Fresh Out of School Archives | Page 4 of 51

Apr

2024

Does Refinancing Student Loans Save Money?

By Jamie Cattanach | Fresh Out of School, Student Loans, student_loan | Comments Off

Depending on your specific financial circumstances, refinancing your student loans could save you money — though how much depends on your credit history, how much you owe, what kind of refinancing plan you choose, and more.

In this article, we’ll walk you through how student loan refinancing works and the various ways in which it may save you money in the long term.

What Is Student Loan Refinancing?

Refinancing your student loans essentially means taking out a new loan to cover the cost of your existing loans, and then paying that new loan off instead. You can think of it as trading your old student loan, or loans, for a new one.

Along with saving money, one of the primary reasons people refinance their student loans is to simplify their life and repayment schedule if they have multiple different student loans they’re paying each month. Refinancing may allow the borrower to get a lower interest rate or change their loan terms. Keep in mind, though, that refinancing federal student loans with a private lender makes you ineligible for federal benefits, such as income-driven repayment plans and student loan forgiveness.

The money-saving aspect of refinancing student loans can work a couple of different ways — let’s take a closer look.

How Does Refinancing Student Loans Save You Money?

Student loan refinancing can save you money in a couple of different ways:

• Refinancing may score you a lower monthly payment, which means you’ll have more income available in your budget each pay period.

• Depending on your credit score and how it’s shifted since you took out your original loans, refinancing could also result in a lower interest rate, which may help you spend less on your student loans as a whole (as well as potentially lowering your monthly payment amount).

• Finally, refinancing your student loans may also allow you to repay the loan over a shorter time span (in other words, get a shorter loan term), which can be an easy way to save money in interest over the course of the loan’s overall lifetime and simply help you get out of debt faster.

Of course, all of these various outcomes will depend on your credit history, what kind of refinancing loans you qualify for, and how they stack up compared to your original loan. And keep in mind that lowering your monthly payment might also mean a longer loan term — which means it doesn’t actually save you money in the long run.

Still, for some, a lower monthly payment is a critical path to a healthier overall financial life, so it may still be worthwhile depending on your circumstances.

The best way to figure out if refinancing your student loans will actually save you money is to use a loan calculator to determine how much you’ll pay over the remaining term of your original loan versus the total amount you’ll pay over the entire lifetime of the new loan.

Whichever loan comes up with a lower overall number is the one that saves you the most, but again, under some circumstances, paying more over the long run may make your present-day financial life easier.

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How Much Could You Save By Refinancing Student Loans?

The specific amount you might save by refinancing your student loans depends on many factors, including how much you have left to pay off on your original loan (and its interest rate), your credit history, and your current financial standing.

However, in most cases, if your current loan’s interest rate is 10% or higher, and you have a credit score of 670 and up, chances are you could save some money by refinancing. Let’s take a look at an example.

Let’s say you have $30,000 in outstanding student loans with eight years left on the loan’s term and a 10% interest rate. Over those eight years, with interest, you’d pay a total of $43,701.59, which means $13,701.59 in interest alone.

Now, say you refinance that loan and instead get a new one for the same amount — $30,000 — but with a five-year loan term and a 5% interest rate. Over the lifetime of that loan, you’d pay a total of $33,968.22, or only $3,968.22 in interest. That’s a pretty substantial savings!

However, your monthly payment would go up over $100 for the second loan, from $455.22 to $566.14 — and that’s not including any origination fees or other expenses related to taking out the new loan.

Still, a savings of almost $10,000 in total interest might be worth it for some borrowers.

How Can I Refinance My Student Loans?

Refinancing your student loans is pretty simple these days, thanks to the internet. You’ve already embarked on the first step: research.

Along with researching what it means to refinance your student loans and how doing so might save you money, you should also research different banks and financial institutions that offer student loan refinancing. This allows you to compare and contrast the various programs, including their interest rates, their loan term options, and other features.

Once you’ve found a few companies you feel comfortable with, it may be worth requesting quotes from each of them to learn which will offer the lowest interest rate or monthly payment.

In the majority of cases, you’ll be able to complete the entire application process, from the initial rate quote to the official application, online. You’ll need to provide documentation proving your identity, residence, college graduation (or enrollment), and the loan payoff statements from your current lender.

Other Student Loan Refinancing Tips from SoFi

Ready to take the leap into refinancing for yourself? Here are some tips to help make the process as smooth (and helpful) as possible:

• Shop around for more than just rates. While low interest rates or monthly payments may be attractive, there are other important factors when choosing whom to call your student loan refinancing servicer — such as whether or not you’re able to pay off the loan early without facing penalties.

• Get as many of your ducks in a row as possible ahead of time. The higher your credit score, the better your employment situation, and the lower your other existing debts, the more money you stand to save by refinancing your student loans. Tackle as many of those projects and save as much money as you can ahead of time before applying.

• Consider a cosigner. If your credit history could still use some shining up, adding a cosigner to your application could help boost your chances of getting approved, and possibly for a better rate. But proceed with caution: your cosigner is legally responsible for your loan to the same extent you are, and if you fall behind on your payments, it can impact their credit score, too.

The Takeaway

Refinancing your student loans can help you save money by lowering your interest rate, shortening your loan term, or both. Refinancing may also help you make ends meet in the short-term by lowering your monthly payment.

Note that by refinancing federal student loans, you lose access to federal benefits, such as income-driven repayment plans and student loan forgiveness. If you’re using or plan on using these benefits, it’s best to hold off on refinancing.

However, if you don’t plan on using federal benefits and are hoping to refinance your student loans, consider SoFi. With just a single application, you can compare loan offers from top lenders in just a few minutes.

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

FAQ

What is not a good reason to refinance student loans?

Everyone’s financial circumstances and needs are different, but it’s important to keep in mind that if you refinance federal student loans with a private lender, you may lose access to income-driven repayment plans and federal student loan forgiveness programs, which are not available to those with private loans. However, some private lenders may offer hardship assistance and deferments.

Does refinancing student loans lower monthly payments?

It depends! Refinancing your student loans can lead to many different outcomes depending on your current loans, your credit history, and other factors to do with your financial situation — but yes, in some cases, refinancing your student loans can lower your monthly payments. (However, lower payments may also mean you end up paying more interest on the loan overall.)

How much do you have to make to refinance student loans?

Each bank and lender has its own specific requirements as far as student loan refinance eligibility, and they may or may not specify a minimum income. It’s best to contact the lenders you’re considering and ask them directly what the income requirements are.

Photo credit: iStock/hobo_018

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.

SoFi Student Loan Refinance
If you are a federal student loan borrower, you should consider all of your repayment opportunities including the opportunity to refinance your student loan debt at a lower APR or to extend your term to achieve a lower monthly payment. Please note that once you refinance federal student loans you will no longer be eligible for current or future flexible payment options available to federal loan borrowers, including but not limited to income-based repayment plans or extended repayment plans.

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Apr

2024

How Much Does a Photographer Make a Year?

By Jacqueline DeMarco | Fresh Out of School, Life & Career, relay | Comments Off

The median pay for professional photographers is $40,170 per year, according to the most recent data from the Bureau of Labor Statistics. That said, there is a broad range of earning possible, depending on what kind of photographer a person is and where they live.

Photography may become a more in-demand skill in the future, given what a visual culture exists today. Over the next decade, it’s anticipated that photographers will see job demand increase by 5% between 2022 and 2032, which is greater than the average for all professions.

Read on to learn more about the salary and other facets of a career as a photographer.

Table of Contents

What Are Photographers
How Much Do Starting Photographers Make a Year
What is the Average Salary for a Photographer
Photographer Job Considerations for Pay & Benefits
Pros and Cons of Photographer Salary
The Takeaway
FAQ

Key Points

• The median annual pay for professional photographers is $40,170.

• Earnings vary widely based on the type of photography and geographic location.

• The demand for photographers is expected to grow by 5% from 2022 to 2032.

• Photographers combine technical skills and creativity to capture images across various specialties.

• Entry-level photographers earn less, but income can increase significantly with experience and industry connections.

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What Are Photographers?

A photographer combines technical expertise with creativity and composition skills to produce photographic images. Photographers can get paid to take wedding, family, or pet portraits; cover news events; work for businesses and brands shooting products; or create art — among many other types of photography work.

Many photographers are also skilled in editing photos. If a photographer works for themselves, they can also be responsible for running their business and everything that entails, from advertising to accounting to operations. There are so many directions a photographer’s career can take. Some photographers also teach the art of photography, help plan creative direction for photo shoots, or use drone technology to capture shots from the sky.

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How Much Do Starting Photographers Make a Year?

When they are earning an entry-level salary, how much money a photographer makes is typically on the low end of the spectrum. Their earnings will likely grow as they gain skills and experience and make connections in the industry.

The lowest 10% of photographers earn less than $12.98 per hourly pay. That may be a good starting point if you are wondering about starting salaries.

Keep in mind that photographers in different locations and areas of focus will make an array of salaries. For instance, someone who takes baby portraits for new parents in a small town will likely never earn as much as a high-fashion photographer in a major city who is being paid by corporate clients. The latter could make $100,000 a year or considerably more.

Recommended: What Trade Makes the Most Money?

What is the Average Salary for a Photographer?

The average salary for a photographer can depend a lot, as already noted, on where someone lives. While the median annual income for this role is $40,170, the following table illustrates how the state a photographer chooses to work in can impact their potential earnings and determine if it’s a high-paying job.

What is the Average Photographer Salary by State for 2023

State	Annual Salary	Monthly Pay	Weekly Pay	Hourly Wage
Oregon	$48,870	$4,072	$939	$23.50
Alaska	$48,629	$4,052	$935	$23.38
North Dakota	$48,622	$4,051	$935	$23.38
Massachusetts	$48,041	$4,003	$923	$23.10
Hawaii	$47,595	$3,966	$915	$22.88
Washington	$46,501	$3,875	$894	$22.36
Nevada	$45,979	$3,831	$884	$22.11
South Dakota	$45,953	$3,829	$883	$22.09
Colorado	$45,377	$3,781	$872	$21.82
Rhode Island	$45,265	$3,772	$870	$21.76
New York	$43,131	$3,594	$829	$20.74
Delaware	$42,656	$3,554	$820	$20.51
Vermont	$42,118	$3,509	$809	$20.25
Virginia	$42,039	$3,503	$808	$20.21
Illinois	$42,025	$3,502	$808	$20.20
Maryland	$41,311	$3,442	$794	$19.86
Nebraska	$40,429	$3,369	$777	$19.44
Missouri	$40,178	$3,348	$772	$19.32
California	$40,067	$3,338	$770	$19.26
South Carolina	$39,831	$3,319	$765	$19.15
Pennsylvania	$39,512	$3,292	$759	$19.00
New Jersey	$39,430	$3,285	$758	$18.96
Oklahoma	$39,153	$3,262	$752	$18.82
Maine	$39,132	$3,261	$752	$18.81
Wisconsin	$39,049	$3,254	$750	$18.77
North Carolina	$39,009	$3,250	$750	$18.75
New Hampshire	$38,424	$3,202	$738	$18.47
Idaho	$38,328	$3,194	$737	$18.43
Texas	$38,071	$3,172	$732	$18.30
Kentucky	$37,948	$3,162	$729	$18.24
Wyoming	$37,814	$3,151	$727	$18.18
Minnesota	$37,716	$3,143	$725	$18.13
Michigan	$37,565	$3,130	$722	$18.06
New Mexico	$37,504	$3,125	$721	$18.03
Indiana	$37,314	$3,109	$717	$17.94
Ohio	$36,661	$3,055	$705	$17.63
Arizona	$36,543	$3,045	$702	$17.57
Connecticut	$36,357	$3,029	$699	$17.48
Mississippi	$36,102	$3,008	$694	$17.36
Iowa	$36,056	$3,004	$693	$17.34
Montana	$35,992	$2,999	$692	$17.30
Arkansas	$35,860	$2,988	$689	$17.24
Alabama	$35,543	$2,961	$683	$17.09
Utah	$35,026	$2,918	$673	$16.84
Tennessee	$35,001	$2,916	$673	$16.83
Kansas	$33,992	$2,832	$653	$16.34
Georgia	$33,110	$2,759	$636	$15.92
Louisiana	$32,930	$2,744	$633	$15.83
West Virginia	$30,515	$2,542	$586	$14.67
Florida	$29,303	$2,441	$563	$14.09

💡 Quick Tip: Income, expenses, and life circumstances can change. Consider reviewing your budget a few times a year and making any adjustments if needed.

Photographer Job Considerations for Pay & Benefits

While photographers can often choose to set their own rates, they are also usually self-employed and therefore responsible for securing their own benefits. For instance, they won’t have access to an employer-sponsored 401(k) plan or healthcare benefits. There are some exceptions to this rule. For example, if a photographer works for a large corporation or photo studio, they may receive access to traditional employee benefits like paid time off and a retirement plan contribution match.

Other considerations can be how a career as a photographer can impact your lifestyle. If you are a news photographer, you may find that you have to be available for extended periods, whenever a situation comes up that needs documenting. If you are a travel photographer, which can sound like a dream job, you likely won’t have a typical week-to-week schedule. And if you are a wedding photographer, you will likely be spending many weekends shooting ceremonies vs. kicking back with your family.

There are some photography jobs, such as taking pictures of a product, that may not involve that much social interaction, but many kinds of photography careers do involve working with people non-stop. For this reason, it may not be the best job for antisocial people.

Pros and Cons of Photographer Salary

The main advantage of a photographer’s salary is there is no real cap on how much they earn. For example, in-demand wedding photographers or photographers who license their images for products can all demand high rates for their work. On the flip side, their salaries are often not consistent, which can be very stressful. Also, when you are self-employed, taxes can take a bite out of your earnings.

Recommended: What Is Competitive Pay?

The Takeaway

Working as a professional photographer can be a creatively fulfilling, fun, and lucrative career. Worth considering, though: How much a photographer stands to make depends a lot on their specialty, where they live, and their level of experience.

See exactly how your money comes and goes at a glance.

FAQ

Can you make 100k a year as a Photographer?

It is possible to earn $100,000 or more a year as a photographer — the sky really is the limit when it comes to income potential in this field. However, the median annual income for this role is $40,170, but photographers can earn more over time as they gain experience and a strong reputation in their industry.

Do people like being a photographer?

Many people who pursue a career in photography do so because it is a creative pursuit they are truly passionate about. Many positions can provide flexibility and fun experiences (say, if you are a travel or wedding photographer).

Is it hard to get hired as a photographer?

It can be very hard to find a job as a photographer if you don’t have the skill set required to get the job done well. Taking some time to build a strong portfolio of your work and then marketing your business can make it much easier to get hired.

Photo credit: iStock/ivan101

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*Terms and conditions apply. This offer is only available to new SoFi users without existing SoFi accounts. It is non-transferable. One offer per person. To receive the rewards points offer, you must successfully complete setting up Credit Score Monitoring. Rewards points may only be redeemed towards active SoFi accounts, such as your SoFi Checking or Savings account, subject to program terms that may be found here: SoFi Member Rewards Terms and Conditions. SoFi reserves the right to modify or discontinue this offer at any time without notice.

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.

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

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Mar

2024

7 Federal Programs That Help Borrowers Pay Off Student Loans

By Melissa Brock | Fresh Out of School, Student Loans, student_loan | Comments Off

Approximately 61% of college graduates have student loan debt, according to data from the National Center for Education Statistics, and most of that money owed (more than 90%) is in the form of federal student loans. In other words, if you have student debt, you are not alone.

Federal student loan programs are funded by the federal government, and while virtually no one likes being in debt, there’s an upside here. These programs can not only help you pay for college but also repay what you owe in different ways, to suit your particular situation.

In this guide, you’ll learn about the types of federal student loans available and the tactics federal student loan borrowers can use to eliminate their debt. There’s likely to be a plan that helps you balance your budget and enjoy life while paying off what you owe.

Types of Federal Student Loans

The types of federal student loans include the following. The federal student loan program includes the Direct Loan program, and the Direct Subsidized, Unsubsidized, PLUS, and Consolidated loans exist under that umbrella.

• Direct Subsidized loans: Direct Subsidized loans help undergraduate students (who are eligible and demonstrate financial need) cover the education costs. In terms of when the interest accrues, that doesn’t happen while you are in school at least half-time or during deferment.

• Direct Unsubsidized loans: Direct Unsubsidized loans, on the other hand, help undergraduate, graduate, and professional students cover the costs of education. These loans are not need-based, but the government does not cover the interest while you’re in school.

• Direct PLUS loans: Graduate or professional students and parents of dependent undergraduate students can get Direct PLUS loans. You do not have to demonstrate financial need to get a Direct PLUS loan, but you must undergo a credit check.

• Direct Consolidation loans: Direct Consolidation loans let you combine your eligible federal student loans into a single loan with a single loan servicer. This helps reduce the complexity of paying on multiple loans.

How do you get a federal student loan? You file the Free Application for Federal Student Aid (FAFSA), and as long as you’re eligible for federal student aid, the financial aid will appear on your financial aid package at the school you apply for.

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

Federal Programs for Student Loan Borrowers

Among the federal programs for student loan borrowers are government grants and tax deductions, as well as federal student loan programs that can help with repayment. Among these are income-driven repayment plans, deferment and forbearance, and forgiveness. Here’s a closer look at some of your potential options as you pay off student loans (yes, you will make it happen).

1. Government Grants

Federal grants can also help cover college costs for students attending college or career school. You don’t have to pay back grant money unless you fail to meet the qualifications for the grant. (In this way, they aren’t repayment plans but coverage of educational costs upfront.)

For example, you may be able to take advantage of a Pell Grant or a Teacher Education Assistance for College and Higher Education (TEACH) grant.

• Pell Grant: The Pell Grant is a need-based grant awarded by the US Department of Education to undergraduate students with high financial need. The Federal Pell Grant maximum is $7,395 for the 2023-2024 award year between July 1, 2023 and June 30, 2024.

• TEACH Grant: The TEACH Grant offers funds to students who plan to teach full-time for at least four years in a high-need field. They must meet the service obligation after graduation. For example, they must work in a low-income elementary school, secondary school, or educational service agency.

2. Income-Driven Repayment Plans

When it comes time to pay off federal student loans, the Department of Education has the following income-driven repayment plans, which aim to keep student loan payments at a comfortable level:

• Saving on a Valuable Education (SAVE) plan: The SAVE plan, which replaces the REPAYE plan, calculates your monthly payment amount based on your family size and income. It offers the possibility of forgiveness in as little as 10 years for some borrowers, and the payment cap is 10% of discretionary income and that may drop to 5% for some from the summer of 2024 onward.

• Pay As You Earn (PAYE) Repayment plan: The PAYE plan means your monthly payments equal to 10% of your discretionary income, divided by 12. It will never amount to more in payments than the 10-year Standard Repayment plan amount. Expect a 20-year term.

• Income-Based Repayment (IBR) plan: The IBR plan means your monthly payments are equal to 10% (15% if you’re an older borrower whose loans date to before July 1, 2014) of your discretionary income. Repayment terms are 20 years for new borrowers; 25 years for older borrowers.

• Income-Contingent Repayment (ICR) plan: The ICR plan means you’ll make monthly payments — the lesser of what you would pay on a repayment plan with a fixed monthly payment over 12 years or 20% of your discretionary income, divided by 12. The term is typically 25 years.

💡 Quick Tip: Refinancing could be a great choice for working graduates who have higher-interest graduate PLUS loans, Direct Unsubsidized Loans, and/or private loans.

3. Tax Deductions

Looking for good things about filing your taxes? Here’s one: When you claim the student loan tax deduction, you claim the interest you paid on your student loans, whether they are federal or private. You can deduct student loan interest up to $2,500; you don’t need to itemize to get the deduction.

To be eligible to deduct student loan interest, you must pay interest on a qualified federal or private student loan for you, your spouse, or a dependent child during the tax year. You must meet modified adjusted gross income (MAGI) requirements, which is your annual gross income minus certain deductions. You must not have a filing status of married filing separately, and someone else may not claim you as a dependent.

4. Military Service

You may remember the original G.I. Bill from history class, which allowed military service members to attend school after World War II. You can still get help paying for school if you currently serve in the military.

The branches of the United States Military offer loan payment programs that can help you pay off your federal student loans, such as the Air Force JAG program, Army College Loan, Army Reserve Loan, National Guard Loan, and Navy Student Loan repayment options.

Research how military loan repayment programs work for your respective military branch to potentially pay off a significant portion (or even all) of your student loan debt.

5. AmeriCorps

You can also consider using AmeriCorps as a vehicle for paying off your student loans. AmericCorps is an organization through which individuals can dedicate themselves to service and volunteering in the United States.

AmeriCorps volunteers can qualify for Public Service Loan Forgiveness (PSLF), meaning they can get their federal Direct student loans forgiven (“forgiveness” means you don’t have to pay back the loan and can stop repayment) after making 10 years (120 months) of qualifying payments. AmeriCorps service is considered the “employer” for PSLF.

6. Deferment and Forbearance

Deferment and forbearance are similar in that they allow federal loan borrowers to temporarily lower or stop making payments on their federal student loans for a certain period. The steps to achieve deferment and forbearance are also usually the same: Contact your loan servicer, submit a request, and provide the requested documentation.

However, the main difference is that interest does not accrue on some Direct Loans during a deferment. When your loan is in forbearance, you must pay the interest that accrues on your loans.

7. Forgiveness

Another option if you’re looking to pay off federal student loans could be forgiveness. As noted above, this term means that you don’t have to pay back some or all of your federal student loans.

As with serving in AmeriCorps, you may be able to get your federal student loans forgiven via the PSLF program if you work for a government or nonprofit organization. The PSLF program forgives the remaining balance on your Direct loans after you make 120 qualifying monthly payments under an accepted repayment plan and as long as you work full-time for an eligible employer.

You may also receive forgiveness of up to $17,500 on Direct Subsidized and Unsubsidized loans under the Teacher Loan Forgiveness (TLF) program. You may receive forgiveness if you teach full-time or complete five years in a low-income school or educational service agency and meet other qualifications. You may also receive forgiveness for consolidation loans, which occurs when you combine all your loans into one payment.

Note: Private student loan forgiveness is not available as it is with federal student loans. Still, there are avenues you can pursue if you are struggling to repay what you owe, such as discussing hardships with your private loan lender or seeking credit counseling.

The Takeaway

The majority of college graduates have student loan debt, and paying it off can be a stressful process. But there is help. If you have federal student loans and are looking for ways to pay them off as affordably as possible, you likely have plenty of options. Tapping into income-based repayment plans, considering military service or AmeriCorps, deferment, forbearance, or forgiveness can help you as you work to manage and eliminate those student loan payments.

For some people, refinancing their federal loans with a private loan may make sense and be a way to lower their payments or speed up their repayment schedule. However, it’s important to note the following:

• If you refinance federal loans with a private loan, you forfeit access to federal protections and benefits, such as the deferment, forbearance, and forgiveness programs mentioned above.

• If you refinance for an extended term, you may pay more interest over the life of the loan, so think carefully if this suits your overall financial picture.

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.

Photo credit: iStock/PeopleImages

SoFi Student Loan Refinance
If you are a federal student loan borrower, you should consider all of your repayment opportunities including the opportunity to refinance your student loan debt at a lower APR or to extend your term to achieve a lower monthly payment. Please note that once you refinance federal student loans you will no longer be eligible for current or future flexible payment options available to federal loan borrowers, including but not limited to income-based repayment plans or extended repayment plans.

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.

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.

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

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Mar

2024

30 Tips for Joining the Real World

By Kaitlyn Farley | Fresh Out of School, Life & Career, student_loan | Comments Off

Woo-hoo! You have your degree, perhaps a job offer, a place to live with a chill roommate, and you’ve found your favorite cafe where the cold brew is just right. Life is great, right?

Yes, it is. Even if you don’t have all of the items above checked off. Starting your independent, post-school life is an exciting time, and it’s a moment to learn all sorts of adulting skills.

To help you with that, here are 30 things to consider, learn, or do to help you as you discover everything from how to speak up in meetings to how to find an in-network doctor. Just as you were probably on the receiving end of a lot of tips for college or freshman advice, now it’s time to level up on post-grad life.

30 Tips for Recent College Grads

Whether you’re just out of college or several years out, you’re hardly alone if you feel you have lots of questions about post-grad life and how to live it. Read on for tips for joining the real world and finessing your finances, career, and personal life.

1. Tackle Your Overall Financial Situation

Your finances can include a ton of stuff, especially as you get older and your investments and income become more complex. But at its most basic, understanding your financial situation means knowing your credit score, taking stock of your outstanding debts, figuring out ways to pay off student loans (if you haven’t already), and understanding what your monthly bills are.

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

2. Embrace a Budget

Here’s another bit of advice for college grads: Once you know how much money you have, owe, and make, it’s time to figure out your budget. Even if you have one already, post-graduation is a perfect time to reconsider your budget and make updates as needed. Never made one before? The popular 50/30/20 budget can be a smart start.

3. Learn About Job Perks

No matter if your job is still shiny and new or an old hat at this point, it’s good to take time to review your employee handbook for perks you may have overlooked. Check out your company’s retirement plan types and health insurance plans. You’ll also want to review potential bonuses and perks, such as free gym memberships, commuting stipends, and the like.

4. Start Saving for Retirement

Seriously? Yes! This may not be the most fun thing to review (and likely wasn’t part of your college advice), but your future self will thank you. Take time to learn about a 401(k) plan that may be available at work and hopefully enroll. You want to at least contribute enough to get any company match, which is like free money.

No job yet or retirement plan you qualify for? Spend a bit of time learning about the different kinds of IRAs.

5. Evaluate Your Housing Costs

Location, local, location, right? Depending on said location, it can be hard to find affordable housing or even a job if your industry isn’t hot in your market. Before signing on the dotted line, consider how much home you can afford to rent. It can be expensive to live alone; having roommates can be a great way to save money.

6. Check Your Social Media

Even if you’ve already got a job, you may want to take stock of your social media. A professional online presence may help prevent current or future employers from second-guessing about hiring you. Those wild nights out with friends definitely don’t need to be broadcast via an account that’s public.

7. Network

Networking is crucial to helping you achieve your career goals. Whether through industry conferences or social media sites like LinkedIn, it’s smart to stay connected with professionals in your industry to get career advice and learn about job openings you may be the perfect fit for.

8. Schedule Some “You” Time

Even if you’ve already got a job, you may want to take stock of your social media. A professional online presence may help prevent current or future employers from second-guessing hiring you.

9. Start an Emergency Fund

Life is full of the unexpected, and that’s why it’s smart to have an emergency fund. Once you have a steady income, it’s wise to start an emergency fund, perhaps by a recurring automatic transfer into savings. Start slow and steady, and aim to build up to at least three to six months’ worth of living expenses in the bank. This will help protect you if you have an unexpected major car repair bill or job loss.

10. Find Your Medical Team

This tip is especially important if you’ve moved to a different state or city. Out-of-network bills can be costly, so having a doctor and knowing which hospitals are in-network can help you save money and stress in the long run. Ask coworkers, do online research, and don’t forget to explore where the nearest and best urgent care centers are.

11. Snag a First-Aid Kit and Emergency Bag

This may sound like your parents or grandparents talking, but no one sees an accident or disaster coming. You could get burned cooking brunch one Saturday, or a major storm could sweep through and leave you without power.

Store-bought first aid kits may be good starting points, but extra bandages, allergy relief pills, antacids, and other over-the-counter medicines will take your kit to the next level.

If you’re inclined to ready an emergency go-bag, consider packing at least three days’ worth of clothes, a mini first aid kit, cash, a flashlight, and other provisions you think you (and your pets or loved ones) may need if you need to leave your home in a rush.

12. Consider Life Insurance

Yes, you are young. But if your employer offers life insurance as a benefit, you may be wondering what it is — and whether you need it or should even pay more to increase the amount. So, how about a little research? Understanding life insurance policies can help you make the right decision for you. Even if you decide you don’t need it right now, you’ll be better prepared to sign up when the time is right.

💡 Quick Tip: If you have student loans with variable rates, you may want to consider refinancing to secure a fixed rate in case rates rise. But if you’re willing to take a risk to potentially save on interest — and will be able to pay off your student loans quickly — you might consider a variable rate.

13.Dive into Hobbies

Not everything you do has to relate to your career. In fact, it’s likely healthier if you have interests outside of your career. You can learn to play instruments, sing, run, join a local soccer team, play games online, or enjoy any other hobby that helps you unwind and relax. Or maybe you’ll want to give back and spend some time planting at a local park or prepping meals at a soup kitchen. Find some passions, and pursue them.

14. Tackle Your Taxes

Welcome to the world of taxes, which likely wasn’t part of your college advice. But now, if you’re employed (full-time, part-time, seasonally, side hustle, or whatever), it’s time to learn how to prepare for tax season, which can help you avoid filing them late. Whenever you get an important piece of paperwork that’ll affect your taxes (such as W2s, charitable contribution receipts, or even home office receipts), you can put these in a safe place so you’re ready to go come tax time.

Then, determine if you’ll do your taxes yourself (say, with tax software) or work with a income tax preparer to get your return in on time.

15. Find Your Work-Life Balance

Each person has their own idea for work-life balance. If you’re not sure what yours is, consider taking the first few months on the job to figure that out. Being a good employee, for instance, doesn’t have to mean being the first person at the office in the morning and the last one out at night. If you feel tired or overwhelmed, it may be time to dig into and renegotiate those work-life boundaries.

16. Master Basic Home Repairs

Home repair costs can add up (especially as the years unfurl). You could save a lot by doing them yourself, especially if or when you own your own place and don’t have a landlord to pay for those costs. Such problems as a clogged sink, broken light switch, and dripping shower head may be easier than you think to fix.

If you do have a landlord, you might even get a discount on your rent by making simple repairs yourself. Just be sure to get a signed agreement from your landlord outlining how that will work.

17. Be Smart About Subscriptions

Monthly subscriptions can be so appealing, whether that means Japanese snack of the month club, exercise gear, or language lessons via a fun app. But these add up over time, and it’s easy to forget how many you have going at a given moment. Consider looking at what you’re actually subscribed to. Do you really need Max, Hulu, Peacock, and Netflix, or could you save on streaming services by dropping one (or two)? And do you really need so many gym passes and coffee clubs? Take a closer look, and spend less.

18. Learn to Cook

Takeout is great, but you could save money on food and healthy up your meals if you cook at home. It’s also helpful to plan your groceries ahead of time to avoid overspending and food waste. Plus, it’s a fun pursuit with loads of free recipes and cooking videos available online. Invite a friend over and make it a social occasion.

19. Speaking up in Meetings

If you think you don’t have much to add to the conversation, agreeing with what someone has said — and tacking on an extra thought — can be a way to participate and not feel like a wallflower.

20. Tweak Your Sleep Hygiene

Getting enough high-quality sleep can be a key contributor to your wellness. Going to sleep around the same time every night can help to ensure you get enough zzz’s so you can make good decisions and keep healthy habits. And here’s a reminder that taking your mobile device to bed with you is likely to lead to an hour or more of rabbit holes that rob you of your rest.

21. Invest Some Money

The idea of investing may sound intimidating, but you don’t have to be a Wall Street wolf to invest. Many rookies start small. Learn more about investing in your 20s and perhaps open an account.

22. Find a Mentor

If there’s someone higher up the ladder at your workplace with whom you click and who offers great guidance, ask them out for coffee to learn more about how their career progressed and see what advice they might share. You might wind up under their wing. You can also look for guidance via a professional group; you might find a mentor at a summit or similar event.

Mentors can often help you navigate your workplace, offer advice, and keep you motivated and sane when things get stressful. They also have contacts that may be helpful for you to know.

23. Change Your Mind

You’ve probably heard that tons of people end up with jobs outside of what they studied, even after getting a master’s or MBA. It could be that there aren’t a lot of jobs in that field –or maybe they realized that what’s interesting in theory is not in practice. If this turns out to be the case for you, just remember that fulfillment can be found outside of work. And people can change their minds.

24. Get Help

Unemployment, Medicaid, and other social nets exist for a reason. There are going to be choppy waters, and these services are meant to help. Using them because you got laid off or furloughed isn’t shameful. And if you can’t find employment, that’s another reason to get support vs. staying silent and toughing it out.

25. Put Home Maintenance on Your Calendar

When was the last time you cleaned your dryer vents? Do you know how to change the filter in your HVAC? Avoiding these kinds of things for too long can result in big maintenance bills — and potentially be a safety hazard. Not sure what to clean? Check out a house maintenance list and put reminders in your mobile device’s calendar.

26. Travel

Hopping on a plane and traveling to far-flung places can get a lot harder to do the more “adult” you become. It can be harder to take time off work, and perhaps you’ll have a family, meaning you will need a bigger travel budget. Now, when you’re young and probably okay with “roughing it,” it’s possible to travel cheap!

27. Learn to Say No

When you were younger, you probably didn’t have a lot of say in things; you did what your parents or professors said you had to. How times have changed! Don’t want to go out for drinks? Can’t finish that report by Monday? Your best bet may be to just be honest. Taking on too much may only backfire, so learning to say no without feeling guilty can be important for your mental health and work-life balance.

28. Avoid Lifestyle Creep

As time passes, you may well get raises and bonuses. And lifestyle creep can become a problem. What’s that? It’s the situation in which the more your income increases, the more you spend. While a pay raise may mean you can splurge a bit, if you wind up renting a bigger house, leasing a luxury car, and treating yourself to a week in Tulum, you could wind up in the hole. Instead, treat yourself within reason, and plow more money into savings, such as for a down payment on a future home.

29. Outfit Your Home Office

Are you going to be working from home for some or all of your week? Having ergonomic, comfortable, and functional furniture can help keep your back and neck from hurting and your mind from getting distracted. Don’t just perch on the couch or in bed with your laptop. Scan home office ideas if you’re in need of some inspiration.

30. Give Back

You’re joining the ranks of adults, so do the right thing and find a way to contribute and help others. Maybe you can spend some time on the weekend at a Habitat for Humanity site or make a charitable donation to a favorite cause.

The Takeaway

Your post-college years can be exciting and fun but also a bit confusing and challenging at times. Start with a few items on this list, and work your way through to build your life skills, launch your career, and manage your money confidently.

And if your student loan payments are getting in the way of you living your best post-college life, you may want to consider refinancing your student loans.

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

Photo credit: iStock/Rattankun Thongbun

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

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

Third-Party 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.

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Mar

2024

Applying for Economic Hardship Deferment

By Casey Bond | Fresh Out of School, Student Loans, student_loan | No Comments

Managing student loan payments can feel like a part-time job. It can be even more overwhelming if you’re experiencing financial trouble, whether that’s due to a job layoff, caring for a family member, or for another reason.

The good news is there are options available to those going through a rough financial patch, including the Economic Hardship Deferment program. But even then, it can be difficult to navigate all of the information on which deferment program you may be eligible to apply for based on the reason for your hardship and the type of student loans you have. So that’s what we’re going to discuss today.

Economic Hardship Deferment, also known as student loan financial hardship, is a program offered in certain cases on federal student loans for borrowers who are eligible and having an exceedingly difficult time making their student loan payments for financial reasons.

Below, we’ll discuss the Economic Hardship Deferment program and what it means for you and your loans, who qualifies to make a hardship claim for student loans, how to apply for the program, and whether it’s the right path for you. We’ll also cover alternatives to Economic Hardship Deferment.

What Is Economic Hardship Deferment?

Student loan deferment allows you to reduce or pause your student loan payments for a designated period of time. An Economic Hardship Deferment is awarded to those who are facing serious financial trouble, as determined by factors such as monthly income and family size.

Those approved for the program can take up to 36 consecutive months of deferment so long as they still meet the qualifications. All participants (except those in the Peace Corps) need to reapply each year.

An important distinction to understand is whether your loans will qualify for a deferment period where interest will accrue, or one where interest does not accrue. Generally, loans that are subsidized will not accrue interest during deferment, whereas an unsubsidized loan will.

In the event your loan qualifies for deferment but will continue to accrue interest, you’ll usually have two options: Make interest-only payments on the loan, or allow interest charges to rack up.

When you allow interest charges to accumulate on an unsubsidized loan, that interest will be tallied up and added to the balance of the loan at the end of the period. This is a process called “capitalization.”

Not only will you have a new, larger balance to pay off, but any future interest payments will be calculated on top of the new, higher balance, meaning you’re paying interest on top of interest. All else equal, the result is that your monthly payments will likely be even higher than they are now.

Which Loans Qualify for Economic Hardship Deferment?

This is a federal loan program, and not all federal loans qualify. Here are a few examples of loans that may qualify (and check the link below for a full, updated list of eligible loans):

• National Direct Student Loans (NDSL Loans)

• Federal Family Education Loans (FEEL Loans)

• Federal Stafford Loans

• Federal Perkins Loans

• Federal Supplemental Loans for Students (SLS Loans)

• Federal PLUS Loans

• Federal Consolidation Loans

• National Defense Student Loans

The Economic Hardship Deferment program is typically available for loans borrowed on or after July 1, 1993.

The Economic Hardship Deferment program is only available for federal student loans, so private loans borrowed through independent financial institutions won’t qualify. However, some private lenders offer their own hardship programs. If your lender offers such a program, they will have their own unique qualifications and application process.

It certainly doesn’t hurt to ask if you are in a difficult financial situation. Remember, lenders don’t want you to default on your loans, and are often willing to work with borrowers to find some sort of solution. With both federal and private loans, never hesitate to call the lender, discuss your situation, and explore options.

Who Qualifies for Economic Hardship Deferment?

To make a hardship claim for student loans, you will have to fill out paperwork and provide documentation proving that you are experiencing financial hardship. Some of the eligibility criteria for an Economic Hardship Deferment will depend on your income, family size, and the poverty income guidelines for your family size in the state where you live (150% of the state poverty level or less). It will also depend on what percentage your student loan payment is of your monthly adjusted gross income.

To qualify for Economic Hardship Deferment, you will need to provide personal information such as your name, Social Security number, and address. You’ll also need to know what type of loan you are requesting economic hardship deferment for.

Here are some examples of what you may need to prove to the loan servicer evaluating your eligibility for deferment:

1. You’ve already been granted Economic Hardship Deferment on loans made under another federal student loan program.

2. You’re receiving payments under a federal or state public assistance program during the time in which you request your loan deferment. Examples of such programs include Temporary Assistance for Needy Families (TANF), Supplemental Security Income (SSI), Food Stamps/Supplemental Nutrition Assistance Program (SNAP), or other forms of state assistance.

3. You are serving as a Peace Corp volunteer.

4. You work full-time (30 hours per week) and your monthly income does not exceed 150% of the poverty guideline for your family size and state.

Here’s how to tell if you meet this last guideline: First, determine your family size. This includes you, your spouse, any children who receive more than half of their support from you, any unborn children who are to be born during the deferment period, and anyone else living with you for whom you provide at least half of their support.

Next, find your family size on the following table, and compare it to your annual income (divide by 12 to get your average monthly income).

Family Size	Alaska	Hawaii	All Other States
1	$18,210	$16,770	$14,580
2	$24,640	$22,680	$19,720
3	$31,070	$28,590	$24,860
4	$37,500	$34,500	$30,000
5	$43,930	$40,410	$35,140
6	$50,360	$46,320	$40,280
7	$56,790	$52,230	$45,420
8	$63,220	$58,140	$50,560
Each additional person, add	$6,430	$5,910	$5,140

These figures are from 2023 and are subject to change annually.

You are likely to qualify for the student loan financial hardship program as long as you meet one of these prerequisites. If that is the case, and you would like to pursue the option, contact your lender or student loan servicer. Tell them you would like to apply for Economic Hardship Deferment. At this point, they typically ask you a series of questions and have you fill out an Economic Hardship Deferment Request form.

Pros and Cons of Economic Hardship Deferment

Pros

For someone who is in desperate need of reprieve from their student loan payments, the program can be a godsend. You may want to consider taking advantage of this program if the alternative is defaulting on student loans, which can have a long-lasting, detrimental effect on your credit score and history.

If your loans are subsidized, there is no cost to taking an Economic Hardship Deferment.

Periods of deferment are provided to borrowers who need time to find a job, increase their income, or recover from the many myriad of life events that could leave someone in a place of need. There is no shame in this, whatsoever, but it’s a great idea to use the deferment period to work on rebuilding.

Cons

With unsubsidized loans, taking a period of deferment will make the loans in question cost more over time. Even if you make interest payments during your deferment, you aren’t chipping away at the principal, and so all of those payments are essentially a wash. If you don’t make interest payments, the total value of those unpaid interest payments will be slapped on top of the loan balance, increasing your loan balance and the amount you’ll owe in interest, over time.

When the period of deferment ends, your monthly payment will likely be higher than it is now, which may be difficult for someone who is already experiencing financial hardship. Use the program if you need it, but know it can come with some costs in the long term.

It is also extremely difficult to qualify for Economic Hardship Deferment. The program utilizes stringent criteria to determine eligibility with income review using poverty level guidelines as noted above. (For example, a single person working full-time and earning $20,000 per year and living in California who is not already on food stamps or other forms of government assistance would probably not qualify for Economic Hardship Deferment.) This makes the program unavailable to many people who are legitimately having difficulty making their loan payments.

Alternatives to Economic Hardship Deferment

Forbearance

If you do not qualify for Economic Hardship Deferment, an option is to request forbearance. Forbearance is similar to deferment, though interest accrues in all cases, and periods of forbearance generally do not exceed 12 months (and could be shorter). You’ll need to check with your loan servicer to see if you qualify.

Income Driven Repayment Plans

There are four income-driven repayment plans, including the latest SAVE plan, that help make student loan payments more affordable by reducing them to a percentage of your discretionary income. SAVE, for example, caps your payments at 5% to 10% of your income, depending on the types of loans you have. Under other plans, your payments may be capped at anywhere from 10% to 20% of your income.

IDR plans also stretch your repayment timeline out up to 25 years. If you have any debt left over after than, it’s forgiven (though it may be subject to income taxes).

Though your monthly payments will be lower, which provides some immediate relief, you will pay significantly more in interest over time. It is possible to switch to an alternative repayment plan and back again if your financial situation improves.

Public Student Loan Forgiveness (PSLF) Program

With 10 years of on-time payments at a qualifying job (like a government worker, a teacher, a doctor, or nurse at a qualifying facility), it is possible to have student loans forgiven with the PSLF program. If you go this route, you’ll usually want to switch to an income-driven repayment plan.

Student Loan Refinancing

Another option to consider for both your federal and private student loans is student loan refinancing. Refinancing is the process of switching out your loan or multiple loans with one new loan at an (ideally) lower rate of interest.

The lower rate of interest could save you money on interest payments over the life of the loan. Use a student loan refinancing calculator to see how lower interest rates affect your monthly payments.

It’s important to know that if you refinance federal loans with a private lender, you will lose access to federal student loan programs such as Economic Hardship Deferment or PSLF.

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

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What Is Student Loan Refinancing?

How Does Refinancing Student Loans Save You Money?

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The Takeaway

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Does refinancing student loans lower monthly payments?

How much do you have to make to refinance student loans?

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Types of Federal Student Loans

Federal Programs for Student Loan Borrowers

1. Government Grants

2. Income-Driven Repayment Plans

3. Tax Deductions

4. Military Service

5. AmeriCorps

6. Deferment and Forbearance

7. Forgiveness

The Takeaway

30 Tips for Joining the Real World

30 Tips for Recent College Grads

1. Tackle Your Overall Financial Situation

2. Embrace a Budget

3. Learn About Job Perks

4. Start Saving for Retirement

5. Evaluate Your Housing Costs

6. Check Your Social Media

7. Network

8. Schedule Some “You” Time

9. Start an Emergency Fund

10. Find Your Medical Team

11. Snag a First-Aid Kit and Emergency Bag

12. Consider Life Insurance

13.Dive into Hobbies

14. Tackle Your Taxes

15. Find Your Work-Life Balance

16. Master Basic Home Repairs

17. Be Smart About Subscriptions

18. Learn to Cook

19. Speaking up in Meetings

20. Tweak Your Sleep Hygiene

21. Invest Some Money

22. Find a Mentor

23. Change Your Mind

24. Get Help

25. Put Home Maintenance on Your Calendar

26. Travel

27. Learn to Say No

28. Avoid Lifestyle Creep

29. Outfit Your Home Office

30. Give Back

The Takeaway

Applying for Economic Hardship Deferment

What Is Economic Hardship Deferment?

Which Loans Qualify for Economic Hardship Deferment?

Who Qualifies for Economic Hardship Deferment?

Pros and Cons of Economic Hardship Deferment

Pros

Cons

Alternatives to Economic Hardship Deferment

Forbearance

Income Driven Repayment Plans

Public Student Loan Forgiveness (PSLF) Program

Take control of your student loans.
Ditch student loan debt for good.

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