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It’s pretty much a given that you need to study for your AP Exams, but for how long? And how much can vary depending on everything from your personal study habits and the AP class itself.

When planning out how to study for an AP test, keep in mind that your AP classes might not cover all of the course material until a month or so before the test itself, which you’ll typically take in May, toward the end of the school year.

Creating a Study Timeline

Doing well on your AP Exams could also pay off later in college, potentially saving you money by helping reduce your course load. One smart way to prepare for your AP test is to create a timeline leading up to the test. Giving yourself a schedule you can (hopefully) stick to might help keep you organized while studying.

Here are some ideas to help you prepare for your upcoming AP Exams—all arranged in a timeline leading up to your AP tests.

January (16 Weeks Out)

To first figure out how to study for AP Exams, you can evaluate how your current AP classes are going. One place to start is by checking your grades from last semester and if you are struggling with a certain topic, contacting your teacher to see what help is available.

You might want to schedule some extra one-on-one time or join (or even start) a specific class study group. Of course, your grade isn’t necessarily an indication of the score you will get on your AP Exam. But, if your teacher has been using AP practice questions on tests, that could still give you a sense of your early performance—and it may even boost your confidence going into the test if you’re acing those practice answers.

This might be about when you want to start deciding which AP Exams you want to take in May. Just because you are in an AP class doesn’t mean you have to take the AP exam in that subject. But, you should also consider which exams might help put you on a path toward college and career success.

The test schedule is always published well in advance of the exam days. You can start by checking to see when your exams will take place and blocking the dates out in your calendar now. If you have exams scheduled for the same date and time, this is a good time to ask your AP coordinator or teacher about taking one during an approved late-testing period .

February (12 Weeks Out)

A productive next step is to learn the format for each AP exam you plan to take. Paying attention to the structure of class tests might give you a keen understanding of the types of questions you can expect.

There are a total of 38 AP Exams, and each has its own requirements. Most will be two to three hours long with a mix of multiple-choice and free-response questions, according to the College Board.

February is when students with disabilities must request any accommodations during the exams. If you will need testing accommodation, you’d want to approach your AP teachers or AP coordinator ahead of the deadline.

March (8 Weeks Out)

If you are a homeschool student, or attending a high school without AP Exams, March is usually when you must contact AP Services for a list of local schools and coordinators where you can arrange to take your test(s). Keep in mind, however, that sometimes schools need to order exams for students by November , so it’s important to do your research early.

AP Exams cost $94 each in 2019 , so this month would also be a great time to start budgeting for how many exams you plan to take and how you will pay for them. Even if your parents are paying for your exams, you’re responsible for making sure they understand the cost and when to submit payment to your school.

The College Board, which oversees the AP, offers a $32 fee reduction for students facing financial hardship, and individual states also provide some funds to help reduce the test cost even more.

You should start to really delve into your AP study regimen about halfway through the school year , so when you return from winter break, it you’d want to gather your notes and organize them in a way that makes them easy to study. Then, by March, it might be time to actually start reviewing those notes.

March may also be a good time to take a practice exam. After reviewing your practice examine, you can come up with a study plan to go over your notes and materials for a few hours every week.

April (Four Weeks Out)

By April, you will probably be completely registered for all of your AP Exams. If you haven’t gotten a link from your school guidance counselor, you may want to check in with a school administrator. This is when you really should start to study in earnest, if you haven’t done so already.

Now’s the time to start taking more practice exams, in addition to your regular study and review. You can look up old AP questions online or find a course-specific prep book. School libraries might even have review materials, if you don’t want to buy your own.

Once you’re four weeks out, it might be more efficient to study just the areas you feel less practiced and confident in, rather than trying to cram in all of the information from the past year. The practice exams and questions can help you sort out which topics just need a simple refresh, and which ones you might need to actually relearn.

May (It’s Time!)

You can kick May off by taking another practice exam and focusing on the results compared to when you first began reviewing all those weeks ago. After that, it’s all about day-of test prep, which might include making sure you have your test dates and times marked in your calendar and that you are using the correct, approved calculator for math and science exams.

On test day, you can start your day with a good breakfast—and keep snacks on hand if you are taking multiple tests in one day. Hopefully all of the studying from the last few months will be worth it when you sit down to take the AP Exam and you feel prepared.

AP Study Hacks and Habits

Working on good study habits in high school can help you to feel more confident when you take your AP Exams, but it can also benefit you in the long run when you need to study in college. That’s why using your AP Exam study time to help you figure out what methods work best for you is so crucial.

In college, you might need to devote a few hours throughout the day to studying, depending on your classes and the time of year. But even with shorter study periods, you may want to build in incentives to keep you motivated. A 10-minute walk outside or around your house at the end of every hour is a great way to keep your mind sharp.

Or, you could hold off watching your favorite TV show or playing your favorite video game until after you have finished studying for the day.

This delayed gratification could help keep you incentivized to study efficiently—without rushing through just to get it over with.

During school, it can also help to consolidate your notes at the end of every week. When you are reviewing your notes from your AP classes, you can try organizing the information as it relates to the sections on the exam. By grouping your notes into related “chunks,” you might find that it’s easier to remember (or refer back to) key points as you get further away from the lesson.

Plus, instead of having a year’s or semester’s worth of scattered information to review as you start taking practice AP Exams, you’ll have a clear, organized information with your note summaries.

Planning for Your Future

The College Board says that nearly all colleges and universities in the U.S. offer credit, advanced placement, or both based on your AP scores, typically with an AP score of 3 or higher.

Some students have reported reducing an entire year of school using AP credits, meaning that your AP Exams could end up saving you a lot of money in college. Of course, you will still need to find a way to pay for college, whether it is three, four, or more years.

When federal loans and aid aren’t enough to cover the cost of tuition, some students find private student loans are able to bridge the gap. While students should exhaust all federal loan options before considering private loans from any lender (including SoFi), if it seems like private student loans may be necessary, know that SoFi also offers private undergraduate loans.

SoFi private student loans offer flexible repayment options and terms, and don’t worry, there are no hidden fees.

One difference between a federal student loan and a SoFi private student loan is that with SoFi, you choose a repayment plan upfront that best matches your financial needs:

Deferred: Similar to the repayment plan offered by the federal government for those types of loans, this plan will mean you start paying the principal loan amount and interest six months after leaving school. This means you do not have to worry about making payments while still in college, but it is the highest overall cost option.

Interest only: Paying just the interest payments while in school. This can result in a moderate payment while in college, but can help reduce your overall cost and repayment total.

Partial: This SoFi repayment plan for private student loans means you’ll pay a $25 monthly payment while in school. This is the lowest payment option for making payments while in school, and may reduce some overall interest costs.

Immediate: You’ll have monthly payments that pay back your principal loan and interest right away, starting as soon as you take out the loan. This is the lowest overall cost option, but requires a higher payment while still in school.

No matter how hard you study for the AP Exams, it’s important to budget some time to study your federal and private loan options, including private undergraduate loans from SoFi.

Learn more about private undergraduate loans from SoFi.

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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.
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SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
SoFi Private Student Loans
Please borrow responsibly. SoFi Private Student Loans are not a substitute for federal loans, grants, and work-study programs. You should exhaust all your federal student aid options before you consider any private loans, including ours. Read our FAQs. SoFi Private Student Loans are subject to program terms and restrictions, and applicants must meet SoFi’s eligibility and underwriting requirements. See SoFi.com/eligibility-criteria for more information. To view payment examples, click here. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change.
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It’s hard to argue against the value of a good internship and how it can prepare a student for life after college.

A few weeks or months spent working in the real world can help build connections and confidence, further develop skills learned in class, and—perhaps most critically—bolster a new graduate’s chances of getting a job. An internship also can help students decide if they’ve chosen the right major and want to continue on the career path they’re on.

Responses to the McGraw-Hill 2018 Future Workforce Survey back up the importance of internships for college students–only four in 10 of those surveyed said they felt very or extremely prepared for their future careers. And more than half said an increase in access to internships and professional experiences would have helped them feel more qualified.

The Gallup-Purdue Index, created to measure and evaluate the long-term success of college graduates, also supports making internships a degree requirement.

That may explain why many universities are pushing for more academic internships and are requiring them for an increasing number of degree programs. Not just for doctors, dentists, accountants, and teachers, but for those seeking careers in sports or hospitality management, communications, technology, and the arts.

The Cost of College Credit Internships

According to the National Association of Colleges and Employers, 43% of internships at for-profit companies are unpaid. Which means that often, the students who take those internships are forgoing full-time, part-time, or seasonal employment to take an internship that doesn’t come with a paycheck.

Instead, that unpaid internship could add to their debt, especially if they have to relocate temporarily (maybe to a larger city or even overseas), buy a car, pay for gas or some other form of transportation, put together a work wardrobe, and pay for food.

Some students who take internships—paid or unpaid—wish to or are obligated to enroll for course credit. So depending on how many credit hours their internship entails (the average is three but it could be more), they could end up paying hundreds of dollars in tuition.

Some schools say the cost is justified because internships are resource intensive. Students who want the experience but not the expense—including those at Seton Hall University, where internships are required to graduate —say requiring students to pay for internship credits in order to register their participation is financially unjust and discriminatory.

Advocacy groups are pushing for more paid internships. And even prestigious gigs that qualify as unpaid—like interning for a member of Congress—are getting a second look after students complained about the financial burden. At Seton Hall, students started a change.org petition . And in recent years, unpaid interns have filed class-action lawsuits against companies they said treated them as employees and should have been paying them at least minimum wage.

In an effort to clear up federal guidelines determining whether an intern at a for-profit company must be paid under the Fair Labor Standards Act, the U.S. Department of Labor’s Wage and Hour Division issued “Fact Sheet #71 ” in 2018.

It relies on seven factors to determine who is the “primary beneficiary” of the intern-employer relationship, including “the extent to which the internship provides training that would be similar to that which would be given in an educational environment,” “the extent to which the internship is tied to the intern’s formal education program by integrated coursework or the receipt of academic credit,” and “the extent to which the intern’s work complements, rather than displaces the work of paid employees while providing significant education benefits to the intern.”

In other words, interns want to and are supposed to be doing relevant work, not making copies, fetching coffee, and running other errands that paid employees would be doing if the interns weren’t there.

How Much Do Paid Internships Pay?

Paid interns aren’t getting rich, but they are at least making minimum wage. According to the National Association of Colleges and Employers 2018 Internship & Co-op Survey , the average hourly wage earned by interns was up 3.7% from 2017, and the increase was across all degree levels and years.

Average hourly wages in 2018 ranged from $14.47 for first-year associate degree students to $32.35 for those pursuing doctoral degrees. Indeed.com estimates the average intern salary in the U.S. is about $13 per hour .
Those wages help pay some expenses, but not all—making an internship an opportunity many students and their parents simply can’t afford or they must struggle to pay for.

If you’re thinking, “Well, that’s what student loans are for,” you’re technically correct. Student loans are meant to cover educational expenses, so you can use the money from the government and (possibly) private loans to pay for the expenses that go along with your academic internship just as you would if you were in a class at school. That could include room and board, travel costs if you have to relocate, transportation, and equipment you need for the internship.

Of course, the debt you take on to get that internship experience could come back to haunt you when you’re out of school and those loans come due. So it’s important to weigh the costs of the internship against its benefits.

Particularly if it’s an unpaid internship, or if you’re required to complete an internship for college credit, you might consider doing some research to find companies that are known for offering applicable career skills and have a positive impact on your resume.

Ask your internship coordinator what tangible benefits you could see—is the internship approved for college credit? Will you get meaningful references? Will there be consequential networking opportunities?

Will the company offer you more than a form letter as a reference? How will this internship help you stand out from others hoping to get similar employment?

Before you commit, you also may want to create a financial plan, starting with figuring out where you’ll live and then working through your budget from there. And you might want to consider asking whether taking a side gig outside your internship is feasible and ok with the company.

Once you’ve finished your internship, gotten your degree, and moved on to full-time employment, you can buy a round of drinks for your old college buddies and commiserate about whether you actually got anything from your classes and internships, and whether the benefits were worth the cost.

Paying Back the Money You Owe

Before you even graduate, you may want to begin educating yourself about the best payback options for your situation (depending on what types of student loans you have), look at interest rates, and think about whether you would be interested in consolidating or refinancing your loans.

If you can’t find a better interest rate than you already have on your federal loans, you might want to leave things as they are. Federal student loans offer protections and benefits that won’t transfer to a private loan if you refinance. But you may find you can get a lower rate by refinancing with a private lender, which also could allow you to combine your loans into one manageable payment.

If you’re considering refinancing your student loans with SoFi, you may qualify for competitive interest rates and member benefits like unemployment protection. As a SoFi member, you’ll also have access to membership services that can help you continue working toward your career goals—and your life goals.

Need help dealing with your student debt? Check out SoFi to see if refinancing with SoFi is right for you.

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

SoFi Student Loan Refinance
If you are looking to refinance federal student loans, please be aware that the White House has announced up to $20,000 of student loan forgiveness for Pell Grant recipients and $10,000 for qualifying borrowers whose student loans are federally held. Additionally, the federal student loan payment pause and interest holiday has been extended beyond December 31, 2022. Please carefully consider these changes before refinancing federally held loans with SoFi, since the amount or portion of your federal student debt that you refinance will no longer qualify for the federal loan payment suspension, interest waiver, or any other current or future benefits applicable to federal loans. If you qualify for federal student loan forgiveness and still wish to refinance, leave unrefinanced the amount you expect to be forgiven to receive your federal benefit.

CLICK HERE for more information.

Notice: SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers such as Income-Driven Repayment plans, including Income-Contingent Repayment or PAYE. SoFi always recommends that you consult a qualified financial advisor to discuss what is best for your unique situation.

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If you get a job with a governmental agency or not-for-profit organization and you have federal student loan debt, you may be able to receive loan forgiveness under the Public Service Loan Forgiveness (PSLF) program.

Currently, if you qualify for this program, and make 120 payments under a qualifying repayment plan while working full time for an employer that falls within PSLF parameters, then the government will forgive the remaining balance of your Direct Loans.

List of Public Service Jobs

You may be asking: What is a public service job? What type of job would qualify me for PSLF?
According to the office of Federal Student Aid, the answer to those questions is that qualifying public service employment is not about your specific role, it’s about who employs you. Their list of public service organizations includes:

•  government organizations at any level (federal, state, local, or tribal)

•  not-for-profit organizations that are tax-exempt under Section 501(c)(3) of the Internal Revenue Code

•  other types of not-for-profit organizations that are not tax-exempt under Section

•  501(c)(3) of the Internal Revenue Code, if their primary purpose is to provide certain types of qualifying public services

•  serving as a full-time AmeriCorps or Peace Corps volunteer

Bullet point three mentions jobs that have a primary purpose of providing “certain types of qualifying public services.” To have the potential to qualify for the PSLF program under this option, you’d need to work for an employer that has at least one of the following as a primary purpose:

•  Emergency management

•  Military service

•  Public safety

•  Law enforcement (this includes “organizations that are publicly funded and whose principal purposes include crime prevention, control or reduction of crime, or the enforcement of criminal law”)

•  Public interest law services (this refers to “legal services provided by an organization that is funded in whole or in part by a local, state, federal, or tribal government”)

•  Early childhood education (this includes “licensed or regulated child care, Head Start, and state funded pre-kindergarten”)

•  Public service for individuals with disabilities

•  Public service for the elderly

•  Public health (this includes “organizations that employ nurses, nurse practitioners, nurses in a clinical setting, and full-time professionals engaged in health care practitioner occupations and health support occupations, as such terms are defined by the Bureau of Labor Statistics”)

•  Public education (this includes “services that provide educational enrichment or support directly to students or their families in a school or a school-like setting”)

•  Public library services

•  Other school-based services

There are a few types of employers whose employees do not qualify for PSLF. They are:

•  Labor unions

•  Partisan political organizations

•  For-profit organizations, including for-profit government contractors

•  Not-for-profit organizations that:

◦  Are not tax-exempt under Section 501(c)(3) of the Internal Revenue Code

◦  Do not provide a qualifying public service as their primary function

You can also use a tool provided by StudentLoans.gov to see if you potentially qualify for forgiveness under the PSLF program.

Why You Might Choose the Public Service Path

Working in public service can feel wonderful, knowing that you’re helping to make your community a better place.

Although you can accomplish that by working a for-profit job and also volunteering for a cause that matters, when you work in one of the public service jobs, this is what you’re doing as your vocation, full time—and you can still choose to volunteer for causes you care about on the side.

Pros and Cons of the PSLF Program

While there are advantages to going the public service route and potentially qualifying for PSLF, it is not a guarantee that you will qualify and that it will be worth it in the long run.

The main advantage to PSLF is that after a set time, the balance of your Direct Loans could be forgiven. And the forgiven amounts in this program aren’t typically considered income, which would mean you wouldn’t be taxed on the forgiven amount—that isn’t true of all of the loan forgiveness programs.

You may also pay less on your federal loans each month because you must use an income-driven repayment plan to be eligible to receive PSLF, and that can help with cash flow.

However, as we mentioned above, you may qualify only if you work for certain types of employers. And to take advantage of PSLF, you’ll need to work full-time for a qualifying employer for 10 years and make 120 qualifying payments—and make sure, every year (or if you switch employers), you submit an Employment Certification Form. You also may need to jump through additional hoops to qualify; PSLF is not awarded automatically.

It’s also worth considering that if you work for a for-profit employer, you might make more money than you would at a public service job, which could allow you to pay off your student loan debt more quickly. If you aggressively paid off your student loans in fewer than 10 years, it’s possible that you could pay less in interest than if you made 120 payments under this forgiveness program.

And, if you enroll in the program but then stop working for a qualifying employer, you could end up with a larger outstanding balance because of accumulated interest from the income-driven repayment plan (more loan payments means more interest payments).

A New York Times article, published in May 2018 (“Public Servants Do Get Student Loan Forgiveness. Meet One of the First.”) includes stories from people who struggled to first qualify for the program, and then to get “coherent status updates.”

One doctor mentioned in the article handed her paperwork off to her mother, an attorney, and neither of them could navigate the process successfully. Another person who is struggling to glean the benefits of the program is an attorney who actually works for the Department of Education, which administers the program.

Another challenge is that the PSLF program focuses only on federal student loans so, if you also have private ones, they aren’t eligible for PSLF, even if you work in one of the qualifying public service jobs. Getting loan forgiveness for private loans is highly unlikely, although you may be able to talk to your private lender to obtain more temporary relief measures, such as loan deferment or forbearance if necessary.

In fact, the only times when loan forgiveness seems to happen with private loans is typically under exceptionally dire circumstances, such as if the borrower becomes completely disabled or dies. Even then, there isn’t a formal process for forgiveness.

What to Do If PSLF Isn’t Right for You

So, what do you do if you don’t qualify for PSLF or if you have private loans? One option is to refinance your student loan debt. If you have a good credit history and solid income potential (among other important financial factors), then you might qualify for a lower interest rate, which can reduce the amount of money you’d pay over the life of the loan.

Some lenders, like SoFi, will consolidate federal and private student loans, and then refinance them into one loan. This means that your new lender would pay off all of your old loans, and then, based on terms you agree to, issue a brand new loan to you.

If you refinance your federal loans with a private lender, you would then lose the potential for any federal benefits, including PSLF and income-driven repayment plans, so it’s important to do your homework first: consider your short-term and long-term needs; make sure you’re getting the lowest rate possible; ensure that the lender has the loan programs (fixed/variable) and terms you need; check to see if you’ll have to pay any fees; see what benefits you can gain with your new lender; and find out if the lender you’re considering will first do a soft credit pull before you apply (so you can see what rates you qualify for) that won’t have the potential to affect your credit rating.

Student Loan Refinancing with SoFi

It’s important to remember that you should review all federal repayment options first before refinancing with a private lender. If you do choose to refinance with a private lender, consider SoFi.

At SoFi, you can consolidate federal student loans with private ones, refinancing them into one convenient loan. Plus, there are no hidden fees. And SoFi offers member discounts and career counseling, among other potential benefits. You can use SoFi’s student loan refinancing calculator for an estimate of how much you might save.

Learn more about SoFi student loan refinancing and find your rate today.

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

SoFi Student Loan Refinance
If you are looking to refinance federal student loans, please be aware that the White House has announced up to $20,000 of student loan forgiveness for Pell Grant recipients and $10,000 for qualifying borrowers whose student loans are federally held. Additionally, the federal student loan payment pause and interest holiday has been extended beyond December 31, 2022. Please carefully consider these changes before refinancing federally held loans with SoFi, since the amount or portion of your federal student debt that you refinance will no longer qualify for the federal loan payment suspension, interest waiver, or any other current or future benefits applicable to federal loans. If you qualify for federal student loan forgiveness and still wish to refinance, leave unrefinanced the amount you expect to be forgiven to receive your federal benefit.

CLICK HERE for more information.

Notice: SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers such as Income-Driven Repayment plans, including Income-Contingent Repayment or PAYE. SoFi always recommends that you consult a qualified financial advisor to discuss what is best for your unique situation.

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It’s no secret that student debt is massive. The overall balance of student loans is currently estimated to be nearly $1.5 trillion (yes, trillion), with 44.7 million people in the U.S. having a share of this debt to pay back.

If you have student loan debt, it’s natural to wonder where you fall within this debt spectrum. Do you owe, say, the average amount for someone in your situation? Or do you owe more—or, if you’re lucky, less?

This post will share a wide range of facts about today’s student loan debt to help you put your situation in perspective.

Student Loan Balance Overview

A 2018 article in Forbes.com provides a snapshot of today’s student loan debt, including the statistics we shared up top; the article also states how the average student debt for students in the class of 2016 is $37,172.

Here are the categories of student loan balance breakdowns:

•  Student loan debt of $100,000 or less: 42 million borrowers

•  Student loan debt of more than $100,000: 2 million borrowers (of that, 415,000 have debt higher than $200,000)

•  Student loan debt of $10,000-$25,000: 12.4 million borrowers

The amount of debt owed varies by state, with states having larger populations also bearing a larger proportion of student loan debt. In fact, people in just four states are carrying 20% of this debt.

Here’s something else to consider. If you’re getting ready to need to start paying back what you owe, you may know how much you originally borrowed, but how can you tell what you owe with accumulated interest added on?

Checking Your Student Loan Balance

Student loans come in two broad types, federal and private. Federal loans are either subsidized or unsubsidized. If it’s the former, then the government has been paying your interest while you’ve been in school and you only become responsible for interest when you’re no longer in college (and after your six-month grace period). With unsubsidized loans, the interest will accumulate on the amount you borrowed while you’re still in school, and you’re responsible for paying that interest from the moment your unsubsidized loan is disbursed.

To find out what you owe in federal loans, you can check your federal student loan balance at the National Student Loan Data System (NSLDS). The college you attended has sent federal loan information to the NSLDS and this central database stores that information so you can access it when you need it. It will also show you how much of your loan balance is subsidized versus unsubsidized, along with other types of useful information.

As far as private student loans, you’ll need to contact the lender that gave you the funds to find out how much you owe. If you borrowed from more than one private lender, you’ll need to contact each one individually.

Federal loans typically come with a six-month grace period. Be sure to check with each private lender, if applicable, to see if you have a similar grace period with them. Once you know your total balance, then it’s time to figure out some strategic ways to pay back the balance.

Federal Student Loan Balance

The federal government offers forgiveness programs, and if relevant to your situation, you may get a portion of your remaining debt forgiven—meaning, you wouldn’t have to pay it back. It’s important to check to see which federal programs currently exist and see if you may qualify.

One such program is the Public Service Loan Forgiveness (PSLF) Program where people who work in public service occupations may qualify for 100% forgiveness after making 120 on-time, qualifying payments.

To qualify, you would need to be employed full-time at an eligible governmental agency (federal, state or local) or at another designed organization, such as a 501(c)(3) nonprofit (not religious). If you believe you qualify, there is an employment certification form you’ll need to fill out each year and meet all requirements. It’s important to note here, however, that qualifying for these forgiveness programs can be quite stringent.

There are also income-driven repayment plans for federal student loan balances where payments are capped, based on your income. (If you intend to pursue the public forgiveness option, you must repay your loan using an income-driven repayment plan.) If you consistently make payments for 20 or 25 years, depending upon your modified agreement, any remaining balance could be forgiven. One potential flaw is that loan amounts forgiven under this program can be taxed as income, so you could end up with a large tax bill.

Here’s another idea. While the Standard Repayment Plan is the typical default repayment plan offered by the federal government, there are different federal student loan repayment options available that can have longer terms—but you have to request one. If you choose an option with a longer term, this will likely lower your monthly payment, but increase the amount of interest you’ll pay over the life of your loan.

More Ideas to Consider

It may not hurt to talk to your human resources department at work to see if they offer any student loan repayment benefits. The New York Times estimates that around 4% of employers are offering this type of benefit, up from 3% in 2015.

Plus, Forbes.com called student loan repayment benefits the hottest benefit last year, and notes that, to “attract and retain recent graduates, in particular, companies are expanding their employee benefit programs to help reduce student loan debt for their employees.” So, it’s possible that increasing numbers of employers will offer them (perhaps yours!).

And, although this may not be a huge cost savings, many lenders will give you a discount if you set up an automatic payment option. In addition, you could consider bumping up your payments when you can to help make a dent in your balance.

Because federal and private loans alike allow for prepayments without a penalty, any time you can pay more than the minimum amount, it helps to reduce the amount of interest owed over the life of the loan—and this can help you to pay your loans off more quickly.

Finally, here’s one more idea to consider: student loan refinancing. The act of simply refinancing your loans into one can add a helpful convenience factor, making it much easier to streamline your bills. And yes, you can consolidate all your federal loans into one with a Direct Consolidation Loan, but the rate is typically a weighted average of all the current rates on your federal loans, rounded up to the nearest eighth of a percent. So, you get the convenience factor (unless you also have private loans, which can’t be consolidated into a Direct Consolidation Loan!), but your interest rate may not be lower.

With SoFi, you can consolidate your federal and private loans, and refinance them into one low interest loan—although, in the interest of complete transparency, we strongly encourage you to explore your federal options before refinancing with a private lender.

Thinking about refinancing your student loans? Get started online now.

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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.
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.

SoFi Student Loan Refinance
If you are looking to refinance federal student loans, please be aware that the White House has announced up to $20,000 of student loan forgiveness for Pell Grant recipients and $10,000 for qualifying borrowers whose student loans are federally held. Additionally, the federal student loan payment pause and interest holiday has been extended beyond December 31, 2022. Please carefully consider these changes before refinancing federally held loans with SoFi, since the amount or portion of your federal student debt that you refinance will no longer qualify for the federal loan payment suspension, interest waiver, or any other current or future benefits applicable to federal loans. If you qualify for federal student loan forgiveness and still wish to refinance, leave unrefinanced the amount you expect to be forgiven to receive your federal benefit.

CLICK HERE for more information.

Notice: SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers such as Income-Driven Repayment plans, including Income-Contingent Repayment or PAYE. SoFi always recommends that you consult a qualified financial advisor to discuss what is best for your unique situation.

SoFi Private Student Loans
Please borrow responsibly. SoFi Private Student Loans are not a substitute for federal loans, grants, and work-study programs. You should exhaust all your federal student aid options before you consider any private loans, including ours. Read our FAQs. SoFi Private Student Loans are subject to program terms and restrictions, and applicants must meet SoFi’s eligibility and underwriting requirements. See SoFi.com/eligibility-criteria for more information. To view payment examples, click here. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change.
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For a tale of divorce, debt, and ultimately, triumph, look no further than Julie Carman Farrer, SoFi member. Farrer’s debt payoff story could serve as inspiration for anyone going through a tough time in their life.

Farrer and her ex-partner accumulated $24,500 in debt during their marriage and divorce. Farrer took control of the situation by consolidating her credit card debt with two personal loans.

With laser focus, dedication, and the help of an unexpected signing bonus, she was able to pay off the personal loans she took out in less than three years, making her consumer debt-free for the first time in a long time.

According to Farrer, the peace of mind that she has achieved after paying off her loans, along with the lessons that she’s learned from living through the process, are “absolutely priceless.”

Knowing how to pay for divorce is particularly tricky because most people don’t necessarily plan for a divorce. It doesn’t seem likely that someone would create a special savings account to save up for divorce. Often, this leaves people feeling like they are stuck in a corner.

For those scratching their heads and wondering how to pay for a divorce, Farrer’s story shows us that there are options. But we should point out here that this story is purely an examples to learn from—and what worked for one person might not work for someone else.

Following in one member’s footsteps might not yield the same results, because everyone’s finances and life circumstances are different. Using her journey as your guide, you may find some ideas to help with a financial plan for your divorce.

How Much Does Divorce Cost?

We’ll start with the crummy news—getting a divorce, already a difficult experience, is also expensive. According to Nolo , long-time publishers of consumer-friendly legal information, the typical divorce costs around $15,500. Of this amount, $12,800 can be expected to go toward paying legal fees and lawyers.

Here are some common costs to prepare for when getting a divorce: attorney’s fees, legal and court fees, financial planner and/or accountant, and the costs associated with dividing assets, such as refinancing a mortgage loan. On an ongoing basis, one party may have to make divorce payments to the other party.

Every divorce is different. How much it will cost you could depend on a number of factors, like whether the relationship is civil and if the divorce will be settled in or out of court. According to Nolo’s findings, it may also depend on where you live and who you hire to assist with the divorce process.

Another variable that makes it hard to say just how much a divorce will cost? The status of your financial situation prior to the divorce proceedings. Julie Carman Farrer is familiar with this reality.

According to Farrer, rash financial decisions during her marriage caused their debt to spiral out of control. In addition to the expenses associated with divorce, Farrer held the burden of carryover debts.

How Do I Pay for My Divorce? One Woman’s Story

Ideally, every individual, couple, and family would have some emergency money set aside to cover unforeseen events. While many aren’t thinking the money would be for a divorce, that could qualify as an unexpected expense. If you do know that a divorce is coming, you may want to consider cutting costs as much as possible to prepare.

Plenty of people resort to using credit cards to pay for a divorce. Others may already have credit card debt from marriage, like Farrer. She and her ex-partner accumulated a mound of debt prior to their divorce, and Farrer used the split as inspiration to pay off the debt.

“I started looking for a solution immediately after my divorce,” Farrer says. “I was determined to break the debt cycle and stop living check to check.” Sick of losing sleep over her credit card bills, she crafted a plan to eliminate her debt, once and for all.

First, Farrer consolidated her credit card debt into two personal loans from SoFi, totaling $24,500. These loans helped put her on track to pay back her debt over the course of three years. If she were to have made only the minimum payments on her credit cards, it likely would have taken her significantly longer.

Note: With credit card minimum payments, only a small percentage of the debt’s principal balance is chipped away with each payment. It can be extremely difficult to pay off a card only making the minimum payments, especially if you’re continuing to use the card for new purchases and have a high interest rate.

By switching out her credit cards with personal loans, Farrer was able to significantly lower the interest rate on her debt. In general, credit cards have a high rate of interest—according to the Federal Reserve the average credit card charges around 15% interest. With the lower rates of interest that came with her personal loans, in this case also called a divorce loan, Farrer was able to apply more money to the actual principal of the loan, and less to interest payments.

While Farrer loved having those lower rates, she also appreciated having a defined path toward debt repayment.

Compare this to the cycle of credit card use she felt trapped in prior to her divorce: “My ex and I used to consolidate credit card debt all the time, but then rack up more debt on the then-empty cards,” Farrer explains.

After paying off the credit cards, she vowed to use them responsibly. She’s happy to report that she’s been successful and no longer carries a balance.

“If you’re paying off debt and you have an active debt-reduction plan, don’t shoot yourself in the foot by continuing to accumulate additional debt,” says Farrer.

Unfortunately, that temptation to continue using credit cards can work against people trying to make progress on a debt repayment plan. But Farrer encourages others like her to stay strong: “It’s a vicious cycle but it’s so worth it to break that cycle and be free!”

Farrer was on track to pay off her two personal loans in three years. Luckily, due to an unexpected signing bonus at work, Farrer was able to pay her loans off in full earlier than planned.

Using credit cards and later consolidating to personal loans worked for Farrer, but it’s also possible to take out personal loans with the purpose of paying for unexpected divorce-specific expenses. But as with any new debt, whether credit cards or a loan, it’s a good idea to have a plan to pay it back.

The Silver Lining

While neither debt nor divorce are typically seen as positives, it may be possible to use these setbacks as motivation to turn things around in a big way.

That’s what Farrer did: “Thankfully, once I got my divorce, I was able to get a handle on my spending, saving, and debt reduction. My quality of life greatly improved!”

How does Farrer handle her finances now that her loans are paid off? “I’m much more careful about my spending these days and while I still utilize my credit cards (for the points), I can pay the balance in full every single month.”
With her extra savings, she’s also been able to accumulate a healthy nest egg and emergency fund. For Farrer, the feeling of financial stability is incomparable, and was so worth the work.

Best of all, she’s been able to treat herself with travel without putting those trips on credit cards that she can’t pay off right away. As a celebration for paying back her loans, Farrer took a trip to Colorado to hike and explore.

But that’s not the only vacation she’s been on: “I was able to take an eight-day family cruise vacation to the Caribbean. It felt great to be able to pay for the vacation in full without any additional debt.”

A Caribbean vacation free from financial stress? That’s a pretty great outcome, considering where Farrer started three years prior.

Putting Your Financial Health First

If you’re considering taking out a personal loan to get you through a tough financial time (or to consolidate old debts, like Farrer), shop around for a lender that offers great rates and excellent customer service.

Farrer loved working with SoFi because the process was all online and completely easy. In fact, she has since refinanced her mortgage with SoFi because her experience was such a positive one.

Getting through a divorce is never easy. But with some careful planning and research into the different options, you can get through it.

A personal loan can help pay for a divorce or consolidate old debts. Ready to see if a SoFi personal loan is right for you? Find your rate in as little as two minutes.

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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.
Member Testimonials: The savings and experiences of members herein may not be representative of the experiences of all members. Savings are not guaranteed and will vary based on your unique situation and other factors.
Guest Participation: The individuals interviewed for this article were not compensated for their participation. Their advice is educational in nature, is not individualized, and may not be applicable to your unique situation. It is not intended to serve as the primary or sole basis for your financial decisions.
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.
SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility for more information.
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