Maryland Student Loan & Scholarship Information
The appeal of attending school in Maryland is obvious. There are terrific colleges and universities. Factor in the scenic Chesapeake Bay, those delicious blue crabs, and baseball games at Camden Yards, and you’re in for an awesome college experience. And we’ve got information to make it as affordable as possible, including scholarships, grants, and student loans to help fund your higher education.
Average Student Loan Debt in Maryland
As you’re considering Maryland for school, you’ll likely want to know the state’s average student loan debt. According to a 2023 report, 55% of Maryland college attendees have student loan debt, with an average balance of $30,461.
55%
of Maryland college
attendees have student
loan debt.
SoFi offers simple student loans that work for you.
Maryland Student Loans
Federal Student Loans
Federal student loans are provided by the U.S. Department of Education’s Direct Loan Program. If you take out a federal loan, the DOE is your lender. All federal student loans have fixed interest rates — which are generally lower than private loans’ — and carry fees between 1.057% and 4.228% that are deducted from the loan amount before disbursement.
To see which type of loans you may qualify for, you’ll need to fill out the Free Application for Federal Student Aid (FAFSA®) to apply for financial aid for college or grad school. Be aware of your state’s deadline as well as the federal FAFSA deadline.
You should also review the deadlines for each college to which you are applying, as one college may define their deadline as the date you submit your FAFSA form, while another considers it to be the date on which your FAFSA is actually processed. FAFSA will then offer you a financial aid package, dependent on your college, that may include grants, work-study opportunities, and federal student loan options. It is important to note that not every student will qualify to receive federal aid.
Recommended: FAFSA Guide
Direct Subsidized Loans: These are for eligible undergraduate students who demonstrate financial need, and they help cover the costs of higher education at a college or career school. The federal government pays the interest on Direct Subsidized Loans while a student is in school at least half-time. Interest starts accruing on these loans after a six-month grace period once students graduate or if they drop below half-time enrollment.
Direct Unsubsidized Loans: Eligible undergraduate, graduate, and professional students may qualify for these loans. Eligibility is not based on financial need. The interest on these loans begins accruing immediately after funds are disbursed (meaning paid out).
Direct PLUS Loans: These loans are for parents of dependent undergraduate students who need help paying for education expenses not covered by other financial aid. Eligibility for this loan is not based on financial need, but it does require a credit check.
PLUS loans for graduate and professional students are being phased out. Only borrowers who already received these loans before June 30, 2026, can continue to borrow under their current terms through the 2028-29 academic year.
Recommended: Types of Federal Student Loans
Private Student Loans
Private loans are funded by private organizations such as banks, online lenders, credit unions, some schools, and state-based or state-affiliated organizations. A key point to note: Private lenders follow a different set of regulations than federal loans, so their interest rates can vary widely. What’s more, private loans have variable or fixed interest rates that may be higher than federal loan interest rates, which are always fixed.
Private lenders may require you to make payments on your loans while you are still in school. On the other hand, you don’t have to start paying back federal student loans until after you graduate, leave school, or change your enrollment status to less than half-time.
Unlike federal loans which can only be applied for within certain deadlines (once a year, and states have their own deadlines), private loans can be applied for on an as-needed basis. Even if you suspect you may need to take out a private loan, it’s still a smart move to submit your FAFSA before applying. That way, you can see what federal aid you may qualify for first.
If you’ve missed the FAFSA deadline and you’re struggling to pay for school throughout the year, private loans can potentially help you make your education payments. Just keep in mind that you will need enough lead time for your loan to process and for your lender to send money to your school.
Scholarships & Grants
Who doesn’t love a gift? You may sometimes hear grants and scholarships referred to as gift aid. That’s because while grants or scholarships may have certain academic or other requirements to keep them, you usually don’t have to pay them back as you would with a loan. Whether you call that a gift, a windfall, or free money, it’s a huge help when it comes time to pay for higher education.
There are a few instances where you may have to pay back grant money, but typically only if certain requirements aren’t met. Generally, grants are need-based (meaning they are distributed due to your financial need), while scholarships are awarded based on merit (such as academic, athletic, or artistic achievement).
There is no one-size-fits-all grant or scholarship amount or requirements, and both scholarships and grants can come from a variety of entities (including private organizations and federal or state governments).
Some scholarships or grants can be for a small amount that may help you pay for your books or research supplies, but others can cover the entire cost of your education. That means tuition, room and board, and the extras. Which is a very good thing. Who knew parking passes could be so expensive?
Maryland Scholarships & Grants
In addition to these federal resources, there are additional ways for those who are Maryland residents or students to help foot the higher-ed bill. We’ve rounded up some great state-specific scholarship and grant options to explore.
Howard P. Rawlings Guaranteed Access (GA) Grant
This grant provides financial assistance to eligible in-state students who are currently enrolled as high school seniors and will complete a college preparatory program. Students who have obtained a General Educational Development Diploma (GED) and are under the age of 26 may also qualify. The award amount can be up to $22,100 and is based on need.
Howard P. Rawlings Educational Assistance (EA) Grant
Current high school seniors and full-time undergraduates may be eligible for this grant—as long as they are enrolled at a two-year or four-year Maryland college or university as a full-time, degree-seeking undergraduate student. Candidates must demonstrate financial need and fulfill other select requirements to be considered. These grants can be as much as $3,000 for up to four years.
Howard P. Rawlings Campus Based Educational Assistance Grant
This need-based grant is designed to assist students that did not file their Free Application for Federal Student Aid (FAFSA®) by the Maryland state deadline, and therefore were not considered for the Howard P. Rawlings Educational Assistance Grant. These annual awards range from $400 to $3,000.
2+2 Transfer Scholarship
This scholarship is designed to financially aid transfer students from Maryland community colleges to attend 4-year institutions within the state. To qualify, among other eligibility requirements, students must be enrolled at an eligible accredited postsecondary institution in Maryland. The annual award ranges from $1,000 to $2,000.
Graduate and Professional Scholarship Program
Maryland residents who demonstrate financial need and are enrolled as degree-seeking students at select schools may qualify for this scholarship program. Students must be studying in graduate and professional programs in dentistry, law, medicine, nursing, pharmacy, social work, and veterinary medicine. The awards range from $1,000 to $5,000 per year.
Delegate Scholarship
Students enrolled at a two-year or four-year Maryland college or university as a degree-seeking undergraduate or graduate student can apply for this scholarship. Students who attend certain private career schools may also qualify. This scholarship can be used at out-of-state schools, if a recipient’s chosen major isn’t available at any Maryland institution. The total dollar amount of all state scholarship awards may not exceed your cost of attendance or $29,600, whichever is less.
Get low-rate in-school loans that work for you.
Maryland Student Loan Repayment & Forgiveness Programs
If you’ve taken out student loans to attend a school in Maryland, it is never too early to start thinking about your repayment plan. And guess what? You have a few repayment options at your disposal.
Under the 2025 domestic policy bill, the standard student loan repayment term is between 10 and 25 years, based on the loan amount. Federal student loan interest rates vary based on what year you receive the loan.
For the 2025-2026 school year, the federal student loan interest rate is 6.39% for Direct Subsidized and Unsubsidized Loans for undergraduates, 7.94% for Direct Unsubsidized Loans for graduate and professional students, and 8.94% for Direct PLUS loans for parents and graduate or professional students.
For private loans, terms and conditions such as interest rates are set by the lender and vary due to many factors. Federal student loans typically offer the lowest interest rates and more flexible repayment options as compared to private student loans.
10-30
Years
New federal student loan repayment terms,
depending on the loan amount,
beginning July 2026.
Federal Student Loan Repayment Options
The U.S. domestic policy bill that was passed in July 2025 eliminates a number of federal repayment plans. Because current borrowers may remain in the plans, we are including them here. But for borrowers taking out their first loans on or after July 1, 2026, there will be only two repayment options: The Standard and an income-driven plan. You can learn more about your repayment options for federal student loans here.
Standard Repayment Plan
This plan will continue to be available in a modified form. Most borrowers were eligible for the original plan, which had a 10-year repayment period. Borrowers often paid less over time than with other plans because the loan term was shorter. (Typically, less interest accrues over shorter loan terms than longer ones if payments are made in full and on-time.) For loans taken out on or after July 1, 2026, the repayment term will range from 10 to 25 years based on the loan amount.
Repayment Assistance Program
This new program is similar to previous income-driven plans, which tied payments to income levels and household size. Payments range from 1% to 10% of adjusted gross income over a term up to 30 years. At that point, any remaining debt will be forgiven. If your monthly payment doesn’t cover the interest owed, the interest will be cancelled.
Graduated Repayment Plan
This plan will be closed to new loans made on or after July 1, 2026. Most borrowers were eligible for this plan, which allowed them to pay their loans off over 10 years. Payments started relatively low, then increased over time (usually every two years). Current borrowers in this plan will continue to make payments according to the plan’s graduated structure.
Extended Repayment Plan
This plan will be closed to new loans made on or after July 1, 2026. To qualify for this plan, you must have had more than $30,000 in outstanding Direct or FFEL loans. Monthly payments on the Extended Repayment Plan were typically lower than under the 10-year Standard Plan or the Graduated Repayment Plan, because borrowers had a longer period to pay them off (and therefore made more interest payments). Current borrowers in this plan will continue to make payments according to the plan’s extended term.
Saving on a Valuable Education (SAVE)
This plan is scheduled to be eliminated by June 30, 2028. Most student borrowers were eligible for this plan. The SAVE Plan lowered payments for almost all borrowers compared to other income-driven plans because payments were based on a smaller portion of your adjusted gross income (AGI). In addition, any remaining balance would be forgiven after 20 years. Current borrowers in this plan may transition into the new Standard Repayment Plan or Repayment Assistance Program (RAP) beginning July 1, 2026.
Income-Based Repayment (IBR)
IBR is available to anyone currently in an income-driven plan that’s scheduled to close. It was designed for borrowers who have a high debt relative to their income. Monthly payments were never higher than the 10-year Standard Plan amount. Generally, however, borrowers paid more over time than under the Standard Plan.
Still not sure which payment plan is right for you?
For more information on repayment plans, check out our Student Loan Repayment Options article to help add some clarity.
Granted, it’s not always easy to pay loans back on time. When it comes to student loan default, 10% to 20% of student loans are typically in default. To help you avoid being among those who default on your student loans, let’s take a look at refinancing options.
Student Loan Refinancing
One option to potentially help accelerate student loan repayment is to refinance your student loans with a private lender. Some private lenders, like SoFi, will let you consolidate and refinance both your federal and private student loans into one loan and a single interest rate. It’s a great way to streamline your bill paying and financial life in general.
Consolidating your loans (aka combining them) under one lender gives you the opportunity to refinance your loan and get a new term and interest rate. If you have an improved financial profile compared to when you took out your original loan, you may be able to lower your interest rate when you refinance, or shorten your term to pay off your loan more quickly.
But it is important to remember that if you refinance federal student loans with a private lender, you will lose access to federal programs such as the income-driven repayment plans mentioned above, as well as student loan forgiveness and forbearance options.
Student Loan Forgiveness
At first glance, student loan forgiveness looks appealing, but it is not easily attainable. That being said, there are state-specific and federal Public Service Loan Forgiveness programs that certain student loan borrowers may be eligible for.
Before you review your options, it’s important to know that the terms forgiveness, cancellation, and discharge essentially mean the same thing when it comes to federal student loans, but are applied in different scenarios. For example, if you are no longer required to make loan payments due to your job, that could fall under forgiveness or cancellation.
Or, if the school you received your loans at closed before you graduated, this situation would generally be called a discharge.
Even if you don’t complete your education, can’t find a job, or are unhappy with the quality of your education, you must repay your loans. But there are circumstances that may lead to federal student loans being forgiven, canceled, or discharged. Here are some of those options:
Public Service Loan Forgiveness (PSLF)
The PSLF Program may forgive the remaining balance on eligible Direct Loans, after 120 qualified monthly payments are made under a repayment plan (and working with a qualifying employer).
Teacher Loan Forgiveness
Those who teach full-time for five complete and consecutive academic years in a low-income school or educational service agency may be eligible for forgiveness of up to $17,500 on select federal loans.
Perkins Loan Cancellation
Cancellation for this specific loan is based on eligible employment or volunteer service and length of service, among other factors.
Total and Permanent Disability Discharge
Qualification may relieve eligible borrowers from repaying a qualifying Direct Loan, a Federal Family Education Loan (FFEL) Program loan, and/or a Federal Perkins Loan or a TEACH Grant service obligation.
Death Discharge
Due to the death of the borrower or of the student on whose behalf a PLUS loan was taken out, federal student loans may be discharged.
Bankruptcy Discharge
Certain eligible borrowers may have federal student loans discharged if they file a separate action during bankruptcy, known as an “adversary proceeding.”
Closed School Discharge
Borrowers who were unable to complete an academic program because their school closed might be eligible for a discharge of Direct Loans, Federal Family Education Loan (FFEL) Program loans, or Federal Perkins Loans.
Maryland Specific Student Loan Forgiveness Programs
Federal loan forgiveness programs are a logical place to start, but it can be smart to also consider other student loan forgiveness programs. There are forgiveness programs tailored to loan borrowers who live in certain locations, or have an in-demand and service-based vocation.
Janet L. Hoffman Loan Assistance Repayment Program (LARP)
This is a program for Maryland residents who work in public service assisting low-income or underserved residents. They must provide public service in Maryland local government or nonprofit agencies. Awards are based on an applicant’s overall educational debt and are paid over three years, with a maximum of $10,000 annually.
Maryland Dent-Care Loan Assistance Repayment Program
Maryland residents may qualify for this loan assistance repayment program as long as they have graduated from an accredited US dental school. Recipients must practice full time in Maryland caring for Maryland Medical Assistance Program (MMAP) recipients. The maximum current award amount is $23,740 per year for up to three years.
Maryland Loan Assistance Repayment Program (MLARP) For Foster Care Recipients
This repayment program is for former foster care recipients who are employed by Maryland state, county, or municipality government. They must also have graduated from an institution of higher education in Maryland in order to receive financial assistance. The award amount is equal to 10 percent of the applicant’s total student loan debt, or $5,000 whichever is less.
State Loan Repayment Program (SLRP) and Maryland Loan Assistance Repayment Program for Physicians (MLARP)
These programs provide educational loan repayment funds to physicians and physician assistants who serve in a health professional shortage area (HPSA) or medically underserved area for two years, either in primary care or mental health. The award can be as much as $50,000 per year for a 2-year obligation.
SoFi Private Student Loans
In the spirit of transparency, we want you to know that you should exhaust all of your federal grant and loan options before you consider a SoFi private student loan.
We believe that it is in each student’s best interest to look at federal financing options first in order to find the right financial aid package for them.
If you do decide a private student loan is the right fit for your educational needs, we’re happy to help! SoFi’s private student loan application process is easy and fast. We offer flexible payment options and terms, and there are no origination or late fees.
Read more
Tennessee Student Loan & Scholarship Information
If you love country music and classic Southern food, Tennessee, with its dozens of colleges and universities, may be the perfect place for you to attend school. Once you’re done studying, you can go road-tripping to Dollywood, Graceland, or the Grand Ole Opry. If the Volunteer State sounds like your dream college destination, you’re probably wondering how to afford it. We can help! Read on for details about Tennessee college scholarships, grants, and student loan forgiveness opportunities.
Average Student Loan Debt in Tennessee
If you’re curious about what the average state of student loans in Tennessee looks like, look no further. According to a 2023 report, 53% of Tennessee college attendees have student loan debt, with an average balance of $26,852.
53%
of Tennessee college
attendees have
student loan debt.
SoFi offers simple student loans that work for you.
Tennessee Student Loans
Federal Student Loans
Federal student loans are provided by the U.S. Department of Education’s Direct Loan Program. If you take out a federal loan, the DOE is your lender. All federal student loans have fixed interest rates — which are generally lower than private loans’ — and carry fees between 1.057% and 4.228% that are deducted from the loan amount before disbursement.
To see which type of loans you may qualify for, you’ll need to fill out the Free Application for Federal Student Aid (FAFSA®) to apply for financial aid for college or grad school. Be aware of your state’s deadline as well as the federal FAFSA deadline.
You should also review the deadlines for each college to which you are applying, as one college may define their deadline as the date you submit your FAFSA form, while another considers it to be the date on which your FAFSA is actually processed. FAFSA will then offer you a financial aid package, dependent on your college, that may include grants, work-study opportunities, and federal student loan options. It is important to note that not every student will qualify to receive federal aid.
Recommended: FAFSA Guide
Direct Subsidized Loans: These are for eligible undergraduate students who demonstrate financial need, and they help cover the costs of higher education at a college or career school. The federal government pays the interest on Direct Subsidized Loans while a student is in school at least half-time. Interest starts accruing on these loans after a six-month grace period once students graduate or if they drop below half-time enrollment.
Direct Unsubsidized Loans: Eligible undergraduate, graduate, and professional students may qualify for these loans. Eligibility is not based on financial need. The interest on these loans begins accruing immediately after funds are disbursed (meaning paid out).
Direct PLUS Loans: These loans are for parents of dependent undergraduate students who need help paying for education expenses not covered by other financial aid. Eligibility for this loan is not based on financial need, but it does require a credit check.
PLUS loans for graduate and professional students are being phased out. Only borrowers who already received these loans before June 30, 2026, can continue to borrow under their current terms through the 2028-29 academic year.
Recommended: Types of Federal Student Loans
Private Student Loans
Private loans are funded by private organizations such as banks, online lenders, credit unions, some schools, and state-based or state-affiliated organizations. A key point to note: Private lenders follow a different set of regulations than federal loans, so their interest rates can vary widely. What’s more, private loans have variable or fixed interest rates that may be higher than federal loan interest rates, which are always fixed.
Private lenders may require you to make payments on your loans while you are still in school. On the other hand, you don’t have to start paying back federal student loans until after you graduate, leave school, or change your enrollment status to less than half-time.
Unlike federal loans which can only be applied for within certain deadlines (once a year, and states have their own deadlines), private loans can be applied for on an as-needed basis. Even if you suspect you may need to take out a private loan, it’s still a smart move to submit your FAFSA before applying. That way, you can see what federal aid you may qualify for first.
If you’ve missed the FAFSA deadline and you’re struggling to pay for school throughout the year, private loans can potentially help you make your education payments. Just keep in mind that you will need enough lead time for your loan to process and for your lender to send money to your school.
Scholarships & Grants
Who doesn’t love a gift? You may sometimes hear grants and scholarships referred to as gift aid. That’s because while grants or scholarships may have certain academic or other requirements to keep them, you usually don’t have to pay them back as you would with a loan. Whether you call that a gift, a windfall, or free money, it’s a huge help when it comes time to pay for higher education.
There are a few instances where you may have to pay back grant money, but typically only if certain requirements aren’t met. Generally, grants are need-based (meaning they are distributed due to your financial need), while scholarships are awarded based on merit (such as academic, athletic, or artistic achievement).
There is no one-size-fits-all grant or scholarship amount or requirements, and both scholarships and grants can come from a variety of entities (including private organizations and federal or state governments).
Some scholarships or grants can be for a small amount that may help you pay for your books or research supplies, but others can cover the entire cost of your education. That means tuition, room and board, and the extras. Which is a very good thing. Who knew parking passes could be so expensive?
Tennessee Scholarships & Grants
As far as gift aid options go, there are some terrific Tennessee college scholarships and grants available to you. Consider looking into some of these to help finance your education.
Tennessee Promise Scholarship
For eligible Tennessee high school seniors who will be attending community or technical colleges, the Tennessee Promise Scholarship helps cover the remaining cost of tuition and fees after all other available gift aid has been subtracted from the total cost of tuition and fees.
Tennessee HOPE Scholarship
This scholarship can assist students who are enrolled at an eligible postsecondary institution in Tennessee and graduated from an eligible Tennessee high school less than sixteen months ago. Awards go up to $2,250 per semester for freshmen and sophomores, and then up to $2,850 a semester for juniors and seniors.
Aspire Award
The Aspire program offers need-based awards of up to $750 per semester to eligible students to help supplement costs not covered by the HOPE scholarship.
General Assembly Merit Scholarship
This merit-based award allows eligible entering freshman to supplement the HOPE Scholarship with funds of up to $500 per semester.
Tennessee Student Assistance Award
Undergraduate students who are residents of Tennessee and have financial need may qualify for this award, which goes up to $4,000 per year. Recipients must attend or be accepted to an eligible postsecondary institution in Tennessee.
Minority Teaching Fellows Program
This is a $5,000 Tennessee scholarship program for minority students pursuing teacher certification at eligible colleges and universities in Tennessee. After graduation, they must teach in a Tennessee public school for the number of years they receive the award.
Tennessee Teaching Scholars Program
Tennessee students who enroll in a teacher education program in a Tennessee college or university are eligible for this $5,000 scholarship. After graduation, they must teach in a Tennessee public school for the number of years they receive the award.
Get low-rate in-school loans that work for you.
Tennessee Student Loan Repayment & Forgiveness Programs
If you’ve taken out student loans to attend a school in Tennessee, it is never too early to start thinking about your repayment plan. And guess what? You have a few repayment options at your disposal.
Under the 2025 domestic policy bill, the standard student loan repayment term is between 10 and 25 years, based on the loan amount. Federal student loan interest rates vary based on what year you receive the loan.
For the 2025-2026 school year, the federal student loan interest rate is 6.39% for Direct Subsidized and Unsubsidized Loans for undergraduates, 7.94% for Direct Unsubsidized Loans for graduate and professional students, and 8.94% for Direct PLUS loans for parents and graduate or professional students.
For private loans, terms and conditions such as interest rates are set by the lender and vary due to many factors. Federal student loans typically offer the lowest interest rates and more flexible repayment options as compared to private student loans.
10-30
Years
New federal student loan repayment terms,
depending on the loan amount,
beginning July 2026.
Federal Student Loan Repayment Options
The U.S. domestic policy bill that was passed in July 2025 eliminates a number of federal repayment plans. Because current borrowers may remain in the plans, we are including them here. But for borrowers taking out their first loans on or after July 1, 2026, there will be only two repayment options: The Standard and an income-driven plan. You can learn more about your repayment options for federal student loans here.
Standard Repayment Plan
This plan will continue to be available in a modified form. Most borrowers were eligible for the original plan, which had a 10-year repayment period. Borrowers often paid less over time than with other plans because the loan term was shorter. (Typically, less interest accrues over shorter loan terms than longer ones if payments are made in full and on-time.) For loans taken out on or after July 1, 2026, the repayment term will range from 10 to 25 years based on the loan amount.
Repayment Assistance Program
This new program is similar to previous income-driven plans, which tied payments to income levels and household size. Payments range from 1% to 10% of adjusted gross income over a term up to 30 years. At that point, any remaining debt will be forgiven. If your monthly payment doesn’t cover the interest owed, the interest will be cancelled.
Graduated Repayment Plan
This plan will be closed to new loans made on or after July 1, 2026. Most borrowers were eligible for this plan, which allowed them to pay their loans off over 10 years. Payments started relatively low, then increased over time (usually every two years). Current borrowers in this plan will continue to make payments according to the plan’s graduated structure.
Extended Repayment Plan
This plan will be closed to new loans made on or after July 1, 2026. To qualify for this plan, you must have had more than $30,000 in outstanding Direct or FFEL loans. Monthly payments on the Extended Repayment Plan were typically lower than under the 10-year Standard Plan or the Graduated Repayment Plan, because borrowers had a longer period to pay them off (and therefore made more interest payments). Current borrowers in this plan will continue to make payments according to the plan’s extended term.
Saving on a Valuable Education (SAVE)
This plan is scheduled to be eliminated by June 30, 2028. Most student borrowers were eligible for this plan. The SAVE Plan lowered payments for almost all borrowers compared to other income-driven plans because payments were based on a smaller portion of your adjusted gross income (AGI). In addition, any remaining balance would be forgiven after 20 years. Current borrowers in this plan may transition into the new Standard Repayment Plan or Repayment Assistance Program (RAP) beginning July 1, 2026.
Income-Based Repayment (IBR)
IBR is available to anyone currently in an income-driven plan that’s scheduled to close. It was designed for borrowers who have a high debt relative to their income. Monthly payments were never higher than the 10-year Standard Plan amount. Generally, however, borrowers paid more over time than under the Standard Plan.
Still not sure which payment plan is right for you?
For more information on repayment plans, check out our Student Loan Repayment Options article to help add some clarity.
Granted, it’s not always easy to pay loans back on time. When it comes to student loan default, 10% to 20% of student loans are typically in default. To help you avoid being among those who default on your student loans, let’s take a look at refinancing options.
Student Loan Refinancing
One option to potentially help accelerate student loan repayment is to refinance your student loans with a private lender. Some private lenders, like SoFi, will let you consolidate and refinance both your federal and private student loans into one loan and a single interest rate. It’s a great way to streamline your bill paying and financial life in general.
Consolidating your loans (aka combining them) under one lender gives you the opportunity to refinance your loan and get a new term and interest rate. If you have an improved financial profile compared to when you took out your original loan, you may be able to lower your interest rate when you refinance, or shorten your term to pay off your loan more quickly.
But it is important to remember that if you refinance federal student loans with a private lender, you will lose access to federal programs such as the income-driven repayment plans mentioned above, as well as student loan forgiveness and forbearance options.
Student Loan Forgiveness
At first glance, student loan forgiveness looks appealing, but it is not easily attainable. That being said, there are state-specific and federal Public Service Loan Forgiveness programs that certain student loan borrowers may be eligible for.
Before you review your options, it’s important to know that the terms forgiveness, cancellation, and discharge essentially mean the same thing when it comes to federal student loans, but are applied in different scenarios. For example, if you are no longer required to make loan payments due to your job, that could fall under forgiveness or cancellation.
Or, if the school you received your loans at closed before you graduated, this situation would generally be called a discharge.
Even if you don’t complete your education, can’t find a job, or are unhappy with the quality of your education, you must repay your loans. But there are circumstances that may lead to federal student loans being forgiven, canceled, or discharged. Here are some of those options:
Public Service Loan Forgiveness (PSLF)
The PSLF Program may forgive the remaining balance on eligible Direct Loans, after 120 qualified monthly payments are made under a repayment plan (and working with a qualifying employer).
Teacher Loan Forgiveness
Those who teach full-time for five complete and consecutive academic years in a low-income school or educational service agency may be eligible for forgiveness of up to $17,500 on select federal loans.
Perkins Loan Cancellation
Cancellation for this specific loan is based on eligible employment or volunteer service and length of service, among other factors.
Total and Permanent Disability Discharge
Qualification may relieve eligible borrowers from repaying a qualifying Direct Loan, a Federal Family Education Loan (FFEL) Program loan, and/or a Federal Perkins Loan or a TEACH Grant service obligation.
Death Discharge
Due to the death of the borrower or of the student on whose behalf a PLUS loan was taken out, federal student loans may be discharged.
Bankruptcy Discharge
Certain eligible borrowers may have federal student loans discharged if they file a separate action during bankruptcy, known as an “adversary proceeding.”
Closed School Discharge
Borrowers who were unable to complete an academic program because their school closed might be eligible for a discharge of Direct Loans, Federal Family Education Loan (FFEL) Program loans, or Federal Perkins Loans.
Tennessee Specific Student Loan Forgiveness Programs
Federal loan forgiveness programs are a logical place to start, but it can be smart to also consider other student loan forgiveness programs. There are forgiveness programs tailored to loan borrowers who live in certain locations, or have an in-demand and service-based vocation.
Tennessee State Loan Repayment Program
This program offers student loan repayment to qualified primary care practitioners who work for two years in a designated Health Professional Shortage Area in Tennessee. The maximum award amount is up to $50,000, depending on funding.
Graduate Nursing Loan Forgiveness Program
Eligible Tennessee residents who are registered nurses can become teachers and administrators in Tennessee nursing education programs to have their student loans completely forgiven. They must agree to work in eligible positions for four years to have the loan forgiven immediately after completing their education program.
SoFi Private Student Loans
In the spirit of transparency, we want you to know that you should exhaust all of your federal grant and loan options before you consider a SoFi private student loan.
We believe that it is in each student’s best interest to look at federal financing options first in order to find the right financial aid package for them.
If you do decide a private student loan is the right fit for your educational needs, we’re happy to help! SoFi’s private student loan application process is easy and fast. We offer flexible payment options and terms, and there are no origination or late fees.
Read more
As New Tariffs Kick In, We Can’t Avoid All Imported Foods
One of the primary rationales for raising tariffs is to get more made on U.S. soil.
Adding to import costs should give U.S. companies more incentive to buy the stuff they need here instead. And then they could avoid the tariffs — and having to pass those costs on to their customers.
But as a new layer of tariffs takes effect this week, economists point out that this isn’t always an option, particularly with food. While manufacturers might replace imported materials with domestic alternatives, we can’t grow or produce everything we eat and drink here in the U.S. And the ongoing trade war will affect 74% of all imported foods, according to new estimates from the Tax Foundation.
Take bananas, which have already jumped in price this year, passing previous record high averages from 2022. The U.S. relies heavily on banana imports from Central American countries because Florida and Hawaii — among the few places in the U.S. with the proper climate to grow them — can’t supply the entire nation, according to the Tax Foundation.
Or there’s coffee from Brazil, which beginning this week faces an additional tariff of 40%, for a total of 50%. How much is that nutty, slightly chocolatey flavor profile worth if there’s no way to replicate it with a bean grown domestically?
In other words, a U.S. company can potentially soften the blow of tariffs by replacing imported aluminum with domestic aluminum to make a soda can. But it’s often more complicated with food. Between climate and capacity constraints — and the unique features of many imported foods — it may be impossible to meet demand with domestic alternatives.
Last year, the U.S. imported about $221 billion in food products, $163 billion of which would have been hit by this year’s new tariffs, according to the Tax Foundation’s analysis. The five categories the group projects will be hardest-hit are, in order: liquors and spirits, baked goods, coffee, fish, and beer.
So what? New tariffs may create a particular challenge with food prices, which have already risen 30% since the pandemic, including 3% in the last year, according to the latest Consumer Price Index. But being careful and deliberate with your choices can help limit additional costs. Here are a few ideas:
• Buy seasonal, domestic produce whenever possible, including at your local farmers’ markets. You may end up cutting back on bananas, but there are plenty of fruits and vegetables more commonly grown in the U.S.
• Consider store brands. Cheaper off-brand versions of many grocery items can help temper the effect of price hikes. And they’re often the same product in different packaging.
• Stock up when grocery items are on sale. Look for deals on anything that stores well. A full cupboard can ease a lot of anxiety.
• Explore online or warehouse club deals. Look for lower per‑unit pricing to offset tariff‑driven increases.
• Check your fridge and calendar before you shop. The average consumer wastes more than $700 worth of food per year. These steps can help you avoid buying perishables you don’t need or won’t use in the week ahead.
Related Reading
• New Poll From AP Shows Many Americans Stress About Grocery Prices (ABC 10 News)
• What Trump’s New Tariffs Mean for Grocery Prices Now (Eat This, Not That)
• Grocery Inflation Hacks: How to Fill Your Fridge for Less (SoFi)
Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
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The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
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Read moreCurrent HELOC Rates in Pittsburgh, PA Today
PITTSBURGH HELOC RATES TODAY
Current HELOC rates in
Pittsburgh, PA.
Disclaimer: The prime rate directly influences the rates on HELOCs and home equity loans.
Turn your home equity into cash. Call us for a complimentary consultation or get prequalified online.
Compare HELOC rates in Pittsburgh.
Key Points
• HELOC interest rates are often determined by adding a percentage margin to the U.S. prime rate.
• Pittsburgh homeowners can borrow up to 85% of their home equity with a HELOC.
• During the draw period, you pay only interest on the amount of the credit line you use.
• HELOC interest rates are adjustable, meaning they change with the market, impacting your monthly payments.
• HELOCs offer flexibility and potentially lower interest rates, but they also come with the risk of foreclosure if the borrower defaults.
• Online calculators can help you estimate monthly payments and interest costs.
Introduction to HELOC Rates
Welcome to a comprehensive guide on HELOC interest rates in Pittsburgh, Pennsylvania. This resource is designed to help you, as a homeowner, navigate the waters of home equity financing. We’ll explore current interest rates, the factors that influence them, and the tools that are available to help you estimate your potential monthly payments. Whether you’re dreaming of a home renovation, looking to consolidate debt, or have other significant expenses on the horizon, we’re here to empower you to make informed financial decisions and find the best HELOC for your needs.
Without further ado, exactly what is a home equity line of credit?
What’s a HELOC?
A HELOC, or home equity line of credit, is a revolving credit line (similar to a credit card) that is secured by the equity in your home. Your equity can be calculated like this: Take the market value of your home and subtract the amount you still owe on it.
Let’s say your home is valued at $245,000 — the average in Pittsburgh — and your mortgage balance is $175,000: $245,000 – $175,000 = $70,000. Your equity level is 28.5%, well within the qualification zone for a HELOC. You can borrow up to 85% of your equity, if you have at least 15% equity in your home. In this example, you could borrow 85% of $70,000, or $59,500.
A HELOC typically has a draw period and a repayment period.
The Draw Period
The draw period is when you can borrow money in increments, up to your credit limit, repay what you’ve borrowed (or carry a balance), and borrow again. Your lender may furnish you with a dedicated credit card or checks, or you can opt for account transfers. You typically make interest-only payments. Bookmark a HELOC interest-only calculator to determine how much you can afford.
The Repayment Period
The repayment period is when you can no longer borrow and must pay back the principal plus interest. HELOCs have variable interest rates, which rise and fall with the market, so your monthly payment amount varies over the 10 or 20 years of the repayment term. A HELOC monthly payment calculator is handy for predicting what you’ll owe.
How Are HELOC Interest Rates Set?
HELOC interest rates are tied to the U.S. prime rate, which is influenced by the Federal Reserve’s policies. Each lender adds its own margin to the prime rate, which is why HELOC rates vary so much. By having a general understanding of how rates are set, you can better anticipate rate fluctuations and decide the optimal time to apply for a HELOC. You’ll also have a better idea of whether current interest rates are high, low, or somewhere in between.
Your personal credit score, debt-to-income ratio, income, and the amount of equity in your home are also key factors in the rate you receive with different types of home equity loans and HELOCs. We’ll explain how to maximize these factors a little later on.
How Interest Rates Impact HELOC Affordability
Even a small change in interest rate can have a big impact on how much you pay back over the term of the HELOC. For example, a $50,000 HELOC at 8.00% over a 15-year repayment period would have a monthly principal-and-interest payment of $478 and total interest of $36,009. At 9.00%, the monthly payment would go up to $507 — not a dealbreaker for most people. It’s the total interest that’s striking: $41,284, more than $5,200 higher than the lower rate. The longer your repayment term, the more that interest will compound.
Recommended: Home Equity Loan Calculator
HELOC Interest Rate Trends
Keeping an eye on the prime interest rate is a smart move. Over the years, it’s yo-yoed between 3.25% (in 2020) and 8.50% (in 2023). These ups and downs can help you foresee changes in your HELOC rate. By arming yourself with this knowledge, you’ll be better equipped to make informed decisions about when and how to get equity out of your home.
Historical Prime Interest Rate
| Date | U.S. Rate |
|---|---|
| 9/19/2024 | 8.00% |
| 7/27/2023 | 8.50% |
| 5/4/2023 | 8.25% |
| 3/23/2023 | 8.00% |
| 2/2/2023 | 7.75% |
| 12/15/2022 | 7.50% |
| 11/3/2022 | 7.00% |
| 9/22/2022 | 6.25% |
| 7/28/2022 | 5.50% |
| 6/16/2022 | 4.75% |
| 5/5/2022 | 4.00% |
| 3/17/2022 | 3.50% |
| 3/16/2020 | 3.25% |
| 3/4/2020 | 4.25% |
| 10/31/2019 | 4.75% |
| 9/19/2019 | 5.00% |
| 8/1/2019 | 5.25% |
| 12/20/2018 | 5.5% |
| 9/27/2018 | 5.25% |
Source: U.S. Federal Reserve
Adjustable vs Fixed Interest Rates
HELOCs often come with adjustable interest rates, which are influenced by market shifts. At the outset, these rates may be lower than fixed rates, which is an appealing start. Yet the potential for change means your monthly payments will also vary. If the prime rate goes up, your HELOC rates are likely to follow. This might make planning your finances a bit more of a puzzle, but it could also work in your favor if interest rates take a dip.
Weighing the advantages and disadvantages of adjustable versus fixed rates is key to selecting the most fitting home equity financing for your financial landscape.
Useful Tools & Calculators
Before you apply for a HELOC, you can use our online tools to help you estimate your monthly payment and interest costs. You might also consider using a home equity loan calculator to compare different loan options and determine whether a HELOC vs. home equity loan will better serve your needs.
Run the numbers on your HELOC.
-
Home Equity Loan Calculator
Enter a few details about your home loan and we’ll provide you your maximum home equity loan amount.
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HELOC Payment Calculator
Punch in your HELOC amount and we’ll estimate your monthly payment amount for your HELOC.
-
HELOC Interest Only Calculator
Use SoFI’s HELOC interest calculator to estimate how much monthly interest you’ll pay .
Using the free calculators is for informational purposes only, does not constitute an offer to receive a loan, and will not solicit a loan offer. Any payments shown depend on the accuracy of the information provided.
How to Qualify for a Competitive HELOC Rate
As with any home loan, you need to meet certain criteria for a HELOC. Lenders generally require a minimum credit score in the upper 600s, a debt-to-income ratio below 50%, and at least 15% equity in your home. But different metrics are required to secure the best available interest rate. Additionally, understanding your home’s value and the current market conditions can help you negotiate better terms. By preparing thoroughly and comparing multiple lenders, you can find the HELOC that fits your financial goals.
Improve Your Credit Score
Building your credit score to 700 or above will help you secure the best HELOC rates. How can you boost your credit score? Paying your bills on time, every time, and chipping away at credit card balances can make a big difference. Keep your credit utilization low, and dispute any errors on your credit report. A higher credit score not only increases your chances of getting approved, but it also means you’re more likely to get better terms and conditions.
Calculate Your Debt-to-Income (DTI) Ratio
Your DTI ratio is a simple calculation: your total monthly debt payments divided by your gross monthly income. HELOC lenders generally bestow their best rates to borrowers with a DTI below 36%, but the lower your ratio, the stronger your application. To find your DTI, tally up all your monthly financial commitments — mortgage, car loans, student loans, credit card payments — then divide by your pretax monthly income. A lower DTI can bolster your HELOC application.
Recommended: What Is a Home Equity Loan?
Application Process for a HELOC in Pittsburgh
Many lenders offer the convenience of prequalifying for a HELOC online, which can help you get a sense of the rates available in Pittsburgh and your potential credit limit. Once prequalified, you can move forward with a full application, which entails providing more comprehensive financial and property information.
Step 1: Run the Numbers
First off, check your credit scores and calculate your DTI ratio. Then take a look at your home equity. That’s the difference between what your home is worth and how much you still owe on the mortgage. Making regular mortgage payments is a great way to build equity, but you can also boost it by making home improvements that increase your home’s value. The more equity you have, the better the terms and the more you can borrow with a HELOC.
Step 2: Compare Lenders
When considering HELOC options, be sure to look beyond just the interest rate. Compare qualification requirements, loan minimums and maximums, all associated fees, and the length of both the draw and repayment periods they’re offering. Examining these factors is important. It ensures you’re getting the most favorable terms tailored for your specific financial needs.
Step 3: Submit Your Application
Now get your paperwork in order. You’ll need to gather your identification, income verification, and property information. For income documentation, think recent pay stubs, W-2 forms, and tax returns. If you’re self-employed, a profit-and-loss statement and two years’ tax returns are usually required. Don’t forget to have a homeowners insurance declaration page ready. Once you’re all set, you can submit your HELOC application online, over the phone, or in person.
Step 4: Get an Appraisal
An appraisal is an unbiased, professional evaluation of your home’s worth. The cost generally ranges from $300 to $610. An accurate appraisal is important in determining the maximum amount you can borrow and in meeting the lender’s requirements.
Step 5: Prepare for Closing
Before you can access your HELOC funds, you’ll need to sign all the necessary loan documents and cover any associated fees. Once the official closing of your HELOC is complete, some lenders will have your funds ready within three days. Review the terms and conditions in the loan agreement thoroughly before signing. This way, you can avoid any unexpected surprises and ensure that your HELOC is tailored to your financial needs and expectations.
Closing Costs and Fees
HELOC closing costs are generally more affordable than those associated with home purchases or cash-out refinances. The appraisal fee, which can range from $300 to $610 or more, is often the most significant expense. A title search, if needed, may cost $100 to $450. Additional fees could include application, origination, and administrative costs, as well as annual maintenance fees (up to $250). Some lenders may also charge transaction, inactivity, or early termination fees.
Tax Benefits and Considerations
As a homeowner, you may be eligible to deduct the interest you pay on a HELOC, but only if the loan proceeds are used to substantially improve your primary residence. The current tax law governing this deduction is in effect through 2025. To help you understand the specific and potentially complex tax implications, consult a qualified tax advisor to confirm your eligibility for deductions related to HELOCs.
Alternatives to HELOCs
There are a few alternatives to a HELOC, including a home equity loan, cash-out mortgage refinance, and personal loan. Each option has its own pros and cons.
Home Equity Loan
In contrast to lines of credit, home equity loans deliver a one-time lump sum with a fixed interest rate and a predictable repayment schedule. Typically, you can access up to 85% of your home’s equity with this type of loan. Lenders often look for a credit score of 680 or higher, with many favoring 700 and above. If you need funds right away and prefer a clear-cut repayment plan, a home equity loan could be the right choice for you.
Cash-Out Refinance
A cash-out refinance is a great way to tap into your home’s equity by refinancing your mortgage for more than you currently owe and pocketing the difference. Typically, you need a credit score of 620 or more and a DTI ratio under 43%. You can choose between fixed or variable rates, with the latter potentially granting you more equity access. When weighing a cash-out refinance vs. home equity line of credit, the cash-out option gives you just one monthly payment.
Personal Loan
A personal loan is a versatile, typically unsecured loan that you repay in regular, fixed installments over a period of 2-7 years. The primary advantage of a personal loan is the security it offers your home. Should financial challenges arise, your home is not at risk of foreclosure. Many lenders look for a credit score of 670 or higher. While personal loans are relatively quick to secure, they often come with higher interest rates than HELOCs or home equity loans.
The Takeaway
When considering a HELOC, it’s important to weigh the benefits and risks. HELOCs offer flexibility and potentially lower interest rates, making them suitable for ongoing expenses or variable financial needs. However, they come with the risk of foreclosure if you default. Always compare multiple lenders and understand the terms and conditions before making a decision. For Pittsburgh homeowners, exploring current HELOC rates can help in making an informed choice.
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.
Unlock your home’s value with a home equity line of credit from SoFi, brokered through Spring EQ.
FAQ
Is a HELOC a good idea right now?
The answer to that question depends on your current financial landscape and the goals you’ve set. HELOCs can be a smart move when interest rates are on the decline, as they often offer more favorable terms than other types of loans. They’re particularly handy for sizable, ongoing expenses like home improvements or consolidating debt. But the variable interest rate can make payments unpredictable, and if you default, you could be facing foreclosure. So before you make a decision, take a good look at your financial stability and weigh the potential risks.
Do you need an appraisal for a HELOC?
Yes, an appraisal is typically required to obtain a HELOC. The appraisal helps determine the current market value of your home, which is important in determining the amount of equity you can borrow against. Lenders use this information to establish your credit limit, which cannot exceed 85% of your home equity. The appraisal is part of the application process and may involve a fee, typically ranging from $300 to $600.
What could prevent you from getting a home equity loan?
There are a few things that might stand in your way, like a less-than-stellar credit score, a high debt-to-income (DTI) ratio, or not enough equity in your home. Most lenders want to see a credit score in the upper 600s, a DTI ratio of 50% or less, and at least 20% equity in your home. If your home’s value has dropped or you still owe a lot on your mortgage, you might not meet the requirements. However, you can still take steps to improve your financial situation and get back on track.
How challenging is it to secure a HELOC?
Acquiring a HELOC can be quite manageable if you meet the lender’s criteria. The key is to have at least 15% equity in your home, a credit score in the upper 600s, and a debt-to-income (DTI) ratio below 50%. The application process involves the verification of income, assets, and property details, often including a home appraisal. While this process can be simpler than that of a home equity loan, it’s crucial to shop around for the best HELOC rates and terms to ensure you secure the most favorable deal.
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¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.
†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.
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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.
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.
SOHL-Q225-386
More HELOC resources.
-
What is a Home Equity Line of Credit
-
Different Types of Home Equity Loans
-
HELOC vs Home Equity Loan: How They Compare
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