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Aug
07
2025

Current HELOC Rates in Evansville, IN Today

By | mortgage | Comments Off on Current HELOC Rates in Evansville, IN Today

EVANSVILLE HELOC RATES TODAY

Current HELOC rates in

Evansville.



Disclaimer: The prime rate directly influences the rates on HELOCs and home equity loans.


View your rate

Turn your home equity into cash. Call us for a complimentary consultation or get prequalified online.

Compare HELOC rates in Evansville.

Key Points

•   A home equity line of credit (HELOC) offers a revolving line of credit.

•   During the first 10 years of a HELOC, borrowers may only need to pay interest charges.

•   HELOC interest rates are variable, meaning they change with the market, potentially impacting your monthly payments.

•   You’ll need at least 15% home equity and a credit score of 640 or higher to qualify, but more equity and better credit can help you secure lower interest rates.

•   Online calculators can help borrowers figure out monthly payments and interest costs.

Introduction to HELOC Rates

Welcome to your comprehensive guide to home equity line of credit (HELOC) interest rates in Evansville, Indiana. Here, we’ll unravel the mystery behind these rates, helping you to understand the factors that sway them. You’ll discover the potential benefits and risks of HELOCs, learn how to secure a competitive rate, and find tools such as a HELOC interest-only calculator to estimate your costs. Whether you’re eyeing a HELOC for home improvements, to pay down higher-interest debt, or for other major expenses, this guide is your go-to for making smart choices.

What Is a HELOC?

The first step in learning how to get equity out of your home is understanding how a HELOC works. This type of borrowing uses the equity in your home as collateral. (Your equity is the difference between your home’s value and what you currently owe on your home loan.) So if you don’t make HELOC payments, you could face foreclosure. To qualify for a HELOC, you generally need at least 15% equity, a credit score of 640 or better, and a debt-to-income (DTI) ratio below 50%. But to get the best rates, you’ll need even better financial metrics (more on that below).

The Draw Period

The initial draw period for a HELOC can last up to 10 years. This stage is an important distinction between a HELOC vs. home equity loan. During the draw period, you only have to pay interest on the amount of the credit line you’ve borrowed. (With a home equity loan, you get a lump sum and start repaying principal plus interest immediately.)

The Repayment Period

After the draw period comes the 10- to 20-year repayment period when you stop borrowing and start repaying what you owe, plus interest. This is when a HELOC monthly payment calculator might be useful, because HELOCs have variable interest rates that can change with market conditions. This means your monthly payment won’t always be the same.

The Origin of HELOC Interest Rates

Lenders usually peg HELOC rates to the prime rate, a figure that responds to Federal Reserve policies. Each lender then adds their own touch, a margin, to the prime rate. But that’s not all. Your individual financial profile, including credit score, income, and the amount of equity you’ve built in your home, also enters the equation. This is why it’s smart to seek out rate quotes from multiple lenders before you make a firm decision about a HELOC.

How Interest Rates Impact HELOC Affordability

The interest rate you get for a HELOC will make a significant difference in what you pay over the lifetime of the credit line. To understand this, take a look at the chart, which shows how different rates and repayment terms impact total interest paid. For example, the difference between a 7.00% and 8.00% rate on a $100,000 HELOC can result in savings of roughly $14,000 over a 20-year repayment term. Because HELOCs have variable interest rates, your numbers won’t match these exactly. But it will give you a sense of the importance of shopping around for the best rate.

Repayment Amount Term Interest Rate Monthly Payment Total Interest Paid
$100,000 20 years 8.00% $836 $100,746
7.00% $775 $86,072
10 years 8.00% $1,213 $45,593
7.00% $1,161 $39,330
$50,000 20 years 8.00% $418 $50,373
7.00% $388 $43,036
10 years 8.00% $607 $22,797
7.00% $581 $19,665
$25,000 20 years 8.00% $209 $25,186
7.00% $194 $21,518
10 years 8.00% $303 $11,398
7.00% $290 $9,833

HELOC Interest Rate Trends

So what’s a good interest rate on a HELOC in Evansville? Having a sense of the history of the prime rate will help you gain perspective on this question. Since 2018, we’ve seen the prime rate dip to 3.25% in 2020 and peak at 8.50% in 2023. While some borrowers choose to wait for a rate drop before qualifying for a HELOC, if you need to borrow money now, focus on presenting the best possible qualifications to prospective lenders.

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


Variable vs. Fixed Interest Rates

As noted above, HELOCs have variable (also called adjustable) interest rates, which means rates can move up or down over time. If the prime rate goes up, your HELOC rate will likely follow. This can make your monthly payments harder to predict. However, a HELOC agreement usually spells out the allowed variance in rates and details a cap on rates. Knowing how adjustable rates work is important for managing your finances.

Helpful Tools & Calculators

As you’re researching borrowing options, you can use online calculators to estimate payments at various interest rates, based on how much of your credit line you think you might use. Bookmark these handy tools.

Run the numbers on your HELOC.

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

To secure a competitive HELOC rate, you’ll want to ensure your credit score and DTI ratio are in good condition before you apply. Follow these guidelines. And remember, shopping around and comparing offers from different lenders can be the key to finding the best deal.

Improve Your Credit Score

A credit score of 700 or above will help you secure the best interest rates for your HELOC. Making payments on time and keeping credit card balances low can give your credit score a lift. Regularly checking your credit report for inaccuracies and requesting corrections for any discrepancies can also help make you a more attractive borrower.

Calculate Your Debt-to-Income Ratio (DTI)

Your DTI ratio is a simple calculation that shows how much of your monthly income goes toward paying off debts. Divide your total monthly debt payments by your gross monthly income to find this number. HELOC lenders usually require a DTI below 45%, but for the most competitive rates, aim to get your DTI under 36% by paying down debt, increasing your earnings, or both.

Application Process for a HELOC in Evansville

Many lenders offer the option to prequalify for a HELOC online, which can make the application process much more straightforward. This initial step can give you a good idea of the HELOC rates in Evansville you might qualify for. Prequalifying typically only requires basic financial information, and the process can usually be completed quickly. After that, you’ll proceed to the application process.

Step 1. Run the Numbers

Check your credit scores and calculate your DTI ratio as detailed above. Assess your home equity as well, to make sure it’s at least 15%.

Step 2. Compare Lenders

Compare the interest rates and closing costs of different lenders. Also examine their qualification requirements, minimums and maximum credit lines, all associated fees, and the length of both the draw and repayment periods they’re offering. Look for lenders with the most favorable HELOC rates in Evansville and the terms that align with your specific financial goals.

Step 3: Submit Your Application

For an application, you’ll need to round up your ID, proof of income, and details about your property. Collect recent pay stubs, W-2s, and tax returns. If you’re self-employed, a lender might ask for a profit-and-loss statement and a couple years of tax returns. Have your homeowners insurance declaration page handy too. You can apply for a HELOC online, over the phone, or in person. It’s a pretty simple process once you have all your documents in order.

Step 4: Get an Appraisal

An appraisal is a professional, objective analysis of your home’s value in the current market. It will determine whether you get a HELOC and, if so, what your credit line is. Wait for the lender’s instructions about the appraisal, since not all lenders require an in-person appraiser visit. The cost of an appraisal can range from $300 to $610. If your home appraises for more than the balance you owe on your mortgage, you may be approved for a HELOC.

Step 5: Prepare for Closing

Before you can access your HELOC funds, you’ll need to sign your documents and pay any fees. Some lenders make your approved funds available within about three days after you close. To prepare for closing, you’ll want to review your documents carefully and make sure you understand all the terms and conditions. This will help you understand what you’re getting into and how to manage your HELOC responsibly.

Recommended: Different Types of Home Equity Loans

Closing Costs and Fees

HELOC closing costs are generally lower than those for home purchases or refinances. Appraisal fees are typically the largest expense, though a title search can run you $100 to $450. Annual maintenance fees can be as high as $250. Lenders may also charge transaction, inactivity, or early termination fees. You’ll want to look closely at fees before you lock in a lender for your HELOC.

Tax Benefits and Considerations

You may be able to deduct the interest on a HELOC on your federal taxes, if you’re using the money you borrow to make significant improvements on your home. This policy applies in 2025; keep in touch with a tax advisor to understand tax implications for future years and to determine if you qualify for the deduction. You’ll have to itemize your tax return in order to take advantage of this deduction.

Alternatives to HELOCs

If a HELOC doesn’t feel quite right, there are other options to consider. Each of these has its own pros and cons, so take the time to weigh them up and find the perfect fit for your financial needs.

Home Equity Loan

With a home equity loan, you get a one-time lump-sum loan and a fixed interest rate. You can usually borrow up to 85% of your home equity. Lenders often look for a credit score of 680 or higher, with many leaning toward 700, in order for borrowers to qualify. If you’re someone who likes a fixed interest rate and a predictable payment amount, this might be a good fit for you. You can use a home equity loan calclator to see how much you might be able to borrow.

Cash-Out Refinance

A cash-out mortgage refinance lets you refinance for more than you already owe and take the difference in cash. It can be a wise move if the interest rate on a new mortgage would be better than your current rate. Things to consider with a cash-out refinance vs. a home equity line of credit: With a refinance you’d need a credit score of 620 or higher and a DTI ratio under 43%. A refinance also allows you to choose between fixed or variable interest rates.

Personal Loan

A personal loan is typically an unsecured loan that you repay in regular, fixed installments over two to seven years. The key benefit here is that your home is not at risk of foreclosure should you be unable to make your loan payments. Most lenders look for a credit score of 610 or higher when considering a personal loan application. While these loans are relatively quick to secure, the interest rates may be higher compared to HELOCs or home equity loans.


The Takeaway

As you mull over the idea of a HELOC, consider the pros and cons. They’re flexible and useful for ongoing expenses or big projects. But remember, they’re not without risk — missed payments could lead to foreclosure. Always take the time to shop around for the best HELOC rates and terms. It never hurts to get another quote before you make a firm decision.

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.

View your rate


FAQ

What can you use a HELOC for?

A HELOC is extremely versatile. You can borrow money in increments of any size (up to your credit limit) at any time during the HELOC draw period, which is usually a decade. You might use it to pay for a major renovation or a series of minor upgrades. You could cover college classes or a new car. You could also use it to pay off high-interest debt. Whatever you use the HELOC for, the important thing is to understand how much you will need to pay when it’s time to pay it off.

What’s the monthly payment on a $100,000 HELOC?

The monthly payment on a $100,000 HELOC can vary based on how much you have used of the credit line, the interest rate, and whether you are in the draw or repayment period. During the draw period, you pay only interest. In the repayment period, you will need to pay the principal plus interest. If you used the entire $100,000 credit line and paid it back at 8.00% over 10 years, you would pay $1,213 per month.

Is an appraisal required for a HELOC?

A home appraisal is normally required for a home equity line of credit, as it helps to establish the value of your property and the equity that you have. This figure is important for lenders to determine the maximum credit limit for your HELOC. The standard credit limit is often 90% of your home equity.

How tough is it to get a HELOC?

The process of securing a HELOC is quite manageable, provided you meet the lender’s criteria. Generally, a minimum credit score of 640, a debt-to-income (DTI) ratio below 45%, and at least 15% equity in your home are typically the basic prerequisites, though to get the best interest rates you want a higher credit score, lower DTI, and more equity.

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

SoFi 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.


*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.


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.


Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

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


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


SOHL-Q225-364

Browse other Indiana home guides.

Browse HELOC rates by state guides.

More HELOC resources.

Turn your home equity into cash. Call us for a complimentary consultation or get prequalified online.

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Aug
07
2025

Current HELOC Rates in Sacramento, CA Today

By | mortgage | Comments Off on Current HELOC Rates in Sacramento, CA Today

SACRAMENTO HELOC RATES TODAY

Current HELOC rates in

Sacramento, CA.



Disclaimer: The prime rate directly influences the rates on HELOCs and home equity loans.


View your rate

Turn your home equity into cash. Call us for a complimentary consultation or get prequalified online.

Compare HELOC rates in Sacramento.

Key Points

•   A home equity line of credit (HELOC) offers a revolving line of credit with a variable interest rate.

•   To qualify for a HELOC, you’ll generally need to have at least 15% equity in your home.

•   Lenders will also look at your credit score, debt-to-income ratio, and home equity when deciding what interest rate to offer you.

•   You can use a HELOC for a variety of things, like home improvements or paying off high-interest debt.

•   HELOC interest rates are often lower than those for unsecured personal loans.

Introduction to HELOC Rates

Welcome to our comprehensive guide on HELOC rates in Sacramento, California. We’re here to help you understand how to qualify for the best rates, learn about the factors that influence HELOC rates, and discover the benefits and risks of HELOCs. Whether you’re dreaming of a home renovation, looking to consolidate debt, or have a significant expense on the horizon, we’re here to equip you with the knowledge to make a well-informed financial decision.

What Is a HELOC?

A HELOC, or home equity line of credit, is a revolving credit line secured by your home equity (the value of your home, less the amount you owe on your existing home loan). Most lenders require homeowners to have at least 15% equity in their home to qualify for a HELOC. You can typically borrow up to 90% of your equity. HELOCs have two phases: draw and repayment.

The Draw Period

This is typically the first five of 10 years of a HELOC. During this time you can draw money from the credit line, up to whatever ceiling you have, and only pay interest on the amount that you have used. You can repay the principal and then draw again, but most lenders don’t require you to repay — just to pay interest. A HELOC interest-only calculator is helpful during the draw phase.

The Repayment Period

The repayment period is typically 10 to 20 years. This is when you’ll stop drawing on the credit line and begin to pay back principal and interest. HELOC interest rates are usually variable, which means your rate can change many times over your repayment period, going up or down. Monthly payments aren’t always the same so a HELOC monthly payment calculator may be useful.

The Origin of HELOC Interest Rates

Interest rates for HELOCs and different types of home equity loans are tied to the prime rate, which is influenced by the Federal Reserve’s policies. Each lender adds a margin to the prime rate, which is why interest rates can vary so much — and why you will want to seek out HELOC quotes from multiple lenders. Lenders also consider individual borrower factors, such as credit score, debt-to-income (DTI) ratio, income, and the amount of equity in the home. So each lender may make you a slightly different offer.

How Interest Rates Impact HELOC Affordability

As you are thinking about how to get equity out of your home, you’ll come to see that the initial interest rate on your HELOC is a big deal. Even though the HELOC’s rate can rise and fall, these changes are based on whatever rate you originally obtain.

Let’s say you had a $50,000 HELOC and you borrowed the full amount. During a 10-year repayment period, when you’re paying down the principal plus interest, if you had an interest rate of 8.50%, your monthly payment would be $620. If your interest rate was 9.50%, your monthly payment would be $647. The difference might not seem that substantial, but over a decade, you would pay several thousand dollars more in interest with the higher rate.

(Remember, due to a HELOC’s variable rates, real-world results on a $50,000 HELOC may differ. What won’t change? Securing the lowest possible costs for your HELOC is always a good thing.)

HELOC Interest Rate Trends

Monitoring the prime rate can give you a sense of where HELOC rates in Sacramento may be headed. And looking at the history of the rate can offer perspective on whether the numbers you are seeing from lenders are relatively high or low. The prime rate was at a low 3.25% in 2020 and hit 8.50% in 2023. Understanding this range is helpful. Some borrowers try to time their application for a HELOC to a dip in the prime rate, but it isn’t always possible.

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

As we’ve noted, HELOCs usually come with adjustable rates that can change over time. While they often begin lower than fixed rates, they rise and fall with the market. The HELOC agreement will spell out periodic and lifetime rate caps: how often the variable rate can change and how much it can rise or fall in a given period, as well as how much it can increase over the life of the HELOC.

Helpful Tools & Calculators

Before you apply for a HELOC or a home equity loan, you can use online tools to estimate monthly payments and interest costs. Here are three you’ll probably use again and again:

Run the numbers on your HELOC.

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

To snag a competitive HELOC rate, you’ve got to meet a few key requirements. In addition to having 15% equity in your home, you’ll need to examine your credit score and DTI ratio. Here’s how:

Improve Your Credit Score

To ensure you’re in the position to secure the best available HELOC rate, you’ll want a credit score of 700 or higher. The good news is, you have the power to change your score. Making timely payments and reducing credit card balances are two effective strategies. Also, be sure to check your credit report for any errors and dispute them if necessary. Keeping old credit accounts open and using them responsibly can also work in your favor. You can get a HELOC with a score as low as 640, but for great rates, 700 is the goal.

Calculate Your Debt-to-Income Ratio (DTI)

Your DTI ratio is a simple equation: your monthly debt payments divided by your gross monthly income. HELOC lenders generally prefer a DTI under 50%, but for the best interest rates, you’ll want to get your DTI to 36% or less.

Application Process for a HELOC in California

Many lenders offer the convenience of prequalification for a HELOC online, which allows prospective borrowers to view rates they might qualify for. Once you’ve looked around at different lenders and gotten some initial quotes, the next step is to file a full application. This is how that process works:

Step 1. Run the Numbers

Start by checking your credit scores and calculating your debt-to-income ratio as described above. Also take a look at your home equity. Subtract your mortgage balance from your home’s estimated value, then divide the answer by the home value to get a percentage of equity. If it’s 15% or greater, you could proceed with the application process. The more equity you have, the better position you’re in.

Step 2. Compare Lenders

See what interest rate offers you might qualify for, but then do a deeper dive into the lenders that seem most promising. Look at qualification requirements, minimums and maximums, fees, and the length of both the draw and repayment periods they’re offering. Comparing multiple lenders can help you find the best HELOC rates in Sacramento and the terms that best fit your specific financial needs.

Step 3: Submit Your Application

Once you have identified the HELOC rate and terms that look best, you’ll do a full application. Gather your ID, proof of income, and details about the property you’re using as collateral. For income verification, you might need to show pay stubs, W-2s, and tax returns. If you’re self-employed, a profit-and-loss statement and a couple years’ worth of tax returns could be on the list. Also have your homeowners insurance declaration page handy. You can submit an application online, over the phone, or in person. Just doublecheck everything you type in is accurate to keep things moving along smoothly.

Step 4: Get an Appraisal

After you’ve filed your application, a lender will require an appraisal. The appraisal determines how much you can borrow and the rates you’ll be offered. A pro will give your home an objective once-over to figure out its value. (Some lenders use a computer program to estimate value; others require a home visit.) The typical cost ranges from $300 to $610. If your home’s value comes in higher than what you owe, your lender might just greenlight that HELOC.

Step 5: Prepare for Closing

Before you can access your HELOC funds, you’ll need to sign your HELOC agreement and pay any necessary fees. Some lenders make funds available within three days following the closing of the HELOC. Prepare for closing by reviewing all documents carefully and understanding the terms and conditions. Make sure you have the required funds to cover any fees.

Closing Costs and Fees

The good news is that HELOC closing costs are generally more affordable than what you’d encounter with a home purchase or refinance. The most significant expense is often the appraisal fee. A title search, if needed, might add another $100 to $450 to the tab. You could also face application, origination, and administrative fees, along with annual maintenance fees (up to $250). Keep an eye out for potential transaction, inactivity, or early termination fees, too. These will be detailed in the HELOC agreement.

Tax Benefits and Considerations

Here’s something that can take the sting out of HELOC fees: The interest you pay on a HELOC could be tax-deductible. During 2025, if you use the HELOC to make significant improvements on your home and you itemize the interest costs on your return, you can usually deduct them. And in the future, interest on HELOCs used for any purpose could be deducted. You’ll want to see a tax advisor about your specific situation.

Alternatives to HELOCs

Other options besides HELOCs include home equity loans, cash-out refinancing, and personal loans. Each of these has its own set of benefits and considerations, so it pays to evaluate these options to find the best fit for your financial goals.

Home Equity Loan

A home equity loan is a lump-sum loan with a fixed interest rate. Typically, you can borrow up to 85% of your equity with this type of loan which, like a HELOC, uses your home as collateral. A home equity loan calculator can help you figure out how much you might borrow. Lenders generally look for a credit score of 680 or higher, but for the best rates you’ll need 700 and above. When comparing a HELOC vs. a home equity loan, note that the latter has fixed interest rates and a consistent monthly payment amount over the entire term.

Cash-Out Refinance

A cash-out refinance is a mortgage refinance that allows homeowners to get a new mortgage for more than they owe on their original loan. They then receive the difference in cash. For a cash-out refi, you’ll need a credit score of 620 or more and a DTI ratio under 43%. One cash-out refinance vs. a home equity line of credit. point of difference: A refi leaves you with a single monthly payment instead of two. Because it’s an entirely new mortgage, you can choose the loan term and decide between a fixed or variable rate.

Personal Loan

A personal loan is a versatile, typically unsecured loan that you repay in regular, fixed installments over a period of two to seven years. The key benefit here is that the loan is not guaranteed with your home, so your dwelling is not at risk of foreclosure in times of financial strain. Many lenders look for a credit score of 670 or higher when considering a personal loan application. While the process is often swift, do note that personal loans may carry higher interest rates than HELOCs or home equity loans.


The Takeaway

When you’re mulling over a HELOC, it’s important to weigh the pros and cons. A HELOC is flexible — you borrow what you need, when you need it — and might offer lower interest rates than a personal loan. But defaulting could mean losing your home, so you’ll want to make sure you have a plan in place to repay what you owe. For those in Sacramento, exploring HELOC rates and taking the time and effort to search for the lowest available costs can help you find the HELOC that’s the best fit for your financial needs.

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.

View your rate


FAQ

What can you use a HELOC for?

The money you borrow with a HELOC, or home equity line of credit, can be used for any purpose. Common uses include paying for home renovations and debt consolidation. HELOCs offer the flexibility to draw funds as needed and pay interest only on the amount of the credit line that you have used. This makes them a versatile financial tool for significant expenditures and larger projects.

What’s the monthly payment on a $100,000 HELOC?

The monthly payment on a $100,000 HELOC can vary greatly depending on the interest rate and the repayment period. During the draw period, which can last 5, 10, or even 20 years, you may only need to pay interest on the amount you’ve borrowed, which isn’t necessarily going to be the full $100,000. If you did use the entire credit line of $100,000, your interest rate for repayment would likely be a variable one. But at an average of 8.00% and a repayment term of 20 years, you would pay $836 per month.

Do you need an appraisal for a HELOC?

The appraisal is a critical step in the process of obtaining a HELOC, or home equity line of credit. It helps the lender understand the value of your home, which in turn determines the amount of equity you have available to borrow.

How tough is it to get a HELOC?

A HELOC is quite attainable if you meet the lender’s criteria. They typically look for a minimum credit score of 640, a debt-to-income ratio under 45%, and at least 15% equity in your home. The application process involves a few steps, such as checking your credit score, comparing lenders, submitting documents, getting a home appraisal, and preparing for the closing.

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

SoFi 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.


*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.


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.


Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

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


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


SOHL-Q225-362

Browse other California home guides.

Browse HELOC rates by state guides.

More HELOC resources.

Turn your home equity into cash. Call us for a complimentary consultation or get prequalified online.

Read more
Aug
07
2025

Current HELOC Rates in Dayton, OH Today

By | mortgage | Comments Off on Current HELOC Rates in Dayton, OH Today

DAYTON HELOC RATES TODAY

Current HELOC rates in

Dayton, OH.



Disclaimer: The prime rate directly influences the rates on HELOCs and home equity loans.


View your rate

Turn your home equity into cash. Call us for a complimentary consultation or get prequalified online.

Compare HELOC rates in Dayton.

Key Points

•   Home equity line of credit interest rates in Dayton are influenced by the prime rate and by the individual borrower’s financial metrics.

•   HELOCs provide a revolving line of credit with variable interest rates.

•   The draw period usually spans 10 years, with a subsequent 10 or 20-year repayment phase.

•   Shop around and compare offers from different lenders to get the best available interest rates.

•   You can use a HELOC for a variety of purposes, from home improvements to debt consolidation.

Introduction to HELOC Rates

If you’re thinking about how to get equity out of your home and considering a home equity line of credit (HELOC), we’re here to help you understand the ins and outs of current interest rates and how to get your best possible rate based on your financial profile. Along the way, we’ll equip you with the knowledge you need to make an informed decision about borrowing. We’ll discuss the benefits and potential pitfalls of HELOCs and provide tools to help you estimate your monthly payments and interest costs. Step one? Let’s make sure you know what a home equity line of credit is, exactly.

What Is a HELOC?

A HELOC is a flexible line of credit that uses your home’s equity (the value of your home minus the amount you owe on it) as collateral. While real estate sites can provide a rough estimate of your home’s value, a lender will require a formal appraisal before making a HELOC offer, just as it did when you got your original home loan. Most lenders require you to have 15% equity in your home to qualify for a HELOC (or its cousin, a home equity loan). You can typically borrow up to 90% of your home equity with a HELOC. It’s important that you have a plan to repay a HELOC, because if you miss payments you could risk foreclosure.

A HELOC has two phases, each with different parameters:

The Draw Period

During the HELOC’s draw period (usually 10 years) you can use funds from the credit line in increments, as needed. You’ll have to pay interest on what you borrow, but most lenders won’t require you to pay down the principal — although you can do so if you wish to draw on the credit line again.

The Repayment Period

After the draw period ends, the repayment period of between 10 and 20 years begins. Monthly payments will increase as you begin to repay the principal plus interest. HELOC interest rates are usually variable, which means the amount you pay each month may go up or down as rates change.

The Origin of HELOC Interest Rates

Lenders peg their rates on different types of home equity loans to the prime rate, which in turn is affected by Federal Reserve policy. Each lender adds a margin to the prime rate, which is why you’ll find different HELOC rates in the Dayton market. Your own financial profile, including your credit score, debt-to-income (DTI) ratio, and home equity level, will play a role in the rate you’re offered. We’ll dig into the specific requirements below.

How Interest Rates Impact HELOC Affordability

The interest rate on your HELOC can make a big difference in how much you pay each month and over the life of the loan. Let’s imagine that you had a $50,000 HELOC and you borrowed the full amount. During a 10-year repayment period, when you’re paying down the principal plus interest, if you had an interest rate of 8.50%, your monthly payment would be $620. If your interest rate was 9.50%, your monthly payment would be $647. The difference might not seem that substantial, but over a decade, you would pay several thousand dollars more in interest with the higher rate.

Both the interest rate and the length of the repayment term affect costs over the long haul, as you can see from this chart. (Remember, due to a HELOC’s variable rates, real-world results may differ somewhat.)

Repayment Amount Term Interest Rate Monthly Payment Total Interest Paid
$100,000 20 years 8.00% $836 $100,746
7.00% $775 $86,072
10 years 8.00% $1,213 $45,593
7.00% $1,161 $39,330
$50,000 20 years 8.00% $418 $50,373
7.00% $388 $43,036
10 years 8.00% $607 $22,797
7.00% $581 $19,665
$25,000 20 years 8.00% $209 $25,186
7.00% $194 $21,518
10 years 8.00% $303 $11,398
7.00% $290 $9,833

HELOC Interest Rate Trends

As you’re considering a HELOC, it helps to have a sense of the history of the prime rate, so that you will have perspective on whether the rates you’re seeing in the marketplace are high, low, or somewhere in between. The prime rate saw a low of 3.25% in 2020, for example, and a high of 8.50% in 2023.

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


Helpful Tools & Calculators

Before you apply for a HELOC, you can use online tools to estimate your monthly payment and interest costs. A HELOC interest-only calculator can shed light on what payments would be during the draw period, while a HELOC payment calculator can estimate repayment costs.

Run the numbers on your HELOC.

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

There are a couple things you can do in advance of filing a HELOC application that will help you get the best available rate. This is your to-do list:

Strengthen Your Credit Score

A credit score of 700 or higher is the magic number for securing the best HELOC interest rates. Cultivate a strong score by staying on top of payments and chipping away at credit card balances. It’s also wise to give your credit report a once-over for any inaccuracies and dispute them if need be. Avoid opening new credit accounts in the months leading up to your HELOC application.

Calculate Your Debt-to-Income (DTI) Ratio

Your DTI ratio is a simple calculation: Add up your total monthly debt payments (car payment, student loan, etc.), then divide by your gross monthly income. Most HELOC lenders prefer a DTI under 50%, but aiming lower is always a good idea. A DTI below 36% can open the door to a HELOC with more attractive terms.

Application Process for a HELOC in California

Many lenders offer the convenience of prequalifying for a HELOC online, which can give you a clear picture of the rates available in Dayton and the amount you could potentially borrow. Once prequalified, you can move forward with the full application, which usually involves submitting comprehensive financial and property information. Prepare ahead of time by understanding the steps involved.

Step 1. Run thr Numbers

First off, check your credit scores and calculate your DTI ratio as noted above. Also assess your home equity, which is the difference between your home’s value and the outstanding mortgage balance. The more home equity you have, the better when borrowing with a HELOC, but you’ll need at least 15% equity to proceed.

Step 2. Compare Lenders

See what offers you might qualify for when it comes to interest rates, but also compare lenders’ qualification requirements, loan minimums and maximums, fees involved, and the length of the draw and repayment periods they’re offering. Different lenders serving the Dayton area may have varying HELOC rates and terms, so it’s important to shop around and carefully find the best deal.

Step 3: Submit Your Application

Gather all the paperwork that shows who you are, what you earn, and what you own so you can complete a lender’s application. You’ll need recent pay stubs, W-2 forms, and tax returns. If you’re self-employed, a lender might ask for a profit-and-loss statement and a couple years’ worth of tax returns. Also have your homeowners insurance documents handy for your property. You can submit your application online, over the phone, or in person.

Step 4: Get an Appraisal

An appraisal is a pro’s estimated value of your home, and typically costs between $300 and $610. A prospective lender will tell you what kind of appraisal is required, so wait for instruction after filing your application. If your appraisal comes in significantly higher than your mortgage balance, that’s a green light for a HELOC and you will be one step closer to closing.

Step 5: Prepare for Closing

Before you can access your HELOC funds, you’ll need to sign the loan documents and pay the associated fees. Some lenders can make the funds available as soon as three days after the HELOC is closed. In the meantime, get ready for the closing by giving all the documents a thorough review and making sure you’re clear on the terms and conditions. Have the necessary funds ready to cover the closing costs.

Tax Benefits and Considerations

You’ll be glad to know that you can deduct the interest on your HELOC if the funds are used to improve your primary residence. Deductions are limited to interest on the first $375,000 of the HELOC principal for individual taxpayers, or $750,000 for married couples filing jointly. A tax advisor can help you to navigate specific tax implications and confirm eligibility.

Closing Costs and Fees

The good news is that HELOC closing costs are generally less than those for home purchases and cash-out refinances. The most significant cost is usually the appraisal, which can run from $300 to $610 or more. Other fees may include application, origination, title search, and administrative costs. Some lenders charge an annual maintenance fee. In some cases, lenders may reduce or waive fees but they often increase the interest rate to compensate. Make sure to compare offers from several lenders.

Alternatives to HELOCs

There are other ways to tap your home’s equity or to borrow money without putting your home on the line as collateral. It’s worth exploring these options before committing to a HELOC.

Home Equity Loan

Home equity loans are a smart option for those who prefer to borrow a lump sum of money all at once, with a fixed interest rate and predictable monthly payments. You can typically borrow up to 85% of your home’s equity, and most lenders look for a credit score of 680 or higher, with 700 or more being preferred. When deciding on a HELOC vs. a home equity loan, one question to ask yourself is, are you pretty sure you know how much you need to borrow, and do you need it all at one time? If so, a home equity loan could be the better fit. These loans are ideal for significant, one-time expenses like home improvements or consolidating debt.

Cash-Out Refinance

A cash-out refinance is a mortgage refinance that lets you trade in your current mortgage for a new, larger loan. You get the difference between the two loans in cash to use as you see fit. It’s another possible option if you need a substantial sum of money all at once. With a credit score of 620 or above and a DTI ratio under 43%, you could secure this type of refinance. As you contemplate a cash-out refinance vs. a home equity line of credit, one thing to consider is whether your current interest rate on your home loan is a relatively low one, in which case it might make more sense to go with a HELOC. If your current rate isn’t the greatest, a refi might be a good idea. Compare costs directly to make the best decision.

Personal Loan

A personal loan doesn’t require putting your home on the line and can be used for any purpose. It is repaid in regular, fixed installments over a term ranging from 2 to 7 years. Many lenders require a credit score of 580 or above for personal loans, though a score of 700 will get you a better rate. While these loans are relatively quick to obtain, they often come with higher interest rates than HELOCs because they are unsecured.


The Takeaway

When considering a HELOC in Dayton, it’s important to weigh the benefits and drawbacks. HELOCs offer lower interest rates than personal loans and flexibility in borrowing, but they have variable rates that can make monthly payments somewhat unpredictable. Before applying, assess your credit score, DTI ratio, and make sure you have adequate home equity. Compare offers from multiple lenders to find the best interest rate.

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

Unlock your home’s value with a home equity line of credit from SoFi, brokered through Spring EQ.

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FAQ

What’s the monthly payment on a $100,000 HELOC?

The monthly payment on a $100,000 HELOC can fluctuate depending on how much of the credit line you have used and the current interest rate. If you borrow the full $100,000 during the draw period and have an 8.00% rate, you might only pay around $667 per month, covering the interest. Once the repayment phase kicks in, you would start paying down the principal, which will adjust your monthly payment upward to $1,213.

Do you need an appraisal for a HELOC?

An appraisal is typically required for a HELOC. This step is crucial as it determines your home’s current market value, which in turn helps to calculate the amount of equity you can borrow against. Getting a professional appraisal according to your lender’s instruction is key to securing the best HELOC terms.

How challenging is it to secure a HELOC?

Gaining approval for a HELOC is within reach if you meet the lender’s criteria. Lender requirements vary, but the basic prerequisites are a credit score of at least 620, a debt-to-income ratio below 50%, and a home equity level of 15%. The best interest rates go to those with a credit score of at least 680 and a DTI ratio of 36%. The application process includes submitting financial records and arranging for a home appraisal.

How does a HELOC affect your credit score?

The mere act of opening a HELOC can cause a slight dip in your credit score due to the necessary hard credit inquiry by a prospective lender. But use your HELOC responsibly — make timely payments and keep balances in check — and you may actually see an improvement in your score. On the flip side, missing payments or maxing out your HELOC can be detrimental.

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

SoFi 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.


*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.


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.


Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

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


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

SOHL-Q225-267

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Browse HELOC rates by state guides.

More HELOC resources.

Turn your home equity into cash. Call us for a complimentary consultation or get prequalified online.

Read more
Aug
07
2025

Kentucky Student Loan & Scholarship Information

By | student_loan | Comments Off on Kentucky Student Loan & Scholarship Information







See all state pages

Financial Aid 101

Kentucky Student Loan & Scholarship Information




With the Ohio River in the north and the Appalachian Mountains in the east, there is no shortage of great nature to enjoy in Kentucky. Along with hitting the hiking trails, the state can also be a great place to hit the books — it’s home to dozens of colleges. But getting your degree in the Bluegrass State can be expensive. Fortunately, there are student loans, scholarships, and grants to help cover the costs. Read on to learn about options to make your Kentucky education more affordable.

Average Student Loan Debt in Kentucky

Prospective Kentucky students may be wondering about the state’s average student loan debt. According to a 2023 report, 61% of Kentucky college attendees have student loan debt, with an average balance of $28,356.


61%

of Kentucky college
attendees have
student loan debt.


SoFi offers simple student loans that work for you.



Kentucky 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.

Recommended:

Private Student Loans 101

Private Students Loans vs Federal Student Loans



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?

Kentucky Scholarships & Grants

There are some awesome scholarships and grants for Kentucky students that can help fund educational costs. Here are some you may qualify for.

Kentucky Educational Excellence Scholarship (KEES)

These scholarships are for high school grads attending the University of Kentucky and they are available for eight academic terms. All state residents admitted to the university are eligible to be considered for the award, and award amounts for those who qualify are based on GPA.


Learn more

College Access Program Grant

In order to qualify for this grant, you must be a Kentucky resident, have financial need, attend an eligible college, and have no past due financial obligations to the Kentucky Higher Education Assistance Authority (KHEAA) or to any Title IV program. Recipients must be enrolled at least half-time in a program that is at a minimum two years in length. Award amounts go as high as $2,500 for those attending two-year institutions, and up to $5,300 for students at a four-year institution.


Learn more

Kentucky Tuition Grant

Kentucky residents who are enrolled full-time in an associate’s or bachelor’s degree program at eligible Kentucky private colleges or universities may qualify for this grant if they have financial need. Award amounts vary, but cap out at $3,300 for the 2024-2025 academic year.


Learn more

Early Childhood Development Scholarship

Students who are enrolled in a qualifying program of study, employed at least 20 hours a week in a participating early childhood facility or as a preschool associate teacher in a state‐funded pre‐school program, and agree to a service commitment, may qualify for this scholarship. Award amounts may cover up to full tuition and fees at participating institutions but cannot exceed $6,751 per semester for the 2024-2025 academic year.


Learn more

Teacher Scholarship Program

This program provides aid to eligible Kentucky students who pursue teacher certification at select Kentucky colleges. Recipients must be Kentucky residents and demonstrate financial need. They must also agree to teach one semester at a qualifying Kentucky school for each semester of scholarship received. The award amount is $3,000 per semester.


Learn more

Dual Credit Scholarship Program

Both Kentucky high school students and home school students may qualify for this scholarship program if they take dual-credit classes at a participating Kentucky college or university. Students may receive scholarship awards equal to the dual credit tuition amount for up to two classes.


Learn more

Recommended: SoFi Scholarship Search Tool


Get low-rate in-school loans that work for you.



Kentucky Student Loan Repayment & Forgiveness Programs

If you’ve taken out student loans to attend a school in Kentucky, 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.


Learn more

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.


Learn more

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.


Learn more

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.


Learn more

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.


Learn more

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.


Learn more

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).


Learn more

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.


Learn more

Perkins Loan Cancellation

Cancellation for this specific loan is based on eligible employment or volunteer service and length of service, among other factors.


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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.


Learn more

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.


Learn more

Bankruptcy Discharge

Certain eligible borrowers may have federal student loans discharged if they file a separate action during bankruptcy, known as an “adversary proceeding.”


Learn more

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.


Learn more

Kentucky 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.

Kentucky State Loan Repayment Program

This loan repayment program is for eligible licensed healthcare practitioners who agree to work full-time for at least two years in a Health Professional Shortage Area in Kentucky. Funding varies based on a variety of factors — maximum award amounts range from $100,000 for qualifying physicians, dentists and pharmacists to $40,000 for registered nurses, registered dental hygienists, and substance use disorder counselors.


Learn more

Recommended: SoFi College Finder Tool



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.



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Aug
07
2025

FAFSA Guide

By | student_loan | Comments Off on FAFSA Guide


FAFSA Guide

Welcome to SoFi’s FAFSA Guide




This information is subject to change and does not constitute legal or financial advice; it’s educational in nature and may not cover all situations. We recommend you contact the financial aid office of the school(s) you are interested in attending or visit studentaid.gov for more information. SoFi Lending Corp. or an affiliate does not offer federal student loans and this resource is not affiliated with the Department of Education.
FAFSA is a registered service mark of the US Department of Education. CSS Profile is a trademark registered by the College Board, which is not affiliated with and does not endorse SoFi.

The first step to applying for federal financial aid (grants, need-based scholarships, federal student loans, and work-study jobs) is filling out your FAFSA®. Some states and schools also require it for their grants, merit-based scholarships, and loans. We’re here to help make the application process easier with FAQs, step-by-step instructions, explainers, and more.

What Is the FAFSA?

FAFSA stands for Free Application for Federal Student Aid and must be submitted every year a student hopes to receive federal financial aid. Many states and schools also require FAFSA information for their funding and scholarships.

The form is available online at Studentaid.gov/h/apply-for-aid/fafsa . You can also print out the application and mail it in. The form asks questions about the income and finances of the student (and spouse if married) and the student’s parents, plus questions about the student’s education plans. According to StudentAid.gov, it takes most people one to two hours to fill out the FAFSA form.

For the next academic year (2026-27), the form will be released to everyone by October 1, 2025. Generally, the federal deadline is June 30 (before the academic year starts), but states and schools may have earlier deadlines. Also, keep in mind that funding is limited and often given out on a first-come, first-served basis.


Want to Learn More?

Here are some articles that go into more depth covering FAFSA basics:


How Do Student Loans Work?

Whether you’re starting college or going back for another degree, keeping the different loan types straight in your head is not easy. There are two types of loans — federal student loans and private student loans. Federal student loans are given by the U.S. Department of Education, whereas private student loans are given through a private lender and do not require you to complete the FAFSA.

Federal loans have amount limits and eligibility requirements, including financial need for certain loans. Private loans generally require a credit check, proof of income, and/or a cosigner.

Here’s a guide to the different types of federal student loans available.

Federal Student Loans

Direct Subsidized Loan

Direct Subsidized Loans are for undergraduate students who have financial need. The “subsidized” part means the government pays your interest while you’re in school and for a six-month grace period after graduation.


Learn More

Direct Unsubsidized Loan

Direct Unsubsidized Loans are offered to undergraduate, graduate, and professional degree-seeking students, and financial need is not required.


Learn More

Direct PLUS Loan

Direct PLUS Loans are offered to parents paying for their dependent child’s undergraduate education and to graduate or professional degree-seeking students.


Learn More

Private Student Loans

An additional source for education funding are private lenders, including banks, credit unions, and online lenders. Private student loans do not require a FAFSA application and are often used as a supplement to federal aid.


Private Student Loans 101

It can sometimes be difficult to determine which loan option will work best for you. These comparison articles may help you choose from federal, private, or both.



What Are the Requirements for Federal
Student Loans?

Below, we outline the basic requirements (set by law) to receive federal student loans and other federal aid.

Financial Need

To qualify for many federal student aid programs, you must demonstrate that you have a financial need. Your financial need is determined by calculating the difference between the cost of attending a school (COA) and your Student Aid Index (SAI). Your COA will vary, of course, depending on the school, but your SAI will remain the same. A completed FAFSA is required to determine a student’s SAI.

Citizenship

You must be either a U.S. citizen or an eligible non-citizen to apply for federal aid. Eligible non-citizens include U.S. nationals, U.S. permanent residents, or individuals with certain designations from the U.S. Citizenship and Immigration services.


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Social Security Number

It is required that applicants possess a valid Social Security number. There are exceptions for students from the Republic of the Marshall Islands, Federated States of Micronesia, and the Republic of Palau.

Selective Service

Previously, most male students wishing to apply for federal student aid had to be registered with Selective Service. But with the passage of the FAFSA Simplification Act in late 2020, this is no longer the case (having a drug-related conviction also no longer affects eligibility). With the 2023-24 FAFSA, the question asking males if they wanted to register for the Selective Service was removed, as well, and will continue to no longer appear on the FAFSA.

Enrollment Specifications

To receive federal aid, students must either be enrolled, or accepted for enrollment, in an eligible degree or certificate program. You must be enrolled as a “regular student,” meaning you have been accepted at the institution in order to obtain a degree, certificate, or other recognized education credential. Students must also be enrolled at least half-time to be eligible for Direct Loan Program funds.

Certification Statement

Part of the FAFSA includes signing a certification statement. This states that you do not have any federal student loans in default and you do not owe money on a federal grant. Signing this statement certifies that you will use any federal student aid you receive for educational purposes only.

Proof of Education

Students must prove that they are qualified to obtain a college education by showing they have a high school diploma, General Education Development (GED) certificate, completed high school education by a homeschool approved under state law, or are enrolled in an eligible career pathway program.


Learn More



Other Types of Student Aid

In addition to loans, student aid can also come in the form of grants, scholarships, and work-study jobs.



Important FAFSA Deadlines To Know

Now that you know the basics, let’s go through some important deadlines for the student aid process.


Important FAFSA Deadlines to Know

October 1

This is the date the FAFSA normally becomes available for the following school year. The 2026-2027 FAFSA will be available to all students by October 1, 2025. It is recommended that you fill out your FAFSA as soon as possible to give you a chance to access all available funds. Need-based aid is awarded on a first-come, first-served basis, so it is in your best interest to apply before some of the funds run out.

June 30

This is the deadline to submit the FAFSA for the school year beginning that fall. You can still make corrections and updates until early September. For the 2024-2025 school year, the deadline is Sept. 14, 2025.

Deadlines by State

Each state has its own deadline for submitting the FAFSA form, and some state-specific grants have their own deadlines for submission, as well. To find the deadline for your state, check the official FAFSA website.


Learn More

Deadlines by College

In addition to state deadlines, colleges may also have other deadlines that vary by school. Check with the schools that you are interested in attending to ensure you submit your FAFSA on time.


Paying Back Student Loans

Once you have a student loan, here’s how you go about paying it back.


More Info on Financial Aid

When it comes to financial aid, there are many topics to cover. Here are some additional resources that can make the process easier.




SoFi Private Student Loans

Sometimes the cost of college can exceed the amount of federal aid you receive. That’s when you might consider a private student loan with SoFi. SoFi offers no-fee student loans with no fees required and an easy application that can be done entirely online.

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