Jan
29
2025
What Is Cost Basis?
What is cost basis? Cost basis is the purchase price or original value of an asset or investment. It’s used to calculate capital gains and losses for tax filings.
Read more
Jan
29
2025
DeVry University Student Loan Forgiveness
Students who attended DeVry University between 2008 and 2015 may be entitled to federal and private student loan forgiveness. During that time period, the school made deceptive claims, according to the Federal Trade Commission (FTC), which brought a lawsuit against the school.
Read on to learn about the options regarding DeVry University student loan forgiveness, including who’s eligible and how to apply for loan cancellation.
Key Points
• Students who enrolled in DeVry University between January 1, 2008, and October 1, 2015, may be eligible for federal student loan forgiveness because of misleading claims the university was found to have made.
• Those eligible must have paid at least $5,000 via cash, loans, or military benefits and completed at least one class credit, among other requirements.
• To apply, complete a Borrower Defense Loan Discharge application at StudentAid.gov.
• Decisions are currently not being made on applications due to a court injunction on borrower defense regulations.
• Filing the application is still recommended despite the delay.
Background on DeVry University Settlement
DeVry University, a for-profit college with locations in 11 states, offers online and in-person courses in various areas of business, health care and technology, with undergraduate and graduate degree programs and certificate programs for students.
Between 2008 and 2015, DeVry advertised a 90% employment success rate and 15% higher income levels for students after graduation. The FTC alleged that those claims were deceptive, and in January 2016, the agency brought a lawsuit against DeVry for $100 million dollars.
In December of that year, DeVry settled with the FTC, agreeing to a $100 million settlement. Under the settlement terms, DeVry was ordered to pay qualifying students who attended their schools between September 2008 and September 2015 and were harmed by the deceptive ads.
As part of the DeVry University student loan forgiveness, DeVry agreed to pay $49.4 million to the FTC to be distributed to students for partial refunds, and provide $50.6 million in debt relief for those who took out private student loans and any other outstanding debts related to attending DeVry.
Types of Loan Forgiveness Available
As part of the FTC settlement terms, DeVry agreed to forgive student loan debt that included the full balance owed on all private student loans ($30.35 million) and any other student debts such as tuition, books, and lab fees ($20.25 million).
In June 2017, The FTC began mailing refund checks to the eligible DeVry students. However, in May 2024, the FTC reported there were 5,942 checks that had not been cashed. As a result, the FTC announced it was resending those payments, and instructed students to cash their check within 90 days.
Students who took out federal student loans to attend DeVry were not part of the FTC settlement. In February 2022, the U.S. Department of Education (DOE) announced it would forgive $71.7 million in federal student loan debt through borrower defense to repayment regulation, holding DeVry liable for $24 million.
That means if you took out federal loans to attend DeVry, you could apply for federal loan forgiveness.
However, DeVry challenged the DOE’s decision. In 2023, a court issued an injunction delaying the effective date of the DOE’s borrower defense regulation until there is a final judgment on it. As of mid-January 2025, the injunction is still in place. On January 10, the Supreme Court agreed to review the case, though no date for the review has been announced. In the meantime, borrowers may still apply online for borrower defense relief.
On January 16, 2025, the DOE announced they had approved forgiveness through borrower repayment to defense for 4,100 DeVry borrowers as part of the Biden administration’s final student loan debt relief approvals, though nothing can move forward while the injunction is in place.
Recommended: Who Pays for Student Loan Forgiveness?
Eligibility Criteria for Loan Forgiveness
Students who are eligible to receive private or federal student loan forgiveness related to attending DeVry need to fulfill all of the following criteria:
• Enrollment in a bachelor’s or associate degree program at DeVry University between January 1, 2008 and October 1, 2015
• Paid at least $5,000 in cash, loans, or military benefits
• Did not get debt or loan forgiveness as part of this settlement
• Completed at least one class credit
How to Apply for DeVry Loan Forgiveness
If you meet the criteria above, you’ll need to complete a Borrower Defense Loan Discharge application to start the process of having your DeVry federal student loans forgiven. As noted, while the injunction is in place, individuals can continue to file applications.
Under the law, to be eligible for borrower defense, your school must have engaged in misleading activities or other misconduct directly related to the loan or to the educational services for which the loan was given. If you attended DeVry during the specified time period and took out a federal student loan, you may qualify for a student loan discharge.
When applying for borrower defense repayment, be sure to have the following information:
• Verified account username and password (FSA ID)
• School name(s) and program of study
• Your enrollment dates
• Documentation to support why you believe you qualify for borrower defense and to demonstrate the harm you suffered
Alternative Debt Relief Options
Besides DeVry student loan forgiveness, there are some other options for getting out of student loan debt and managing student loan payments that you can explore.
Income-Driven Repayment Plans
If you have federal student loans, you may want to consider income-driven repayment (IDR). These plans base your federal student loan payments on your discretionary income and family size. This typically results in a lower monthly loan payment. There are several different IDR plans to choose from.
Under an IDR plan, you could qualify for forgiveness of your remaining debt after 20 or 25 years.
Public Student Loan Forgiveness
If you work full-time in public service for a qualifying employer like the government or a nonprofit organization, you may be eligible for Public Service Loan Forgiveness (PSLF). This program forgives the remaining balance on most Federal Direct loans.
Qualifying borrowers can get PSLF after making the equivalent of 120 qualifying monthly payments under an IDR plan or the Standard Repayment Plan.
State Loan Repayment Programs
Some states help pay off student loans through state loan repayment assistance programs (LRAPs). These programs can assist borrowers with both private and federal student loans, depending on the program. Check with your state’s department of education to see what opportunities are available.
Student Loan Refinancing
When you refinance student loans, you replace your old loans with a new private loan, ideally one that has a lower interest rate and more favorable terms, which could lower your monthly payments.
Borrowers interested in refinancing student loans to save money should compare lenders and offers to choose the best one. But be aware that refinancing federal loans makes them ineligible for federal benefits like income-driven repayment.
A student loan refinancing calculator can help you decide whether refinancing makes sense for your situation.
Impact of Forgiveness on Credit and Taxes
Student loan forgiveness may affect your credit in surprising ways. For instance, having DeVry student loan debt forgiven could cause your credit score to dip temporarily.
One reason for this is that if you wipe out student loan debt, you’re no longer building a payment history for it. And a history of repayment makes up 35% of your credit score, according to FICO, the credit scoring company.
In addition, eliminating student loan debt can impact the mix of credit you have. Lenders like to see a diverse mix of credit because it shows you can responsibly manage different types of credit accounts.
On the other hand, not having a monthly student loan payment improves your debt-to-income ratio, which creditors view as a positive. Plus, you can use the extra money for other expenses or to build up your savings.
Forgiveness may also have some tax implications. The IRS generally requires that you report forgiven or canceled debt as income. However, thanks to a provision in the American Rescue Plan, if your federal or private student loans are dismissed between December 31, 2020 and January 1, 2026, those forgiven student loans won’t be taxed by the federal government.
You may need to pay state taxes on forgiven student loans, however, so it’s a good idea to consult a tax professional or contact your state’s tax department to find out.
The Takeaway
If you attended DeVry University between September 2008 and September 2015, you may be eligible for federal student loan forgiveness through “borrower defense to repayment.” You can start the process of getting your DeVry student loan forgiven by applying for a borrower defense loan discharge at StudentAid.gov.
Borrowers who are not eligible for DeVry forgiveness can explore alternative debt relief options such as income-driven repayment, state loan repayment assistance programs, Public Service Loan Forgiveness, and student loan refinancing.
Looking to lower your monthly student loan payment? Refinancing may be one way to do it — by extending your loan term, getting a lower interest rate than what you currently have, or both. (Please note that refinancing federal loans makes them ineligible for federal forgiveness and protections. Also, lengthening your loan term may mean paying more in interest over the life of the loan.) SoFi student loan refinancing offers flexible terms that fit your budget.
FAQ
Who is eligible for DeVry University loan forgiveness?
DeVry University students who were enrolled in an undergraduate (bachelor’s or associate degree) program between January 1, 2008 and October 1, 2015, paid at least $5,000 with cash, loans or military benefits to attend the school, completed at least one class credit, and didn’t receive debt or loan forgiveness as part of DeVry’s settlement with the FTC.
What types of loans qualify for forgiveness?
Through the federal government, borrower defense discharges apply to the following federal student loans: Direct Loans or those that can be consolidated into a Federal Direct Consolidation Loan. These discharges don’t apply to private student loans or loans that can’t be consolidated into a Federal Direct Consolidation Loan.
How long does the forgiveness process take?
Unfortunately, it might take a while. Because of a 2023 federal court injunction, no decisions may be made on applications until there is a final judgment on borrower defense regulations. The Supreme Court has agreed to review the case, though no date for the review has been given.
Will I owe taxes on forgiven DeVry loans?
Under the American Rescue Plan, federal or private student loans dismissed between December 31, 2020 and January 1, 2026, are not subject to federal taxes. However, you may have to pay state taxes on the forgiven loans, depending on the rules in your state. Consult a qualified tax professional for more information.
What if I’ve already paid off my DeVry loans?
If you have already paid off your DeVry loans, forgiveness through borrower defense is not an option. According to the Office of Federal Student Aid, in order to be eligible to apply for borrower defense, you must have at least one outstanding federal student loan associated with the school.
Photo credit: iStock/South_agency
SoFi Student Loan Refinance
Terms and conditions apply. SoFi Refinance Student Loans are private loans. When you refinance federal loans with a SoFi loan, YOU FOREFEIT YOUR EILIGIBILITY FOR ALL FEDERAL LOAN BENEFITS, including all flexible federal repayment and forgiveness options that are or may become available to federal student loan borrowers including, but not limited to: Public Service Loan Forgiveness (PSLF), Income-Based Repayment, Income-Contingent Repayment, extended repayment plans, PAYE or SAVE. Lowest rates reserved for the most creditworthy borrowers. Learn more at SoFi.com/eligibility. SoFi Refinance Student Loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).
SoFi Private Student Loans
Please borrow responsibly. SoFi Private Student loans are not a substitute for federal loans, grants, and work-study programs. We encourage you to evaluate all your federal student aid options before you consider any private loans, including ours. Read our FAQs.
Terms and Conditions Apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. SoFi Private Student loans are subject to program terms and restrictions, such as completion of a loan application and self-certification form, verification of application information, the student's at least half-time enrollment in a degree program at a SoFi-participating school, and, if applicable, a co-signer. In addition, borrowers must be U.S. citizens or other eligible status, be residing in the U.S., and must meet SoFi’s underwriting requirements, including verification of sufficient income to support your ability to repay. Minimum loan amount is $1,000. See SoFi.com/eligibility for more information. Lowest rates reserved for the most creditworthy borrowers. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change. This information is current as of 04/24/2024 and is subject to change. SoFi Private Student loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891. (www.nmlsconsumeraccess.org).
SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
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 .
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.
This article is not intended to be legal advice. Please consult an attorney for advice.
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.
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.
SOSLR-Q424-021
Read moreJan
29
2025
Investing in Transportation Stocks and ETFs
Do you want to invest in transportation stocks or a transportation ETF? Here’s everything you need to know to get started investing in transportation.
Read moreJan
29
2025
What Is a Home Equity Loan and How Does It Work?
A home equity loan is a way to finance a large purchase, complete home renovations, or consolidate high-interest debt by tapping into the equity of your home. Your home secures the loan, and funds are disbursed all at once.
With your home as collateral, lenders have reason to believe you’ll make on-time, full payments, so they offer a lower interest rate than they would on most unsecured loans. Failing to make the monthly payments could result in foreclosure, however.
Yet for borrowers who are confident they can make the payments, a home equity loan is one of the most affordable financing options on the market. Keep reading to learn more about home equity loans and whether or not one makes sense for you.
Key Points
• A home equity loan is a fixed-rate loan secured by a home, providing a lump sum of money.
• Home equity is calculated by subtracting the mortgage balance from the home’s current market value.
• Requirements for a home equity loan include sufficient equity, good income, credit history, and a low debt-to-income ratio.
• Advantages include low interest rates and large borrowing amounts; the chief drawback is the potential for foreclosure.
• A home equity line of credit (HELOC) is an alternative to a home equity loan and is also secured by a home.
What Is a Home Equity Loan?
A home equity loan is typically a fixed-rate loan secured by a home in exchange for a lower interest rate.
Repayment terms are typically between five and 30 years.
First-time homebuyers can
prequalify for a SoFi mortgage loan,
with as little as 3% down.
Questions? Call (888)-541-0398.
How Do Home Equity Loans Work?
First, you’ll need to have sufficient home equity, which is the difference between the market value of your home and what you owe on your mortgage. You may have built home equity by paying down your mortgage and by seeing your home appreciate.
You’ll go through an application process, and the lender will likely order a home appraisal to ensure that there’s enough value there to lend against.
You’ll have a lot more paperwork than some other loans and will sign mortgage lien documents that give the lender the right to start foreclosure proceedings should you fail to make payments.
After closing on the loan, you’ll receive all funds upfront. Repayment starts shortly after.
Homebuyers also occasionally use a home equity loan to avoid PMI on a new home. An 80/10/10 piggyback mortgage, for example, consists of a conventional home loan, a second mortgage like a home equity loan, and a 10% down payment. Such buyers are able to put less than 20% down and avoid paying private mortgage insurance.
Types of Home Equity Loans
When you’re looking to use the equity in your home, there are two types of home equity loans to choose from — a home equity loan and a home equity line of credit (HELOC) — and a cash-out refinance.
• Home equity loan: The loan is disbursed in one lump sum and paid back over time. The interest rate is typically fixed.
• HELOC: With a home equity line of credit, money can be taken out as you need it, up to the limit you were approved for. HELOCs have a draw period, often 10 years, when you might pay only interest on money borrowed, followed by a repayment period, when principal and interest payments begin. The interest rate is usually variable.
• Cash-out refinance: A third way of freeing up equity is through cash-out refinancing. This means taking out a new mortgage for more than you owe on your current mortgage. You use the loan to pay off your current mortgage and you are left with a lump sum to spend as you please.
Home Equity Loan Requirements
Home equity loans are contingent on:
• The amount of home equity a homeowner has
• Income
• Credit history
• Debt-to-income ratio
How to Calculate Your Home Equity
Home equity requires basic math: Subtract the amount you owe from the market value of your home. If your home is worth $500,000 and you owe $350,000, you have $150,000 in equity.
You usually will not get a loan for the total amount of home equity you have, however. When it comes to how much home equity you can tap, many lenders allow a maximum of 85% or 90%, although some allow less, and some, more.
Another way of saying that: Your loan-to-value ratio shouldn’t exceed 90% in many cases.
If you’re taking out a second mortgage like a home equity loan or HELOC, your first mortgage and the equity loan compared with your home value is what is called the combined loan-to-value (CLTV) ratio.
Many lenders will require a CLTV of 85% or less to obtain a home equity loan and a CLT of 90% for a HELOC, although some will allow you to borrow 100% of your home’s value.
Example of a Home Equity Loan Payment
One thing that attracts a lot of borrowers to a home equity loan is the long repayment period, which is also why most homebuyers choose a mortgage term of 30 years.
A longer repayment period can make your monthly payment more manageable. For example, if you were to get a $75,000 home equity loan with a repayment period of 20 years, your monthly payment at 8% interest would be $627. If you had to repay that same amount in five years, your payment would be $1,521.
Here’s a chart comparing examples of monthly payments with different terms:
| Loan amount | Interest rate | Term | Monthly Payment |
|---|---|---|---|
| $75,000 | 8% | 5 years | $1,521 |
| $75,000 | 8% | 10 years | $910 |
| $75,000 | 8% | 20 years | $627 |
A lot of variables will affect the rate you pay, such as your credit score and how much home equity you have. Also, keep in mind that the longer the loan term, the more interest you’ll pay, despite the more affordable monthly payment.
Difference Between Home Equity Loans and HELOCs
Home equity loans and HELOCs both use your home as collateral on a loan. How they differ is in how you receive and repay the money.
| Home equity loan | HELOC |
|---|---|
| Lump sum loan | Money as you need it |
| Start repaying immediately | Pay only on the amount you borrowed |
| Usually a fixed interest rate | Often a variable interest rate |
| Installment loan | Credit line |
Advantages and Drawbacks of Home Equity Loans
Home equity loans have some advantages, but be sure to consider the drawbacks as well.
| Advantages | Drawbacks |
|---|---|
| Large amounts of money can be borrowed | Home is collateral |
| Low interest rate | Repayment begins immediately |
| Flexible use | Loan amount is set, so if you need more money, you will need to apply for another loan |
Home Equity Loan Quiz
What Can You Use a Home Equity Loan For?
The great thing about a home equity loan is the wide range of things you can use it for. Once the funds flow to your bank account, they’re yours to use for almost any purpose. Some common uses of home equity are:
• Home renovations
• Education expenses
• Medical expenses
• Consolidation of high-interest revolving debt
• Recreational vehicles
• Vacations
• Weddings
• Purchase of an investment property
• Building an ADU
• Money in retirement
While you can pay for college tuition with a home equity loan, it might be better to find a student loan for that expense. And vacation expenses and wedding costs might be better addressed by saving and planning than by dipping into home equity.
Why? Because other loan types don’t put your home at risk if you’re unable to pay.
How to Apply for a Home Equity Loan
Step One: Assess your situation. Do you have enough equity to make this happen? How much do you need? Would you prefer a home equity loan or a HELOC? Do you have at least a “good” FICO® score?
If you have an idea of what type of loan you want, how much you want to borrow, and how much equity is available to tap, you’ll be able to shop for what you need.
Step Two: Ask multiple lenders for loan estimates. Getting loan estimates from different lenders can help you find the best terms and rates. Compare the APR of one 20-year loan to another, and so on. The APR will include the loan’s interest rate and any points and fees. Some lenders offer to waive or reduce closing costs on the loan, but the interest rate on these loans may be higher as a result.
All hard credit inquiries made within 14 to 45 days will be counted as one.
Step Three: Find a fitting loan and apply. Submit information about your income, current mortgage, insurance, and other details the lender requests. The lender may require an appraisal of your home.
Step Four: Close on your loan. If everything checks out — including your income, credit history on your credit reports, and home value — you may reach the closing table for your home equity loan. The Federal Trade Commission recommends reading the closing documents carefully and negotiating changes or walking away if something doesn’t look as it should.
Step Five: Receive your funds. Funds are disbursed around three business days after closing on the loan. You’ll receive the amount you were approved for.
Step Six: Begin repaying your loan. On a home equity loan when the funds are disbursed upfront and your interest rate is locked, the first payment will be due around 30 days after you close on the loan.
Is It a Good Idea to Take Out a Home Equity Loan?
Taking out a home equity loan is one of the least expensive ways to finance a large purchase. Because your home is used as collateral, lending institutions are willing to offer a relatively low interest rate on the borrowed amount.
For people who want borrowing flexibility and aren’t sure of the exact amount they will need, a HELOC might be a better option.
While a lower interest rate is great, you should always keep in mind that your home is at risk with a home equity loan. If you’re confident you can make the payments and have a need for a large sum, this may be a financing solution you’ll want to look into.
The Takeaway
With a relatively low interest rate and a repayment period that can be long, a home equity loan is an attractive way to finance a large purchase or consolidate high-interest debt. A home equity line of credit is a good alternative, and more flexible.
SoFi now partners with Spring EQ to offer flexible HELOCs. Our HELOC options allow you to access up to 90% of your home’s value, or $500,000, at competitively lower rates. And the application process is quick and convenient.
FAQ
How much can you borrow with a home equity loan?
Most lenders limit the amount to 85% of your home equity, though that is not always the case. The loan amount also depends on your income, debt, and creditworthiness.
Can you have multiple home equity loans at the same time?
Yes, but you’ll want to consider all your options before getting another loan that puts your home at risk.
Are home equity loans tax deductible?
Interest on home equity loans is tax deductible if the money is used to buy, build, or substantially improve the home that secures the loan. You’ll want to work with a tax advisor to make sure you adhere to the rules around this deduction.
Are there costs to getting a home equity loan?
Closing costs for a home equity loan are typically 2% to 5%, but some lenders don’t charge any closing costs.
How do you pay back a home equity loan?
Repayment begins shortly after the funds are disbursed, and monthly payments are made until the loan term ends.
Photo credit: iStock/VioletaStoimenova
SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.
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 requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
²SoFi Bank, N.A. NMLS #696891 (Member FDIC), offers loans directly or we may assist you in obtaining a loan from SpringEQ, a state licensed lender, NMLS #1464945.
All loan terms, fees, and rates may vary based upon your individual financial and personal circumstances and state.
You should consider and discuss with your loan officer whether a Cash Out Refinance, Home Equity Loan or a Home Equity Line of Credit is appropriate. Please note that the SoFi member discount does not apply to Home Equity Loans or Lines of Credit not originated by SoFi Bank. Terms and conditions will apply. Before you apply, please note that not all products are offered in all states, and all loans are subject to eligibility restrictions and limitations, including requirements related to loan applicant’s credit, income, property, and a minimum loan amount. Lowest rates are reserved for the most creditworthy borrowers. Products, rates, benefits, terms, and conditions are subject to change without notice. Learn more at SoFi.com/eligibility-criteria. Information current as of 06/27/24.
In the event SoFi serves as broker to Spring EQ for your loan, SoFi will be paid a fee.
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.
Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
SOHL-Q125-004
Read moreJan
29
2025
What Is a Good Salary to Live On in Florida for 2025?
A decent salary — one that allows for necessities — might start around $46,645 for a single, childless person in Florida and $63,567 for a couple. Add one child to the equation for two working people, and the figure can rise to $75,959, based on the MIT Living Wage Calculator.
However, these figures may represent the lower end of a “good salary,” as they don’t allow much room for “fun” spending or savings. You might need to earn more to qualify as having a good salary. As a point of comparison, the median income for a one-person household in Florida was $62,973.
Of course, your actual cost of living will depend on the city, size of your household, and your spending needs and habits. Read on for a breakdown of what it may take to say you earn a good annual salary in Florida.
Table of Contents
Key Points
• A good salary in Florida depends on factors such as location, industry, and individual needs.
• The cost of living in Florida is lower compared to some other states.
• The median household income in Florida is approximately $62,973.
• A good salary in Florida can range from $50,000 to $100,000 or more, depending on various factors.
• It’s important to consider expenses, lifestyle, and financial goals when determining what constitutes a good salary in Florida.
Is It Expensive to Live in Florida?
Florida is the second fastest-growing state in the U.S. in 2024 after Texas, the Census Bureau says, and it’s easy to see the draw.
It’s a state with no income tax, moderate property taxes, lots of sunshine, and plenty to do and explore. Corporate and sales taxes are lower than those of most other states.
Despite those perks, it isn’t the cheapest state to live in. Florida had the 34th lowest cost of living in the U.S. in the 3rd quarter of 2024, according to data gathered by the Missouri Economic Research Information Center (MERIC). That means 28 states had a lower cost of living, with Oklahoma the cheapest place to live.
Some cities are as sizzling as the summers. If you’re Miami-bound and plan to rent or buy, for example, that’s when you’ll especially need to check your finances. Miami-Dade is the second-least affordable place in the U.S. to live, according to the April 2024 RealtyHop Housing Affordability Index.
💡 Quick Tip: Online tools make tracking your spending a breeze: You can easily set up budgets, then get instant updates on your progress, spot upcoming bills, analyze your spending habits, and more.
What Is the Average Annual Salary in Florida?
Whether a salary can be considered “good” or not in Florida can depend on several factors, including where you choose to live. Proximity to a big city or beach can draw residents who are willing and able to pay more. So can living in an area known for high-end amenities (like shopping, nightlife, and cultural attractions) and luxurious homes.
The median household income among Floridians is $62,973, according to the latest data from the U.S. Census. That means, of course, that half of the state’s households bring in more than that, and half bring in less.
That figure compares with the median household income in upscale Collier County (which includes Naples and Marco Island) of $88,173. In Monroe County (Key West), it was $88,870. In Palm Beach County (Palm Beach, Wellington, Boca Raton), it was $84,921. And in St. Johns County (St. Augustine, Ponte Vedra), it was $106,281.
On the other hand, the median household incomes in landlocked and lesser-known Glades and Hendry counties in the south, and Hamilton County on the Georgia border, were $38,905, $49,259, and $47,668, respectively.
So what is a good salary in Florida, if you’re talking about one that goes beyond basic needs and allows for “wants” and savings?
A registered nurse pulls in an average base salary of nearly $75,000, according to Indeed. That’s a good income for a single person with no children in most parts of Florida as viewed through the 50/30/20 budget lens.
As noted above, one Floridian with no children needs to net $46,645 to cover necessities like groceries, a modest rental, health care, and transportation, the MIT Living Wage Calculator shows. Doubling that provides room for discretionary spending (30%) and savings (20%).
Recommended: What Is Competitive Pay?
What Can Affect Affordability in Florida?
As you can imagine, one of the biggest factors affecting how far your salary will go in Florida is housing. Housing costs can vary widely, depending on where you decide to settle and on whether you buy a house or condo. But home and rent prices across the entire state have risen sharply over the past few years.
The cost of insurance coverage — homeowners, health, and auto — also is generally higher than in many other states. Many home and condo owners also must pay for federal flood insurance, which is on the rise. In general, homeowners insurance is very pricey in Florida, in part because of the threat of flooding and storms impacting the area.
Still, owners of primary homes may get a property tax break with the homestead exemption, which decreases the property’s taxable value by as much as $50,000.
That doesn’t mean that everyone who lives in the Sunshine State is living large. The state’s median household income in 2022 (the Census Bureau’s most recent number) was just over $67,000 — while the median U.S. household income was closer to $74,580.
As of January 1, 2025, the state’s minimum wage is $14, and Florida is one of the states impacted most by inflation, according to the U.S. Congress Joint Economic Committee.
Check your score with SoFi
Track your credit score for free. Sign up and get $10.*
What Are Some Average Annual Expenses in Florida?
How should you expect to divvy up your income if you live in Florida? Here are some costs you may want to plug into a money tracker app:
Housing
Whether you rent or buy a home, a major portion of your paycheck will likely go toward putting a roof over your head.
A couple of Florida cities appear on this price-to-rent ratio list. The ratios can be useful when considering whether to rent, buy, or invest.
Also useful if you haven’t owned a principal residence in the past three years or you’re a veteran: first-time homebuyer programs in Florida.
If you’re buying …
Florida’s housing market continues to be red hot, with prices in January 2024 up 4.5% compared with the same period last year, according to Redfin.
Here’s a look at median sale prices in cities across the state for that same period.
Cocoa: $258,000
Daytona Beach: $325,370
Marco Island: $1.2 million
Miami: $660,000
Ocala: $267,675
Orlando: $391,400
Palm Beach: $4.2 million
Stuart: $257,500
Tampa: $462,000
If you’re renting …
Rents are all over the place in Florida, as you can see from the list below. Here are some recent median monthly rents, according to Zillow.
Cocoa: $1,800
Daytona Beach: $1,750
Marco Island: $7,000
Miami: $3,000
Ocala: $1,725
Orlando: $2,000
Palm Beach: $10,000
Stuart: $2,700
Tampa: $2,040
Groceries
The U.S. Census Household Pulse Survey Family Budget Calculator ranked Florida 5th highest for food costs in the U.S. in 2024.
Here are the monthly costs for some Florida counties, based on a family of four (two adults and two children in a household where most food is purchased at a grocery store and prepared at home), according to the Economic Policy Institute Family Budget Calculator.
Brevard County: $1,092
Collier County: $1,185
Hamilton County: $970
Hillsborough County: $1,081
Miami-Dade County: $1,155
Monroe County: $1,318
Palm Beach County: $1,196
Washington County: $861
Utilities
Florida ranks 4th in the U.S. for energy costs, according to MarketWatch. Of course, utility costs can vary depending on whether you rely on natural gas or solar, the size and age of your home, your appliances, etc. But electrical costs came in at $168 per month in a late 2024 study.
According to USAToday, internet costs start at an average of almost $43 per month, and water costs can be $33 and up per month, depending on where you live.
Gasoline
According to GasBuddy’s interactive gas price map, Florida’s gas prices are about average compared with other states. But again, the cost can vary depending on where you live.
Here are GasBuddy numbers for some Florida in March 2024.
Bradenton-Sarasota-Venice: $3.54
Crestview-Fort Walton Beach: $3.27
Daytona Beach: $3.54
Fort Lauderdale: $3.60
Fort-Myers-Cape Coral: $3.55
Gainesville: $3.57
Jacksonville: $3.51
Lakeland-Winter Haven: $3.56
Melbourne-Titusville: $3.55
Miami: $3.56
Child Care
The cost of child care can depend on how old your kids are and if you choose an at-home or classroom setting. According to CostofChildCare.org, the average cost per month in Florida is $989 per child for home-based family care, $1,364 for an infant classroom, $790 for a toddler classroom, and $702 for a preschool classroom.
Recommended: What Is the Average Salary in the US?
Which City in Florida Has the Lowest Cost of Living?
According to NewHomeSource, the Florida city with the lowest overall cost of living is Titusville, followed by Winter Haven, Lauderdale Lakes, Daytona Beach, Sanford, Largo, Lakeland, Deltona, Jacksonville, and Pinellas Park.
A few of those, as well as more affluent cities, have a sizable retiree population. Yes, Florida is a senior magnet. (See: Winter Haven.) By 2030, the number of seniors in Florida is expected to account for 25.5% of the population vs. 21% in 2020.
How Much Money Do You Need to Live Comfortably in Florida?
“Comfort” is a subjective term in any context, as we all have different wants and needs when it comes to our lifestyle.
If you plan to spend more time outside doing things that are inexpensive or free, you may find it’s easier to embrace financial minimalism by living in the Sunshine State.
If, on the other hand, you long to reside in one of Florida’s bigger cities or near the beach, you may have to ask for a bigger salary than you’d need in a less expensive location. That’s especially true if you’ll be living on a single income.
Either way, it may be useful to consider your priorities and whether your income will cover those costs. Can you be happy without owning a boat or being a member of a golf club? Do you tend to live below your means or overspend? Are annual passes to Disney a must?
The Takeaway
Florida can be an expensive place, mostly because the cost of renting or owning a home has gone up so much. But with a good salary — by one definition at least $69,000 for a single, childless person — and a solid spending plan, you can enjoy the laid-back Florida lifestyle.
Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.
FAQ
What is a livable salary in Florida?
MIT’s Living Wage Calculator says a livable salary for a single person in Florida with no children is about $46,000 before taxes.
What job in Florida pays the most?
Cardiologists, ophthalmologists, and radiologists are among the highest earners in the state as of 2024.
Can you live on $30,000 a year in Florida?
You may find it challenging, especially when it comes to finding a place to live. But if you share a home and other expenses, find affordable health care, and budget carefully, $30,000 a year could be enough to live on in Florida.
Photo credit: iStock/Pgiam
SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.
*Terms and conditions apply. This offer is only available to new SoFi users without existing SoFi accounts. It is non-transferable. One offer per person. To receive the rewards points offer, you must successfully complete setting up Credit Score Monitoring. Rewards points may only be redeemed towards active SoFi accounts, such as your SoFi Checking or Savings account, subject to program terms that may be found here: SoFi Member Rewards Terms and Conditions. SoFi reserves the right to modify or discontinue this offer at any time without notice.
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.
This content is provided for informational and educational purposes only and should not be construed as financial advice.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
Third Party Trademarks: Certified Financial Planner Board of Standards Inc. (CFP Board) owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®, CFP® (with plaque design), and CFP® (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board's initial and ongoing certification requirements.
SORL-Q125-007
Read moreSee what SoFi can do for you and your finances.
Select a product below and get your rate in just minutes.