Life & Career Archives | Page 78 of 91

Jun

2023

What to Do Before Starting Your First Job

By Pam O’Brien | Building Your Career, Life & Career, student_loan | No Comments

If you’re gearing up for your first job post-graduation, you might be feeling a mix of emotions. There’s happiness about landing your new gig, excitement about what’s to come, and some nervousness, too.

And then there are all the practical considerations. You’ll need to budget for your new work life to cover things like commuting and your wardrobe. At the same time, you probably have student loans to pay off, and you’ll want a solid plan in place to manage your debt.

That’s a lot! But not to worry. With a little prep, and by taking a few smart steps, you’ll be set to start your new job and start working toward your financial goals.

Researching the Company

You likely researched your new employer before you accepted the position. Now that you’ve got an official start date, it’s time to dig a little deeper.

Consider learning about the history of the company. And then brush up on what’s ahead. Is there any information about the direction the firm is headed in or any future plans that have been released? Are new products and services about to be launched?

Researching the broader industry could also be beneficial. Search for general trends that are worth noting. What are their biggest competitors working on?

It’s also a good idea to take a look at your network. Do you know anyone who works at the company you could reach out to? Perhaps there is a friend-of-a-friend who might be willing to chat with you before your first day. Getting some information on the company’s culture could help relieve your anticipatory anxiety. Plus, then you’ll have a familiar face to look out for around the office.

Recommended: 10 Personal Finance Basics

Doing a Dry Run of Your Commute

Worrying and stressing about whether or not you’re going to be on time for your first day is no way to start a job, so do a test run of your new commute. Whether it’s a drive, walk, or bus or train ride, making the commute in advance means you’ll get all of your second guessing, potential detours, and missed turns out of the way.

Plus, this way you can get a sense of the traffic patterns and find out where and when you may need to allow more time. You can also see how much commuting might cost you and figure out ways to pay less for your drive to work.

Planning for the Day Ahead

One good way to destress your morning routine is to prepare everything the night before. Get the coffee ready to go and set on a timer so you don’t have to think about it when you wake up. Plan what to have for breakfast so you’re not scrambling at the last minute.

Choose your clothes for the big day in advance. Try everything on to make sure it fits and that there aren’t any loose buttons. This will save you precious time in the morning.

If you’re not sure what the standard attire is at your new office, err on the side of being more professional than casual. As you get to know the company culture, you can adjust your outfit choices, which could even help you save money on clothes.

Gathering the Appropriate Paperwork

Before you head into the office, you’ll usually get an email from HR with some information about your first day. It’s worth reading through it carefully and gathering any paperwork that might be needed. Organize the documents and pack them in your bag the night before. If you have questions about benefits, holidays, when you’ll be paid, or anything else, jot them all down and bring them with you so you can go over everything with the HR rep.

Getting to Know the Team

You will likely be collaborating with your coworkers on a daily basis, so first impressions matter. Project a friendly, professional, and fully engaged attitude as you meet and interact with your colleagues.

Be receptive and enthusiastic when you get your first assignment. Listen closely and ask your manager questions so you fully understand your responsibilities. Then you can get down to work.

Updating (Or Creating) Your Financial Plan

Some of the other important work-related changes you’ll need to make involve getting your financial life in shape. You can start by:

Refining Your Budget

A new job means a new salary, which makes this a good time to update or create a budget. Consider making adjustments based on your new salary. If you don’t have an existing budget in place, this could be the perfect time to add some structure to your spending and saving.

If you’re moving to a new city for the job or into a new apartment, it’s wise to start planning for all those moving costs now.

Planning for Future You

Next, focus on building your financial security. Carefully review the options your new company offers for retirement savings. Do they have a 401(k)? And if so, do they offer matching contributions?

Saving for retirement might not be on your radar right now, but it’s never too early to start prepping for your future. Sign up to contribute to your employer’s 401(k) plan, and contribute at least enough for the company to match your contributions.

Handling Debt

As a recent graduate, you likely have student loans you’re paying off. If that’s the case, part of your financial strategy could include figuring out if your current repayment plan is the best one for you—or if there’s one out there that might be a better fit.

The repayment plan you choose will depend on a variety of factors, including the types of student loans you have, the amount of debt, and your income and profession. If you have federal student loans, you might be eligible for repayment options including income-driven repayment plans, federal student loan consolidation, or loan forgiveness.

It’s also worth seeing if your new company offers assistance to employees repaying student loans. A growing number of employers have such programs. If yours is one of them, find out how you can get some help repaying what you owe.

If paying off student loan debt quickly is a priority for you, consider putting any windfalls, like a signing bonus, toward your student loans.

Another option to think about is student loan refinancing. For qualifying borrowers, refinancing could offer better terms, which could potentially lead to savings. But refinancing may not be for everyone. When federal loans are refinanced they become private loans and are no longer eligible for federal repayment plans or protections, such as the Public Service Loan Forgiveness program.

If you decide that refinancing is beneficial for you, you’ll want to shop around for the best deal. SoFi offers student refinancing loans with low fixed and variable interest rates, flexible terms, and no fees. Plus, SoFi members get free perks like career coaching and financial advice.

Learn what student loan refinancing can do for you, and get prequalified with SoFi in just two minutes.

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

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

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Jun

2023

Budgeting as a New Doctor

By Bonnie Gibbs Vengrow | Budgeting & Goals, Life & Career | Comments Off

The member’s experience below is not a typical member representation. While their story is extraordinary and inspirational, not all members should expect the same results.

Dr. Christine M. has always been goal-oriented about her finances. That approach worked well when she decided to become a doctor. She stretched an annual salary of $55,000 during her five years as a resident and fellow. Once she became a new doctor in private practice on the East Coast, she made paying down her medical school loans her top priority. By being frugal, she was able to pay them off in three years.

The road to becoming a doctor is long — 11 years at a minimum — and the average cost of medical school is expensive. The median medical school debt for the class of 2021 is $200,000, according to the Association of American Medical Colleges. And that’s not counting undergraduate student loans, credit card balances, or other debt.

But the hard work can pay off. A doctor’s median annual salary is around $208,000. That’s a significant increase from the $60,000 average annual salary a first-year resident earns.

If you’re a doctor, the beginning of your career marks a new phase of your earning power. It’s also a prime opportunity to get yourself on sound financial footing, including paying off your medical school loans. That’s why budgeting is so important for doctors. These strategies can help you reach your financial goals.

Resist the Urge to Start Spending Right Away

After years of hard work and sacrifice, you may be tempted to treat yourself. But don’t go wild. “I think lifestyle creep is the biggest danger we see [among new doctors],” says Brian Walsh, CFP, senior manager, financial planning for SoFi. Leveling up early in your career can wreak havoc on your savings and financial health while setting unsustainable spending habits that are hard to break.

Automate your finances whenever possible. For instance, preschedule your bill payments and set up automatic contributions to your retirement account.

To encourage good spending habits, use cash or a debit card for purchases, Walsh suggests. You may also need to practice extra self-control. Because Christine was thrifty, she was able to triple her loan payments to $4,500 a month. She also made additional payments whenever she could. “You just have to keep reminding yourself what your priorities are because it’s easy to want more,” she says.

Get Serious About Savings

As a new doctor, you may not start your career until you’re in your thirties, which puts you behind the curve on saving for long-term goals. The good news: earning a higher income can help you make up for lost time.

Walsh advises early-career physicians to set aside 30% of their income for savings. Of that, 25% should be for retirement and 5% for other savings, like starting an emergency fund that can tide you over for three to six months. The remaining 70% of your income should go toward expenses, including monthly medical school loan payments.

The sooner you start saving and investing, the sooner you can enjoy compound growth, which is when your money grows faster over time. That’s because the interest you earn on what you save or invest increases your principal, which earns you even more interest.

Consider Different Investments

For investing your retirement savings, you may need to think beyond maxing out your 401(k) or 403(b), though you should do that as well. Walsh suggests new doctors tap into a combination of different investment vehicles. This strategy, known as diversification, can help protect you from risk. Here are some vehicles to consider:

• A health savings account (HSA), which provides a triple tax benefit. Contributions reduce taxable income, earnings are tax-free, and money used for medical expenses is also tax-free.

• An individual retirement account (IRA), like a traditional IRA or Roth IRA, can offer tax advantages. Contributions made to a traditional IRA are tax-deductible, and no taxes are due until you withdraw the money. Contributions to a Roth IRA are made with after-tax dollars; your money grows tax-free and you don’t pay taxes when you withdraw the funds. However, there are limits on how much you can contribute each year and on your income.

• After-tax brokerage accounts, which offer no tax benefits but give you the flexibility to withdraw money at any time without being taxed or penalized.

Two options to consider bypassing are variable annuities and whole life insurance. Walsh says they aren’t suitable ways to build wealth.

Regardless of the strategy you choose, keep in mind that there may be fees associated with investing in certain funds, which Walsh points out can add up over time.

Protect Your Income

There are a variety of insurance policies available to physicians, and disability insurance is one worth considering. It covers a percentage of your income should you become unable to work due to an injury or illness. If you didn’t purchase a policy during your residency or fellowship, you can buy one as part of a group plan or as an individual. Check to see if it’s a perk offered by your employer. Christine’s practice, for example, includes a disability plan as part of its benefits package. Monthly premium amounts vary, but in general, the younger and healthier you are, the cheaper the policy.

Develop a Plan to Repay Student Loans

No matter how much you owe, having the right repayment strategy can help keep your monthly payments manageable and your financial health protected.

To start, consider the types of student loans you have. Federal loans have safety nets you can explore, like loan forgiveness and income-driven repayment (IDR) plans, which can lower monthly payments for eligible borrowers based on their income and household size. The Biden Administration is currently working on revamping IDR and Public Service Forgiveness to make it easier to qualify and to accelerate forgiveness for some borrowers.

Once you’ve assessed the programs and plans you’re eligible for, determine your goals for your loans. Do you need to keep monthly payments low, even if that means paying more in interest over time? Or are you able to make higher monthly payments now so that you pay less in the long run?

Two approaches to paying down debt are called the avalanche and the snowball. With the avalanche approach, you prioritize debt repayment based on interest rate, from highest to lowest. With the snowball method approach, you pay off the smallest balance first and then work your way up to the highest balance.

While both have their benefits, Walsh often sees greater success with the snowball approach. “Most people should start with paying off the smallest balance first because then they’ll see progress, and progress leads to persistence,” he says. But, as he points out, the right approach is the one you’ll stick with.

Explore Your Refinancing Options

Besides freeing up funds each month, paying down debt has long-term benefits, like boosting your credit score and lowering your debt-to-income ratio. And you may want to include refinancing in your student loan repayment strategy.

When you refinance, a private lender pays off your existing loans and issues you a new loan. This gives you a chance to lock in a lower interest rate than you’re currently paying and combine all of your loans into a single monthly bill. Some lenders, including SoFi, also provide benefits for new doctors.

Though the refinancing process is fairly straightforward, some common misconceptions persist, Walsh says. “People overestimate the amount of work it takes to refinance and underestimate the benefits,” he says. A quarter of a percentage point difference in an interest rate may seem inconsequential, for instance, but if you have a big loan balance, it could save you thousands of dollars.

That said, refinancing your student loans is not be right for everyone. If you refinance federal student loans, for instance, you may lose access to benefits and protections, such as federal repayment and forgiveness plans. Weigh all the options and decide what makes sense for you and your financial goals.

The Takeaway

As a new doctor, you stand to earn a six-figure salary once you complete medical school and residency. But you’re likely also saddled with a six-figure student loan debt. Learning new strategies for saving and investing your money, and coming up with a smart plan to pay back your student loans, can help you dig out of debt and save for your future.

If you decide that student loan refinancing might be right for you, SoFi can help. Our medical professional refinancing offers competitive rates for doctors who have a loan balance of more than $150,000.

SoFi reserves our lowest interest rates for medical professionals like you.

Photo credit: iStock/Ivan Pantic

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).

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.

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.

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Jun

2023

10 Top Career Training Programs

By Brandi Lucey | Building Your Career, Life & Career, Student Loans, student_loan | Comments Off

When it comes to getting a secure, well-paying job, it’s not always necessary to get a college degree first.

Some students may choose a career training program to learn the necessary skills for a specific job, often more quickly and for less money than a four-year college degree. These programs may also be referred to as career certificate programs, usually certifying the students to work in a particular role once the course is completed.

Recent high school graduates or those who have attained their GED can often attend career training programs and get started on their careers after receiving their certificate.

Why Do People Choose Career Training Programs?

Two big factors in choosing to go through a career training program before or instead of going to college are time and money.

Career training programs typically can be completed in less time than it generally takes to complete an undergraduate degree. Some programs can be finished in as little as four months.

In addition, they’re also less expensive, which may mean that students have less student loan debt. On average, a career certificate program may cost around $100 per credit. By comparison, the average annual cost of in-state tuition at a public two-year institution is $3,862, and at a public four-year college, the in-state tuition averages $9,377 a year.

For instance, at Minnesota State University, certificate programs consist of nine to 30 credits, which can be completed in one year or less of full-time study. If these programs cost the average $100 per credit, they would cost between $900 and $3,000. This is fairly affordable compared to the cost of tuition at either a two-year or a four-year institution.

Another reason some people choose a career training program is that they need to, or would like to, start earning money relatively soon after graduating high school. And that way, if they borrowed money to help pay for their certificate program, they can put more money toward student loans to pay them off.

A career training program could be a more direct route to employment than getting an associate or bachelor’s degree for people who are sure about their career path. This could also be a beneficial route for students who want to save money to attend college later in life.

Choosing a Program

The most important thing to look for when choosing a career training program, whether it’s in-person or an online career training program, is accreditation. Accreditation verifies that an institution is meeting a certain level of quality. Usually, a certificate will need to come from an accredited institution for it to be considered legitimate.

Accreditation is done by private agencies, and most programs or institutions will list accreditations on their website.

The most up-to-date accreditation information can be found in the database of postsecondary institutions and programs compiled by the US Department of Education or with the specific accrediting agency’s website.

Once it’s clear that the potential programs are accredited, students can begin to narrow down which one will be best for them. This will be a highly personal choice, but there are a few factors worthy of attention, including cost, course length, and type of instruction (online vs. in-person).

Job search assistance—which might include resume writing workshops, job fairs, or interview prep—is another element that may help set students up for success.

Top Paying Jobs For Certificate Holders

In addition to career training programs having the potential to save students time and money, people want to know that they’ll be able to make a good living with those jobs. They also want jobs that can help pay off any money borrowed for school.

These are some of the highest paying jobs for those opting to go through a career training program:

1. Web Designer

According to the US Bureau of Labor Statistics, the average annual income for a web designer is $78,300, with the educational requirements ranging from a high school diploma to a bachelor’s degree. This job is growing faster than average, so it has a promising future.

2. Paralegals and Legal Assistants

Paralegals and legal assistants make, on average, $56,230 per year. The required education for an entry-level job as a paralegal is a certificate or an associate degree. This job is also growing at a rate much faster than average, showing great potential for a long-term career.

3. Solar Photovoltaic Installer

Solar panel installation is a growing field with decent pay and a lot of projected growth for the future. The median annual pay is $47,670, with only a high school degree or a certificate required to begin working.

4. Licensed practical and licensed vocational nurses

Training to become a licensed practical or licensed vocational nurse typically takes only one year of full-time study, and the median annual salary is $48,070. This job is growing as fast as average and is in a field that will certainly always exist. This could be a good choice for someone who wants to be in the medical field without the time and financial commitment it takes to become a doctor.

5. Medical Records Technician

Working as a medical records technician usually only requires a certificate, and sometimes an associate degree. This job has a median annual pay of $46,660 and the potential to work from home.

6. Pharmacy Technician

The median pay for a pharmacy technician is $36,740 per year. This job is growing at an average rate and typically requires on-the-job training or a formal training program, most of which last one year. Some longer pharmacy tech training programs culminate in an associate degree.

7. Computer Support Specialist

The role of a computer support specialist can vary widely, which means the educational requirements may also vary. Some jobs in this field may require a bachelor’s degree, but others may only require an associate degree or a certificate. The median annual pay for a computer support specialist is $57,910, and the field is growing as fast as average.

8. Phlebotomists

Phlebotomists draw blood and may work in hospitals, labs, or doctors’ offices. Professional certification, which can be gained after completing a phlebotomy training program, is the credential generally preferred by employers. This job has a median annual pay of $37,380 and it’s growing much faster than average.

9. Medical Assistants

Medical assistants have a median annual pay of $37,190 and the job only requires a certificate or on-the-job training. This job is growing much faster than average.

10. Wind Turbine Technician

The median pay for this job is $56,260 per year and the only education required is a training certificate through a technical program. This job is growing at a rate much faster than average, which could make it a great choice for students who are ready to start their career shortly after graduating high school.

Paying for a Career Training Program

Just because career training programs are typically less expensive than college doesn’t mean they’ll be easy to pay for. Some programs last longer than others and could end up costing a fair chunk of money. Here are some ways to help cover the costs.

Pay for it. One way to pay for a career training program is to save up the amount of money needed before starting it, especially if the program is short or has a lower cost. Paying in full with cash means no debt to worry about.

Financial aid. Another potential way to pay for a career training program is to apply for federal student financial aid, which may be available to students enrolled in eligible degree or certificate programs and who meet other eligibility requirements. Completing the Free Application for Free Application for Federal Student Aid (FAFSA) is the first step. After submitting the FAFSA, students will find out if they’re eligible for federal student aid, which could include federal student loans and/or work-study.

Scholarships. Students who aren’t eligible for financial aid or those who can’t cover tuition costs may want to look for scholarships. There may be fewer scholarships available for certificate programs than there are for degree programs, but they’re out there.

The best place to start looking for scholarships is with the school the student is attending. Some schools set up their own scholarships. Alternatively, students can search for scholarships offered by professional organizations in their related fields.

Private student loans. A private student loan may be another option to cover the cost of a career training program.

One of the basics of student loans is that loan terms will vary from lender to lender, and applicants are encouraged to shop around. It also makes sense for students to exhaust all federal student aid options before considering private student loans.

Learn more about how private student loans work with this private student loans guide.

Student loan refinancing. If you took out student loans and the payments are difficult to manage, or you’d like to get a lower interest rate, you can look into refinancing student loans.

One of the advantages of refinancing student loans is that you may be able to qualify for more favorable terms or a lower rate, which could help you save money.

Just be aware that when you refinance federal student loans, you lose access to federal protections and programs like income-driven repayment plans. Be sure you don’t need those benefits if you choose to refinance.

The Takeaway

Students can be under a lot of pressure to go right into a four-year college or university after graduating high school, but career training programs provide an alternative that can also set them up for success, typically in less time and for less money.

There are a number of options to help pay for a certificate training program, including saving up for it, applying for federal student financial aid, looking for scholarships, and taking out a private student loan.

If you have student loans and you’d like to get a more favorable rate or better terms, consider student loan refinancing. SoFi offers loans with low fixed or variable rates, flexible terms, and no fees. And you can find out if you prequalify in two minutes.

Learn your options for student loan refinancing with SoFi.

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Jun

2023

Tips on How to Pay for MBA School

By Sarah Brooks | Budgeting & Goals, Building Your Career, Fresh Out of School, Life & Career, Student Loans, student_loan | No Comments

Getting a Master of Business Administration is an investment. Tuition costs vary widely depending on the school, but the average cost of an MBA is $61,800 for a program in the U.S.

If you’ve committed to pursuing an MBA, the reality is that a higher income is probably still a few years away. However, you’re responsible for the cost of schooling now. It can be daunting, but there are options for making business school more affordable. Here are a few tips to evaluate as you craft a plan to pay for your MBA program.

Saving Up in Advance

If you’re already employed, and especially if you earn a high salary, it may make sense for you to stay in your gig for a few more years and put money away toward your degree. The more you save now, the less you may have to take out in loans later. If you’re interested in accelerating your savings, consider cutting your expenses to prepare for the lifestyle change of becoming a student again.

Taking Advantage of Free Money

There are a plethora of scholarships, grants, and fellowships available for business students. If you manage to land one, they can help reduce your costs slightly or significantly, depending on the size of the award.

When hunting for scholarships, consider starting with the schools you’re thinking of attending. Many institutions offer their own need- or merit-based scholarships and fellowships, some of which may even fund the entire cost of MBA tuition. Many, but not all, of these are geared toward specific groups of students.

Awards may be based on academic excellence, entrepreneurship, and for those committed to careers in real estate or finance. Contact your school’s admissions or financial aid departments to learn about the opportunities you qualify for.

Getting Sponsored by a Company

Some employers offer to pay for all or part of an MBA degree. In exchange, they may require that you work there for a certain time period beforehand and commit to maintaining your employment for some time after you graduate.

Some companies may offer relatively modest grants, while others might offer to cover the bulk of tuition costs. Some companies that offer tuition reimbursement for employees pursuing MBAs include Deloitte, Bank of America, Apple, Intel, Procter & Gamble, and Chevron.

If you can land a job at a company that offers this benefit, it can be a major help in paying for school and reducing your debt burden. Just be sure that you’re willing to meet the commitments, which in most cases means staying with your employer for a while.

Taking Out Student Loans

If you can’t make up the full cost of tuition and living expenses through savings, scholarships, or sponsorships, borrowing student loans is another option. You might first consider borrowing from the federal government, as federal loans offer certain borrower protections and flexible student loan repayment options.

Federal Student Loans

To apply for federal student loans, first fill out the Free Application for Federal Student Aid (FAFSA®). The school you attend will determine the maximum you’re able to take out in loans each year, but you don’t have to take out the full amount. You might choose to only borrow as much as you need, since you’ll have to pay this money back later—with interest, of course.

Graduate students are generally eligible for Direct Unsubsidized Loans (up to $20,500 each year) or Direct PLUS Loans. Neither of these loans is awarded based on financial need.

Both of them accrue interest while the student is enrolled in school. Unless you pay the interest while you’re in school, it will get capitalized (or added to the principal of the loan), which can increase the amount you owe over the life of the loan.

Direct Unsubsidized Loans will have a six-month grace period after graduation in which you won’t have to make principal payments (remember, interest still accrues). Direct PLUS Loans, however, do not have a grace period, so principal payments are due as soon as you earn your degree.

Private Student Loans

If you aren’t able to borrow as much as you need in federal loans, you can also apply for MBA student loans with private lenders, including banks and online financial institutions.

Private student loans will have their own interest rates, terms, and possible benefits. Make sure to research the different lenders out there and see which is the best fit for your financial situation.

Paying Student Loans Back

Taking out a big loan can be daunting, but there are options for making repayment affordable, especially with federal loans. The government offers four income-based repayment plans that tie your monthly payment to your discretionary income.

If you make all the minimum payments for 20 or 25 years, depending on the plan, the balance will be forgiven. (However, the amount forgiven may be considered taxable income.) If you run into economic hardship, you can apply for a deferment or forbearance, which may allow eligible applicants to reduce or stop payments temporarily.

If you put your degree to use at a government agency or nonprofit organization, you may also qualify for Public Service Loan Forgiveness. If you meet the (extremely stringent) criteria, this program will forgive your loan balance after you make 120 qualifying monthly payments (10 years) under an income-driven repayment plan.

Refinancing Student Loans

If you’re still paying off student debt from college or another graduate degree as you enter your MBA program, you could consider looking into student loan refinancing.

This involves applying for a new loan with a private lender and, if you qualify, using it to pay off your existing loans. Particularly if you have a solid credit and employment history, you might be able to snag a lower interest rate or reduced monthly payment.

While there are many advantages of refinancing student loans, there are also disadvantages, as well. If you refinance federal student loans, you lose access to federal forgiveness programs and income-based repayment plans. Make sure you do not plan on taking advantage of these programs before deciding to refinance your student loans.

The Takeaway

MBA programs can offer a valuable opportunity to advance your career and increase your income, but they can also come with a hefty price tag. Options to pay for your MBA degree can include using savings, getting a scholarship, grant, or fellowship, or borrowing student loans. Everyone’s plan for financing their education may be different and can include a combination of multiple resources.

Making existing loans manageable while you’re in school can go a long way to making your MBA affordable. Down the line, you can consider refinancing the loans you take out to get you through your MBA program. You can get quotes online in just a few minutes to help figure out whether refinancing can get you a better deal.

If you do decide to refinance your student loans, consider SoFi. SoFi offers an easy online application, flexible terms, and competitive rates.

See if you prequalify for student loan refinancing with SoFi.

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.

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.

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.

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Jun

2023

Changing Careers After Law School (and Why You May Have To)

By Pam O’Brien | Building Your Career, Life & Career, student_loan | No Comments

After years of law school, internships, landing a job at a law firm and working to climb the ladder, some lawyers decide they’re ready to change careers. But, they might wonder, how easy will it be to make a switch?

Fortunately, pivoting after law school may be easier than it used to be, and there are some great alternative careers for lawyers out there—if you know where to look and how to position yourself.

Reasons Lawyers Might Consider Making a Career Switch

It might seem surprising that a lawyer would want to make a career change, after all the years they’ve spent studying and preparing, but it’s not actually uncommon. While TV and film can make it seem like practicing law is a thrilling blend of opening and closing arguments and life-changing verdicts passed down by a jury, there are plenty of mundane tasks in the mix.

In some cases, legal work can be relatively dull. Instead of high stakes court cases, it can be a lot of reading, research, and paperwork. Sometimes the work can be isolating as a lot of time is spent working alone.

Beyond that, lawyers can face a ton of pressure at work, which can lead to a stressful day-to-day work environment. Lawyers have a lot on their plates: tracking deadlines, handling client demands, staying on the partner track, keeping up with the changing laws and regulations, and more.

Not only can the stress of the job be exhausting, getting the job done can require long hours. And at most law firms, lawyers are measured by billable hours. Not how many hours the lawyers actually work, and not the quality of the work, but how many hours they can bill to a client.

Combine that with the fact that oftentimes a lawyer’s schedule is out of their control, dictated by the courts or bosses at a firm, it’s no wonder some lawyers are interested in trying something new.

A career in law, or even a career change to a lawyer, might be worth it for a great paycheck. However, the U.S. Bureau of Labor Statistics reports that the median annual pay for a lawyer in 2021 was $127,990 per year—which means half of the lawyers out there are making less than that. And when you’re dealing with law school debt, that could make for a difficult financial balancing act.

Some law school graduates may decide they could make a decent living and enjoy themselves more in a different profession. And so, they might choose to become a second-career lawyer.

So How Can You Prepare Your Exit Strategy?

Leaving a career as a lawyer can be a huge decision. If you’re considering making a career switch — whether you’re considering a career change to law or a career change out of law — you might want to think about preparing an exit strategy. Here are some ideas for planning ahead as you think about making the jump from lawyer to the new career of your choice.

Aggressively Paying Off Student Loan Debt

If you have solid credit and a good job (among other factors), you may qualify for a better interest rate and/or terms with a private lender.

Having a lot of student debt hanging over your head might limit your options. Student loan refinancing could be a good choice for those who have higher interest, unsubsidized Direct Loans, Graduate PLUS loans, and/or private loans.

When should you refinance your student loans? Now might be the right time if you have solid credit and a good job (among other factors). Those things could help you qualify for a better interest rate and/or more favorable terms with a private lender that might help you get out from under that student debt faster.

This student loan refinance calculator can show you how much refinancing might save you.

However, it’s important to be aware that federal loans carry some special benefits that are not accessible if you refinance them into a private loan—such as income-driven repayment. Make sure you won’t need to use these federal programs before refinancing.

Recommended: Student Loan Refinancing Guide

Creating a Budget and an Emergency Fund

Lawyers tend to make pretty decent money right out of the gate (the problem typically comes later when income can start to stagnate), so it may be wise to avoid spending those years letting your lifestyle rise to the level of your income. Instead, put together a budget that allows you to save for the future.

Another wise idea is to start building an emergency fund. If you think your salary will take a hit should you leave the law, that fund could help tide you over until you firmly establish yourself in your new career.

Using Your Time as a Lawyer to Make Connections

As a lawyer, you’ll likely come into contact with people in a variety of different fields. Building professional relationships and keeping them going could pay off when you start putting out feelers. When you approach them, be courteous and respectful of their time, and if you decide to ask someone for help with your new career path, be clear about what you want—advice, an introduction, or a lead on a job.

Planning Ahead

Try moving your focus from what you don’t like about your current job to how you might transfer your knowledge, skills, and passion to a new career. Lawyers can make good researchers and investigators, compliance professionals, business analysts, real estate professionals, executives, and entrepreneurs. Some go into law enforcement. Others might end up in the media or communications.

Can You Have a Non-Legal Job With a Law Degree?

It’s absolutely possible to make a career change to a non-legal job if you have a law degree. In fact, a law degree can speak volumes about your knowledge, skills, and work ethic. It can help to show that you’re analytical, organized, and good at project management. Plus, you’re aware of the potential legal ramifications of business decisions, which can be very helpful to almost any company.

Probably the biggest hurdle for most people is simply giving up the idea of being an attorney. But if you can open your mind and look at all the other options, you may find something that makes you even happier.

When you’re ready to make the new-career move, refinancing your student loans could help you get your student debt under control so you can more easily move forward. SoFi offers loans with low fixed or variable rates, flexible terms and no fees. Plus, you can find out if you prequalify in just two minutes.

Check your rate and learn your options for student loan refinancing with SoFi.

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What to Do Before Starting Your First Job

Researching the Company

Doing a Dry Run of Your Commute

Planning for the Day Ahead

Gathering the Appropriate Paperwork

Getting to Know the Team

Updating (Or Creating) Your Financial Plan

Refining Your Budget

Planning for Future You

Handling Debt

Budgeting as a New Doctor

Resist the Urge to Start Spending Right Away

Get Serious About Savings

Consider Different Investments

Protect Your Income

Develop a Plan to Repay Student Loans

Explore Your Refinancing Options

The Takeaway

10 Top Career Training Programs

Why Do People Choose Career Training Programs?

Choosing a Program

Top Paying Jobs For Certificate Holders

1. Web Designer

2. Paralegals and Legal Assistants

3. Solar Photovoltaic Installer

4. Licensed practical and licensed vocational nurses

5. Medical Records Technician

6. Pharmacy Technician

7. Computer Support Specialist

8. Phlebotomists

9. Medical Assistants

10. Wind Turbine Technician

Paying for a Career Training Program

The Takeaway

Tips on How to Pay for MBA School

Saving Up in Advance

Taking Advantage of Free Money

Getting Sponsored by a Company

Taking Out Student Loans

Federal Student Loans

Private Student Loans

Paying Student Loans Back

Refinancing Student Loans

The Takeaway

Changing Careers After Law School (and Why You May Have To)

Reasons Lawyers Might Consider Making a Career Switch

So How Can You Prepare Your Exit Strategy?

Aggressively Paying Off Student Loan Debt

Creating a Budget and an Emergency Fund

Using Your Time as a Lawyer to Make Connections

Planning Ahead

Can You Have a Non-Legal Job With a Law Degree?

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