A pass/fail grading system allows a student to receive either a grade of “P” (pass) or “F” (fail) for a particular class instead of the usual letter grading system. Many colleges offer this option in order to encourage students to explore new academic areas without having to worry about it affecting their transcripts.
However, the pass/fail grading system comes with some limitations, including restrictions on which and how many classes you can take pass/fail each year. And, in some cases, taking a class pass/fail can still have an impact on your academic record.
Read on to learn exactly what pass/fail means, what a passing (and failing) grade is, and when to consider a pass/fail option.
• A pass/fail grading system allows students to receive a “P” (pass) or “F” (fail) instead of letter grades.
• Many colleges offer this option to encourage academic exploration without affecting GPA.
• Pass/fail courses usually apply to electives and may not count toward a major or minor.
• While a passing grade has no impact on GPA, a failing grade can affect it similarly to traditional grading.
• Some employers and graduate programs may prefer letter grades but also value diverse coursework and intellectual curiosity.
How Pass/Fail Grading Works
The traditional grading system was initially established centuries ago by English universities like Oxford and Cambridge as a way of encouraging students to work harder. While letter grades may still be the dominant system in American universities, some schools have deviated from this structure, establishing their own ways of evaluating students largely based on the pass/fail system.
Reed College in Portland, Oregon has a unique style of grading that encourages students to “focus on learning, not on grades.” While students are still assigned grades for each course, these grades are not distributed to students. Instead, students are given lengthy comments and reports on their academic performance. Reed does not have a dean’s list or honor roll either.
At Brown University, students can take an unlimited number of classes “satisfactory/no credit (S/NC),” and GPAs are not calculated. They also do not name students to a dean’s list.
Some schools, including Swarthmore College and MIT, have students take all classes pass/fail in the first semester of their freshman years. Swarthmore’s policy is meant to encourage students to stretch themselves and take risks, and is aligned with their policy of collaboration as opposed to competition with classmates. MIT’s policy is designed to help students adjust to increased workloads and variations in academic preparation and teaching methods.
In both cases, taking the emphasis off grades is meant to improve students’ experiences of higher education, helping them to take full advantage of their time on campus.
Of course, most schools emphasize letter grades more than Brown and Reed, as it allows them to distinguish high achievers and highlight specific areas where students excel or may need to improve.
It’s common, however, for colleges to allow students to take one class pass/fail per semester. Typically, this is only offered for elective (not core) classes. Often, a grade of “P” is equal to a grade of D- or higher, but has no impact on the student’s overall grade point average. A grade of “F,” however, will usually have the same effect on the grade point average as a traditional failure.
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What Are the Benefits of Pass/Fail?
While college can be a rewarding and stimulating time for students, it also has its challenges, including constant pressure to keep up your grades. The beauty of taking a class pass/fail is the sense of freedom it gives you — once the stress of getting a perfect grade is removed, you are at liberty to fully embrace the kind of intellectual curiosity that should be at the heart of a college experience.
Maybe you’re a pre-med student and want to take a painting class, or perhaps you’re majoring in sociology and want to dabble in art history. These options can lead you down unexpected paths, opening creative doors you might have avoided if you were solely focusing on your GPA.
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The Limits to Pass/Fail
The pass/fail system also has some potential downsides. One is that should you end up doing really well in the class, you generally can’t change your mind and ask to take the class for a grade rather than pass/fail. By the same token, if you do poorly in a class, you can’t make a belated request for a pass/fail.
In addition, pass/fail grades generally don’t count toward a major or minor, which limits your options when deciding whether or not to go this route.
While it’s hard to know for sure, some students feel that taking a higher number of pass/fail classes could reflect poorly on their college academic record and be a strike against them when applying for a job or to graduate school. However, it’s also possible that a potential employer or an admissions officer might be impressed by a student’s breadth of study and sense of initiative in studying “outside the box.”
Taking a few of your classes pass/fail can be a great way to explore new academic areas of interest during college, and is unlikely to adversely impact your post-grad opportunities, including summer internships, employment, and graduate school.
Whether you take a class pass/fail or for a letter grade won’t have any impact on how many credits you get from the course — or the cost of tuition. If you’re concerned about how you’ll cover the cost of your education, keep in mind that you have a range of options — including savings, scholarships, grants, work-study programs, and federal or private student loans.
If you’ve exhausted all federal student aid options, no-fee private student loans from SoFi can help you pay for school. The online application process is easy, and you can see rates and terms in just minutes. Repayment plans are flexible, so you can find an option that works for your financial plan and budget.
Cover up to 100% of school-certified costs including tuition, books, supplies, room and board, and transportation with a private student loan from SoFi.
FAQ
How does pass/fail grading work?
Pass/fail grading simplifies academic evaluation by assigning a “pass” for satisfactory performance and a “fail” for unsatisfactory performance, typically without letter grades. It reduces pressure and allows students to explore subjects without impacting their GPA.
Does pass/fail hurt your GPA?
Pass/fail courses generally do not affect your GPA. A “pass” does not add points, and a “fail” may or may not lower it, depending on the institution’s policy. Check your school’s guidelines for specific details.
Does a pass/fail class look bad?
Pass/fail courses typically don’t impact your GPA. A “pass” doesn’t add points, while a “fail” might or might not lower it, depending on your school’s policy. Always check your institution’s guidelines for clarity.
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Are you ruminating about a refi? How soon you can refinance your home depends on the kind of mortgage you have and whether you want cash out.
The type of mortgage you have plays a major role in determining how soon you can refinance a mortgage after closing. You can typically refinance a conventional loan as soon as you want to, but you’ll have to wait six months to apply for a cash-out refinance. The wait to refinance an FHA, VA, or USDA loan ranges from six to 12 months.
Before any mortgage refinance, homeowners will want to ask themselves: What will the monthly and lifetime savings be? What are the closing costs, and how long will it take to recover them? If I’m pulling cash out, is the refinance worth it?
Key Points
• The timeline for when you can refinance a mortgage depends on the loan type and refinance purpose.
• Conventional loans can be refinanced anytime, but refinancing with the current lender may require a six-month wait.
• Cash-out refinances typically need at least a six-month waiting period.
• If you’re wondering how soon you can refinance an FHA mortgage, FHA loans mandate a 210-day wait for a Streamline Refinance.
• VA loans require a 210-day interval between refinances, with some lenders needing up to a year.
How Soon You Can Refinance Your Home by Mortgage Type
How soon after you buy a house can you refinance? The rules differ by home loan type and whether you’re aiming for a rate-and-term refinance or a cash-out refinance.
A rate-and-term refi will change your current mortgage’s interest rate, repayment term, or both. Cash-out refinancing replaces your current mortgage with a larger home loan, allowing you to take advantage of the equity you’ve built up in your home through your monthly principal payments and appreciation.
Here are more details about how soon after you buy a house you can refinance with different kinds of loans.
How Soon Can You Refinance a Conventional Loan?
If you have a conventional loan, a mortgage that is not insured by the federal government, you may refinance right after a home purchase or a previous refinance — but likely with a different lender.
Many lenders have a six-month “seasoning” period before a borrower can refinance with them. So you’ll probably have to wait if you want to refi with your current lender.
How Soon Can You Cash-Out Refinance?
Here’s how cash-out refinancing works: You apply for a new mortgage that will pay off your existing mortgage and give you a lump sum. A lower interest rate may be available at the same time.
How soon you can refinance your home with a cash-out refinance depends on the kind of loan, but you normally have to wait at least six months before refinancing a conventional mortgage. An FHA cash-out refinance requires that you have owned the home for at least one year and that your mortgage is at least six months old with a record of on-time payments. Getting a cash-out refinance on a VA loan involves a waiting period of 210 days from the closing date on the original mortgage or six months of on-time payments, whichever comes later.
How Soon Can You Refinance an FHA Loan?
An FHA Streamline Refinance reduces the time and documentation associated with a refinance, so you can get a lower rate faster. (That said, how soon you can refinance an FHA mortgage is still not as soon as with a conventional loan.)
You will have to wait 210 days (and make at least six on-time payments) before using a Streamline Refinance to replace your current mortgage.
How Soon Can You Refinance a VA Loan?
When it comes to VA loans, the Department of Veterans Affairs offers an Interest Rate Reduction Refinance Loan (IRRRL), also known as a “streamline” refinance.
It also offers a cash-out refinance for up to a 100% loan-to-value ratio, although lenders may not permit borrowing up to 100% of the home’s value.
How fast you can refinance a home loan from the VA is the same in both cases. The VA requires you to wait 210 days between each refinance or have made six on-time monthly payments, whichever comes later. Some lenders that issue VA loans have their own waiting period of up to 12 months. If so, another lender might let you refinance earlier.
How Soon Can You Refinance a USDA Loan?
The Streamlined-Assist refinance program provides USDA direct and guaranteed home loan borrowers with low or no equity the opportunity to refinance for more affordable payment terms.
Borrowers of USDA loans typically need to have had the loan for at least a year before refinancing. But a refinance of a USDA loan to a conventional loan may happen sooner.
How Soon Can You Refinance a Jumbo Loan?
You may be wondering, “When can I refinance my house if I have a jumbo loan?” For a jumbo loan, even a rate change of 0.50% may result in significant savings and a shorter time to break even.
Here’s the good news about how fast you can refinance a home loan that’s a jumbo loan: You can refinance your jumbo mortgage at any time if you find a lender willing to do so.
Top Reasons People Refinance a Mortgage
If you have sufficient equity in your home, typically at least 20%, you may apply for a refinance of your mortgage. Lenders will also look at your credit score, debt-to-income ratio, and employment.
If you have less than 20% equity but good credit — a minimum FICO® score of 670 — you may be able to refinance, although you may not receive the best rate available or you may be required to pay for mortgage insurance.
Remember, too, that home equity increased for many homeowners in recent years as home values rose. That’s attractive if you want to tap your equity with a cash-out refinance.
Here are some of the main reasons borrowers look to refinance.
Lower Interest Rate
For many homeowners, the point of refinancing is to switch to a loan with a lower rate. Just be sure to calculate your break-even point – the moment when the closing costs will have been recouped: To do this, divide the closing costs by the amount you’ll save in payments every month. For example, if your closing costs will be $5,000 and you’ll save $100 a month, it will take 50 months to break even and begin reaping the benefits of the refi.
Two points to remember if you’re considering a refi for this reason. First, if you purchased your home around 2020, it may be hard to capture a lower interest rate than you currently have, as rates then were particularly low compared to historical mortgage rates. And second: Closing costs can often be rolled into the loan or exchanged for an increased interest rate with a no-closing-cost refinance.
Shorten Loan Term
Refinancing from a 30-year mortgage to a 15-year loan usually saves you a substantial amount of loan interest, as this mortgage calculator shows. Or you might want to refi to a 20-year term, if you’re years into your mortgage already, since resetting to a new 30-year term may not pay off.
Reduce PMI
If you put down less than 20% on a conventional mortgage, you’re probably paying primate mortgage insurance (PMI) on the loan. This typically costs between 0.5% and 1.0% of the total loan amount annually, though it can be higher. When your mortgage balance is down to 78% of the home’s original value (or the loan reaches the halfway point of the term schedule) the lender will automatically cancel the insurance, and you can request to have it removed when the balance is down to 80%, but until then, you’re on the hook for these monthly payments. One potential way to get rid of or reduce them is to refinance. For this to be worth considering, rates will have to be lower and you’ll need to find a lender willing to let you refinance with less than 20% equity. But especially if your home has gone up in value, this may be a possibility.
FHA loans require a similar insurance payment, called mortgage insurance premiums. After the upfront fee you’ll pay at closing, you pay monthly installments on a charge that’s annually between 0.15% and 0.75% of your loan amount for 11 years or the life of your loan, depending on when you took out the loan and the size of your down payment. The only way to get rid of those fees early may be to sell your home or refinance the mortgage to a conventional loan once you have 20% equity in the home — in other words, when your new loan balance would be at least 20% less than your current home value.
Switch to an ARM or Fixed-Rate Loan
Depending on the rate environment and how long you expect to keep the mortgage or home, refinancing a fixed-rate mortgage to an adjustable-rate mortgage (ARM) with a low introductory rate could be a strategic move. Similarly, if you’re uncomfortable with unpredictable payments and want to lock in a stable rate, switching from an ARM to a fixed-rate loan may make sense.
The Takeaway
If you’ve been asking yourself, “When can I refinance my house?” the answer is that it depends. If it’s a conventional loan, whenever you want to, although probably not with the same lender if that’s within six months of closing. Otherwise, if you must bide your time before refinancing or you’re waiting for rates to drop, that gives you a lull to decide whether a traditional refinance or cash-out refi might suit your needs.
SoFi can help you save money when you refinance your mortgage. Plus, we make sure the process is as stress-free and transparent as possible. SoFi offers competitive fixed rates on a traditional mortgage refinance or cash-out refinance.
A new mortgage refinance could be a game changer for your finances.
FAQ
Do you need 20% equity to refinance?
Some lenders will allow you to refinance with less than 20% equity in your home, but you may not get the best available interest rate, or you may need to pay for private mortgage insurance. You’ll want to do the math to make sure you’re saving money with the refinance.
Does refinancing hurt your credit score?
There may be a temporary dip in your credit score after a refinance, but if refinancing helps you lower your monthly debts you may find that it is actually helpful to your credit score over the long term.
Should I refinance soon after buying a home?
How soon you can refinance your mortgage after closing is secondary to whether refinancing soon is a good idea. That will depend on your specific loan, how much you put down, whether rates have changed, and many other factors. You’ll also want to take into account both the advantages you hope to get from refinancing as well as the costs.
How do I know when to refinance my mortgage?
The time to think about refinancing your home is when the benefits of a refi outweigh potential costs (like closing costs). If you can get a significantly lower interest rate, switch to a more advantageous loan type, or access a sum you need from a cash-out refinance, for example, it may be worth looking into a refinance.
Can you refinance more than once in a year?
There’s no legal limit on how often you can refinance. However, lenders and loan types may require waiting periods which will limit how many times you can refinance in a year. And don’t forget that you’ll generally need to pay for closing costs each time, as well.
What documents are needed to refinance a mortgage?
Requirements will vary by lender, but typically you’ll need to have documents that establish your income (W-2s for the past two years and paystubs; 1099s and/or tax returns if you’re self-employed), records establishing your financial reserves (account statements, including investment accounts), proof of homeowners insurance, and the most recent monthly statement for any mortgages or home equity loans you have.
*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
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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.
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
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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¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.
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¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.
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Earning straight A’s in college is a goal that many students aspire to, but it can seem daunting and overwhelming. However, with the right strategies, time management, and a bit of perseverance, it’s entirely achievable.
With the cost of college still rising (counting room and board, a private college can run up to $80,000 per year, and a public college, up to $30,000 or more), getting straight A’s can help you in key financial ways. It can put you on track for a lucrative career or give you an edge in a competitive internship field.
Keep reading for tips on how to get all A’s in college, what it means for future employers, financial benefits of getting straight A’s in college, and more.
• Pursue a subject you’re passionate about to boost motivation, focus, and the likelihood of academic success — this could lead to higher grades and GPA.
• Create a consistent study schedule, find a quiet and comfortable study space, and use techniques like active reading, summarizing, and practice tests to enhance your understanding and retention of material.
• Prioritize your tasks, use a planner or digital calendar to keep track of assignments and deadlines, and avoid procrastination by breaking large tasks into smaller, manageable steps.
• Participate actively in lectures and discussions, take detailed notes, and build relationships with your professors. This not only helps you understand the material better but also shows your commitment and effort.
• Benefits of getting straight A’s in college include making the dean’s list and possibly receiving scholarships to help pay for college.
What Is a 4.0 GPA in College?
Your GPA (Grade Point Average) is a number that reflects your academic standing based on the grades you receive in all classes. The scale starts at the top with 4 (for an A), 3 (B), 2 (C), 1 (D), and O (for F, or failing). A 4.0 GPA means you aced every class and got straight A’s in college.
Do Colleges Care About Straight A’s?
To get in the college door, the answer is often yes. Many college admissions teams do notice straight A’s in a quest to enroll the best and brightest high school students.
Once you are on campus, your college may not expect all A’s, but some colleges and universities may require a minimum GPA in introductory courses before allowing students to declare a popular major that typically brings lucrative returns later. The list may include mechanical engineering, computer science, nursing, finance, and economics. These universities want students of the highest academic caliber for the highest-earning majors.
Another reason colleges care about your grades is because you need to maintain a certain GPA to continue to qualify for federal student aid. In order to maintain eligibility for federal student aid, including federal loans and grants, students need to meet their school’s standards for Satisfactory Academic Progress (SAP). Each college is allowed to set its own minimum GPA.
Merit scholarships may also have minimum GPA requirements, so maintaining a high academic standard may be important for maintaining eligibility for merit awards as well.
GPA, a benchmark once widely used by employers, is now considered by just 37%, according to a 2023 survey by the National Association of Colleges and Employers (NACE). That’s a dip from 2019, when, according to NACE, nearly three-quarters of respondents said they used GPA to identify promising candidates.
According to NACE, the trend away from using GPA appears to reflect awareness that GPA screening may not build an inclusive workforce and can be a disadvantage to students who balance school with work and other responsibilities. Also, as employers compete for talent, they are reevaluating long-used screening tools.
How Hard Is It to Get a 4.0 in College?
Whether you’re getting all A’s often depends on your major, the courses you take (organic chemistry, anyone?), and even the college you attend. But chasing a 4.0 can be hard on your life balance. If all you do is study, with no sleep, social life, or campus activities, your health and mental well-being may suffer.
Instead of overemphasizing your GPA, it may help to also focus on how you’re challenging yourself. A GPA is just one measure of your coursework.
Tips for Getting All A’s in College
If you are after all A’s, this action plan could help you achieve your goal.
Select a Major That You Are Passionate About
College is the time to immerse yourself in subjects that enthrall, inspire, and move us, whether that means microbiology or British literature. But if your mind is in the art world and your nose is in a sociology book, your interest can wane and you may be far less likely to excel. Choose a major that ignites your brain power and A’s will be more attainable.
Time Your Classes Well
When are you most alert? Are you wide awake in the morning and dragging by the evening? Schedule classes accordingly. Can you focus on a weekly 3-hour seminar or would you do better with a shorter class that meets more often? Know yourself and how you learn and work most productively.
Take Advantage of Professors’ Office Hours
If a calculus formula is not crystal-clear or you want to talk a little more about that short story structure, stop by your professor’s office during posted hours or pop in virtually if that’s an option. Professors post hours so students can get the help they need.
Practice Good Time Management
Make an organized schedule. Use Google Calendar on your phone or get an actual planner with paper pages. Don’t double-book time slots, whether for a study/coffee date with a classmate or your shift at the campus newspaper.
Closely Track Grades
Don’t wait until the end of the semester to see what your average is in your classes. Keep up to date on every grade and pump up your study efforts if necessary.
Set Study Time Blocks
Build in study blocks wherever and whenever possible. Several short sessions can be as productive as one long one. Review and study notes from day one to start building a bank of knowledge. When studying, turn off your phone and leave it in your backpack. Avoid looking at emails or other digital distractions. Take notes on relevant readings and review and organize class notes each week so you don’t have to cram come exam time.
Plan your study location based on the lowest possible risk of distractions, such as the school library. Adjust times and places as needed, and be flexible. Maybe 30 minutes at a coffee shop between classes is all you have one day, but if you block out two hours to study, stick to it. Consider enlisting a study buddy.
Benefits of Getting Straight A’s in College
Excelling in your classes can bring perks like these.
Dean’s List Recognition
The dean’s list, a term dating to the early 14th century, comes from the Latin decanus (“head of a group of 10 monks in a monastery”). You, of course, are at college, not a monastery, but you are at the head of the class when you make the dean’s list.
The distinction is usually reserved for full-time students at a specific GPA. Being on the dean’s list could help you stand out in a field of applicants for internships and seasonal jobs. Consecutive semesters on the list show you can achieve and maintain high standards.
Scholarships and Grants
Straight A’s can potentially translate into money to help pay for college. Unlike loans, which must be repaid, scholarships and grants are free money that can be used to cover tuition, books, and other educational expenses. These awards are often merit-based, meaning they are given to students who demonstrate exceptional academic performance, leadership, or other achievements.
To apply for scholarships and grants, start by researching available opportunities through your college’s financial aid office, online databases, and local organizations. Once you identify potential scholarships and grants, carefully review the eligibility criteria and application requirements. Tailor each application to highlight how you meet the specific criteria and stand out as a candidate. Submit your applications well before the deadlines to avoid last-minute stress and ensure they are complete and polished.
The Takeaway
Getting all A’s in college can bring big benefits, from helping you secure a place in a crowded major with lucrative career returns (such as engineering or computer science) to earning you a place on the dean’s list, a marker that helps you stand out in a competitive internship field. With the right study skills, you can seriously up the odds of acing your classes.
Hopefully, good grades will award you scholarships, but if not, there are other ways to help pay for college. You can use cash savings, grants, federal student loans, and private student loans.
If you’ve exhausted all federal student aid options, no-fee private student loans from SoFi can help you pay for school. The online application process is easy, and you can see rates and terms in just minutes. Repayment plans are flexible, so you can find an option that works for your financial plan and budget.
Cover up to 100% of school-certified costs including tuition, books, supplies, room and board, and transportation with a private student loan from SoFi.
FAQ
What is a 4.0 GPA in college?
A 4.0 GPA in college represents a perfect academic performance, where a student has achieved the highest possible grades in all courses. This grade point average is calculated on a 4.0 scale, with 4.0 being the equivalent of an A or A+ in every class, indicating exceptional academic excellence and consistency.
How do you become a straight-A student?
Becoming a straight-A student involves consistent effort and effective strategies. Attend classes regularly, take thorough notes, and stay organized. Set clear goals, manage time wisely, and prioritize studying. Engage actively with the material, seek help when needed, and maintain a healthy balance between academics and personal life. Persistence and a strong work ethic are key.
Do colleges care about straight A’s?
Colleges may not care if you get straight A’s, but some schools may require students to have a minimum GPA in introductory courses before allowing them to declare a popular major that typically brings lucrative returns in the work world. The list includes mechanical engineering, computer science, nursing, finance, and economics. Another reason to watch your GPA is that federal student loans and many scholarships and grants have a minimum GPA requirement.
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If you’re married or in a committed relationship, you may be wondering whether combining your finances with a joint bank account is the right choice, or if it’s better to keep things separate.
Opening a joint checking account can simplify budgeting and spending, especially if you’re sharing household expenses. In SoFi’s 2024 Love & Money survey (which included 450 adults who live with their partners and plan to marry in the next few years), nearly 30% said they already had a joint account with their significant other, and 39% said they were planning to open one.
But joint accounts also have some drawbacks, including loss of financial privacy and independence. If you are mulling over this decision, read on to learn the pros and the cons of opening a joint bank account, as well as what’s required to open this type of account.
Key Points
• A joint bank account allows shared access to funds, simplifying bill payments and budgeting.
• Both account holders are equally responsible for the account’s activities.
• A joint account can help promote transparency and trust between account holders.
• Some potential downsides include financial disputes and loss of privacy.
• To open a joint account, you’ll generally need to provide identification and personal information for all account holders.
🛈 At this time, SoFi only offers joint accounts for members 18 years old and above.
What Is a Joint Bank Account?
A joint bank account is an account that is shared between two or more people. It allows all account holders to deposit, withdraw, and manage funds, and is often used by couples, family members, or business partners.
Sharing a checking account comes with a number of benefits, including the convenience of managing household expenses and promoting transparency between couples. However, joint accounts also have some potential downsides, such as increased risk for financial disputes and potential strain on the relationship.
One of the biggest decisions a couple will make is whether they decide to treat their money as a shared asset or as separate entities. As with any discussion about money, every individual or couple will have different goals and experiences, so it’s helpful to take a look at both sides. Considering the pros and cons of joint vs separate accounts may help you decide if this kind of account suits you.
How Does a Joint Account Work?
A joint account functions just like an individual bank account, except that more than one person has access to it.
Everyone named on a joint account has the power to manage it, which includes everything from deposits to withdrawals. Any account holder can also close the account at any time. In addition, all owners of a joint account are jointly liable for any debts incurred in relation to the account.
You can open a joint account with a spouse or partner you live with, but you don’t have to be a married couple or even live at the same address to open a joint checking or savings account. For example, you can open a joint account with an aging parent who needs assistance with paying bills and managing their money. You can also open a joint account with a friend, roommate, sibling, business partner, or (if your bank allows it) a teenage child.
What Are Some Pros of a Joint Bank Account?
Here are some of the benefits of opening a joint account:
• Ease of paying bills. When you’re sharing expenses, such as rent/mortgage payments, utilities, insurance, and streaming services, it can be a lot simpler to write one check (or make one online payment), rather than splitting bills between two bank accounts. A shared account can simplify and streamline your financial life.
• Transparency. With a joint checking account, there can’t be any secrets about what’s coming in and in and what’s going out, since you both have access to your online account. This can help a newly married couple understand each other’s spending habits and talk more openly about finances.
• A sense of togetherness. Opening a joint bank account signals trust and a sense of being on the same team. Instead of “your money” and “my money,” it’s “our money.”
• Easier budgeting. When all household and entertainment expenses are coming out of the same account, it can be much easier to keep track of spending and stick to a monthly budget. A joint account can help give a couple a clear financial picture.
• Banking perks. Your combined resources might allow you to open an account where a certain minimum balance is required to keep it free from fees. Or, you might get a higher interest rate or other rewards by pooling your funds. Also, in a joint bank account, each account holder is typically insured by the FDIC (Federal Deposit Insurance Corporation), which means the total insurance on the account is higher than it is in an individual account.
• Fewer legal hoops. Equal access to the account can come in handy during illness or another type of crisis. If one account holder gets sick, for example, the other can access funds and pay medical and other bills. If one partner passes away, the other partner will retain access to the funds in a joint account without having to deal with a complicated legal process.
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🛈 At this time, SoFi only offers joint accounts for members 18 years old and above.
What Are Some Cons of a Joint Bank Account?
Despite the myriad advantages of opening a joint account, there are some potential downsides to a shared account, which include:
• Lack of privacy. Since both account holders can see everything that goes in and comes out of the account, your partner will know exactly what you’re earning and how much you are spending each month.
• Potential for arguments. While a joint account can prevent arguments by making it easier to keep track of bills and spending, there is also the potential for it to lead to disagreements if one partner has a very different spending style than the other.
• No individual protection. As joint owners of the account, you are both responsible for everything that happens in the account. So if your partner overdraws the account, you will both be on the hook for paying back that debt and covering any fees that are charged as a result. If one account holder lets debts go unpaid, creditors can, in some cases, go after money in the joint account.
• It can complicate a break-up. If you and your partner end up parting ways, you’ll have the added stress of deciding how to divide up the bank account. Each account owner has the right to withdraw money and close the account without the consent of the other.
• Reduced benefits eligibility. If you open a joint account with a teenage child who is going to, or is already in, college, the joint funds will count towards their assets, possibly reducing their eligibility for financial aid. The same goes for an elderly co-owner who may rely on Medicaid long-term care.
How to Open a Joint Bank Account
If you decide opening a joint account makes sense for your situation, the process is similar to opening an individual account. You can check your bank’s website to find out if you need to go in person, call, or just fill out forms online to start your joint account.
Typically, you have the option to open any kind of bank account as a joint account, except you’ll select “joint account” when you fill out your application or, after you fill in one person’s information, you can choose to add a co-applicant.
Whether you open your joint account online or in person, you’ll likely both need to provide the bank with personal information, including address, date of birth, and social security numbers, and also provide photo identification. You may also need information for the accounts you plan to use to fund your new account.
Another way to open a joint account is to add one partner to the other partner’s existing account. In this case, you’ll only need personal information for the partner being added.
Before signing on the dotted line, it can be a good idea to make sure you and the co-owner know the terms of the joint account. You will also need to make decisions together about how you want to manage and monitor the account, such as which account alerts you want to set up.
Should I Open a Joint Bank Account or Keep Separate Accounts?
As you consider your options, know that it doesn’t have to be all or nothing. You might find that the best solution is to pool some funds in a joint account for specific purposes, from paying for basic living expenses to saving for the down payment on a house or building an emergency fund.
You might keep your own separate accounts as well, where you can spend on what you like without anyone watching (or judging). In SoFi’s Love & Money newlywed survey (which included 600 adults who have been married less than one year), the most popular banking set-up, chosen by 42% of couples, was a hybrid approach — having both joint and individual accounts.
Opening a joint bank account offers convenience by allowing shared access to funds for bills, savings, or everyday expenses. Joint accounts also promote transparency and can simplify money management for couples who share financial responsibilities.
But joint accounts also come with some downsides and potential risks. All transactions on the joint account are visible to both account holders, which can lead to a lack of privacy regarding personal spending habits and potential conflict. Plus, either holder can withdraw money without the other’s consent. If one person mismanages funds, both may be affected.
Some couples choose to maintain separate accounts alongside a joint one for shared expenses to achieve a balance of independence and collaboration.
Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with eligible direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.
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🛈 At this time, SoFi only offers joint accounts for members 18 years old and above.
FAQ
What are the disadvantages of a joint account?
A joint bank account can create financial complications if one account holder mismanages money or racks up overdraft fees, as both parties are equally responsible. Disagreements over spending habits may also come up, which could strain a relationship. Also, in the event of a breakup or divorce, separating funds can become more complicated.
Are joint bank accounts a good idea?
Joint accounts can be a good idea for couples, family members, and business partners who share financial goals and trust each other fully. They simplify bill payments, budgeting, and managing shared expenses. However, they also require communication and mutual agreement on spending. If that trust breaks down or if one person is less financially responsible, problems can arise. Whether it’s a good idea depends on the relationship and financial compatibility.
Is it better to have joint or separate bank accounts?
Whether to have joint or separate bank accounts depends on the relationship and financial habits of the individuals involved. Joint accounts offer transparency and make shared expenses easier to manage, which can work well for couples or family with aligned goals. Separate accounts allow more financial independence and privacy. Some people prefer a hybrid approach — maintain both joint and individual accounts. The best setup depends on trust, communication, and lifestyle needs
Who owns the money in a joint bank account?
In a joint bank account, both account holders have equal legal ownership of the funds, regardless of who deposits the money. This means either person can withdraw or use all the money at any time without the other’s permission.
About the author
Julia Califano
Julia Califano is an award-winning journalist who covers banking, small business, personal loans, student loans, and other money issues for SoFi. She has over 20 years of experience writing about personal finance and lifestyle topics. Read full bio.
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Jobs that help pay off a portion of student loans have become more common and for a good reason. The average federal student loan borrower has over $38,000 in student loan debt, while borrowers with private student loans owe more than 41,000, on average, according to the Education Data Initiative.
Companies that help to repay a portion of student loans are still in the minority, however, so you may have to do some research to get student loan assistance as a benefit. To help you, here’s what to know about jobs that help pay off student loans, companies that offer this perk, and what you can do to try and negotiate for it.
• More and more companies in the U.S. are offering student loan assistance programs
• Some careers, such as healthcare, law, public service, and education offer repayment assistance programs or student loan forgiveness programs, typically in return for service commitments.
• A number of major companies offer employees help in repaying their student loans, including Hulu, New York Life, and SoFi.
• Student loan borrowers who receive student loan assistance may owe taxes on some canceled debt.
• When interviewing for a job that doesn’t offer student loan repayment assistance, individuals can try to negotiate the benefit into their total compensation.
Types of Job-Based Student Loan Assistance Programs
There are two types of student loan assistance you may receive through an employer: repayment assistance programs where your employer is a participant and repayment assistance benefits your employer offers funds to the employee or the employee’s loan servicer directly.
Repayment Assistance Programs
Depending on your career field, you may be eligible to receive student loan assistance or student loan forgiveness through a federal or state program. There are several programs for those working in public service careers, like the Public Service Loan Forgiveness (PSLF) and Teacher Loan Forgiveness programs, which cancel existing balances for eligible borrowers who meet certain requirements.
That said, these programs typically require you to commit to working in a specific job or a certain area (such as medicine, law, or military service, for example) for a set number of years, which can be challenging if you don’t enjoy the job or want to pursue a different career path somewhere else.
But if you fulfill your service obligation, you may get as much as your full student loan balance forgiven.
According to data from the International Foundation of Employee Benefit Plans, 14% of employers in the U.S. offered student loan repayment assistance as a benefit in 2024 — up from 4% in 2019.
The terms of repayment assistance benefits can vary by employer. For example, some may offer to match a portion of the employee’s payments and others may simply pay a set amount toward an employee’s loan balance each month.
The amount you receive from a repayment assistance benefit may be less than what you might get through a government repayment assistance program. But you may not need to commit to a service obligation to qualify, and you may be able to negotiate how much you’ll receive.
Types of Jobs That Offer Student Loan Forgiveness
In order to qualify for certain types of loan forgiveness, borrowers may need to meet certain employment requirements. Here are some of the jobs that could potentially allow someone to qualify for federal student loan forgiveness programs.
1. Federal Agency Employee
The federal student loan repayment program exists for employees of the federal government, and allows a portion of their federal student loans to be paid off each year. The benefit permits for up to $10,000 in payments each calendar year, not to exceed a total of $60,000 for any one employee.
In order to qualify for this student loan repayment assistance, the employee is required to sign onto a minimum three-year contract with the agency. If they leave the agency early, they’ll need to repay any benefits received.
2. Public Service Worker
If you work full-time in the public service sector for a qualifying organization, such as the government or a non-profit, you may qualify for Public Service Loan Forgiveness (PSLF).
To pursue PSLF, borrowers need to have Direct loans and be enrolled in an income-driven repayment plan. (If you have other types of federal loans, such as Perkins loans, you’ll need to consolidate them into a Direct Consolidation Loan to qualify.) Forgiveness is awarded after making 120 qualifying payments and certifying all employers.
3. Medical Field
The Association of American Medical Colleges maintains a database with information on loan assistance programs for doctors by state.
Medical professionals who work in certain underserved areas may also qualify for loan forgiveness through the National Health Service Corps Loan Repayment Program. In this program, medical professionals must commit to working for at least two years at an NHSC-approved site in a Health Professional Shortage Area (HPSA).
Refinancing medical school student loans may be another option to consider for medical professionals who are not pursuing any loan forgiveness programs. Refinancing could potentially allow borrowers to secure a more competitive interest rate, if they qualify. Just be aware that refinancing federal loans makes them ineligible for federal forgiveness programs and other programs and protections.
4. Automotive Professionals
Professionals in the automotive industry may qualify for loan forgiveness through the Specialty Equipment Market Association (SEMA) Loan Forgiveness Program. To be eligible, you must work for a SEMA member business and have at least $2,000 in outstanding debt, among other qualifications.
5. Lawyer
In addition to PSLF, there are other lawyer-specific programs that provide assistance to lawyers paying off student loan debt. These include the Department of Justice Attorney Student Loan Repayment Program and the John R. Justice (JRJ) Program.
6. Teacher
Student loan forgiveness for teachers is available. Teachers who work in special education are considered highly qualified teachers or work in underserved areas may qualify for the Teacher Loan Forgiveness Program. The amount of loan forgiveness available is dependent on the teacher’s area of specialty and can be either up to $17,500 or up to $5,000.
7. Peace Corps
Peace Corps volunteers may be eligible to defer their loans or pursue PSLF. Additionally, while on a qualifying repayment plan, payments could be as low as $0 per month while volunteering.
8. Veterinarian
Veterinarians who work in underserved areas may qualify for up to $40,000 in student loan repayment assistance through the U.S. Department of Agriculture’s Veterinary Medicine Loan Repayment Program. Eligible veterinarians must agree to serve in a NIFA-designated veterinarian shortage situation for a period of three years to qualify.
15 Major Companies that Repay Student Loans
Hundreds of large and small employers offer jobs that pay off student loans, but it’s not always easy to find out which ones provide the benefit. To help you get started, here are 15 well-known companies that repay student loans.
1. Abbott Laboratories
The company’s Freedom 2 Save program functions a bit differently than other repayment assistance benefits in that it combines efforts to pay off student loan debt and save for retirement.
Full- and part-time employees who qualify for the company’s 401(k) plan and contribute at least 2% of their eligible pay toward student loan repayment will receive a 5% contribution to their 401(k) account. Employees aren’t required to contribute to their 401(k) to receive these funds.
2. Aetna
In addition to a tuition reimbursement program, healthcare company Aetna also matches student loan payments for eligible employees who meet certain requirements. For full-time employees, the program matches student loan payments up to $2,000 per year, with a lifetime maximum of up to $10,000 for qualifying loans.
3. Ally Financial
Financial services company Ally provides $100 per month toward student loan payments, with a lifetime maximum cap of $10,000. Employees also receive a monthly $100 contribution to a 529 plan with a $10,000 lifetime maximum.
4. Chegg
Education company Chegg has paid out more than $1 million toward employee student loan debt through its Equity for Education benefit. For entry-level employees through manager level, those who have worked at the company for at least 2 years receive up to $5,000 annually. Employees at the director or vice-president level can receive up to $3,000 annually.
5. Estee Lauder
The beauty company provides employees with $100 per month in student loan assistance, up to a lifetime maximum of $10,000.
6. Fidelity
As a full-time employee of the investment brokerage firm, you may be eligible to receive up to $15,000 toward your student loan payments.
7. Google
Google matches up to $2,500 in loan payments per employee each year.
8. Hulu
Streaming service Hulu pays up to $1,200 a year per employee who has been at the company for at least one year to help pay off their student loans, up to $6,000.
9. Live Nation
Entertainment company Live Nation Live Nation matches employee contributions of up to $100 per month, or $1,200 a year. The lifetime maximum is $6,000 in benefits. Employees must be employed with the company for at least six months to qualify.
10. New York Life
New York Life’s student loan assistance program contributes $170 per month toward student loans that are in good standing. Employees can receive up to $10,000 while enrolled in the program.
11. Nvidia
As a Nvidia employee, you can receive up to $350 a month toward your student loan payments. The lifetime cap is $30,000 in assistance. To be eligible, you must be a full-time or part-time U.S. employee working 20 hours or more per week.
12. Penguin Random House
Penguin Random House offers eligible employees $100 a month toward their student loans.
13. PricewaterhouseCoopers (PwC)
As a participating associate or senior associate, you can receive $1,200 in student loan payments each year with a maximum benefit of $7,200.
14. SoFi
As an employee with SoFi, you’ll get $200 each month in student loan repayment assistance.
15. Staples
Eligible employees for the Staples student loan assistance program include active, full-time U.S. associates with at least one outstanding loan obligation. Participants must also have obtained or are in the process of receiving a degree from an accredited institution. The company pays $100 per month toward loan principal for 36 months.
How Is Student Loan Assistance Taxed?
If you receive student loan assistance or cancellation, it’s important to understand the tax consequences. Depending on the situation, you could be responsible for a tax bill.
The IRS typically considers canceled debt to be taxable income. That includes most student loan debt forgiveness or discharge, except for PSLF. However, the American Rescue Plan Act of 2021 exempts borrowers who are working toward loan forgiveness from having their forgiven balances taxed if their loans were discharged between January 1, 2021, and December 31, 2025. This only applies to federal taxes, though, and some states may still require forgiven student loans to be taxed as income.
As for employer-sponsored assistance programs, a temporary pandemic-era provision allows employers to contribute up to $5,250 per year in tax-free funds toward qualified education costs for employees. Any contributions above that amount are considered taxable income for the employee. However, this special tax treatment expires December 31, 2025, after which any amount of employer payments or reimbursements for education expenses or student loan repayment will be taxed as income.
Negotiating a Student Loan Repayment Benefit
If you’re looking for a job, keep an eye out for companies that repay student loans as an employee benefit. If you can’t find one, you can still try to negotiate the benefit into your total compensation. Here are some ways to do it.
Doing Your Research
Resources such as Payscale and Glassdoor can help give you an idea of the salary and benefits that may be available from various companies. Look at what the company you’re interested in typically offers as well as what you might get with a similar position somewhere else.
If anything, this process can give you a better idea of what you’re worth. But it will also give you a benchmark that you can use to negotiate for student loan repayment benefits, along with other aspects of your compensation.
Making Your Interests Clear
Helping a potential employer understand why student loan repayment is important to you can help set the stage for the entire conversation.
In addition to salary, employers can consider several other factors to make up your total compensation. So knowing what’s most important to you can help them make a more attractive offer.
Asking for a Signing Bonus Instead of Monthly Payments
While a signing bonus isn’t specifically designed as a student loan repayment benefit, you can use it that way. In fact, making a lump sum payment toward your student loans could help you accelerate your student loan debt repayment timeline.
Asking for the Opportunity to Revisit the Request in the Future
If you can’t manage to persuade a potential employer to provide you with student loan assistance, that may not be the end of it. You could ask for the chance to talk about your compensation again in six months or a year.
During that time, you may be able to prove to your employer that it’s worth the investment on their part. Or you may have planted a seed for the employer to create a student loan repayment benefit for all employees.
Making Student Loan Repayment a Priority
Whether or not you can find jobs that pay off student loans, you can still make it a priority to eliminate your student debt as quickly as possible. A student loan repayment assistance benefit can help you achieve that goal, but it can’t do it on its own.
As such, it’s essential to consider other options to save money, such as refinancing your student loans. While refinancing can be a helpful option for some borrowers, it won’t make sense for everyone, however. If federal student loans are refinanced, they’ll lose eligibility for federal programs and benefits, such as PSLF or income-driven repayment plans.
If you qualify, you may be able to reduce your interest rate or your monthly payment. With a lower interest rate you could potentially save money over the life of your loan.
The Takeaway
Many companies offer student loan repayment assistance as a part of their employee benefits package. Some jobs might also offer the opportunity for the borrower to apply for student loan forgiveness. For example, there are programs available for medical professionals, teachers, and those that work in the government or non-profit sector.
Another opportunity for managing student loans is refinancing, which could allow qualifying borrowers to lower their interest rates — making the loan more affordable in the long run. If you’re interested in refinancing, consider the options available at SoFi.
Looking to lower your monthly student loan payment? Refinancing may be one way to do it — by extending your loan term, getting a lower interest rate than what you currently have, or both. (Please note that refinancing federal loans makes them ineligible for federal forgiveness and protections. Also, lengthening your loan term may mean paying more in interest over the life of the loan.) SoFi student loan refinancing offers flexible terms that fit your budget.
With SoFi, refinancing is fast, easy, and all online. We offer competitive fixed and variable rates.
FAQ
What careers pay off student loans fastest?
High-paying jobs may help borrowers repay their student loans quickly. However, some jobs may allow borrowers to pursue a loan forgiveness program. While these programs may not expedite the repayment process, they could help make student loan repayment more manageable.
What companies pay off student loans?
Companies including SoFi, Fidelity, Penguin Random House, and Nvidia all offer student loan repayment assistance programs. Specific benefits vary by company.
What kind of jobs qualify for student loan forgiveness?
The type of job that qualifies for student loan forgiveness may vary depending on the program. Jobs in the government or non-profit sector may qualify a borrower for Public Service Loan Forgiveness. Teachers may qualify for Teacher Student Loan Forgiveness programs. Some medical professionals may qualify for programs such as the National Health Service Corps Loan Repayment Program.
SoFi Student Loan Refinance Terms and conditions apply. SoFi Refinance Student Loans are private loans. When you refinance federal loans with a SoFi loan, YOU FORFEIT YOUR ELIGIBILITY FOR ALL FEDERAL LOAN BENEFITS, including all flexible federal repayment and forgiveness options that are or may become available to federal student loan borrowers including, but not limited to: Public Service Loan Forgiveness (PSLF), Income-Based Repayment, Income-Contingent Repayment, extended repayment plans, PAYE or SAVE. Lowest rates reserved for the most creditworthy borrowers. Learn more at SoFi.com/eligibility. SoFi Refinance Student Loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).
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