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You remember how psyched you were when you got to sign the lease for your current apartment. Especially in a huge city where finding a place that meets your specifications can be like searching for the holy grail, once you find that perfect spot, you hold on tight.

That makes sense. But even if you’re happy paying rent for your place now and have been for the last several years, you might have moved up in your career since then, or you’re thinking about having a kid and need a place that’s nearer to school districts than bars. Plus, depending on marketing conditions, putting that rent money toward owning a place would likely become a great investment.

In that goal, you’re not alone, According to a 2018 Homebuyer Insights Report , 72% of millennials say that owning a home is a top priority.

It’s an exciting time, for sure, but a major financial decision like buying a home can be daunting—or even terrifying, especially if you have student loans to worry about.

Since you don’t want to be hasty or over-buy and hinder your efforts to reach financial wellness, here a few ways to help you know if you’re ready to take the leap to homeownership.

You’ve Saved for a Down Payment & Homeownership Costs

This is one of the most important steps in the home buying process. According to a 2018 report report from the National Association of Realtors (NAR), of the buyers who took out a mortgage, 5% of them made a downpayment worth 6% or less of their home value. So, the traditional 20% down isn’t as common as believed. But, 6% down is still a chunk of change. And, the down payment is just one of the costs associated with buying a home.

It is important to consider other costs such as mortgage payment, closing costs, insurance, taxes, and more. So, when you are thinking about buying a home you should factor in all of these potential costs and make sure you have that saved or a plan of action to pay for these costs.

Double-Check How Much Home You Can Afford

As mentioned above, it’s a good idea to check if you can afford the additional costs that are associated with the home buying process. Use the home affordability calculator below to estimate the cost of purchasing a home and your monthly payment – including additional costs such as property tax, insurance, and closing costs.

You’re a Good Candidate for a Mortgage Loan

Not surprisingly, mortgage lenders pay close attention to job continuity and consistent income.

Another biggie is your debt-to-income ratio, which will give lenders insight into whether you can truly afford mortgage payments (seeing whether or not you have too much debt to buy a house). To determine your ratio, it is a good idea to get prequalified for a mortgage loan to see what you would qualify for.

Then, you would take that estimated housing payment which would include principal, interest, taxes, insurance, and HOA (if applicable, along with ongoing monthly debt payments to help you understand what your DTI is.

If you’re at that threshold, but haven’t saved enough for a huge down payment, don’t worry. Some lenders are prepared to help—SoFi, for example, offers flexible down payment options starting at as little as 10% on loans up to $3 million, with competitive rates.

Remember, there’s a lot of competition among lenders, so shop around to choose the one that offers terms to suit your needs.

You’re Ready to be Your Own Landlord

Are you ready to handle home repairs? If something breaks it is all on you.

A condo can be a good choice if you travel a lot or if you don’t want the responsibility of maintaining a yard. Condos can be a good stepping stone to owning a house as the property is less time consuming because you don’t have any exterior or lawn maintenance to handle.

But you’ll still need to be prepared to make small repairs yourself, hire a pro, and replace big-ticket items, such as major appliances, now and then. So make sure there’s enough money in your reserve fund to cover the routine stuff and the surprises.

A good rule of thumb is to set aside about 1-3% of the home’s value each year. Some years, you might not need to pay that much. But, if you live in your home long enough, you’ll likely shell out for hefty repairs in other years. Once you buy your home you can use SoFi’s Home Improvement Cost Calculator to get an idea of how much your renovation projects will cost.

You’re Ready to Settle Down

It is harder to move cities once you buy a home. You can’t just pick up and leave as you can if you are renting. Buying a home is a big decision, so it is important to make sure you are ready to settle down in that location for a while.

You Know Location is Everything

Ernst and Young’s The Millennial Economy 2018 study reported that 62% of Millennials live outside of the city either in the suburbs, small towns, or in rural areas. The location of your home—whether it’s a big city or on the outskirts—could impact your budget and overall enjoyment as a homeowner.

If you’re serious about buying your first home, you’ve already taken the time to scope out neighborhoods and to understand how to choose a location best fits your lifestyle. You know that the overall feel of a neighborhood, the quality of life it offers, and its proximity to your job matters—a lot.

Preparing to Take the Next Big Step

If you’re definitely ready for homeownership, you’ll need to get your financial ducks in a row. Here are a few tips to get you started:

Getting Out of the Student Loan Debt Shadow

Don’t fret if your student loans aren’t paid off yet. You can Look into refinancing your student loans, which may lower your monthly payments, and/or decrease the loan term, and allow you to save faster for a home down payment.

Hitting the Homebuyer Books

Download The SoFi Guide to First Time Home Buying to learn some essential steps to take, the types of mortgages available, and common real estate terms.

Keeping Track of Your Credit Blemishes

Your credit score is one factor that will help a lender determine if you qualify for the loan; if it’s high enough, you could possibly snag better terms on your mortgage loan.

Follow a step-by-step plan for paying down debt so you can work toward boosting your credit rating. Buying a home with a significant other or a spouse is a huge personal accomplishment and major financial milestone.

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.

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.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

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

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

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If you’re currently in the process of planning a wedding, you’re likely enjoying the endless cake samples and making difficult decisions, like whether to have a donut bar or a candy station at the reception.

Unfortunately, wedding planning isn’t just about delicious dessert samples and seating arrangement logistics.

It can be stressful, especially when it comes to figuring out how you’ll pay for all those savory and sweet treats and gift bags for your guests—let alone the rest of it like, you know, a dress, the actual reception hall, a minister, food, and an open bar if you’re lucky.

According to The Knot’s 2018 Real Weddings Survey, the costs of planning a couple’s special day now averages $33,931, though this number can vary greatly depending on where you live.

Expensive, densely populated cities like New York and Chicago will likely be more expensive than hosting a wedding in a more rural locale.

While there are ways to save on wedding costs—like cutting back on pricey place settings, keeping the wedding parties smaller, opting for a cash bar, and doing a bit of do-it-yourself craft work on flower arrangements—more couples are finding that they need a little bit of extra cash to get them through the wedding planning process. This is especially true when every vendor seems to require an immediate deposit.

That’s why some turn to wedding loans as an alternative to funding their weddings upfront.

Find a venue right out of a Pinterest post, but need a $10,000 deposit by next week to secure it?

Try on the dress of your dreams, then discover it’s $2,500 more than you have in your checking account?

Want the band of your dreams to play but need to plunk down cash to get them?

If your savings are coming up short, an unsecured loan could be just what you need to keep your dream wedding from being derailed. Here’s some more information about the ins and outs of wedding loans to help you decide if it is the right choice for your big day.

What Is a Wedding Loan?

A wedding loan doesn’t come from a wedding fairy godmother with a wave of her wand—although that would make for a better story. Instead, a wedding loan is simply a personal loan that you use to pay for wedding expenses.

So, what’s a personal loan then? A personal loan is just as the name implies—a loan you take out for (almost) any personal reason at all. You could use a personal loan for everything from renovating your home, to consolidating high-interest credit debt, to paying for a vacation or a wedding.

Personal loans are typically given out as one lump sum. For example, a person could take out a $10,000 personal loan for their wedding. They’d receive this payment upfront and could use the cash immediately.

The lender and the recipient would agree upon a repayment plan as part of the terms of the loan. These specific terms will vary by lender but, typically unsecured personal loans are paid back within one to five years.

A personal loan can be either secured or unsecured. With an unsecured personal loan, a lender won’t require a collateral asset. With a secured loan, the lender could require collateral or could require a co-signer on the loan—like a house or other asset of value.

Most lenders also allow borrowers to pay off the loan early, regardless of the loan term. That means if you happen to get a lot of cash as a wedding gift, you could use it to pay on your loan in part or in full.

Consider reviewing the terms and conditions completely before borrowing any loan, while not all lenders do, some may charge a prepayment penalty.

Variable-rate loans may also help save money on interest in the short-term, but it could rise in the long run. Fixed-rate loans mean the interest will remain the same as when the borrower signed on the dotted line, even if other interest rates shoot up faster than the price of a good DJ on a Saturday in the summer.

Considering a Personal Loan for a Wedding?

Personal loans can be a good option for those who have budgeted to pay for their wedding expenses, but just don’t have the cash on hand to cover immediate deposits or a slew of bills at once.

Maybe your parents committed to helping out with wedding costs and promised to send a cash infusion next month, but the florist whose work looks like a living Instagram photo will go with another couple if you don’t book now.

Or maybe you and your betrothed are putting aside a certain amount each month for wedding expenses, but you don’t want to put the catering deposit on your credit card because all the travel rewards points in the world will not outweigh the interest you’ll be charged.

In other words, if you have a good plan for paying your personal loan back and you just need it to bridge the gap, then a personal loan for your wedding might be perfect for you.

However, if you don’t know how you will pay off your loan but you really want a little extra room in your budget to buy that Vera Wang dress, you might want to think twice before signing on the dotted line for a personal loan.

The last thing you want to do is start your marriage off knee-deep in debt you can’t pay back, even if the pictures look amazing.

Pros and Cons of Wedding Loans

Need a little help weighing your options? Here are a few pros to getting an unsecured personal loan to help pay for your big day.

•   Personal loans are typically fast, easy ways to get some extra cash when you have to pay for deposits or cover expenses quickly for a wedding.

•   Many lenders allow you to apply for a personal loan online, making it easy and efficient to secure funding if you qualify.

•   Funds may be available in as little as one business day, depending on the lender. That way you won’t have to wait around to start putting down deposits and checking things off your wedding to-do list.

•   Personal loan lenders typically charge less interest than credit cards. This could make it a more financially viable option for those looking to pay off their vendors without paying extra in interest.

•   Personal loans are one way that could help build your credit over the long-term, if you pay them back on time, which is an excellent gift to give both you and your spouse on your wedding day. But, like all good things in life, personal loans have many downsides. Here are a few cons to be wary of before signing on the dotted line.

•   Personal loans can tempt people to spend more than they can afford. If you take one out, remember you have to pay it all back—plus interest.

•   Some personal loan lenders have prepayment or origination fees. Make sure to check the fine print before agreeing to anything.

•   It’s always a better bet to save up for anticipated expenses rather than financing them. Try to budget and save first, see if your vendors are willing to work out a payment plan, and think about what you really need versus what you want at your wedding.

•   You might be paying off your party years later, with interest. If you still feel like you need extra cash to fund your big day, check to ensure your personal loan has a lower interest rate than credit cards before taking one out.

How Much Can You Borrow for Your Wedding?

To qualify for a personal loan with a competitive rate, you’ll likely need a good credit score and a well-paying job, among other important financial factors, or potentially a co-borrower who has both of those things. Many lenders consider a good credit score to be anything above 700 , though this may vary depending on the scoring model used by the lender.

You might be able to get a loan if your score is below that, though it’s possible you’ll have to pay more in interest or you might qualify to borrow less money.

Things like how much debt you currently have, including student loans or a mortgage, can also impact how much you can borrow. At SoFi, we offer personal loans up to $100,000.

But unless you’re planning a wedding at the Plaza Hotel in Manhattan complete with champagne towers and children dressed as cherubs, it’s unlikely you’ll need that much.

Getting the Funds You Need for Your Wedding Day

Just like any loan, you need to have all your financial information and documents in order before you apply. Be sure to have things like proof of income, bank statements, information about your other debt, your Social Security number, and your identification ready.

With most online lenders, you can get pre-qualified and then decide whether to move forward with the online application. From there, you typically choose your rate, answer any additional questions, send copies of the necessary documentation, and sign the loan agreement all within a day or two.

Again, while saving up for your wedding is probably preferable to taking on debt before you say “I do,” expenses can arise that you may not expect, so knowing what your options are for personal loans can be helpful.

Don’t forget to do your research and understand everything you should be looking for in a lender so that you don’t get stuck with a loan that’s about as appealing as that ugly set of grey serving platters your Aunt Ina bought you for your wedding shower.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

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.

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.

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More Americans than ever before are taking to the skies to travel to new countries. According to the most recent statistics from the U.S. Commerce Department’s National Travel and Tourism Office, a record 93 million Americans traveled internationally in 2018. Now it could be your turn to pack your bags and go.

But, before you go anywhere packing is a necessity. One good way to pack for an international trip is by making a list and checking it twice, then maybe a third time, to ensure you have everything you need. Here’s a quick list of things you might want to pack for international travel based on an eight-day trip.

What Clothes to Pack When Traveling

Your clothing packing list might vary depending on your destination and length of stay. But, in general, bringing layering options works well.

Not only could this help you overcome any temperature swings, it might also allow you to mix and match to create more outfits with fewer articles of clothing. For optimal flexibility, you might want to bring clothes that fit into a similar color palette.

Shirts: Four short-sleeve shirts and two long-sleeve options. You could also pack one nicer blouse if you know you’re going somewhere with a dress code.

Pants: Two—yes, just two—pairs. On an eight-day trip, you should only need one lightweight and one heavier pair of pants, like jeans, to get by.

Undergarments: A pair of undies for each day of your trip and one extra pair just in case your flight is delayed. And you might want to pack at least two pairs of socks, depending on your destination, preferably made from moisture-wicking material.

Bathing suit: You might want to throw at least one bathing suit in your bag, even if you aren’t going somewhere warm. You never know when a hotel may have one or the opportunity for swimming will arise.

Shoes: Shoes can be bulky, so you might want to minimize the number of pairs you bring. Sightseeing often requires lots of walking, so you could bring along one pair of sturdy, supportive shoes you can walk miles in.

A pair of nicer shoes, like loafers, dress shoes, boots, or heels, for dinners or evening events could come in handy as well. Ideally, these will be comfortable as well. If your suitcase is tight on space, you might want to wear the bulkiest pair on the plane.

Jacket: This, again, depends on where you’re going. But, for most destinations, you’ll likely need just one: Either a light coat for warmer destinations or a heavier coat to cooler climates. You could wear this on the plane to save room in your bag and it could double as a blanket if you get cold in-flight.

Sleepwear: A T-shirt and a pair of shorts or lounge pants can easily fold into a side pocket of your bag, saving you space.

Toiletries and Personal Health

The good part about traveling internationally is the fact that your hotels—and even most home-share rentals—likely come with toiletries included. So unless you have preferred brands, you could skip the shampoo, conditioner, or body wash. However, there are still a few things you may want to pack for yourself.

Hairbrush or comb: A small brush or comb packs away easily and might help keep you presentable.

Small plastic baggies: Many airports require travelers to take any liquids out of their bag and place them in small plastic baggies before going through security. You could save some time and pack your own.

Laundry soap: You could pop a little laundry soap into a small container and put it in your toiletry bag. Though you may not be able to find a washer and dryer everywhere you go, you could still launder your clothing in a hotel sink or shower if need be.

Diarrhea medication: There is nothing quite as bad as getting an upset stomach while traveling. But traveling means mixing up your routine and trying new foods, both of which can affect your gut health. And traveler’s diarrhea is an unfortunate reality for 30% to 70% of travelers of travelers according to the Centers for Disease Control and Prevention (CDC). Having some remedies on hand could help if you’re one of them.

Pain relievers: Headaches, muscle aches, or general pains can get you down on the road. You could bring a bottle of your preferred pain killer so minor aches and pains don’t prevent you from enjoying each day of your vacation.

Eye drops: For those with contact lenses, you might want to make sure you pack enough solution to last for your entire trip. For those who wear glasses or don’t need any corrective lenses, eye drops might come in handy if allergies act up.

Benadryl: Speaking of allergies, it could be prudent to pack some Benadryl in case of unforeseen allergic reactions.

Tech-Savvy Travelers

It’s 2019, which means you probably don’t leave home without your electronics anyway. But, there still may be a few tech-savvy items you might forget.

Smartphone: Yes, you’re likely going to bring along your phone. But, before you go, you might want to download any apps you may need in your destination. That could include offline maps, language translators, airline apps to keep all your documents in one place, and more.

GPS system: If you’re going off the beaten path, or anywhere you’re unfamiliar with, it could be smart to bring along an external GPS system, a GPS watch, or download a GPS app on your phone. That way, you’ll always know how to get to where you’re going.

Camera: Though your phone likely has a camera built in, you may want to bring a dedicated camera capable of taking higher-quality images and video, like a DSLR. With it, you might also bring along an extra battery, a charger, and at least two memory cards just to be safe.

Chargers: Before you depart, you could catalog each of your electronic items and ensure you not only have a corresponding charger but also have the corresponding adapter for the country you’re heading to.

Important Documents

On your trip, you might need a few documents. You could keep them all handy in a folder that stays in the same pocket of your bag throughout the trip.

Passport: This is a biggie. Not only will you not be able to board a plane, but you’ll likely not be able to enter many places, or return home, without it.

You might want to print out a copy of your passport and passport photo. This way, if your passport is lost or stolen, the local embassy may be able to expedite a new one.

Car rental and hotel reservation agreement: You might consider printing out your car rental agreement with all the pricing listed so you don’t need to haggle on arrival. Same goes for hotel reservations.

Money and Insurance

You won’t get very far if you forget your dollars—or pesos, or francs, or euros—or whatever other foreign currency you need.

Cash: You could bring a mix of local currency, but you might not want to bring too much on your person. That way you minimize your own security risk, but still have enough handy for a cab, a coffee, or a tip. A debit card that offers reimbursement for ATM fees worldwide could also be an asset while traveling. With SoFi Checking and Savings®, you can use any ATM that accepts Mastercard® and be reimbursed for the fee. (subject to change)

Copy of your travel insurance: While travel insurance isn’t a requirement, it could be a handy addition for longer, more expensive excursions. It could help protect you in case of emergency, evacuation, or could even help you get reimbursed if you need to cancel all or part of your trip.

The Little Extras

Here’s where you can get a little fancy-free with your luggage and pack a few items you simply must have with you. Some fun additions may include:

A journal: You could create an archive of your favorite travel experiences. It might include a record of restaurants you loved, amazing museums, and the people you met along the way. With time, little details can become fuzzy, and having a journal detailing your trips and adventures might be invaluable.

A scarf: This is a versatile item for any traveler. It can help keep you warm, add a little life to an outfit, and it can double as a blanket (or pillow) on long-haul flights.

A great book: Traveling sometimes means you’ll be sitting—a lot. Planes, trains, and automobiles take a lot of time, which you could put to good use by reading a great book along the way.

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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Does the thought of possibly shelling out tens of thousands of dollars to sit in a classroom for four more years after graduating from high school make you groan? While college is a good option for many people, it isn’t for everyone—and not going to a four year college doesn’t mean you can’t have a meaningful career.

More people than ever before have a college degree, but a four-year program isn’t the only way to be successful. The truth is that college may not be the right path for all high school grads.

There are many colleges you can consider, but for some people, sitting in class for another four years to get an expensive degree doesn’t hold interest. And for many, family or work obligations make it difficult to pursue full-time education.

There are certain jobs for which you need a college degree, like engineering or counseling, but there are plenty of careers out there that might be a better fit for you. And, as we mentioned, college degrees can be pricey.

In the 2019–20 school year, the average in-state college tuition and fees was just over $10,000 , and for private school, it was about $36,000. The cost of college has actually grown eight times more quickly than wages from 1989 to 2016. That means that an expensive college degree may not be a strong return on investment for certain career paths.

Alternatives to a College Degree

Just because you aren’t interested in a four-year degree doesn’t mean you need to forgo higher education entirely. The popularity of alternative educational models, like trade schools, is rising, and community colleges offer many practical certification and two year associate degree programs that can help you get ahead.

It is important to know that even if you’re not planning to pursue a four-year degree, you still have options when it comes to creating a career that is right for you.

Trade School

Sometimes known as technical or vocational schools, trade schools can prepare you for a specific job, such as truck driving, nursing, or medical assistance. These programs are normally much shorter than four years, and certain programs may allow you to finish in only a few months. There are both public and private trade schools, with some operating on a for-profit basis.

Trade schools don’t award bachelor’s degrees. Instead, when you graduate from a trade school, you typically receive a diploma or certificate indicating that you are trained and certified to perform a specific job. Some trade school programs do offer associate degrees, which are the same type of degrees offered by many community colleges.

Community College

And that brings us to community colleges, which, as we mentioned above, usually offer two-year degrees called associate degrees. These degrees can either stand alone or be a stepping stone to obtaining a bachelor’s degree at a four-year school. But many community colleges offer career preparation programs that are designed to help students jump into the workforce without the need for a bachelor’s degree.

Community college could also be a great way to test out college life and see if you want to continue pursuing higher education. They tend to be much less expensive than four-year universities, which means it won’t cost you an arm and a leg before you decide if higher education is right for you.

Apprenticeships

Though you may not have realized it, apprenticeships are not just something you read about in a history book on the Middle Ages. Currently, the U.S. has a robust network of training programs and apprenticeships that are designed so you can learn a trade while working a paid job.

Apprenticeships can be a win-win for employers and employees because they allow those starting out to begin working immediately—that way, employers can fill vacant jobs and you can receive a paycheck right away.

Described as “learn while you earn,” they can help you learn how to use industry-specific tools and technologies and help you develop your skills over a period of time. According to the U.S. government, workers who train in apprenticeships earn about $300,000 more in earnings over their careers than workers who don’t go through or complete an apprenticeship program.

Starting a Business

Another option for those who aren’t interested in all-night cram sessions and dorm rooms is starting your own business. In fact, a 2017 study showed that more than half of business owners don’t have a four-year college degree.

If you are already passionate about—and have a lot of knowledge about—a specific field or industry, you might consider skipping college altogether and jumping into that business.

Starting your own business takes a lot of hard work, but it could mean that you get to be your own boss and work in an industry you love. And because you could quickly become an expert on the products or services you provide, you aren’t necessarily at a disadvantage because you lack a degree.

If You Do Go the College Route

There are plenty of options if you choose not to attend a four-year college. However, there are also options within the world of college: the type of college you choose, the major you decide to pursue, and how you pay for college.

There’s no denying it: Higher education is expensive. If you go that route, and you take out student loans, there are ways to help you manage the debt you are paying on. For some grads, loan refinancing can be a big help.

Refinancing your student loans with a private lender, like SoFi, may help you snag better repayment terms that can help facilitate a quicker payoff, such as a shorter term—or you could qualify for a lower interest rate.

One important thing to note is that refinancing federal loans with a private lender could make you ineligible for some federal loan benefits, like Public Service Loan Forgiveness (PSLF), so it’s important to do your research when deciding what the best program fit is for you.

Got that four-year degree and looking to pay off those loans? With SoFi, refinancing is fast and easy, and there are no hidden fees. Learn more and find your rate today.

SoFi Student Loan Refinance
SoFi Student Loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891. (www.nmlsconsumeraccess.org). SoFi Student Loan Refinance Loans are private loans and do not have the same repayment options that the federal loan program offers, or may become available, such as Public Service Loan Forgiveness, Income-Based Repayment, Income-Contingent Repayment, PAYE or SAVE. Additional terms and conditions apply. Lowest rates reserved for the most creditworthy borrowers. For additional product-specific legal and licensing information, see SoFi.com/legal.

SOSL18248

Teachers in the U.S. are faced with underfunded classrooms and stagnant pay. In fact, the average teacher salary has actually decreased 4.5% over the last 10 years. However, the average teacher salary can vary greatly depending on your level of experience, location and cost of living, and grade level or subject you teach.

Average Teacher Salary by State

The national average salary for a first-year teacher in the 2017-18 school year was $39,249, according to the most recent data available from the National Education Association . This comes in far below the overall average starting salary of $50,944 for graduates with a bachelor’s degree employed across all fields of work.

But where a teacher decides to live and work has a huge impact on a starting salary. For instance, the state with the lowest average for new teachers is Montana, at only $31,418—almost $10,000 less than the national average. And in Washington state, first-year teachers averaged $42,240, the highest across the country.

For experienced teachers, the average salary is higher. According to the NEA , the average public school teacher salary in the U.S. was $60,477 in the 2017-18 school year.

As with first-year teacher salaries, there is still a wide range when it comes to state averages , with New York, California, and Massachusetts on the high end—all over $80,000—and Mississippi, West Virginia, and Oklahoma at the lower end—all between $44,000-$47,000.

Also, high school teachers tend to make, on average, more money than their colleagues in elementary or middle school. The national average high school teacher salary was $62,860 in 2017, according to U.S. News Best Jobs Rankings . Middle school teachers averaged $61,040, and elementary school teachers $60,830.

However, it’s important to note that most salary reports and rankings do not account for cost-of-living differences. NPR ran an analysis in 2018 , with the help of EdBuild, to adjust the 2016 rankings of teacher salaries by states for cost of living.

When discussing average salaries, usually those numbers have not been adjusted for regional differences on things like rents and mortgages or day-to-day spending like food and day care.

Those costs can vary widely depending on where you live. The adjustments NPR made to the 2016 NEA data meant that, for instance, while New York ranked first in average salary at $77,957, it dropped to 17th place after the adjustment.

Another interesting example is that while Indiana and California appear to be vastly different in average teacher salary, at $50,715 and $72,842 respectively, the cost-of-living adjustment brings them within $100 of each other.

In the past year, teachers across the country have been going on strike to protest everything from low education budgets to flat wages.

In South Carolina, where the average teaching salary in 2017-18 was only $50,182 (about $10,000 lower than the national average), NBC News reports many teachers are working extra jobs just to make ends meet.

The state has pushed back on several efforts to give teachers substantial raises, according to the report. Teachers are working on factory assembly lines, checking tickets at event venues, or in retail jobs in order to make up for not having a living wage from their day jobs as teachers.

So, when you are looking for the average teacher salary in your state, make sure you also take into account your years of teaching experience, type of school, location, and cost of living.

Paying Off Your Student Loans as a Teacher

The National Center for Education Statistics reported in April 2018 that for the 2015-16 school year, there were 3.8 million full- and part-time public school teachers in the U.S., split evenly between elementary and secondary school teachers.

The class of 2016 graduated with an average debt of about $28,500, according to the College Board . On a standard 10-year repayment plan with a 6% interest rate, the monthly payment for that average debt amount would be about $316 per month.

For the new public school teacher only making an average of $39,249, that’s almost 10% of their annual income just spent on student loan payments.

Teachers in many states are also required to maintain certification by continuing their education, and may even decide to pursue a graduate degree or further education to help advance in their careers, which could result in compounded debt.

For teachers who are hoping to pursue student loan forgiveness, there are a few possibilities when it comes to federal loans:

Teacher Loan Forgiveness

This program currently can forgive up to $5,000 or up to $17,500 in federal loans, depending on the subject you teach. In order to qualify, you must be a full-time teacher and complete five years in a row teaching at a qualifying school or educational service agency. The eligible loans are federal Direct Loans and Stafford Loans.

Highly qualified math or science teachers or special education teachers may be able to receive the maximum amount of up to $17,500 of their student loans forgiven. Teachers of other subjects may be able to get up to $5,000 of their loans forgiven. There are additional requirements for teachers who are new to the profession as well.

Teachers may be able to get loan forgiveness under both the Teacher Loan Forgiveness and Public Service Loan Forgiveness programs, just not for the same period of teaching service.

Public Service Loan Forgiveness (PSLF)

Under this program, qualifying public service employees, which can include teachers, may be eligible to have their loan balance forgiven on federal Direct Loans after making 120 on-time payments under a qualifying repayment plan.

Unlike the Teacher Loan Forgiveness program, teachers do not need to teach at a low-income school or in a certain subject when applying for the PSLF Program. The requirements include that you are employed by the government on a local, state or federal level or work for certain non-profit organizations.

The payments only count if you are a teacher employed full-time by a qualified public service employer. Private loans and non-Direct federal loans are not eligible for this program, but may be able to be consolidated into a Direct Consolidation Loan. However, keep in mind that consolidation will probably restart the repayment clock and previous payments might not count.

That’s why it’s important to be on the right repayment plan from the start. The Department of Education recommends an income-driven repayment plan, instead of the 10-Year Standard Repayment Plan, to get the best value from the program.

This will cap your payments based on your income, and if you’re on the lower end of the teacher pay scale that will likely mean that, after 120 payments, there will probably still be some amount of debt to be forgiven.

If you didn’t choose an income-driven repayment plan before choosing the PSLF program, you may have been placed on the standard 10-year repayment plan and, possibly, there would be nothing left to forgive.

Teachers with Perkins Loans may be able to have their loans entirely forgiven by serving full-time in a public or nonprofit elementary or secondary school as a:
•   Teacher in a school serving low-income students.
•   Special education teacher.
•   Math, science, foreign languages, or bilingual education teacher, or teacher in any field determined by a state education agency as having a shortage of qualified teachers in that area.

To qualify , you must teach for at least one year, and then the loan amount is cancelled in yearly increments until 100% is cancelled after five years. The federal Perkins Loan program ended in September 2017, but loans distributed through the program may still qualify.

Refinancing Student Loans

If you have other loans, such as private loans, that do not qualify for these federal loan forgiveness programs it might be worth considering refinancing your student loan debt. This may help make your loan payments more affordable and possibly offer you a lower interest rate.

If you qualify to refinance with a private lender, such as SoFi, you may also be able to change your student loan’s term length to help lower your monthly payments.

While private lenders like SoFi can refinance both your federal and private student loans, you should know that in doing so, you lose benefits that federal student loans provide like income-driven repayment programs and Teacher Loan Forgiveness programs.

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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