Student Loans Archives

Jun

2025

Should You Refinance Your Student Loans?

By Jody McMaster | Debt Payoff, Fresh Out of School, Student Loans, student_loan | No Comments

If refinancing your student loans could save you money or make your monthly loan payments more manageable, it may be time to consider a refinance. When you refinance student loans, you replace your existing loans with a new loan from a private lender. Ideally, the new loan would have better rates and terms, if you can qualify for them.

Refinancing isn’t always the right choice, however. There are times when it may not be in your favor. If you’re wondering, should I refinance my student loans?, here’s what you need to know.

Key Points

• Refinancing student loans can potentially save borrowers money through lower interest rates and reduced monthly payments.

• A good credit score is needed to qualify for the best refinancing offers and terms.

• Borrowers who want to switch from variable to fixed interest rates (or vice versa) can do so by refinancing.

• Refinancing federal loans results in losing eligibility for federal forgiveness and income-driven repayment programs.

• Weighing pros and cons is crucial, especially for those with federal student loans, to determine if refinancing is beneficial.

When to Refinance Student Loans

There are several situations in which refinancing student loans makes sense, including these instances:

You Have Private Student Loans With High Interest Rates

If you took out private student loans to help cover the cost of school and the interest you’re paying is high, refinancing may help you get a lower rate. This is especially true at times when interest rates are lower overall and/or when your financial history is solid.

If you qualify for an interest rate that’s even just a few points lower than your current rate, you could potentially save thousands of dollars. This could be one of the times when to refinance student loans. A student loan refinancing calculator can help you crunch the numbers to see what your specific savings might be.

Or perhaps you need to lower your monthly payment to help save money. One way to do this is to refinance your student loans with a longer loan term. This will reduce your payments, however, you will end up paying more in interest over the life of the loan. You could also lower your payment by getting a lower student loan refinancing rate, if possible, and keeping the term the same.

Your Credit Score is Good

Your eligibility to refinance student loans depends in part on your credit score. If you’ve spent time building your credit and you have a stable job, you may qualify for lower student loan refinancing rates.

You can also consider applying for a student loan refinance with a cosigner. If your cosigner has a stronger credit profile than you, you may be able to land a better rate on your refinance.

You can usually refinance student loans right after graduating, and as often as you want after that. Most lenders charge no fees to refinance.

You Have Multiple Loans

If you have several different student loans, refinancing allows you to combine them all into one loan. Basically, when you refinance, you take out a new loan, and that loan is used to pay off your existing loans. You then make payments on the new loan. It streamlines the repayment process since you have just one loan payment to make each month.

You can refinance both federal and private student loans, or a combination of both types, but be aware that refinancing federal loans with a private lender will forfeit your eligibility for federal benefits and protections.

You Qualify for Refinancing

Whether you qualify to refinance student loans depends in part on your credit score, as noted, along with your financial history, employment, and debt-to-income ratio (your monthly income vs. expenses). If you qualify, and ideally, if you can get a lower interest rate, you can save money by refinancing.

You Want to Remove a Cosigner

If you have a cosigner on your student loans and you’d like to remove them, refinancing is one way to do that — as long as you have the credit and financial history to qualify to refinance on your own. To remove the cosigner, take out the refinance loan in your own name only. The cosigner will not have any responsibility for the new loan.

You Want to Switch to Fixed Interest

If you have student loans with variable rates, and you’re concerned that interest rates will rise, you may want to consider refinancing to lock in a fixed rate on the new loan.

You Are Willing to Give Up Federal Benefits

Borrowers with federal student loans need to understand that refinancing these loans into a private student loan will eliminate the ability to participate in income-driven repayment plans, Public Service Loan Forgiveness, and federal deferment and forbearance.

If you are using these benefits or you plan to, it’s not recommended to refinance your student loans. Instead, you could consider student loan consolidation vs. refinancing. A federal student loan consolidation combines multiple loans into one, with the interest rate being the weighted average of the loans you are consolidating rounded up to the nearest one-eighth of a percent.

IMPORTANT: The projections or other information generated by this quiz regarding the likelihood of various outcomes are hypothetical in nature, do not reflect actual results, and are not guarantees of offers.

When Not to Refinance Student Loans

Just like there are times when refinancing may be a wise choice, there are also times when it’s best not to refinance your student loans. You’ll generally want to rule out refinancing in the following situations.

You Want to Use a Federal Loan Forgiveness Program

If you have federal student loans and you’re planning on taking advantage of federal loan forgiveness programs that cancel some of your debt after you meet certain qualifications, refinancing is not the right option for you. Refinancing federal loans into a new private loan makes them ineligible for federal benefits and programs.

You Work in Public Service or Education

Borrowers working in a public service job or as a teacher or educator should think twice about refinancing. If you keep your federal student loans, you may be able to qualify for Public Service Loan Forgiveness (PSLF) or Teacher Loan Forgiveness. With PSLF, eligible borrowers who work in public service for a qualifying nonprofit organization or government agency may qualify for forgiveness from their remaining loan balance after making 120 qualifying payments.

With Teacher Loan Forgiveness, if you teach for five consecutive years in a low-income school or educational service agency and meet certain other qualifications, you may be eligible for forgiveness for up to $17,500 on certain federal student loans, including Direct Subsidized and Unsubsidized Loans.

Refinancing federal student loans means you lose access to these forgiveness programs.

You Need Flexible Repayment Options

If you need a payment plan that could make it easier to repay your federal student loans, income-driven repayment (IDR) is an option to consider. IDR plans base your payments on your discretionary income and family size. The repayment period ranges from 20 to 25 years on these plans.

There are three IDR plans borrowers can currently enroll in via an online application: the income- based repayment (IBR) plan, the income-contingent repayment (ICR) plan, and the Pay As You Earn (PAYE) repayment plan. On one of these plans, the IBR plan, the remainder of your student loan debt may be forgiven at the end of the repayment term.

If you refinance student loans, you will not be eligible for IDR plans.

You Have Poor Credit

Borrowers need good credit to qualify for refinancing, and they need good or excellent credit to be eligible for lower interest rates. If your credit is poor, it may be wise to hold off on refinancing and work on building your credit instead. You could always refinance later, when your financial situation improves and your credit is stronger.

The Takeaway

Knowing when and when not to refinance student loans is important. Refinancing your loans can make sense if it saves you money or helps you get more favorable loan terms. But if your credit isn’t strong enough to get a lower interest rate, or you have federal student loans and want to pursue federal programs like loan forgiveness, refinancing isn’t recommended.

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

Can refinancing student loans reduce the cost of your total debt?

Yes, refinancing your student loans may reduce the total cost of your debt by reducing the amount of interest you pay over the life of the loan. You can do this by getting a lower interest rate (and keeping your loan term the same) and/or shortening your loan term.

What credit score do you need to refinance student loans?

The minimum credit score needed to refinance student loans varies from lender to lender, but according to FICO, a “good” credit score is 670 or higher. To get the best student loan refinance rates, you’ll want to have a good credit score and low debt-to-income ratio. If you don’t meet those requirements, you may want to consider refinancing with a cosigner or waiting until you build your credit.

How do I qualify for student loan refinancing?

To qualify for student loan refinancing, you need strong credit, a low debt-to-income ratio, and stable employment and a steady income. Some lenders may also require you to have your degree in order to refinance. If you don’t meet the refinancing qualifications, you could add a creditworthy cosigner to your loan application or wait to refinance when your financial situation improves.

What are the benefits of refinancing student loans?

The benefits of refinancing student loans include saving money if you can qualify for a lower interest rate, lower monthly payments if you extend your loan term, switching from a variable rate loan to a loan with a fixed rate, and removing a cosigner from your loan if that is something you are looking to do. Just be aware that refinancing federal student loans makes them ineligible for federal programs and protections.

Can student loans be forgiven if you refinance?

No, student loans cannot be forgiven if you refinance. Refinancing federal loans into private loans makes them ineligible for forgiveness. If you have federal student loans and you would like to pursue federal loan forgiveness, refinancing is not the recommended option for you.

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).

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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.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

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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SOSLR-Q225-029

Jun

2025

Can You Refinance Student Loans More Than Once?

By Julia Califano | Debt Payoff, Student Loans, student_loan | No Comments

Refinancing your student debt can have many benefits, including saving money on interest, lowering your monthly payments, or changing your repayment terms. But can you do it more than once? And, if so, should you?

Yes. And maybe.

There is no limit on how many times you can refinance your student loans. If your finances and credit have improved since you last refinanced and/or market interest rates have gone down, it may be worthwhile to refinance your loans, even if you’ve refinanced before.

That said, refinancing multiple times isn’t always worthwhile. Here are key things to consider before you refinance your student loans more than once.

Table of Contents

How Many Times Can You Refinance Student Loans?
When Should You Consider Refinancing Your Student Loans Again?
What Are Some Advantages of Refinancing Multiple Times?
What Are Some Disadvantages of Refinancing Multiple Times?
Things to Look for When Refinancing
How to Decide if Refinancing Again is Right for You
Refinancing Your Student Loans With SoFi

Key Points

• There is no limit to how many times you can refinance student loans, as long as you qualify each time.

• Refinancing again can be beneficial if your credit has improved, interest rates have dropped, or you need different repayment terms.

• Lower interest rates can reduce overall costs, and some lenders offer better repayment options or promotional discounts.

• Frequent refinancing can impact your credit score, extend repayment (increasing total interest paid), and require time and effort.

• Before refinancing again, compare interest rates, loan terms, lender reputation, and fees to ensure it’s the right decision.

How Many Times Can You Refinance Student Loans?

Technically, there is no limit to the number of times you can refinance your student loans with a private lender. In fact, as long as you qualify, you can refinance your student loans as many times and as often as you’d like. And given that lenders often don’t charge prepayment penalties or origination fees, there may be no extra cost involved with refinancing your student loans again.

Refinancing student loans again generally makes the most sense when your finances or credit score improves or interest rates decline. In these cases, it may be possible to save thousands of dollars in interest by reducing your interest rate by a couple percentage points.

If you’re not able to get a lower rate, however, refinancing may not make sense, especially if it extends your repayment term, leading to higher costs.

Also keep in mind that if you only have federal student loans, refinancing with a private lender may not be your best option, since it means giving up government protections like income-driven repayment plans and Public Service Loan Forgiveness.

If you have federal loans, you may want to carefully explore your options, including whether to consolidate or refinance student loans.

When Should You Consider Refinancing Your Student Loans Again?

If you’ve already refinanced your loans with a private lender, here are some key reasons why you might consider refinancing again.

Your Financial Situation Has Changed

If you have experienced a significant improvement in your overall financial health since your last refinance, you may be eligible for a better loan rate and terms. In fact, some borrowers with limited or poor credit might refinance their loans multiple times as they build credit.

Interest Rates Have Come Down

Student loan rates are not only tied to your creditworthiness, but also current economic conditions. If market interest rates have dropped since your last refinance, you might be able to secure a lower rate student loan refinancing rate, reducing your overall interest payments. Even a small reduction in interest rates can lead to substantial savings over the life of the loan.

It’s a good idea to keep an eye on market trends and compare current rates to what you’re paying to determine if refinancing again makes financial sense.

You’re Looking for Different Loan Terms

Changing loan terms can also be a reason to refinance again. Perhaps your initial refinance resulted in a longer loan term to lower your monthly payments, but now you’re in a better financial position and can afford higher payments to pay off your loan faster.

Conversely, you might need to extend your loan term to lower monthly payments due to a change in financial circumstances. Just be aware that extending your repayment term can cost you more money in interest over time.

You Want to Remove or Add a Cosigner

If you originally refinanced with a cosigner and your financial situation has changed so that you no longer need them to qualify for favorable loan terms — or if the cosigner wants to be removed from the loan — refinancing allows you to take them off the loan. You’ll refinance in your own name only and the cosigner will not be included on the new loan.

On the other hand, if you want to add a cosigner with strong credit in order to qualify for a lower refinancing rate, you can do that as well. The new refinanced loan will be in both your names, and you will both be responsible for the loan. The cosigner legally agrees to repay your debt in the event that you can’t make the payments.

What Are Some Advantages of Refinancing Multiple Times?

Before you decide to refinance your student loan again, it’s important to know the advantages and disadvantages of this strategy. Here’s a look at some of the pros of refinancing student loans multiple times.

• Save money: Refinancing multiple times can help you take advantage of lower interest rates as your financial situation improves or as market rates decrease. Each reduction in interest rates can save you money over the life of your loan. You can also shorten your loan term to pay off your debt faster, which can also reduce what you pay in interest

• Better lender benefits: Refinancing with a different lender can potentially provide access to better benefits, such as more flexible repayment options and hardship programs if you are struggling to make your payments. Choosing a lender that offers these benefits can provide additional financial security.

• Promotional offers: Some lenders will offer special promotions or discounts for refinancing with them.

What Are Some Disadvantages of Refinancing Multiple Times?

Refinancing multiple times also has potential drawbacks. Here are some to consider.

• Credit impact: When you formally apply for a refinance, the lender runs a hard credit inquiry, which can negatively affect your credit score. While a single inquiry typically has a minimal impact, multiple inquiries in a short period can lower your credit score.

• You could end up paying more: If you refinance to a longer repayment term, or even the same term every few years, you’re extending the amount of interest payments you make. This can keep you in debt longer and increase the total amount of interest you pay. If you refinance to a variable-rate student loan, the rate could also go up during the life of the loan.

• Time and effort: The process of refinancing can be time-consuming, involving research and making comparisons between lenders, as well as paperwork and credit checks. Doing this multiple times may require a significant investment of time and effort. It might not always be worth it if you won’t save much money with your new loan.

Things to Look for When Refinancing

If you’re considering another refinance, it’s important to look at the following factors to ensure you’re making a smart financial decision.

• Interest rates: Compare the offered interest rates with your current rate to ensure you’re getting a better deal. And make sure you have a credit score required to refinance to help you get those better rates.

• Fixed vs. variable rates: Variable-rate loans have interest rates that can fluctuate based on market rates. The rate could climb if the rate or index it’s tied to goes up (and vice versa).

• Loan terms: Evaluate the terms of the new loan, including the length of the loan and monthly payment amounts. Keep in mind that a longer term can lead to lower payments but increase the total cost of your loan in the end.

• Fees and costs: Be aware of any fees associated with the refinance and calculate whether the savings outweigh these costs.

• Lender reputation: Research the lender’s reputation and customer service to ensure you’re working with a reliable and supportive institution.

• Borrower benefits: Consider the benefits offered by the lender, such as flexible repayment options and hardship programs.

How to Decide If Refinancing Again is Right for You

To determine whether refinancing again is a wise option for your situation, consider whether it will save you money. If your financial situation has improved, and/or interest rates have dropped, refinancing may help you secure a lower rate and potentially save thousands of dollars in interest.

If you need to change the terms of your loan, refinancing could help you do that as well. Just be aware that if you’re extending your loan term to reduce your monthly payments, you’ll pay more overall over the life of the loan. And if you shorten the loan term, your monthly payments will be higher.

Finally, if adding a cosigner might help you get more favorable rates and terms for a loan, refinancing to add that person may be worthwhile.

Refinancing Your Student Loans With SoFi

Refinancing student loans multiple times can be a strategic move to save money and better manage your debt. While there’s no limit to how many times you can refinance, it’s important to carefully consider the costs, benefits, and your financial goals each time.

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

FAQ

Can I consolidate student loans more than once?

Typically, you can’t consolidate federal student loans into a Direct Consolidation Loan more than once. However, you may be able to do this if you have federal loans that were not included in a previous consolidation. Just keep in mind that federal consolidation does not lower your interest rate. With private student loans, refinancing is the way to consolidate your loans, and there is no limit on the number of times it can be done. Each refinance creates a new loan with new terms, so you’ll want to evaluate the benefits, interest rates, and any potential fees before deciding to refinance again.

How many times can you refinance a loan?

There is typically no set limit on how many times you can refinance a loan, including student loans. As long as you qualify, you can refinance your student loans as many times and as often as you’d like. Each refinance involves taking out a new loan to pay off the existing one, so it’s important to consider factors like interest rates, loan term, and any associated fees.

How many times can you take out student loans?

There’s no set limit on how many student loans you can take out, but the federal government and private lenders do impose lending limits based on dollar amount.

For federal student loans, there are annual and aggregate (lifetime) limits based on your degree level and dependency status. For private student loans, lenders set their own annual and aggregate student limits. Often, they will cover up to the annual cost of attendance minus other financial aid each year.

What happens if I refinance my student loans multiple times?

You can refinance your student loans as often as you like, as long as you qualify. There are pros and cons to refinancing multiple times. On the plus side, if your financial situation has improved, you may be able to get a lower interest rate through refinancing again and save money. You could also change the terms of your loan or remove or add a cosigner.

The main drawbacks of refinancing again include a negative impact to your credit, since multiple credit inquiries in a short period of time could temporarily lower your score, and paying more in interest if you refinance to a longer loan term.

Does refinancing student loans multiple times hurt my credit?

Refinancing student loans multiple times in a short period of time could temporarily lower your credit score by several points. This is because when you apply for refinancing, lenders typically do a hard credit check to see your credit report and debt repayment history. A hard credit check temporarily drops your score.

About the author

Julia Califano

Julia Califano is an award-winning journalist who covers banking, small business, personal loans, student loans, and other money issues for SoFi. She has over 20 years of experience writing about personal finance and lifestyle topics. Read full bio.

SOSLR-Q225-027

Jun

2025

How to Pay Off Student Loans Fast: 6 Proven Strategies

By Jody McMaster | Fresh Out of School, Student Loans, student_loan | No Comments

If you’re dealing with student loans and making payments every month, you’d probably like to get them repaid sooner than later. Not only will paying off student loans quickly reduce your debt, it can also help you save money.

Fortunately, there are a number of strategies you can use to speed up repayment. Read on for tips that could help you pay off your student loans early so you can free up your budget and focus on other financial goals.

Key Points

• Making extra payments toward student loan principal can reduce the amount of interest paid over the life of the loan and total payoff time.

• Strategies for making additional student loan payments include starting a side hustle for extra income and using “found money” like bonuses, gifts, and tax refunds.

• Employers may provide student loan repayment help for employees; there are also loan repayment assistance programs offered by some states and organizations.

• The snowball debt repayment method can be used to pay off loans with smaller balances first and work up to larger balances.

• Refinancing or consolidating loans may simplify payments and potentially lower payment amounts.

6 Effective Solutions to Student Loan Debt

There are different methods of paying off student loans fast — what works for you depends on your specific situation. You may want to try combining some of the following six approaches, for instance, or focus on just one.

1. Putting Extra Toward the Principal

One way to get ahead of student loan debt is to pay more than the monthly minimum owed. There are no prepayment penalties for federal or private student loans, so it can be an efficient method to shrink your debt.

As a bonus, when you put extra money toward the principal loan balance, you’re also reducing the total amount of interest you pay over the life of the loan.

If possible, put some additional funds toward your student loan payments each month. If that’s more than you can afford, you might consider increasing your payments every other month or quarterly.

Just make sure that the extra payments are applied to the loan principal. Contact your loan server and tell them to allocate your payment that way.

2. Making a Lump Sum Payment to Pay Off Student Loans Faster

Another option to consider is making a lump sum payment with any “found money” you have. This could be a tax refund, a monetary gift you get for a birthday or other occasion, or a bonus at work. Use that windfall to double down on your debt.

It may also be a good time to review your spending habits and see where you might be able to find some extra cash. Even minor adjustments like eating out a little less frequently or giving up one of the streaming services you pay for but don’t often use could add up.

When you identify discretionary expenses to cut back, you can add the money you save to your student loan payments.

3. Finding a Side Hustle

Creating an additional source of income and putting those funds toward your debt could also help you pay off your student loans faster.

For example, if you’re crafty, you could try selling your creations on an online marketplace. If you’re a photographer, writer, or editor, you could look for a freelance gig. Or you could do tutoring or dogsitting on evenings and weekends. Once you get your side hustle going, the additional income can be regularly dedicated toward extra student loan payments.

Recommended: 15 Low-Cost Side Hustles

4. Getting Help Paying Off Your Loan

You may be able to speed up student loan repayment with a little help from your employer, your state, or by doing volunteer work.

Getting help from your employer. Some employers offer a benefit called loan repayment assistance, in which they help employees repay their student loans. The employer might contribute up to a certain amount, and the employee may have to work for the company for a specific period of time to be eligible.

Other employers have programs that incentivize student loan repayment. For example, when an employee makes their regular monthly student loan payment, an employer can send an additional contribution toward their loans. The employee’s student loan gets paid off faster, and they save money on interest.

Seeking out Loan Repayment Assistance Programs.. If you’re eligible, a Loan Repayment Assistance Program (LRAP) can provide funds to help you lower your student loan payments. Some states, organizations, and companies may offer LRAPs, especially if you work in certain fields like health care or education. LRAPs often include a requirement that you work in your eligible job for a certain number of years, typically in public service.

Volunteering. Some volunteer opportunities might help ease your student loan debt. For example, skills-based volunteers and frontline workers for the Shared Harvest Fund, a mission-driven organization that’s dedicated to wellness and service, can get help paying for their student loans if they match up with a nonprofit organization that needs their talents.

5. Rolling Out the Debt Snowball Method

There are specific debt repayment methods you can consider as well, including the debt snowball method. Here’s how that works.

First, take a look at your loans and focus on the balances. While you should be making at least the minimum monthly payment on all your loans, the debt snowball method has you put any additional money toward the loan with the smallest balance first.

Once that loan is paid off, you use the money you were paying on the old loan payment amount and roll it over to the next smallest debt. The idea is to continue using this method until all of your loans are paid off. Each time you pay off a loan, it feels like a win that helps you see the progress you’re making.

6. Refinancing or Consolidating Loans

With a refinance student loans, you pay off your existing loans with a new loan from a private lender. Ideally, the new loan will have a lower interest rate, which could lower your monthly payments, or more favorable loan terms.

To see how much refinancing might save you, you can crunch the numbers with a student loan refinancing calculator.

It’s important to be aware that refinancing federal loans makes them ineligible for federal benefits like income-driven repayment plans and federal deferment.

If you have federal student loans, you could consolidate them into a Direct Consolidation Loan, with one monthly payment. The new, fixed interest rate will be the weighted average of your existing interest rates rounded up to the nearest one-eighth of a percentage point.

Consolidation can lower your monthly payment by giving you up to 30 years to repay your loans, but a longer term means more payments and more interest. That’s something to keep in mind if you’re considering student loan consolidation vs. refinancing.

The Takeaway

There are several methods you can use to pay off student loans quickly, including making extra payments toward the loan principal, earning extra income with a side hustle, and loan repayment assistance programs. One or more of these strategies could be the ticket to chipping away at your student debt faster.

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

See if you prequalify with SoFi in just two minutes.

FAQ

What’s the fastest way to pay off student loans?

One of the fastest ways to pay off student loans is to put extra money toward the principal balance on your student loans whenever you can. Not only will this help you reduce the total principal you owe, it will also save you money on the total amount of interest you pay over the life of the loan.

Is it smart to pay off student loans early?

Paying off student loans early can be smart. Paying down your debt faster can help you save money overall and reduce the total amount of interest you’ll pay over the life of the loans. Paying off your loans quickly can also allow you to put more money toward your other financial goals, such as a downpayment on a house or saving for retirement.

How can I find extra money to pay down student loans?

You can find extra money to pay down student loans by using your tax refund or a bonus you get at work and applying those funds to your student loan debt. You could also consider taking on a side hustle to earn extra income to put toward your loan payments.

What are some solutions to student loan debt besides refinancing?

Other solutions to reducing student loan debt include paying more than a minimum balance on your student loans whenever you can and directing that money to the loan principal; making a lump sum payment with any “found money” you get, such as a tax refund or a bonus at work; and checking to see if your employer or state offers student loan repayment assistance.

Should I refinance or pay off student loans faster?

Whether you choose to refinance or pay off your student loans faster is up to you — each borrower should make a decision based on their own financial situation. That said, it is possible to do both. Refinancing may help you pay off your student loans faster if you qualify for a lower interest rate, which can lower your monthly payments, or if you shorten your loan term. Just be aware that a shorter term will likely make your monthly loan payments bigger.

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).

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.

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

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-Q225-017

Jun

2025

What Kind of Emergency Funding Is Available for College Students?

By Jennifer Calonia | Going to College, Student Loans, student_loan | Comments Off

Regardless of your age and life stage, unexpected bills can derail someone’s finances. Unforeseen events can be particularly challenging for college students who don’t have much wiggle room in their budgets.

If you’re a student who’s experiencing financial hardship — or you’re just worried about how to prepare for a rainy day — be assured that help is available to students in need. Emergency financial aid grants are designed to keep students in college through financial setbacks.

We’ll review your options, and the pros and cons of each, so you can feel ready to take on any situation.

Key Points

• Emergency grants for college students provide financial relief for unexpected expenses like medical treatments, job loss, or technology replacement.

• Multiple emergency grant programs remain available to support college students facing sudden financial challenges, even though the federal HEERF program has ended.

• Resources like Achieve Atlanta, UNCF, Scholarship America, and various colleges provide targeted financial aid, with grants typically ranging from $500 to $1,000 to help students stay enrolled during times of hardship.

• Colleges and universities may offer additional emergency support such as tuition assistance, food pantries, and temporary housing.

• Private student loans are available if federal aid and emergency grants are insufficient to cover all educational expenses.

Why You Might Urgently Need More Money as a Student

Students are familiar with seeking financial aid to help pay for tuition, school supplies, and other educational costs. However, some expenses aren’t covered by scholarships and student loans.

Emergency financial aid for college students can help cover the cost of:

• Medical treatments

• Job loss

• Rent increases

• Financial hardship due to COVID-19

• Replacement technology, such as a laptop or phone

• Car repairs

• Loss of athletic scholarship due to injury

• Loss of child care services

Some of these costs are fairly common, while others affect only a small percentage of students. The common thread: They’re all unpredictable and financially challenging.

Emergency Grants Available for College Students

Several emergency grant programs are available to assist college students facing unexpected financial hardships. While the federal Higher Education Emergency Relief Fund (HEERF) has concluded, numerous institutions and organizations continue to offer support, including:

• Achieve Atlanta Emergency Grants: Provides financial assistance to students experiencing unforeseen emergencies that could impact their ability to remain enrolled in school.

• UNCF Emergency Student Aid: Offers “just-in-time” grants up to $1,000 for students at risk of dropping out due to financial hardships like medical bills or car repairs.

• Scholarship America Emergency Aid: Administers emergency financial assistance programs in partnership with various organizations to support students facing financial barriers.

• College Success Foundation Emergency Fund: Provides emergency grants up to $500 per academic year to help students overcome unexpected financial challenges.

• Institution-Specific Programs: Many colleges and universities, such as Chattahoochee Technical College and Kennesaw State University, offer emergency assistance funds to support students dealing with unforeseen financial difficulties.

In addition to the above opportunities, students are encouraged to contact their school’s financial aid office or student affairs department to inquire about available emergency grant programs and application procedures.

Financial Support From Your College

Other emergency college grants and support programs can be discovered through your school. These include:

Emergency Tuition Assistance

Emergency tuition assistance is designed to help students stay enrolled in school when they’re suddenly unable to cover the cost of attendance. Assistance might be in the form of a grant, scholarship, voucher, or other relief.

If you’re at risk of dropping out of school because an emergency is making it hard to pay your school bills, ask your financial aid office about emergency tuition assistance.

Emergency Food Options

Inflation is making it harder for everyone to pay for groceries. If you’re experiencing food insecurity, ask your student affairs office about campus food pantries.
This resource can offer non-perishable goods, like dry pasta, legumes, and canned foods, as well as fresh produce and even basic toiletries.

Emergency Housing

Although not many schools have dedicated emergency housing options for their students, it doesn’t hurt to ask. Reach out to your school’s student affairs department to inquire about short-term emergency housing programs that might be available.

If your school doesn’t offer emergency housing, they might point you to external resources, such as local nonprofits and community groups.

Private Student Loans

If you’ve already maximized the federal undergraduate loans or graduate loans you’re eligible for, a private student loan is an alternative financing option. Private student loans are offered by private lenders, like banks, credit unions, and online financial institutions.

This type of student loan can cover an amount up to the certified cost of attendance, minus the financial aid you’ve already received. Private loans can have fixed or variable interest rates, with rates and terms varying by lender. Keep in mind, though, that private student loans don’t have the same borrower benefits as federal student loans, like loan forgiveness and income-driven repayment, so tread carefully.

Recommended: A Complete Guide to Private Student Loans

The Takeaway

If you’re a student who’s struggling financially due to an unexpected expense or event, help is available. Reach out to your school affairs or financial aid office, explain your situation, and learn about emergency financial aid grants.

If you’ve exhausted all federal student aid options, no-fee private student loans from SoFi can help you pay for school. The online application process is easy, and you can see rates and terms in just minutes. Repayment plans are flexible, so you can find an option that works for your financial plan and budget.

Cover up to 100% of school-certified costs including tuition, books, supplies, room and board, and transportation with a private student loan from SoFi.

FAQ

What are emergency grants for college students

Emergency grants are short-term financial assistance provided to college students facing unexpected expenses that may disrupt their education, such as medical bills, housing insecurity, food shortages, or transportation issues. These grants typically do not need to be repaid.

Who is eligible for emergency grants?

Eligibility varies by program, but most emergency grants are available to currently enrolled students who demonstrate financial hardship due to unforeseen circumstances. Some may require proof of need or enrollment status.

Where can students apply for emergency grants?

Students can apply through their college’s financial aid office or student support services. National organizations like the UNCF, Achieve Atlanta, and Scholarship America also offer emergency grants that students can apply for online.

Photo credit: iStock/photo

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.

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®

SOISL-Q225-034

Jun

2025

What Are the Benefits of Autopay for Student Loans?

By Melissa Brock | Financial Topics, Student Loans | Comments Off

Enrolling in autopay, or automatic bill payments, can make it easier to manage and pay your student loans. Rather than having to make payments every month, autopay does it for you. Your monthly student loan payment comes out of your bank account on time and you don’t even have to think about it.

Autopay has other benefits, too, including potentially saving you money. Read on to learn how automatic repayment plans for student loans work, and why you may want to consider using autopay.

Key Points

• Autopay ensures consistent, on-time student loan payments and reduces the risk of missed payments and late fees.

• Enrolling in autopay can lower interest rates, saving money over time.

• Consider the impact of autopay on monthly budget and cash flow, and ensure bank accounts have enough funds to avoid an overdraft.

• Review accounts regularly to check balances and catch any mistakes.

• Adjust autopay settings as needed to align with financial goals, such as paying more than the minimum due toward student loans.

Understanding Student Loan Autopay

When you sign up for student loan autopay, you are authorizing your lender or loan servicer to automatically deduct your monthly student loan payments from your bank account. You are not responsible for sending the payments yourself. Instead they happen automatically on a recurring basis.

This is how autopay works: Each month, your student loan payments are automatically transferred from your bank account to your loan servicer through an electronic payment system. Typically, your loan servicer will send you a notice of payment in advance of every withdrawal so that you can keep track of them. It’s important to check that you have enough money in your account every month so there isn’t an overdraft.

Recommended: Average Student Loan Debt By Career

Key Benefits of Using Autopay for Student Loans

Besides convenience, there are several other advantages of putting your student loans on autopay.

Interest Rate Reductions

One of the major perks of enrolling in autopay is the potential for an interest rate reduction. Many federal and private student loans offer a discount of about 0.25% just for signing up for autopay.

While the discount may sound small, it can add up over the life of the loan.

Never Miss a Payment

If you miss a federal student loan payment, your loan becomes delinquent the first day after the missed payment. With some private student loans, missed payments may result in late fees. Failing to make payments could also impact your credit, which could make it harder to get a credit card or take out a car loan.

With autopay, your student loan payments will be on time. Just make sure you have enough money in your bank account each month to cover the amount

Potentially Help Build Your Credit Score

Making on-time student loan payments via autopay will be reflected on your credit reports and help you establish a positive payment history. Since payment history accounts for 35% of your credit score, using autopay could help build your credit score over time.

How to Set Up Autopay for Student Loans

Most federal student loans offer autopay, and many private student loans do as well. In fact, as you’re shopping for and comparing private student loans, you can check to see if autopay is an option the lenders offer.

You can set up autopay on your loan servicer’s or lender’s website. Simply confirm that you want to enroll in autopay and provide all the relevant information, including your bank account number and routing number. By default, autopay may be set to pay the minimum amount on your loans. If you’d like to increase the amount paid, you can indicate that during the sign-up process.

If you have federal student loans and you’re not sure who your loan servicer is, sign into your account at StudentAid.gov and scroll to the “My Loan Servicer” section. There, you’ll find your loan servicer’s name and contact information. If you have private student loans, go to your lender’s website to enroll.

You can also set up autopay for student loan refinancing. Simply follow the same instructions as above.

Recommended: Refinancing Private Student Loans

Potential Drawbacks to Consider

While there are benefits to using autopay for student loans, there are also some disadvantages to consider.

• Making just the minimum payment: By default, autopay is often set to deduct the minimum student loan payment each month. If you’d like to pay more every so often to try to repay your debt faster, you’ll need to log into your account and change the payment amount.

• Overdrawing your account: Unless you’re diligent about making sure there are enough funds in your account each month, autopay can make it easier to end up with an overdraft. This could result in your bank charging you overdraft fees.

• Not catching payment mistakes: With automated payments, it’s easier to forget to check your account, which means you may miss errors. For example, your loan servicer might apply a payment incorrectly. Be sure to keep track of your student loans to help ensure that you spot — and correct — any mistakes.

Making the Most of Autopay for Student Loan Management

An automatic repayment plan for student loans can be a great way to stay on top of your student loan debt so that you don’t miss a payment. But don’t just set up autopay and forget it.

Instead, review your account regularly to stay on top of your balance and check for any errors. And increase your payment amount when you can — just log on and change the amount. Making extra payments over time can help you repay your debt faster.

The Takeaway

Whether you have federal or private student loans, or you’re doing a student loan refinance, autopay is an easy and convenient way to make sure your loans are paid on time every month. Autopay is simple to set up and many lenders offer an interest rate discount just for doing so.

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

FAQ

How much can I save with an autopay interest rate reduction on my student loans?

Autopay typically allows you to save about 0.25% on your student loan interest rate. The discount may seem small, but over time, it can add up.

Can I change my autopay payment date if needed?

Yes, you can change your auto payment date. To do it, contact your loan servicer’s customer service department by phone or email and be sure to include your account number. Note that this kind of change request may take three to five business days to process. Your new due date will become effective during a future billing cycle, so ask your loan servicer for written notification of the date.

What happens if I don’t have enough funds in my account?

If you don’t have enough funds in your account, you’ll likely face an overdraft fee. Your bank might also decline the transaction and charge you a non sufficient or insufficient funds fee. Try to stay on top of your account to make sure you have enough money in it before your payments are due.

Do all student loan servicers offer interest rate discounts for autopay?

Many student loan servicers offer interest rate discounts for autopay. The discount is typically about 0.25%. Check with your loan servicer or lender for more information.

Can I use autopay for both federal and private student loans through SoFi?

SoFi does offer autopay for private and refinanced student loans. However, things work a little differently with federal loans. Because SoFi is a private lender, a borrower would need to refinance their federal student loans first in order to use autopay. Just be aware that refinancing federal loans makes them ineligible for federal benefits like deferment and income-driven repayment plans. To set up autopay, simply log into your SoFi account and click on “Set Up” on your Loan Summary page.

photo credit: iStock/Igor Alecsander
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).

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.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

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

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-Q225-002