10 Top Monthly Dividend Stocks for April 2025

While most dividend-paying stocks do so every quarter, some companies make monthly dividend payments. Getting dividend payouts on a monthly schedule may appeal to investors, especially those relying on dividends for a steady income stream.

A dividend is a portion of a company’s earnings that it pays to shareholders on a regular basis. Many investors seek out dividend-paying stocks as a way to generate income.

Note that there are no guarantees that a company that pays dividends will continue to do so.

Key Points

•   Monthly dividend stocks can provide steady income, but are less common than quarterly dividends.

•   Utility and energy companies may offer consistent dividends due to steady consumer demand and limited competition.

•   Dividend ETFs are passive and often track indexes of companies with a history of strong dividend growth.

•   REITs pay dividends from income-generating properties and must distribute 90% of income to shareholders.

•   Consider not only a dividend stock’s yield, but the long-term stability of the company and its dividend payout ratio.

What Are Monthly Dividend Stocks?

As mentioned above, dividend stocks usually pay out quarterly. However, some companies pay dividends monthly.

Stocks that pay dividends monthly may appeal to investors who want steady monthly income. Additionally, monthly dividend stocks may help investors who reinvest the payments to realize the benefit of compounding returns.

For example, through dividend reinvestment plans (DRIPs) investors can use dividend payouts to buy more shares of stock. Potentially, the more shares they own, the larger their future dividends could be.

How Does Dividend Investing Work?

Most dividends are cash payments made on a per-share basis, as approved by the company’s board of directors. For example, if Company A pays a monthly dividend of 30 cents per share, an investor with 100 shares of stock would receive $30 per month.

Some investors may utilize dividend-paying stocks as part of an income investing strategy. Retirees, for example, may seek investments that deliver a reliable income stream for their retirement. It’s also possible to reinvest the cash from dividend payouts.

A stock dividend is different from a cash dividend. Stock dividends are an increase in the number of shares investors own, reflected as a percentage. If an investor holds 100 shares of Company X, which offers a 3% stock dividend, the investor would have 103 shares after the dividend payout.

Understanding Dividend Yield

Understanding dividends is one part of an investor’s decision when choosing dividend-paying stocks. Another factor is dividend yield, which is the annual dividend amount the company pays shareholders divided by its stock price, and shown as a percentage.

If Company A pays 30 cents per share in dividends per month, that’s $3.60 per year, per share. If the share price is $50, to get the dividend yield you divide the annual dividend amount by the current share price:

$3.60 / $50 = 7.2%

The dividend yield can be useful as it can help an investor to assess the potential total return of a given stock, including possible gains or losses over a year.

But a higher or lower dividend yield isn’t necessarily better or worse, as the yield fluctuates along with the stock price. A stock’s dividend yield could be high because the share price is falling, which can be a sign that a company is struggling. Or, a high dividend yield may indicate that a company is paying out an unsustainably high dividend.

Investors will often compare a stock’s dividend yield to other companies in the same industry to determine whether a yield is attractive. Whether investing online or through a brokerage, it’s important to consider company fundamentals, risk factors, and other metrics when selecting any investment.

Top 10 Monthly Dividend Stocks by Yield

Following are some of the top-paying dividend stocks by yield, as of April 1, 2025. The dividends for these stocks are expressed here as a 12-month forward dividend yield, meaning the percentage of a company’s current stock price that the company is projected to pay out through dividends over the next 12 months.

Company

Ticker

12-month forward yield

Orchid Island Capital ORC 19.21%
ARMOUR Residential REIT, Inc. ARR 16.79%
AGNC Investment Corp. AGNC 15.12%
Dynex Capital DX 14.32%
Ellington Financial EFC 11.73%
Gladstone Commercial GOOD 7.99%
Apple Hospitality REIT APLE 7.46%
EPR Properties EPR 6.63%
LTC Properties LTC 6.40%
Realty Income Corp. O 5.61%

Source: Data from Bloomberg, as of April 1, 2025. Universe of stocks derived from Wilshire 5000 index. Companies have >$500M market cap and positive forward EPS.

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Types of Monthly Dividend Stocks

To invest in monthly dividend stocks, investors may want to consider companies in industries that tend to offer monthly dividend payouts. These companies usually have regular cash flow that can sustain consistent dividend payments.

Energy and Utility Companies

In the world of dividend payouts, utility and energy companies (e.g. water, gas, electricity) offer investors a certain consistency and reliability, thanks to the fact that consumer demand for utilities tends to be steady, and thus so is revenue.

Utility companies are considered a type of infrastructure investment, meaning that they provide systems that help society function. As such, these companies tend to be highly durable, offering tangible benefits to consumers and investors.

Also, many energy and utility companies may have little competition in a given region, which can add to the stability of revenue and thereby dividends.

ETFs

Just as an ordinary exchange-traded fund, or ETF, consists of a basket of securities, a dividend-paying ETF includes dividend-paying stocks or other assets. And similar to dividend-paying stocks, investors in dividend ETFs may benefit from regular monthly payouts, depending on the ETF.

Like most types of ETFs, dividend-paying funds are passive, meaning they track an index. In many cases, these ETFs seek to mirror indexes that include companies with a solid track record of dividend growth.

REITs

Real estate investment trusts (REITs) offer investors a way to buy shares in certain types of income-generating properties without the headache of having to manage these properties themselves.

REITs pay out dividends because they receive steady cash flow through rent payments and sometimes profits from the sale of a property. Also, these companies are legally required to pay at least 90% of their income to shareholders through dividends. Some REITs will pay dividends monthly.

Note: REIT payouts are ordinary dividends, i.e. they’re taxed as income, not at the more favorable capital gains rate.

Ways to Evaluate Monthly Dividend Stocks

Investors may want to analyze several criteria to determine the dividend stocks ideal for a wealth-building strategy. Here are a few things investors can consider when looking for the highest dividend stocks:

Dividend Payout Ratio

Investors will also factor in a stock’s dividend payout ratio when making investment decisions. This ratio expresses the percentage of income that a company pays to shareholders.

The dividend payout ratio is calculated by dividing a company’s total dividends paid by its net income.

Dividend payout ratio (%) = dividends paid / net income

Investors can also calculate the dividend payout ratio on a per share basis, dividing dividends per share by earnings per share.

Dividend payout ratio (%) = dividends per share / earnings per share

The dividend payout ratio can help determine if the dividend payments a company distributes make sense in the context of its earnings. Like dividend yield, a high dividend payout ratio may be good, especially if investors want a company to pay more of its profits to investors. However, an extremely high ratio can be difficult to sustain.

If a stock is of interest, it may help to check out the company’s dividend payout ratios over an extended period and compare it to comparable companies in the same industry.

Company Stability

Investors may also wish to focus on stable, well-run companies with a reputation for paying consistent or rising dividends for years. Dividend aristocrats – companies that have paid and increased their dividends for at least 25 years – and blue chip stocks are examples of relatively stable companies that are attractive to dividend-focused investors.

These companies, however, do not always have the highest dividend yields. Nor do these companies pay monthly dividends; most companies will pay dividends quarterly.

Furthermore, keep in mind a company’s future prospects, not just its past success, when shopping for high-dividend stocks.

Tax Implications

Dividends also have specific tax implications that investors should know.

•   A qualified dividend qualifies for the capital gains tax rate, which is typically more favorable than an investor’s marginal tax rate.

•   An ordinary dividend is taxed at an individual’s income tax rate, which is typically higher than the capital gains rate.

Investors will receive a Form DIV-1099 when $10 or more in dividend income is paid out during the year. If the dividends are in a tax-advantaged account, an IRA, 401(k), etc., the money will grow tax-free until it’s withdrawn.

Recommended: Ordinary vs Qualified Dividends

Pros and Cons of Investing in Monthly Dividend Stocks

While dividend stocks offer some advantages, they also come with some risks and disadvantages investors must bear in mind.

Pros

•   Passive income. As noted above, investing in dividend stocks can provide a source of passive income (although dividends can be cut at any time).

•   The ability to reinvest. Dividend stocks allow for reinvestment (using dividend payments to buy more stocks, thus compounding returns). Steady dividends may also allow investors who reinvest the gains to buy stocks at a lower price while the market is down — similar to using a dollar-cost averaging strategy.

Additionally, the stocks of mature companies that pay dividends also may be less vulnerable to market fluctuations than a start-up or growth stock.

•   Potential income during a downturn. Another plus for those who choose dividend stocks is that they may receive dividend payments even if the market falls. That can help insulate investors during tough economic times.

Recommended: Pros & Cons of Quarterly vs. Monthly Dividends

Cons

•   Dividends are not guaranteed. A company can decide to suspend or cut its dividends at any time. It could be that the company is truly in trouble or that it simply needs the money for a new project or acquisition. This may be especially true for monthly dividend stocks; many REITs that pay monthly dividends suspended or cut dividends during the Covid-19 pandemic.

Either way, if the public sees the dividend cut as a negative sign, the share price could fall. And if that happens, an investor could suffer a double loss.

•   Tax inefficiency. First, a corporation must pay tax on its earnings, and then when it distributes dividends to shareholders (which are considered profit-after-tax), the shareholder also must pay tax as an individual. Owing to this tax inefficiency, sometimes referred to as a type of double taxation, some companies decide not to offer dividends and find other ways to pass along profits.

Note that this tax issue doesn’t impact REITs the same way. Entities such as REITs and Master Limited Partnerships (MLPs) pass along most of their profits to investors. In these cases, the company doesn’t owe tax on the profits it passes onto the investor.

•   Limited options. Also, choosing the right dividend stock can be tricky. First, monthly dividend stocks aren’t as common as quarterly dividend payouts. And the metrics for analyzing attractive dividend stocks are quite different from those for selecting ordinary stocks.

•   Dividends can drop or be cut. It’s important to remember that dividends may fluctuate depending on how a company is performing, or how it chooses to distribute its profits. During a downturn, it’s possible to see lower dividends, or for a company to cut its dividend payout.

•   Share price appreciation may be limited. Gains in the share price of some dividend stocks can be limited, as many dividend-paying companies are typically not in a rapid growth phase.

Pros and Cons of Monthly Dividend Stocks

Pros

Cons

Provide passive income Dividend payments are not guaranteed
Dividend reinvestment can lead to compound returns Selecting monthly dividend stocks can be tricky
Investors may earn a return even when the stock price goes down Dividends may be cut or reduced during a downturn
Qualified dividends have preferential tax treatment over ordinary dividends; they qualify for the capital gains tax rate Some companies view dividends as tax inefficient
Share price appreciation may be limited compared to growth stocks

Things to Avoid When Investing in Monthly Dividend Stocks

When investing in monthly dividend stocks, there are a few things to avoid:

•   Avoid investing in a company that pays a monthly dividend solely to pay a monthly dividend. Many companies pay monthly dividends, but not all are suitable investments. Do your research and only invest in companies that you believe will be successful in the future.

•   Avoid investing in a company or industry that you don’t understand. If you don’t understand how a company makes money, you should hesitate to invest in it.

•   Avoid investing all of your money in monthly dividend stocks. Diversify your portfolio by investing in other types of stocks, bonds, funds, and other securities.

The Takeaway

Dividend-paying stocks can be desirable. They can add to your income, or offer the potential for reinvestment via dividend reinvestment plans or other strategies you pursue. Monthly dividend stocks offer the potential for steady income, but they are less common than stocks that pay on a quarterly basis.

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FAQ

How do monthly dividend stocks work?

A monthly dividend stock is a stock that pays out dividends every month instead of the more common quarterly basis. This can provide investors with a steadier stream of income, which can be particularly helpful if you rely on dividends for living expenses.

How can you get stocks that pay monthly dividends?

To invest in stocks that pay monthly dividends, you need to research financial websites and publications to find companies that pay dividends monthly. There are not many monthly dividend stocks, especially compared with stocks that pay quarterly dividends.

How can you determine the stocks that pay the highest monthly dividends?

Investors use metrics like the dividend yield and dividend payout ratio to determine the stocks that might be most desirable. However, stocks that pay the highest monthly dividends can change over time, and it’s important to consider other methods of assessing a stock, since a higher dividend isn’t always a sign of company health.


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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.


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Student Loan Repayment & Forgiveness for the Self-Employed

Paying off student loans when you’re self-employed can be challenging. While being your own boss has its rewards, your income can be unpredictable, which can make it tough to make monthly student loan payments.

Fortunately, there are programs that can help entrepreneurs and freelancers, including loan repayment plans and student loan forgiveness for the self-employed. Read on to learn about the different options, plus strategies to help you pay off your student loans faster.

Key Points

•   Student loan borrowers who are self-employed may be able to take advantage of loan repayment plans and student loan forgiveness options.

•   Income-driven repayment plans that typically reduce monthly student loan payments for those who qualify are one option to explore.

•   While self-employed individuals generally are not eligible for Public Service Loan Forgiveness, there may be forgiveness programs in their state they qualify for.

•   Freelancers and other self-employed people may be able to take the student loan interest deduction of up to $2,500.

•   Setting up a budget to help set aside money each month for student loan payments can be helpful to keep borrowers on track.

Understanding Student Loan Repayment for the Self-Employed

When you take out student loans, you sign a Master Promissory Note (MPN), a legal document in which you promise to repay your loans, plus interest and fees.

You can log into your account at StudentAid.gov and review your student loan balance and other loan information on your dashboard. There, you’ll also find the name and contact information for your loan servicer, which is the company that disburses your loan, handles billing and payments, and can help you choose the best repayment plan for your situation.

For example, if you have federal loans, and you’re struggling with student loan debt, you might consider the Graduated Repayment Plan, where your payments start out low and rise approximately every two years.

Or you could explore an income-driven repayment plan to help lower your student loan payments.

Recommended: Best Self-Employed Jobs for Extra Income

Income-Driven Repayment Plans for the Self-Employed

March 26, 2025: The SAVE Plan is no longer available after a federal court blocked its implementation in February 2025. However, applications for other income-driven repayment plans and for loan consolidation are available again. We will update this page as more information becomes available.

Income-driven repayment (IDR) plans base your monthly federal loan student payments on your discretionary income and family size. Although applications for IDR plans were temporarily on hold beginning in mid-February 2025 after a federal court issued an injunction, as of March 26, online applications for three of the IDR plans are now available again. However, forgiveness through most of these plans remains paused.

There are four IDR plans:

•   Income-Based: Payments are generally about 10% of a borrower’s discretionary income on this plan, and any outstanding balance is forgiven after 20 or 25 years. Note that on the IBR plan, forgiveness after the repayment term has been met is still proceeding at this time, since this plan was separately enacted by Congress.

•   Saving on a Valuable Education (SAVE): As of March 2025, the SAVE plan is no longer available after being blocked by a federal court. Forgiveness has been paused for borrowers who were already enrolled in the plan and they have been placed in interest-free forbearance.

•   Pay As You Earn (PAYE): A borrower’s monthly payment on PAYE is roughly 10% of their discretionary income, and they make 20 years of payments. As of March 2025, forgiveness has been paused. Borrowers who were already enrolled in the plan have been placed in interest-free forbearance since forgiveness has been paused.

•   Income-Contingent Repayment (ICR): The monthly payment amount on this plan is either 20% of a borrower’s discretionary income divided by 12, or the amount they would pay on a repayment plan with a fixed payment over 12 years, whichever is less. The repayment term is 25 years. As of March 2025, forgiveness has been paused for this plan. Borrowers who were already enrolled have been placed in interest-free forbearance.

Student Loan Forgiveness Programs for Self-Employed Borrowers

There are no forgiveness programs specifically for borrowers who are self-employed or who work as freelancers. However, you might qualify for forgiveness under a broader federal plan or a state-based program.

Public Service Loan Forgiveness (PSLF) and Nonprofits

The Public Service Loan Forgiveness (PSLF) program forgives the remaining balance on a borrower’s federal Direct loans after they make 120 qualifying monthly payments under a qualified repayment plan while working for an eligible nonprofit or government agency. Unfortunately, self-employed individuals typically don’t qualify for PSLF because eligibility is based on working for a qualified employer.

It’s worth noting that in March 2025, President Trump signed an executive order to limit eligibility for PSLF and requested an update to the program’s regulations. The program remains unchanged for now, according to the Federal Student Aid website.

Income-Driven Repayment (IDR) Forgiveness

Typically, the remaining balances on eligible student loans are forgiven under IDR plans after a borrower makes a certain number of qualifying on-time payments over 20 to 25 years. But as of late March 2025, forgiveness has been paused on all of the IDR plans except IBR. (The IBR plan is excluded because it was enacted separately by Congress.)

You can find out more and get updates about IDR and forgiveness on the Federal Student Aid website.

State-Based Loan Forgiveness Programs for Entrepreneurs

Many states offer self-employed student loan forgiveness programs, typically for public service fields like health care, teaching, and law. Look into the professional association in your state or check your state’s government website for more information about programs that are available.

For example, if you have a law degree and you’re self-employed with your own practice, you can take advantage of statewide loan repayment assistance programs (LRAPs) in 24 states. You can reach out to your state’s bar association to learn more about specific loan forgiveness options you may be eligible for.

Recommended: Law & MBA Refinancing

Tax Considerations for Self-Employed Borrowers

As a student loan borrower and self-employed individual, you may be able to take the student loan interest deduction on your taxes. If you qualify for the full deduction, you can deduct student loan interest up to $2,500 or the total amount of interest you paid on your student loans, whichever is lower.

To be eligible for the deduction, you must meet the following criteria:

You paid interest on a qualified student loan during the tax year.

•   Your modified adjusted gross income (MAGI) is less than a specified amount that is set annually.

•   Your filing status is anything except married filing separately.

•   Neither you nor your spouse can be claimed as a dependent on someone else’s return.

•   You are legally required to pay the interest on a student loan.

Strategies to Pay Off Student Loans Faster When Self-Employed

In addition to loan forgiveness for the self-employed, student loan repayment plans, and state-based programs you may be eligible for, there are also techniques that can help you repay your loans faster. Here are a few to consider.

Budgeting and Setting Aside Funds for Loan Payments

Creating a budget and dedicating a set amount each month toward your loan payments can help you stay on track to pay them off. Once you look at the amount of income you have coming in, you may even be able to direct additional money to your loan principal, which could help reduce the amount of interest you owe over the life of the loan.

Using Business Income to Cover Student Debt

Generally, student loan payments cannot be used as a business expense deduction on your taxes. However, as discussed, you may be eligible for the student loan interest deduction. Additionally, the more income your business earns, the more you may be able to pay yourself, which means you could direct more funds to your monthly student loan payments.

Refinancing Options for Entrepreneurs

You might also consider refinancing your student loans. With a student loan refinance, you trade your existing loans for a new loan from a private lender. Ideally, you might qualify for a lower interest rate or better loan terms.

You can refinance both private and federal student loans. For instance, you could refinance health care student loans if you decide to pursue that option. However, it’s important to understand that if you refinance federal student loans, you’ll lose access to benefits such as IDR plans. Make sure refinancing is right for you before you move forward with it.

The Takeaway

There are repayment plans, student loan forgiveness, and loan assistance programs for those who are self-employed and working to repay their student loan debt. You can investigate income-driven repayment plans on the Federal Student Aid website and check with your state to find out about any forgiveness or loan assistance programs they offer to those in your field.

Also, you can also consider options that may help you pay off your loans faster, such as paying extra toward your loan principal and exploring student loan refinancing.

Looking to lower your monthly student loan payment? Refinancing may be one way to do it — by extending your loan term, getting a lower interest rate than what you currently have, or both. (Please note that refinancing federal loans makes them ineligible for federal forgiveness and protections. Also, lengthening your loan term may mean paying more in interest over the life of the loan.) SoFi student loan refinancing offers flexible terms that fit your budget.


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

FAQ

Can self-employed borrowers qualify for student loan forgiveness?

Self-employed borrowers may qualify for federal student loan forgiveness under income-driven repayment plans. You can find out about the available IDR plans at StudentAid.gov, and fill out an online application if you qualify. However, be aware that as of late March 2025, forgiveness on these plans is paused.

Your state might also offer student loan forgiveness programs, especially if you are in health care, teaching or law, among other professions. Check with the relevant professional association in your state and your state’s government website to find out more.

How does income verification work for self-employed repayment plans?

You must provide income verification to qualify for income-driven repayment plans. Proof of income includes your most recent federal income tax return or pay stubs.

What tax deductions are available for self-employed student loan payments?

You may qualify for the student loan interest deduction of up to $2,500 or the amount of interest you paid on your student loans during the year, whichever is less. Your modified adjusted gross income (MAGI) must be less than a specific amount that’s set annually, along with other eligibility requirements.

Are there any special loan repayment programs for entrepreneurs?

There are no special student loan repayment programs for entrepreneurs. However, your state may offer loan repayment or assistance programs you might qualify for. Check with any professional organizations you belong to for more information, as well as your state’s government website.

How can freelancers manage student loan payments without steady income?

Freelancers with inconsistent income can typically still take advantage of income-driven repayment plans, which can potentially lower your student loan payments. However, you will need to provide income verification, such as your most recent federal income tax return or paychecks, to see if you qualify

In addition, you can use other strategies to manage student loan payments, such as setting up a budget to help direct money to your monthly payments and claiming the student loan interest deduction on your taxes, if you qualify.


photo credit: iStock/Jacob Wackerhausen


Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

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


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.

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.

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10 Last-Minute Tax Tips to File Smart and On Time

Taxes are due April 15, but many taxpayers wait until the last minute to file. If that sounds familiar, don’t worry — you’re not alone. And rest assured that it’s still possible to file accurately and on time. All you need is the right approach.

These last-minute tax filing tips can help you get your return in before it’s too late — all while maximizing tax breaks and planning for taxes owed. Whether you’re filing taxes on your own or working with a professional tax service, getting started now brings you closer to crossing this task off your list.

Key Points

•   Filing for a tax extension gives you more time to file (until October 15), but you still must pay any taxes owed by April 15 to avoid penalties.

•   Last-minute contributions to HSAs and IRAs before the deadline can still reduce your taxable income for the previous year.

•   Don’t miss valuable tax breaks like the Earned Income Tax Credit, student loan interest deduction, or energy-efficient home improvement credits.

•   Filing electronically with direct deposit is one of the fastest, safest ways to get your tax refund — often within 21 days.

•   If you’re expecting a refund, consider using it to save, invest, or pay off debt to support your long-term financial goals.

Tip 1: Know Your Tax Deadlines and Extensions

Federal taxes are usually due on April 15 (11:59 p.m. local time). If that day falls on a weekend or legal holiday, the deadline to file taxes moves to the following business day.

State income tax deadlines can vary. While many fall on April 15 in line with the federal due date, others have different deadlines. Check with your state revenue department for specifics.

The Internal Revenue Service (IRS) does offer a six-month tax extension deadline for federal returns, which can help if you need a little more time. This extension gives you until October 15 to file. However, even with the extension, you still need to pay any taxes you owe by the April 15 deadline. The IRS could penalize you if you don’t.

And if you’re self-employed or own a business, you may owe estimated taxes. These are generally due every quarter — April 15, June 15, September 15, and January 15 of the following year.

Tip 2: Organize Your Documents

Being organized is key to successfully filing your taxes on time, especially at the last minute. Here are some common tax forms you might need:

•   W-2s from your employer

•   1099-K (payment card and online marketplace payments)

•   1099-G (government payments)

•   1099-INT (interest earned from bank accounts or brokers)

•   1099-DIV (dividends and distributions)

•   1099-NEC (freelance or independent contractor income)

•   1099-R (pensions, annuities, or retirement plan distributions)

•   1099-MISC (other miscellaneous income)

•   1098-E (student loan interest tax deduction)

•   1095-A (health insurance marketplace statement)

•   SSA-1099 (Social Security benefits)

If you’re looking to maximize credits or deductions, you may also need supporting documentation for things like:

•   Health savings account contributions

•   Retirement contributions

•   Child care expenses

•   Health care expenses

•   Mortgage interest and property tax payments

•   Tuition or student loan interest payments

Getting all your documents together upfront can save you time and cut down on filing errors. This means less stress for you.

If you’re missing any specific forms, you can request them from your employer, financial institution, loan service provider, or other relevant entity. Many organizations offer online access to these documents via your account dashboard.

A tax professional or DIY tax prep software can guide you toward the forms you need for a smoother filing experience. Some platforms even auto-import your forms.

Tip 3: Plan for Owed Taxes

Even if you’re filing taxes at the last minute, it’s good to have an idea of what you owe ahead of time. That way you won’t be blindsided by a tax bill or run the risk of owing penalties on unpaid taxes.

If you’re employed and have taxes withheld from your paycheck, checking last year’s tax return can provide a baseline for what this year’s tax bill might be. Circumstances may have changed, but you can use your income, deductions, and credits to get a ballpark number.

If you receive income without withholding, such as self-employment earnings, you can use IRS Form 1040-ES to calculate your quarterly estimated taxes.

Whatever your tax situation, be sure to pay on time, even if you’re filing an extension. Otherwise, you could get hit with a 0.5% to 25% failure-to-pay penalty on your unpaid taxes.

Payment options include:

•  IRS Direct Pay with your bank account

•  Certified mail (send Form 1040-ES)

•  IRS2Go app

•  Debit card or credit card

•  Electronic Federal Tax Payment System (you must enroll first)

•  Individual IRS account online

Tip 4: Plan for HSA Deductions

Did you contribute to a health savings account (HSA) last year? If so, you could qualify for deductions that reduce your taxable income. HSAs offer a 1-2-3 punch of tax-deductible contributions, tax-free growth, and tax-free withdrawals for qualified medical expenses.

Contributions made in 2024 max out at $4,150 to your account and $8,300 if you have family coverage. For the 2025 tax year, you can contribute up to $4,300 or $8,550, respectively.

To qualify for an HSA, you must:

•  Have a high-deductible health plan (HDHP)

•  Not be enrolled in Medicare

•  Not be a dependent on someone else’s tax return

•  Not have other health coverage (in most cases)

If you weren’t able to take tax-advantaged account deductions like these in 2024, keep them in mind for future tax seasons to help get the most tax breaks possible.

Tip 5: Maximize Your IRA Contributions

Traditional IRA contributions can reduce your taxable income for the previous year if made before the April 15 tax filing deadline. Contributions may be fully or partially tax deductible, depending on your income and tax filing status.

For the 2024 tax year, the IRA contribution limit is $7,000 ($8,000 if you’re 50 or older). Maxing out your contributions can significantly lower your taxable income. These contributions can apply to the prior tax year if made before the filing deadline. (For example, contributions made before April 15, 2025, can apply to the 2024 tax year.)

You could get a full deduction up to the 2024 contribution limit amount if any of the following criteria apply:

•  You’re single, head of household, or a qualifying widow(er) and not covered by a retirement plan at work.

•  You’re married filing jointly or separately, and your spouse isn’t covered by a workplace retirement plan.

•  You’re married filing jointly, your spouse is covered by a workplace retirement plan, and your modified adjusted gross income (AGI) is $230,000 or less.

Other taxpayers may be able to claim a partial deduction. Those who earn above a certain income threshold don’t qualify for a deduction.

Maxing out your traditional IRA contributions could mean reducing your taxable income for that year. Depending on your current income, it might even put you in a lower federal tax bracket.

Tip 6: Choose a Reliable Tax Preparer or Tax Software

Choosing a trusted tax preparer or software can make last-minute tax filing easier. The right software (or tax professional) could help you prepare and file your taxes accurately and quickly, potentially even getting you a faster refund.

If you go with tax software, look for features like deduction finders, audit support, and refund estimators. If you have a complicated tax situation, find one that offers hands-on expert support or consider using a tax professional. Be sure to check reviews when choosing tax software (this goes for tax preparers as well).

If your AGI is $84,000 or less, you can also do your taxes for free using IRS Free File. This software can guide you through the tax filing process to ensure you’re getting your taxes done quickly and securely, according to the IRS.

Tip 7: Review Deductions and Credits for Missed Opportunities

Another last-minute tax tip? Look for tax breaks.

It’s all too easy to overlook common deductions and credits when you’re on a tight deadline. But this could result in some major missed savings opportunities.

Every taxpayer’s situation is different, but common tax breaks include:

•  Earned Income Tax Credit (EITC): Claim up to $7,830 (for the 2024 tax year) based on your income, filing status, and number of dependents.

•  Education credits: If you, your spouse, or a dependent pays qualified higher education expenses and is enrolled in an eligible academic institution, you could qualify for the American Opportunity Tax Credit (up to $2,500 per eligible student) or the Lifetime Learning credit (up to $2,000 per tax return).

•  Energy-efficient home improvement credit: Did you make qualifying energy-efficient home improvements in 2023 or beyond? If so, you could be eligible for up to $3,200.

•  Health care expense deduction: You may be able to deduct medical and dental expenses that exceed 7.5% of your AGI for the tax year.

•  Mortgage interest deduction: If you paid home mortgage interest, you could potentially deduct the full amount when you file taxes.

•  Home office deduction: If you used part of your home for business-related activities, you may be able to deduct certain home expenses.

You may need to itemize deductions to claim certain tax breaks. Restrictions and limitations may also apply.

Don’t Forget About Student Loans

Did you pay interest on qualified student loans last year? If so, you could be eligible for a student loan interest deduction.

This tax break lets you deduct up to $2,500 or the amount of interest paid, whichever is less. You can claim the full amount if your modified adjusted gross income (MAGI) is less than $80,000. If you earn between $80,000 and $95,000 ($165,000 and $195,000 for joint filers), the deduction amount gradually decreases.

If you paid at least $600 in interest last year, you should receive Form 1098-E (Student Loan Interest Statement). If you don’t, request or download it from your student loan servicer.

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Tip 8: Set Up Direct Deposit for Fast Access

If you’ve never filed a return before, you may be wondering how long it takes to receive your refund after filing taxes.

It depends, but the process is typically much faster when done online (and with direct deposit set up). According to the IRS, it usually takes 21 days or less to process electronically filed individual tax returns and issue a refund.

Speed isn’t the only benefit of direct deposit. It also reduces the risk of lost, stolen, or damaged checks. Plus, you can track your refund using the Where’s My Refund tool.

You can use a checking account or other financial account to set up direct deposit with the IRS. Here’s how to do it:

•   With tax software: Simply choose “direct deposit” as your refund method. You’ll need to include your account number and routing number.

•   With a tax preparer: Tell your preparer you want to use direct deposit, and they’ll help you set it up.

Tip 9: Review Last Year’s Taxes and What Has Changed

You can reference last year’s tax return to get a better idea of your various income sources and tax breaks. Just know that major life changes — like divorce, marriage, job change, or a new child — can have a major impact on your taxes.

For example, getting married (or divorced) will likely change your filing status. It could also affect your income tax bracket and deductions.
Meanwhile, having a child could potentially qualify you for a $2,000 child tax credit. Other common tax credits include the Additional Child Tax Credit and the Credit for Other Dependents.

Check your filing status before finalizing this year’s tax return, especially if you’ve gone through a major life change. A different filing status could mean you qualify for a new standard deduction amount or income tax bracket. And it might affect your eligibility for other tax breaks.

Tip 10: Use Spending and Savings Tools

As of the end of February 2025, the average refund amount is $3,382. If you’re due a refund — regardless of how much — now might be a good time to use it to reset your financial goals.

Rather than spend your refund, it may be better to save it, invest it, or use it to pay down debt. You can also put it in a high-yield savings account (HYSA), where it can accrue interest.

Using spending or savings tools can also help you spend your money wisely or reach your financial goals. For example, you could:

•  Use a free budgeting app that lets you track and reduce your expenses.

•  Set up automatic savings with your bank.

•  Use an income and expense tracker to monitor income and tax spending.

Tip: Check out SoFi’s savings calculator, which shows how much money in a HYSA account may grow over time.

The Takeaway

Staying organized, using a reliable tax software or preparer, and knowing your tax breaks can make last-minute tax filing a little less stressful. It can also help you get ahead of next year’s deadline to file taxes — and avoid potential tax penalties.
In the meantime, why not get your finances in order? SoFi offers financial products and tools you may want to explore, including high-yield savings accounts, debt repayment tools, budgeting, and spending tools.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

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


photo credit: iStock/LaylaBird
SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2025 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.
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3.80% APY
SoFi members with Eligible Direct Deposit activity can earn 3.80% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Eligible Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Eligible Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below).

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

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

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

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

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

Separately, SoFi members who enroll in SoFi Plus by paying the SoFi Plus Subscription Fee every 30 days can also earn 3.80% APY on savings balances (including Vaults) and 0.50% APY on checking balances. For additional details, see the SoFi Plus Terms and Conditions at https://www.sofi.com/terms-of-use/#plus.

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

Interest rates are variable and subject to change at any time. These rates are current as of 1/24/25. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.
*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

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.


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.


Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Third Party Trademarks: Certified Financial Planner Board of Standards Inc. (CFP Board) owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®, CFP® (with plaque design), and CFP® (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board's initial and ongoing certification requirements.

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How to Keep Your Student Loans Organized

Many borrowers take out multiple student loans throughout their college years to help pay for their education. But staying on top of the details for every student loan you have can be tricky.

You may have both federal and private student loans to keep track of. You probably owe different amounts on each one, the repayment terms and monthly due dates may vary, and you might have several different loan servicers to deal with. That’s a lot to juggle!

Fortunately, learning how to keep your student loans organized can make it easier to manage your payments — and make your life a little less stressful, too. Here’s how to tackle the process.

Key Points

•   Organizing student loans can help borrowers manage their payments more effectively and reduce stress.

•   Create a comprehensive inventory of all student loans, including type of loan, balance, interest rate, and due dates.

•   Regularly review student loan information from your lender or loan servicer for accuracy and updates.

•   Use spreadsheets or digital tools to track payments and balances efficiently.

•   Monitor repayment progress and update records monthly to stay organized.

Importance of Organizing Student Loans

Student loan borrowers owe an average of $38,375 in student loan debt, according to the Education Data Initiative. Organizing your student loans is one way to help repay that kind of debt efficiently. Being organized can help you see exactly how much you owe on your loans each month, choose the best repayment strategy for your situation, and schedule your payments so they’re on time.

Organizing your student loans can also be helpful if you’re considering student loan refinancing. For instance, if some of your student loans have an interest rate that’s high, you might want to see if you could qualify for a lower rate or more favorable terms through refinancing. In order to submit an application for refinancing, you’ll need to provide the details about your loan to a new private lender. When your loans are organized, you’ll have that information readily available.

Learn more: How to Refinance Student Loans

Steps to Organize Your Student Loans

Organizing your loans takes a little time initially, but the process is fairly easy to do once you get started. Here’s how to organize student loans step by step.

Create a Comprehensive Inventory

Compiling all your loan information in one place provides you with a complete view of what you owe. Think of it as your own personal student loan organizer. Here is the information you’ll want to collect:

•   Student loan type (federal or private)

•   Loan disbursement date

•   Original principal balance

•   Current balance

•   Interest rate and type (fixed or variable)

•   Grace period on the loan

•   Repayment term

•   Payment plan you’re on for federal loans

•   Minimum monthly payment amount due

•   Payment due date

•   History of any payments you’ve made so far

•   Name and contact information for your lender or loan servicer

Learning how to organize your student loans after graduation — or even better, setting up this kind of inventory as soon as you borrow your first student loan — can help you devise a payment game-plan.

Develop a Repayment Strategy

That brings us to the next step: using the data you’ve gathered to figure out the best strategy for your student loan repayment goals.

Say your priority is to reduce the amount of interest you pay. With the information from your student loan inventory list, you can quickly spot the education loans with the highest rate. Then you can decide the best way to pay that interest down. For instance, you might opt for the debt avalanche method, which involves putting extra funds toward repaying the loan with the highest interest rate first.

Or if your goal is to lower student loan payments, take a close look at the repayment plan you’re enrolled in for your federal loans. For example, if you’re on the Standard Repayment Plan, you can explore the other options, such as the Graduated Repayment Plan, in which your payments start out lower and gradually increase every two years — the idea being that, ideally, your income will rise as you advance in your job.

Just be aware that on the graduated plan, because your payments are smaller at first, you’ll likely pay more interest than you would on the standard plan. Weigh the pros and cons of the various repayment options to see if it makes sense for you to change student loan repayment plans.

Monitor Your Progress

As you make your monthly loan payments, update your information to stay organized. Record the payment dates and amounts and the new loan balance. That way, you can see the current status of all your student loans at a glance.

If you find that there’s still too much to keep track of, you might consider streamlining the process. One way to do this is by consolidating student loans. Consolidation involves combining all your federal student loans into one loan with one monthly payment.

If you want to keep your access to federal programs and protections, you could explore a Direct Consolidation Loan. Note, however, that consolidating streamlines the loan paying process, but it generally doesn’t save you money. With a Direct Consolidation Loan, your new interest rate is a weighted average of all your loans’ interest rates, rounded up to the nearest eighth of a percentage point. Any unpaid interest on the loans you’re consolidating will be added to the principal of the new loan.

If you have private student loans, refinancing is a way to consolidate your loans and combine them into one new loan, ideally with a lower interest rate or better loan terms if you qualify. There are positives and negatives of student loan refinancing, so be sure that you understand them before moving ahead.

Recommended: Student Loan Refinancing Calculator

Tools and Resources for Managing Student Loans

There are many tools you can use to help keep your student loans organized. The following resources are a good place to start.

Spreadsheets and Tracking Documents

You can use digital tools to organize your loans, such as apps that help you plan and track your debt repayment. There are also student loan trackers that let you manage your student loan debt in one place.

Or you can simply set up a spreadsheet to get an overview of your student debt. Add columns for the inventory bullet points listed above, and create filters for each column to view the data in a way that’s easiest and most effective for you.

Finally, be sure to keep tabs on all the loan documents you’ve received. This includes financial aid award letters, copies of private student loan applications, loan promissory notes, and billing statements. You can either keep a physical file folder of this information or go paperless by creating digital folders on your computer to store any correspondence from your lender or loan servicer.

Loan Servicer Portals

Another method you can use instead of or in addition to setting up your own tracking system is to take advantage of tools offered by your loan servicer. All details regarding your loan can typically be found on the loan servicer’s account portal. (If you’re not sure who your federal loan servicer is, log in to your account at StudentAid.gov.)

On your loan servicer’s website, create a login if you haven’t done so already. Once you’re in, you should be able to access the key information about your loans. If you have loans through multiple lenders, you’ll need to log into each portal individually to see your loan details.

While loan servicer portals are a convenient way to access your loan details, relying on this method alone can make it hard to see the big picture regarding your student debt. That’s why having all of your loan information live in one place, like in a spreadsheet, can be useful.

Benefits of Staying Organized

Organizing your student loans is a practical way to manage your student debt and ensure that your loan bills are paid on time. And along with the logistical benefits, organizing can also help you feel less anxious about your loans and give you a sense of control.

Reducing Stress

Dealing with student loan debt can be stressful. And if your loan information is disorganized and hard to find, that can just add to the anxiety. Plus, you might miss a payment, which can be especially stressful.

Organizing your student loan information so you know exactly where to find it, and then keeping it updated, can save you a lot of worry. If you want to switch to a new repayment plan or consolidate or refinance your loans, you’ll have all the pertinent details at your fingertips.

Best of all, as you pay off your loans and record your progress, you can see your balance start to shrink. That can be rewarding and motivating.

The Takeaway

Organizing your student loans so that all the details you need are in one easy-to-access place can help you manage your payments. Getting organized can be as simple as creating a computer spreadsheet or using a digital tool like a debt repayment app or your loan servicer’s portal.

Once you’re done organizing, if you ever want to change your loan repayment option, streamline your loans with consolidation, or potentially get a lower interest rate through student loan refinancing, you can simply pull up your spreadsheet or tracking tool to get the information you need.

Looking to lower your monthly student loan payment? Refinancing may be one way to do it — by extending your loan term, getting a lower interest rate than what you currently have, or both. (Please note that refinancing federal loans makes them ineligible for federal forgiveness and protections. Also, lengthening your loan term may mean paying more in interest over the life of the loan.) SoFi student loan refinancing offers flexible terms that fit your budget.


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

FAQ

How often should I review my student loan information?

It’s a good idea to review the accuracy of your student loan debt regularly. For example, you might do an inventory of your loan balances and payment history quarterly, or even monthly, to make sure everything is correct. If you are planning to change your student loan repayment option or you’re considering refinancing or consolidating your student loans, always review your loan information first to make sure it’s accurate and up to date.

What should I do if I have multiple loan servicers?

If your student loan debt involves multiple loan servicers, one organizing method is to keep an up-to-date record of your student loans listed under each servicer. Include the loan servicer’s contact information as well as the loan details like the principal balance, interest rate, repayment terms, and payment due dates. Record each payment and the date as you make it.

Can consolidating my loans help with organization?

Consolidation may help you streamline your student loans. Consolidation involves merging federal student loans into one loan with one payment so you have less to organize and keep track of.

How can I stay informed about changes to my loan terms?

To stay informed about changes to your loan terms, make sure that your student loan servicer or lender has your current contact information. This includes your mailing address, phone number, and email address. Also, it’s helpful to log in to your lender’s online portal regularly to view your loan’s current status and details and check for any updates.

Where can I find reliable resources for student loan management?

Federal student loan borrowers can log in to their StudentAid.gov account for tools, information, and resources on managing their student loans. On their account dashboard, they can see their loan details as well. If you have private student loans, visit your lender’s online portal and log in to your account to access your loan details. Depending on the lender, they might also offer tools or information to help you track and manage your loans.


photo credit: iStock/GaudiLab
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 FOREFEIT YOUR EILIGIBILITY 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.



Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

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.

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Social Workers Student Loan Forgiveness Guide

A career as a social worker requires a bachelor’s degree, and many individuals go on to pursue a Master of Social Work (MSW). Student loan forgiveness programs for social workers can be a valuable repayment strategy for those with student loan debt.

There are a number of federal and state programs that offer student loan forgiveness for social workers, as well as resources dedicated to helping social workers manage their loans. Read on to learn what you may be eligible for.

Key Points

•   Social workers may qualify for federal and state student loan forgiveness programs.

•   Average student loan debt for social workers ranges from $27,183 for a bachelor’s degree to $46,850 for a doctoral degree.

•   Public Service Loan Forgiveness for social workers requires 120 qualifying payments and full-time employment at an eligible government or nonprofit organization.

•   Income-Driven Repayment plans typically offer lower monthly payments and may also provide forgiveness after 20 to 25 years.

•   Many states have State Loan Repayment Assistance Programs (LRAPs) for those who qualify. These programs generally require a specific service commitment.

Overview of Student Loan Debt in Social Work

The student loan debt among social work graduates today has increased compared to a decade ago, according to the latest survey by the Council on Social Work Education (CSWE).

Average Debt Levels Among Social Workers

Nearly half (48%) of Bachelor of Social Work graduates had an average of $27,183 in student loan debt at graduation, according to the CSWE report. About 35% of MSW graduates had an average student loan debt of $38,500, while the average student loan debt for social workers who earned a Doctor of Social Work (DSW) was $46,850.

Impact on Career Choices and Financial Stability

The Bureau of Labor Statistics (BLS) projects a 7% increase in social work employment between 2023 and 2033. This is higher than the projected average growth for all professions during the same period. However, the median annual wage among social workers is $58,380, with the lowest 10% of earners making just $38,400, according to the BLS.

Shouldering student debt that’s almost as much as their annual salary in some cases can be financially challenging and stressful for social workers. Student loan forgiveness for social workers can help manage the cost.

Federal Loan Forgiveness Programs

There are federal student loan forgiveness programs that social workers may be able to enroll in. To be eligible, they must have qualifying student loans and be enrolled in a qualifying repayment plan. Borrowers who aren’t on an eligible forgiveness repayment plan have the option of changing student loan repayment plans.

Public Service Loan Forgiveness (PSLF)

Social workers who are employed by a government agency — whether federal, state, local, or tribal — or a qualifying nonprofit organization may be eligible for Public Service Loan Forgiveness. Participants must be employed full-time and have qualifying federal Direct Loans.

While serving under an eligible employer, borrowers must enroll in an income-driven repayment (IDR) plan or the Standard Repayment Plan. After completing 120 qualifying payments, any remaining Direct Loan balance is forgiven, tax-free.

In March 2025, President Trump signed an executive order to limit eligibility for PSLF and requested an update to the program’s regulations. The executive order is being reviewed, and the PSLF program remains unchanged for now, according to the Federal Student Aid website.

Income-Driven Repayment (IDR) Plan Forgiveness

March 26, 2025: The SAVE Plan is no longer available after a federal court blocked its implementation in February 2025. However, applications for other income-driven repayment plans and for loan consolidation are available again. We will update this page as more information becomes available.

If you don’t qualify for PSLF because you don’t work for a qualifying employer, forgiveness through an IDR plan might be an option. Monthly payments on these plans are determined by borrowers’ discretionary income and family size. At the end of the repayment term, any remaining balance is typically forgiven.

However, while borrowers can still fill out and submit the online application for these plans, forgiveness is paused as of March 2025 on all but one of the IDR plans:

•  Pay As You Earn (PAYE) Repayment: Payments are set at 10% of discretionary income over 20 years.

•  Income-Based Repayment (IBR): Payments for loans borrowed after July 1, 2014 are 10% of discretionary income over 20 years. On the IBR plan, forgiveness after the repayment term has been met is still proceeding at this time since IBR was separately enacted by Congress.

•  Income-Contingent Repayment (ICR) Plan: ICR payments are 20% of a borrower’s discretionary income divided by 12, or the amount they would pay on a repayment plan with a fixed payment over 12 years, whichever is less. The repayment term is 25 years.

•  Saving on a Valuable Education (SAVE): As of March 2025, the SAVE plan is no longer available after being blocked by a federal court. Forgiveness has been paused for borrowers who were already enrolled in the plan, and they have been placed in interest-free forbearance.

National Health Service Corps Loan Repayment Program (NHSC LRP)

Licensed Clinical Social Workers (LCSWs) with federal or private student loans may be eligible for loan repayment assistance through the National Health Service Corps Loan Repayment Program. Participants must agree to serve in a preapproved health professional shortage area for a two-year half- or full-time service contract.

In exchange for their service commitment, LCSWs can receive up to $25,000 in forgiveness for half-time service, or up to $50,000 in loan forgiveness for a full-time contract.

State-Specific Loan Forgiveness Programs

Some states that are experiencing a shortage of certain skilled professionals, like health care providers and social workers, sponsor their own loan repayment assistance programs (LRAP). These programs may offer forgiveness for federal and private student loans. Program requirements vary, but typically, you must meet citizenship and state licensing requirements, and agree to a service commitment, among other criteria.

For example, Tennessee offers an LRAP for social workers that provides up to $50,000 in loan repayment assistance for a two-year service obligation with a service extension option.

Check your state’s government or state health department website to see if it offers a loan repayment program for social workers.

Eligibility Criteria for Loan Forgiveness

All student loan forgiveness programs for social workers set specific requirements that participants must adhere to. The criteria for loan forgiveness varies between programs, but generally, you’ll find the following common features.

Employment Requirements

Many programs establish guidelines regarding qualifying employment. For example, under PSLF, loan forgiveness is only available to social workers who work for a government agency or nonprofit. You might need to maintain this employment type for the duration you’re pursuing loan forgiveness.

Loan Types and Repayment Plans

Certain student loan forgiveness programs restrict the types of student loans that are eligible for forgiveness. For example, PSLF and forgiveness through an IDR plan only permit qualifying federal Direct Loans. Private student loans and other federal student loan types are ineligible.

However, if you have a noneligible federal student loan, consolidating student loans into a Direct Consolidation Loan could help you gain access to these forgiveness plans.

Additionally, check whether the program requires you to be enrolled in a particular repayment plan to qualify, like an income-driven repayment plan.

Another option some borrowers might consider is student loan refinancing. With refinancing, you trade your current student loans for a new loan from a private lender. If you qualify, the new loan might have a lower interest rate or more favorable loan terms, which could make loans easier to manage.
But there are some drawbacks. For example, if you refinance federal student loans, you lose access to federal benefits such as IDR plans. Be sure to consider this option carefully to make sure it’s right for you.

Recommended: Student Loan Refinancing Calculator

Service Commitments and Obligations

Loan repayment assistance programs can be a valuable forgiveness option for social workers, especially if they have private loans. However, a key criterion for these opportunities is typically a service obligation.

To qualify, you might be required to work in an approved shortage area at least 30 hours per week over a predetermined number of years.

Application Processes

The steps you need to take to apply for loan forgiveness vary by program. With federal loan forgiveness for social workers like PSLF, you submit the formal application after successfully making 120 qualifying payments, in addition to meeting all other eligibility criteria. By contrast, the NHSC loan repayment program requires an application upfront.

Additional Resources and Support

If navigating your student loan debt feels overwhelming, there are other resources available to social workers.

National Association of Social Workers (NASW) Initiatives

The NASW supports the well-being of the social worker community at the national level through advocacy, events, initiatives, and its podcast, “NASW Social Work Talks Podcast.” You’ll find discussions on a range of important topics, like mental health and student loan forgiveness.

Financial Counseling Services

If you’re struggling to pay your loans, financial counseling support may be helpful. Through organizations like the National Foundation for Credit Counseling (NFCC), you can connect with a certified credit counselor. Services include a complete financial review, customized repayment strategy, and additional resources to help you feel confident about tackling your student debt.

Educational Workshops and Webinars

You can look for student loan workshops in your community and webinars to familiarize yourself with your student loan repayment options. You can also check to see if your employer offers access to financial education workshops that cover student loan resources as an employee benefit.

The Takeaway

Although the cost of earning a degree in social work is significant, a number of student loan forgiveness programs for social workers offer some relief. Many have specific requirements to qualify, such as employment or service criteria, or the stipulation that you have a specific type of student loan.

Successfully achieving student loan forgiveness for social workers often takes years, but getting a portion of your student loans forgiven can be worthwhile.

Looking to lower your monthly student loan payment? Refinancing may be one way to do it — by extending your loan term, getting a lower interest rate than what you currently have, or both. (Please note that refinancing federal loans makes them ineligible for federal forgiveness and protections. Also, lengthening your loan term may mean paying more in interest over the life of the loan.) SoFi student loan refinancing offers flexible terms that fit your budget.


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

FAQ

What types of loans are eligible for forgiveness under federal programs?

Social workers must have eligible federal Direct Loans to qualify for most student loan forgiveness programs. Borrowers with Federal Family Education Loans (FFELs) and Perkins Loans can undergo a Direct Consolidation Loan to qualify. Private student loans are ineligible for federal loan forgiveness.

How do I apply for state-specific loan forgiveness programs?

See if your state offers a loan repayment assistance program (LRAP). State-sponsored programs might be featured on your state’s government website, higher education site, or state Department of Health website.

Where can I find support and resources for managing student loan debt as a social worker?

Social workers can access additional resources and support for managing their student debt through StudentAid.gov and the National Association of Social Workers.

What documentation is required when applying for loan forgiveness?

Documentation needed to apply for student loan forgiveness for social workers varies by program. Examples of documentation you might need include proof of qualifying employer and employment status, income, student loan statements, and payment history.

How can social workers qualify for Income-Driven Repayment (IDR) Plan Forgiveness?

Social workers must have qualifying federal Direct Loans to be eligible for IDR. There is an income cap for the Pay As You Earn (PAYE) and Income-Based Repayment (IBR) plans. Additionally, borrowers must recertify their income and family size annually. Upon completing the terms of the IDR plan, any remaining loan balance is forgiven.


photo credit: iStock/Ginnet Delgado
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