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Credit counseling services can be a smart way to access professional financial advice at a low cost — or, in some cases, even for free. Usually nonprofits, credit counseling organizations can offer educational materials, workshops, and one-on-one counseling with trained financial professionals to help you make an achievable plan to repay your debts, set up a sustainable budget, and more.

It’s important to understand, however, the difference between credit counseling organizations and debt settlement agencies. The latter are usually for-profit companies that may not always be acting with your best interests in mind.

Here’s what you need to know about credit counseling, including how to tell when you might need it.

What Is Credit Counseling?

Credit counseling is a free or low-cost service offered by what are usually nonprofit organizations. Credit counselors can work with you one-on-one to offer fiscal advice and get your finances in order. For example, a credit counselor might help you:

•   Plan a debt repayment strategy

•   Create an overall debt management roadmap

•   Set up or retool your budget

•   Learn how to get a free and accurate copy of your credit report and scores

Many credit counseling services also offer educational resources, like flyers or online information, and workshops or classes that can help many people learn more about how to manage their money at once.

In some cases, credit counselors may offer to reach out to your creditors directly to negotiate with them, which could help you save money. Counselors may be able to get late fees waived, attain a longer repayment period, or ask for lower interest rates.

However, this is not the primary or sole function of credit counseling agencies, and not all credit counselors offer this service.

How Does Credit Counseling Work?

Every individual credit counseling agency is different, and they each have their own process that they can walk you through. But in most cases, you’ll be offered an initial consultation with a credit counselor, which may take place online, in person, or over the phone.

During this meeting, the counselor will likely ask a series of questions about your financial standing, and may help you develop a budget or create a debt repayment plan on the spot. Depending on your needs, follow-up appointments may be offered, and you may also get invitations or access to free classes, workshops, educational resources, and more.

In all cases, a credit counseling agency should have your best interests at heart, and should be willing to offer you free information about their services. If a credit counseling agency requests you to pay high fees or pay up front, or refuses to work with you if you can’t afford to pay, you should look for a different organization.

Credit Counselors vs Debt Settlement Agencies

It’s easy to get credit counseling organizations mixed up with debt settlement agencies, but the two are very different — and the difference is critical. Whereas credit counselors are usually non-profit organizations that offer free or low-cost help, debt settlement agencies are very much for-profit companies.

Furthermore, debt settlement agencies charge for the service of negotiating debt settlements with your creditors or collections agencies, rather than offering a more holistic financial education or plan.

Unfortunately, many creditors refuse to negotiate with debt settlement agencies, so hiring one is often a waste of your time. If you do choose to work with a debt settlement agency, remember that under Federal Trade Commission rules , you can’t be charged for their services until they are rendered successfully. Because, again, many creditors simply won’t talk to these companies. If you pay up front, you could be out of luck). In other words, if a debt settlement agency attempts to charge you up front, take your money and run.

Alternative Options for Managing Credit Card Debt

While working with a credit counseling organization can be a great way to access low-cost help in many different financial areas, it’s not the only way to eliminate credit card debt. There are plenty of self-directed strategies that can help you get your money right, right from home.

For instance, debt consolidation is one tactic that may help you get a handle on your credit card debt. Here’s how it works.

To consolidate credit card debt, you’d take out a new loan or a new credit card that allows balance transfers at a 0% interest rate. Yes, it sounds counterintuitive to fix credit card debt by taking out another loan or line of credit, but consider the details. You then pay off all of your credit card debts with the personal loan, or transfer all of your balances onto the new credit card. In either case, you’ll now be left with a single monthly payment rather than multiple payments, which can be hard to keep up with and easy to forget about.

Both tactics can also help you save money on interest, too, which can help you get out of debt faster and more efficiently. Different types of personal loans often have lower interest rates than credit cards do, and if you go the balance transfer route and choose a card with a 0% rate, you may save yourself from paying any additional interest at all.

Beware, though: Those 0% balance transfer rates are usually only promotional, and wear off after a certain period of time, like a year. At that point, if you hadn’t paid off the balance in full, you’d likely be stuck paying double-digit interest on whatever was left over once again.

Recommended: Debt Consolidation Calculator

The Takeaway

If you’re struggling with credit card debt or simply looking for professional financial help from a budget-friendly source, pursuing credit counseling can be a smart step to take. These nonprofit organizations offer a variety of different workshops, services, and materials that can help you fashion a more sustainable financial future.

While SoFi is not a credit counseling organization, we do offer options for managing debt, like debt consolidation loans.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. See your rate in minutes.

FAQ

What is the purpose of credit counseling?

Credit counseling exists to help people find better ways to manage their money and to create sustainable budgets and debt management strategies. Usually nonprofit organizations, credit counseling agencies may offer workshops, educational materials, and one-on-one counseling services at a low cost, or even for free, to people who need some help getting their money right.

What is the credit counseling process?

While each credit counseling organization is different, in most cases, you’ll be offered an initial credit counseling consultation appointment that may last about an hour and take place in person, on the phone, or through a video conferencing platform. You may be offered follow-up appointments as well as educational resources and workshops. While most credit counselors are part of nonprofit organizations, there still may be some fees associated with their services, though these are usually much lower than a professional financial advisor’s fees.

Do you need credit counseling?

Only you can decide if you need to pursue credit counseling, but if you’ve been struggling with credit card debt and found yourself unable to create or stick to a sustainable debt repayment strategy, credit counseling could help.

Photo credit: iStock/Rockaa

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.

SOPL-Q425-004

If your car breaks down and you don’t have the money saved up to fix it, you have a few options for financing, including personal loans.

Not having enough money in the bank is a common scenario. A recent survey found that one in three Americans don’t have any emergency savings. That’s why turning to credit cards, friends and family, or personal loans is a typical situation. Personal loans may be more affordable than a high-interest credit card. Below, you’ll explore the pros and cons of using personal loans for car repair as well as some alternatives.

What Personal Loans Are and How They Work

A personal loan is a loan from a financial institution that borrowers can use for a wide range of purposes, from weddings and vacations to debt consolidation and medical costs to home renovations and, yes, car repairs. You’ll repay your personal loan, plus interest, over a set number of months.

As you start to explore your options, it helps to understand how personal loans work and the different types of personal loans available.

Pros and Cons of Personal Loans for Car Repairs

Taking out a personal loan to cover the cost of car repair can be helpful, but are there drawbacks to consider? Here, review the pros and cons:

Pros

Here, the benefits of using a personal loan for car repairs:

•  Provides fast funding to cover repairs: Many personal loans offer same- or next-day funding, which means you can pay for car repairs quickly and get back on the road.

•  Prioritizes your family’s safety on the road: Without access to cash, some drivers may be tempted to forego necessary repairs and put themselves, their families, and other drivers in danger by driving with a damaged vehicle. A personal loan allows you to pay for damage now at a potentially lower cost before the issue grows and becomes more expensive to fix.

•  Ensures you can still drive to and from work to generate income: Despite the advent of remote working, many people still rely on their vehicle to get to and from their job. Without it, you’ll need to pay for rideshare or a car rental or depend on the kindness of a coworker to give you a lift. Otherwise, you may need to skip work and miss out on that pay. Repairing your car quickly with a personal loan helps ensure you can get yourself to and from work on time.

•  Avoids high-interest credit card debt to cover repairs: Many Americans reach for their credit card to cover the cost of emergency car repair. However, such debt can be hard to overcome since it’s high-interest debt, currently averaging over 20%.

Cons

Now, consider the potential disadvantages of using a personal loan for car repairs

•  Increased debt: The biggest drawback of taking out a personal loan is the increased debt. Sometimes debt is necessary, like taking out a mortgage to buy a home or getting a student loan to pay for college. However, if it’s possible to avoid debt for small expenses like car repair, you typically should. That said, fixed-rate personal loans may be a more manageable form of debt for borrowers than a variable-rate credit card.

•  Upfront fees: Many personal loans come with origination fees at the start, especially for borrowers without great credit. These fees, plus the interest on the loan, mean you’ll end up spending much more for the car repair than you would if you paid out of pocket.

•  Temporary drop in credit score: While many lenders allow you to prequalify for a personal loan without an impact on your credit score, there will be a hard inquiry on your credit report when you officially apply. Such hard inquiries temporarily lower your credit score, but don’t worry: Your score will likely rebound over time, and if you responsibly manage your personal loan, you may even see it grow higher than when you started.

•  Less room in monthly budget: When you take out a personal loan, you’ll have fixed payments for a set number of years. It’s crucial that you make these payments every month and on time. That means you’ll have a little less room in your budget until it’s paid off. If you’re living paycheck to paycheck or struggling to build your emergency savings, this tighter budget can be problematic.

Recommended: What Are Average Interest Rates for Personal Loans?

How to Use a Personal Loan for Auto Repairs

Personal loans are straightforward. Aside from a few restrictions that vary by lender, you can use personal loans for almost anything. You’ll apply and, upon approval, have the funds deposited in your checking account. Then you can take that money and pay the mechanic directly to repair your car.

Applying for a Personal Loan

So how do you get a personal loan for car repairs? First, make sure you meet a lender’s requirements, and then you can go through the application process.

Requirements

These are the typical personal loan requirements you’ll need to meet to get approval:

•  Credit score: Each lender will have its own personal loan credit score requirements. If you have bad credit, don’t sweat it: There are lenders out there with personal loans for poor-credit borrowers. Just expect to pay higher fees and interest.

•  Collateral: Many personal loans are unsecured, meaning you don’t have to put up any collateral. However, if you are struggling with your credit score, you may have an easier time getting approved (and at a lower rate) if you’re willing to put up collateral, such as your car.

•  Proof of income and employment: Lenders want to know that you have a means of repaying the loan. To that end, you may need to prove that you’re employed — and that you make enough to cover the monthly payment.

•  Debt-to-income ratio: Lenders commonly analyze your debt-to-income (DTI) ratio, which compares your monthly debt payments vs. the amount of money you make in a month. The lower the ratio, the more likely you are to be approved.

•  Origination fee: Some personal loans may include an origination fee to be paid up front, often expressed as a percentage of the loan amount (somewhere between 1% and 10%). You may be able to pay this out of pocket, but often lenders roll it into the loan’s total cost or even deduct it from the loan amount you receive.

Recommended: Compare Personal Loan Rates and Terms

Application Process

When you’re ready, you can apply for a personal loan online, over the phone, in an app, or in person (it’ll vary by lender). You’ll usually hear back about approval quickly — and may even receive the loan funds on the same day.

Many lenders let you check your personal loan rates and eligibility online before you apply. There’s no hard credit inquiry for this, so it’s a nice way to see if you qualify and compare lenders.

Alternatives to Personal Loans for Auto Repairs

The ideal alternative to getting a personal loan to fix a car is paying with cash from your emergency fund. But if you don’t have an emergency fund — or don’t have enough saved up yet — paying with credit is your main option.

Personal loans are a top option, but there are some alternatives to personal loans for auto repairs:

Credit Cards

Many mechanics will let you pay for auto repair with a credit card. This can be an attractive option if you have a rewards credit card that pays cash back.

The problem is that many borrowers have variable-rate credit cards with high APRs. If you don’t pay off the debt quickly, the interest charges will start to rack up.

Title Loans

Title loans allow you to use your car as collateral to secure funding. It’s a common option for bad-credit borrowers who can’t afford car repair, but be cautious: These loans are short-term, and if you don’t repay yours, the lender will take your vehicle from you.

This is a last-resort loan. For most borrowers, there’s likely a better, safer option.

Payday Loans

Payday loans are convenient for borrowers who need cash now, because there’s usually no credit check or collateral, and you can get the money right away.

The catch? These predatory loans can have high fees and interest rates reaching 400%. When it’s time to repay the loan (your next payday), you might find that you can’t afford to repay it — and you’ll have to take out a bigger loan to pay off the first one.

If you’re thinking about a payday loan for car repair, it’s a good idea to reconsider. Payday loans can lead to mounting debt and bankruptcy. And even if you pay yours off, it typically won’t help build your credit score (most lenders don’t report on-time payments to credit bureaus).

Instead, you might want to consider other alternatives, like secured personal loans or even a loan from friends and family.

The Takeaway

Personal loans for car repairs may be a smart option when you don’t have the cash on hand. With a personal loan, you can get fast funding to pay for the repairs within a day or two, and the small available loan amounts mean you don’t have to borrow more than you need. There are some alternatives to personal loans for auto repairs, including credit cards. However, if you’re unable to pay off what you owe quickly, the interest charges will begin to pile up.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. See your rate in minutes.

FAQ

Can personal loans be used for car repairs?

Yes, you can use personal loans for car repairs. In fact, unexpected emergencies such as car repairs are a very common use case for personal loans. You can use personal loans for almost any legal purpose.

What sorts of financing can you get for a vehicle repair?

Drivers who can’t afford vehicle repair with their own emergency savings can consider a number of financing options, including personal loans and credit cards. While title loans and payday loans are alternatives, they’re generally a risky solution that could lead to car repossession, major debt, or even bankruptcy. Similarly, some mechanics may offer their own financing, but the interest rates can be very high.

Is getting a personal loan to repair a car a good idea?

If you can’t afford to repair your car out of pocket, a personal loan can be a good idea. Personal loans may have lower rates than a credit card, and making on-time payments on your loan could even help build your credit score.

Photo credit: iStock/demaerre

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.

SOPL-Q425-006

Earned wage access is an employer-provided benefit that allows employees to access a portion of their paycheck ahead of payday. This can be immensely helpful for employees living paycheck to paycheck who incur unexpected, emergency expenses.

On-demand access to money that employees have earned can keep them from relying on more risky and costly alternatives, like payday loans, cash advances, and even intentionally overdrafting their bank accounts. But earned wage access programs may also carry some fees, and they can inspire bad habits with budgeting and money management.

How Does Earned Wage Access Work?

Earned wage access (EWA) works similarly to a cash advance app, except that it’s an employer-provided benefit. Employees who work at a company offering this benefit can download the app of the third-party EWA provider that their company works with and then apply to access a portion of their paycheck.

Employers typically limit how much of a paycheck employees can access early. EWA providers charge a fee for this access. In some cases, the employee will have to pay the fee every time they use the service; in others, employers foot the bill as part of the benefit.

Recommended: Debt Consolidation Calculator

Earned Wage Access Example

Here’s an example of how earned wage access (also sometimes called early wage access) might work in the real world:

An hourly employee earns $20 an hour, after taxes and retirement contributions. Though she receives her paycheck every two weeks, the employee realizes she needs money now to cover an emergency vet bill. She has already worked six days, meaning there are four working days before the end of the pay period — and more time before payroll processes.

She uses the EWA app that her company has partnered with to apply for early access to her paycheck. There is a $5 fee, but her company covers the cost as part of the earned wage access benefit. The EWA benefit is limited to 50% of her total pay for the period, so the employee then receives $800 ahead of her paycheck.

On payday, the employee usually receives a check for $1,600. Because she’s accessed $800 early, however, her paycheck will only be $800.

How to Qualify for Earned Wage Access

Qualifying for earned wage access is easy. You just have to work at a company that offers it as a benefit. EWA is growing increasingly popular. Companies like Uber, McDonald’s, and Walmart have all adopted early wage access as an employee benefit.

Unlike personal loans or credit cards, there’s no credit check to access the money early. Instead, you’ll just need to download the app of the program that your company has partnered with and connect it to your bank account or debit card to have the money transfer go through.

Earned Wage Access Pros and Cons

Earned wage access offers tremendous benefits, especially to employees who are struggling financially. However, EWA also has its fair share of drawbacks to consider.

Pros

•   Fast access to money: The best way to handle unexpected expenses is to draw money from your emergency savings fund. In theory, the money will have been sitting there — in a high-yield savings account actively earning interest — so you don’t have to rely on credit cards, personal loans, cash advance apps, or payday loans. However, people who live paycheck to paycheck understandably can’t build an emergency savings fund. Earned wage access offers another path forward. You’ll be withdrawing money you’ve earned, just a little early. That means you aren’t taking on debt to cover life’s unexpected expenses.

•   Easy to qualify: Taking out a personal loan for emergency expenses is often a smart idea if you don’t have the money in savings. But if your credit score is in poor shape, you might have trouble getting approved for a personal loan. Getting money through earned wage access may be easier. As long as your company offers this as a benefit, you don’t have to worry about credit checks and high-interest debt.

•   No fees (or at least low fees): Many employers cover the admin fee of earned wage access for their employees as part of the benefit. Other employers might have arrangements with EWA platforms that don’t charge fees when employees access their funds early. Even if the employee is responsible for a transaction fee for an EWA, the cost is usually low.

Cons

•   Smaller paycheck: When you need money in a pinch, earned wage access can be a great solution that doesn’t involve taking on debt. However, when payday arrives, your paycheck could be much smaller. Often, EWA platforms allow you to access up to 50% of your paycheck, meaning your payday will be cut in half. While you’ve covered the cost of the emergency expense, you’re now faced with paying your monthly bills on only half of your normal check. That could mean tightening your belt at the grocery store or making late payments on bills.

•   A bad habit: Like cash advance apps or even payday loans, EWAs can be a slippery slope. You may access a portion of your paycheck early during one pay period, get a smaller paycheck as a result, and then need to turn around and access the next paycheck early to make up for your reduced paycheck.

•   Potential fees: In some cases, employees do have to pay for earned wage access. These fees are usually nominal, especially when compared to alternatives — overdraft fees from spending more than they have in their bank account or exorbitantly high interest rates for payday loans — but EWA fees should still be a consideration for people on a budget. Maybe there’s another alternative, like borrowing money from a family member or a payment plan for whatever emergency expense the employee has incurred.

For instance, one 2024 study found that two-thirds of EWA users who had overdraft problems had more of these issues after they began to utilize EWA. It’s a difficult pattern to get out of — and could be even more detrimental if you change jobs and your new employer doesn’t offer EWA. In that case, you might be tempted to take out a predatory loan instead.

Recommended: How to Avoid Overdraft Fees

Earned Wage Access vs Cash Advance Apps

Cash advance apps, also referred to as early payday apps, share some similarities with earned wage access. Both are typically managed through mobile apps and help you access cash flow ahead of your next paycheck.

Earned wage access, however, is offered solely through an employer. The employer may cover fees for the employees, and the amount a person can access is related to their actual paycheck.

With a cash advance app, consumers are responsible for any associated fees. Some apps may advertise no fees (and no interest), but they may charge a fee for instant transfers. Otherwise, you’ll have to wait a few days to get the money, which often defeats the purpose. Other cash advance apps might have a monthly charge.

The amount you can borrow through a cash advance app varies and may be tied to the cash flow of your linked bank account. Repeat borrowers may get approved for higher funds. Repayment is due on the borrower’s next payday.

As referenced above, an alternative in an emergency solution could be a personal loan. It won’t affect your upcoming paycheck, you can use loan money for a variety of purposes, and it can give you the funds you need, at a low cost, to get through a financial hardship. However, you likely need a solid credit score to qualify.

Recommended: Is There a Minimum Credit Score for a Personal Loan?

The Takeaway

Earned wage access can be helpful in an emergency situation, if your employer offers this benefit. However, EWA may come with fees, can make it more challenging to budget on payday, and may even lead to a recurring habit. It can be wise to consider other options such as cash advance apps and personal loans.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. See your rate in minutes.

FAQ

Is earned wage access a loan?

Earned wage access is not a loan. It allows employees at participating companies to access money they’ve already earned, just ahead of schedule.

What are the benefits of earned wage access for employees?

Earned wage access offers employees several benefits, including fast access to money they’ve technically earned, no or low fees, and easy qualification requirements. (You’ve just got to work for a company that offers this benefit.)

What are the downsides of earned wage access?

Earned wage access can have some downsides. Employees may have to pay fees to get early access to their paycheck, the amount you can access is often capped at 50%, and it can lead to a bad habit wherein you regularly need money before your payday.

Photo credit: iStock/Ivan Pantic

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.

SOPL-Q425-045

Think that internships are just for students? Think again. College grads can also snag internships. An internship can be a good way to gain work experience when a full-time job is hard to find. It can also provide an opportunity to test-drive a field you are interested in but not sure is right for you.

Getting an internship after graduation can help you gain exposure to the work world, add to your resume, and build professional experience.

Here, you’ll learn more about internships for recent graduates, what a postgraduate internship is like, and how to find one.

Benefits of a Postgraduate Internship

There are a lot of reasons why college graduates might consider doing a postgrad internship. Aiming to go right into a full-time job after graduating may be the right choice for some people, but there are some benefits to completing an internship first.

•   A postgraduate internship can allow graduates to explore their career options before making a long-term commitment.

Not every student is going to have an exact goal in mind for what job they’d like to have after graduating, and most degrees will give students more than one option to consider. Starting an internship after graduation can give you the ability to test out a variety of jobs and also allow you to live in different locations and see what suits you.

•   Another benefit to applying for internships instead of full-time jobs is that it may limit some of the stress of transitioning to postgrad life. Applying for full-time jobs could feel like a big commitment for graduates who are coping with the end of their college experience. Internships can make for a great in-between, a stepping stone for graduates to use to get their feet wet in the professional world and hopefully experience less stress as they settle into their postgraduate life.

•   Internships also provide graduates with valuable hands-on experience and potentially a connection to their first full-time job. Getting a degree is important, but it isn’t the same as having previous experience in the field.

Doing a postgrad internship can help recent graduates develop and sharpen their skills and fill out their resume. Some internships may even transition into full-time jobs with the same company. For employers, it can be easier to hire someone they’ve already seen in action.

•   Getting an internship can also help recent graduates build up their network outside of college. Developing relationships within the field of interest can benefit students when they start their job search after completing their internship.

💡 Quick Tip: Get flexible terms and competitive rates when you refinance your student loan with SoFi.

So, What are Internships Like?

What postgraduate internships are like will vary tremendously from position to position, and industry to industry. An internship for recent graduates at, say, a veterinary clinic vs. an investment bank could be the proverbial “night and day.”

There are, of course, some common concerns and questions about these gigs. If you’re considering applying for postgraduate internships, the first question most people are going to have is: Is it paid?

The answer to this question will vary by internship and by industry. For example, internships in banking, accounting, and government are often paid.

The determination for whether or not an internship will be paid can depend on how much the student is benefitting from the experience vs. the company.

•   An unpaid internship is usually more learning-based and the recent grad will be gaining knowledge and skills from it. Unpaid internships are generally legal as long as the intern is the primary beneficiary of the internship, rather than the company (though individual states often have their own standards and criteria for unpaid internships).

•   A paid internship usually involves the company benefiting more from the grad’s efforts than the person does.

Another way to look at the position is that if it’s paid, the postgraduate can do the same tasks as employees and get hands-on knowledge that way. If the recent grad is not paid, they may only be able to observe what the paid employees are doing and perform adjacent tasks. This can, however, still be useful.

Because internships are usually short-term commitments, most of them won’t provide the same benefits that full-time employees have. There may be other perks though, such as social events and vacation days off. What’s more, some internships may cover the cost of housing and other expenses, such as transportation.

Another point to recognize is that a graduate internship will give you experience in the world of work, which can boost your confidence as you job hunt. You get used to how businesses function, how colleagues interact, and how employees prioritize competing responsibilities. All good intel!

Recommended: How Student Loans Affect Your Credit Score

How to Get an Internship

Getting an internship will require some effort, and it’s often better to start before you get your diploma as things can be competitive. Here are some ways to start your hunt for a graduate internship:

•   Network with professors and alumni and utilize your school’s career center.

•   Graduates can use platforms like LinkedIn or their school’s alumni database to find people in their chosen career fields to reach out to. Grads should get comfortable communicating with these people and being clear about what types of internships they’re looking for. These conversations can help open doors that otherwise may have been hard to find.

•   Internships (paid and unpaid) are increasingly posted on online job sites. Take a look using “internship” as a keyword, and you may be surprised to find a good number of opportunities.

Get Your Resume Ready

It’s also key to have a resume and cover letter ready to go. These may have to be tweaked for each internship, but at least you’ll have a starting point. If a recent graduate is searching for an internship in a specific field, then they might be able to get away with making minimal changes.

If you haven’t already honed yours, check in with your school’s career services office, or look at the many templates and examples online. Experiment with them, and have a trusted family member or mentor review it from the perspective of, “Would I interview this person based on this resume?”

Grads should be creative (but not untruthful) when listing their skills and experiences on their resume. Even if you haven’t had a full-time job yet, you’ve probably picked up valuable skills at part-time jobs and in college that merit inclusion. Holding a job of any sort can show that you are a responsible, hard-working individual.

Practice Your Interview Skills

Preparing for interviews will also help recent graduates snag an internship. A few pointers:

•   It’s vital to do research on the company before the interview for a postgrad internship. Review things like the company’s mission, what their current projects are, and what the company culture is like. Having knowledge of the company can highlight that the applicant has done their research and is excited about potentially joining the company.

•   Preparation for interviews also includes studying common internship interview questions and prepping for those. You can find them online, from friends’ experience, and likely from your school’s career services office. The interview will be less nerve-racking when you know what to expect. It’s also helpful to prepare a couple of your own questions to ask the interviewer. This shows an interest in the company and commitment to learning more.

•   Many interviews take place by video meetings today. Get familiar with the possible ways these are conducted (Zoom vs. Microsoft Teams, say). It can also be wise to check your connectivity in advance and log in early.

•   Thank your interviewer, always. And be sure to send a thank-you email after the interview. Use it as an opportunity to reiterate your interest in the job and your skills. And if you are offered an internship, research how to accept a job offer.

Repaying Your Student Loans

In addition to job (or internship) hunting, graduates will also have to face the reality of paying back their student loans. The exact timing for when repayments start will vary by the type of loan. Graduates should keep this in mind when applying for internships and full-time jobs and develop a budget for their postgrad life.

For federal loans, there are a couple of different times that repayment may begin.

•   Students who borrowed a Direct Subsidized, Direct Unsubsidized, or Federal Family Education Loan (FFEL), have a six-month grace period after graduation before they’re required to make payments.

•   When it comes to the Grad PLUS loan, graduate and professional students with PLUS loans will be on automatic deferment while they’re in school and up to six months after graduating or after you drop below half-time enrollment status.

With the repayment period coming up, some graduates may consider refinancing their student loans. With student loan refinancing, a private lender pays off the existing loan with another loan, ideally at a lower interest rate, which can help lower monthly payments.

While both federal and private student loans can be refinanced, when federal student loans are refinanced by a private lender, they are no longer eligible for federal benefits and protections like deferment and forgiveness. Graduates will want to consider this before deciding to refinance any federal loans.

Recommended: Student Debt Guide

The Takeaway

Postgrad internships can help students build their resume, expand their networks, and gain valuable job experience. Depending on factors like the company and industry involved, postgraduate internships may or may not be paid. Students still exploring their career options may find value in pursuing a postgraduate internship, whether or not it brings in income.

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.

FAQ

Can any college grad do a postgraduate internship?

Generally, yes — many large companies offer postgraduate internships for recent college grads. Postgraduate internships tend to be available in a wide range of fields, including business, health, arts, finance, tech, and engineering. To help find them, check online job sites and company career pages.

Are postgrad internships worth it?

While it depends on the specific internship, in general, many postgraduate internships are worth it. Some of these internships are paid, so you’re earning money, for one thing. But regardless of whether they offer a paycheck, postgrad internships can give you the opportunity to make professional contacts, learn new skills, and sharpen skills you already have for your future career. Some postgrad internships even lead to full-time jobs.

Do postgrad internships help you get a job?

It’s possible. Many large corporations that offer postgraduate internships use them as a way to recruit and train future full-time employees. Even if a postgrad internship isn’t a direct pathway to a job, you’re gaining experience and making important contacts in your field. That could help give you an edge over other candidates in a job search.

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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