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After four years of hard work in high school, the college acceptance letters begin to roll in. If a student is lucky enough to receive multiple acceptance offers from colleges, then they have some big decisions to make.

Chances are, they will make that decision by May 1 — also known as College Decision Day. For most colleges and universities across the United States, May 1 is the deadline for prospective students to confirm their admission plans. This is when many students submit a nonrefundable deposit to formalize their choice and new commitment.

Before the big decision day arrives, students and their families will generally want to prepare together. This is a major decision with key factors to consider. Keep reading for seven tips that could help students prepare for college decision day.

1. Get Organized and Know the Deadlines

The college application and acceptance process can be daunting. If a student has multiple offers to choose from, they may find they have tons of information to review and certain deadlines to meet.

Here are some deadlines you can ingest and paperwork you may organize as College Decision Day approaches:

Deadlines

•   Acceptance deadline (not all schools play by the May 1 rule)

•   Deadline for FAFSA®, the Free Application for Federal Student Aid — a key step in receiving financial aid (each college may have its own FAFSA deadline)

•   First-year housing deadline (this varies by school)

Paperwork

•   Acceptance letter

•   Financial aid offers

•   Copies of forms and documents you submit to a college

Keeping a separate folder, either physical or digital, for each school a student has been accepted to can be a helpful way to stay on top of any important paperwork. Marking key dates on the calendar as soon as the applicant comes across them can also aid in relieving unnecessary confusion when preparing for college.

2. Compare Financial Aid Offers

It’s no secret that college can be quite expensive. Before officially deciding which college to attend, it’s important to compare any financial aid offers.

Schools may have different policies and opportunities regarding financial assistance, which can include scholarships and grants. Comparing financial aid packages can help you see which school is most affordable for your budget. Money may not be the deciding factor for a student, but many may take the cost of attendance into consideration.

Once accepted to a college, the student can generally expect to receive a financial aid award letter that outlines what grants, scholarships, loans, and work-study options will be available to them. This can help families calculate the cost of attendance as well as help them understand what their financing options are.

This letter will only account for the first year of enrollment, so it can be worthwhile to request information from each school about how much tuition and fee prices have risen over the past few years.

3. Reserving Spots

To reserve a student’s spot at the college they’ve chosen to accept, they will generally need to pay an enrollment deposit fee. This fee is typically nonrefundable and guarantees the student has a spot at the school. The fee can vary in price from $100 to $1,000, depending on the school. Once school begins, this deposit is applied to the tuition bill or costs relating to housing, orientation, or school fees.

Students who are unable to afford the enrollment deposit may apply for a waiver. You can complete a form from the National Association for College Admission Counseling (NACAC) and submit it to the college where you plan to enroll. The college will decide whether to accept or decline the fee waiver form.

Students who are struggling to make a decision about which college to attend may be tempted to put down multiple deposits to buy themselves some extra time to make a decision. This practice is referred to as “double depositing” and is generally frowned upon as it can negatively impact other applicants, particularly those on a waitlist hoping to enroll.

4. Mull Over the Waitlist

Making a decision about which college to attend can be tricky, especially if the student has been accepted to multiple schools that they are interested in attending. This decision can be even more challenging to make if a student is waiting to hear back from a dream college or has been waitlisted at one of their top picks.

Depending on the applicant and the school, getting off the waitlist and into the school can be competitive. Even if a student makes it off the waitlist, that school may not be worth waiting for.

Students who are accepted after being waitlisted may find that they receive less financial assistance in the form of grants or financial aid by the time they are admitted, as being waitlisted can put them to the back of the line for financial assistance.

Being waitlisted by a school you wish to attend can be disheartening, especially if you remain on the waiting list when College Decision Day arrives. In that circumstance you might consider another institution that may welcome you with open arms.

5. When Decision Day Arrives

Ideally, making a final decision about which college to attend can happen before the national decision day. Waiting until the last minute offers very little wiggle room if something goes wrong with the acceptance process (say a computer glitch or busy phone lines).

That being said, if a student has not accepted their first choice college by May 1 or the specific acceptance dates of each college they received offers from, that should be their top priority. If they have already accepted a college offer, May 1 is a good day to double- and triple-check that they are officially enrolled. Better safe than sorry!

Next, rejecting the colleges the student won’t be accepting is another step to take. By not accepting the offer, the student will lose their spot, but the sooner they reject an offer, the sooner the college may be able to offer their spot to another student on the waitlist.

6. If a Student Misses the Deadline

Of course, missing the college decision deadline is not ideal and in many scenarios, missing this deadline can eliminate the student’s option of attending the school they are hoping to accept.

If a student misses the deadline, all hope is not lost. Some schools struggle to hit their enrollment targets by May 1. Plus, many schools lose students during the summer due to “summer melt.” Summer melt occurs when an accepted college student does not show up in the fall. Because of this, some schools may have a bit of secret wiggle room in their acceptance policy.

Students who missed the acceptance deadline may want to contact the college’s admissions office as soon as possible to explain their particular situation, especially if there are unique circumstances that led them to missing the deadline. Start by calling the admissions office and follow up on the conversation with an email so that there is an official correspondence that can be tracked. Make sure to be respectful during this process as this is a big favor to ask. Trying won’t cause any harm and this last ditch effort may just pay off.

While most schools have a May 1 acceptance deadline, some schools are on different schedules. This is why it’s important for students to double-check the deadlines for any schools they’ve been accepted to in case one varies. No one wants their dream school to slip through their fingers because they mixed up a deadline.

7. Financing a College Education

If paying for college is a concern, which it is for many families, there are options for easing the burden of paying for a pricey college education.

Once students have accepted a college offer and reviewed their financial aid package, they generally have a firm idea of how much they will need to borrow to fund their education. This is where student loans can come in handy. There are two types of student loans available: federal and private.

Federal Student Loans

The U.S. Department of Education provides federal student loans under its Direct Loan program. This means federal student loans have terms and conditions that are legally set by the federal government. Private lenders do not have to offer the same terms, such as fixed interest rates and income-driven replacement plans, that students can get from federal student loans.

Private Student Loans

Banks, credit unions, online lenders, and select state-based or state-affiliated organizations may offer private student loans. Private lenders set the terms and conditions of these loans, which are generally based on borrower criteria like credit history. Typically private loans are more expensive than federal loans.

The Takeaway

Higher education can prepare students for professional work, but deciding which college to attend is not always a simple or easy choice. Selecting the right school for you may involve several considerations, including the cost of tuition and other expenses associated with college life.

If you need help financing your college experience, SoFi offers private student loans with an entirely digital application process and no fees whatsoever. Potential borrowers can choose between a variable or fixed interest rate and have the option to add a cosigner to the loan.

Learn more about SoFi’s flexible repayment plans and application process for private student loans.

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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.

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 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. SoFi Bank, N.A. and its lending products are not endorsed by or directly affiliated with any college or university unless otherwise disclosed.

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

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

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Let’s talk about student loan payments. Woo-hoo! OK, it’s not the most thrilling topic, but know what is serotonin-boosting? Paying off that very last loan.

How to Pay Off Your Student Loans

It’s the unglamorous work that goes on behind the scenes that make or break every business owner, athlete, or creative person. It is helpful to think about student loan repayment like any other big feat worth accomplishing.

It begins with knowing that paying down student loans in a smart and effective way can take a lot of planning, budgeting, and adapting.

While there is no single smartest way to pay off student loans, because everyone’s situation is different, there are steps that will put most borrowers in a position to pay off their student loans without too much pain and on a timeline.

Another goal could be to create a financial plan that includes your loans.

Strategies to Pay Off Student Loans

Here are nine steps to consider including in your student loan repayment plan.

1. Organizing All Of Your Debt, Including Student Loans

Keeping track of your student loans and other sources of debt can be tricky, especially if you are a recent graduate. Consider listing them. Include the student loan servicer, amount of the loan, monthly payment, interest rate, and when the loan should be paid in full.

If you aren’t sure what your monthly payments will be, you can use this student loan calculator to get a rough idea, or you can call your loan servicer.

If you have credit card debt or personal loans, include them on your debt list. With all of your sources of debt, you can then mark on a calendar the date that the monthly payments are due.

While you always need to make the monthly minimum payments on all debts (unless your student loans are within their grace period or are in forbearance), listing them allows you to identify which debts you may want to pay off first.

If you have high-interest credit cards adding up each month, a credit card consolidation loan may be a great option to look at, too.

Once your credit cards are paid off, you’ll want to think about whether your goal is to pay your loans off quickly, or to simply make the monthly payments until the loans are done. The former is one way to save on interest over time.

Some folks do prefer to pay only the minimum monthly amount on their student loans so that they can save a little for other things.

2. Budgeting to Include Loan Payments

It can take time and effort to develop a monthly budgeting system that works for you, but it is doable, and totally worth it.

To get started, track your monthly cash inflows and outflows for two months. Total how much money you spent in each category, including debt payments like student loans.

Once you have a general idea of what you’re spending in each category, you can begin to build a budget framework. For example, if you spend $300 on groceries one month and $350 the next, you can now set a realistic grocery budget. Leave room for annual and quarterly expenses as well as incidentals.

With a budget that is built to include student loan payments, you’ll be more equipped to make all of your payments on time and know how much is available to spend on other wants and needs. Also, understanding how you’re spending will allow you to identify the areas where you’re overspending.

3. Setting Up Automatic Payments

Hopefully your student loan payments are set up to be automatically deducted from your bank account. If they aren’t, you can contact your student loan servicer to set up autopay. That way you won’t miss a payment because you forgot or are somewhere where you can’t access the internet.

Remember, missed or late payments will negatively affect your credit score. Damaged credit could preclude you from opportunities in the future, such as being able to refinance your loans.

Many loan service providers offer a discount if you arrange to autopay. When you sign up, ask if such a discount is available.

4. Paying More Than the Minimum Monthly Amount

Paying more than the minimum monthly payment can be a great strategy if your goal is to pay off your loan faster than the stated term. You’ll also save on interest over the life of the loan by paying it off sooner. Even small amounts can make a difference.

To do this, instruct your loan servicer to apply any extra payments to the loan principal, or adjust your automatic monthly payment to a higher amount and clarify that you want that extra money dedicated to the principal.

Make sure, after the next month’s payment, that the money was indeed put toward the loan’s principal.

Recommended: Why Making Minimum Student Loan Payments Isn’t Enough

5. Paying a Lump Sum Toward Student Loans

Increasing your monthly payment isn’t the only way to put a dent in your loans; at any point, you are allowed to make a lump sum payment toward the principal.

You could put your tax refund, holiday or birthday money, work bonuses, or inheritance money toward your student debt.

6. Adjusting Your Repayment Plan If Needed

Most federal student loans come with a 10-year repayment plan unless you choose otherwise.

Income-driven repayment plans base payments on discretionary income and family size. The plans lower monthly payments by extending the length of repayment to 20 or 25 years, after which any remaining loan balance is to be forgiven.

Even though your monthly payments are lower, you will pay more interest over time (longer loan terms mean more interest payments, after all). So it’s not a great choice if you want to pay off your student loans quickly or pay as little interest as possible, but it is available to those who are having trouble making their monthly payments.

If you are planning to use the Public Student Loan Forgiveness (PSLF) program for your federal student loans, you will need to select one of the income-driven repayment plans.

7. Considering Refinancing Your Loans

When you refinance one or more student loans, a private lender like a bank, credit union, or online company pays off your current loans and issues one new student loan, ideally at a lower interest rate. A lower rate could mean substantial savings over the life of the loan.

With federal student loan consolidation, on the other hand, the government bundles your federal student loans into one, using a weighted average of the interest rates, rounded up to the nearest one-eighth of a percentage point.

It’s important to note that by refinancing your federal student loans to a private student loan, you will not be able to access federal programs like income-driven repayment plans, PSLF, and government deferment or forbearance. If you don’t need any of those benefits, a lower rate gained by refinancing could be worthwhile.

Exploring refinancing with a private lender takes little time and doesn’t cost anything.

8. Knowing Your Worth and Asking for a Raise

With any pay raise, you can use the extra income toward your financial goals. This could mean increasing the monthly amount you pay toward your student loans or making a lump sum payment.

How much money you earn is an important factor contributing to your financial stability and ability to pay down your student debt. While budgeting is important, so is knowing your worth and asking for more when you deserve it.

If you haven’t already, start keeping track of your successes so that at your next compensation conversation, you have concrete examples on why you deserve a salary bump.

9. Understanding Your Employment Benefits Package

Although student loan repayment help is not as widespread as retirement or health care benefits, more employers are offering that perk to attract and retain employees.

Whenever you’re comparing job offers, it’s a good idea to compare benefits packages; although they’re not flashy like a big salary or company equity, benefits can be just as valuable.

If you’re looking for a new job, you could include student loan repayment help in your search. While it obviously shouldn’t be your only consideration, it’s great to have an idea of what you’re looking for in an employer.

Recommended: Finding Jobs That Pay Off Student Loans

Refinancing Student Loans

Refinancing is among the ways to pay off student loans, and SoFi is a standout in that field. SoFi refinances federal and private student loans with fixed or variable rates and a range of loan terms.

Take a close look at your student loan balance and the rates you’re paying, and then check your refinance rate in two minutes.

FAQ

What is the smart way to pay off student loans?

To pay off any loan, it’s smart to look at the interest rate and repayment term. If you can manage the monthly payments, a short term and a low rate is a winning combo.

If the payments are too painful and a longer term is needed, it could be smart to make extra payments of any amount whenever you can.

The PSLF program forgives any remaining Direct Loan balance after 10 years of on-time payments and qualifying employment. That could be seen as a smart way to pay off federal student loans if a graduate commits to working for a government or nonprofit employer, but the program has had a 98% applicant denial rate.

How can I pay off $100k in student loans in five years?

Say what? Well, it has been done. It might take sacrifice (moving in with relatives, no eating out, no new car), putting chunks that would normally go to rent toward student loan debt, staying motivated by watching and listening to others’ stories of debt repayment, refinancing one or more times, and getting aggressive about payments.

Most refinance lenders will offer a lower rate for a shorter loan term. Of course, the shorter the term, the higher your monthly payments will be, but the less costly the loan will be. A borrower might find that a variable rate, which usually starts lower than a fixed rate, pays off with a short-term loan.

How do I pay off a five-year loan in two years?

By paying extra toward the principal, in dribs and drabs or in a lump sum, and/or refinancing to a lower rate. Federal law prohibits prepayment penalties for federal or private student loans, so that’s not a worry.

To keep your student loan servicer from applying extra amounts to the next month’s payment, tell your servicer, by phone, mail, or online, to apply any extra payments to the loan principal.

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

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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