SoFi Blog

Tips and news—
for your financial moves.

Jan
06
2025

Dear SoFi, I’m 41 years old. Where do I start at my age?!

By | | Comments Off on Dear SoFi, I’m 41 years old. Where do I start at my age?!

Dear SoFi, I’m 41 years old. Where do I start at my age?!

(submitted by Tina L. via SoFi’s Ambition Club on Facebook)

Dear Tina,

This is a broad question, but it sounds like you’re feeling late to the party. And you should know that plenty of people get overwhelmed by their financial situation and worry that they aren’t doing what they “should” be doing at a certain stage in life.

Thankfully, it’s never too late to take charge of your finances, and there are several good places to start.

Now, we don’t know your circumstances, but being in your 40s may mean you’re adapting to — or anticipating — some new responsibilities, like owning a house, having children or earning a more established income. Maybe you’re feeling behind because you have debt, lost a job, haven’t been building a savings, or just hadn’t thought much about managing your money before now.

No matter your situation and why you’re asking, don’t beat yourself up. Nearly half of Americans surveyed by Bankrate last year said their finances were negatively affecting their mental health. And as a country, we’re not where we need to be with financial literacy: On average, U.S. adults can only correctly answer basic financial knowledge questions about half the time.

Let’s begin with some simple steps that can give you (or anyone) more direction.

1.    Start by taking a financial inventory. This should include what you have (any savings or investments) and what you owe (through credit-card debt, auto or student loans, a mortgage, etc.) Also check your bank statements to figure out what your total expenses are, on average, each month.

2.    Use your inventory to set and then prioritize goals for yourself. Defining the things you want will help you to stay motivated. Maybe you’re tired of that relentlessly high credit card balance or worried about being unprepared for retirement. Maybe you want to take a vacation, renovate your bathroom, or make sure another major car repair doesn’t set you back like the last one. Whatever your goals, keep these two general rules of thumb in mind. If you don’t have a safety net — savings equal to one month’s worth of expenses — tackle that first. And if you have what we call “bad” debt (like a balance on a high-interest credit card,) work on paying that down second.

3.    Set up an emergency fund. Now that you’ve got that safety net, start building a bigger emergency fund. Generally we suggest setting aside enough to cover your living costs for three to six months, but there are emergency savings calculators to help you determine the ideal amount. (Here’s ours.) This should be established before you look into saving for long-term goals like retirement or your kids’ college education because the last thing you want is to be forced to put a large one-off expense on a high-interest credit card.

4.    Track your spending so you can create a budget. Mark what is a need versus a want. Ask yourself how much income you can free up by cutting back on your wants. This will help you determine whether you have wiggle room for saving or paying down debt faster. If there aren’t many wants, and you’re in the red most months, you’ll want to consider bigger, harder changes such as moving or trading in your car for a lower-cost model. But if you do have non-essential expenses, maybe you decide to eat out less frequently, make coffee at home, or take on some DIY house projects. (You might even discover that you’ve got streaming services or subscriptions you don’t use.) It all adds up.

5.    Start thinking about the rest. Once you’ve got your arms around these first four steps, start thinking about things like saving for retirement, choosing life insurance, and using a financial planner. But don’t feel pressure to tackle these immediately. The first priority is establishing good financial hygiene in your day-to-day spending and saving. Then build on that success.

6.    Stick with it (and whenever possible, make things automatic). Just like losing weight or learning a new language, being proactive about your finances requires repetition. One way to ensure consistency is to leave as little to willpower and memory as possible. Schedule regular deposits into a savings account, set up text alerts or recurring payments to get bills paid on time, or use a budget planning app (like SoFi’s Relay) to track your spending.

Lastly, don’t let yourself be discouraged by comparisons with others your age. People get their arms around their money at different stages of life, and having more life experience can give you a leg up. And, don’t be hard on yourself if you have a misstep. That will only derail your progress further. Just get back on the horse, as they say, and give yourself credit for taking this on. You’re on your way to a solid financial footing, and from there, anything is possible.

In financial health,

Kendall Meade,
CERTIFIED FINANCIAL PLANNER®

image credit: Bernie Pesko

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.

SoFi isn't recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.


OTM2025010601

Read more
Jan
06
2025

Starting 2025 With On the Money

By | | Comments Off on Starting 2025 With On the Money

For many Americans, January is a time to regroup — on your health and fitness, relationships, work, or finances.

But having the urge to make a change doesn’t always mean you know where to start, and that’s especially true with a topic as thorny as money. Most people don’t learn about interest rates, IRAs, or inflation in school, and chances are your parents didn’t talk much about those things either.

Even when you’re actively seeking to forge a more proactive financial path, it’s tough: News articles don’t always explain why you should care and educational pieces are often written in a vacuum. We started On the Money to help fill that void, offering news-driven insights and practical guidance.

In our first two months, we’ve covered why consumer prices will probably never go back to normal, how Donald Trump’s plan for tariffs could affect your finances, and why you might be stuck in that starter home for longer than you thought. We’ve outlined what you can do if your kid’s college plans change and if you’re struggling to cope with a fickle stock market. And we’re bringing some of these stories to Instagram, Tiktok and other social media to provide you with more ways to experience and respond to our work.

We know that managing your money can feel overwhelming, particularly right now — jobs are alarmingly scarce in some sectors, buying a house can cost a fortune, and many people with federal student loans are in yet another limbo. And then there are the sweeping shakeups Trump has promised when he returns to the White House later this month. There’s a lot of uncertainty.

But it’s our day job — and our privilege — to make sense of it all, and we want to engage you in a financial conversation that makes you feel empowered, not daunted. Our goal is to be a trusted resource in your financial life, and we’d love to hear how we’re doing so far, and what you’d like to see from us this year. We hope you’ll tell us by taking the survey that comes at the bottom of each of our newsletters.

Here’s to 2025 and a bright financial future.

Most sincerely,

Helen Reis
Deputy Editor, On the Money

image credit: Bernie Pesko

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.

SoFi isn't recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.


OTM2025010601

Read more
Jan
03
2025

Banking Wires

By | 1_Web_Banking | Comments Off on Banking Wires

{/* Banking Transfer Money 1/29/25 */}
{/* https://www.sofi.com/banking/transfer-money/ */}



Transfer Money

Move your money
 with ease.


Whether you’re sending funds to friends and family, moving money between your own accounts, or wiring money for a large purchase like a home or car, we make it easy to send money from the SoFi app or website.




Open an account

Already have an account? Transfer money now→

{/* Three ways to transfer money without leaving your couch. */}

Three ways to transfer money
without leaving your couch.

Move money between your accounts.

Move cash into a savings Vault, transfer money between your checking and savings balances, or invest in that stock you’ve been watching.

Set it and forget it with automatic transfers.

Set up recurring money transfers from your checking account to pay bills, stack your savings, or pay other people.

Transfer money from SoFi to another bank.

Whether you need to send a domestic wire transfer or make an ACH transfer or a Zelle® payment, we’ve got you covered.2


{/* How to tranfer money with sofi */}

    How to transfer money with SoFi.

  • Step 1: Log in to your account.

    Access your SoFi Checking and Savings account using the SoFi app or website.

  • Step 2: Select your transfer type.

    Sending money to a friend? Paying a bill? Just let us know what type of money transfer you need to make and for how much, and we’ll do the rest.

  • Step 3: Set up a frequency.

    Finally, choose how often you want to make your transfer. We have different cadence options based on the type of transfer you need to make.


    • Open an account

{/* The perks of sending money with sofi */}

The perks of sending money
with SoFi.

Yes, we make it fast and easy to send money online—but there’s more.

Send money with ease.

Send, receive, and transfer
funds—anytime, anywhere. The all-in-one SoFi mobile app makes moving your money a breeze.

Pay your friends and family2

SoFi members enjoy a quick turnaround and pay no fees for P2P and Zelle® payment options.

Move your money securely.

Keep your account safe with two-factor authentication and feel the security of a trusted ACH network when sending money.

Enjoy unlimited transfers
between accounts.

Move money between your SoFi Checking and Savings balances to your heart’s content. A few clicks in our app, and you’re done.


{/*FAQs*/}

FAQ


What is a wire transfer?


A wire transfer is a fast and convenient way to send money from one bank account to another. It’s often used for big purchases like homes or cars, or whenever you need to move a large amount of money fast.


How do I send a wire, and what info do I need?


Log in to your SoFi account on the app or web. Then navigate to Banking > Transfer > Wire transfer > Send a wire, and follow the instructions from there. You’ll need to know the recipient’s name, address, bank account number, and wire routing number.


Can I send a wire outside of the U.S.?


Not at this time. We only support wire transfers within the U.S.


How much does it cost to send a wire?


We charge a $30 fee to send a wire to cover the processing costs. This fee will be charged separately and only when your wire has been successfully processed.1


What if I want to send money to someone whose bank or credit union doesn’t offer Zelle®?


As of March 31, 2025, all users must be enrolled through one of the more than 2,200 banks and credit unions that offer Zelle® in order to send and receive money. You can find a full list of participating banks and credit unions live with Zelle® at Zellepay.com. If their bank or credit union is not listed, we recommend you use another payment method at this time.


See all FAQs


{/* More resources on money transfers */}

More resources on transferring money













{/* Make your money move */}

Make your money move.

Give your funds the freedom to move. Open a SoFi Checking and Savings account today.



Transfer money




Open an account


Read more
Jan
03
2025

December 2024 Market Lookback

By | | Comments Off on December 2024 Market Lookback

The usual strong ending to the investing year didn’t materialize this holiday season, as the S&P 500 fell 3% in the final two weeks of the month, one of its worst end-of-year performances since 1928 when records began. Still, stocks had a total return 25% for all of 2024, the second year in a row of stellar performance. Strong consumer spending, a solid labor market, and stubborn inflation data pushed the Federal Reserve to signal fewer interest rate cuts next year than markets were expecting going into the central bank’s December meeting. That drove Treasury yields higher, with the rise in yields concentrated in longer-term maturities.

Macro

•   The Fed lowered the fed funds rate by 25 basis points to a target range of 4.25%-4.50%.

•   In their quarterly Summary of Economic Projections, Fed officials raised their inflation expectations and signaled fewer interest rate cuts.

•   The unemployment rate ticked up from 4.1% to 4.2% in November, above expectations.

•   Housing starts fell 1.8% versus expectations for an increase of 2.6% in November.

•   Q3 GDP growth was revised up from 2.8% to 3.1%, with both consumer spending and net exports contributing.

•   The Conference Board’s consumer confidence index surprised to the downside at 104.7 versus the estimate of 113.2, driven primarily by a decline in the future component.

•   The Japanese Yen finished the month at its weakest level since before the Bank of Japan hiked its interest rate target at the end of July.

Equities

•   Large-cap growth stocks were the only size & style category to end the month with positive returns.

•   The Magnificent Seven stocks finished the month up 6.3%, significantly outpacing the rest of the market.

•   Forward 12-month earnings expectations rose 1% in December, while the 12-month P/E ratio contracted by over 3%.

•   Emerging market stocks ended the month roughly flat despite U.S. dollar appreciation, buoyed in part by the increase in oil prices.

Fixed Income

•   The 2y10y Treasury yield spread rose to 32.5 basis points in December, the highest level since May 2022, signaling that long-term growth and inflation may be structurally higher.

•   After bottoming as low as 82.4 on December 11, the MOVE Index (i.e. interest rate volatility) rose to 98.8.

•   High yield spreads rose to 287 basis points, their widest levels since mid-October.

•   10-year Chinese bond yields fell 35 basis points to 1.67%, setting a new record low.

The Santa Claus Rally Skipped Town

And just like that, another volatile year in markets came to a close. It was a great one for stock investors, as the S&P 500 ended the year up more than 23%. And just like in 2023, outperformance was concentrated in companies that were either larger and/or rapidly growing: Large-cap growth stocks rose over 33%, while small-cap value stocks gained a comparatively low 8%.

Investors may be starting off the new year with a slightly sour taste in their mouth, however. While the final two weeks of December typically see some of the best returns of the year, the traditional “Santa Claus rally” was notably absent last year. Compared with the average return of +2%, stock indexes fell 3% during the final two-week period, which ranks in the 94th percentile of worst returns going back to 1928.

Exactly why markets struggled to maintain momentum from earlier in the year is not fully clear. While conventional wisdom suggests that the increased dominance of passive investing can push the market higher during periods of lower trading volumes (like the holiday season when many people are out of the office), that wasn’t the case this time. Portfolio rebalancing, end of year tax-driven moves, and other non-fundamental factors could have had an effect, but it’s hard to pin it on any one thing.

Cut, But Make It Hawkish

The Federal Reserve’s December meeting marked a pivotal shift in monetary policy, with the fallout possibly contributing to Santa not coming to town. While the decision to lower the benchmark rate wasn’t a surprise, the central bank’s quarterly projections certainly were. Against investor expectations for three rate cuts in 2025, 14 of 19 Fed officials expected only two rate cuts or less next year – fewer than what the market was pricing in.

Fewer rate cuts and higher inflation expectations might be enough to explain why stocks trended lower to finish the year, but a look at Treasury yields tells us something deeper. 2-year yields are basically where they were the day of the Fed meeting, yet 10-year yields are 15 basis points higher. This suggests investors are digesting structurally higher interest rates, which translate into higher discount rates and pressure stocks.

Remember: Stock prices can be thought of as the present value of future cash flows. If future cash flows remain the same while the interest rate you use to discount them rises, that usually means a lower stock price. The fact that S&P 500 earnings estimates were steady while valuations contracted is supportive of this argument, but as we’ve seen market dynamics can shift rapidly. Any further changes to interest rate expectations are likely to play a critical role in market direction from her.

View PDF

Performance data quoted represents past performance. Past performance does not guarantee future results. Market returns will fluctuate, and current performance may be lower or higher than the standardized performance data quoted.

Read more
Dec
30
2024

Student Loan Forgiveness: Programs for Relief and Forgiveness

By | student_loan | Comments Off on Student Loan Forgiveness: Programs for Relief and Forgiveness

Student Loan Forgiveness: Programs for Relief and Forgiveness

Student Loan Forgiveness Programs

By Nancy Bilyeau

Key Points

•   The Biden administration has approved $175 billion in student debt relief for nearly 5 million borrowers, with an average of $35,000 forgiven per person.

•   The SAVE program, an income-driven repayment plan, is paused due to legal challenges and won’t resume until at least April 2025.

•   Public Service Loan Forgiveness (PSLF) continues to provide debt relief for government and nonprofit workers who meet eligibility criteria.

•   Other forgiveness options exist for teachers, nurses, doctors, lawyers, and military personnel, as well as state-based repayment assistance programs.

•   Student loan forgiveness scams are common—beware of offers that demand upfront fees, promise immediate cancellation, or request personal financial details.

March 2025: The SAVE Plan is no longer available after a federal court blocked its implementation in February 2025. Applications for other income-driven repayment plans and for loan consolidation are also on hold. We will update this page as more information becomes available.

If you are repaying a federal student loan, you naturally have a burning interest in the latest news on forgiveness programs available for those loans. Forgiveness for federal student loans has existed for over a decade, but over the last four years, the debt amounts canceled have soared and new paths to student-debt forgiveness have opened up.

During his administration, Joe Biden approved $175 billion in student debt relief for nearly 5 million Americans, each of whom has been approved for roughly $35,000 in student debt cancellation. On Dec. 20th, President Biden announced a new batch of debt forgiveness for ”another 55,000 public service workers.”

However, there have been considerable headwinds facing student loan debt forgiveness. In the summer of 2024, one of the most popular new forgiveness plans, Saving on a Valuable Education (SAVE), was paused due to court challenges. To compensate, two income-driven programs reopened for applications in December: Pay As You Earn (PAYE) and Income-Contingent Repayment (ICR).

Read on to learn where things stand with programs for relief and forgiveness of federal student loans for the 43 million Americans making payments on those loans.

Student Loan Forgiveness: A Brief History

All payments on federal student loans were paused in March 2020 because of the impact of COVID-19 shutdowns. After multiple extensions of the pause, President Biden ended the suspension and payments resumed in October 2023.

To deliver relief for struggling borrowers, President Biden announced a proposal to cancel up to $20,000 in federal student loan debt for those who met household income requirements. However, this proposal was struck down by the Supreme Court on June 30, 2023.

The same day that the Supreme Court announced its ruling, President Biden released news on three new initiatives for debt relief. Each of them proposed big changes for people paying back their federal student loans:

The SAVE plan

The new income-driven repayment program called the SAVE Plan calculates your monthly payment amount based on your income and family size. The plan offers greater benefits than other, existing income-driven plans. In January 2024, President Biden announced that beginning in February, people who took out less than $12,000 in federal student loans and have been in repayment for 10 years would get their remaining student debt canceled immediately.

Where things stand: The SAVE program is in limbo until at least April 2025 while the federal courts decide if Biden’s program is legal. During that time, the 8 million people enrolled in SAVE are in forbearance.

The On-Ramp Program

The On-Ramp Program was a temporary period, from September 2023 to September 2024, designed to prevent the worst consequences of missed, late, or partial payments. If payments on federal student loans were not made during this time period, they were not submitted as delinquent to credit-score agencies. However, payments were still due, and interest continued to add up.

Where things stand: On September 30, 2024, the On-Ramp program ended, and missing and late payments once more count against a borrower’s credit history.

Proposed New Federal Student Loan Relief Programs

Another initiative, sometimes called Plan B, proposed to target borrowers who:

•   Have balances greater than what they originally borrowed

•   Have loans that first entered repayment decades ago

•   Attended college programs that did not provide sufficient financial value

•   Are eligible for relief under programs like income-driven repayment but have not applied

•   Have experienced financial hardship that the current student loan system does not adequately address.

Where things stand: On Dec. 20th, 2024, the White House announced it was no longer pursuing this path to debt cancellation because the administration had run out of time.

What follows is an explanation of what forgiveness programs still exist.

What Is Student Loan Forgiveness?

Forgiveness of your loan means that you are no longer required to repay some or all of that student loan. In this context, “forgiveness” means absolving or giving up all claims on account of debt, loan, obligation, or another claim.

Before 2020, student loan forgiveness was connected to your type of job (public-service careers were targeted), how long you had made qualifying payments, and sometimes which populations you served.

The Covid-19-related pause on payments that lasted from March 2020 to October 2023 was the first time that financial hardship because of an economic crisis resulted in people being released from their federal student loans.



💡 Quick Tip: Enjoy no hidden fees and special member benefits when you refinance student loans with SoFi.

Student Loan Forgiveness for Government & Nonprofit Workers

President Joe Biden said it was a DOE priority to focus on helping student loan borrowers who have worked at a nonprofit, in the military, or in federal, state, tribal, or local government.

The government has been offering forgiveness on student loan debt held by people whose jobs serve the public for a number of years. However, many criticized these existing programs as too hard to understand and qualify for, and subsequently few people took advantage. The Biden Administration made efforts to “cut the red tape” and strengthen this type of forgiveness.

Public Service Loan Forgiveness (PSLF)

If you have worked full time in public service (federal, state, local, tribal government or a non-profit organization) for 10 years or more, you may be eligible to have all your student debt canceled.

Designed to steer people toward careers that help the public but might not pay a high salary, the Public Service Loan Forgiveness (PSLF) program cancels (or “forgives”) federal student loan debt for people holding certain public and nonprofit jobs after they have worked in these careers for a number of years.

On Dec. 20th, 2024, the White House announced the approval of $4.28 billion in additional student loan relief for 54,900 borrowers across the country who work in public service. “This relief — which is the result of fixes that the Biden Administration has made to the PSLF program — brings the total loan forgiveness by the administration to approximately $180 billion for nearly 5 million Americans, including $78 billion for 1,062,870 borrowers through PSLF.

Eligibility

Any U.S. federal, state, local, or tribal government agency is considered a government employer for the PSLF Program. This includes employers such as the U.S. military, public elementary and secondary schools, public colleges and universities, public child and family service agencies, and special governmental districts (including entities such as public transportation, water, bridge district, or housing authorities).

You can find out if you are eligible by using the PSLF Help Tool on the government website. It will help you learn what the next steps are if you qualify.

Requirements

To proceed with PSLF, you need to:

•   Be employed by a U.S. federal, state, local, or tribal government or qualifying not-for-profit organization (federal service includes U.S. military service);

•   Work full time for that agency or organization;

•   Have Direct Loans (or consolidate other federal student loans into a Direct Loan);

•   Be signed up to repay your loans under an income-driven repayment plan or a a 10-year Standard Repayment Plan; and

•   Make a total of 120 qualifying monthly payments that need not be consecutive.

Federal Perkins Loan Cancellation

A Federal Perkins Loan delivered need-based aid to college students as part of the Federal Direct Student Loan Program. It ended in 2017, but Perkins loan forgiveness programs are available.

Perkins loan holders who work in a public service position, such as teacher, nurse, or firefighter, can have their student debt partially or fully erased after working in these approved public service jobs for five years and making qualifying payments.

Eligibility

You qualify for cancellation of up to 100% of a Federal Perkins Loan if you have served full time in a public or nonprofit elementary or secondary school system as a:

•   Teacher in a school serving students from low-income families;

•   Special education teacher, including teachers of infants, toddlers, children, or youth with disabilities; or

•   Teacher in the fields of mathematics, science, foreign languages, or bilingual education, or in any other field of expertise determined by a state education agency to have a shortage of qualified teachers in that state.

Requirements

The cancellation rate per completed academic year of full-time teaching or for each year of otherwise qualifying full-time service is:

•   15% of the original principal loan amount for each of the first and second years;

•   20% of the original principal loan amount for each of the third and fourth years; and

•   30% of the original principal loan amount for the fifth year

Application Process

Application for cancellation or discharge of a Perkins Loan must be made to the school that made the loan or to the school’s Perkins Loan servicer, according to studentaid.gov. The school or its servicer can provide forms and instructions specific to your type of cancellation or discharge.

Student Loan Forgiveness for Teachers

While the PSLF offers forgiveness for teachers, there is another program, Teacher Loan Forgiveness, that helps people repay their federal loans. Note: Borrowers usually can’t receive credit toward Teacher Loan Forgiveness and PSLF for the same period.

Teacher Loan Forgiveness

Highly qualified teachers may be able to get forgiveness of up to $17,500 on their Direct Subsidized and Unsubsidized Loans and their Federal Stafford Loan.

Eligibility

Under this program, if you teach full-time for five complete and consecutive academic years in a low-income school or educational service agency and meet other qualifications, you may be eligible for forgiveness.

Requirements

To be a “highly qualified teacher,” you must have

•   attained at least a bachelor’s degree;

•   received full state certification as a teacher; and

•   not had certification or licensure requirements waived on an emergency, temporary, or provisional basis.

You’re considered to have received full state certification even if you received your certification through alternative routes to certification or bypassing the state teacher licensing examination.

If you’re a teacher at a public charter school, you are considered to have received full state certification as a teacher if you meet the requirements set forth in the state’s public charter school law.

Application Process

You apply for this forgiveness by submitting a completed Teacher Loan Forgiveness Application to your loan servicer after you’ve completed five consecutive years of qualifying teaching.

Student Loan Repayment Assistance Programs for Teachers

Some states also offer repayment programs for teachers. Among examples: The state of Tennessee has loan forgiveness for math and science teachers and Oklahoma has a Teacher Shortage Employment Incentive Program.

The American Federation of Teachers’ database will let you see if your state or local government offers separate forgiveness options.

Student Loan Forgiveness for Nurses

Nurses can pursue different programs for forgiveness of their student loans.

NURSE Corps Loan Repayment Program

Loan repayment is available to registered nurses (RN), nurse faculty (NF), and advanced practice registered nurses (APRN) through the Nurse Corps Loan Repayment Program. The program gives funding preference to those who need the most help financially.

Eligibility

To be eligible, you must have received your nursing education from an accredited school of nursing located in a U.S. state or territory. And you must work full time in an eligible Critical Shortage Facility (CSF) in a high-need area.

Requirements

If your application is accepted, you will receive 60% of your total outstanding, qualifying, nursing education loans over the course of two years. After your two-year service contract, you may be eligible for a third year and an additional 25% of your loans.

These funds are not exempt from federal income and employment taxes.

Application Process

Applications for the program can be found on the Nurse Corps website.

Student Loan Repayment Assistance for Nurses

In addition to the Nurse Corps Loan Repayment Program, loan holders can investigate the National Health Service Corps Loan Repayment Program (NHSC LRP), another student loan forgiveness option offered through the Health Resources and Services Administration.

Full-time nurse practitioners, psychiatric nurse specialists, and nurse-midwives may be able to cancel up to $50,000 of both federal and private student loan debt through the program. Part-time nurse practitioners and nurse-midwives may receive up to $25,000 in loan forgiveness.

In exchange for loan forgiveness, you must commit to at least two years of service at an NHSC-approved facility.

Student Loan Forgiveness for Doctors & Health Care Professionals

Medical professionals and healthcare workers have access to some respected student loan forgiveness programs. Their role during the pandemic as frontline workers made helping them with their loans a priority. Some of these programs forgive loans, while others provide money to student loan borrowers in the form of a loan repayment program.

Among the programs that help healthcare workers with their loans are Public Service Loan Forgiveness (PSLF), the Perkins Loan Cancellation, and the NIH loan repayment programs (LRPs).

National Health Service Corps (NHSC) Loan Repayment Assistance

Nurses are one category of worker getting student loan forgiveness from NHSC. Licensed primary-care clinicians in eligible disciplines can also receive loan repayment assistance through the NHSC Loan Repayment Program (NHSC LRP).

In exchange for loan repayment, you must serve at least two years of service at an NHSC-approved site in a Health Professional Shortage Area (HPSA).

Student Loan Forgiveness for Lawyers

With the hefty tuition bills they shoulder, lawyers would be understandably delighted to discover they qualify for student loan forgiveness.

One path to just that is Public Service Loan Forgiveness (PSLF), which provides tax-free forgiveness on federal direct loans to borrowers who work for public-service employers. As a lawyer, that means working full time for a government entity or a 501(c)(3) nonprofit.

Perkins loan forgiveness is another path for full-time public or community defenders who can have 100% of these loans forgiven over five years of service.

Many states provide assistance to lawyers focused on public service.

Military Student Loan Forgiveness and Assistance

Members of the Armed Forces may qualify for forgiveness of the remaining balance of their Federal Direct Loans through Public Service Loan Forgiveness (PSLF).

In addition, while you are on active duty, the government can waive many of the documentation requirements attached to federal student loan benefits. For example, if you are on an income-driven repayment plan and military service prevents you from providing updated information on your family size and income, you can request to have your monthly payment amount maintained.

Student Loan Forgiveness for Volunteers

If you are a Peace Corps or AmeriCorps volunteer, you may qualify for loan forgiveness. AmeriCorps Volunteers in Service to America focuses on alleviating poverty through partnerships with government agencies and nonprofit organizations. Participants in AmeriCorps VISTA, who perform tasks such as fundraising and grant writing, must commit to a one-year term of full-time service and may serve for up to five years in total.

After completing their service requirement, volunteers are eligible for the Segal Education Award or a cash stipend of $1,800, in which case the volunteer also may be eligible for up to 15% cancellation of certain kinds of student loans.

Student Loan Repayment Assistance from your Employer

Many employers subsidize their workers’ repayment of student loans as a benefit. The Internal Revenue Service says that in most cases, educational benefits are excluded from federal income tax withholding, Social Security tax, Medicare tax, and federal employment (FUTA) tax.

By law, tax-free benefits under an educational assistance program are limited to $5,250 per employee per year. Such policies serve as an incentive to keep valued employees. Ask your manager if they have a student loan repayment benefit.



💡 Quick Tip: Refinancing could be a great choice for working graduates who have higher-interest graduate PLUS loans, Direct Unsubsidized Loans, and/or private loans.

Student Loan Forgiveness by Federal Repayment Plan

Many federal student loan holders are eligible for an income-driven repayment plan at some point. An income-driven plan sets your monthly student loan payment at an amount that is intended to be affordable based on your income and family size. And borrowers who continue to qualify for an income-driven repayment plan and make their payments may eventually see their remaining loan balances be forgiven.

These options have changed in the last two years, but there are still ways to apply for an income-driven repayment plan.

The SAVE Plan

The SAVE Plan was put on pause because of a court challenge and is expected to remain in limbo until at least April 2025, the DOE says. During this time, SAVE enrollees do not make payments — the accounts are in forbearance. You can still apply for SAVE, but if you are accepted, your payments immediately go into forbearance.

When and if it is operating again, the SAVE Plan offers greater benefits than any other IDR plans. It could cut in half monthly payments for many borrowers with undergraduate loans, help some reach loan forgiveness more quickly, and cancel remaining debt for those who owe less than $12,000 and have made payments for at least 10 years.

Features to keep in mind:

•   The SAVE Plan is an IDR plan, so it bases your monthly payment on your income and family size.

•   The SAVE Plan lowers payments for almost all people compared to other IDR plans because your payments are based on a smaller portion of your adjusted gross income (AGI).

•   The SAVE Plan has an interest benefit: If you make your full monthly payment, but it is not enough to cover the accrued monthly interest, the government covers the rest of the interest that accrued that month. This means that the SAVE Plan prevents your balance from growing due to unpaid interest.

•   Loan balances will be forgiven for borrowers who have made payments under the plan for a certain period of time. If your loan balance is under $12,000, your balance will be forgiven if you’ve made 10 years of payments.

Two Income-Based Repayment Plans Reopened for Application

On Dec. 18th, 2024, the Department of Education announced that two forgiveness plans that had been retired because of SAVE would now reopen for applications. Why? Because SAVE going into forbearance means that those loan holders cannot make payments that count toward eventual cancellation of their loan. This is especially important for people who are trying to get their loans forgiven through PSLF. SAVE participants can consider switching to one of these plans or stick with SAVE and wait for the forbearance to end.

On the DOE website, a further explanation follows: “The Pay As You Earn (PAYE) Repayment and Income-Contingent Repayment (ICR) plans offer credit for Public Service Loan Forgiveness (PSLF) and income-driven repayment (IDR) to eligible borrowers enrolled in the currently enjoined Saving on a Valuable Education (SAVE) Plan, as well as additional terms that borrowers may wish to consider.”

Forgiveness With the PAYE Plan

The Pay As You Earn (PAYE) Plan is a repayment plan with monthly payments that are generally equal to 10% of your discretionary income, divided by 12, but never more than the 10-year Standard Repayment amount.

Eligibility

Your eligibility for PAYE depends on when you took out federal student loans. There are three parts to the “new borrower” requirement; and you must meet all three parts:

•   First, you must have had no outstanding balance on a Direct Loan or Federal Family Education Loan (FFEL) Program loan when you received a Direct Loan or FFEL Program loan on or after Oct. 1, 2007.

•   Second, you must have received (a) disbursement of a Direct Subsidized Loan, a Direct Unsubsidized Loan, or a Direct PLUS Loan for students on or after Oct. 1, 2011; or (b) a Direct Consolidation Loan based on an application that was received on or after Oct. 1, 2011.

Forgiveness with Income-Contingent Repayment (ICR)

Any borrower with eligible federal student loans can make payments under the Income-Contingency Repayment plan. ICR provides $0 payments for single individuals earning up to $15,060 ($31,200 for a family of four) and 20% of income above that amount. It also has an alternative payment formula that may result in lower payments for borrowers whose loan debt is low relative to their income.

This plan is the only available income-driven repayment option for parent PLUS loan borrowers. Although PLUS loans made to parents can’t be repaid under any of the income-driven repayment plans, parent borrowers may consolidate their Direct PLUS Loans or Federal PLUS Loans into a Direct Consolidation Loan and then repay the new consolidation loan under the ICR Plan (though not under any other income-driven plan).

Note: ICR may cost more each month than any of the other income-driven repayment plans. It caps payments at 20% of your discretionary income and lasts 25 years.

Student Loan Discharge for Special Circumstances

If you’re no longer required to make payments on your loans due to other circumstances, such as a total and permanent disability or the closure of the school where you received your loans, this is called discharge.

On Oct. 4, President Biden announced that the government was forgiving $1.2 billion for nearly 22,000 borrowers who have a total or permanent disability and have been identified and approved for discharge through a data match with the Social Security Administration.

The president also announced $22.5 billion for more than 1.3 million borrowers who were cheated by their schools, saw their institutions precipitously close, or are covered by related court settlements.

State-based Student Loan Repayment Assistance Programs (LRAPs)

Along with the student loan forgiveness options provided by the federal government — which are available to anyone anywhere in the U.S. — individual states have their own debt cancellation programs.

As of January 2024, all 50 states and the District of Columbia offered at least one student loan forgiveness program.

More information is available in the states themselves.

Student Loan Forgiveness for Private Education Debt

Most lenders of private student loans do not offer forgiveness for debt owed.

The exceptions are permanent disability and death. However, in some cases, the debt may be inherited by the surviving spouse or by a cosigner. It’s important to check your policy.

Some lenders do make individual arrangements if you contact them and make a case for severe reduction of income. Reach out to your lender to find out if any accommodation can be made or if refinancing would help.

What About Taxes on Student Loan Forgiveness?

The Internal Revenue Service considers canceled debt, including most forms of student loan debt forgiveness or student loan discharge, to be taxable income.

Fortunately, borrowers working toward loan forgiveness have been exempt from taxes thanks to the American Rescue Plan Act of 2021. This measure made forgiven student loans exempt from federal income taxes, but only for loans discharged between January 1, 2021, and December 31, 2022.

Also, student loan amounts forgiven under PSLF are not considered income for tax purposes. You won’t be taxed by the federal government, but your state may tax you. The DOE says on its website: “Any debt forgiven as a result of PSLF won’t create a federal tax liability for you.”

Various states have different policies about whether to tax forgiven student loan debt.

If you have debt forgiven, please contact an accountant to see what the consequences are for your tax return.

Student Loan Forgiveness Scams

Unfortunately, student loan forgiveness scams exist. Clues are when they promise immediate forgiveness, say the programs are “first-come, first serve,” ask for a fee to process your payment, or solicit you asking for bank or identity information upfront.

The Takeaway

The Biden Administration approved $175 billion in student debt relief for nearly 5 million Americans, each of whom have been approved for an average of roughly $35,000 in student debt cancellation. However, the SAVE program, an income-based repayment program chosen by over 8 million, is on hold until at least April 2025 because of court challenges. Other options do exist for federal loan repayment based on what you can pay. There are likely to be many more changes in debt relief and forgiveness in 2025, so it’s important to follow the news on student loan repayment.

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.


View your rate

Student Loan Forgiveness FAQ

Is there a legitimate student loan forgiveness program?

The U.S. Department of Education offers several legitimate programs that can reduce or eliminate federal student loan debt.

What qualifies you for student loan forgiveness?

For the student loan forgiveness programs that have existed for several years, like Public Service Loan Forgiveness, eligibility is based on the type of federal student loan you received, your income, and your chosen career. Only federal student loans are eligible for forgiveness.

How do I apply for student loan forgiveness?

Most forgiveness for student loans can be pursued through the federal Department of Education. Other forgiveness programs are available through your state. Also, some employers subsidize their workers’ student loans.

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.


Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

SOSLR-Q424-034

Read more
SoFi Daily

Stay up to date on the latest business news and stock market happenings.

Learn more

Terms and Conditions Apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. To qualify, a borrower must be a U.S. citizen or other eligible status and meet SoFi's underwriting requirements. Not all borrowers receive the lowest rate. Lowest rates reserved for the most creditworthy borrowers. If approved, your actual rate will be within the range of rates listed above and will depend on a variety of factors, including term of loan, evaluation of your creditworthiness, years of professional experience, income, and a variety of other factors. Rates and Terms are subject to change at anytime without notice and are subject to state restrictions. SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers, or may become available, such as Income Based Repayment or Income Contingent Repayment or PAYE. Licensed by the Department of Financial Protection and Innovation under the California Financing Law License No. 6054612. SoFi loans are originated by SoFi Lending Corp. or an affiliate, NMLS # 696891. (www.nmlsconsumeraccess.org)

✝︎ To check the rates and terms you qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.

INVESTMENTS: NOT FDIC INSURED • HAVE NO GUARANTEE • MAY LOSE VALUE. Investing in securities involves risks, and there is always the potential of losing money when you invest in securities. The SoFi Wealth platform is operated and maintained by SoFi Wealth LLC, an SEC Registered Investment Advisor. Brokerage services are provided to clients of SoFi Wealth LLC by SoFi Securities LLC, an affiliated broker-dealer registered with the Securities and Exchange Commission and a member of FINRA /SIPC . Clearing and custody of all securities are provided by APEX Clearing Corporation. For more information, please see SoFi Wealth LLC’s Form ADV Part 2 by clicking here for SoFi's Wealth Form ADV Part 2 A&B or by visiting www.adviserinfo.sec.gov .
©2025 Social Finance, LLC All rights reserved.
TLS 1.2 Encrypted
Equal Housing Lender