student_loan Archives

Apr

2025

Can You Get A Student Loan with Bad Credit?

By Kayla McCormack | Credit, personal_loan, Student Loans, student_loan | No Comments

It is possible to borrow a student loan with bad credit. Federal student loans, with the exception of Direct PLUS loans, do not require a credit check.

Private loans, on the other hand, generally do review a borrower’s credit history to inform their lending decisions.

Read on for more information on student loans, how credit scores are used in a lender’s decision making process, and how to get a student loan with bad credit.

Key Points

• Federal student loans typically do not require a credit check, except for Direct PLUS loans.

• With private student loans, lenders generally check a borrower’s credit score and history for approval.

• Applicants with bad credit may need a cosigner to secure a private student loan.

• Building credit through responsible financial habits such as paying down debt and making bill payments on time can improve future lending options.

• Refinancing student loans with a stronger credit score could result in lower interest rates and better repayment terms.

Getting a Federal Student Loan

When applying for most federal student loans, the status of your credit is not usually a factor. One exception is if you are in default on an existing federal loan — that may hinder your ability to qualify for more federal funding.

In order to take out federal student loans, you first need to fill out the Free Application for Federal Student Aid (FAFSA®). If you are a dependent student, you will also need your parents to fill out their portion of the FAFSA.

Are you a Dependent Student?

Not sure if you’re a dependent student or not? You very likely are if you are under the age of 24, even if you are financially independent and even if your parents don’t claim you as a dependent on their tax forms any more.

If you’re under the age of 24, there are a few ways you wouldn’t be considered a dependent student including if you are legally emancipated, an orphan, married, an armed services veteran or currently serving active duty, or if you have legal dependents other than a spouse.

Subsidized and Unsubsidized Student Loans

The FAFSA is used to determine your financial aid award, including both Direct Unsubsidized or Subsidized Loans.

Subsidized Federal Loans take financial need into account and the federal government will pay the interest that accrues on these types of loans while the borrower is attending college. So, the principal amount that is initially borrowed will remain the same until after graduation.

Unsubsidized Federal Loans don’t take your financial need into account, and you are responsible for paying any interest that accrues — including while you’re in school and during times of deferment or forbearance.

Another type of federal Direct loan is called the PLUS Loan, and it’s available to parents of students if they want to help fund their children’s college education. It’s also available for graduate/professional students. According to the Department of Education, all Direct PLUS Loan applicants go through a credit check, because a qualification of the loan is that the borrower can’t have an “adverse credit history.”

Getting Private Student Loans

If you find that sources of funding like federal student loans, scholarships, grants, or earnings from work-study will not be enough to fund your education, then private student loans may be another option to consider. Note that private student loans do not come with the same borrower protections afforded to federal loans (such as federal forgiveness programs or income-driven repayment plans or deferment options) and are usually considered after all other options have been reviewed.

When it comes to private student loans, you may be asking yourself, can I get a student loan with bad credit? Private lenders are more likely to rely on credit scores and credit history when determining their lending decisions.

So if you currently have a lower credit score, or not enough credit history, you may want to consider applying with a cosigner who has solid credit history, which can help strengthen the loan application. And if you haven’t really established your own credit history yet, a private lender will also likely want a cosigner for at least two reasons:

• There is scant record to demonstrate how responsibly you would pay back a loan

• About 15% of your FICO® Score is based on the length of your credit history (and 90% of lenders use FICO Score when making lending decisions)

Development of Credit Scores

Credit scores were developed by the three major credit bureaus and the Fair Isaac Corporation (FICO) in the late 1980s and have now been widely adopted by the financial industry. Before the development of such scores, lenders needed to slog through credit reports that were sometimes pages long, and then make lending decisions that, at least in part, were based on these reports. Under that system, it was easier for the biases of lenders to play a role in lending decisions.

With credit scores, information is quickly summarized, and lenders can establish objective requirements about what type of credit is needed before a cosigner is required and/or a loan can be approved.

How Credit Scores Are Used

When applying for a loan, as mentioned previously, about 90% of lenders refer to your FICO Score as a sort of risk “litmus test.”

For example, let’s say you apply for a private student loan. The lenders will review your application, including your credit score, and they can approve it or deny it.

Besides your credit score, lenders will likely look at factors like how many loans you currently have, your payment history, and the amount of time in which you’ve responsibly used credit.

Building Credit Scores

Thirty percent of your FICO Score is based upon how much money you owe. This means that reducing your debt may help build creditworthiness. These are some ways to help pay off debt and potentially strengthen a credit score:

• Make monthly payments on-time.

• Prioritize paying off your credit card balance monthly.

• Consider reducing the interest rate on your debt by consolidating credit card debt into a personal loan, which generally has lower interest rates than credit cards.

• Snowball down the debt. With the snowball method, if you have debt spread across multiple credit cards, you start by paying off the account with the smallest balance while making minimum payments on the rest. Then move to the next smallest bill, paying as much as you can on that one until it’s paid off, and so forth.

• Limit the amount of spending done with a credit card.

Once your credit gets stronger, you may want to consider refinancing any existing student loans you have. With student loan refinancing, you take out a new loan to replace the old loan, ideally with a lower interest rate and better terms.

If you currently have student loans, and you’re wondering if refinancing might be a good option for you, using a student loan refinance calculator can help you determine how much you might save.

Should you refinance your student loans? If you can get better rates and terms with a stronger credit score, it may be worth it. However, it’s important to note that refinancing federal student loans makes them ineligible for federal programs and protections. If you don’t need to use those programs, you may want to explore refinancing.

Recommended: Student Loan Refinancing Guide

The Takeaway

It is possible to get a student loan with bad credit. Aside from Direct PLUS Loans, federal student loans do not require a credit check.

However, private student loans usually do require a credit check. Credit scores and credit history are used to determine a borrower’s creditworthiness and can affect whether an applicant is approved for a loan and the terms and rates they qualify for. Keep in mind that if the rate you get is higher than you hoped for, you can always work on strengthening your credit over time and then consider refinancing student loans.

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.

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

Third Party Trademarks: Certified Financial Planner Board of Standards Inc. (CFP Board) owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®, CFP® (with plaque design), and CFP® (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board's initial and ongoing certification requirements.

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.

SOSLR-Q225-008

Apr

2025

What Is A Fellowship?

By Jamie Cattanach | Student Loans, student_loan | Comments Off

If you’re planning to pursue additional studies after you get your undergraduate degree, a fellowship could allow you to achieve your career goals while also helping you pay for school.

What is a fellowship? And how does it work? Read on to find out about fellowship programs and how they might help bring your total educational costs down.

Key Points

• Fellowships provide funding for advanced education, often requiring work or research in return.

• These programs may cover tuition and living expenses, helping to reduce student debt.

• Fellowships are highly competitive and demand high academic performance.

• Fellowships offer valuable hands-on experience and specialized skills, enhancing career prospects.

• Fellowships are available in different fields of study and may last just a few months or as long as several years.

What Exactly Is A Fellowship?

A fellowship is a program that allows students — usually graduate students — to continue their education while earning money at the same time, most often in exchange for doing work in their field of study. It can help cover at least some of the cost of college.

A fellowship might be as short as a few months or as long as several years; it might be funded for a few thousand dollars or cover the entire cost of your graduate education, including living expenses.

The work involved could be field research, local community work, or teaching undergraduates in your discipline while you pursue higher studies. There’s a lot of variety out there depending on the program.

Fellowships are competitive prizes, and successfully securing one often requires a history of high academic merit and also writing a killer application essay (or several). The idea is that students who are awarded fellowships show potential in their field and have the capacity to become successful professionals later on.

While fellowship monies don’t need to be repaid after you graduate from the program (so long as you adhere to the parameters set out by the organization offering the fellowship), you may be doing some work or service in exchange for the funding.

Recommended: How to Pay for Grad School

Types Of Fellowship Programs

Although there are a large variety of individual fellowships programs, there are three common types you’re apt to run into.

1. Graduate Fellowships

Graduate fellowships help graduate students pursue their education by subsidizing some or all of the costs in exchange for work on-campus.

For instance, a graduate fellowship for a master’s degree in creative writing might come with a tuition waiver as well as a monthly stipend to cover living expenses, an option to purchase affordable healthcare through the school, monies to cover certain educational related travels, and so on. In exchange, the student is generally expected to teach a certain number of beginner-level courses in their field to undergraduate students.

2. Postdoctoral Fellowships

For students who’ve already earned their doctorate degrees, postdoctoral fellowships can open the door to even more education, which can help these scholars become specialized in a very specific aspect of their field.

What is the fellowship definition in this instance, and how does the fellowship work? A postdoctoral fellow might be expected to complete a certain amount of research or, again, teach courses while they continue their studies. In exchange, they might receive funding for their coursework and extracurricular activities like relevant travel.

3. Medical Fellowships

If you’re pursuing a career in the medical field, you may be wondering, what is a fellowship in medicine? For physicians and dentists who’ve already completed medical school and their residency, a medical fellowship can help them continue their training and gain more competency in a specific area of medicine.

Medical fellowships generally come after a doctor has already completed their residency. While fellowships provide an excellent learning experience and often better pay than a residency does, they still pay less than a third of the average full-fledged physician’s salary. To put it in perspective: Primary care medical fellowships pay approximately $75,943 a year on average, while a family medicine physician averages about $273,000 annually.

That means careful budgeting on a medical fellowship is likely to be required — and the same is true with any kind of academic or research fellowship.

What Is A Fellowship Like?

As mentioned above, fellowships don’t generally provide a lot of money for living expenses — your room and board may or may not be included, or you may be offered a flat stipend with which to cover your own cost of living.

Graduate students may be expected to do a lot of work for what feels like a minimal paycheck. But having one’s tuition waived is a big deal that can lead to substantial savings. This is especially true in the long term, when you consider the interest on graduate school loans.

Not only that, graduate students may already have undergraduate loans to worry about as well. And, since one of the basics of student loans is repaying them, that is likely to be top of mind. A fellowship may be a great step toward pursuing the career of your dreams without the additional burden of even more student debt.

One option for grad students to look into regarding their undergraduate loans is deferring them until after school. However, even with deferment, you might want to put some money toward student loans while still in school, to help reduce your payments later on.

Another possible alternative to consider is refinancing student loans, particularly if you could qualify for lower rates or better terms that might help reduce your monthly payments. (Be aware that you may pay more interest over the life of the loan if you lower your payment by extending your loan term.) Refinancing federal loans does mean giving up access to federal programs and protections. But if you don’t need those benefits, refinancing might be an option for you.

There are different options for refinancing student loans, including some specifically for grad students training for specialized careers, such as medical resident refinance. However, refinancing federal loans does mean giving up access to federal programs and protections. If you don’t need those benefits, refinancing might be an option for you.

Recommended: Private Student Loans Guide

Is Applying For A Fellowship Worth It?

Given the amount of work involved and the relatively small amount of money you may earn, is applying for a fellowship worth it in the first place? In the end, only you can make that decision for your own educational and financial future — but here are some pros and cons to consider.

Pros:

• Fellowships offer you the opportunity to gain hands-on experience in your field, which can help you hone your skills and also learn more about whether or not you like the work in the first place.

• Fellowships can help keep you from racking up more student debt, which is particularly attractive if you already have loans to repay.

• Fellowships last only for a short amount of time, but the experience you get by taking one on may help you create a long-lasting and stable career.

Cons:

• While completing a fellowship, you’re likely to work very hard for what feels like not very much of a paycheck.

• The application process requires dedication and work. And fellowships are very competitive: Even with great credentials, you may not get the fellowship.

• Fellowships may have very specific requirements, such as GPA or work hour minimums, and your fellowship may be revoked if you don’t complete the project or adhere to the guidelines.

The Takeaway

A fellowship can provide graduate students with an advanced education and highly specialized skills in their field. A fellowship offers funding in exchange for work to help pay for this schooling, which means that grad students may avoid accumulating more student loan debt. Fellowships are very competitive, however, so it’s wise for those considering one to weigh the pros and cons to make sure it’s the right choice for their situation.

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

FAQ

What does it mean when you get a fellowship?

A fellowship is a funded opportunity for the advanced study of a subject. Fellowships are typically for graduate students who want to pursue advanced academics and learn highly specialized skills in their field, while earning money, or getting a stipend, to help pay for their studies.

Is a fellowship a paid job?

It depends on the type of fellowship. In general, a fellowship allows graduate students to pursue an advanced education while earning money — or receiving a cost of living stipend — to pay for their schooling, typically in exchange for doing work related to their field of study. The work might consist of doing research or teaching, for instance.

How hard is it to get a fellowship?

Fellowships are merit-based and extremely competitive. In order to secure a fellowship, an individual typically needs to have a history of high academic achievement. Students who are awarded fellowships generally must show great potential in their field with the capacity to become successful professionals in the future.

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., 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 04/24/2024 and is subject to change. SoFi Private Student loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891. (www.nmlsconsumeraccess.org).

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

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

Third Party Trademarks: Certified Financial Planner Board of Standards Inc. (CFP Board) owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®, CFP® (with plaque design), and CFP® (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board's initial and ongoing certification requirements.

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-Q225-014

Apr

2025

Budgeting on a Fellowship Doctor Salary

By Sarah Brooks | Budgeting & Goals, Building Your Career, Life & Career, money, student_loan | No Comments

A medical fellowship after residency can provide the training you need for a successful career in your preferred specialty. But it also probably means you’ll make far less for a period of one to three years.

Do you get paid during a fellowship? Yes, you do. Primary care medical fellows earn an average salary of $75,943 per year. While that’s above the national annual median salary of $59,228, it doesn’t compare to the salary of a full-time family medicine physician of $273,000.

You may need to set and stick to a budget during your fellowship training period. Read on for some strategies that can help.

Key Points

• A medical fellowship typically offers a salary of around $75,943, which is lower than that of fully licensed physicians, necessitating careful budgeting.

• Budgeting effectively involves categorizing expenses into fixed and variable types, ensuring that monthly expenses do not exceed income.

• Housing is often the largest monthly expense; finding affordable housing or considering shared living arrangements can significantly reduce costs.

• Utilizing income-based repayment plans, deferment, or forbearance options can help manage student loan payments while in a medical fellowship.

• Seeking passive income opportunities, using credit card points, and practicing smart grocery shopping can further alleviate financial pressures during fellowship years.

The Difference Between Residency and Fellowship

Residency usually takes place right after medical school and is designed to give doctors the experience needed to serve patients. A fellowship follows residency and is designed to train fellows in a narrower specialty.

While some fellows may earn more than residents (residents earn an average of $67,400 per year), their salary is still significantly lower than that for most working physicians. Usually, medical fellows have to pay for the majority of their living expenses, including housing and at least some meals.

Additionally, most fellows face a high student loan burden as well, with 73% of medical school graduates having some form of education debt. The average student loan debt of medical school graduates, including undergraduate loans, is $264,519.

With a relatively low salary and a high debt burden, being smart with money during fellowship years can be a big part of creating a strong financial foundation.

Fellows may feel like they have too much on their plate to devote time to thinking about personal finance. But just a few savvy budgeting strategies can help fellows spend wisely and potentially avoid getting deeper into debt.

10 Budgeting Tips for Living on Your Fellowship Doctor Salary

1. Finding a Budget that Works for You

The first step to smart budgeting is actually making a budget. Start by creating a list of monthly expenses in two categories: fixed expenses (those that stay roughly the same every month, such as rent, utilities, and insurance) and variable expenses (those that fluctuate, such as eating out and entertainment).

Next, note how much money is earned each month from fellowship or any other income sources. Use take-home pay after taxes and deductions.

Ideally, expenses should be less than income. If they’re not, work out where costs can be trimmed. With a reasonable budget in place, the next step can be to track spending each month.

2. Living Within Your Means

Expenses should not exceed the money you bring in. During a medical fellowship, you might be tempted to extend yourself financially with the expectation that your salary will soon increase dramatically. But going into debt isn’t a savvy way to start off your career.

Credit cards generally have the highest interest rates, so even a small balance can balloon into substantial debt down the line. Failing to make payments or using too much available credit could impact an individual’s credit score, which could make a difference when looking for a mortgage or car loan.

3. Choosing Housing Carefully

For most people, housing is the single largest monthly expense. That’s why it’s worth putting in the effort to find an affordable option that meets your needs. In a particularly expensive market, it may be worth getting roommates. Another factor to consider — the closer you are to your workplace, the more that can potentially be saved in commuting costs.

4. Delaying the Purchase of a New Car

For those living in an urban area, think about whether public transit or carpooling may be options for getting to work. If a vehicle is nonnegotiable, consider a used car rather than a new one. Cars lose much of their value when they’re driven off the lot for the first time, so it may be worth seeking out used cars that are in great shape at a great price.

5. Saving on Food

As a variable expense, food is an area with plenty of opportunities to save. If you have any meals provided for you as part of your fellowship, take advantage of the free food. Eating out can be tempting with a busy schedule, but it may be wiser to limit how often you go to restaurants and how much you spend there.

Since you won’t always have time to cook, preparing meals in batches to eat throughout the week could help you resist the temptation of going out.

To save money on food when you grocery shop, purchase what’s on sale, learn what produce is in season, and consider purchasing generic brands. Look for nonperishable items in bulk at discount stores. If you’re feeling extra thrifty, using coupons could save you some change, too.

6. Traveling with Rewards Points

During your fellowship, you’ll probably want to go on vacation and take a well-deserved break. But your trip doesn’t have to break the bank. Fellows with a decent enough credit score may qualify for credit cards that offer significant point bonuses, which can be redeemed for travel costs like flights, hotels, or rental cars. Some cards may require cardholders to spend a certain amount upfront to qualify for a bonus, so double check you’re not taking on unnecessary expenses or carrying a balance if you don’t need to.

7. Taking Advantage of Income-Based Repayment Plans, Deferment, or Forbearance

Those with eligible federal loans who cannot afford to make payments may be able to pause their payments through deferment or forbearance options if they meet certain qualifications.

Income-driven repayment (IDR) plans allow borrowers to tie their monthly payment to what they make over 20 to 25 years. After that, the balance is forgiven on one of the IDR plans, the Income-Based Repayment (IBR) Plan. Eligibility for these programs largely depends on the types of student loans that the borrower holds and when they were borrowed.

Those who are in a qualified graduate fellowship may be able to request a student loan deferment while in a medical fellowship. If successful, they likely won’t have to make payments during the fellowship. In some cases, borrowers may not be required to pay accrued interest, for example, if they hold subsidized federal student loans.

Borrowers who don’t qualify for deferment but are still struggling financially may be able to apply for forbearance, but would likely be responsible for paying the interest that accrues.

Fellows who are interested in pursuing a career in public health may also consider the Public Service Loan Forgiveness program. In that program, borrowers who work for a qualifying government or non-profit organization may be able to get their loans forgiven after 10 years of qualifying payments.

8. Trying to Save

Living on a fellow’s salary may not leave much room for saving, but if at all possible, setting small savings goals could be helpful.

For example, if you don’t already have an emergency fund, you could try to put away some money every month until you have about three to six months of living expenses saved.

Once you have a cushion for emergencies, consider contributing to a retirement account, such as a traditional or Roth IRA. The power of compound returns means investing early can translate into gains over time. The longer money is invested, the more time it potentially has to grow and withstand any volatility.

9. Considering Passive Income

As a fellow, you probably don’t have extra time to take on a side hustle. If you’re looking for ways to potentially boost your pay, consider looking into low-effort sources of passive income, which can allow you to earn money without investing much time or energy.

Examples include renting out a room or your car. It may require some effort up front, but if you can increase your cash flow without working too much, it could be worth it.

10. Refinancing Your Student Loans

Dealing with student loans can be challenging when you’re living on a medical fellowship salary.

Refinancing your medical student loans is one way to help make your debt more manageable and potentially free up some extra cash.

When you refinance your loans with a private lender, you get a new loan, ideally with a lower interest rate and/or more favorable term.

Depending on your situation, student loan refinancing can lower your monthly payment. Note: You may pay more interest over the life of the loan if you refinance with an extended term.

Keep in mind that when refinancing with a private lender, you do give up the federal benefits that come with most federal student loans, such as deferment, forbearance, income-based repayment programs, and student loan forgiveness. If you plan on using those programs at any point in time, it is not recommended to refinance your federal student loans.

The Takeaway

Fellowships can be an excellent opportunity to hone in on your medical specialty of choice, but the relatively low salary may require some creative budgeting in order to keep expenses in line with income.

Some ideas to consider include creating a passive income stream, shopping smarter at the grocery store, establishing a realistic budget, and finding an affordable living situation.

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

FAQ

Is a medical fellowship worth it?

Whether a medical fellowship is worth it depends on an individual’s situation and goals. Medical fellowships provide advanced learning and training as well as practical work experience in very specific specialties. Medical fellows tend to be highly respected, and a fellowship can be a solid foundation for a successful career.

However, medical fellowship programs are extremely competitive to get into, fellowships require a significant time commitment, and the salary is substantially lower than the salary of a full-time physician.

Does a medical fellowship pay more than a residency?

A medical fellowship generally does pay more than a medical residency. The average salary for a primary care medical fellow is $75,943 per year, while the average salary for a medical resident is $67,400 per year.

How long is a medical fellowship?

A medical fellowship is typically one to three years, but the exact length of time depends on the area of specialization. For example, family practice physicians generally have a three-year fellowship, while general surgeons have a five-year fellowship.

SOSLR-Q225-013

Apr

2025

5 Tips For Getting the Lowest Rate When Refinancing Student Loans

By Sarah Brooks | Fresh Out of School, Student Loans, student_loan | No Comments

One main reason for refinancing student loans with a private lender is to combine your loans into one new loan with a lower interest rate. If you get a lower interest rate, your monthly student loan payment will go down. You’ll also pay less interest over the life of the loan.

Here, learn more about steps to take to help get a lower interest rate on student loans.

Key Points

• A student loan refinance may help borrowers get a lower interest rate if they qualify and reduce monthly loan payments.

• A strong credit history and a low debt-to-income ratio can help refinancing applicants get a better rate.

• Reducing living expenses and paying down other debt like credit card debt could be beneficial when applying for student loan refinance.

• Providing lenders with a comprehensive employment history and proof of salary increases can be useful.

• Those without a strong credit history may want to consider refinancing with a cosigner for better rates.

Reduce Your Interest on Student Loans

Consolidating multiple student loan balances into one new refinance loan with a low interest rate can be ideal for those looking to reduce the amount they owe in interest and also lower their monthly loan payment. It’s important to note, though, that if you refinance federal student loans, you lose access to federal benefits such as income-driven repayment plans.

Getting approved for student loan refinancing isn’t just a matter of submitting an application. You need a game plan — one that will help you become a strong loan candidate, who’ll qualify for a lower student loan interest rate. Here are five strategies that may help.

5-Point Plan for Getting a Low Interest Rate

1. Check your credit.

If you want to reduce your student loan interest rate through refinancing, the first thing you should do is check your credit score. The stronger your credit profile, the less risky you appear to lenders. If your credit profile is solid — meaning you have a good credit score and a low debt-to-income ratio — lenders should offer you better rates.

If, however, your credit profile isn’t quite where you want it to be, that’s OK. Take a few months to build your credit and reapply for student loan refinancing down the line to see if you qualify for a better rate.

Recommended: Why Your Debt to Income Ratio Matters

2. Take a hard look at your cost of living.

Some cities are more expensive to live in than others. Someone renting an apartment in a small Midwestern town, for example, has lower living expenses than someone who owns a row home in San Francisco. Cost of living ties directly into your debt-to-income ratio, and therefore it matters when you want to get a lower interest rate on student loans.

To some extent, this is out of your hands; your zip code helps lenders determine your cost of living. But anything you can do to pay down debt, especially high-interest credit card debt, and make choices that free up more money — such as renting a smaller place, taking on a roommate, or leasing a cheaper car — can help your case.

3. Give lenders a complete history.

Some student loan refinancing lenders consider things like where you went to school and your position at work when they weigh your application. Provide as much information as you can when it comes to your undergraduate and graduate degrees.

Be sure to also include all relevant work experience. Again, if you can show lenders that you have a solid work history and your income has steadily increased, you will appear less risky. The less riskier you are to lenders, the better your student loan interest rate is likely to be.

If there’s a job offer on the horizon, be sure to submit your offer letter with your application. And if you get a promotion while your application is under review, notify the lender immediately. Finally, if you’re in line for a promotion that will positively affect your paycheck, wait until it happens before you apply.

4. Show all your income.

When lenders ask for income information, they mean all of your income, not just job earnings. List dividends, interest earned, bonuses, and the extra money you make from your side hustle or Airbnb rental property. As long as you can prove these income sources, it will all count toward your debt-to-income ratio and help to lower it. And again, the lower this ratio, the better chances you have at qualifying for a lower student loan refinance rate.

Also, make sure your driver’s license is current and that your student loan statements are all correct. If you’re self-employed, you may want to wait until you’ve filed your taxes to apply for refinancing — it’s one of the easiest ways to prove the previous year’s income.

5. Be flexible.

If you have a number of student loans and you’re not offered the best rate when you apply for refinancing, consider refinancing only a couple of them. You may get a lower interest rate with a smaller refinance balance. You can always apply for the full balance down the road after you’ve received a raise or moved to a less expensive location.

Being flexible also means you might want to think about asking a friend or relative for help if your application isn’t as strong as you’d like. When you refinance your student loans with a cosigner who has a good credit profile and low debt-to-income ratio, you may be able to get a lower rate than if you refinanced on your own.

Refinance Student Loans With SoFi

The stronger you are as a student loan refinancing candidate, the better your chances are of getting a lower student loan refinance rate. To get the lowest rate when refinancing, check your credit, take a close look at your living expenses and debt-to-income ratio, give lenders a complete history of your education and employment, make sure to include all of your income sources in the application, and finally, be flexible, even if that means applying with a cosigner.

Keep in mind, though, that if you choose to refinance your federal student loans with a private lender, you lose access to federal benefits, such as student loan forgiveness and income-driven repayment plans. Make sure you don’t plan on using these benefits now or at any point in the future before deciding to refinance.

If you do think a student loan refinance may be right for you, consider SoFi. SoFi offers competitive rates and does not charge origination fees. It takes just a few minutes to see your rates, and your credit score will not be affected when you prequalify.

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

FAQ

Can you negotiate your student loan interest rate?

Not necessarily. Interest rates are determined by both the market and your credit profile, leaving little room for negotiation. You could, however, present your lowest offer to another lender to see if they will match that.

How can I get a lower interest rate when refinancing my student loans?

Strategies to potentially get a lower interest rate when refinancing student loans include building your credit profile, having a reliable source of income, and making sure your debt-to-income ratio is low.

Is it possible to get lower rates when refinancing student loans?

Yes, it is possible to get a lower interest rate when refinancing student loans. Your student loan interest rate will generally depend on current market rates, your credit profile, and your debt-to-income ratio. A strong credit history and a lower debt-to-income ratio may help you get a lower rate.

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.

SOSLR-Q225-007

Apr

2025

A Guide to Summer Internships for College Credit

By SoFi Editors | Debt Payoff, Student Loans, student_loan | No Comments

A good internship 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.

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

Key Points

• College internships provide practical experience and enhance job prospects through real-world skills and networking.

• Paid internships help cover expenses and may lead to higher starting salaries and better job opportunities post-graduation.

• The average hourly rate for paid internships is $20.55.

• Unpaid internships can significantly increase student debt due to associated costs and lack of income.

• Weighing costs against benefits of unpaid internships is crucial, considering financial impact, career advancement opportunities, skill development, and networking possibilities.

Internship Stats

In 2024, 67% of graduating seniors said they completed an internship, according to a survey by the National Association of Colleges and Employers (NACE). Participating in an internship can be valuable — for instance, it may help grads land a job faster. A recent analysis by LinkedIn found that college graduates who worked as interns were 23% more likely to start a full-time job within six months of graduation than those who didn’t pursue an internship.

Employers are increasingly using internships to drive hiring. According to research conducted by Business-Higher Education Forum, a national network that connects corporate and higher education leaders, 76% of employers said they offer internships to help attract talent.

If there’s a specific company or industry you have your heart set on, interning can be a good way to get your foot in the door and hopefully receive a job offer down the line.

Recommended: A Guide to Remote Internships

The Cost of College Credit Internships

However, not all college internships come with a paycheck. Approximately 43% of internships are unpaid, according to the NACE survey. That means a substantial number of students are forgoing full-time, part-time, or seasonal employment for college students to take an internship that doesn’t earn them money.

Instead, that unpaid internship could add to their debt, especially if they have to relocate temporarily (maybe to a larger city) and cover moving costs, 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 — may choose to or are obligated to enroll for course credit. Depending on how many credit hours their internship entails (the average is three but it may be more), they could end up paying hundreds of dollars in tuition.

Of the internships that are unpaid, most are in nonprofit or local or state government sectors. Nearly all paid internship positions are with private and for-profit companies.

Advocacy groups are pushing for more paid internships, especially because low-income students often cannot afford to take on unpaid work, creating barriers to equal opportunity. Also, unpaid internships may result in lower starting salaries after graduation, according to the NACE survey. The organization’s findings show that those with paid internships earn an average starting salary of $68,041, while those with unpaid internships have average starting salaries of $53,125. So if you’re looking for a job that will help pay for your college degree, you may want to consider a paid internship.

How Much Do Paid Internships Pay?

For interns that are getting paid, the average hourly rate is $20.55, according to Indeed. Those wages help pay some expenses, but not all — making an internship an opportunity many students and their parents simply can’t afford or 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. Borrowers can use the money from federal student loans and (possibly) private student loans to pay for the expenses that go along with their academic internship just as they would in a class at school. That could include room and board, travel costs if they have to relocate, transportation, and equipment needed 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. At that point you may want to explore different options that could potentially lower your monthly loan payments, such as income-driven repayment plans or student loan refinancing.

Overall, however, it’s important to weigh the costs of the internship against its benefits, particularly if it’s an unpaid internship. In that case, you might consider doing some research to find companies that are known for offering applicable career skills and that will help you build your resume.

Ask your internship coordinator what tangible benefits you could see. For example, is the internship approved for college credit? Will you get meaningful references? Will there be consequential networking opportunities? 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 during the internship 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 permitted by the company.

Paying Back the Money You Owe

Before you graduate, you may want to begin educating yourself about the best student loan payback options for your situation, depending on what types of student loans you have.

Look at interest rates and loan terms, and think about whether you would be interested in refinancing your student loans. When you refinance, you trade your old loans for one new loan from a private lender. Ideally, you may be able to get a lower rate and more favorable terms.

One caveat, however, if you have federal student loans: These loans offer protections and benefits like income-driven repayment plans and federal deferment that won’t transfer to a private loan if you refinance. If you think you might need these benefits, refinancing may not be the best option for you.

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

FAQ

Does an internship count as college credit?

With an internship for credit, you earn college credits that count toward your degree. The number of credits an internship is worth can range from one to six, but it’s typically three credits.

To receive the credits, a student must typically usually work a certain number of hours during the internship and meet other guidelines. Consult with your school program or campus career center to make sure you fulfill the necessary requirements.

Is $20 good for an internship?

For a paid internship, $20 an hour is essentially the standard rate. The average hourly rate for a paid internship in the U.S. is $20.55, according to Indeed.

What’s the best way to find a summer internship?

To find a summer internship, check with your degree program or department to see what may be available that can help you earn credits toward your degree or experience in your chosen field. In addition, consult with your college career center, where the staff should be able to help you explore internship options aligned with your major.

SOSLR-Q225-010

Can You Get A Student Loan with Bad Credit?

Getting a Federal Student Loan

Are you a Dependent Student?

Subsidized and Unsubsidized Student Loans

Getting Private Student Loans

Development of Credit Scores

How Credit Scores Are Used

Building Credit Scores

The Takeaway

What Is A Fellowship?

What Exactly Is A Fellowship?

Types Of Fellowship Programs

1. Graduate Fellowships

2. Postdoctoral Fellowships

3. Medical Fellowships

What Is A Fellowship Like?

Is Applying For A Fellowship Worth It?

The Takeaway

FAQ

What does it mean when you get a fellowship?

Is a fellowship a paid job?

How hard is it to get a fellowship?

Budgeting on a Fellowship Doctor Salary

The Difference Between Residency and Fellowship

10 Budgeting Tips for Living on Your Fellowship Doctor Salary

1. Finding a Budget that Works for You

2. Living Within Your Means

3. Choosing Housing Carefully

4. Delaying the Purchase of a New Car

5. Saving on Food

6. Traveling with Rewards Points

7. Taking Advantage of Income-Based Repayment Plans, Deferment, or Forbearance

8. Trying to Save

9. Considering Passive Income

10. Refinancing Your Student Loans

The Takeaway

FAQ

Is a medical fellowship worth it?

Does a medical fellowship pay more than a residency?

How long is a medical fellowship?

5 Tips For Getting the Lowest Rate When Refinancing Student Loans

Reduce Your Interest on Student Loans

5-Point Plan for Getting a Low Interest Rate

1. Check your credit.

2. Take a hard look at your cost of living.

3. Give lenders a complete history.

4. Show all your income.

5. Be flexible.

Refinance Student Loans With SoFi

FAQ

Can you negotiate your student loan interest rate?

How can I get a lower interest rate when refinancing my student loans?

Is it possible to get lower rates when refinancing student loans?

A Guide to Summer Internships for College Credit

Internship Stats

The Cost of College Credit Internships

How Much Do Paid Internships Pay?

Paying Back the Money You Owe

FAQ

Does an internship count as college credit?

Is $20 good for an internship?

What’s the best way to find a summer internship?

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