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Illness and injury are an unfortunate (and scary!) fact of life, but once you’re patched up after surgery or a lengthy hospital stay, you want to focus on your recovery, not worrying about how on Earth you’re going to pay off any medical debt.

Medical debt can be overwhelming, and according to a 2018 study published by Health Affairs, it’s not just older Americans who are managing debt from medical bills.

It is actually Millennials who are racking up the most medical debt—11% of all people who had a medical bill go to collections in 2016 were just 27 years old. So how can you pay off medical bill debt and hopefully stay out of collections? There are several different options available that may help you manage your medical debt with minimal pain, so you can focus on feeling better.

Before we dive in, we should mention we realize the nature of medical debt is often very sensitive. These strategies are merely a collection of tips and commonplace ideas found through our research on the internet.

This article shouldn’t be considered advice in any sense; every person’s situation is unique, which means it’s always a good idea to check in with a professional before taking action yourself. With that said, let’s dive into what we found.

Medical Debt Payment Plans

Medical care can be expensive, especially if you’re facing a chronic condition with ongoing costs or a major surgery or hospital stay. One plan of action you might consider is contacting your medical provider to see if they offer payment plans.

Some providers offer payment plans that allow you to make payments on your medical bill over time, paying it off in installments. Talking to your healthcare provider or a hospital billing department can be a great first step to figuring out if there is a payment plan you can take advantage of when it comes to medical bill debt.

Of course, one major downside to payment plans is that not all medical providers or medical offices offer payment plans and may require full payment when services are rendered.

Likewise, some medical providers may only let you set up a payment plan in advance, which means that a payment plan might not be a solution for any medical debt you’ve already accrued. And of course, some payment plans may still be too prohibitively expensive to pay every month, even if you’re paying over time.

Using A Medical Credit Card

If you’re looking at a medical bill that you can’t pay out of pocket, you may be tempted to reach for a credit card. Before you hand over whatever card is in your wallet, you might want to consider looking into credit cards specifically designed to be used to pay for medical care.

Medical credit cards sometimes offer low or no interest for a predetermined period of time, which means that you may be able to pay your medical bill with the credit card and then pay off the card before it accrues interest.

But be careful—if you can’t pay off the credit card before the interest-free period is over, you might face high-interest charges, which could actually end up making your medical bills more expensive.

Consider pulling out the calculator and doing some math to see if you can afford to pay off your medical bills during the interest-free period before you decide to put the costs on a medical credit card. This can help you determine how useful a medical credit card might be in your specific situation.

Negotiating Directly With The Hospital

If you’re facing a big bill from the hospital, one thing to consider is reaching out directly to the hospital billing department to see if you can negotiate the total amount of your medical bill.

While it’s not precisely like haggling for a used car, most hospitals have a financial department that might be able to help you determine if you qualify for any cost deductions or discounts.

One other thing to keep in mind is that cash might just still be king. Some hospitals and medical providers might give you a discount just for paying in cash. This can be a good option if you can afford to make the payments in one lump sum and want to avoid any extra fees.

Taking Out A Personal Loan

Taking out a personal loan might also be a solution to managing medical debt. While personal loans are often overlooked, they may offer more benefits than credit cards, like lower interest rates and more flexibility.

In order to use a personal loan to pay off medical bill debt, you’d borrow money from a lender which you’d use to pay your medical debt, then you’d pay that money back to the lender over time in regular monthly payments. Like other types of loans and financing, lenders generally look at your personal financial history and ability to repay (among other factors) when deciding if you qualify for a personal loan and determining your interest rate.

Unlike other types of financing, however, a personal loan can be used for almost everything—from paying off a hospital bill to paying for your groceries while you’re out of work due to an injury or illness.

If you’re wondering how to clear medical debt from multiple sources, a personal loan might help. You may be able to use a personal loan to consolidate numerous medical debts into one monthly payment. This could work by taking out a medical loan and using it to consolidate different medical bills, which allows you to focus on paying off just one debt instead of managing multiple varying deadlines every month.

When searching for personal loans to pay for medical debt, be sure to read the fine print. Some providers may charge origination fees to process your loan, or prepayment fees if you pay off your loan early.

Also be wary if interest charges in your search, as high-interest charges could add more money paid over the life of the loan.

One other potential benefit of using personal loans is that the application process is relatively simple and you can usually find out your eligibility pretty quickly. With SoFi personal loans, it just takes a few minutes to check your rate. And with SoFi, there are no fees required.

There’s no way around it—medical bills can be hard to deal with. But making a plan for repayment you help you get on your way to financial and physical wellness.

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.

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.

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.

SOPL19042

If you’ve ever asked yourself the question, “if you withdraw from college, can you go back?” the simple answer is yes. But whether you left due to financial problems, family responsibilities, or other reasons, returning to college can be challenging.

Here are some things to know about going back to college after dropping out and how to help make the process go smoothly.

Having Some Ideas About Your Major

Regardless of how long it’s been since you left school, you’ll have to make up for lost time. At the same time, you may have had experiences during your time away from school that helped you solidify what you want to do with your life and career.

As a result, it’s a good idea to think about choosing a major. Whether it’s a bachelor’s or master’s degree, or a certificate program, knowing what subject you want to study and to what extent will help you finish your schooling faster.

If you’re still not sure about what you want to pursue, you can take some time to explore your options. Consider auditing a course or two to get a better idea about what you enjoy, if your first day back is still months away. The key is to do your due diligence before you return to campus, so you don’t feel like you’re spinning your wheels when you get there.

Carefully Considering Which College to Attend

In some cases, it makes sense to return to the college you originally attended. But it may also be worth checking out other universities to see if you can save money on tuition, or have a better college experience.

There are a few things to consider when making this decision. For example, each college has its own criteria as to what’s considered a required course versus an elective course. If you attend a different college, you may have to retake certain required courses.

Also, in some situations, it may make sense to find a less expensive college. Comparing colleges in your area can help make sure you get a good education without overspending. This is especially important if you had to leave college due to financial difficulties.

Easing Into It

Returning to college after a hiatus is different than returning to school after summer vacation. It may take some time to adjust to your new schedule and study requirements, and it’s possible that you’ve forgotten even some basic knowledge that you’ll need to brush up on.

If you have a desire to make up for lost time, you may consider trying to finish your degree or certificate program as quickly as possible. But as with any other activity, you may end up burning out if you spread yourself too thin.

Maybe instead of taking on a full workload your first semester back, you can take the minimum number of credits you need to be a full-time student, or maybe just a class or two. It can’t hurt to give yourself some time to get back into the swing of things, both mentally and emotionally.

There’s no right way to do this, so do regular check-ins with yourself and your loved ones to make sure you have enough capacity to accomplish your goals.

Building a Support System

Figuring how to get back into school after dropping out can be a draining process, especially if you’ve been away for a while. Maybe you have a family now, or you’re quitting your job to focus on school full time.

Regardless of your situation, it’s good to have support in your decision to further your education. Consider looking into your college’s mental health and career centers for additional resources and support.

You can speak with your partner, friends or family members about your decision to return to college. Help them understand your reasons and goals, especially if returning to college affects them.

The sooner you start building a support system, the easier it will likely be to make returning to college a smooth process.

Securing Financing

Even if you pick a relatively inexpensive university, a college education isn’t cheap. In an ideal scenario, you’ll be able to avoid student loans altogether. Scholarships, grants, and a full-time job can help you get through school without needing to borrow money.

But, if you do need some help to bridge the gap, you can start by filling out the Free Application for Federal Student Aid (FAFSAⓇ) form to see what you qualify for federal student aid (which could include grants, loans, and work-study). If you have a solid credit history and a good income, among other financial factors, private student loans might score you a lower interest rate.

Figuring Out What to Do With Your Existing Student Loans

If you still have student loans from your first stint in college, you don’t necessarily need to continue paying them when you return. The U.S. Department of Education and many private student lenders may allow you to defer your student loan payments while you’re in school at least half-time.

Keep in mind, though, that deferring your payments won’t stop the interest from accruing. If you don’t make interest-only payments while you’re enrolled, the unpaid interest will capitalize when you leave school and increase your overall debt.

If you’re generally unhappy with your existing student loans, another action to consider might be refinancing your student loans, especially if you qualify for a lower interest rate than on your original loans. You could also potentially extend your repayment term, lowering your monthly payment amount if you need to free up some near-term cash (but you’d pay more in interest overall).

Alternatively, if you’re in a more stable financial position, you might qualify to secure a shorter loan term, which could help pay off your loan more quickly and, therefore, make fewer interest payments.

But it’s important to note here that refinancing with a private lender would render you ineligible for programs and repayment plans extended to federal student loan holders like deferment, forbearance, and income-driven repayment. So you may wish to weigh your options carefully before considering refinancing.

Going back to college after dropping out isn’t easy, but it can be a stepping stone to get to where you want to be in life. As you consider returning to college, create a plan and allow yourself time to adjust to college life.

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.

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 Student Loan Refinance
If you are a federal student loan borrower, you should consider all of your repayment opportunities including the opportunity to refinance your student loan debt at a lower APR or to extend your term to achieve a lower monthly payment. Please note that once you refinance federal student loans you will no longer be eligible for current or future flexible payment options available to federal loan borrowers, including but not limited to income-based repayment plans or extended repayment plans.