited risk if the underlying asset rises sharply
Can be used in combination with a long stock position to generate extra income (covered call)	You may be required to deliver shares if the options holder exercises the call option
The underlying stock can move sideways to even slightly higher, and you may still profit	Reward is capped at the premium you received at the onset of the trade

Finally, user-friendly options trading is here.^*

Trade options with SoFi Invest on an easy-to-use, intuitively designed online platform.

*Check out the OCC Options Disclosure Document.

What Are Long Calls?

Long calls are the opposite strategy to a short call. With a long call, the trader is bullish on the underlying asset. Once again, a key aspect of the options trade is timing.

A long call benefits when the security rises in value, but it must do so before the options expire.

Long calls have unlimited upside potential and limited downside risk. A long vs. short call differs in that respect since a short call has limited profit potential and unlimited risk.

A long call is a basic options strategy that may serve as a speculative, bullish bet on an underlying asset. It’s a simple options strategy with limited risk, which may appeal to newer traders learning directional trades.

Long Call Example

Buying a long call option is straightforward. Long calls vs. short calls involve different order types. With long calls, you input a buy-to-open order and then choose the calls you wish to purchase.

You must enter the underlying asset (often a stock or ETF, but it could be an option on a futures contract such as on a commodity or currency), along with the strike price, options expiration date, and whether the order is a market or limit order.

Suppose you go long calls on XYZ shares. The stock trades at $50 and you want to profit should the stock rise dramatically over the next month. You could buy the $60 strike calls expiring one month from now. The option premium — the cost to buy the option — might be $2. Because the call is out-of-the-money, that $2 is composed entirely of extrinsic value (also known as time value).

Since you are going long on the calls, you want the underlying stock price to rise above the strike price by expiration. It’s important to know your breakeven price with a long call — that is the strike price plus the premium paid. In our example, that is $60 plus $2 which is $62. If the stock is above $62 at expiration, you profit.

After three weeks, the stock has risen to $70 per share. Your calls are now worth $13.

That $13 of premium is made up of $10 of intrinsic value (the stock price minus the strike) and $3 of time value since there is still a chance the stock could keep increasing before expiry.

A few days before expiration, the shares have steadied at $69. Your $60 strike calls are worth $10. You decide to take your money and run.

You enter a sell-to-close order to exit the position. Your proceeds from the sale are $10, resulting in an $8 gain relative to your $2 premium outlay.

Pros and Cons of Long Calls

Pros of Long Calls	Cons of Long Calls
Potential for unlimited gains	The premium paid can be substantial
Risk is limited to the premium paid	You can be correct with the directional bet and still lose money if your timing is wrong
Is a leveraged play on an underlying asset	There’s a chance the calls will expire worthless

Comparing Short Calls vs Long Calls

There are important similarities and differences between a short call vs. long call to consider before you embark on a trading strategy.

Similarities

Traders use options for three primary reasons:

• Speculation — Speculators can involve taking a position in an asset or derivative based on the expectation that its price will move in a favorable direction. Investors can buy a call and hope the underlying asset rises or they can sell a call and hope the asset price drops. Either way, the investor is taking a risk and could lose their investment, or more in the case of naked short calls.

• Hedging — Short sellers of stock may sometimes buy call options with the goal of helping reduce risk associated with an existing investment or position.

• Generate Income — Covered short calls help to generate extra income in a portfolio. The seller sells a call that is out-of-the-money, collects the premium, and hopes the stock doesn’t rise to that strike price. However, the investor can also choose a strike that they would be happy to sell at such that, if the stock rises and the option is exercised, they are happy to sell their shares.

Differences

Long calls are a bullish strategy while short calls are a neutral to bearish play.

Long calls offer theoretically unlimited profit and limited loss. Short calls offer limited profit and potentially unlimited loss. Long calls offer limited downside and high upside, while short calls cap profits and expose traders to potentially Long calls offer limited downside and high upside, while short calls cap profits and expose traders to potentially unlimited loss. A long call has unlimited upside potential and losses are limited to the premium paid. A short call may incur unlimited losses, with a maximum limited to the premium collected at the onset of the trade.

Time decay works to the benefit of an options seller, such as when you enter a short call trade. However, time decay could work to the detriment of those who are long options.

When implied volatility rises, the holder of a call benefits (all else equal) since the option will have more value. When implied volatility drops, options generally become less valuable, which is to the option writer’s benefit.

It’s also important to understand the moneyness of a call option. A call option is considered in-the-money when the underlying asset’s price is above the strike price. When the underlying asset’s price is below the strike, then the call option is considered out-of-the-money.

A call writer prefers when the call is more out-of-the-money while a call holder wants the calls to turn more in-the-money.

Short Calls vs Long Calls

Short Calls	Long Calls
Neutral-to-bearish view	Bullish view
A more advanced options play	A limited-risk trade that may be more approachable for options beginners
Profit capped at premium; losses can be unlimited	Profit potential is high; loss limited to premium paid

The Takeaway

Long calls and short calls are option strategies that have an inverse relationship: one limits risk but requires price movement, while the other caps reward but benefits from time decay. Both are sensitive to market direction, volatility, and timing, making it critical to match the strategy with your outlook and risk tolerance.

SoFi’s options trading platform offers qualified investors the flexibility to pursue income generation, manage risk, and use advanced trading strategies. Investors may buy put and call options or sell covered calls and cash-secured puts to speculate on the price movements of stocks, all through a simple, intuitive interface.

With SoFi Invest® online options trading, there are no contract fees and no commissions. Plus, SoFi offers educational support — including in-app coaching resources, real-time pricing, and other tools to help you make informed decisions, based on your tolerance for risk.

Explore SoFi’s user-friendly options trading platform.

FAQ

Are long calls better than short calls?

Neither strategy is better by default — it depends on your market outlook and risk tolerance. Long calls may benefit from rising prices, whereas short calls could lead to profits if prices stay flat or decline. Both are sensitive to time, volatility, and direction.

Like long calls, short calls require that your outlook and timing align. If the stock rallies unexpectedly, losses can mount quickly.

How do short calls and covered calls differ?

A short call, when sold without the underlying shares, is known as a naked call (or naked position) — and carries theoretically unlimited risk if the stock rises.

Covered calls involve holding the underlying stock and selling a call option against it. This strategy caps upside but can limit risk compared to a naked call, since the shares can be delivered if the option is exercised. It may be used to generate income when the stock is expected to stay flat or decline slightly. The downside is that your shares can be called away if the stock rises, and you may still incur losses if the stock drops significantly.

Photo credit: iStock/Prostock-Studio

INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE

SoFi Invest is a trade name used by SoFi Wealth LLC and SoFi Securities LLC offering investment products and services. Robo investing and advisory services are provided by SoFi Wealth LLC, an SEC-registered investment adviser. Brokerage and self-directed investing products offered through SoFi Securities LLC, Member FINRA/SIPC.

For disclosures on SoFi Invest platforms visit SoFi.com/legal. For a full listing of the fees associated with Sofi Invest please view our fee schedule.

Options involve risks, including substantial risk of loss and the possibility an investor may lose the entire amount invested in a short period of time. Before an investor begins trading options they should familiarize themselves with the Characteristics and Risks of Standardized Options . Tax considerations with options transactions are unique, investors should consult with their tax advisor to understand the impact to their taxes.

Disclaimer: The projections or other information regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results.

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.

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SOIN-Q225-021

Jul

2025

What Is a Bear Put Spread?

By Mike Zaccardi, CMT, CFA | Growing Wealth, invest, Investing | Comments Off

Table of Contents

Bear Put Spread Definition
How Does a Bear Put Spread Work?
Bear Put Spread Example
Bear Put Spread Graph: Payoff Diagram
Pros and Cons of Bear Put Spreads
Bear Put Spread vs Bear Call Spread
When to Consider a Bear Put Spread Strategy
FAQ

A bear put spread, also known as a debit put spread, involves buying a put at a higher strike price and selling another at a lower strike price, both tied to the same expiration date and underlying asset.

Essentially, a long put is purchased with the goal of profiting from a decline in the underlying asset’s price, while a short put is purchased to reduce the cost of the strategy, and limit potential losses. The level of risk is well-defined, with the maximum loss limited to the net premium paid upfront, but the potential gains are limited as well.

A bear put spread is a type of vertical spread that a trader might typically consider when they’re moderately bearish on an asset.

Key Points

• Bear put spreads involve buying a put at a higher strike price and selling a put on the same asset at a lower strike price, both with the same expiration date.

• Potential profits depend on the underlying asset’s price declining below the lower strike price by expiration.

• Maximum loss is limited to the net premium paid for the spread.

• The break-even point is reached when the stock price is below the higher strike price by the amount of the net premium paid.

• Time decay affects the spread’s value differently depending on the asset price relative to the strike prices.

Bear Put Spread Definition

A bear put spread is an options strategy in which a trader buys a high strike put and sells a low strike put. Like other options strategies, bear put spreads may be traded at different types of moneyness, including out-of-the-money (OTM), at-the-money (ATM), or in-the-money (ITM). This strategy is typically used by traders who are bearish on a stock, have a downside price target, and have a defined time horizon.

The maximum profit occurs when the underlying asset is at or below the lower strike by expiration.

The trader will incur a debit (cost) equal to the price of the purchased put option minus the price of the sold put option when initiating the trade. An investor may lose the entirety of the debit if the underlying stock closes at or above the strike price of the long put (the higher strike price) at expiration.

The closer the strike prices are to the price of the underlying asset, the higher the debit incurred. Paying a larger debit may reduce the maximum potential profit, since the profit ceiling defined by the strike spread remains fixed.

How Does a Bear Put Spread Work?

There are two basic types of options: puts and calls. Options are a type of derivative that allows investors to seek profits from the potential price of movements of assets, without having to own those assets outright. A bear put spread is one of many strategies for options trading.

With a bear put spread, the investor may profit if the underlying stock price declines below the long put’s strike price by expiration. It is not as bearish as buying puts outright because the short put both reduces the upfront cost and caps the maximum gain. It may also come with lower defined risk than selling a put.

In options terminology, maximum gains are reached when the underlying asset trades at or below the lower strike price at expiration. A bear put spread is cheaper to enter since the sale of the lower strike put helps finance the trade.

Losses are limited to the net debit (cost) incurred when the trade is entered. However, early assignment of the short put may occur before expiration, which could result in unexpected exposure. Those losses may be incurred if the underlying asset price closes above the strike price of the long put (higher strike price) at expiration.

Recommended: Bull vs Bear Markets

Maximum Profit

A bear put spread’s maximum profit is:

Difference between strike prices – Net premium (debit) paid

Maximum Loss

A bear put spread’s maximum loss is:

Net premium paid, plus any commissions

Breakeven

The breakeven point for a bear put spread is:

Strike price of the long put (higher strike) – Net premium paid

Bear Put Spread Example

Assume that shares of XYZ stock are currently trading at $100. A trader anticipates that the shares will decrease to $95 by the following month’s option expiration date. To enter into a bear put spread, a trader could purchase a $100 put for $4.00 while simultaneously selling a $95 put for $2.00. The sale of the low strike option helps to make a bearish position less expensive since the trader collects that premium while paying for the high strike put option.

The maximum loss and net debit for this bear put spread is:

Premium paid = Cost of Long Put – Cost for Short Put

Premium paid = $4.00 – $2.00 = $2.00 net debit

Note: The $2.00 net debit is per share. Since an option contract is for 100 shares, the debit will be $200 per option contract.

The maximum profit for this bear put spread is:

Maximum profit = Width of strike prices – Premium paid

Maximum profit = $100 – $95 – $2.00 = $3.00 per share or $300 per option contract

The breakeven point for this trade is when the stock price reaches:

Breakeven = Strike price of long put – Premium paid

Breakeven = $100 – $2.00 = $98.00

Bear Put Spread Graph: Payoff Diagram

This profit and loss diagram helps illustrate the payoff in the above example of a bear put spread. Again, assuming that a $100 strike put is bought at $4 and a $95 strike put is sold at $2, the breakeven in this example is $98 — the $100 strike minus the $2 premium paid. Understanding the Greeks in options trading can also shed light on how this strategy responds to time, price, and volatility.

Bear Put Spread Payoff

Recommended: How Are Options Priced?

Impact of Price Changes

As the price of the underlying asset falls, the bear put spread tends to increase in value. As the asset price rises, the bear put spread’s value falls. The position is said to have a negative Delta since it typically profits when the underlying stock price falls.

Due to the dual-option structure of this trade, the rate of change in delta, known as Gamma, is minimal as the underlying asset price changes.

Impact of Volatility

The impact of volatility is minimized due to the dual option structure of the trade. Vega, in the option Greeks, measures an option’s sensitivity to changes in volatility. Between the short put and long put, the trade has a near-zero Vega.

However, asset price changes can result in volatility affecting the price of one put more than the other.

Impact of Time

The impact of time decay, also known as Theta, varies based on the asset price relative to the strike prices of the two options.

When the asset price is above the long put strike price, the value of the bear put spread decreases as time passes. This is because the long put loses value more rapidly than the short put.

When the asset price is below the short put strike price, the value of the bear put spread increases as time passes as the short put decays faster than the long put.

When the asset price is between the strike prices, the effect of Theta is minimal because both options tend to lose value at a similar rate.

Closing Bear Put Spreads

Traders may choose to close out a bear put spread before it expires, if it is profitable. If it has reached its maximum possible profit, the position may be closed out to capture the realized gain.

Another reason to close a bear put spread position as soon as the maximum profit is reached is due to the risk of early assignment on the short put, which could result in a long stock position. If assigned early, the trader could be left with a long stock position and may be forced to hold the stock, exposing them to further losses beyond the initial premium. To avoid this situation, traders either close the full bear put spread or exit the short leg separately by buying it back, while leaving the long put open.

If the short put is exercised and the long stock position is created, the trader can close out the position by selling the stock in the market to close out the long position, exercising the long put. Each of these options may incur additional transaction fees that could reduce the trade’s net return, hence the potential benefit of closing out a maximum profit position as soon as possible.

Finally, user-friendly options trading is here.^*

Trade options with SoFi Invest on an easy-to-use, intuitively designed online platform.

*Check out the OCC Options Disclosure Document.

Pros and Cons of Bear Put Spreads

Pros	Cons
Has defined risk compared to shorting a stock	The short put may be assigned, resulting in a long stock position
May be beneficial if the stock experiences a gradual decline in the stock price	Maximum loss is equal to the net debit paid
Maximum loss is limited to the net debit	Profits are capped at or below the short put’s strike price, which is the lower strike price in the spread

Bear Put Spread vs Bear Call Spread

A bear put spread differs from a bear call spread — also known as a short call spread — in that the latter uses call options instead of put options. A bear call spread features a short call at a low strike and a long call at a higher strike. This strategy has a slightly different payoff profile compared to a bear put spread.

A bear call spread opens at a net credit, meaning proceeds from the sale of the low strike call are larger than the payment for the purchase of the long call at a higher strike. The maximum profit is limited to the net credit received when opening the trade.

The maximum loss on a bear call spread is limited to the difference between the low strike option and the high strike option, minus the net credit received. The stock price is usually below the low strike when the trade is established.

The primary difference is that a bear call spread doesn’t require the underlying stock to decline to turn a profit. A flat stock price by expiration allows traders to simply keep their net credit. In contrast, a bear put spread is done at a net debit, so the stock must fall to make money with a bear put spread.

Bear Put Spread	Bear Call Spread
Buying a high strike put and selling a low strike put	Buying a high strike call and selling a low strike call
Done at a net debit	Done at a net credit
Underlying stock price must drop to make a profit	Underlying stock can be neutral and still make a profit
Max loss is the premium paid	Max gain is the premium received

When to Consider a Bear Put Spread Strategy

Traders may want to consider constructing a bear put spread when they are moderately bearish on a stock and have a specific price target.

For example, if a trader expects XYZ stock will dip from $100 to $90, a bear put spread might be suitable. The trader might buy the $105 put and sell the $90 put at a net debit.

If the stock indeed falls to $90 by the expiration date, the shareholder keeps the premium from the low strike short put and profits from a higher value on the high strike long put.

Traders may want to have a timeframe in mind for puts, as they will have to choose their option’s expiration date.

Finally, a bear put spread should be considered when a trader has a bearish near-term outlook on a stock and seeks to keep their capital outlay small.

The Takeaway

Bear put spreads are used to place bearish bets on a stock. They offer limited risk and reduced cost compared to buying puts, and the potential for profit if the stock declines moderately. Bear put spreads allow options traders to express a bearish outlook on a stock while managing costs and defining maximum potential losses. This may be a cost-effective strategy for profiting from moderate price declines, though adverse price movements could result in losses.

Explore SoFi’s user-friendly options trading platform.

While investors are not able to sell options on SoFi’s options trading platform at this time, they can buy call and put options to try to benefit from stock movements or manage risk.

FAQ

What is a bearish options strategy?

A bearish options strategy is an option trade used when an investor anticipates that the underlying asset price will decline. If an investor is bullish, they expect the asset’s price to rise.

What is the maximum profit for a bear put spread?

The maximum profit for a bear put spread is the difference between the strike prices minus the net premium paid.

Maximum profit = long put strike price – short put strike price – net premium paid

What does it take for a bear put spread to break even?

A bear put spread strategy breaks even at expiration when the stock price is below the high strike by the amount of the net premium paid at the trade’s initiation.

Breakeven = long put strike price – net premium paid

Photo credit: iStock/MicroStockHub

INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE

SOIN-Q225-070

Jul

2025

Understanding the Greeks in Options Trading

By Samuel Becker | Growing Wealth, invest, Investing | Comments Off

Table of Contents

A Quick Look at Options
What Are Option Greeks?
5 Main Options Greeks: Overview
Other Options Terminology to Know
FAQ

The “Greeks” in options trading — including delta, gamma, theta, vega, and rho — are metrics that help traders gauge the pricing and risk of a given options contract.

Because options are derivatives, the value of each contract — the premium — depends on a complex interaction of different factors, including time to expiration, price volatility, and changes in the value of the underlying security. Each of these factors is represented by a Greek letter.

While there are several Greeks, delta, gamma, theta, vega, and rho are among the main Greeks in options trading.

Options Greeks may sound like a foreign language, but they are often essential tools for assessing whether a certain position may be profitable, since it can be difficult to understand the true value of an option.

Key Points

• Options Greeks are tools that help investors estimate how different market forces may affect the value of an options contract.

• Delta measures how much an option’s price might change in response to a $1 move in the underlying asset.

• Gamma tracks how delta itself may change as the stock price shifts, helping investors understand rate-of-change risk.

• Theta reflects time decay, showing how much value an option could lose each day as it nears expiration.

• Vega and rho measure sensitivity to implied volatility and interest rate changes, respectively, both of which can influence an option’s premium.

A Quick Look at Options

Options contracts are a type of investment that can typically be bought and sold much like stocks and bonds. But options are derivatives — that is, they do not represent ownership of the underlying asset. Instead, their value (or lack thereof) derives from another underlying asset, typically a specific stock.

Traders generally conduct different types of options trading when they anticipate that stock prices may go up (a call) or down (a put). They also use options to hedge or offset potential investment risks on other assets in their portfolio.

In a nutshell, options are typically purchased through an investment broker. Those options give purchasers the right, but not the obligation, to buy or sell a security at a later date and specific price. Investors can buy an option for a price, called a premium, and then they may choose to buy or sell that option.

So, while an option itself is a derivative of another investment, it may gain or lose value, too. For example, if an investor were to buy a call option on Stock A and the stock price increases, the value of that call option may rise as well.

But the opposite would be true if an investor purchased a put option on Stock A, anticipating that Stock A’s price would go down. While not identical to shorting a stock, buying a put may result in a loss if the stock price rises instead of falls.

What Are Option Greeks?

Options traders use these letters to evaluate their option positions and better understand how changes in market conditions may affect those positions.

In short, the Greeks look at different factors that may influence the price of an option. Calculating the Greeks isn’t an exact science. Traders use a variety of formulas, typically based on mathematical pricing models. Because of that, these measurements are theoretical in nature.

Here’s a look at the most common Greeks used by traders to estimate how options might respond to market changes.

Recommended: Options Trading Terms You Need to Know

Delta

Delta measures how much an option’s price may change if the underlying stock’s price changes. It’s usually expressed as a decimal, ranging from 0.00 to 1.00 for calls and 0.00 to -1.00 for puts.

So, if an option has a delta of 0.50, in theory, that means that the option’s price may move approximately $0.50 for every $1 move in the stock’s price. Another way to think of delta is that it gives an investor an idea of the probability that the option may expire in-the-money. If delta is 0.50, for example, that can equate to a 50% chance that an option will expire in the money — meaning the strike price would be favorable relative to the market price at expiration.

Gamma

The second Greek, gamma, tracks the sensitivity of an option’s delta to changes in the underlying asset’s price. If delta measures how an option’s price changes in relation to a stock’s price, then gamma measures how delta itself may change in response to changes in the stock’s price.

Think of an option as a car going down the highway. The car’s speed represents delta, and acceleration reflects gamma, as it measures the change in speed. Gamma is also typically expressed as a decimal. If delta increases from 0.50 to 0.60, then gamma would be 0.10.

Theta

Theta measures an option’s sensitivity to time. It gives investors a sense of how much an option’s price may decline as it approaches expiration.

Similar to the “car on a highway” analogy, it may be useful to think of an option as an ice cube on a countertop. The ice cube melts — representing the diminishing time value — and that melting may accelerate as expiration approaches.

Theta is typically expressed as a negative decimal, representing the estimated daily dollar loss per share and represents how much value an option may lose each day as it approaches expiration.

💡 Quick Tip: The best stock trading platform? That’s a personal preference, of course. Generally speaking, though, an effective platform is one with an intuitive interface and powerful features to help make trades quickly and easily.

Vega

Finally, vega in options is a measure of an option’s sensitivity to implied volatility.

Markets are volatile, and securities (and their derivatives) are subject to that volatility. Vega measures how sensitive an option’s price is to changes in implied volatility.

Volatility refers to the magnitude and frequency of price fluctuations in a security’s value. Because future volatility is unknown, options pricing reflects market expectations — known as implied volatility. Changes in stock volatility can affect an option’s value, particularly when implied volatility deviates from expectations. Vega does not measure volatility itself, but an option’s sensitivity to volatility changes.

Vega is expressed as a number, reflecting the estimated dollar change in an option’s price for each 1% change in implied volatility.

Rho

Rho measures an option’s sensitivity to changes in interest rates. Specifically, it estimates how much an option’s price may move in response to a one percentage-point change in the risk free-interest rate.

The value of rho is typically small and more impactful for longer-dated options. For example, a rho of 0.05 suggests the option’s premium may increase by $0.05 if interest rates rise by 1%.

Although rho is less influential than other Greeks in most short-term trading strategies, it becomes more relevant when interest rates are rising or when a trader holds options with longer expirations.

Finally, user-friendly options trading is here.*

Trade options with SoFi Invest on an easy-to-use, intuitively designed online platform.

*Check out the
OCC Options Disclosure Document.

5 Main Options Greeks: Overview

In summary, here’s how an investor may use this data when analyzing the risk and reward of an options contract.

Name	Symbol	Definition	How investors might think about it
Delta	∆	Measures the sensitivity of an option’s price to a change in the price of the underlying security.	For example, if the delta is 0.50, that suggests the option’s price may move approximately $0.50 for every $1 move in the stock’s price. It can also indicate a 50% chance that an option may be in the money at the moment. This probability may change over time and isn’t a guarantee.
Gamma	γ	Measures the rate of change for delta. It tells you how quickly delta will change as the stock price changes.	Think of an option as a car on the highway: speed reflects delta while acceleration represents gamma, which is typically expressed as a decimal. A stock trading at $10 with a delta of 0.40 and gamma of 0.10 means that a $1.00 increase in the stock’s price may adjust delta by 0.10, increasing it to 0.50. A $1 decrease may lower delta to 0.30, impacting how quickly the option’s value will increase or decrease with further price movements.
Theta	θ	Measures the sensitivity of an option’s price to the passage of time.	An option’s theta is like an ice cube melting on a countertop – its time value diminishes as expiration approaches, and the melting becomes more rapid over time. This is expressed as a negative decimal that reflects dollar loss. For example, a theta of -1 means the option may lose $1 per share, per day, until it reaches the expiration date.
Vega	ν	The change in an option’s value as implied volatility goes up or down by 1 percent.	Vega rises with higher implied volatility, which reflects greater market uncertainty. Lower implied volatility typically corresponds with smaller price movements.
Rho	ρ	Measures the sensitivity of an option’s price to a change in interest rates.	If an option has a rho of 1.0, a 1% increase in interest rates may result in a 1% increase in the option’s value. Options most sensitive to interest rate changes are typically those that are at-the-money or have the longest time to expiration.

Other Options Terminology to Know

The specific option traded (a call versus a put, for example) and the underlying stock’s performance determine whether an investor’s position is profitable. That brings us to a few other key options terms that are important to know:

In the Money

A call option is “in the money” when the strike price is below the market price. A put option is “in the money” when the strike price is above the market price.

Out of the Money

A call option is “out of the money” when the strike price is above the market price. A put option is “out of the money” when the strike price is below the market price.

At the Money

The option’s strike price is the same as the stock’s market price.

The Takeaway

There’s no getting around it: Options and the Greeks can be complex and are generally not appropriate for newer investors. But experienced traders, or those willing to spend time learning how options work, may find them to be a valuable tool when building an investment strategy.

Explore SoFi’s user-friendly options trading platform.

FAQ

What are the Greeks in options trading?

The Greeks are a set of theoretical risk measures used to estimate how an option’s price may change based on variables like time, volatility, and the underlying asset’s price. The most commonly referenced Greeks are delta, gamma, theta, vega, and rho.

What is the Rule of 16 in options?

The Rule of 16 is shorthand for estimating expected daily price movement. It’s based on the idea that implied volatility reflects annualized moves. By dividing implied volatility by 16, traders can estimate the expected one-day standard deviation for a stock.

How do you use gamma in options trading?

Gamma helps traders get a sense of how stable an option’s delta is. A higher gamma suggests delta could change rapidly, especially near expiration or when an option is at the money. Monitoring gamma can help manage risk when holding positions that are sensitive to price swings.

Which Greek is most important in options trading?

The most closely watched Greek is delta, which estimates how much an option’s price may change when the underlying asset moves by $1. Delta also gives a rough idea of an option’s probability of expiring in the money. That said, the “most important” Greek depends on the strategy: traders focused on time decay may prioritize theta, while volatility traders may focus more on vega.

Photo credit: iStock/photolas

INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE

SOIN-Q225-068

Jul

2025

How to Cancel Subscriptions on an iPhone, iPad, or Mac

By Diana Kelly Levey | Budgeting & Goals, Financial Independence, money | Comments Off

Table of Contents

How to Cancel App Subscriptions on an iPhone or iPad
How to Cancel Subscriptions on a Mac
Accidentally Cancelled a Subscription? Here’s How to Restart
How-to Tip: Setting Reminders to Avoid Unwanted Subscriptions
The Takeaway
FAQ

Many people sign up for app free trials, perhaps for an exercise program or a streaming platform, and think they’ll remember to cancel in a week, before they get billed…but don’t. Then, a charge appears on a statement, and they realize it’s time to take action and cancel that unwanted subscription.

Or perhaps you’re the type who signed up for a meditation app but haven’t used it in a while and think it’s time to exit.

In these situations, you may need a little help figuring out the most direct way to cancel a subscription on your iPhone, iPad, or Mac. Here’s help: a guide to canceling those money-draining sign-ups.

Key Points

• To cancel an unwanted iPhone, iPad, or Mac subscription, open Settings or App Store.

• Access the Subscriptions section on an iPhone or iPad by tapping your name or signing in. Visit the App Store on a Mac.

• Select and cancel the specific subscription you no longer need.

• Set reminders to cancel before trial ends using mobile apps or calendar.

• Track monthly expenses and budget to avoid unwanted charges.

How to Cancel App Subscriptions on an iPhone or iPad

Here are the steps for canceling a subscription on your mobile iOS device.

Step 1. Open the Settings app.

Step 2. Tap your name at the top of the page.

Step 3. Tap Subscriptions.

Step 4: Tap the subscription that you want to cancel.

Step 5. Tap Cancel Subscription. If you don’t see Cancel as an option, the subscription has already been cancelled and won’t renew. You should be free of this charge and on track to be saving money daily.

There’s another option you might use:

Step 1. Go to the App Store.

Step 2. Tap your profile image.

Step 3. Scroll down to Subscriptions and tap. You will then see any active subscriptions.

Step 4. Tap the subscription you want to cancel.

Step 5. Confirm by tapping Cancel Subscription. That can help keep more money in your checking account, to be used as you see fit.

How to Cancel Subscriptions on a Mac

Follow these instructions to cancel app subscriptions on a Mac laptop or desktop computer.

Step 1. Open the App Store (you can locate this in Finder under Applications, or at the bottom of your home screen).

Step 2. Click the sign-in button or your name at the bottom of the sidebar.

Step 3. Click View Information at the top right of the window. You may be prompted to sign in.

Step 4. On the page that appears, scroll until you see Subscriptions, then click Manage.

Step 5. Click Cancel Subscription. If you don’t see Cancel Subscription, then the subscription is already cancelled and will not renew.

Accidentally Cancelled a Subscription? Here’s How to Restart

If you got a little trigger-happy and canceled the wrong subscription. Or perhaps you have a change of heart after canceling an app and want to get it back, realizing that you were just momentarily feeling guilty about spending money.

Step 1. Open the Settings app.

Step 2. Tap your name at the top of the page.

Step 3. Tap Subscriptions.

Step 4. Look for the list of expired subscriptions at the bottom of the screen. Tap the one you would like to reactivate.

Step 5. On the subscription page, tap the subscription option you want and then confirm your choice. You’ll now be resubscribed.

Recommended: Budgeting for Basic Living Expenses

How-to Tip: Setting Reminders to Avoid Unwanted Subscriptions

The next time you sign up for a new app that has a trial period promotion going on, you may want to set a reminder on your mobile device to cancel your app subscription. Say, you want to cut back and save on streaming services after having signed up for half a dozen different channels on a boring rainy weekend.

This could help you avoid unexpected monthly expenses and manage your money better to reach your short-term financial goals.

You could use your phone to ask Siri to set a reminder to cancel a subscription a few days before fees will kick in. Or, you could use the Reminders app on your phone or iPad.

Another option is to use Calendar to create a New Event for the date and time you want to cancel an app. To get a notification on that day, you’ll want to make sure the Alert section is set to “at time of event.” This move can help you reduce your spending.

Recommended: How to Make a Budget in 5 Steps

The Takeaway

Most subscriptions automatically renew unless you cancel them. If you sign up for a free trial and don’t cancel in time, you will end up paying a monthly fee that you likely won’t be able to get refunded.

A good way to make sure you aren’t paying for subscriptions you don’t want is to track your monthly spending and then set up a basic budget. Having a budget can help ensure that your spending is in line with your priorities and short-term financial goals. Your bank may offer tools to help you with expense tracking and overall budgeting.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with eligible direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy 3.30% APY on SoFi Checking and Savings with eligible direct deposit.

FAQ

How do I cancel an active subscription on my iPhone?

To cancel an active subscription on your iPhone, navigate to Settings, click on your name, and then scroll to Subscriptions. Then, select the subscription that you want to cancel and tap Cancel Subscription. Confirm your choice to finalize the cancellation.

How do I cancel an unwanted subscription?

To cancel a subscription you no longer want, check where you originally purchased it (for example, via the company’s website, app store, etc.). Then, navigate to the platform’s subscription management section (account settings or Google Play, perhaps) and follow the cancellation instructions. If you can’t find the option to cancel there, contact the company directly.

Where do I find my subscriptions on my phone?

To find your subscriptions on your Android phone or iPhone, navigate to the platform’s respective app store or account settings. On Android, this is typically done through the Google Play Store app, while on iPhone, it’s within the App Store or Apple ID settings.

Photo credit: iStock/Suwaree Tangbovornpichet

SoFi Checking and Savings is offered through SoFi Bank, N.A. Member FDIC. The SoFi® Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 12/23/25. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet

Eligible Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Eligible Direct Deposit”) via the Automated Clearing House (“ACH”) Network every 31 calendar days.

Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning the APY for account holders with Eligible Direct Deposit, we encourage you to check your APY Details page the day after your Eligible Direct Deposit posts to your SoFi account. If your APY is not showing as the APY for account holders with Eligible Direct Deposit, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning the APY for account holders with Eligible Direct Deposit from the date you contact SoFi for the next 31 calendar days. You will also be eligible for the APY for account holders with Eligible Direct Deposit on future Eligible Direct Deposits, as long as SoFi Bank can validate them.

Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, Wise, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi Bank shall, in its sole discretion, assess each account holder's Eligible Direct Deposit activity to determine the applicability of rates and may request additional documentation for verification of eligibility.

See additional details at https://www.sofi.com/legal/banking-rate-sheet.
*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

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.

SOBNK-Q325-074

Jul

2025

What To Do If You Can’t Afford Your Private Student Loans?

By Nancy Bilyeau | Debt Payoff, Student Loans, student_loan | Comments Off

If you’re having trouble paying your student loans, you’re not alone. More than 42.7 million borrowers have federal student loan debt.

In fact, 20% of all American adults with undergraduate degrees have outstanding student debt and 24% of postgraduate degree holders report outstanding student loans, according to the Education Data Initiative. Almost 8%% of students use student loans from a private source, such as a bank or a credit union. The average federal student loan debt balance is $38,375, while the total average balance (including private loan debt) may be as high as $41,618.

If you’re among these borrowers, you may find it challenging to afford the payments on your loans—especially if you have other debt and financial obligations. Student loan debt is now the second-highest consumer debt category after mortgages.

If you are delinquent on your student loan for a certain period of time, your loan will go into what’s called default. The consequences to student loan default can be serious–and if the student loan in question is private (rather than federal) there are particular factors to be aware of. Read on to learn what can happen if you don’t pay your private student loans, what your options are, and how best to avoid a default happening in the first place.

Table of Contents

What Happens If You Don’t Pay Your Private Student Loans?
What If You Can’t Pay Your Federal Student Loans?
Options If You Can’t Pay Your Private Student Loans
Lowering Your Student Loan Payments
FAQ

Key Points

• Many Americans struggle with private student loan payments, which can lead to delinquency or default if not managed properly.

• Missing payments may result in penalties and increased debt due to accruing interest.

• Private lenders may offer deferment or forbearance options, but these can also lead to increased debt over time.

• Refinancing private student loans might lower monthly payments but could result in a borrower paying more interest over the life of the loan.

• Bankruptcy is a potential last resort for unmanageable student loan debt, though it comes with significant financial repercussions.

What Happens If You Don’t Pay Your Private Student Loans?

Each private student loan lender will likely be a little different, but generally, missing a student loan payment can put your loan into delinquency, and may incur late fees and/or penalties.

In addition, depending on the loan, interest can accrue on those penalties and on the unpaid principal loan amount, which then can get added to how much you owe. If you miss too many consecutive payments, you may be at risk of defaulting on the loan.

Each private lender has their own terms that trigger student loan default. That typically means multiple missed payments. Even if you declare bankruptcy, it’s unlikely your student loan debt goes away. It’s important to check the terms of your private student loans, since they vary by lender.

Once a student loan goes into delinquency or default, it will likely affect your credit score. That can possibly affect your ability to take out loans in the future or achieve other financial goals, like buying a house.

In addition, once a private student loan goes into default, the lender can send it to collections. If you can’t pay your private student loans, you could ultimately face a judgment that could result in a garnishment of your wages.

Ideally, if your student loan payments are too high, you might consider other options before risking delinquency or default.

💡 Quick Tip: Ready to refinance your student loan? You could save thousands.

What If You Can’t Pay Your Federal Student Loans?

The penalties and provisions attached to federal student loans are quite different from those for private student loans. If you have both federal and private loans it’s important to consider them separately when coming up with a plan to grapple with default.

Federal loans often come with more protections and options for repayment plans. One option is to pursue an income-driven repayment plan (IDR), which allows for more manageable payments based on your income and family size. Generally, your payment amount under an income-driven repayment plan is a percentage of your discretionary income. The percentage is different depending on the plan.

You might also be eligible for deferment or forbearance for your federal loans, if you qualify, which can temporarily pause your student loan payments.

Even though federal student loans (both subsidized and unsubsidized) are government-backed and originated by the U.S. Department of Education, they’re administered by a student loan servicer, which is a private company in charge of the loan. While this means you might be making your payments to a private loan company, it’s still a federal student loan and it comes with federal student loan protections.

Options If You Can’t Pay Your Private Student Loans

If your private student loan repayment seems too high, however, the options are different. You can’t apply for an IDR plan for a private student loan, for example. Every private loan lender sets its own terms and conditions. Getting private student loan help varies with each lender.

While there are fewer options if you can’t make your private student loan payments, there are still some actions you can consider.

1. Talking to Your Lender

If your private student loan payments are too high, then it might be worth talking to your lender. You could start by getting a copy of your promissory note so that you know all the terms and conditions of your specific loan.

Each private lender sets out its own repayment and deferment options, so your loan may differ from your friends’ loans.

Lenders, however, want to get paid, and it’s not in their interest for you to default. Once you have the terms of your loan in hand, then you can try talking to your private lender about potential alternative student loan repayment plans to see if they’ll work with you on what you can afford or even if you might be able to put your loan payments on hold if you need to.

2. Exploring Deferment and Forbearance Options

In certain circumstances, as mentioned above, deferment and forbearance are available to temporarily put payments for federal loans on hold. However, for private student loans, the forbearance and deferment options will be determined by your lender.

Private lenders may offer forbearance and/or deferment in certain circumstances, such as returning to grad school or entering active military duty. If you can’t pay your private student loans, then you may want to see if your lender offers these options.

It’s important to know, though, that in most cases, interest continues to accrue and compound during forbearance or deferment on private student loans. That means the interest on the amount you owe builds up and gets added to the loan principal (which then accrues its own interest), and could end up costing you more in the long run.

3. Making a Student Loan Repayment Budget

This may sound obvious, but it can be important to create a plan and budget for repaying your student loans. Cutting back on some expenses or looking for additional income to allocate towards student loan payments could pay off in the long run.

Because student loan interest accrues and compounds over time, every little bit paid off now can save more money later.

In addition, if a borrower makes as many payments as possible on time, it could save late fees or additional penalties.

There are a few principles for how to tackle student loan payment.

You could start with the loans that have the smallest balances and build momentum, a strategy known as the snowball method, or start with the highest interest loans to save yourself the most money (the avalanche method).

You can also benefit from prepaying more than the minimum monthly payment. If you allocate additional payment towards your loan principal, then you won’t accrue interest on that principal you paid down, and you could save yourself money.

4. Refinancing your Student Loans

If your private student loan payments are too high, one way to potentially lower your monthly payments could be to refinance your student loans by extending your term.

If you need lower monthly payments right away, extending your loan term is one way to accomplish this. (You may pay more interest over the life of the loan if you refinance with an extended term, however.)

Once you’re on more solid financial footing, refinancing could qualify you for a lower interest rate, which could save you money in the long run (since interest adds up and compounds over time).

Recommended: How to Pay Off Student Loans

5. Declaring Bankruptcy

It is possible to declare bankruptcy when the majority of your debt is made up of student loans. However, the legal bar for having your student debt discharged is high.

You may have your federal student loan discharged in bankruptcy only if you file a separate action, known as an “adversary proceeding,” requesting the bankruptcy court find that repayment would impose undue hardship on you and your dependents in the future.

Private student loans can also be discharged in bankruptcy. Note that private student loans are exempt from bankruptcy discharge (similar to taxes and child support) without a separate application. In that application, you would have to prove in court that you are unable to pay the loan and make a case that it will be extremely difficult to do so in the foreseeable future.

However, if you can make a case for it financially, the court may rule to discharge the loan. “Some private loans for educational purposes can be discharged in a normal bankruptcy proceeding, just like most other consumer debts,” according to the Consumer Financial Protection Bureau.

It’s important to take into consideration the serious impact a bankruptcy will have on your credit rating and ability to borrow money in the future.

Recommended: Bankruptcy and Student Loans, Explained

Lowering Your Student Loan Payments

If you’re struggling to make your payments and need private student loan help, then refinancing your private student loans, ideally with a lower interest rate or more favorable loan terms could lower your monthly payments. Just be aware that refinancing federal student loans makes them ineligible for federal benefits like income-driven repayment plans and deferment.

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 happens if you can’t pay back a private student loan?

Each lender handles this issue differently, but in general, if you can’t pay back a private student loan, your loan first goes into delinquency, and you may be charged penalties and/or late fees. Typically, after a number of missed payments, the loan goes into default, which can damage your credit score and make it more difficult to get credit or loans, including a mortgage. The lender can also send your loan to collections. If you still can’t pay it, they might pursue a judgment to try to garnish your wages.

To avoid delinquency or default, reach out to your lender immediately if you’re having trouble repaying your loan to find out what your options are.

How can I get rid of student loan debt legally?

To get rid of student loan debt legally, you have a few options. If you have federal student loans, you could opt for an income-driven repayment plan, which bases your monthly loan payments on your discretionary income and family size and typically results in a lower monthly payment. If you choose the income-based repayment (IBR) plan, your remaining loan balance may be forgiven after you make a certain number of payments over 20 or 25 years.

If you have private student loans, you can talk to your lender to see if they might be willing to negotiate a settlement or offer you deferment or forbearance. Or you could consider refinancing your loans to lower your monthly payments, if you qualify. You could also declare bankruptcy, but the process is challenging and it will have a serious impact on your credit and ability to borrow money in the future.

What do I do if I cannot afford my student loans?

If you cannot afford your student loans, there are ways to potentially lower your monthly payments to make them more manageable, such as switching to an income-driven repayment plan if you have federal loans, or applying for federal deferment or forbearance.

For private loans, you can reach out to your lender to see if they might be willing to offer you a repayment plan with a lower monthly payment. You could also examine your budget and look for expenses to eliminate and reduce, and then put the money you save toward your loan payments. You might also consider student loan refinancing to see if you qualify for a lower interest rate or more favorable loan terms that could lower your payments.

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 Private Student Loans
Please borrow responsibly. SoFi Private Student loans are not a substitute for federal loans, grants, and work-study programs. We encourage you to evaluate all your federal student aid options before you consider any private loans, including ours. Read our FAQs.

Terms and conditions apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. SoFi Private Student loans are subject to program terms and restrictions, such as completion of a loan application and self-certification form, verification of application information, the student's at least half-time enrollment in a degree program at a SoFi-participating school, and, if applicable, a co-signer. In addition, borrowers must be U.S. citizens or other eligible status, be residing in the U.S., Puerto Rico, U.S. Virgin Islands, or American Samoa, and must meet SoFi’s underwriting requirements, including verification of sufficient income to support your ability to repay. Minimum loan amount is $1,000. See SoFi.com/eligibility for more information. Lowest rates reserved for the most creditworthy borrowers. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change. This information is current as of 4/22/2025 and is subject to change. SoFi Private 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.

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