InvestSLR Archives

Jan

2026

A jubilant young woman with curly hair and glasses holds a phone, pumping her fist in front of a laptop.

52 Companies that Offer Student Discounts in 2026

By Kaitlyn Farley | Budgeting & Goals, Going to College, Student Loans, student_loan | Comments Off

College comes with a lot of expenses. On top of tuition, fees, books, and housing, you might also want to occasionally go out and have fun. Maybe you want to go shopping, see a movie, or meet friends for lunch or dinner. That’s not always easy on a student budget. Fortunately, there are widely available deals and discounts designed just for college students. Here’s where you can find them.

Table of Contents

Major Retailers
Technology
Clothes
Restaurants
Travel & Transportation
Entertainment
Home Goods
FAQ

Key Points

• Major retailers like Amazon and Sam’s Club offer special pricing and membership benefits to college students.

• Technology companies such as Apple, Microsoft, and Dell provide discounts on products and software for students.

• Clothing stores like J.Crew, Aeropostale, and Levi’s offer a percentage off purchases upon showing a valid student ID.

• Restaurants including Burger King, Chick-fil-A, and Buffalo Wild Wings provide various discounts and deals for students.

• Travel and transportation services like Zipcar, Amtrak, and United Airlines offer reduced rates for students traveling domestically.

Major Retailers

1. Amazon

Amazon Prime for Young Adults gives college students a six-month free trial, followed by a discounted Prime subscription ($7.49/month). You also get access to student-exclusive offers, including free Grubhub+ and 5% cash back on a wide variety of purchases.

2. Sam’s Club

Sam’s Club offers qualified college students 60% off a Club membership or $50 off a Plus membership (which comes with free curbside pickup and free delivery on orders of $50-plus). Students need to apply online to qualify.

💡 Quick Tip: You’ll make no payments on some private student loans for six months after graduation.

3. Target

Target Circle’s College Student Appreciation program offers exclusive perks and discounts to students, which could come in handy when you’re shopping for your dorm room. To access deals, including 50% off Circle 360, you need to verify your student status (by uploading a student ID, class schedule, or tuition receipt) and join Target Circle for free.

4. Costco

A Costco membership can also help make college more affordable. College students who join Costco as a new Gold Star Member through UNiDAYS (a site that verifies student status and offers exclusive student deals) can get a $40 Digital Costco Shop Card.

Technology

5. Apple

Keep this in mind when you’re preparing for college: Apple offers special pricing for current and recently accepted college students (along with their parents). For example, you can get a 13” Macbook Air starting at $899 or an iPad air from $549.

6. Microsoft

Students (as well as parents and teachers) can save up to 10% off eligible computers and accessories with Microsoft’s student discount.

7. Dell

Dell offers 10% off when you register for Dell Rewards and verify your student status.

8. Lenovo

College students get an extra 5% off their tech purchases at Lenovo. Incoming students can also access the deal by providing a letter of acceptance. You simply need to verify your student status through ID.me during checkout.

9. Adobe

Adobe allows students to get Creative Cloud Pro for $24.99/month for the first year and $39.99/month after that (it’s normally $66.99/month). To get the deal, you need to provide a school-issued email address during purchase so you can be instantly verified.

52 Places with Student Discounts

Clothes

10. Aeropostale

Students can benefit from an extra 15% off at Aeropostale. To take advantage of the deal, you’ll simply need to register and verify your student status with UNiDAYS.

11. J.Crew

J.Crew gives students with a valid student ID 15% off purchases both in store and online. The discount can be used up to four times a month.

12. Hanes

Need some basics, like tees or undergarments? Hanes offers students 10% off online purchases. To score your discount, you need to verify your student status through ID.me and get a promo code.

13. The North Face

The North Face gives students a 10% discount when shopping in store or online. To get the discount in person, simply show your ID at the register. For online purchases, you’ll need to verify your student status on the site.

14. Tommy Hilfiger

Tommy Hilfiger offers students 15% off online or in-store. First, you have to create or log in to your ID.me account.

15. Levi’s

Levi’s offers students 15% off online purchases after you verify your student status on the site.

16. Club Monaco

Students who are Club Monaco fans can get 15% off both online and in-store through Student Beans, a money-saving website and app for college students.

17. Docker’s

Docker’s offers students a generous 25% off all purchases made online. You simply need to verify your student status through the site.

18. H&M

H&M gives students 10% off online orders through UniDAYS.

19. Champion

Champion offers college students 15% off full-price items and 5% off sale items through UniDAYS when shopping online.

Recommended: Guide to Saving Money in College

Restaurants

20. Burger King

You can typically get Burger King deals through Student Beans, such as free any size fries, when you order online and pick up in store.

21. Chick-fil-A

Student discounts vary by location, but many Chick-fil-As offer students deals, such as a free drink with any purchase.

22. Dunkin’

Dunkin’ offers a 10% off student discount at participating locations. To claim the deal, simply show your student ID to your cashier.

23. Arby’s

You can save 10% on your Arby’s meal when you show your student ID at participating locations.

24. Buffalo Wild Wings

Want to catch the game and eat some wings with friends? Students can score 10% off at many Buffalo Wild Wings locations.

25. Waffle House

Looking for a late-night meal? Students can enjoy a 10% discount at participating Waffle Houses.

26. IHOP

If you don’t have a Waffle House nearby, many IHOP locations also offer 10% off for students.

27. Qdoba

Qdoba offers a 10% student discount when you show a valid student ID at participating locations.

28. Taco Bell

Craving a Crunchwrap Supreme? You can get a 10% student discount at participating Taco Bells.

💡 Quick Tip: Need a private student loan to cover your school bills? Because approval for a private student loan is based on creditworthiness, a cosigner may help a student get loan approval and a more competitive rate.

Travel & Transportation

29. Zipcar

New Zipcar University members get their first year free. The student membership allows you to reserve cars by the hour or day, and includes gas, secondary insurance, and up to 180 miles per day. (Other fees, such as a young driver fee, may apply.) 

30. Amtrak

Students between the ages of 17 and 24 can travel by Amtrak train for 15% off when booking at least one day in advance.

31. United Airlines

United Airlines offers a 5% flight discount to MileagePlus® members who are 18 to 23 years old. To get the deal, you need to book through the United app.

32. Hotels.com

Through Student Beans, you can get a 10% student discount at Hotels.com. You’ll get a discount code that you can use at checkout. Better yet, it can be applied on top of on-site promotions.

33. FlixBus

You can get 10% off Flixbus tickets with Student Beans. Simply use your FlixBus student discount code at checkout.

34. Hertz

Hertz offers up to 25% off, and up to 2.0% cash back, for students through ID.me.

35. Budget Truck Rentals

Budget Truck Rentals offers students 20% off local moves and 15% off one-way moves any day of the week. Use the discount code TRUKU.

36. Penske

Penske offers college students a 10% discount on all truck rentals and unlimited miles on one-way moving truck rentals. Simply use the discount code STUDENT at checkout. You’ll need to provide a college ID or proof of enrollment status at pickup to receive the discount.

37. Red Coach

RedCoach offers high school, college, and graduate students 10% off tickets. To get the discount, check the student option at checkout then show your student ID card to the driver along with your ticket.

Recommended: College Move-In Day Tips for Parents

Entertainment

38. AMC

Students get a lower ticket price at select AMC theaters every day. Just bring your photo student ID (and maybe some extra money for popcorn).

39. Cinemark

Student discounts at Cinemark vary by location and time of day, so check with the local box office to see what kind of deal you can snag.

40. Apple Streaming

Apple’s student music subscription is $5.99 per month for up to 48 months (normally $10.99 per month). You also get Apple TV at no extra cost.

41. Hulu

Hulu offers students its ad-supported plan for just $1.99 a month (an 83% discount). If you’re interested in a bundle, check out the deal below.

42. Spotify Bundle

As a student, you can get Spotify Premium Student with Hulu (with ads) free for one month and $5.99/month after that. You can cancel anytime.

43. The Washington Post

The Washington Post has a digital all-access student subscription plan for just $1 every four weeks for one year, then $7 every four weeks after that.

44. Paramount+

As a student, you can get 50% off any Paramount+ Plan. You just need to verify your student status on their website.

45. YouTube Premium

YouTube Premium (which allows you to enjoy YouTube and YouTube Music ad⁠-⁠free) is available to students at a discounted rate of $7.99 a month, after a free one-month trial. You can cancel at any time.

46. The Economist

The Economist offers students an Espresso subscription (which offers quick daily updates on important issues) for free and an annual digital subscription for $62.25, a steep 75% off.

💡 Quick Tip: Even if you don’t think you qualify for financial aid, you should fill out the FAFSA form. Many schools require it for merit-based scholarships, too.

Home Goods

47. Ghost Bed

As a student or teacher, you can get 27% off your entire order at GhostBed. To take advantage of the deal, just click on the ID.me button and then “Student ID” to sign up and get verified.

48. Mattress Firm

After verifying your student status through ID.me, Mattress Firm will give you a single-use coupon code that can be used in-store or online. You get an extra 20% off select purchases or an extra 10% off Purple with the code.

49. Purple

You can also get a 10% discount directly from Purple. Once you verify your eligibility, you’ll be emailed a coupon for 10% off your order.

50. Helix

After verifying your student status at Helix, you’ll receive a one-time 25% discount code to apply during checkout.

51. Puffy

Puffy offers a generous student and educator discount — $1,425 off any Puffy mattress.

52. Brooklyn Bedding

Brooklyn Bedding offers a 5% discount and free shipping to students. You simply need to verify your eligibility through ID.me.

The Takeaway

Student discounts can help you save on everything from food and clothing to electronics and entertainment. Even with these deals, however, you may still need help covering your college expenses.

If you completed the FAFSA and didn’t get enough financial aid to pay all of your school bills, keep in mind that you may be able to get a private student loan to help fill in any gaps. Unlike federal student loans, which have strict application deadlines, you can apply for private student loans at any time — including mid-semester.

Private student loans also allow you to borrow up to 100% of the school-certified cost of attendance. Just keep in mind that private student loans don’t offer the borrower protections — like income-driven repayment plans and deferment or forbearance — that come with federal 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 many times can you use a student discount?

It depends on the company. Some retailers and restaurants allow you to use your student discount once per visit or purchase; others limit you to a certain number of times per month or year.

How much is the average student discount?

Student deals typically give you 10% to 15% off, though you may find some discounts for 50% off or even higher. In some cases, a student discount may come with restrictions, such as only being able to use it on full-price merchandise. So it’s always a good idea to compare your student discount to any other available deals and sales.

Do student discounts only apply to college students?

Typically, student discounts only apply to college and graduate students. In some cases, high school students can get deals if they have an email that ends in .edu. The colleges and programs that retailers recognize can vary, but you can expect most major colleges and universities to be eligible.

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

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

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

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.

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.

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.

SOISL-Q425-020

Jan

2026

A notebook lies open on a desk, next to a credit card, laptop, and phone, to help an investor address a margin call.

Margin Calls: Defined and Explained

By Inyoung Hwang | Growing Wealth, invest, Investing | Comments Off

Margin accounts, which permit qualified investors to trade using borrowed funds, have strict rules about maintaining a minimum amount of cash or securities in the account. The investor could face a margin call if liquid funds drop below that level. In that case, an investor is required to add cash or sell investments to meet the minimum requirement, or the brokerage might do it for them.

Margin trading — which is a form of leverage — is a risky endeavor. Placing bets with borrowed funds may boost gains, but can also amplify losses. Brokers require traders to keep a minimum balance in their margin accounts for this reason.

Margin calls are designed to protect both the brokerage and the client from bigger losses. Here’s a closer look at how margin calls work, as well as how to avoid or cover a margin call.

Table of Contents

What Is a Margin Call?
How Do Margin Calls Work?
Example of Margin Call
Margin Call Formula
2 Steps to Cover a Margin Call
How Long Do I Have to Cover a Margin Call?
Tips on Avoiding Margin Calls
FAQ

Key Points

• A margin call occurs when an investor must deposit cash or sell investments to meet minimum collateral requirements in their margin account.

• Margin trading involves borrowing money from a brokerage firm to enhance trades, but it comes with risks.

• If the equity in a margin account falls below the maintenance margin, a margin call is issued by the brokerage firm.

• Margin calls are designed to protect both the brokerage and the client from bigger losses.

• To cover a margin call, investors can deposit cash or securities into the margin account or sell securities to meet the requirements. If they don’t, the broker may sell securities on their behalf to bring up the account balance.

What Is a Margin Call?

A margin call is when a brokerage firm demands that an investor add cash or equity into their margin account because it has dipped below the required minimum amount. The margin call usually follows a loss in the value of investments bought with borrowed money from a brokerage (known as margin debt).

A house call, sometimes called a maintenance call, is a type of margin call. A brokerage firm will issue the house call when the market value of assets in a trader’s margin account falls below the required maintenance margin — usually 25% of the value of the securities in the account, per Financial Industry Regulatory Authority (FINRA) and New York Stock Exchange (NYSE) rules. This is the minimum amount of equity a trader must hold in their margin account, but a broker may require a higher amount.

If the investor fails to honor the margin call, when trading stocks or other securities, meaning they do not add cash or equity into their account, the brokerage can sell the investor’s assets without notice to cover the shortfall in the account.

A margin account entails a high level of responsibility and potential risk, which is why margin trading is primarily for experienced investors, whether investing online or through a traditional brokerage.

How Do Margin Calls Work?

When the equity in an investor’s margin account falls below the maintenance margin, a brokerage firm will typically issue a margin call. Maintenance margins requirements differ from broker to broker.

Additionally, regulatory bodies like the Federal Reserve and FINRA have rules for account minimums — including the initial margin and the maintenance margin, which are different. These rules exist to limit the risk of loss for investors and brokerages alike.

Regulation T

The Federal Reserve Board’s Regulation T states that the initial margin level should be at least 50% of the purchase price of the securities the investor hopes to trade. For example, a $10,000 trade would require an investor to use $5,000 of their own cash for the transaction.

FINRA

FINRA requires that investors have a maintenance margin level of at least 25% of the market value of all securities in the account after they purchase on margin. For example, in a $10,000 trade, the investor must maintain $2,500 in their margin account. If the investment value dips below $2,500, the investor could be subject to a margin call.

Again, some brokers may impose tighter restrictions on margin accounts. Experienced traders will be sure to note the terms of all margin trades.

Example of Margin Call

Here is how a margin trade works. Suppose an investor wants to buy 200 shares of a stock at $50 each for an investment that totals $10,000. He or she puts up $5,000 in initial margin, while the brokerage firm lends the remaining $5,000.

FINRA rules and the broker then require that the investor hold 25% of the total securities value in his or her account at all times — this is the maintenance margin requirement. So the investor would need to maintain $2,500 in his or her brokerage account. The investor currently achieves this since there’s $5,000 in equity from the initial investment.

If the stock’s value falls to $30 per share, the value of the investment drops to $6,000. The broker is entitled to $5,000 (to repay the margin loan), not including interest or fees, leaving approximately $1,000. That would be below the $1,500 required, or 25% of the total $6,000 value in the account.

That would trigger a margin call of $500, or the difference between the $1,000 left in the account and the $1,500 required to maintain the margin account. Normally, a broker will allow two to five days for the investors to cover the margin call. In addition, the investor would also owe interest and possibly fees on the original loan amount of $5,000.

Increase your buying power with a margin loan from SoFi.

Borrow against your current investments at just 4.75% to 9.50%* and start margin trading.

*For full margin details, see terms.

Margin Call Formula

Here’s how to calculate a margin call:

Margin call amount = (Value of investments multiplied by the percentage margin requirement) minus (Amount of investor equity left in margin account)

Here’s the formula using the hypothetical investor example above:

$500 = ($6000 x 0.25%) – ($1,000)

Investors can also calculate the share price at which he or she would be required to post additional funds.

Margin call price = Initial purchase price times (1– borrowed percentage / 1– margin requirement percentage)

Again, here’s the formula using the hypothetical case above:

$33.33 / share = $50 x (1 – 0.50 / 1 – 0.25)

In other words, the price per share cannot fall below $33.33 or the investor will risk getting a margin call.

2 Steps to Cover a Margin Call

When investors receive a margin call, there are only two options:

1. They can deposit cash into the margin account so that the level of funds is back above the maintenance margin requirement. Investors can also deposit securities that aren’t margined.

2. Investors can also sell the securities that are margined in order to meet requirements.

In a worst case scenario, the broker can sell off securities to cover the debt, without notifying the investor.

How Long Do I Have to Cover a Margin Call?

Brokerage firms are not required to give investors a set amount of time. As mentioned in the example above, a brokerage firm normally gives customers two to five days to meet a margin call. However, the time given to provide additional funds can differ from broker to broker.

In addition, during volatile times in the market, which is also when margin calls are more likely to occur, a broker has the right to sell securities in a customer’s trading account shortly after issuing the margin call. Investors won’t have the right to weigh in on the price at which those securities are sold. This means investors may have to settle their accounts by the next trading day.

Tips on Avoiding Margin Calls

The best way to avoid a margin call is to avoid trading on margin or having a margin account. Trading on margin should be reserved for investors with the time and sophistication to monitor their portfolios properly and take on the risk of substantial losses. Investors who trade on margin can do a few things to avoid a margin call.

• Understand margin trading: Investors can understand how margin trading works and know their broker’s maintenance margin requirements.

• Track the market: Investors can monitor the volatility of the stock, bond, or whatever security they are investing in to ensure their margin account doesn’t dip below the maintenance margin.

• Keep extra cash on hand: Investors can set aside money to fulfill the potential margin call and calculate the lowest security price at which their broker might issue a call.

• Utilize limit orders: Investors can use order types that may help protect them from a margin call, such as a limit order.

The Takeaway

While margin trading allows investors to amplify their purchases in markets, margin calls could result in substantial losses, with the investor paying more than he or she initially invested. Margin calls occur when the level of cash in an investor’s trading account falls below a fixed level required by the brokerage firm.

Investors can then deposit cash or securities to bring the margin account back up to the required value, or they can sell securities in order to raise the cash they need.

If you’re an experienced trader and have the risk tolerance to try out trading on margin, consider enabling a SoFi margin account. With a SoFi margin account, experienced investors can take advantage of more investment opportunities, and potentially increase returns. That said, margin trading is a high-risk endeavor, and using margin loans can amplify losses as well as gains.

Get one of the most competitive margin loan rates with SoFi, from 4.75% to 9.50%*

FAQ

How can you satisfy your margin call in margin trading?

A trader can satisfy a margin call by depositing cash or securities in their account or selling some securities in the margin account to pay down part of the margin loan.

How are fed and house calls different?

A fed call, or a federal call, occurs when an investor’s margin account does not have enough equity to meet the 50% equity retirement outlined in Regulation T. In contrast, a house call happens when an investor’s margin equity dips below the maintenance margin.

How much time do you have to satisfy a margin call?

It depends on the broker. In some circumstances, a broker will demand that a trader satisfy the margin call immediately. The broker will allow two to five days to meet the margin call at other times.

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

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

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

Utilizing a margin loan is generally considered more appropriate for experienced investors as there are additional costs and risks associated. It is possible to lose more than your initial investment when using margin. Please see SoFi.com/wealth/assets/documents/brokerage-margin-disclosure-statement.pdf for detailed disclosure information.

Third Party Trademarks: Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®

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

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

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

SOIN-Q425-022

Jan

2026

A couple sits on the front steps of a pretty bungalow, toasting their home purchase with champagne glasses in hand.

What Credit Score Is Needed to Buy a House?

By Jody McMaster | Credit, Family Finances, Home Ownership, mortgage, personal_loan | No Comments

What’s your number? That’s not a pickup line; it’s the digits a mortgage lender will want to know — your credit score for a mortgage application. Credit scores range from 300 to 850, and for most mortgage-seekers, a good credit score to buy a house is at least 620. The lowest interest rates usually go to borrowers with scores of 740 and above whose finances are in good order, while a score as low as 500 may qualify some buyers for a home loan, but this is less common.

Table of Contents

Why Does a Credit Score Matter?
Do I Have One Credit Score?
What Is the Minimum Credit Score to Buy a House?
Steps to Improve Your Credit Score Before Buying a House
Other Factors Besides Credit Score That Affect Mortgage Approval

Key Points

• A credit score of at least 620 is generally needed to buy a house, but FHA loans may accept scores as low as 500 with a higher down payment.

• Paying attention to credit scores before applying for a mortgage can lead to lower monthly payments.

• A higher credit score can save borrowers money by securing lower interest rates over the loan’s term.

• When two buyers are purchasing a home together, lenders look at both buyers’ credit scores.

• Credit scores are not the only factor; lenders also evaluate employment, income, and bank accounts.

Why Does a Credit Score Matter?

Just as you need a résumé listing your work history to interview for a job, lenders want to see your borrowing history, through credit reports, and a snapshot of your habits, expressed as a score on the credit rating scale, to help predict your ability to repay a debt.

A great credit score vs. a bad credit score can translate to money in your pocket: Even a small reduction in a homebuyer’s mortgage rate can save thousands of dollars over time.

Do I Have One Credit Score?

You have many different credit scores based on information collected by Experian, Transunion, and Equifax, the three main credit bureaus, and calculated using scoring models usually designed by FICO® or a competitor, VantageScore®.

To complicate things, there are often multiple versions of each scoring model available from its developer at any given time, but most credit scores fall within the 300 to 850 range.

Mortgage lenders historically have focused on FICO scores. Here are the categories:

• Exceptional: 800-850

• Very good: 740-799

• Good: 670-739

• Fair: 580-669

• Poor: 300-579

Here’s how FICO weighs the information:

• Payment history: 35%

• Amounts owed: 30%

• Length of credit history: 15%

• New credit: 10%

• Credit mix: 10%

Mortgage lenders will pull an applicant’s credit score from all three credit bureaus. If the scores differ, they will use the middle number when making a decision.

If you’re buying a home with a non-spouse or a marriage partner, each borrower’s credit scores will be pulled. The lender will home in on the middle score for both and use the lower of the final two scores (except for a Fannie Mae loan, when a lender will average the middle credit scores of the applicants).

What Is the Minimum Credit Score to Buy a House?

The median FICO score for homebuyers in late 2025 was a very healthy 735, according to Realtor.com® data. Fortunately, not everyone buying a home will need a score this high to qualify for a home loan. After all, the median credit score in the U.S. is 715. (Using the median versus the average credit score necessary to buy a house helps ensure that unusual buyers with extremely high or low scores don’t throw off the calculations.) How low can you go and still buy a house? The answer hinges on your mortgage.

Credit Score Requirements by Loan Type

What credit score do you need to buy a house? The answer will depend on the type of mortgage loan you’re seeking. If you are trying to acquire a conventional mortgage loan (a loan not insured by a government agency) you’ll likely need a credit score of at least 620. The best credit score to buy a house is 740 or better, because that will help you obtain a lower interest rate. But many buyers purchase a home with a lower score.

With an FHA loan (backed by the Federal Housing Administration), 580 is the minimum credit score to qualify for the 3.5% down payment advantage. Applicants with a score as low as 500 will have to put down 10%.

Lenders like to see a minimum credit score of 620 for a VA loan, though some will go lower, to 600.

A score of at least 640 is usually required for a USDA loan, though borrowers with strong compensating factors, such as a healthy savings, might qualify at 620.

A first-time homebuyer with good credit will likely meet FHA loan requirements, but a conventional mortgage will probably save them money over time. One reason is that an FHA loan requires upfront and ongoing mortgage insurance that lasts for the life of the loan if the down payment is less than 10%.

First-time homebuyers can
prequalify for a SoFi mortgage loan,
with as little as 3% down.

Questions? Call (888)-541-0398.

Steps to Improve Your Credit Score Before Buying a House

Working to build credit over time before applying for a home loan could save a borrower a lot of money in interest. A lower rate will keep monthly payments lower or even provide the ability to pay back the loan faster. Here are some ideas to try:

1. Pay all of your bills on time. “Payment history makes a bigger impact on a person’s credit score than anything else — 35%. So the most important rule of credit is this: Don’t miss payments,” says Brian Walsh, CFP® and Head of Advice & Planning at SoFi.

2. Check your credit reports. Be sure that your credit history doesn’t show a missed payment in error or include a debt that’s not yours. You can get free credit reports from the three main reporting agencies. To dispute a credit report, start by contacting the credit bureau whose report shows the error. The bureau has 30 days to investigate and respond.

3. Pay down debt. Installment loans (student loans and auto loans, for instance) affect your DTI ratio, and revolving debt (think: credit cards and lines of credit) plays a starring role in your credit utilization ratio. Credit utilization falls under FICO’s heavily weighted “amounts owed” category. A general rule of thumb is to keep your credit utilization below 30%.

4. Ask to increase the credit limit on one or all of your credit cards. This may improve your credit utilization ratio by showing that you have lots of available credit that you don’t use.

5. Don’t close credit cards once you’ve paid them off. You might want to keep them open by charging a few items to the cards every month (and paying the balance). If you have two credit cards, each has a credit limit of $5,000, and you have a $2,000 balance on each, you currently have a 40% credit utilization ratio. If you were to pay one of the two cards off and keep it open, your credit utilization would drop to 20%.

6. Add to your credit mix. An additional account may help your credit, especially if it is a kind of credit you don’t currently have. If you have only credit cards, you might consider applying for a personal loan.

How Long It Takes to See Changes in Credit Score

Working on your credit scores may take weeks or longer, but it can be done. Should you find an error in a credit report, you can expect it to take up to a month for your score to change. And if you haven’t been paying bills on time, it could take up to six months of on-time payments to see a significant change.

Other Factors Besides Credit Score That Affect Mortgage Approval

Credit scores aren’t the only factor that lenders consider when reviewing a mortgage application. They will also require information on your employment, income, debts, and bank accounts. Your down payment will be a factor as well. Putting 20% down is desirable since it often means you can avoid paying PMI, private mortgage insurance that covers the lender in case of loan default. But many homebuyers — particularly first-time buyers — put down less than 20% and simply factor PMI into their monthly budget.

Other typical conventional mortgage loan requirements a lender will consider include:

Debt-to-Income Ratio

Your debt-to-income ratio is a percentage: the total of your monthly debts (car payment, student loan payment, alimony, etc) divided by your gross monthly income. Most lenders require a DTI of 43% or lower to qualify for a conforming loan. Jumbo loans may have more strict requirements.

Employment and Income History

A mortgage lender will want to verify your employment and income and may request pay stubs and w-2 statements. Don’t be surprised if the lender also reaches out to your employer to confirm your employment. If you are self-employed, you may be asked for a profit-and-loss statement for your business and for more than a year or two of tax returns. Lenders are looking for borrowers who have a steady income source and can be relied upon to repay a large sum over a long period of time.

Available Savings and Assets

Having cash reserves or investments that you can liquidate in the event that you need to pay your mortgage bill is another factor a prospective lender will consider. So lenders will ask you for information about your accounts, including savings and 401(k) accounts. The lender is also looking to be sure that you have the resources to cover the down payment amount and closing costs related to the home purchase.

A lender facing someone with a lower credit score may increase expectations in other areas like down payment size or income requirements.

If you want to see how all these factors come together in your financial profile to determine what size loan you might be approved for, you can first prequalify for a mortgage with multiple lenders. Ultimately, you may want to seek out mortgage preapproval from at least one lender so you have a very clear picture of your home-buying budget and can move forward swiftly when you find a home you love.

Recommended: 31 Ways to Save for a House

The Takeaway

What credit score is needed to buy a house? The number depends on the lender and type of loan, but most homebuyers will want to aim for a score of 620 or better. A better credit score is not always necessary to buy a house, but it may help in securing a lower interest rate.

Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.

SoFi Mortgages: simple, smart, and so affordable.

FAQ

What credit score is considered good for buying a house?

Generally speaking, you’ll want a credit score of 620 or better if you are looking at a conventional loan or VA loan. A USDA loan would require at least 640 from most borrowers. An FHA loan offers more lenient terms: You could qualify with a score as low as 500, though 580 will allow you to put down a low, 3.5% down payment.

Can I buy a home with a low credit score?

It is possible to get a mortgage and purchase a home with a credit score as low as 500 if you obtain an FHA loan and put down a 10% deposit. If you are looking at a different loan type, then you will likely need at least a 620 score, though if you have a healthy savings and solid income, you may be able to squeak by with a slightly lower credit score.

Do mortgage lenders use FICO or VantageScore?

Mortgage lenders have historically relied on FICO scores but now can use either FICO or VantageScore for loans delivered to Fannie Mae and Freddie Mac, the two entities that buy mortgages from lenders, thereby guaranteeing most of the mortgages in the U.S.

How can I improve my credit score before applying for a mortgage?

The most important thing you can do to help nurture your credit score before applying for a loan is to make your payments in full and on time. Other things, such as requesting credit line increases (but not spending up to the limit) or diversifying your credit mix by adding a personal loan to your credit cards, can help. So can not closing old, unused credit cards. But by far, on-time payments should be your number-one goal.

What other factors do lenders look at besides credit score?

A lender considering a mortgage application will look at your income (both the raw number and how consistent your earnings have been). Your debts, and the ratio of debts to income, will also be important, as will your savings in cash and other assets. Your down payment amount could also factor into a lender’s decision about qualifying you for a loan.

SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.

*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.
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.
^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. ^†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency. Third Party Trademarks: Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®
Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.
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 .

SOHL-Q126-006

Jan

2026

A smiling young woman in a yellow sweater and jeans lies on a gray sofa, typing on a laptop.

How to Recertify Your Income Based Repayment for Student Loans

By Austin Kilham | Debt Payoff, Fresh Out of School, Student Loans, student_loan | Comments Off

If you have federal student loans, you can enroll in an Income-Driven Repayment (IDR) plan, which may make your monthly payments more affordable. That’s because the amount is calculated based on your discretionary income and family size.

Income-Driven Repayment is the umbrella term for several federal repayment programs. (Income-based repayment, on the other hand, refers to one specific IDR plan.) Once you are enrolled in an IDR plan, you will need to recertify annually, by providing updated information about your income and family size — essentially reapplying for the plan. The government uses this information to calculate your payment amount and adjust it if necessary.

You can easily recertify an IDR plan. Read on to find out when to recertify income-driven repayment, how to do it, and upcoming changes to IDR plans you should be aware of.

Table of Contents

What Is Income-Driven Repayment?
How Monthly Payments Are Calculated Under IDR Plans
The New RAP Plan
What Is Student Loan Recertification?
How to Recertify Income-Driven Repayments
When to Recertify Income-Driven Repayment Plans

Key Points

• Income-driven repayment plans require annual recertification to either reconfirm or update information on income and family size to adjust payment amounts if necessary.

• Recertifying ensures monthly student loan payments remain manageable by reflecting current income and family size.

• Failing to recertify by the annual deadline will likely result in higher monthly payments, reverting borrowers to the amount they would pay under the 10-year Standard Repayment Plan.

• Individuals can opt for automatic recertification by providing consent for the Education Department to access their tax information, or they can fill out a form manually.

• Required documents for recertification typically include proof of income, such as recent tax returns or current pay stubs, for verification purposes.

What Is Income-Driven Repayment?

Income-driven repayment currently encompasses three different repayment plans. These plans are available to federal student loan borrowers to help make their payments more manageable. It’s an option to keep in mind when choosing a loan or if your current federal loan payments are high relative to your income. The program is intended to make the amount you pay on your student loan each month more affordable.

Under the “One Big Beautiful Bill” signed into law by President Trump, the options for income-driven plans will be changing over the next few years. Currently, however, the three income-driven repayment programs offered for federal student loans are:

• Pay As You Earn (PAYE) Repayment Plan

• Income-Based Repayment (IBR) Plan

• Income-Contingent Repayment (ICR) Plan

For all of these plans, your monthly payment amount is based on a percentage of your discretionary income and the size of your family.

An income-driven plan also extends your loan term to 20 or 25 years. On the IBR plan, borrowers are eligible to get any remaining balance on their loan forgiven after that time.

Recommended: Guide to Student Loan Forgiveness

Which Federal Loans Are Eligible for an Income-Driven Repayment Plan?

IDR plans are available for the following types of federal loans:

• Direct Subsidized Loans

• Direct Unsubsidized Loans

• Direct PLUS Loans made to graduate or professional students

• Direct Consolidation Loans that did not repay any PLUS loans made to parents

• Subsidized Federal Stafford Loans

• Unsubsidized Federal Stafford Loans

• FFEL PLUS Loans made to graduate or professional students

• FFEL Consolidation Loans that did not repay any PLUS loans made to parents

• Federal Perkins Loans, if these student loans are consolidated.

Private student loans are not eligible for IDR plans. For borrowers who are struggling to make their monthly payments on private loans, one option they may want to consider is student loan refinancing. With refinancing, you replace your old loans with one new loan. Ideally, the refinanced loan has a lower interest rate, which can lower monthly payments and save a borrower money.

Using a student loan refinancing calculator can be helpful to see how much refinancing might save you.

Take control of your student loans.

Ditch student loan debt for good.

How Monthly Payments Are Calculated Under IDR Plans

On an IDR plan, your monthly payment amount is generally based on a percentage of your discretionary income, which is defined by the Education Department as “the difference between your annual income and 150% of the poverty guideline for your family size and state of residence.”

Below is a look at how monthly payments are calculated under each plan. You can also use the office of Federal Student Aid’s Loan Simulator tool to see what your payments would be for each of the plans.

Also, it’s important to be aware that the PAYE and ICR plans are currently available to borrowers, but they are set to close to new enrollments on or after July 1, 2027. Borrowers already on these plans have until July 1, 2028, to switch to the IBR plan or the new Repayment Assistance Plan (RAP).

The IBR Plan

As noted above, while most of the other IDR plans will close in 2027, IBR will remain open to current borrowers.

On Income-Based Repayment, borrowers pay 10% of their discretionary income each month for a 20-year term if they first borrowed after July 1, 2014. (The monthly percentage is 15% with a 25-year repayment term for those who borrowed before that date.)

Any remaining balance owed at the end of the loan term will be forgiven on IBR. Although the PAYE and ICR plans no longer offer loan forgiveness, a borrower can get credit for their PAYE and ICR payments if they switch to IBR.

The PAYE Plan

To be eligible for PAYE, an individual must be a new borrower as of October 1, 2007, and have received a Direct loan disbursement on or after October 1, 2011. In addition, a borrower’s monthly payment on the plan must be less than what it would be on the Standard 10-year plan.

On PAYE, monthly payments are 10% of a borrower’s discretionary income, and the loan term is 20 years.

PAYE is currently open, but it’s closing down on July 1, 2027. Borrowers already on the plan will have until July 1, 2028 to switch to the IBR plan or the new plan, RAP.

The ICR Plan

The income-contingent repayment plan sets a borrower’s payments at 20% of their discretionary income and has a repayment term of 25 years. This is the only income-driven option for borrowers with Parent PLUS loans — and those loans must be consolidated first.

ICR closes to new enrollees on July 1, 2027, and those currently on the plan have until July 1, 2028 to switch to IBR or RAP. Otherwise, they will automatically be moved to RAP.

Recommended: Student Loan Repayment Calculator

Take control of your student loans.
Ditch student loan debt for good.

The New RAP Plan

The RAP program is scheduled to launch in the summer of 2026. Here are details on how the plan works.

How RAP Differs From Other IDR Plans

Unlike the existing IDR plans that use discretionary income, RAP will base a borrower’s payments on their adjusted gross income (AGI). Depending on their income, they’ll pay 1% to 10% of their AGI over a term of up to 30 years.

If they still owe money after 30 years, the rest will be forgiven. The federal government will cover unpaid interest and ensure that the loan’s principal goes down by at least $50 each month.

All borrowers are required to pay at least $10 per month on RAP. This plan may offer lower monthly payments than the current IDR options, but borrowers might also pay more interest over the life of the loan due to the longer repayment term.

Eligibility and Enrollment in the RAP Plan

To be eligible for RAP, you must have Federal Direct Loans, Federal Family Education Loans, or Grad PLUS loans (Parent PLUS borrowers are ineligible for RAP). Qualifying loans may be subsidized or unsubsidized.

As of July 1, 2026, new borrowers can enroll in RAP, if they choose. It will be the only income-driven plan available to them. Existing borrowers will be able to choose RAP or IBR.

Borrowers will enroll in RAP through StudentAid.gov. Details about the application process are not yet available; information is likely to be released closer to the July 1, 2026 launch date. Watch for updates from your loan servicer, and check the Student Aid website.

What Is Student Loan Recertification?

Since your current IDR plan is based on your income and the size of your family, you need to reconfirm or recertify these details every year.

When you apply for or recertify an income-driven repayment plan online, the Education Department will ask you for consent to access your tax information. If you give consent, they will automatically recertify your loan every year.

If you choose to recertify manually, you will need to fill out the online form and upload the requested documentation, or print out a PDF and mail it along with the documentation to your loan servicer.

If your financial situation changes ahead of your recertification date — for instance, if you lose your job — you can reach out to your loan servicer and ask them to immediately recalculate your payments.

Why Recertification Matters

Recertification is important because it ensures that your monthly student loan payments are based on your current income and family size, which may help keep your payments manageable. Also, if you fail to recertify, your payments will likely go up — see details about that below.

How to Recertify Income-Driven Repayments

You can apply for income-driven repayments and recertify your status by going online to StudentAid.gov. Filing your application online ensures that it is sent to each of your loan servicers if you have more than one. Alternatively, you may send paper applications to each of your loan servicers.

Steps for Online and Mail Recertification

To file online, go to StudentAid.gov and log in with your FSA ID. Click on “Manage Your Income-Driven Repayment Plan.”

Verify your family size, marital status, income, and spouse’s income, if applicable. If your income has changed since your last tax return, you can upload more recent pay stubs. You can also give consent for the Education Department to access your tax information, allowing automatic recertification in the future.

To recertify by mail, you can download the Income-Driven Repayment Plan Request form on the Student Aid website. Fill out the form and attach the required documents. You’ll send the request to the address provided by your loan servicer.

What Documents Are Required for Recertification

The documents required for recertification are proof of income, such as your most recent tax return or pay stubs. Unless you have chosen automatic recertification, you will need to manually upload these documents for your loan servicer.

When to Recertify Income-Driven Repayment Plans

Your IDR plan recertification deadline is the date one year after you start or renew an IDR plan. Your loan servicer will send you a notification of your upcoming recertification deadline along with the actions (if any) you need to take; you will also receive notices from StudentAid.gov.

If your income has decreased or your family status has changed, you may want to recertify before your annual deadline. You can fill out a recertification form at any time if you’re struggling to make your payments because your financial situation has changed.

What Happens If You Miss the Recertification Deadline?

If you fail to recertify your IBR plan by the annual deadline, you will remain on your current IDR plan, but your monthly payment will switch to the amount you would pay under the 10-year Standard Repayment Plan, which will likely increase your payments.

You’ll be able to make payments based on your income once again when you recertify and update your income information with your loan servicer.

The Takeaway

Income-Driven Repayment plans, which are available to many federal student loan borrowers, can be a way to help make student loan repayments work with a borrower’s budget. Recertification is a critical step borrowers need to take each year to either verify their information or inform the Education Department of changes to their situation that might affect their payment size.

Refinancing is another option some borrowers may want to consider to help manage their student loan debt, especially those with private student loans that don’t qualify for IDR plans or federal benefits and programs.

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

Can you recertify student loans early?

Federal student loan borrowers who are on an income-driven repayment plan can recertify early, which you may want to do if your family has grown or your income has decreased. Otherwise, you need to recertify your loans once a year.

How do I recertify my student loans?

You can recertify your student loans online at the Federal Student Aid website (studentaid.gov), or by downloading and mailing in the Income-Driven Repayment Plan Request form with any supporting documentation. If you mail in the request, you’ll need to send a copy to each of your loan servicers. You can also opt to have your recertification happen automatically every year by giving consent for the Education Department to access your tax information.

When should I recertify my student loans?

Your recertification date is the date one year after you started or renewed your IDR plan. Your loan servicers will send you a notice in advance that it’s time to recertify your loan. The Student Aid website should also send you notices about recertification.

What documents do I need to recertify my IDR plan?

Unless you’ve opted for automatic recertification, you will need to provide proof of income, such as your most recent tax return or pay stubs, when you recertify your IDR plan. You will need to manually upload these documents for your loan servicer.

What if my income has changed since my last recertification?

If your income has changed since your last recertification, you can submit updated information, along with supporting documents such as pay stubs, so that your payments can be recalculated. You can do this at any time through your account on StudentAid.gov or directly to your loan servicer.

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).

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.

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

SOSLR-Q425-061

Jan

2026

A calendar on a desk, with different dates flagged on it.

How Soon Can You Refinance Student Loans?

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

Typically, student loan borrowers cannot refinance their debt until they graduate or withdraw from school. At that point, federal student loans and the majority of private student loans have a grace period, so it can make sense to refinance right before the grace period ends.

Depending on your financial situation, the goal of refinancing may be to get a lower interest rate and/or have lower monthly payments. Doing so can alleviate some of the stress you may feel when repaying your debt. In this guide, you’ll learn how soon you can refinance student loans, and what options are available, plus the potential benefits and downsides of each.

Table of Contents

What Do Your Current Loans Look Like?
Can You Refinance Student Loans While Still in School?
Which Loans Can Be Refinanced While Enrolled?
Which Loans Can’t Be Refinanced While Enrolled?
Is It Worth Refinancing Only Some of Your Loans?

Key Points

• Most borrowers can refinance after graduation or when they leave school; some lenders allow earlier refinancing with strong financials.

• Refinancing federal loans with a private lender forfeits federal benefits like income-driven repayment and forgiveness.

• It’s possible to refinance only select loans, such as those with high rates or variable interest rates.

• You may refinance with a cosigner if you don’t meet a lender’s eligibility criteria.

• Alternatives include federal loan consolidation, income-driven repayment plans, or interest-only payments while still in school.

What Do Your Current Loans Look Like?

Before deciding whether or not to refinance your student loans, you need to know where your loans currently stand. Look at the loan servicers, loan amounts, interest rates, and terms for all loans before making a decision.

Contact Info for Most Federal Student Loans

The government assigns your federal student loans to a loan servicer after they are paid out. To find your loan servicer, visit your account dashboard on StudentAid.gov, find the “My Loan Servicers” section, and choose “View loan servicer details.” You can also call the Federal Student Aid Information Center at 800-433-3243.

Loans Not Owned by the Education Department

For federal loans that aren’t held by the Education Department, here’s how to get in touch:

• If you have Federal Family Education Loan Program loans that are not held by the government, contact your servicer for details. Look for the most recent communication from the servicer, or check your billing statements for their contact information.

• If you have a Federal Perkins Loan that is not owned by the Education Department, contact the school where you received the loan for details. Your school may be the servicer for your loan.

• If you have Health Education Assistance Loan Program loans and need to find your loan servicer, look for the most recent emails or communication about these loans, or check your billing statements.

Private Student Loans

Private student loans are not given by the government, but rather by banks, credit unions, and online lenders. You’ll need to find your specific lender or servicer in order to find out your loan information. Your lender may also be your loan servicer, but not necessarily. Check your most recent communication, including emails, from the lender for their contact information. If they are not the servicer for your loan, ask them who is.

How to Find Out Who Services Your Loan

As noted above, you can find the servicer for your federal student loans on your account at StudentAid.gov in the “My Loan Servicers” section. For loans not owned by the Education Department (except Perkins Loans), check recent billing statements or communications about the loans for your servicer’s contact information. If you have Perkins Loans, contact your school for information about your servicer.

For private student loans, contact your lender for details. They may also be the servicer of your loan, and even if they aren’t they can tell you who is.

Can You Refinance Student Loans While Still in School?

Although it’s not common, you may be able to refinance your student loans while still in school with certain lenders. However, doing so may not make the most sense for your situation.

When you refinance student loans, you exchange your current loans with a new loan from a private lender, preferably with a lower rate. This rate is based on such factors as current market rates and your credit profile.

Pros and Cons of Refinancing Before Graduation

Some of the advantages of refinancing your student loans while still in school include potentially getting more favorable loan terms, such as a lower interest rate on your loans if you qualify, which could lower your monthly payments.

Refinancing also allows you to consolidate all your loans into one loan, which can make them easier to manage.

However, there are disadvantages to refinancing while still in school. For one thing, it can be difficult to qualify for refinancing without a job and a steady income. You may need a creditworthy cosigner in order to qualify. Not only that, many lenders require borrowers to have a bachelor’s degree to be eligible for refinancing.

It’s also important to be aware that refinancing federal loans makes them ineligible for federal benefits and programs, such as income-driven payment plans and forgiveness.

In addition, once you refinance, you will need to start making loan payments, which may be challenging while you’re still in school.

Which Loans Can Be Refinanced While Enrolled?

You can refinance any type of student loan while enrolled in school, assuming that the lender allows it. If you’re still in school and want to refinance, a lender will typically want to make sure you have a job or job offer on the table, are in or near your last year of school, and have a solid credit profile. As noted above, you could also consider refinancing your student loans with a cosigner if you do not meet the lender’s requirements on your own.

A couple of important points if you are considering refinancing federal student loans with a private lender:

• Doing so means you will forfeit federal benefits and protections, such as forbearance and forgiveness, among others.

• If you refinance for an extended term, you may have a lower monthly payment but pay more interest over the life of the loan. This may or may not suit your financial needs and goals, so consider your options carefully.

Which Loans Can’t Be Refinanced While Enrolled?

If you find a lender willing to refinance your student loans while still in school, they may not exclude certain types of loan. However, it is generally best not to refinance federal student loans while enrolled. Federal Subsidized Loans, for example, do not start earning interest until after the grace period is over. Since you aren’t paying anything in interest, it doesn’t make sense to refinance and have to start paying interest on your loans immediately.

Federal Loans With Active Deferment or Forgiveness Benefits

If you’re in school at least half-time, your federal loans are automatically in deferment, meaning you don’t have to make payments on them. If you refinance your loans, you lose that benefit, and you need to start making payments on your refinanced loans.

Also, if you plan to pursue student loan forgiveness like Public Service Loan Forgiveness after you graduate, refinancing student loans isn’t the best option for you. Refinancing gives you a new private loan with a new private lender, thereby forfeiting your eligibility for forgiveness and other federal benefits and protections.

Is It Worth Refinancing Only Some of Your Loans?

It may be worth refinancing only some of your loans in certain situations. Here are some instances in which you might want to consider this option.

When Partial Refinancing Might Make Sense

The student loans it may make sense to refinance might include:

• Loans that have a variable interest rate (if you’d prefer a fixed rate)

• Loans with a relatively high interest rate, since refinancing may save you money. A student refinance calculator can come in handy when estimating what you might save over the life of the loan.

When you might want to think twice about refinancing:

• If you have federal loans and plan on using an income-driven repayment (IDR) plan, for example, it makes sense not to include those loans in the refinance (see more about IDR payment plans below).

• If you have a low, fixed interest rate currently, you should probably keep those loans as is. The main reason to refinance is to secure a lower interest rate or a lower payment.

Pros and Cons of Refinancing Student Loans

Pros	Cons
• Possibly lower your monthly payment • Possibly lower your interest rate • Shorten or lengthen the loan term • Switch from variable to fixed interest rate, or vice versa • Combine multiple loans into one	• Lose access to federal benefits and protections • Lose access to remaining grace periods • May be difficult to qualify • May end up paying more in interest if you lengthen the term

Pros

Cons

• Possibly lower your monthly payment

• Possibly lower your interest rate

• Shorten or lengthen the loan term

• Switch from variable to fixed interest rate, or vice versa

• Combine multiple loans into one

• Lose access to federal benefits and protections

• Lose access to remaining grace periods

• May be difficult to qualify

• May end up paying more in interest if you lengthen the term

Examples of Refinancing Before Earning a Degree

Some borrowers might want to refinance before earning their bachelor’s degree. Others might choose to wait until they are graduate students.

Case Studies: Undergraduate vs Graduate Borrowers

Undergraduate students may have a challenging time refinancing their student loans without a strong credit profile and a job with a steady income. They might need a cosigner in order to qualify for refinancing.

Graduate students are typically eligible to refinance their undergraduate student loans, assuming they meet the lender’s requirements or use a cosigner. Parents with Parent PLUS Loans are also typically allowed to refinance their loans prior to their child graduating.

Rules will vary by lender, so make sure to do your research and choose a lender that will work with your unique situation.

Alternatives to Refinancing

If refinancing your student loans isn’t the right option for you, there are some alternatives to refinancing you can explore.

Income-Driven Repayment Plans

Income-driven repayment plans for federal student loans base your monthly payments on your discretionary income and family size and extend your loan term to 20 or 25 years. These plans can make your monthly payments more affordable. However, you may pay more interest overall on an IDR plan.

There are currently three IDR plans — the Income-Based Repayment (IBR) Plan, the Pay As You Earn (PAYE) Plan, and the Income-Contingent Repayment (ICR) Plan. On the IBR plan, any remaining balance on your loans is forgiven when your repayment term ends.

Due to the One Big Beautiful Bill, however, changes are coming to IDR plans in July 2027, when most of the plans, except IBR, will no longer accept new enrollees.

Federal Loan Consolidation

Another alternative to refinancing is consolidating student loans. Consolidation combines your federal student loans into one loan with one monthly payment. One of the main differences between consolidation and refinancing is the interest rate on a federal loan consolidation is the weighted average of the rates of the loans you are consolidating, rounded up to the nearest one-eighth of a percentage.

You typically won’t save on interest, but you can lower your monthly payment by extending the loan term. Doing this, however, means you’ll probably pay more in interest over the life of the loan. Consolidating can make your loans easier to manage because you’ll have just one loan payment to make.

Weighing Perks and Interest Rates

Before deciding whether refinancing is right for you, it’s important to consider what you might gain and what you would give up.

Losing Federal Protections vs Lower Monthly Payments

Essentially, you need to consider the cost of losing federal benefits against the perk of potentially securing a lower interest rate through refinancing. Remember,if you refinance your federal student loans with a private lender, those loans will no longer be eligible for federal protections and programs like income-driven repayment plans, federal forbearance, and student loan forgiveness. If you think you might need those programs, refinancing likely doesn’t make sense for you.

But if you can qualify for a lower interest rate, refinancing may be a good fit. Your monthly payments would probably be lower in that case and you also might get a more favorable loan term. Just remember that shortening or elongating your loan term can affect your monthly payment and the total cost over the life of your loan.

For some borrowers, lengthening the term and lowering the monthly payment will be a valuable option, even though it can mean paying more interest over the life of the loan. Only you can decide if this kind of refinancing makes sense for your personal financial situation.

The Takeaway

It’s possible to refinance student loans as soon as you establish a financial foundation or bring a creditworthy cosigner aboard. You can even refinance your student loans while in school, although not all lenders offer this option and it may not make sense for your situation.

It’s also important to understand the implications of refinancing federal student loans with a private lender. If you don’t plan on using federal benefits and protections and you can land a lower interest rate, it might be a move worth considering.

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

FAQ

How soon after taking out a loan can you refinance?

You can refinance a student loan as soon as you meet a lender’s specific eligibility requirements. Many lenders prefer borrowers to have graduated before they refinance and to have a stable job and steady income. However, some lenders do allow students to refinance while they are still in school, though the student may need a creditworthy cosigner in order to qualify.

Can I refinance student loans before graduation?

It’s possible to refinance student loans before graduation, though it can be challenging. While many lenders don’t offer the option to refinance while you’re still in school, there are some that do. Keep in mind that you may need a creditworthy cosigner to qualify for refinancing.

What are the risks of refinancing federal student loans early?

Risks of refinancing federal student loans early include losing access to important federal benefits and programs such as income-driven repayment plans, deferment, and forgiveness. For example, while you’re in school, your federal loans are automatically in deferment, meaning you don’t have to make payments on them. If you refinance your loans, you lose that benefit and need to start making payments on your refinanced loans once they are disbursed.

Can I refinance just some of my student loans?

Yes, you can refinance just some of your student loans. With refinancing, you can pick and choose the specific loans you’d like to refinance. For instance, you could choose to refinance only your private student loans, and keep your federal loans to preserve access to federal benefits and protections. You might also choose to refinance only your student loans with high interest rates. It’s completely up to you.

Will refinancing affect my credit score?

Refinancing requires a hard check of your credit, which typically causes a slight dip in your credit score. However, the drop is generally just a few points and it’s temporary. Making on time loan payments may help build your credit again over time.

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.

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