Jan
13
2025

S&P 500 Companies Helping Clean the Oceans

By | invest, Investing | Comments Off on S&P 500 Companies Helping Clean the Oceans

Spurred by concerns about the growth of ocean pollution worldwide, a few S&P 500 companies — among the largest U.S. companies by market cap — are contributing to ocean cleanup endeavors.

While most people know that the ocean is the world’s largest natural resource, covering nearly 70% of the surface of the earth, few understand what it would mean if “the blue economy” failed to thrive. The oceans not only are a vital food source, these vast bodies of water supply ingredients for pharmaceuticals and biofuel, and help absorb most of the world’s CO2.

Yet right now, pollutants ranging from chemicals to plastics are threatening the viability of oceans on every front.

Recognizing that maintaining healthy oceans is a pressing economic issue, corporate leaders are taking steps to help with ocean cleanup.

Key Points

•   Oceans cover nearly 70% of the earth’s surface, and provide many of the world’s natural resources, including food and ingredients for medicine and biofuel.

•   Scientific studies show that the buildup of pollutants continue to threaten the health of the seas and much of marine life, putting “the blue economy” at greater risk.

•   Ocean pollution includes numerous industrial chemicals, such as byproducts from manufacturing and mining, but plastics comprise most of the debris in the oceans today.

•   Corporate leaders recognize the potential long-term impact of not taking action to shore up the health of the world’s largest and most valuable natural resource.

•   S&P 500 companies are developing technologies and systems that can help manage pollutants and clean up the oceans.

Why Cleaning the Ocean Is Important

Oceans represent an almost unfathomable source of global wealth, and are essential to life on this planet. They contain some 97% of the world’s water (fresh water is about 3% of the global supply), and comprise 99% of the living space on earth.

Understanding the Blue Economy

The seas and oceans also provide immense economic support to countries around the world, providing well over $1 trillion in revenue. Offshore oil and gas enterprises make up 65% of the ocean-based economy.

Other industries that depend on the oceans include:

•   Tourism

•   Fishing

•   Ship building and maintenance

•   Marine equipment

•   Ports

•   Container shipping

While a growing number of investors are increasingly interested in ESG or sustainable investing opportunities, these strategies are still evolving. Companies that are taking a more direct role in ocean cleanup are also needed.

Impact of Industry on the Oceans

Clearly, if the oceans aren’t healthy, it will have a huge impact on human health and economies as well. Yet the current level of ocean pollution is nothing short of alarming.

•   Ocean acidification threatens essential coral reef ecosystems around the world, which is impacting biodiversity as well as natural sources of filtration.

•   Overfishing is putting both fish populations and vital food supplies at risk of depletion.

•   Oil spills and industrial byproducts have a toxic effect on both human and animal populations globally.

•   Fertilizer runoff from industrial farming and agriculture ends up in the oceans.

The biggest source of ocean pollution by far comes from plastic. According to the UNESCO Intergovernmental Oceanographic Commission, plastic from bottles, utensils, fishing equipment (rope, nets), among other sources, make up 80% of the plastic debris found in the ocean today. And some 8 to 10 metric tons of plastic are dumped in the ocean each year.

Fortunately, work is being done to clean up and protect the oceans. Large corporations, startups, nonprofits, and governments are participating in the effort. Some companies are working on preventing ocean pollution and others are working to clean up existing pollution.

Get up to $1,000 in stock when you fund a new Active Invest account.*

Access stock trading, options, alternative investments, IRAs, and more. Get started in just a few minutes.

*Customer must fund their Active Invest account with at least $50 within 45 days of opening the account. Probability of customer receiving $1,000 is 0.026%. See full terms and conditions.

Which S&P 500 Companies Are Helping Clean Up the Ocean?

Cleaning up the oceans requires effort from multiple angles. Consumer education can help reduce the number of products people buy, and encourage individuals to buy more sustainable products. Green investing opportunities can inspire investors to support sustainable companies.

New materials, manufacturing and waste management processes can increase the percentage of products that get recycled or composted rather than ending up in waterways.

Cleanup projects are also needed to remove the waste and emissions that have already made their way into the oceans. Some of the S&P 500 companies participating in these efforts are included below.

Recommended: The Growth of Socially Responsible Investing (SRI)

Pollution Treatment

Ocean pollution includes chemicals, trash, oil, and other substances. Additionally, the oceans absorb greenhouse gases emitted from human activities, which leads to ocean warming and acidification.

Warming and acidification result in destruction of coral reefs and ocean ecosystems, and both fertilizer runoff and warming also contribute to other problems like invasive seaweed growth and algae blooms.

•   Corporations such as Apple, Alphabet, Disney, Microsoft, and Meta are among the top companies selected by Sustainability Magazine for their efforts to reduce their carbon footprint. Helping reduce the amount of the greenhouse gas CO2 in the atmosphere and oceans may help mitigate global warming and acidification of waterways.

•   Pollution and water treatment companies that help prevent ocean pollution through their products and services include American Water Works Company, Ecolab, Pentair plc, Xylem, and IDEX Corporation.

Recycling Products

Other ways that S&P 500 companies help clean the oceans are through the development of recycling and waste management programs and the production of goods that are either made from plastic gathered from the ocean or designed to reduce the use of virgin plastic.

The truth about recycling is that many items made from plastic and other materials can’t be recycled. About ¼ of items consumers place in recycling bins can’t be recycled by the recycling facilities they are taken to.

Only about 9% of the world’s plastic gets recycled. The rest ends up in the natural environment, gets incinerated, or goes to landfills where it produces greenhouse gases such as methane.

Some companies are working on improved recycling methods and developing new materials, products, and packaging that can be recycled or are biodegradable.

If consumers don’t have access to local recycling programs, plastic items they use may still end up in the oceans.

Recommended: Green Bonds Explained

Ongoing Obstacles to Ocean Cleanup

Although the improvements and innovations in the area of ocean pollution management are a step in the right direction, they don’t solve the problem of overconsumption. In some cases, companies that appear to embrace sustainability may be employing greenwashing tactics to convince consumers that their products are eco-friendly when they’re not.

Companies are under increasing internal and external pressure to show strong Environmental, Social, Governance (ESG) metrics and improve their overall sustainability, and recycling and waste production are a big part of that effort.

When evaluating a company’s ESG metrics it’s important to do some research to see if they are really making improvements and progress towards goals, or simply putting out exaggerated or false claims.


💡 Quick Tip: It’s smart to invest in a range of assets so that you’re not overly reliant on any one company or market to do well. For example, by investing in different sectors you can add diversification to your portfolio, which may help mitigate some risk factors over time.

Startup Companies to Watch

In addition to S&P 500 companies, many startups are developing technologies to help clean the oceans. These five startups, highlighted by SustainableReview.com, are forming partnerships and selling their services to S&P 500 companies. Some of these include:

•   Algenisis. A California-based company that has developed a durable new plastic substitute from algae.

•   AquiPor Technologies. This Seattle-based startup has created a sustainable new type of material that prevents water pollution.

•   Heliogen. Based in California, this company has developed an AI-powered thermal solution that supports companies in their decarbonization efforts.

•   FuelGems. Offering an additive that helps reduce carbon emissions from traditional fuels like gas, oil, and diesel, this Austin, TX-based company relies on nanotechnology.

The Takeaway

When it comes to sustainability, everything is connected. To clean the oceans and prevent further damage to the world’s biggest natural resource, efforts are needed across the entire global supply chain. In addition to investing in individual stocks of companies working to help clean the oceans, investors can also find index funds and ETFs that include several companies, such as those focused on ESG, waste management, materials, or clean oceans.

Ready to start investing for your goals, but want some help? You might want to consider opening an automated investing account with SoFi. With SoFi Invest® automated investing, we provide a short questionnaire to learn about your goals and risk tolerance. Based on your replies, we then suggest a couple of portfolio options with a different mix of ETFs that might suit you.


Open an automated investing account and start investing for your future with as little as $50.

FAQ

What companies dump waste into the ocean?

Although companies may not be directly dumping waste into the ocean, studies have found that the majority of ocean waste is made up of plastic products from companies such as Coca-Cola, PepsiCo, Nestle, Procter & Gamble, and Danone.

Which industry pollutes the ocean most?

In terms of plastic waste, the beverage industry contributes the most to ocean pollution with its plastic bottles that are generally not recycled.

What companies are cleaning up the ocean?

Startups such as The Ocean Cleanup, Seabin project, and Recycling Technologies are working to clean up the ocean.

Photo credit: iStock/Philip Thurston

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

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

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

Exchange Traded Funds (ETFs): Investors should carefully consider the information contained in the prospectus, which contains the Fund’s investment objectives, risks, charges, expenses, and other relevant information. You may obtain a prospectus from the Fund company’s website or by emailing customer service at [email protected]. Please read the prospectus carefully prior to investing.

Investment Risk: Diversification can help reduce some investment risk. It cannot guarantee profit, or fully protect in a down market.

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

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

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.

SOIN0922033

Read more
Jan
13
2025

How to Prepay Student Loans Without Penalty

By | Fresh Out of School, Student Loans, student_loan | Comments Off on How to Prepay Student Loans Without Penalty

Prepaying student loans can help you save on interest and become debt-free faster. Many loans, including federal and private student loans, allow prepayment without penalties, but it’s essential to understand how to make extra payments effectively.

Whether you want to pay down principal directly, make biweekly payments, or prioritize high-interest loans, prepayment strategies can significantly impact your financial future. This guide explores the benefits of prepaying student loans and ways to ensure your extra payments are applied correctly.

Key Points

•   Federal and private student loans in the U.S. allow prepayment without penalties, enabling borrowers to pay off their debt faster and save on interest.

•   Ensure that any additional payments are applied directly to the loan principal by specifying this with your loan servicer, reducing overall interest.

•   Prioritize extra payments toward loans with the highest interest rates to maximize savings over time.

•   Understand your loan’s terms, and coordinate with your servicer to confirm that prepayment strategies align with your financial goals.

•   Another way to save money on student loans is by refinancing them, ideally with a lower interest rate or shorter loan term. Keep in mind that refinancing federal student loans means you’ll no longer have access to federal benefits and protections.

What Is a Prepayment Penalty?

A prepayment is any extra amount you pay in addition to your regular required monthly payment. A prepayment penalty refers to fees you pay to your lender if you choose to make extra payments.

Generally, if you have private, federal, or federal parent loans, you will not pay penalties if you pay off your student loans early. In fact, lenders are banned from charging additional fees when you make extra payments. Check with your loan servicer about the details and to get a payoff quote. A payoff quote is an estimate of how much you’ll need to pay in order to pay off your loan in full.

Recommended: How to Avoid Paying a Prepayment Penalty

Student Loan Prepayment Penalties

Is there a prepayment penalty on student loans?

No, lenders cannot charge prepayment penalties on federal or private student loans. The Higher Education Act of 1965 banned prepayment penalties for federal student loans. The Higher Education Opportunity Act (HEOA) amended the Truth in Lending Act (TILA) in 2008, banning prepayment penalties for private student loans.

Prepaying Federal Student Loans

Federal student loans are loans lent by the federal government; specifically, the Department of Education. They include the following:

•   Direct Subsidized Loans: These loans are for eligible undergraduate students with financial need. Dependent students can receive up to $23,000 total in Direct Subsidized Loans, with the amount per year varying depending on your grade level.

•  Direct Unsubsidized Loans: These loans are for eligible undergraduate, graduate, and professional students. Independent undergraduate students have a lifetime aggregate limit of $57,500, and graduate or professional independent students have a lifetime aggregate limit of $138,500.

•  Direct PLUS Loans: These loans are for parents who want to borrow money for their dependent undergraduate students (Parent PLUS Loan) and for eligible graduate or professional students (Grad PLUS Loan). You can borrow up to the cost of attendance minus any other financial aid the student receives.

•  Direct Consolidation Loans: Anyone with eligible federal student loans who wants to combine them into a single loan with one interest rate can do so through a Direct Consolidation Loan.

Now, let’s discuss when you actually need to begin repaying your student loans. Your federal student loans go into repayment when you:

•   Graduate

•   Drop below half-time enrollment or

•   Leave school

You’ll get a six-month grace period (which means you won’t have to begin repaying your loans) before you must make regular payments if you have Direct Subsidized, Direct Unsubsidized, or Federal Family Education Loans (FFEL). PLUS Loans require repayment upon disbursement (when they’re paid out) unless you’re a graduate or professional student, in which case you’ll be placed on an automatic deferment while in school and for six months after graduating, leaving school, or dropping below half-time enrollment.

Once you graduate, you can choose from repayment plans that base your monthly payment on:

•   Your income or

•   A fixed monthly payment over a set repayment period

You can make extra payments beyond your monthly payment as you have extra cash available. You can do that however often you like, whether you do so once a year, once a month, or biweekly. You can even prepay on your federal student loans while you’re in school or during your grace period, but note that these prepayments will not count as qualifying payments through federal loan forgiveness programs.

How to Make Sure Prepayments Are Applied Correctly

Let’s take a look at how your loan servicer applies prepayments. It’s important to understand this because if your lender doesn’t apply your payments the way you prefer, you might not get ahead on your payments as quickly as you’d like.

Student loan servicers usually apply your payments in this order:

1.    Toward late fees you incur.

2.    Toward any outstanding interest (the amount your lender charges for borrowing).

3.    Toward your outstanding principal balance (the sum you originally borrowed).

Contact your servicer to tell them where your money should go. For example, you may want to pay off the loan with the highest interest rate first. Or you may want to pay toward the smallest loan balance to give you the psychological boost of paying off a loan in full quickly.

Consider making an extra payment right after you make your regular monthly payment, because your lender will apply all of it toward principal, which will shrink the overall amount you owe in interest. Ensure that paying this extra money doesn’t give you a “payment holiday” (where you won’t have to pay for a while), because you could end up with more interest charges.

Recommended: 6 Strategies to Pay Off Student Debt Loans Quickly

Prepaying Private Student Loans

Do you have a mix of federal and private student loans? If so, the prepayment advice is the same for private loans as it is for federal loans: Don’t allow your servicer to allocate your payments on their own because they may apply extra payments as they see fit. This could result in your servicer spreading your money across all the loans on your account, applying the money to future interest charges, or applying it to your next monthly payment.

It’s best to give your private student loan servicer instructions on how to allocate your extra money, which might look like this in email or letter form:

1.   After applying the minimum amount due for each loan, please apply any additional amount toward the loan with the highest interest rate.

2.   If any of my loans have the same interest rate, please apply the additional amount to the loan with the lowest outstanding principal balance.

3.   Please apply any remaining part of my payment to the loan with the next-highest interest rate if any additional amount above the minimum due pays off one of the individual loans.

Sending a communication to your loan servicing company will help clarify how you want your extra payments handled, including what to do when you do end up paying off one of your loans. Keep a close eye on your statements so you know what’s going on with your student loans.

You may also want to consider student loan refinancing to reduce the interest rate, loan term, or both on your student loans. You can refinance one loan, multiple loans, private loans, or a combination of federal and private loans. Just keep in mind that by refinancing federal loans with a private lender, you lose access to federal protections and benefits.

Recommended: Does Refinancing Student Loans Save Money?

The Takeaway

Luckily, you will not have to pay extra fees for paying off your student loans in advance. This means you can pay off your loans as fast as you want, ultimately saving money on interest and getting out of the debt hanging over your head.

However, it’s important to ensure that your loan servicer pays off your student loans the way you want them to. Otherwise, you could end up dragging out your loans longer than you anticipated.

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

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

FAQ

Should you prepay student loans?

If you can do it, student loan prepayment can help you pay off your student loan debt sooner, possibly putting you in a much better financial position than when you graduated. Without looming student loan debt, experts say you may more easily buy a home, take entrepreneurial risks, and save for retirement.

What about interest charges when you prepay student loans?

When you prepay student loans, the extra payments typically go toward the loan principal, reducing the amount on which future interest is calculated. This can save you money over time by lowering total interest charges. Ensure your loan servicer applies the extra payment to the principal to maximize savings.

About the author

Melissa Brock

Melissa Brock

Melissa Brock is a higher education and personal finance expert with more than a decade of experience writing online content. She spent 12 years in college admission prior to switching to full-time freelance writing and editing. Read full bio.


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

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

Terms and conditions apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. SoFi Private Student loans are subject to program terms and restrictions, such as completion of a loan application and self-certification form, verification of application information, the student's at least half-time enrollment in a degree program at a SoFi-participating school, and, if applicable, a co-signer. In addition, borrowers must be U.S. citizens or other eligible status, be residing in the U.S., Puerto Rico, U.S. Virgin Islands, or American Samoa, and must meet SoFi’s underwriting requirements, including verification of sufficient income to support your ability to repay. Minimum loan amount is $1,000. See SoFi.com/eligibility for more information. Lowest rates reserved for the most creditworthy borrowers. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change. This information is current as of 4/22/2025 and is subject to change. SoFi Private Student loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).

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


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.

SOSLR-Q424-019

Read more
Jan
13
2025

What Is a Nurse Residency Program?

By | Going to College, Student Loans, student_loan | Comments Off on What Is a Nurse Residency Program?

A nurse residency program can offer nurses additional training and specialized skill enhancement that can benefit their career.

If you’re a recent nursing program graduate and you’d like to go into a specific nursing specialty, you may want to consider joining a nursing residency program. These programs allow nurses to transition more easily into the job, provide professional development, and help prepare them for the demands of nursing.

Here’s a deeper look at how nurse residency programs work, the pros and cons of these programs, and what to look for in a residency program if you decide it’s the right move for you.

Key Points

•   Nurse residency programs support new graduates transitioning into professional nursing roles.

•   Programs last up to a year, combining clinical training, specialized skills, and professional growth.

•   Goals include enhancing clinical skills, improving patient care, and boosting job satisfaction.

•   Participants are paid, though earnings may be lower than entry-level nursing positions.

•   Programs generally require a commitment to work at the facility post-completion for at least one year.

What Is a Nurse Residency Program?

A nurse residency program helps nursing graduates transition into the workforce. It typically lasts up to a year and provides nurses with classes and instruction as well as specialized clinical experience. Nurses in nursing residency programs typically get paid, which is important for recent graduates living with student loan debt.

These programs aim to:

•   Improve clinical judgment and patient outcomes

•   Teach specialized skills

•   Reduce errors

•   Improve nurses’ job satisfaction and communication

•   Reduce stress and job turnover

A nurse residency has two phases: the transition phase and integration phase.

Transition Phase

In the transition phase, which usually lasts one to three months, nurses do online learning. They listen to lectures and read case studies about their nursing specialty. They are also introduced to hospital policies, and learn nursing ethics. During this time, they can attend discussion groups with other nurses and go to instructor-led training sessions.

Integration Phase

After the transition phase is complete, nurses begin the integration phase, where they work regular shifts ranging from eight to 12 hours during the day, night, or a mix of days and nights. This phase can last for several weeks or months, depending on the program. Nurses care for patients, communicate with families, and work with the larger health care team. During the transition phase, nurses work under the supervision of an instructor and program director who provide feedback about their performance.

How Do Nurse Residency Programs Work?

Nursing residency programs are available in 47 states (Hawaii, Wyoming, and Utah do not have these programs), and hundreds of hospitals and health care systems participate.

The programs tend to vary in length, though most programs last six months to one year. They provide specialized training at hospitals or other medical settings. Nurses work in clinical settings with a mentor and other residents, and they also take nursing classes focused on leadership and professional development.

As mentioned, nurses are typically paid while participating in a residency program, which can help them repay their nursing student loans. Nurses are also often contractually required to work at the facility for a specific amount of time after completing residency training.

Pros and Cons of Nurse Residency Programs

Nurse residency programs give recent graduates some distinct advantages, but there are drawbacks as well. Here’s what to know about these programs.

Pros

Nursing residency programs offer several benefits:

•   Better patient outcomes: Nurses gain deeper knowledge, confidence, and critical competencies through these programs, which can help them treat patients.

•   Job satisfaction: Nurses who participate in these programs report less stress than other nurses, and they are more likely to stay in the nursing field.

•   Support system: Specialized training from a team of experienced nurses and instructors can strengthen a nurse’s skillset, especially those going into nursing specialties.

•   Financial benefits: Nurses who participate in nurse residency programs are paid. That can be very helpful when you’re budgeting as a new nurse. However, nurse residents typically earn less than nurses who go directly into a nursing job after graduation.

Cons

Nurse residency programs require a significant time commitment. In addition, there are the following downsides to consider:

•   Competitive with limited availability: Many programs admit only a small number of nurses, and it can be difficult to secure a spot.

•   Constant supervision: Nurses are always under supervision during a nursing residency — more so than if they go straight into a job after graduation.

•   Less control: In a nurse residency program, the hospital or program director picks a nurse’s unit, the types of shifts worked, and the length of the shifts. Nurses must attend mandatory training sessions.

•   Required service: After completion of the program, nurses must commit to a year or more of service at the health care facility. If they break the contract, they may need to pay back the hospital for the training and education they received.

Recommended: Student Loan Refinancing Guide

What to Expect in a Nurse Residency Program

During the first two weeks of a nurse residency program, nurses undergo orientation and learn about the health care facility’s mission, values, and rules.

They also learn about the equipment they’ll be using and the practices of the hospital or unit they are working in.

By the end of the first month of a nurse residency program, nurses typically begin working shifts of 8 to 12 hours. During this time, under the supervision of instructors, they start taking on patients. Over the next six months, they continue working with patients, develop their patient care strategy, and attend classes to develop their professional skills.

During the final six months of the program, nurses typically receive more autonomy in patient care, finish up their formal coursework, and take a final evaluation and competency test.

What to Look for in a Nurse Residency Program

If you’re interested in a nurse residency program, you’ll want to find one that’s the best fit for you. First, look for an accredited program, which means an accrediting body has deemed that the program meets industry and educational standards. For example, the Commission on Collegiate Nursing Education (CCNE) and American Association of Critical-Care Nurses (AACN) require accredited programs to last at least six months to a year.

In nurse residency programs, the hospital or health care system you work for will control the department you’re in, the work you do, and your specific duties. So be sure to find out about the program’s curriculum; how long it lasts; what areas you might be able to specialize in; information on the instructors, program director and other leadership; and what the culture of the program is like.

Also, consider how a residency program might affect your lifestyle. As a new nurse, you are likely dealing with a number of financial obligations, including student loans you took out to help afford the cost of nursing school. Find out about the pay and benefits of the nurse residency program to make sure you can pay your debts.

Nurses looking to lower their federal monthly student loan payments may want to explore income-driven repayment (IDR) plans. These plans base your payments on your discretionary income and family size.

Under an IDR plan, you may also be able to work toward federal student loan forgiveness, such as the Public Service Forgiveness (PSLF) program for those working in public service jobs for a qualified employer like a government organization or nonprofit.

You might also want to consider the option of student loan refinancing to help manage your student loans. With refinancing, you replace your current loan with a new loan from a private lender. Ideally, the new loan has a lower interest rate and more favorable terms, which you could make your payments easier to meet.

Our student loan refinancing calculator can help you determine if refinancing makes sense for you.

Just be aware that refinancing federal student loans into private loans makes them ineligible for federal benefits like IDR plans and federal forgiveness programs.

Recommended: Refinancing Student Loans to Save Money

Is a Nurse Residency Program Right for Me?

If you are hoping to go into a specific nursing specialty after graduation from nursing school, you may want to apply for a nurse residency program. These programs offer a number of perks, including additional training and learning opportunities, mentorship, and deeper knowledge and hands-on experience. A nurse residency program can also help give you the clinical training you’ll need for your specialty.

However, nurse residency programs can be competitive and difficult to get into. Weigh the pros and cons carefully to make an informed decision.

The Takeaway

For many nursing graduates, a nurse residency program can be beneficial, offering a chance to learn, get on-the-job training, and work with experienced instructors — while getting paid. Nurses who participate in the programs tend to report less stress, and there is less job turnover. Patient outcomes also tend to be improved, and nurses can learn specialized training which can help them go into a specialty field.

But these programs typically accept only a small number of nurses each year, and they generally require at least a year of service afterward. Plus, nurses in these programs tend to earn less than nurses who go directly into a job, which can be an issue for those worried about repaying their nursing school student loans.

Remember, though, that you have options to potentially lower your payments — including income-driven repayment plans and student loan refinancing — which could help make it possible to participate in a residency program that will teach you special skills and help you achieve your career goals.

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.

FAQs

Do nurse residency programs lead to a full-time job?

Nurse residency programs do usually lead to a full-time job. Nurses are typically contractually required to work for at least a year at the hospital or health care system after completing their residency.

Are nurse residency programs hard to get into?

Nursing residency programs are competitive, and it can be very challenging to get into them. Many programs accept only a small number of nurse residents per year. Having some clinical experience, such as doing clinical rotations in the specialty you’re interested in while you’re still in nursing school, may help you stand out from the crowd.

About the author

Melissa Brock

Melissa Brock

Melissa Brock is a higher education and personal finance expert with more than a decade of experience writing online content. She spent 12 years in college admission prior to switching to full-time freelance writing and editing. Read full bio.


Photo credit: iStock/FatCamera

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

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


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

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

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

SOSLR-Q424-013

Read more
Jan
13
2025

ITT Tech Loan Forgiveness: Things to Know

By | Debt Payoff, Fresh Out of School, student_loan | Comments Off on ITT Tech Loan Forgiveness: Things to Know

Students who attended the now-defunct ITT Tech are entitled to federal student loan forgiveness. If you attended an ITT Tech institution between 2005 and 2016, you should be able to get your federal student loan debt discharged.

Learn the details about what happened at ITT Technical Institute, how it affected more than 200,000 students, and what you need to know about ITT Tech student loan forgiveness if you attended the school during the specified time period.

Key Points

•   ITT Tech loan forgiveness cancels federal student loan debt for students who attended ITT Technical Institute between 2005 and 2016, when the school closed its doors.

•   The Department of Education discharged $3.9 billion in federal loans for 208,000 ITT student borrowers.

•   The forgiveness program applies automatically, without students having to apply for loan discharge.

•   The Consumer Financial Protection Bureau forgave hundreds of millions in private student loans to ITT borrowers.

•   Students with private loans whose debt was not forgiven can contact their lender to explore their options, find out about any state assistance programs, or consider student loan refinancing.

What Is ITT Tech?

ITT Technical Institute, also known as ITT Tech, was a private, for-profit technical school that had approximately 130 campuses in 38 states. Owned by ITT Educational Services, ITT Tech schools had associate and bachelor’s degree programs in various areas of technology, including software, electrical engineering, and cybersecurity, as well as criminal justice and business management.

The institution, which was founded in 1969, offered students a chance to get their undergraduate degree without going the traditional college route.

Recommended: Why College Is Not for Everyone

What Happened to ITT Tech?

On September 6, 2016, ITT Tech ceased operations, closing all of its campuses. After years of investigations and lawsuits from federal agencies and some state attorneys general, the U.S. Department of Education (DOE) cut off ITT’s federal aid.

According to a report from the Project of Predatory School Lending at Harvard Law School, ITT made false promises to prospective students, such as offering a valuable education, flexible schedule, the ability to easily transfer credits to other schools, and a high likelihood of job placement after graduation. ITT also engaged in unethical, predatory practices, the report found, which included recruiting and taking advantage of low-income students.

Without the billions of dollars ITT Tech had received from federal student loan aid, it could no longer remain open. ITT filed for bankruptcy 10 days after closing its doors.

ITT Tech’s closing left more than 35,000 students in limbo, without a viable path to obtain their degree. And hundreds of thousands of students were on the hook for the federal student loans they had taken out to attend ITT.

Who Will Get Their ITT Tech Loans Forgiven?

On August 16, 2022, the DOE announced the cancellation of all remaining federal student loan debt to students who attended ITT Tech from January 1, 2005 through its September 2016 closure.

According to the latest information, a grand total of $3.9 billion of federal student loan discharges have been given to 208,000 borrowers who attended an ITT Tech school during the time period.

The DOE’s ITT Tech student loan forgiveness only applies to federal loans, not private student loans. However, the Consumer Financial Protection Bureau (CFPB), which investigated ITT and brought a lawsuit against the institution, eventually reached settlements with ITT that forgave hundreds of millions of dollars in private student loan debt.

Students who borrowed private loans to attend the institution and didn’t receive ITT Tech loan forgiveness may want to consider options to make repaying their student loans easier, such as checking whether their state has a program to help students after a college closure, or exploring student loan refinancing. When you refinance student loans, you replace your current loans with a new private loan.

Ideally, the new loan will have a lower interest rate, if you’re eligible, or more favorable terms, in which case refinancing could save you money.

Use SoFi’s student loan refinancing calculator to see if refinancing makes sense for you.

What ITT Tech Student Loan Debt Relief Is Available?

With the federal government’s ITT student loan forgiveness decision, anyone who took out a federal student loan should be eligible to have their debt erased. What’s more, the DOE made ITT Tech loan forgiveness easy by not requiring former students to apply for a borrower defense to repayment discharge. Instead, students who attended ITT Tech automatically had their loans discharged without having to take any action.

In addition, hundreds of thousands of dollars in private student loans were forgiven through the efforts of the CFPB.

If you were a student at an ITT Tech school during the specified time period, and you haven’t had your federal student loan amount waived, the DOE advises you to contact your loan servicer. If you’re not sure who your servicer is, you can find out by logging into your account on StudentAid.gov.

Recommended: Student Loan Refinancing Guide

The Takeaway

The 2016 closure of ITT Tech campuses nationwide left tens of thousands of students with no opportunity to finish earning their degree. It also resulted in hundreds of thousands of students being left with private and federal student loan debt.

The Department of Education has canceled federal loans borrowed by students who attended ITT Tech between 2005 and 2016. And separately, hundreds of millions of dollars in private student loans were forgiven through the efforts of the Consumer Financial Protection Bureau.

If you attended ITT and your federal loans haven’t been forgiven, contact your loan servicer. Those individuals still dealing with private loan debt may want to consider other methods to help manage it. For example, they could speak with their lender about any repayment options the lender might offer given the circumstances, check to see if their state has any programs to help students after a college closure, or explore student loan refinancing to see if they qualify for more favorable rates and terms.

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/T-studios2

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

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


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

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

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

This article is not intended to be legal advice. Please consult an attorney for advice.

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

SOSLR-Q424-018

Read more
Jan
13
2025

Title IV Financial Aid

By | Going to College, Student Loans, student_loan | Comments Off on Title IV Financial Aid

If you’re going to college or graduate school, there are multiple forms of financial aid you can apply for, including scholarships, grants, and student loans. As you research your options, you might come across the “Title IV” financial aid.

What is Title IV financial aid, and what does it mean for students? Title IV financial aid refers to several federal financial aid programs authorized by the Higher Education Act of 1965.

Here’s what students need to know about Title IV aid, including which financial aid qualifies and the limits on how much you can receive.

Key Points

•   Title IV financial aid consists of several financial assistance programs for students, including federal student loans, grants, and work-study programs.

•   Eligibility requires attending an accredited institution and, for many types of Title IV aid, demonstrating financial need.

•   Applying involves submitting the FAFSA to determine aid types and amounts.

•   Types of Title IV aid include Direct Loans, Pell Grants, Federal Supplemental Educational Opportunity Grants (FSEOG), and federal work-study.

•   Limits on aid vary by type, with specific caps on Pell Grants, FSEOG, and federal loans.

What Is Title IV Aid?

Title IV financial aid refers to several federal student financial assistance programs available to students attending a higher education institution that has Title IV status. Title IV status is granted by the U.S. Department of Education to a range of institutions, including public and private colleges, as well as trade and technical schools.

Title IV aid is intended to help cover the cost of college for students who can’t afford to pay out of pocket. For that reason, most Title IV aid requires that students demonstrate financial need to qualify.

Which Types of Financial Aid Are Considered Title IV Aid?

Wondering what is Title IV financial aid vs. other forms of financial aid? All Title IV aid involves federal programs that are administered by the Department of Education.

To apply for federal Title IV financial aid, students need to submit the Free Application for Federal Student Aid, better known as the FAFSA.

Here’s a list of the types of federal financial aid that are considered Title IV.

Direct Subsidized and Unsubsidized Loans

Nearly 29% of undergraduate students received federal student loans for the 2022-2023 academic year, according to the latest data from the National Center for Education Statistics.

Direct Subsidized Loans and Direct Unsubsidized Loans are two federal student loans offered by the Department of Education to help students pay for higher education, including four-year college, community college, and trade and technical schools.

The amount of financial aid you can get is determined by your school. The amount you can borrow in federal loans is the cost of attendance minus any other financial aid you receive. Like all student loans, these Title IV loans need to be repaid, but there are some key differences between the two loan options.

With a Direct Subsidized Loan, borrowers aren’t responsible for paying interest on the loan while they’re in school, for the six-month grace period after leaving school, and during student loan deferment. These loans are awarded based on a student’s financial need.

In comparison, Direct Unsubsidized Loans are not based on financial need — they are available to all undergraduate and graduate students. However, interest on these loans accrues while students are in school and during the grace period afterward, and that interest is added to the total principal amount of the loan.

Direct PLUS Loans

The Department of Education offers Direct PLUS loans to grad or professional students (referred to as a Grad Plus loan) and parents of dependent undergraduate students (these are known as Parent PLUS loans). A Direct PLUS loan is an unsubsidized loan with a fixed interest rate that can help borrowers cover the full cost of attendance, minus other financial aid, such as grants and scholarships.

Direct PLUS loans have higher interest rates than other types of federal student loans, so it’s generally recommended that students exhaust all their other Direct Loan options before considering this type of Title IV aid.

Federal Supplemental Educational Opportunity Grants

The Federal Supplemental Educational Opportunity Grant (FSEOG) program is a type of Title IV aid for students with exceptional financial need. Unlike student loans, grants for college don’t need to be repaid.

Students can be awarded between $100 and $4,000 a year in FSEOG grants. The exact amount depends on the other forms of financial aid received and a school’s availability of funds. Applying early can help increase your chance of accessing funds, but keep in mind that participation in the FSEOG program varies by school.

Federal Work-Study

The federal work-study program is a type of Title IV aid that’s available to students based on their financial need. It allows students to earn money through part-time employment, often related to community service or a student’s field of study.

Work-study jobs may be on or off campus, and schools may help find positions or require that students find, apply, and interview for positions on their own. Students are paid at least the minimum wage in their state, and the amount you earn can’t exceed the federal work-study award.

Pell Grants

As mentioned, grants are a type of financial aid that don’t need to be repaid, making them a desirable form of Title IV federal financial aid.

Pell Grants are awarded based on financial need to students who have not yet earned a bachelor’s degree. Aside from demonstrated financial need, students need to maintain satisfactory academic progress toward their degree to keep Pell Grants.

For those eligible for Pell Grants, the maximum award is $7,395 for the 2024-2025 academic year. The amount is subject to change each year.

Are Scholarships Considered Title IV Aid?

Scholarships can come from a range of sources, and like grants, do not need to be repaid. Scholarships are not considered Title IV Aid. However, both merit- and need-based scholarships often require that students complete the FAFSA to be eligible to apply.

Recommended: Student Loan Refinancing Guide

How Do I Find Out If I Qualify for Title IV Aid?

To recap, Title IV aid is awarded based on financial need, with the exception of Direct Unsubsidized Loans. Students also must meet other eligibility criteria to qualify, including citizenship requirements and being enrolled in or accepted at an accredited higher education institution with Title IV status.

Students need to fill out and submit the FAFSA to determine what Title IV financial aid they qualify for. Pell Grants and FSEOG awards are issued on a first-come, first-served basis, so applying early is recommended. Note that students can list multiple institutions on their FAFSA application if they’re still undecided about what school to attend.

Are There Limits to the Title IV Aid I Can Receive?

Some types of Title IV aid, such as Pell Grants and FSEOG awards, have set limits of $7,395 and $4,000 per year, respectively, for all students.

For federal student loans, the total amount you can borrow depends on your academic year, the type of loan, and your dependency status. If you are a dependent student, you can borrow up to $31,000 in federal loans for your undergraduate studies, with a cap of $23,000 for Direct Subsidized Loans.

The amount of Title IV aid you can receive is also limited by the cost of attendance at your school.

If you don’t receive enough financial aid to pay for school, you may want to consider private student loans to help cover the gap. With private loans, you receive a loan from a private lender, such as a bank, credit union, or online lender. The interest rate and terms you get are based on your credit, and borrowers must pass a credit check to qualify. For college students who typically don’t have enough of a credit history, a cosigner on the loan may be required.

Keep in mind that you could always choose to refinance student loans later on when you have a stronger credit history. Ideally, you may be able to get a lower interest rate or more favorable terms. (Just be aware that if you opt to refinance federal loans, that makes them ineligible for federal benefits such as income-driven repayment plans and student loan forgiveness.)

If you can qualify for better rates and terms, refinancing student loans to save money may make sense for you.

Using a student loan refinancing calculator can help you see what your payments might be.

The Takeaway

Title IV aid refers to several federal assistance programs that are intended to help make higher education more affordable. Many of these programs are based on financial need, and students need to complete the FAFSA to find out what federal financial aid they qualify for.

There are limits to how much students can receive in financial aid, however, and students may consider taking out private student loans to fill any funding gaps. Later on, they might consider student loan refinancing to reduce their payments.

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/fizkes

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

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


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

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

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

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

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

SOSLR-Q424-020

Read more
Close modal

See what SoFi can do for you and your finances.

Select a product below and get your rate in just minutes.

Student Loan
Refinancing

Personal
Loans

Online
Investments

Other

Terms and conditions apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. To qualify, a borrower must be a U.S. citizen or other eligible status, be residing in the U.S., and meet SoFi's underwriting requirements. Not all borrowers receive the lowest rate. Lowest rates reserved for the most creditworthy borrowers. If approved, your actual rate will be within the range of rates at the time of application and will depend on a variety of factors, including term of loan, evaluation of your creditworthiness, income, and other factors. If SoFi is unable to offer you a loan but matches you for a loan with a participating bank, then your rate may be outside the range of rates listed above. Rates and Terms are subject to change at any time without notice. SoFi Personal Loans can be used for any lawful personal, family, or household purposes and may not be used for post-secondary education expenses. Minimum loan amount is $5,000. The average of SoFi Personal Loans funded in 2023 was around $33K. Information current as of 2/26/24. SoFi Personal Loans originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org). See SoFi.com/legal for state-specific license details. See SoFi.com/eligibility for details and state restrictions.

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

©2025 Social Finance, LLC All rights reserved.
TLS 1.2 Encrypted
Equal Housing Lender