Jul
17
2025
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Guide To Understanding Layaway Plans

By | Budgeting & Goals, Financial Independence, money | Comments Off on Guide To Understanding Layaway Plans

Layaway may sound like an old-fashioned concept, but it’s still offered by some retailers and can help people afford an item without running up credit card debt.

Layaway allows you to buy an item over time via installment payments. When you’ve paid the full price, you get to take your purchase home. This can be a helpful financing tool in some situations, but also comes with some potential downsides. For example, there may be fees involved, as well as the possibility of forfeiting your payments if you can’t keep up with them. Here are important things to know about layaway.

Key Points

•   Layaway allows customers to make installment payments for items held by retailers, enabling them to afford purchases without using credit cards.

•   The process involves a down payment, followed by regular payments until the item is fully paid off, at which point it can be collected.

•   Advantages of layaway include avoiding debt and interest, while drawbacks may include fees and the risk of forfeiting payments if unable to complete the plan.

•   Many retailers, including Amazon, continue to offer layaway options, particularly for higher-priced items like appliances and jewelry.

•   Alternatives to layaway include buy-now-pay-later plans, credit cards, budgeting adjustments, or saving in advance for purchases without incurring additional fees.

What Is Layaway?

Layaway means you make a deposit and a retailer holds your item (or lays it away) and collects the rest of the money over time. When paid in full, you collect your purchase.

Here’s a bit more detail on how layaway works.

•   The customer chooses an item that’s eligible for layaway and makes whatever down payment the store requires to implement a layaway plan. (This amount varies based on the retailer, and may or may not include a service fee.)

•   The customer then makes regular payments over time based on the retailer’s schedule. These payments may be made weekly, biweekly, or monthly. Online layaway plans often let customers buy items according to scheduled deductions from their checking account.

•   At the end of the layaway plan period, when the item has been paid for in full, the customer takes their purchase home or receives it in the mail.

One additional point about how layaway works: If the customer makes late payments or cancels the layaway plan entirely, they may be charged a restocking or cancellation fee. They may also forfeit some or all of the money they’ve put toward the purchase already.

Why Use a Layaway Plan?

From the store’s perspective, layaway offers a low-risk way to make sales to those who might not otherwise be able to afford the purchase all at once.

Although the retailer might choose to charge a small fee to cover the item’s being tied up for the length of the layaway, if worse comes to worse and the buyer defaults, they can simply put the item back up on the shelf for sale.

From a buyer’s perspective, the attractiveness of layaway is even more obvious: It allows those who might not otherwise have the financial leverage to make large purchases affordably, over time.

Layaway is unique among financing options in that it often doesn’t involve interest, which means it can often be a more affordable choice than other types of credit or loans.

Recommended: How to Make Money Fast

Pros and Cons of Layaway

Like any financial approach or product, there are both benefits and drawbacks to layaway plans.

Pros of Layaway

•   You don’t have to go into debt to make a purchase you would otherwise not be able to afford. Using layaway can help you avoid charging an item on your credit card, which typically incurs high interest rates.

•   Layaway plans don’t require a credit check — which also means that your credit won’t be affected if you can’t pay the plan on time or in full.

•   Fees associated with layaway plans are generally low and often don’t include interest.

Cons of Layaway

•   Although they’re generally low, layaway plans often do come with associated fees, such as service, restocking, and cancellation fees. These are typically flat fees, however, which could make them proportionately high if you’re purchasing a relatively inexpensive item.

•   If you make late payments or fail to pay in full, you might forfeit some or all of the money you’ve already put toward the purchase (though this varies by vendor, so check with the individual retailer you’re considering for full details).

•   Repayment terms can be inflexible and it’s up to the vendor to set the repayment schedule.

•   Layaway takes time and patience; it’s an example of delayed gratification. It may be less attractive to those who want or need to take home the purchase immediately rather than waiting until it’s been paid in full.

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Stores That Offer Layaway Plans

Layaway was originally offered back in the 1930s as a result of the Great Depression, then began fading away when using credit cards became more common later in the 20th century. However, the popularity of layaway surged again during the Great Recession of 2007-2009.

The history of recessions tells us they do happen over the years, and the popularity of layaway surged again during the Great Recession of 2007-2009.

These days, many retailers still offer both in-store and online layaway, either for the holidays or year-round.

In some cases, you may only be able to implement layaway on certain products — generally more expensive ones, like appliances and jewelry.

Layaway programs come and go, but retailers that currently offer layaway include the following:

•   Amazon

•   Burlington Coat Factory

•   Army & Air Force Exchange Service

•   Buckle

•   Gabe’s

•   Hallmark Gold Crown

If you’re unsure whether or not a retailer offers layaway, you can always ask!

4 Alternatives to Layaway

Here are some other ways customers can get their hands on items they might not be able to buy in a single purchase.

1. Similar Pay-Over-Time Plans

Some retailers, especially for online purchases, offer buy-now-pay-later or pay-over-time programs that are similar to layaway — rather than paying the full price today, you pay small installments over time.

On the plus side, customers can often receive their purchases before the payment plan has been completed.

However, some of these programs, like Affirm (a payment option available at checkout at many online retailers), can involve interest charges, particularly if borrowers are late on their payments or don’t complete the repayment plan in full.

2. Credit Cards

Credit cards are an obvious alternative to layaway plans — and using them, of course, means that the purchase can be taken home right away.

In fact, credit cards are sort of like the opposite of layaway: With layaway, you pay for an item and then receive it; with credit cards, you receive it now and pay for it later.

Of course, using credit cards almost always involves compounding interest charges, often close to 20%, which is nothing to sneeze at.

Since it’s easy to carry a revolving balance while making minimum monthly payments, credit cards can quickly lead to a credit card debt spiral that can be difficult to climb out of.

3. Reconfiguring Your Budget

If being unable to make large purchases is more of a systemic problem than a one-time issue, some budget management may be in order.

You might start by looking at how much money is coming in versus going out, then try to find places where you can cut back on spending. This can help free up funds that you can use to pay for purchases you really need or want in full without requiring layaway.

Recommended: How to Make a Budget in 5 Steps

4. Saving Up for a Purchase

Another option to layaway is to save up in advance until you have enough cash to go ahead and buy the item outright. Let’s say you want to buy a new laptop. You might automate your savings and have $25 transferred from checking on payday to a savings account (ideally, a high-yield savings account). Over time, the savings will build up and interest will accrue.

When you reach the amount needed, ta-da! You can go purchase your new laptop, without paying any interest or other fees related to buying it over time.

The Takeaway

Layaway is a purchasing method where you reserve an item by making a deposit and then pay the remaining balance over time before taking the item home. While this approach can cost less than putting the purchase on your credit card, it’s not necessarily cost-free. Layaway plans often involve various fees, such as service fees, restocking fees, or cancellation fees.

If you’d like to start saving for a purchase, it can be wise to find a bank account that offers low or no fees and a solid interest rate to help your money grow faster.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with 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.


Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy up to 3.80% APY on SoFi Checking and Savings.

FAQ

How does a layaway plan work?

A layaway plan lets you reserve an item by making a small down payment and then paying the remaining balance over time. The store holds the items until it’s fully paid off, at which point you can take it home. Layaway is often interest-free, but some retailers may charge service or cancellation fees. It can be a helpful option for budgeting larger purchases without using credit or paying all at once.

Is it a good idea to buy things on layaway?

Buying on layaway can be a smart choice if you want to avoid credit card interest or don’t qualify for financing. It can help with budgeting by breaking up large purchases into management payments. However, layaway may not be ideal if the store charges high service or cancellation fees. Also, you don’t receive the item until it’s fully paid off, which could be a downside for urgent needs.

What is the difference between an installment plan and a layaway plan?

The key difference lies in ownership. With an installment plan, you typically take the item home immediately and make payments over time, often with interest. With a layaway plan, the store holds the item until you finish paying, and you usually don’t pay interest. Installment plans often involve credit checks, while layaway does not. Each suits different needs: Installment plans provide quicker access, while layaway allow for more controlled, no-credit spending.

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Jul
17
2025
Is Getting A Degree In Marketing Worth It_780x440

Is Getting a Degree in Marketing Worth It?

By | Student Loans, student_loan | Comments Off on Is Getting a Degree in Marketing Worth It?

When you’re in college, you likely want to choose a major that will lead to a successful and enjoyable career. If you’re a business marketing major, you may wonder whether the education you’re getting now will pay off in terms of the type of job you’ll qualify for after you graduate, and what you can earn.

Here’s a look at what you can expect as a marketing major — both during college and after you graduate.

Key Points

•   The job market for marketing professionals is robust, with a growing need for specialists in digital marketing, social media, and data analytics.

•   A marketing degree offers diverse career opportunities, including roles in advertising, brand management, market research, and public relations.

•   Marketing professionals often enjoy competitive salaries, especially as they gain experience and move into senior positions.

•   The degree equips students with essential skills in communication, critical thinking, and data analysis, which are valuable in many industries.

•   The marketing field is constantly evolving, and a degree helps graduates stay adaptable and relevant, preparing them for future trends and technologies.

What Does a Marketing Major Learn?

As a marketing major, you will learn various aspects and strategies for promoting a company or product, creating brand awareness, and building relationships with customers.

You may study marketing tools like social media, content marketing, and advertising, as well as public relations, sales, marketing strategy, and consumer behavior.

Once you complete your degree, you should have a thorough understanding of how to employ these tools and tactics in the real world on behalf of your employer.


💡 Quick Tip: You can fund your education with a low-rate, no-fee private student loan that covers all school-certified costs.

Who Is It Good For?

If you’re still trying to determine the best college major and are considering marketing, here’s some insight into the type of person who might thrive in a marketing career.

If you’re curious about how brands connect with customers and find yourself analyzing ads in magazines and on television, you might be a natural marketer. Marketers are typically creative and good communicators; you’ll need that ingenuity to come up with innovative marketing campaigns to compete with others in a given industry.

Depending on the job you get after college, you may work with a team on campaigns, or you may be solely in charge of doing multiple different tasks on your own. Ideally, you’ll be excited and confident about sharing your ideas for projects.

If you’ve got an analytical mind, so much the better. You’ll be able to analyze data to better understand what types of marketing efforts are working to reach your audience and which aren’t.

Recommended: 20 of the Most Popular College Majors

Why Consider Marketing?

Marketing isn’t a trendy or even industry-specific career; it’s one that every brand on earth needs. As a result, there will likely always be careers in marketing. Because marketing is what propels a company to sell products or services, it has a return on investment, and that means that companies are willing to also invest in smart marketing professionals.

Everywhere you look, there’s marketing, from the product placement in your favorite television show to the daily Instagram posts from influencers that offer “sponsored content.” Being a part of this exciting field gives you the opportunity to shape how consumers connect with brands.

What Jobs Can a Marketing Major Get?

So you’ve majored in marketing and now you want to know your career options. What does a marketing major do after graduating? And what professional goals can you set down the road, once you’ve had more experience?

Entry-Level Marketing Jobs

Depending on your specific interest in marketing, there are several paths you could take after graduation.

If you enjoy working with advertising, you could get work as a media buyer, who is in charge of purchasing ads, both digital and print, to achieve marketing goals. Median salary for a media buyer is $69,077.

If you enjoy dabbling in different aspects of marketing, you could be a marketing coordinator. You might be a part of planning and launching marketing campaigns and events, managing email marketing, and writing content for different platforms. The median annual salary is $55,463.

If you lit up in your public relations coursework, a public relations assistant might be a good first job. You’ll be tasked with creating press releases and pitch letters, and connecting with the media to get interviews and media coverage for your brand. Salaries vary, but the median is around $52,266 a year.

Recommended: 25 Highest Paying Jobs in the US

Marketing Jobs for More Experienced Professionals

Once you have a bit of experience in your entry-level marketing job, you may be eligible for a promotion or could qualify for a more advanced role with a different company like the following ones.

A public relations manager has approximately six to eight years of experience working in PR. In addition to building relationships with journalists and influencers and securing media coverage for a brand, this role may also hire and manage other PR roles as well as writers and designers. The median salary for this role is around $75,042.

A marketing director could be a good goal after you build experience as a marketing coordinator and have five to 10 years of marketing experience. This role is involved in the planning of marketing activities, building a budget, and forecasting sales. You may oversee a marketing team, including internal staff and freelancers. The median salary for this position is approximately $112,676, but can vary widely.

Another option once you have one to five years of experience, specifically in sales, is as a sales manager. This role analyzes sales data to shape sales and pricing strategy and may train or manage sales staff. The median salary for a sales manager is $138,060.

Launching Your Own Marketing Business

You’re not limited to working for someone else in your marketing career; many professionals get experience under their belt by working for companies of all sizes, then decide to open their own business. That could be a one-person content marketing business run out of your home or a PR firm with office space and staff.

Starting your own business gives you the flexibility of working when you want, and to choose exactly the marketing, advertising, or PR services you want to specialize in. It does, however, require plenty of hard work and dedication, and without the stability of a regular paycheck, you aren’t guaranteed to make a certain amount of money.

What Can a Marketing Major Earn?

Understandably, you want some reassurance that what you’ll make in your career after graduating will help you quickly pay off any student debt and help you become financially successful.

Generally, students can expect to make the least right after graduating, since they’ll have little to no work experience. Salary expectations for entry-level marketing positions can vary based on factors like where you live and the industry you want to work in. Some companies may offer hiring bonuses or commission on top of that salary.

As you build experience, your salary will generally increase. Again, this will depend on your specific experience and accomplishments as well as the industry and company you work for.


💡 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. You can submit it as early as Oct. 1.

The Takeaway

Only you can determine whether marketing is a field where you’ll thrive and enjoy working. However, if you’re willing to put in the effort, the industry offers opportunities to learn a wide range of skills and advance your career.

Of course, as a student, you’re still a long way from earning a sizable salary, and coming up with enough funds to cover the high cost of college can be challenging. Fortunately, no matter what you’re thinking about majoring in, you have a range of funding options, including grants, scholarships, federal work-study programs, and both federal 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

Can you be successful with a marketing degree?

Absolutely, a marketing degree can lead to successful careers in advertising, brand management, market research, and digital marketing, providing valuable skills in communication, analytics, and strategy.

Is a marketing degree difficult?

A marketing degree can be challenging, requiring strong skills in communication, analytics, and creativity. It involves rigorous coursework and practical projects, but it’s manageable with dedication and effort.

Will a marketing degree get you a job?

A marketing degree can significantly enhance your job prospects, opening doors to various roles in advertising, brand management, market research, and digital marketing. It provides valuable skills that are in high demand.

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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.

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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.


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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Jul
11
2025
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5 Smart Steps to Get Out of a Timeshare

By | Financial Independence, Life & Career, money | Comments Off on 5 Smart Steps to Get Out of a Timeshare

Timeshares may be a fun vacation option for a while, but sometimes people want to end the arrangement. Those time share contracts, however, can seem pretty ironclad.

Whether you want out due to buyer’s remorse, a shift in your financial situation or health, or any other reason, here’s some good news: You’re not necessarily stuck.

If you change your mind soon after the purchase, for instance, you might be able to opt out during the “rescission period.” Those who have had their timeshare for years may also have options, including having the resort take it back or perhaps reselling it.

There are also what are known as “exit” companies that help timeshare owners get released from their agreements (though it’s important to vet those companies before signing an agreement).

If you’re ready to say goodbye to your vacation place, read on to learn steps for legally getting out of a timeshare contract.

Key Points

  • The rescission period allows buyers to cancel a timeshare contract and receive a full refund within a few days to two weeks of signing.
  • You may be able to terminate a timeshare contract through a “deed-back” or “surrender” program offered by the resort.
  • Timeshare owners should ensure all fees are current and the timeshare is fully paid before attempting to terminate the contract.
  • It may be possible to resell your timeshare independently via resale marketplaces or through a specialized broker (just be sure to verify credentials).
  • Hiring a reputable timeshare exit company can be costly and requires verifying the company’s reputation.

5 Steps to Escaping a Timeshare

If you’re thinking about getting out of a timeshare or know you’re ready to make a change, here are five options to consider.

1. Checking the Rescission Period

If your second thoughts occur within several days of your purchase, you may be able to rescind the transaction if you’re still within the “rescission period.” If you are, you should be able to get your money back and go on your merry way.

Keep in mind, however, that the rules vary from one state to the next. Depending on where the timeshare is located, rescission periods can be anywhere from three days (the minimum required by the Federal Trade Commission) to two weeks.

In some cases, the rescission period may kick in as soon as you buy the timeshare. In others, it might start when you receive the public offering statement that includes general information about the timeshare.

For a timeshare on an exotic isle somewhere outside the U.S., you’ll need to find out what the laws are there.

If you’re eligible for rescission, you’ll want to follow the instructions in the documents you received when you purchased your timeshare. Most likely you’ll need to send the resort a letter telling them you want out via rescission for a full refund. It’s a good idea to send this letter using certified or registered mail.

💡 Quick Tip: Typically, checking accounts don’t earn interest. However, some accounts do, and online banks are more likely than brick-and-mortar banks to offer you the best rates.

2. Contacting the Timeshare Resort

If rescission isn’t possible because too much time has passed, another option you may be able to take advantage of is a “deed back” program. Also known as “take-back” and “surrender” programs, these programs allow distressed owners to transfer the deed for their timeshare back to the resort developer or management company, effectively ending their ownership and associated obligations.

To find out if your developer offers this type of program, you may want to contact them directly and ask to speak with someone who handles “deed-backs” or “surrenders.” You can also check online resources like ResponsibleExit.com for information about return programs.

Generally, developers will only go for this if the timeshare is fully paid for, and you’re up to date on your maintenance fees. Some developers that accept returns may require owners to pay annual fees for a year or two while the resort finds another buyer. In some cases, you may have to prove financial or medical hardship in order to qualify for a take-back program.

Even if your resort doesn’t have an official take-back program, you have nothing to lose by asking. Who knows; they might go for it.

Recommended: 39 Passive Income Ideas to Build Wealth in 2025

3. Reselling The Timeshare Yourself

If you’re considering reselling your timeshare, it’s probably best if you don’t go into it with hopes of making a killing. There are typically many people looking to unload their timeshares and demand isn’t generally high, unless your property is in a hot destination. As a result, reselling can often be a losing proposition.

The best approach might be to think of reselling as someone taking the timeshare off your hands and becoming responsible for the fees moving forward, rather than making a profit.

You can list your timeshare on a general resale marketplace site, such as eBay and Craigslist. There are also sites just for timeshares, such as TUG (the website for the Timeshare Users Group) and RedWeek.

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4. Reselling the Timeshare Through a Broker

If you opt to resell your timeshare, another option is to hire a real estate broker or agent who specializes in reselling timeshares.

If you choose this route, however, you’ll want to pick your broker carefully, cautions the . Some real estate brokers and agents who specialize in reselling timeshares may falsely claim the market in your area is hot and that they’re overwhelmed with buyer requests. They may even tell you that they already have buyers ready to purchase your timeshare, or promise to sell your timeshare within a specific time. It’s wise to be skeptical of all such claims, says the FTC, and also to vet the reseller before agreeing to anything on the phone or in writing.

A good safeguard is to contact the state Attorney General and local consumer protection agencies in the state where the reseller is located, and ask if any complaints are on file. You also can search online for complaints.

You may also want to ask the reselling agency if their agents are licensed to sell real estate where your timeshare is located. If they say they are, you may want to verify it with the state’s Real Estate Commission.

Other questions you may want to ask before hiring a reselling agent:

  • How do you plan to advertise and promote the timeshare unit?
  • Will I get progress reports and, if so, how often?
  • What fees do you charge, and when do they have to be paid?

It’s generally preferable to do business with a reseller that takes its fee (or commission) only after the timeshare is sold. If you must pay a fee in advance, however, it’s wise to ask about refunds, and to get all refund policies and promises in writing.

Recommended: How to Manage Your Money Better

5. Hiring a Timeshare Exit Company

The concept is good. With a timeshare exit company you often get a small army to handle your business. A good one knows the inner workings of the timeshare industry, which could be advantageous to you. One major caveat is that these services generally don’t come cheap — prices vary considerably, but can be upwards of $5,000.[1]

It’s also important to be aware that there are many bad apples out there. There have been numerous lawsuits against timeshare exit companies that backed out of their payment agreements with customers.

To help ensure that an exit company you’re thinking about hiring is reputable, you may want to check with the Better Business Bureau, and also search online, to see if there have been complaints about the company and (most importantly) how they have handled those complaints.

You can also protect yourself by refusing to make any payments before a contract has been signed by both parties.

Recommended: 5 Reasons to Switch Banks

The Takeaway

Unloading a timeshare property isn’t always easy, but some of your exit options include: backing out during the “rescission period,” reselling it yourself, hiring a broker to resell it for you, and hiring a timeshare exit company to take care of the whole separation process.

It’s important to understand all of your options (and the potential pitfalls of each) in order to choose the best solution for your situation.

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Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy up to 3.80% APY on SoFi Checking and Savings.

Article Sources
  1. Fidelity Real Estate. Timeshare Exit Company: Is it Worth the Cost?.

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Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning 3.80% APY, we encourage you to check your APY Details page the day after your Eligible Direct Deposit arrives. If your APY is not showing as 3.80%, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning 3.80% APY from the date you contact SoFi for the rest of the current 30-day Evaluation Period. You will also be eligible for 3.80% APY on future Eligible Direct Deposits, as long as SoFi Bank can validate them.

Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi members with Eligible Direct Deposit are eligible for other SoFi Plus benefits.

As an alternative to Direct Deposit, SoFi members with Qualifying Deposits can earn 3.80% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant. SoFi members with Qualifying Deposits are not eligible for other SoFi Plus benefits.

SoFi Bank shall, in its sole discretion, assess each account holder’s Eligible Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving an Eligible Direct Deposit or receipt of $5,000 in Qualifying Deposits to your account, you will begin earning 3.80% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Eligible Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.

SoFi Bank reserves the right to grant a grace period to account holders following a change in Eligible Direct Deposit activity or Qualifying Deposits activity before adjusting rates. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Eligible Direct Deposit activity or $5,000 in Qualifying Deposits during the current 30-day Evaluation Period and, if applicable, the grace period, then you will begin earning the rates earned by account holders without either Eligible Direct Deposit or Qualifying Deposits until SoFi Bank recognizes Eligible Direct Deposit activity or receives $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Eligible Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Eligible Direct Deposit.

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Members without either Eligible Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, or who do not enroll in SoFi Plus by paying the SoFi Plus Subscription Fee every 30 days, will earn 1.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances.

Interest rates are variable and subject to change at any time. These rates are current as of 1/24/25. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.
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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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Jul
11
2025
College Essentials What to Bring to College_780x440

College Essentials: What to Bring to College

By | Student Loans, student_loan | Comments Off on College Essentials: What to Bring to College

Heading off to college is hands down one of the most thrilling times in a young person’s life. It’s the chance to get to know yourself and your passions, close the childhood chapter of your life, and prepare for the future ahead.

But, before you can do all that, you’re going to need to pack.

Not quite sure what to bring and what to leave behind? Don’t worry, we’re here to help with a college packing list that covers all the essentials from dorm room needs to toiletries and beyond.

Key Points

•   Bring a reliable laptop, a power strip, and necessary chargers for staying connected and productive.

•   Pack comfortable bedding, a pillow, and a set of towels for your dorm room.

•   Include basic toiletries and a first-aid kit to handle minor health issues.

•   Kitchen supplies are a must for when you don’t have time to grab something at the cafeteria. Make sure to bring a coffee pot, mini fridge, and dishes.

•   You can pay for college essentials with cash savings or financial aid. As a last resort, you can take out a private student loan to help cover necessary expenses.

What to Pack for Campus Life

Hang on — before we dive into this list, we need to discuss the all-important first step every student should take in their college essential checklist planning, and that’s to reach out to your new roommate.

Once you know who that is going to be, it’s a good idea to reach out and get a feel for their likes and dislikes, how you can work together on a decor theme for the room, and if you can split the cost for shared goods, like microwaves, mini-fridges, or any other items you may share along the way.

Once you know what your roommate is responsible for you can get on your way to make your own checklist.

Shower and Toiletry Needs

Packing up for college means compartmentalizing everything in your daily life. And, for most people, their days begin with a shower. Here are a few of the items needed to set students up for a hygienic semester ahead.

Shower caddy: This is a very important base. Because students will likely be sharing communal showers, they will need to cart their goods back and forth to the bathroom, so a sturdy caddy is key.

Bathrobe: On a related note, you’ll be traversing back and from the bathroom for showers. A bathrobe makes it easy to cover up.

Washcloths and towels: This isn’t an item students will want to share. Purchase a few matching sets in a unique color so students always know which color is theirs.

Flip-flops: Again, students will likely be sharing communal showers with many other students. Avoid any potential foot fungus with a simple pair of flip-flops.

Toiletries (Shampoo, Soap etc): Keep it clean from head to toe with shampoo and conditioner. For an added bonus, try a shampoo bar, which will dissipate when it’s done, leaving no plastic bottle pollution behind. Pick up your favorite scent before heading off to college so every time you open the bottle you are reminded of the sweet smell of home.

Toothbrush and toothpaste: It’s easy to pick up a simple toothbrush at any pharmacy, but students could also level-up with an electric brush, or even go for a subscription-based brush so they never have to remember when to replace the brush heads.

Deodorant: Students will be living in close proximity to one another, making it important to stay on top of hygiene and smelling nice. Look for a signature deodorant scent before leaving home.


💡 Quick Tip: SoFi offers low fixed- or variable-interest rates, so you can get a private student loan that fits your budget.

School and Office Supplies

While decorating a dorm room is fun, remember that the whole reason you’re there is to study. That being said, don’t forget these necessary school supplies to make your study life easier.

Headphones: Yes, headphones can be used for entertainment, but they can also be a valuable tool in a student’s office supply area too. That’s because, again, you will be sharing a small space with another person, so finding peace and quiet may be difficult for study and work time. But, it’s nothing a good pair of noise-canceling headphones can’t fix.

Memory cards or USB flash drives: Students will likely need to transport data files from home to printer, to class, or delivered straight to a professor. Have a few of these handy just in case.

Laptop: Though a typically expensive item, a laptop is critical for a college or university education. It’s how students can get their work done in the dorms, in class, or anywhere in between without having to head to the library for free computer use every time they need the internet. Some schools may have recommendations for laptops based on programs and the requirements for processing power or software.

School Supplies: Sure, the high-tech stuff above is great, but make sure to kick it old school too and purchase a few pens, pencils, highlighters, index cards, and notebooks so you can jot down notes, ideas, and more whenever you need to or if your computer runs out of battery.

Thinking about your current study habits can be a good place to start when evaluating what school supplies you’ll need as you head off to university. Don’t forget textbooks!

Surge protector and extension cords: Because there will likely be multiple students using up all the plugs in a dorm room, it’s a good idea to purchase a surge protector and a few extension cords to protect the electricity from overload.

Recommended: College Freshman Checklist for the Upcoming School Year

Kitchen Supplies

While you may have a meal plan or eat most of your meals out, having a few kitchen supplies can come in handy for when you don’t feel like cafeteria food or don’t have time to run out and grab something.

Microwave: A microwave can be a college student’s culinary best friend. Find a sturdy one that can handle reheating food and drinks, or even cook up entire meals.

Mini-fridge: Another college kitchen staple is the mini-fridge. Make sure it’s big enough for two roommates and all their in-room dining needs.

Dishes: College students need something to eat off of. Pack up a small collection of plates, cups, bowls, and cutlery before move-in day.

Food containers: Save any leftover goodies with some plastic food storage containers. Keep it simple with a few stackable options.

Coffee maker: College kids deserve to have coffee on tap, but the next best thing is remembering to pack a good coffee maker. Prefer tea? An electric kettle may be your new best friend. Review school policies on having electric appliances in a dorm room.

Room Needs

When packing for college, you’ll want to remember the dorm room essentials to make sure you’re comfortable and cozy while away at school.

Under-bed storage: College dorms can be tight. The average dorm room clocks in at just 180-square feet. With under-bed storage, you’ll be able to bring more items from home without taking up additional space.

Pillows: Take a few pillows to college — a few functional pillows for sleep and another couple of throw pillows for added flare.

Linens: Students should check with their college or university for their dorm room bed sizing, but odds are it’s a twin or twin XL. Get two sheet sets so students have one to wash and one to make the bed at all times.

Mattress pad: Dorm room beds aren’t exactly known for being the most comfortable things on earth. But, an easy way to upgrade student bedding is to purchase a mattress pad or feather bed.

Recommended: College Planning for High School Students

Cleaning Supplies

Going to college means students will now have to fend for themselves, and that goes for household chores too. Here are a few items all students need to get the job done right.

Laundry detergent: Find a favorite scent and stick with it. A good idea may be to find a detergent that works for both colors and whites to eliminate the need for multiple detergents.

Vacuum: Keeping a dorm room tidy is easy with a small vacuum. Even a dust buster will do.

Paper towels: Stock up on paper towels to clean up any accidents or to double as napkins when needed.

Wipes: Keep cleaning simple by purchasing a few canisters of wet wipes and use them regularly to disinfect surfaces.

Recommended: Using Student Loans for Living Expenses and Housing

Preparing to Pay for It All

Looking at this list, it’s clear that getting everything on your college packing list can get expensive. But, rather than stress about if you can afford cleaning supplies, linens, and office supplies, students can financially plan for what’s ahead by looking into all their college funding options, which may include savings, grants, scholarships, work-study, and federal subsidized and unsubsidized loans.

If you still have funding gaps, you may also want to consider applying for a private student loan. These are available from banks, credit unions, and online lenders. Students who have good credit (or cosigners who do) typically qualify for the best rates and terms. Just keep in mind that private student loans don’t offer the same protections, such as government-sponsored forgiveness programs, that come with federal loans.


💡 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 lower rate.

The Takeaway

Getting ready for college requires a lot of planning, packing, and organizing. To create your ultimate packing essentials list, think about your current day to day routine — what items do you use the most frequently?

It can be helpful to break the items on your packing list up into categories like school supplies, bedroom, kitchen, and bathroom so that you can compartmentalize and review smaller pieces at a time. With all your essentials in hand, you can shift your focus to choosing the right major or finding ways to pay for college.

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 should you bring to a college visit?

For a college visit, bring a notebook and pen, comfortable walking shoes, a camera or smartphone for photos, a list of questions, and a map of the campus. Dress appropriately for the weather and wear something you feel confident in.

What should I get for a college dorm?

For a college dorm, get a comfortable pillow, a set of sheets, a desk lamp, a power strip, a mini fridge, a microwave, a laundry basket, a shower caddy, and some storage bins. Add a few personal items to make it feel like home.

What are the essentials to bring to college?

Essentials for college include a laptop, textbooks, comfortable bedding, a mini fridge, a microwave, toiletries, a first-aid kit, a planner, and comfortable clothing. Don’t forget a few sentimental items for a touch of home.


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).

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


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.

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

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Jul
10
2025
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What Is a Direct PLUS Loan?

By | Debt Payoff, Student Loans | No Comments

A Direct PLUS Loan is a type of unsubsidized federal student loan for graduate students or parents of a dependent undergraduate student.

Direct PLUS Loans can help pay for education costs that aren’t covered by other types of financial aid. Because they have higher interest rates than other types of federal loans, it’s generally recommended that a student exhaust all of their other Direct Loan options before considering a Direct PLUS Loan.

As you plan how to pay for your education, here’s what to know about Direct PLUS Loans to decide if this option is right for you.

Key Points

•   Direct PLUS Loans are federal loans for graduate students and parents of dependent undergraduates.

•   Borrowing limits for Direct PLUS Loans are the cost of attendance minus other financial aid.

•   Direct PLUS Loans have some of the highest interest rates — 7.94% for graduate and professional students and 8.94% for parents for 2025-26.

•   Loan fees of 4.228% are deducted from each disbursement of Direct PLUS Loans.

•   Consider other federal aid options first due to the higher interest rates and fees with Direct PLUS Loans.

What Is a Federal Direct PLUS Loan?

After pursuing financial aid options that don’t need to be paid back (such as grants, scholarships, and work-study programs), many students take out federal student loans to help pay for the cost of school.

There are several types of federal student loans from the William D. Ford Federal Direct Loan Program. Direct Loans can be subsidized for undergraduate students with financial need — meaning that the federal government will pay the loan interest while a student is in school at least half-time and during a grace period after graduating or during a period of deferment.

Direct Loans can also be unsubsidized for both undergraduate and graduate students. With a Direct Unsubsidized Loan, the borrower is responsible for all of the interest that accumulates on the loan. These loans are not dependent on financial need, but there is a cap on the amount a student can borrow.

So what is a Direct PLUS Loan? Direct PLUS Loans can be made to graduate students or parents of dependent undergraduate students to help meet the remaining costs of school.

Types of Federal PLUS Loans

As mentioned, Direct PLUS Loans are unsubsidized federal student loans that two groups of people can apply for to help pay for higher education that isn’t covered by other types of financial aid: graduate and professional students or parents of a dependent undergraduate student.

When a Direct PLUS Loan is made to parents of an undergraduate student, it’s often referred to as a parent PLUS loan. When made to a graduate or professional student, it’s called a grad PLUS loan.

Keep in mind that PLUS loans are some of the highest interest loans offered by the government — significantly higher than federal loans offered directly to undergrads — so it’s worth it to pursue other federal options first.

Eligibility for Federal Parent PLUS Loans

Parents can qualify for a parent PLUS loan as the biological, adoptive, and in some cases, stepparent of a qualifying undergraduate student enrolled at least half-time. It’s important to note that a federal Direct PLUS Loan made to a parent borrower cannot be transferred to the child.

Both parent and child must be U.S. citizens or eligible noncitizens and meet the eligibility requirements for federal student aid.

Unlike other types of federal loans, Direct PLUS Loans consider your credit history, and the requirements state that the borrower must not have an adverse credit history.

Some borrowers with credit issues may still be able to qualify if they meet certain additional eligibility requirements, such as having an endorser on the loan. Another option is to file an appeal and provide documentation of extenuating circumstances related to the adverse credit history.

Eligibility for Federal Grad PLUS Loans

When a Direct PLUS Loan is made to a graduate or professional student, it’s commonly called a grad PLUS loan. To qualify as an individual student borrower, you must be enrolled at least half-time in an eligible program leading to a graduate or professional degree.

As with parent PLUS loans, the borrower must meet the eligibility requirements for federal financial aid and can’t have an adverse credit history.

Interest Rates on Federal PLUS Loans

Direct PLUS Loans have some of the highest interest rates of all federal student loans. For the 2025-2026 school year, the federal student loan interest rate is 6.39% for undergraduates, 7.94% for graduate and professional students, and 8.94% for parents. The interest rates, which are fixed for the life of the loan, are set annually by Congress.

For the 2024-2025 school year, the federal student loan interest rate is 6.53% for undergraduates, 8.08% for graduate and professional students, and 9.08% for parents. The interest rates, which are fixed for the life of the loan, are set annually by Congress.

Is the Federal Direct PLUS Loan Subsidized or Unsubsidized?

Direct PLUS Loans are unsubsidized federal loans, meaning that the interest accumulates on the loan at all times.

If you are a graduate or professional student, you do not have to make any grad PLUS loan payments if you are enrolled at least half-time in school, and there is also a six-month grace period after you graduate or leave school.

If you don’t pay the interest on a federal unsubsidized loan during these periods, the interest on the loan is capitalized and added to the total principal amount of the loan. This amount will also accrue interest and increase the overall amount you owe.

Parent borrowers are expected to start making payments on a Direct PLUS Loan once it’s been fully paid out. But parents may request a student loan deferment while their child is enrolled in school or six months after.

Loan Fees on Federal PLUS Loans

There is a loan fee for Direct PLUS Loans. A percentage of the loan amount (currently 4.228%) is deducted from each loan disbursement. This percentage is higher than that for Direct Loans (currently 1.057%). Loan fees vary by the date that the loans are disbursed.

Loan Limits on Federal PLUS Loans

Direct PLUS loans allow graduate students or parents to borrow enough money to fund the costs of school that aren’t covered by other aid.

Unlike other federal loans, you can borrow up to the total cost of attendance with a Direct PLUS Loan, minus financial aid already received. The student’s school sets the amount that a graduate student or parent can borrow through a Direct PLUS Loan.

How to Apply for Federal PLUS Loans

Before applying for a Direct PLUS loan, a student must fill out the FAFSA® — the Free Application for Federal Student Aid. The borrower will undergo a credit check and may need to participate in credit counseling in some circumstances.

Once completed, schools at which students applied and were accepted will send award letters to students that include financial aid options for the upcoming school year, which may include Direct PLUS loans if the student and/or parent qualifies.

If a school doesn’t accept applications for Direct PLUS Loans via the federal Student Aid website, contact the school’s financial aid office to find out how to apply.

Recommended: FAFSA Guide

Thinking about refinancing your Direct PLUS Loans?
Get started with SoFi student loan refinancing.

What to Do When Federal PLUS Loans Aren’t Enough

The amount that can be borrowed through Direct PLUS Loans is set by the student’s school and can’t exceed the total cost of attendance minus financial aid received. If you still need additional funds to cover other education-related costs, you may want to explore private loans.

Private loans, which are also capped at the total cost of attendance, can bridge the gap between what a student is able to borrow in federal loans and their remaining needs after accounting for aid such as scholarships or grants.

Your eligibility and the interest rate that you can get through a private loan will depend on factors like your credit score and income. Having a cosigner on your loan may help you secure more favorable terms.

Parents with strong credit and income may find lower interest rates on private parent student loans than on federal parent PLUS loans which, as a reminder, also come with an origination fee.

Recommended: The Differences Between Grants, Scholarships, and Loans

What to Do About Undergraduate School Loans

If you owe both PLUS loans and undergraduate student loans, you may be looking for ways to lower your monthly payments. An income-driven repayment plan is one option for making monthly payments more affordable.

Direct PLUS loans made to students are eligible for most income-driven repayment plans, but parent PLUS loans are not. The only IDR plan available to parent borrowers is the Income-Contingent Repayment plan, and you must consolidate your parent PLUS loan into a federal Direct Consolidation Loan to become eligible.

If you’re a graduate student and you have a high-interest rate on existing undergraduate loans or need to lower your monthly payment before grad school, it could be worth considering student loan refinancing. Refinancing student loans through a private lender offers the opportunity to consolidate multiple student loans, federal and/or private, into a single loan with a single payment and (ideally) a lower interest rate. Note: You may pay more interest over the life of the loan if you refinance with an extended term.

Refinancing may be a long-term solution for some PLUS loan borrowers, especially if they do not qualify for income-driven repayment and are not planning to use other federal benefits. Keep in mind if you refinance federal loans, you lose access to federal benefits and protections, such as forgiveness, income-driven repayment plans, and forbearance.

The Takeaway

Direct PLUS Loans are unsubsidized federal loans that can be made to graduate students or parents of a dependent undergraduate student. Known as grad PLUS loans or parent PLUS loans, these federal loans take your credit history into account. If you have an adverse credit history, there are certain eligibility requirements you’ll need to meet to qualify.

Direct PLUS Loans allow you to borrow up to the full cost of attendance for graduate school minus the amount of financial aid you receive from other sources. Since they have higher interest rates and a higher origination fee than other types of federal loans, you’ll likely want to pursue a federal Direct Unsubsidized Loan first.

Private student loans can bridge the gap between what a student is able to borrow in federal loans and their remaining needs after aid such as scholarships or grants is considered. And remember, it’s possible to refinance student loans in the future if you might then qualify for a lower interest rate.

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

How does a Direct PLUS loan work?

Direct PLUS Loans are unsubsidized federal student loans for graduate and professional students (often referred to as a grad PLUS loan) or parents of a dependent undergraduate student (often referred to as a parent PLUS loan).

Unlike other federal loans, you can borrow up to the total cost of attendance with a Direct PLUS Loan, minus financial aid already received. These loans are unsubsidized, meaning interest accrues as soon as they are disbursed.

What are the disadvantages of a Direct PLUS loan?

Disadvantages of Direct PLUS Loans include the fact that unlike other federal loans, these loans consider your credit history, and borrowers must not have an adverse credit history in order to be eligible for them (although some borrowers may still be able to qualify if they meet other requirements). In addition, Direct PLUS loans have higher interest rates and a higher origination fee than other types of federal loans.

Who pays back a Direct PLUS loan?

The borrower of a Direct Loan is responsible for paying it back. If you have a parent PLUS loan, the loan cannot be transferred to your child. The parent borrower is legally responsible for repaying the loan.

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).

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.



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