SoFi

You’ve (more or less) survived having baby #1, which is already an accomplishment. Way to go mom or dad; what an incredible journey it is to be a parent and to raise a child.

Now, you’re toying with the idea of baby #2. But, you’re curious about how much it will cost you. And to make matters more confusing, you’ve got student loans that you’re paying off.

One study showed that 26% of people put off having children because of their student loan debt. This doesn’t have to be you. Having a second baby with student loans can be done, but it requires some planning.

To help you with that planning, we’re going to break it down. First, we’ll cover what to expect financially with a second child. Will it be as expensive as baby #1? What expenses can you prepare for?

Second, we’ll discuss tips on how to prepare for having a second baby, and give specific tips for parents who are having a baby with student loan debt. This will include tips on whether to pay them off, put them on hold, or to keep doing what you’re doing—for all of you parents who are thinking, “want a baby, but in debt!”

What You Can Expect Financially

The good thing about having a second child is that you’ve been through this before—you know what you’re doing. Just think of all that you’ve learned since you had your first baby.

That said, it can be hard to mentally prepare for adding a second baby into the mix. There will undoubtedly be moments where you will have to take it one day at a time, and you should give yourself that freedom and compassion to make mistakes and learn how to keep a kid alive all over again.

Still, there are plenty of ways to help prepare for baby #2 to ensure that the experience is as “under control” as can be. First, let’s talk a bit about what you might expect, financially, when you’re expecting a second.

Hand-me-downs Are Great

It is widely believed that a second baby is less expensive than the first because the second child can wear hand-me-down clothes, use baby #1’s cribs and changing table, and play with hand-me-down toys. And for the most part, this can be true, if parents are able to resist the urge to buy adorable new clothes and toys (although you’re probably going to need another car seat).

Hand-me-downs aren’t limited to clothes and toys, of course. There are other items that can be reused: Carriers, high chairs, bottles (although you’ll want to replace the teat), cribs, strollers, breast pumps, baby baths, baby monitors, children’s toilets, cloth nappies, bouncers, stationary activity centers, nursing pillows, changing pads, and so on. You can save a lot of scratch if you don’t need to buy these again.

(Tip for parents who haven’t had baby #1 yet: Avoid buying obviously gendered clothes. You may find gender-neutral clothes easier to re-use for baby #2.)

Hand-me-downs Have Limits

While it’s a great idea to reuse certain items, this won’t be possible with every item you’ll want or need for baby #2. For example, you may want to purchase new pacifiers, bottle nipples, and even car seats.

Car seats have an expiration date—check the bottom of the seat for a sticker that should list the manufacturer, model number, and manufacture date. It is generally accepted that the expiration date is six years after the manufacture date, but don’t use it if it’s been in a car accident previously—even a minor one.

Similarly, any crib, chair, or bouncer that has sustained significant wear and tear should be replaced; it’s better to be safe than sorry with any piece of baby equipment that could lead to injury if it in some way breaks or fails. This is especially true for any piece of equipment that “holds” a baby in some way.

Also, it can be hard to resist buying special items for each baby. Parents may be unlikely to use only hand-me-down clothing, toys, furniture, and other baby equipment, so be realistic and know that you’ll probably want to buy some stuff new. This goes for enrichment items, too. There could be classes and opportunities for your second child that may be independent (and potentially very different) than for your first child.

You Still Have to Buy Daily Use Items

You can’t reuse disposable diapers, wipe cloths, baby cream, formula, medicine, and other daily use items obviously. And as anyone who has purchased diapers before knows, these items can really add up (it could cost $550 dollars in the first year! ).

Childcare May or May Not Double in Cost

Depending on your specific child care situation, your childcare may or may not double in cost. Be sure to ask your childcare provider if they provide a sibling discount. If they don’t, you may want to look around for providers that do. It may not be a lot, but any discount will help when budgeting for baby #2.

With two children, parents may even want to rethink their current childcare set-up altogether. It may be more economical to consider an at-home nanny or an au pair, or even working with another family to establish a shared childcare situation.

Ideally, you wouldn’t have to double your childcare costs, but figuring out an alternate situation just may not be feasible for some people. It’s good to have some idea of what childcare will look like as you’re planning for your second child, as childcare is a major expense for many young families.

You May Need More Space

Having a second child can be economical in some ways, and less economical in others. For example, will you need more space to accommodate another body? Will you need to move to a larger home or buy a larger car? As families expand, it’s natural for a family’s space to expand as well.

Buying or renting a house with an additional room could be a significant added cost down the line. You might not need to move right away—babies are small—but think about what you might do once your baby grows into a child and later, into a teenager.

So, what’s the verdict? Is having a second kid significantly less expensive than the first? As you can tell, it all kind of depends. Families planning to have a second child will probably want to weigh the items above to see whether the cost is going to feel similar to baby #1, or whether it could be more or less expensive.

Planning Financially For Baby #2

Project Expenses

Before having a second baby, you might wish to sit down and project the expenses involved, from medical costs to childcare to diapers to an allowance for the unexpected. If you can, consider longer term expenses like extracurricular programs and college.

Spending projections not only help you to see whether you can afford a child at your current level of income and spending, but they can guide you in knowing where you can splurge and where you might need to cut back. Spending on children can quite literally be limitless, so think of this as an exercise in prioritization.

Prepare an Emergency Fund

Kids are small, adorable… walking liabilities. Things get broken and kids (and parents) can and do get sick. Also, “regular” life stuff still happens: The economy could turn, parents can get laid off from jobs, grandparents can get sick, and accidents could happen. With little ones in tow, it’s even more important to be prepared in the event of an emergency.

Make a Debt Plan

If you have multiple sources of debt, it’s a good idea to sit down and map out a plan as soon as possible. The first step is to list all sources of debt, including monthly payments and interest rates.

Knowing that your monthly expenses are about to increase, are there any sources of debt—and therefore, monthly payments—that you can eliminate altogether? For example, do you have any credit card balances that you can work hard to wipe out, or significantly lessen, in a few months? High-interest credit card debt is a money suck; doing what you can to reduce interest expenses can help free up money for other stuff.

Consider Options for Student Loans

For some parents, paying off every source of debt, such as their student loans, won’t be possible prior to having children. This is especially the case for families that are attempting to balance making debt payments with saving up an emergency fund. Each parent will have to decide just how much to prioritize both debt payoff and saving prior to and while raising a child.

When you’re pregnant, student loans can feel overwhelming. First, know that you’re not alone and that plenty of parents successfully manage student loan payments while raising a child. If you’ll maintain a student loan balance after your second baby comes into the world, it may be worth exploring options to make those student loans cheaper.

One way to do this is through student loan refinancing. When a borrower refinances their student loans, they’re paying off their old loans—either federal, private, or both—with a new loan. Ideally, this new loan is issued at a lower interest rate or with more favorable terms. But remember, refinancing means you’ll forfeit federal loan benefits such as income-based repayment plans, deferment, and forbearance.

With a new loan, for example, a borrower can do one of a few things: First, they can keep the loan’s term (length) the same, and possibly lower their monthly interest payment thanks to an improved credit score and/or financial situation. This tactic could help free up some cash to spend on other things. Second, a borrower could use this new leeway to speed up their loan term, and pay their loans off faster. They would likely save the most on interest with this strategy, but monthly payments would likely be higher.

Third, a borrower could potentially refinance to a lower rate and lengthen the loan’s term, which could lower the monthly payment significantly. This is an option that borrowers would be wise to consider only if they absolutely must, because you might end up paying even more in interest over the long run, even with a lower rate. (You can read more about all this here .)

When preparing financially for baby #2, there’s lots of planning to consider. But it will all be worth it to bring another bundle of joy into the world.

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.
Notice: SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers such as Income Based Repayment or Income Contingent Repayment or PAYE. SoFi always recommends that you consult a qualified financial advisor to discuss what is best for your unique situation.
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.
SOSL18133

Congratulations! Not only have you graduated college, but you’re also starting your first job. It’s an exciting time, and a great opportunity to use what you learned in college and apply it to life on your own: how to manage your time, how to meet and engage with different types of people, and, of course, all the knowledge you picked up in class. However, something else many students pick up in college is student loan debt.

According to Forbes , student loan debt is quickly catching up with mortgage debt.

In fact, student debt now ranks as the second-highest consumer debt category in the United States. CNBC reported that in 2018, the average student loan debt upon graduation was $37,172, which marks a $20,000 increase from 2005.

And it’s not just a few people graduating with debt—an estimated 70% of all college students will graduate owing money to somebody else.

In fact, Americans collectively hold $1.5 trillion in student debt. That’s a lot of money, especially when you take into account how little entry-level salaries can pay these days, even for college graduates.

According to the National Center for Education Statistics , the most popular undergraduate degree in America is a business-related degree. It’s undoubtedly a versatile academic path and business majors have the ability to work in a number of fields, but it’s a degree that comes with an average entry-level job salary of just $62,000 a year, according to PayScale .

Trying to balance an entry-level paycheck with rent, food, bills, and massive student loans can be overwhelming, but it’s not impossible. Delaying loan payments isn’t necessary; here’s how you can start paying off your student loans on just an entry-level salary.

Creating a Budget That Includes Paying off Debt

Upon graduation and starting your new job, it’s key to create a budget that’s comfortable for you. This can include setting aside money to grow both an emergency fund and a retirement fund.

To create a budget, gather all of your financial documents, including your post-tax income statements. You’ll also need to compile all your monthly bills, such as rent, utilities, food, entertainment expenses, insurance, the minimum requirement on your student loan repayments, and anything else you spend money on each month.

Tally up your expenses, and see how much you have left over after putting your after-tax income toward your bills. If you have money left over, consider stashing some away in an emergency fund and some in a retirement account—any amount can help. (Note: Retirement may seem far away, but if you start early you could see serious returns in your golden years.

As NerdWallet calculated, assuming a 7% interest rate, if you start saving $200 a month when you turn 25, you could have about $528,000 by the time you turn 65.)

Consider a Job Eligible for Public Service Loan Forgiveness

If you’re willing to work in the public sector and are open to relocating, several states have programs that may forgive part or all of your student loans. These programs are often geared toward students who recently completed grad school.

So a forgiveness program like this might be a fit for post-grads earning an entry-level salary. For example, if qualified health care professionals agree to work in areas of Alaska experiencing a provider shortage, the state may pay off up to $35,000 of those graduates’ loans.

California offers a similar deal for health care workers, offering repayment assistance up to $50,000 for a two-year commitment to working full time in high-need areas.

In North Dakota , qualified veterinarians can see up to $80,000 of their student loans repaid by the state if they are willing to live and work there for four years.

On the federal level, teachers may be able to take advantage of the Teacher Loan Forgiveness Program in all states. To qualify, the teacher must teach full time for five consecutive academic years in a low-income school or educational service agency.

Consider an Income-Based Repayment (IBR) Plan

The government is willing to help those who cannot afford their current federal student loan payments with programs including IBR, Income-Contingent Repayment (ICR), Pay As You Earn (PAYE), and Revised Pay As You Earn (REPAYE).

What all of these essentially do is rejigger your repayments to an amount you can afford each and every month. NerdWallet explains that the right IBR plan could reduce your payments to as little as 10% of your discretionary income each month. So, if you took out a loan after 2014 and are currently paying more than 10% of your discretionary income on a student loan, the IBR plan may be an excellent option for you.

Think about a Side Hustle

Sometimes, an entry-level salary isn’t enough to make a dent on your student loan balance. For those feeling particularly underwater with student loan repayments, getting a side hustle may be the answer, but not all side gigs are created equal. To help subsidize your entry-level job salary, look for a gig you’ll actually find fulfilling. This could involve using pre-existing skills, such as freelance photography, copy editing, or consulting.

It could also just be something you enjoy doing and is easy to get involved in, such as driving for a ride-sharing company or completing tasks for people via a site like TaskRabbit. Whatever it is, try to make it fun or useful for your future career goals so it feels less like work.

Look into Refinancing Your Student Loans

If you’re unhappy with your current student loan rates, you may find relief through student loan refinancing.

By refinancing, you could make your student loan debt more manageable and potentially become debt-free sooner. (Don’t forget that refinancing with a private lender means you’re no longer eligible for the federal programs we mentioned above—like PAYE, REPAYE, loan forgiveness, and income-based repayment plans.)

You can start by checking out SoFi’s student loan refinancing options and see if there’s a better interest rate out there for you. You might be able to lower your payments or shorten your term.

Notice: SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers such as Income Based Repayment or Income Contingent Repayment or PAYE. SoFi always recommends that you consult a qualified financial advisor to discuss what is best for your unique situation.
No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third party trademarks referenced herein are property of their respective owners.
The savings and experiences mentioned herein may not be representative of the experiences of all members. Savings are not guaranteed and will vary based on your unique situation and other factors.
SoFi does not render tax or legal advice. Individual circumstances are unique and we recommend that you consult with a qualified tax advisor for your specific needs.
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.
SLR18197

An increasing number of workers in the United States are telecommuting, ranging from those who are self-employed entrepreneurs to those employed by companies that permit, endorse, or even require telecommuting.

Telecommuting advantages are numerous. Remote workers don’t have a long commute to the office (no commute at all, actually), which allows them to get to work quickly and easily. When they arrive, they won’t get distracted by water cooler gossip, and they can work with the sniffles without infecting anyone else. Because they don’t need to drive to work, they use less gas, which helps the environment and is a money saver.

This arrangement can work well across generations. Millennials have been called the driving force behind telecommuting, but it’s an ideal arrangement for older workers who need more flexibility in their schedules but aren’t yet ready to retire.

Overall, remote workers can focus on the job at hand in a quiet space, set up in a way that allows them to be as productive as possible.

Simple Home Office Room Ideas

Here’s the beauty of telecommuting: home office organization can be arranged according to your needs and preferences. While your coworkers have to deal with the noisy plight of open-office floor plans, you have the flexibility to organize your home workspace in a way that suits you.

Start by choosing the best room in your home for your office. Options range from transforming a spare bedroom to using a section of the basement—some even construct a separate outbuilding. What about an attic remodel to create private office space that’s separate from the rest of your house? You can even add your own office bathroom.

After you’ve decided where you’ll put your office, determine the big-picture layout. You’ll want to include a desk, for sure. How about a couch? A physical board where you can post calendars and documents? Built-in cabinets? If you will regularly (or even occasionally) have clients come to your home office, where will they sit? What will make them feel comfortable?

Strategically determine how and where to place lighting. “Poor lighting,” notes an article in The Spruce , “can reduce your energy, dampen morale, produce eyestrain and headaches, and ultimately impair your ability to work effectively.” This isn’t an area where it makes sense to skimp, so ensure you’re getting enough light in a way that doesn’t produce glare. The article notes how natural light adds unique benefits. How would adding extra windows—or even a skylight—transform your home office?

Heating and cooling is crucial, because you need to be comfortable to work at your best. And again, if you will be seeing clients there, even sporadically, appropriate heating and cooling is doubly important.

Since you’re going to be spending a good portion of your day in your office, you’ll want to make it look attractive. Should you wallpaper? Or paint and add eye-catching borders? Install plush carpeting or hardwood flooring? Add hardwood cabinets that are functional and beautiful? What pictures would add just the right finishing touches?

Making Your Home Office Comfortable

Ergonomic design can help to prevent stress and strain, and this includes how and where you put your computer, printer, keyboard, mouse and any other equipment you’ll have around your office and on your desk. The Mayo Clinic offers ergonomic office room ideas, including ensuring there is clearance room for your knees beneath your desk. If the desk is too low and you can’t adjust its height, put sturdy blocks beneath the desk legs. Too high? Raise your chair. You can even pad any hard edges on your desk.

The Mayo Clinic also advises readers to keep your mouse within easy reach, on the same surface as your keyboard. Adjust mouse sensitivity so only a light touch is needed. Don’t forget to find the perfect desk chair. Make sure the chair you select offers the support you might need, feels comfortable, and comes with a decent warranty.

Cost of a New Home Office Setup

How much will your new office cost? It depends on a few factors, including the square footage of the space, whether you’ll need to add a new wall to create dedicated office space, whether your wiring is sufficient for the added lighting and equipment, whether your heating and cooling system in your home is sufficient, and so forth.

An article on HomeStratosphere.com offers some general guidance on what you might expect to pay. Here are a few of their 2018 pricing estimates:

•  New wall and accompanying insulation: $1,500
•  Single room rewiring cost: $1,400
•  Flooring:
      •  $2 to $5 per square foot for carpeting
      •  $3 to $18 per square foot for hardwood flooring
•  Skylight: $2,500
•  New fireplace: $,3000

Homeadvisor.com points out how the “success of modern home offices, especially in high-tech industries, depends on your electronic devices.” And, really, how many jobs today don’t rely to some degree on electronic devices? Very few.

In fact, one of the technologies that makes telecommuting possible is videoconferencing. So a fast and effective computer network is typically at the heart of today’s home offices. HomeAdvisor.com shares that the national average for installing this network in a home office is $370.

Installing new phone jacks and associated wiring costs, on average: $164. This site also points out the value of having built-in bookshelves to give your home office a touch of sophistication. For that, figure a potential cost of about $2,293 .

Understanding the Home Office Tax Write Off

First and foremost, you’ll want to talk to your accountant before taking advantage of any home office deductions. In advance of meeting with your accountant, you can find some information about home office write offs at MileIQ.com , including possible ways you might be eligible to deduct a portion of your mortgage payment or rent for some renovations, along with other home-related expenses.

MileIQ explains that your home office needs to be a dedicated workspace—separate from your bedroom and living space—and used exclusively for business purposes to potentially qualify for a home office tax write off.

If you’re interested in deducting home office expenses, it’s important that you keep detailed records, including how much mortgage (or rent) you pay for your home office. (If you do rent, you may want to have a copy of your lease handy when you go see your accountant.)

Also, it’s probably a good idea to keep proof of any property tax amounts you’ve paid, along with your utility payment costs, relevant insurance payments, and any other expenses that may play a role in your home office deductions.

And you can always go to the source and see what the IRS has to say about home office deductions for the current tax year.

Funding Your Home Office Setup

If you don’t have savings to invest in a setup right away, a personal loan can be a great way to fund home renovations for an office space. If one qualifies, personal loans can be used to renovate and create a new office in your home.

If you qualify for a low interest personal loan, it could be a much more attractive option than using high-interest credit cards to fund your home office setup (or continuing to pay bills and manage your finances from your couch).

Plus, when you take out a personal loan, your home is not used as collateral—unlike a home equity line of credit. Because a personal loan is not a lien on your home, you also can get the funds in a lump sum and pay your contractors as various aspects of your home renovation are completed.

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 does not render tax or legal advice. Individual circumstances are unique and we recommend that you consult with a qualified tax advisor for your specific needs.
PL18159

If you’re an attorney and considering or planning on moving from the public to private sector, you’ve surely got a head full of questions about what the transition means for your career, your personal life, and your financial life.

There are plenty of good reasons for moving from nonprofit to private sector. One of the most common is to earn more money and progress a career in a way that is not possible at a public sector job. Even with better salary prospects and upward mobility, such a move can feel incredibly daunting. Any lawyer who used to work in the public sector may face challenges during this transition.

If you’re making the switch, it can be helpful to understand some key differences between the two work environments to make a successful transition. This can include such factors as the nature of the work and workplaces and what’s expected of employees. Here, we’ll discuss a few new ways to view the roles so that you’re able to maximize your success both before and after your transition, along with tips on how to find success in your new role.

Differences in Working Public Sector vs. Private Practice

Understanding how private practices operate in comparison to a job in the public sector will help you know how to be successful within each system. Navigating a job in both sectors requires understanding the underlying organization and motivation.

A lawyer in the public sector, for example, working as a public defender or for a public interest organization, is generally tasked with their own cases very early on in their career. Working in the public sector can give lawyers some incredible experience when they’re in the beginning stages of their career.

That said, you’d likely only want to move to a private practice with a role as counsel or even partner (at a boutique firm, for example); otherwise, you may be given work that can feel more administrative.

The difference between for-profit and nonprofit work lies greatly in the motivation of the two. At a private practice, the primary goal is to generate profits via clients, who are at the nexus of any private business. For a person working at a private practice, that could mean spending significantly more time doing such tasks as networking and the acquisition of new business.

Bringing in new money is often a core responsibility for younger lawyers without established clientele at a private practice. This is generally not the case in the public sector, where there is no shortage of work—and, as it often goes, a lack of resources to match.

In moving from nonprofit to private sector, it would behoove you to brush up on your networking skills and beef up your LinkedIn profile. You may be asked to wine and dine potential new clients, and your long-term success will at least somewhat depend on your ability to leverage the networks you’ve created over the course of your life and career.

Networking isn’t just important externally, though, it’s also important internally. Whether you’ll be given desirable work, be passed along clients from other (retiring) lawyers or be considered for promotions will be dependent not only on the quality of your work, but also your involvement in the firm on both a professional and personal level.

Be sure to join your local bar association and an internal group or two, such as leadership panel, a women’s group, or take a side (read: non-billable) role as an unofficial event planner. At a private practice, the extra effort will be noted and rewarded.

Benefits of Private Practice Over Public Sector

It’s not exactly a secret that many people will move from the public sector to the private sector to pursue an opportunity to earn more money. Oftentimes, career growth can feel stagnated in a public sector job as there aren’t always defined ladders to climb like there are within a private practice. Career progression means gaining tenure, as opposed to making big jumps up through job titles and pay scales.

Within the profession of law, there is a significant difference between the salaries of those working in the public and private sectors. According to the National Association of Legal Professionals, the starting salary for public defenders is $58,300 and is $48,000 for those working in civil legal services.

Comparatively, some private law firms in big cities such as New York and Los Angeles are paying their entry-level attorneys $180,000, which as the NAPL observes “is beyond what even the most experienced attorneys can reasonably expect at a public interest organization.”

Handling Student Loans in the Public Sector vs. Private Practice

There are other financial considerations when switching from the public to the private sector, especially for those in the process of paying back federal student loans.

Many people take jobs in the public sector because they’ll qualify for student loan forgiveness after 120 qualifying on-time payments (usually about 10 years) through the Public Service Loan Forgiveness program. A switch to the private sector before making 120 qualifying payments could mean a delay in progress on payments you’ve made towards the program.

Conversely, because moving to a private sector job usually means a higher salary, especially in the legal field, having a higher consistent salary provides its own unique benefits aside from the obvious—more money to spend and enjoy. For one, making student loan payments and paying out of pocket for benefits like health care take a smaller representative proportion of take-home pay, making the bills feel less burdensome overall.

Additionally, a higher salary means that you may qualify to refinance your student loans to a lower rate of interest, saving you money over the life of your student loans. (Of course, a higher salary is just one qualifying factor of refinancing—it will also help if you have a good credit score and credit history.)

Refinancing student loans is the process of swapping out any old loans—private or federal—for a new loan, ideally with a better rate of interest. You can refinance through a bank or other financial services provider.

It could be the perfect time to refinance if you’re making a switch to a position with a higher salary in the private sector, as salary is one important factor when being considered for student loan refinancing.

Notice: SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers such as Income Based Repayment or Income Contingent Repayment or PAYE. SoFi always recommends that you consult a qualified financial advisor to discuss what is best for your unique situation.
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.
SLR18174

Getting married soon? Congratulations! Just be warned—there comes a moment in many weddings when half the guests suddenly slip away to watch a big game (just follow the cheers to find your wedding party).

Football especially is a pretty good analogy for a wedding – after all, in both football and marriage, you’re either tackling things together or you’re being tackled by them. Money is a common example of this (in marriage, not football), as the growing number of couples dealing with student loan debt can attest.

Whether the loans belong to you, your spouse or all of the above, once you get married it doesn’t really matter anymore. Paying off debt is now something you can tackle together. It may be tough, but with open communication and planning you can work as a team to get that student loan linebacker off your, er, back.

So what’s the best strategy for taking down student loans without letting them clobber your marriage? Here are five tips for proactively – and collaboratively – running a play that could help lead to the big pay-off: a debt-free happily ever after.

Tip #1: Create Your Big Financial Picture

Preparing to take on a big financial goal usually requires some conversation and preparation upfront. Before making any decisions, sit down and talk about your short- and long-term financial objectives, and make sure you’re both on the same page (or as close to it as possible). This can be an overwhelming topic, so see if you can break it down into chunks.

Have you established a household budget? How do student loans (and paying them off) fit into your long-term and short-term goals? Should you start aggressively paying off debt, or might it be better for you to ramp up over time? What other factors (e.g., buying a home, changing careers, having children, etc.) could affect your decisions?

Not only can this exercise help give you more clarity to create an action plan, it can also actually be kind of fun – after all, planning a life together is part of the reason you got married in the first place. The key is to listen to each other and remember that you’re both on the same team.

Tip #2: Take Advantage of Technology

Once you’re clear on the big picture, it’s time to get into the weeds. Many people have more than one student loan, often with multiple lenders, so a good place to start can be to gather all of your loan info in one place. You can use an online student loan management tool to collect this information, compare student loan repayment options, and even analyze prepayment strategies.

After crunching the numbers, your debt payoff strategy may include putting extra money toward your loans each month, which means creating and sticking to a budget that supports that goal. Platforms like Mint and Learnvest can help you aggregate household accounts and track spending.

Note: tracking your spending so precisely may feel like ripping off a bandage at first, but over time, this kind of discipline can help you better see where your money goes and help you make conscious choices about your spending. And once you have your budget in place, these apps can be set up to alert you both when spending is getting off track.

Tip #3: Define The Who, What, When

Whether your finances are separate or combined, you’ll probably want to come to an agreement on how to collectively pay all of your financial obligations. Many couples address this based on each person’s share of the total household income.

For example, if one person makes 40% and the other makes 60%, the former might pay 40% of the shared bills and the latter might pay 60%. Others find it simpler and more cohesive to have one household checking account and pay all bills from there.

However you decide to split things up, it could make things much easier to agree upon a plan that accounts for everything, because missed payments can potentially impact your credit (and/or your spouse’s), making your future financial objectives that much tougher to achieve.

Tip #4: Look For Opportunities to Optimize

Okay, so now you’ve established a plan and a budget, and you know who’s on point for each bill. You’re on the path to getting student loan debt off your plate. Is there anything else you can do to speed up the process?

Short of winning the lottery, the most common ways to accelerate student loan payoff are prepayment (meaning, paying more than the minimum) or lowering the interest rate, the latter of which is most commonly accomplished through refinancing.

If you qualify to refinance your student loans, you have a few possibilities: you can lower your monthly payments (by choosing a longer term) or lower your interest rate (which could also lower your monthly payments) – or you could shorten the payment term, and that means you could save money on interest over the life of the loan – money that could come in handy for those other financial goals you’ve both agreed to pursue.

Tip #5: Be on the Same Team

Living with debt is stressful for any couple, but being part of a relationship has its advantages, too. There’s a reason that weight loss experts often recommend finding a “buddy” to help cheer you on and keep you honest in your diet and exercise journey – and the same applies for achieving a big goal like paying off student loan debt.

Keep it positive and keep the lines of communication open, and you may even find that the journey to being debt-free makes your marriage even stronger – so you can take the hits that come your way as easily as your favorite team does.

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.
Notice: SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers such as Income Based Repayment or Income Contingent Repayment or PAYE. SoFi always recommends that you consult a qualified financial advisor to discuss what is best for your unique situation.

SLR15102