What Is Time in Force? Definition and Examples

What Is Time in Force? Definition and Examples


Editor's Note: Options are not suitable for all investors. Options involve risks, including substantial risk of loss and the possibility an investor may lose the entire amount invested in a short period of time. Please see the Characteristics and Risks of Standardized Options.

Time in force (TIF) is a stock investing term referring to the length for which a trading order is good. Although casual or buy-and-hold investors may not use time-in-force stock limits, they’re an important tool for active traders.

Understanding different time-in-force options may help you close out positions more efficiently.

Key Points

•   “Time in force” is a stock investing term that defines how long a trading order remains active before expiring.

•   Different types of TIF orders include day order, on-open order (OOO), market on close order (MOC), and good ’til canceled order (GTC).

•   Understanding these orders helps active traders manage trade executions and avoid unintended trades.

•   Casual or long-term investors typically do not use TIF orders.

What Does Time in Force Mean?

Time in force is a directive, set by a trader, that defines how long a trade will remain open (or “in force”) before expiring. Options traders and other active traders can set an appropriate end date for their trades to help prevent unintended executions.

Without an end date, an order could be filled at an unfavorable time or price, particularly in markets that move fast. This is especially true for investors employing day-trading strategies and taking advantage of volatile market conditions with rapidly changing prices.

Basics of Time in Force

Before you place a time-in-force stock order, you’ll want to make sure that you understand exactly how they work. As with options trading terminology, it’s important to understand the language used to describe time-in-force orders.

Recommended: A Guide to Trading Options

Types of Time in Force Orders

Time in force is not a specific kind of stock market order. Instead, the phrase refers to the collection of order types that set how long a trade order is valid — or “in force” — in order to pursue potential investment opportunities. If you are considering a buy-to-open (purchasing a new position) or buy-to-close order (closing an existing position), you can also specify the time in force for either of them.

There are several kinds of time-in-force orders, although not every broker or dealer supports them.

1. Day Order

Of the different time-in-force orders used in options trading and other types of trading, day orders are the most common. With a day order, your trade remains open until the end of the trading day. This may happen if the order’s pricing conditions were not met (such as the price on a limit order). If your order has not been executed at the close of the day’s markets, it will expire.

With many brokers, including online brokerage firms, day orders represent the default option. Thus, this is the time in force order with which most people are likely familiar.

2. On-Open Order

Depending on the types of order that your broker or dealer offers, there can be two different types of options for trades executed at market open: MOO and LOO.

A MOO is an order filled when the market opens, at the prevailing opening price. With a LOO order, you can set a limit price for the highest price you’ll pay or the lowest price at which you’ll sell. If the market opens within the constraints of your limit order, it will be executed. Otherwise, your broker will cancel the LOO order.

3. Market on Close Order

A market-on-close (MOC) order requests the sale or purchase of a security at the final closing price of the trading day. These orders may help you avoid intraday trading volatility or simplify trade execution without having to closely monitor the market for fluctuations.

If your brokerage offers MOCs, they may have a cutoff time by which you need to enter in any MOC orders.

Recommended: Buy to Open vs. Buy to Close

4. What Is Good ‘Til Canceled (GTC)?

As its name suggests, a good-til-canceled (GTC) order is a type of time-in-force order that remains in force until you proactively cancel the order or it is filled. Depending on the type of trading or options trading strategy you’re employing, a GTC order may be worth considering if you’re waiting for the underlying stock price to move. Many brokerages will restrict the number of days a GTC order can remain open, often to 90 days.

The maximum potential gain for these orders is the difference between the limit price and the original purchase price, so long as the stock moves in your favor and the trade executes. If the stock fails to reach your target and continues to decline, you may face missed opportunities for smaller gains or risk holding a depreciating asset, leading to unrealized losses.

5. What Is Fill or Kill (FOK)?

FOK orders ensure that trades are executed in full and immediately. If that cannot happen, the order is canceled completely. This helps traders avoid partial fills, which may result in executing orders at differing prices, or with additional transaction fees.

Examples of Time in Force

You currently own shares of a stock that announced earnings last night, and you’re considering liquidating (or selling) your position. You’re not sure how the market will react to the earnings news, so you place a LOO order for more than you paid per share. If the stock opens at this number or higher, your trade will execute. If not, your broker will cancel it.

If the stock’s shares have been rising all day, but you anticipate that it may open at a lower price, you might use a MOC order to try to sell at the end-of-day price.

The maximum potential gain from a market-on-close order depends on how much the stock’s closing price exceeds your original purchase price. For instance, if you bought shares of a stock that closes at an increase in price, your maximum potential gain would be the difference in the price per share (before fees and taxes).

The maximum potential loss can occur if the market moves against your position. In the case of a long position, your loss would be the difference between the original price paid and the lower closing price if the price drops below your purchase price. For a short position, your loss would be the difference between the sale price and the higher closing price, if the closing price rises above the price at which you sold. This loss could be unlimited.

If you prefer to sell the stock when it hits a specific price in the future, you might choose to set a good-til-canceled order as part of your strategy. With a GTC order, you can specify a limit price, ensuring that your trade will only execute if the stock reaches or exceeds that price. Although GTC orders remain active until they are executed or canceled, most brokers set a maximum duration (around 90 days) before an order will expire if it isn’t filled.

This strategy may help investors take advantage of favorable price movements while maintaining flexibility. However, it also carries the risk of missing your target price due to market volatility or unexpected conditions.

Time in Force Day Order vs On-Close Order

Day orders and an on-close order are similar, but they have some important differences. A day order is one that is good for the entire trading day, up to and including close. If you’re placing an order in the middle of the trading day and do not need it to execute at a specific time, this is the type of order you’d use.

Alternatively, an on-close order (either market on close or limit on close) is only good at the close of the trading day. The intent of an on-close order is to execute at the final trading price of the day. If you place an on-close order in the middle of the trading day, it will not execute until the end of the trading day, regardless of its intraday price.

Using Time in Force Orders

How you use the different time-in-force orders will depend on how you buy and sell stocks or execute your options trading strategy. Most buy-and-hold investors won’t use time-in-force orders at all, but if you’re using a more complex strategy, such as buying to cover, you may want to have more control over how and at what price your order is executed.

The Takeaway

Time-in-force orders can be a part of day traders’ execution of specific strategies. It determines how long a trade will remain open before being canceled. It is uncommon for long-term investors to use time-in-force orders.

Investors who are ready to try their hand at options trading despite the risks involved, might consider checking out SoFi’s options trading platform offered through SoFi Securities, LLC. The platform’s user-friendly design allows investors to buy put and call options through the mobile app or web platform, and get important metrics like breakeven percentage, maximum profit/loss, and more with the click of a button.

Plus, SoFi offers educational resources — including a step-by-step in-app guide — to help you learn more about options trading. Trading options involves high-risk strategies, and should be undertaken by experienced investors. Currently, investors can not sell options on SoFi Active Invest®.

Explore SoFi’s user-friendly options trading platform.

FAQ

What happens if my order isn’t executed before it expires?

If your order expires without being executed, it means that the price conditions you set were not met during your chosen specified time period. You will need to place a new order if you still want to trade.

How do I decide which Time-in-Force option to use?

Your choice depends on your trading strategy. For instance:

•   Day orders are for keeping your trade active during the current trading day.

•   GTC orders allow you to execute trades that happen at a specific price level, and orders can stay open for days or weeks.

•   MOC orders are designed for executing trades at the end-of-day closing price.

Are Time-in-Force orders only for active traders?

Active traders frequently use time-in-force orders to manage trades in dynamic markets. While less frequent, these orders can also play a role in long-term investors’ strategies, particularly if they want more control over trade execution timing and price conditions.

Can I change the Time-in-Force setting after placing an order?

No. Once you’ve submitted an order, the time-in-force setting cannot be modified. If you want to adjust the duration, you’ll need to cancel the original order and create a new one with the updated time-in-force option.


Photo credit: iStock/Tatomm

SoFi Invest®

INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE

SoFi Invest encompasses two distinct companies, with various products and services offered to investors as described below: Individual customer accounts may be subject to the terms applicable to one or more of these platforms.
1) Automated Investing and advisory services are provided by SoFi Wealth LLC, an SEC-registered investment adviser (“SoFi Wealth“). Brokerage services are provided to SoFi Wealth LLC by SoFi Securities LLC.
2) Active Investing and brokerage services are provided by SoFi Securities LLC, Member FINRA (www.finra.org)/SIPC(www.sipc.org). Clearing and custody of all securities are provided by APEX Clearing Corporation.
For additional disclosures related to the SoFi Invest platforms described above please visit SoFi.com/legal.
Neither the Investment Advisor Representatives of SoFi Wealth, nor the Registered Representatives of SoFi Securities are compensated for the sale of any product or service sold through any SoFi Invest platform.
For a full listing of the fees associated with Sofi Invest please view our fee schedule.

Options involve risks, including substantial risk of loss and the possibility an investor may lose the entire amount invested in a short period of time. Before an investor begins trading options they should familiarize themselves with the Characteristics and Risks of Standardized Options . Tax considerations with options transactions are unique, investors should consult with their tax advisor to understand the impact to their taxes.
Disclaimer: The projections or other information regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results.
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.

SOIN-Q324-063

Read more

Investing in Movies and the Film Industry

Investors who are film buffs have a number of avenues for investing in movies and the film industry, including buying stock in entertainment companies, crowdfunding individual movie projects, and more. It’s important to keep in mind that while Hollywood is seemingly all glitz and glamour, many films are financial failures, which can hurt an investor’s bottom line.

Investing in film is considered a type of alternative investment — similar to real estate, commodities, collectibles, and such — because these investments fall outside the realm of traditional stock and bond markets. Film investments, like other alts, can offer some portfolio diversification, but also come with specific risk factors.

Note that SoFi does not currently offer film-related investments, but offers alternative funds that provide access to commodities, real estate, hedge funds, venture capital, and more.

Key Points

•   Investing in the film industry can be done through stocks, crowdfunding, film funds, and other options.

•   Investing in film is a type of alternative investment strategy. Alts typically offer low correlation with traditional stock and bond markets, and can be risky.

•   Unique risks include box office volatility, production delays, cost overruns, distribution issues, and legal disputes.

•   Potential rewards include industry growth, portfolio diversification, and owning a passion investment.

•   Due diligence is crucial for assessing project success and mitigating risks.

•   Tax incentives for film production vary by state, and may benefit production companies and studios.

Ways to Invest in Movies

There are a few primary methods for investing in movies and the entertainment industry, including buying stocks or equity in production companies, investing via crowdfunding platforms to support specific projects, or investing in film funds that help budding filmmakers gain traction in the industry.

While investing in stocks of public film companies, or companies that produce equipment or technology relating to film production, would fall under the umbrella of traditional investing, crowdfunding and film funds would generally be considered alternative investments.

Recommended: Alt Investment Guide

Alternative Investments

As noted, alternative investments fall outside traditional markets. Alts include tangible assets like commodities, real estate, art and antiques, as well as other collectibles (e.g. books, toys, comics) and many other types of investments.

While they’re generally high risk, alts can offer potential upsides: e.g., higher returns compared to stocks and bonds, and sometimes the opportunity to earn passive income. That said, alternative strategies are typically illiquid, not well regulated, and lack transparency.

For investors interested in a wider range of opportunities — or seeking diversification — understanding the definition of alternative assets can offer some options.

Alternative investments,
now for the rest of us.

Start trading funds that include commodities, private credit, real estate, venture capital, and more.


Film Production Companies

Perhaps the easiest way for many investors to make an initial investment in the movie industry is to buy stocks of film production companies, or those that support the industry. This allows investors to directly own a piece of the companies that are producing movies and TV shows, and more.

Many, if not most large studios are publicly traded. And it may be possible to invest in private companies, although those types of investments require accredited investors.

Further, investors could also consider investing in larger companies that own movie production studios or capabilities — think companies like Disney or Amazon, which are active in the entertainment industry but also have other arms that drive revenue.

It’s also possible to invest in movie theater chains, which can also help investors gain exposure to the industry.

Note, of course, that investing in stocks of any type carries with it numerous risks, and that investing in the entertainment industry, specifically, can have its own risks.

Crowdfunding Platforms

Another relatively low-key way for investors to gain exposure to the filmmaking industry is via one of the crowdfunding platforms, which can allow you to invest in specific film projects. For instance, if there’s a movie you really want to see produced, the producers might solicit investment on a crowdfunding platform to generate the capital to get it made. And investors could, in that hypothetical scenario, invest in the project.

Crowdfunding platforms can be very niche, too, aiming to fund films or projects within specific genres. There are multitudes of crowdfunding platforms out there, each with its own terms. Investors should carefully vet the platform, as well as the project they might invest in, to assess factors such as:

•   How long your money might be locked up

•   Repayment terms

•   Percentage of profits

•   Fees

•   Legal or contractual restrictions

Investors should be aware that crowdfunding projects are typically very risky, and that there’s a good chance you will see little return for your money, if you see any at all. Unless your investment is seeding the next hit film franchise, it’s unlikely that these types of investments will generate a notable rate of return.

Recommended: What Is Portfolio Diversification?

Film Funds and Slates

Another potential avenue for investing in the film industry is through film funds or slate financing.

Slate financing is relatively common in the industry, and involves a studio co-partnering with a third-party entity to get investors to finance multiple films at once — a “slate” of projects. It’s effective for studios, and potentially for investors, as a method of risk diversification, and may help the studio to potentially lower production costs.

But slate financing is typically done through a third-party or private equity fund, which raises money from investors. Investors in that fund are then entitled to a portion of the returns generated by the movies that are produced, assuming there is any cash to divvy up.

In some ways, it’s a type of pooled investment strategy, but the stakes are much higher, retail investors may not qualify for slate investments, and there are more mechanics and risks at play when it comes to private equity and hedge funds.

LIke crowdfunding, there are platforms out there that allow investors to invest in film slates — an internet search will likely lead you to several of them.

💡 Quick Tip: Before opening an investment account, know your investment objectives, time horizon, and risk tolerance. These fundamentals will help keep your strategy on track and with the aim of meeting your goals.

Evaluating Potential Movie Investments

As discussed, investing in movies or film projects is different from investing in other sectors, like technology or consumer goods. There are a lot of variables in the mix, and each project is different. Unless investors are buying stocks in film studios, production companies, or other firms involved in the movie industry, there are many factors to evaluate before putting up your money.

When investing in individual film projects, it’s important to do some due diligence and research who is involved. For instance, if you’re thinking of investing in a film project helmed by a certain producer or director, it can be a good idea to consider their past productions, their reputation, and their track record at the box office. Also, if you know what talent or actors are involved, that can help, too. There’s also the writing and script to consider.

Further, does the film have broad appeal? Or could it be too niche to appeal to a broad market, and potentially limit its earnings? Assessing the pros and cons, as well as getting to know industry insiders and experts, can help investors expand their knowledge of this industry.

And remember, just because a film may lack A-list talent or a superstar director doesn’t mean it won’t be successful. There have been numerous small-budget films with no-name actors that have become profitable. But those are very few and far between.

Recommended: A Closer Look at ETFs vs Mutual Funds

Risks and Rewards of Film Investing

As noted, while a film always has a chance of becoming a box office hit — or later in its life cycle, a cult favorite that earns a lot of money through post-box-office sales — there are some significant risks involved in investing in movies. If you plan on investing in studio stocks, the usual stock market risks apply, plus the risks associated with the filmmaking industry specifically.

Risks of Investing in the Film Industry

But when it comes to investing in films, some of the individual risks that may be unique to the industry include box office sales (ticket sales can fall short of projections), production delays and cost overruns, distribution issues, and even risks related to legal or contractual disputes.

Similar to other kinds of alternatives, there are liquidity risks, the potential for volatility, and industry and legal issues that can impact profitability.

Rewards of Investing in the Film Industry

Of course, for some people investing in film can be rewarding. People love movies, and in the last 10 years the industry has seen growth on the heels of big-budget blockbusters and streaming services that produce original movies.

Films also don’t necessarily correlate to the stock market, which means they may serve as a method for diversifying a portfolio. Finally, they may be a sort of passion-investment for some investors, who want a chance to capture some of the magic of Hollywood in their portfolios.

Tax Incentives and Other Considerations

Taxes play a big role in film production, both for the project and for investors who may see a profit from their investments.

Utilizing Tax Breaks

One factor that can help support a film’s revenue strategy is when producers take advantage of tax incentives. Many states in the U.S. offer tax breaks for films in the form of tax credits and rebates and other types of tax credits.

There are numerous rules and restrictions that a film project must adhere to in order to qualify for these tax breaks. Investors who want to commit to a specific project may want to investigate the production’s tax strategy.

How Profits Might Be Taxed

Unlike investing in traditional securities, which typically fall under capital gains tax or ordinary income tax rules, per the IRS, the returns from different types of alts can receive different tax treatment.

This may be the case, even when investing in these alts via a mutual fund or exchange-traded fund (ETF).

When investing in alts, it’s wise to involve a professional to help address the tax-planning side of the equation.

The Takeaway

Investing in movies and the film industry can offer a way for investors to add diversification to their portfolios. There are numerous ways to invest in the film industry, and that includes buying stocks related to studios or production companies, using crowdfunding platforms to support specific film projects, and more. Investors would do well, however, to consider the specific risks involved with filmmaking and the entertainment industry, which may differ from other industries and sectors.

Ready to expand your portfolio's growth potential? Alternative investments, traditionally available to high-net-worth individuals, are accessible to everyday investors on SoFi's easy-to-use platform. Investments in commodities, real estate, venture capital, and more are now within reach. Alternative investments can be high risk, so it's important to consider your portfolio goals and risk tolerance to determine if they're right for you.

Invest in alts to take your portfolio beyond stocks and bonds.

FAQ

Can I invest in Hollywood movies as an individual?

Yes, it’s possible to invest in the film industry and even specific film projects as an individual. There are crowdfunding platforms that may allow investors to do so, and for private equity investors, slate investing opportunities offered through similar platforms that can allow investors exposure to specific projects.

What’s the average return on investment for movies?

It’s difficult to zero in on an average return on investment for movies, as it would depend on the specific type of investment (stocks versus investing in a specific project, for example), and myriad other factors such as where and when a film was released, and more.

Are there tax benefits to invest in films?

There may be tax benefits and credits associated with film productions, which vary from state to state, and typically benefit production companies and studios, not individual investors.


Photo credit: iStock/Massonstock

SoFi Invest®

INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE

SoFi Invest encompasses two distinct companies, with various products and services offered to investors as described below: Individual customer accounts may be subject to the terms applicable to one or more of these platforms.
1) Automated Investing and advisory services are provided by SoFi Wealth LLC, an SEC-registered investment adviser (“SoFi Wealth“). Brokerage services are provided to SoFi Wealth LLC by SoFi Securities LLC.
2) Active Investing and brokerage services are provided by SoFi Securities LLC, Member FINRA (www.finra.org)/SIPC(www.sipc.org). Clearing and custody of all securities are provided by APEX Clearing Corporation.
For additional disclosures related to the SoFi Invest platforms described above please visit SoFi.com/legal.
Neither the Investment Advisor Representatives of SoFi Wealth, nor the Registered Representatives of SoFi Securities are compensated for the sale of any product or service sold through any SoFi Invest platform.
For a full listing of the fees associated with Sofi Invest please view our fee schedule.


An investor should consider the investment objectives, risks, charges, and expenses of the Fund carefully before investing. This and other important information are contained in the Fund’s prospectus. For a current prospectus, please click the Prospectus link on the Fund’s respective page. The prospectus should be read carefully prior to investing.
Alternative investments, including funds that invest in alternative investments, are risky and may not be suitable for all investors. Alternative investments often employ leveraging and other speculative practices that increase an investor's risk of loss to include complete loss of investment, often charge high fees, and can be highly illiquid and volatile. Alternative investments may lack diversification, involve complex tax structures and have delays in reporting important tax information. Registered and unregistered alternative investments are not subject to the same regulatory requirements as mutual funds.
Please note that Interval Funds are illiquid instruments, hence the ability to trade on your timeline may be restricted. Investors should review the fee schedule for Interval Funds via the prospectus.



Investment Risk: Diversification can help reduce some investment risk. It cannot guarantee profit, or fully protect in a down market.


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.

Exchange Traded Funds (ETFs): Investors should carefully consider the information contained in the prospectus, which contains the Fund’s investment objectives, risks, charges, expenses, and other relevant information. You may obtain a prospectus from the Fund company’s website or by email customer service at https://sofi.app.link/investchat. Please read the prospectus carefully prior to investing.
Shares of ETFs must be bought and sold at market price, which can vary significantly from the Fund’s net asset value (NAV). Investment returns are subject to market volatility and shares may be worth more or less their original value when redeemed. The diversification of an ETF will not protect against loss. An ETF may not achieve its stated investment objective. Rebalancing and other activities within the fund may be subject to tax consequences.


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.

Disclaimer: The projections or other information regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results.

SOIN-Q324-059

Read more

How to Get Perkins Loan Forgiveness in 2025

Borrowers with Perkins Student Loans may be eligible for forgiveness. Although the Federal Perkins Loan Program was discontinued in 2017, forgiveness is still an option for qualifying individuals who are repaying these loans.

Read on to learn the details about Perkins loan forgiveness, the eligibility requirements, and how to apply.

Key Points

•   Perkins loan forgiveness may partially or fully cancel Perkins student loan debt for those who work full-time in public service.

•   Qualifying roles include certain teaching, law enforcement, and health care jobs, each with specific requirements.

•   Perkins forgiveness is granted incrementally — typically, 15% in the first two years, 20% in the third and fourth years, and 30% in the fifth year.

•   To apply for forgiveness, contact your school or loan servicer for application forms and detailed instructions.

•   Those not eligible for Perkins forgiveness may consider alternatives like Federal Direct Loan Consolidation, income-driven repayment plans, or refinancing student loans.

How Does Perkins Loan Forgiveness Work?

Through Perkins loans forgiveness, your Perkins loan debt could be partially or fully canceled. You may qualify for forgiveness by working full-time in a public service job, such as military service, law enforcement, or education.

Once a Perkins loan borrower applies and is approved for student loan forgiveness, they will no longer be required to repay some or all of their loans. However, federal Perkins loan forgiveness doesn’t happen all at once. Instead, forgiveness happens in percentage increments that increase over time (see more on that below).

What Are Perkins Loans?

Perkins loans are subsidized low-interest federal student loans for undergraduate and graduate students who have exceptional financial need. Under the Perkins loan program, undergraduate students could borrow $5,500 per year with a cumulative maximum of $27,500, while graduate or professional students could take out $8,000 annually with a cumulative maximum of $60,000.

Perkins loans have a fixed federal student loan interest rate of 5.00%. Because the loans are subsidized, the government covers the interest that accrues on Perkins loans while borrowers are in school. Repayment for Perkins loans begins nine months after a student graduates, leaves school, or drops below half-time status.

As noted, the Perkins Loan program ended in 2017, when Congress did not renew it. The federal government allowed final Perkins loan disbursements through June 30, 2018.

Who Qualifies for Perkins Loan Forgiveness?

You may be eligible for Perkins loan forgiveness if you work full-time in a public service role. Jobs that may qualify a borrower for forgiveness include:

•   Elementary or secondary teacher in a low-income district or service agency in a teacher-shortage area

•   Special education teacher at a public or nonprofit school

•   Preschool or prekindergarten teacher

•   Law enforcement officer or correctional officer

•   First responder

•   Attorney for a federal public or community defender organization

•   AmeriCorps, VISTA, or Peace Corps volunteer

•   Member of the U.S. Armed Forces

•   Health care worker such as a nurse or medical technician

For each job, there are a number of requirements that need to be met to qualify for federal Perkins loan forgiveness, including the number of years worked, and in some cases, the year you started. Some Perkins loan holders may have as much as 100% of their Perkins loans forgiven after five years in a public service job.

Borrowers who are not eligible for Perkins student loan forgiveness might be able to have their Perkins student loans discharged in certain circumstances. For instance, you may qualify for total and immediate cancellation of your Perkins loans in the following situations:

•   Your school closed while you were attending it

•   Bankruptcy

•   Total and permanent disability

•   Death

If any of these circumstances apply to your situation, contact your school’s financial aid office or loan servicer about getting a loan discharge.

How to Apply for Perkins Loan Forgiveness

To apply for Perkins student loan forgiveness, contact the school that originally issued your Perkins loans or your loan servicer to get the application forms. Your school or loan servicer can also give you specific instructions on how to apply.

As part of the application process, be aware that you will need to show proof that you work in a qualifying public service job.

What Happens If You’re Approved for Perkins Loan Forgiveness?

If you’re approved for Perkins loan forgiveness, you will likely receive forgiveness for your loans in increasing percentages. For example, if you are eligible for 100% forgiveness, your debt will typically be forgiven in these years and increments:

•   First and second years of qualifying employment: 15% of the loan amount

•   Third and fourth years of of qualifying employment: 20% of the loan amount

•   Fifth year of qualifying employment: Final 30% of the loan amount

Recommended: Are Forgiven Student Loans Taxed?

What to Do If You Don’t Qualify for Perkins Loan Forgiveness

If you aren’t eligible for Perkins student loan forgiveness, there are other options that can help you manage or lower your student loan payments. Methods to consider include:

Federal Direct Consolidation Loan

With a Direct Consolidation loan, you can combine one or more federal student loans, including Perkins loans, into a new loan to lower your monthly payment amount and access federal forgiveness programs, including Public Service Loan Forgiveness. After consolidation, you’ll have one loan with a fixed interest rate, which may be easier to manage.

Income-Driven Repayment Plans

Income-driven repayment (IDR) plans base your federal loan payments on your discretionary income and family size. This often results in a lower monthly loan payment. Under an IDR plan, you could qualify for forgiveness of your remaining debt after 20 or 25 years.

Perkins loans are not eligible for IDR plans, but if you consolidate them with a Direct Consolidation Loan, you can enroll in an IDR plan.

Student Loan Refinancing

Refinancing student loans allows you to replace your old loans with a new private loan, ideally one that has a lower interest rate and more favorable terms.

Borrowers interested in refinancing student loans to save money should compare lenders and offers to choose the best one for their situation. Also, 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 financial sense for you.

Recommended: Student Loan Refinancing Guide

The Takeaway

Borrowers with Perkins loans may qualify for forgiveness if they are employed full-time in a qualifying public service job. They might get up to 100% of their loan amount forgiven.

Those who are not eligible for Perkins forgiveness may be able to have their Perkins loans fully discharged in certain situations, such as bankruptcy or if their school closed before they could earn their degree.

However, these aren’t the only options to help borrowers tackle student loan debt. You can also explore methods that could help lower your monthly loan payments, such as an income-driven repayment plan, a Federal Direct Consolidation Loan, or 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.

With SoFi, refinancing is fast, easy, and all online. We offer competitive fixed and variable rates.


Photo credit: iStock/designer491

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 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.

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.

SOSLR-Q424-017

Read more
Do Secured Credit Cards Help Build Credit?

Do Secured Credit Cards Help Build Credit?

In many cases, a secured credit card can be a good way to establish and build credit. However, if you’re planning to get a secured credit card to build credit, what’s critical to determine is whether the issuer reports usage to the major credit bureaus.

Many issuers do, but some may not. If your issuer does not report information to the credit bureaus, then a secured credit card won’t help build your credit. But if the issuer does, then that secured credit card could be a good starting point for your credit-building journey.

Key Points

•   Secured credit cards help build credit when the issuer reports to major credit bureaus.

•   Secured credit cards involve making a deposit that serves as the account’s credit limit.

•   Paying the balance on time and in full can help establish a good credit history.

•   Maintaining a low credit utilization ratio, ideally below 30%, can help build a credit score.

•   Regularly monitoring your credit report can detect errors and signs of fraud.

What Is a Secured Credit Card and How Does It Work?

There are two different kinds of credit cards: secured credit cards and unsecured credit cards.

•   An unsecured credit card is what most people think of when they think of a traditional credit card. In many ways, a secured credit card operates in much the same way, with the bank extending a specific amount of credit that you can use throughout the month and that you won’t have to pay until your statement closes at the end of the month.

•   There is one major difference between a secured credit card and an unsecured credit card. With a secured credit card, you have to put down a security deposit. The amount of this deposit is usually what then serves as your credit limit.

   This money that you put down also acts as collateral. If you fail to pay the amount borrowed, the lender can take that deposit to help cover its losses. This added protection for the lender is why a secured credit card is generally easier to qualify for if you have a thin credit history.

   If you use your credit card responsibly, you’ll get your deposit back in full when you close your account or get upgraded to an unsecured credit card.

Can You Build Credit with a Secured Credit Card?

It is possible to build credit with a secured credit card — as long as your issuer reports usage and payment activity to the major credit bureaus.

If that information is reported, then you could build credit with a secured credit card, assuming you use your account responsibly. For instance, if you routinely make on-time payments, that could make a positive impact on your score, since payment history is one of the key factors that determines your credit score. It’s a key way in which you can show you are using a credit card responsibly.

Tips for Building Credit with a Secured Credit Card

Here are a few tips for establishing credit by using a secured credit card:

Make Sure Your Issuer Reports to the Credit Bureaus

If the issuer of your secured credit card does not report to the major credit bureaus, it is not likely to have an impact on your credit history or score. When looking at and applying for a secured credit card, make sure that it will report usage and payment history to the credit bureaus.

Recommended: Does Applying For a Credit Card Hurt Your Credit Score?

Pay Your Statement Balance On Time and In Full

Your overall payment history is an important factor in determining your credit score. Make sure to pay your secured credit card bill on time, each and every month. You should also not spend more money on your card than you have, so that you can pay your statement balance off in full when it comes due.

Avoid Maxing Out Your Card

Another factor that makes up your credit score is your credit utilization ratio, which is defined as your total balance divided by your total available credit limit. It’s generally recommended to keep this ratio at 30% or lower, if possible. In order to avoid negative effects to your credit score, you’ll want to steer clear of maxing out your card, even if that money is technically available to you.

Recommended: What is the Average Credit Card Limit?

Other Ways You Can Use Credit Cards to Build Credit

Besides using a secured credit card, here are a few other tips for building credit with a credit card:

•   Increase your credit limit when possible. Again, this can lower your credit utilization rate, which is a major factor in determining your score.

•   Set up automatic payments. This way, you never make a late payment. Payment history has the biggest impact on your credit score.

•   Use your credit card regularly. While it might seem safest to keep your credit card tucked away unused, it’s necessary to use it to demonstrate to lenders that you can responsibly repay your debts. Just make sure not to spend more than you can afford to pay off in full.

•   Limit new credit applications. While it might feel tempting to try to get better cards as your credit starts to get established, keep new credit applications to a minimum. Each application results in a hard inquiry, which temporarily lowers your score. Too many applications within a short window of time can also raise a red flag for lenders.

•   Monitor your credit report. Even if everything seems like it’s smooth sailing with your credit, it’s smart to monitor your credit report regularly. Review your credit report for any errors or any potential signs of fraud.

The Takeaway

If you’re not sure whether you’ll get approved for an unsecured credit card, you might consider a secured credit card instead. With a secured credit card, you put down a refundable security deposit upfront, which serves as your total available credit. Because of this deposit which reduces risk, lenders may be more likely to approve you. If you are approved, using a secured credit card can help you build credit — as long as your issuer reports usage to the major credit bureaus and you use your card responsibly.

Whether you're looking to build credit, apply for a new credit card, or save money with the cards you have, it's important to understand the options that are best for you. Learn more about credit cards by exploring this credit card guide.

FAQ

How much will a secured credit card help my credit score?

There isn’t a specific formula to determine how much a secured credit card can help your credit score. Instead, you should focus on making and strengthening good financial habits like living within your means and paying off your credit card in full, each and every month. A secured credit card can be one way to help your credit score in this manner.

What is the best secured credit card to build credit?

The best secured credit card will vary depending on your specific financial situation. You’ll want to look for a secured card that reports to the major credit bureaus, charges low or no fees, and has a low interest rate. There are secured credit cards that offer a limited rewards program as well, which can make for a nice perk in addition to building your credit.

Can you get a secured credit card with a bad credit score?

Yes, it is possible to get a secured credit card with a bad credit score. Because you are putting down the initial security deposit, lenders may consider you as less of a risk than someone applying for an unsecured credit card. Therefore, you may have greater odds of approval when applying for a secured credit card.


Photo credit: iStock/Delmaine Donson

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.

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 .

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.

SOCC-Q125-018

Read more
Female dentist with patient

10 Smart Tips To Finance Expensive Dental Work

If you need expensive dental work, you’re likely wondering how to pay for it. After getting a quote from your dentist and learning how little your insurance will cover, you may be thinking, I must be missing a way to afford this.

There’s good news and bad news when it comes to how to finance expensive dental work. Bad news first: Despite insurance, dental work can cost a lot out-of-pocket. The good news: While there’s probably not an easy solution to covering the whole bill, there are many tricks you can use to make your dollar stretch farther (and possibly even get a tax break while you’re at it).
Here, learn smart strategies about how to pay for dental work. Altogether, these ideas can add up to quite a discount off your dentist’s quote.

Key Points

•   Dental care can be very expensive, but there are strategies to help you pay for large bills.

•   Dental insurance can significantly lower costs when using in-network providers.

•   Payment plans from dentists or third parties help manage large payments over time, and some dentists will negotiate their fees.

•   FSAs and HSAs can provide tax-free savings for dental expenses, enhancing affordability.

•   Other sources of funding for dental bills include credit cards, emergency funds, and personal loans.

10 Ways to Pay for Dental Work

Many people cover their dental work by combining several of the strategies below. It’s tough to avoid paying out-of-pocket entirely, but you can often get a hefty discount off the original quote. Here, how to pay for dental work:

1. Dental Insurance

You should know that there’s a difference between a dental office that takes your insurance and a dental office that is in-network. A dentist may take your insurance even though they are out-of-network.
When a dentist says that they take your insurance, that likely means that they will file an insurance claim for you. But if your insurance doesn’t cover a procedure or service, the price will generally be set at your dentist’s discretion — and you’ll typically be responsible for paying the costs out-of-pocket.

Generally, using an out-of-network dentist means your insurance will cover less so you’ll pay more. Being in-network, on the other hand, usually means that your insurance company has prenegotiated the fees with the dentist, and they generally can’t charge more than that. So you’ll usually pay less with an in-network dentist.

Recommended: Does Cosigning Build Credit?

2. Medical Insurance

Dental work isn’t typically covered by medical insurance, but certain procedures may be covered if they’re deemed medically necessary. For instance, some kinds of oral surgery potentially can be billed as a medical procedure. Before you move forward with any dental work, it’s a smart idea to talk to your medical insurance company to find out what may be covered. This could help you afford a major dental bill.

Recommended: Guarantor vs. Cosigner: What Are the Differences?

3. Payment Plans

Paying a bill on a weekly or monthly basis can be much more manageable than paying it in a lump sum. That’s why many dental offices offer payment plans for procedures not covered by insurance.
Payment plans can be offered directly through your dentist’s office, or by third-party services like CareCredit. Ask about the specific terms of any payment plan offered. For example:

•   What procedures qualify for a payment plan?

•   Will they charge interest? And if so, how much?

•   Are other fees involved?

•   Do they have to check your credit first? If so, will it be a hard or soft inquiry?

Asking these questions beforehand can help keep you from getting blindsided by unexpected costs.

4. Flexible Spending Account

A Flexible Spending Account (FSA) is a special savings account offered through some employer benefit plans. FSAs allow employees to pay for certain out-of-pocket medical and dental costs with tax-free money.

The typical taxpayer saves about 30% in federal, state, Social Security, Medicare, and Unemployment taxes. That translates to a 30% discount off all eligible medical and dental expenses, which could be an idea for how to pay for expensive dental work.

FSA rules cap the amount of money that can be placed in the account each year ($3,300 for 2025 per the Internal Revenue Service, or IRS) and also dictate which types of expenses are FSA-eligible. Most routine dental work and orthodontia qualify: cleanings, X-rays, fillings, crowns, extractions, implants, and Invisalign.

FSAs can’t be used for any procedure that is considered cosmetic, including teeth whitening and veneers. But in some instances, if a typically cosmetic procedure is deemed medically necessary — as with some veneers — you may be able to use your FSA. Talk to your dental insurance company for more information.

One drawback of FSAs is that any funds that are unused at the end of the plan year are forfeited — so make sure you don’t leave any money on the table. In the plus column, because FSAs are funded with pretax dollars, they reduce your taxable income, which is always nice.

5. Health Savings Account

A Health Savings Account (HSA) is similar to an FSA in several ways:

•   Both are funded with pretax dollars

•   Both are used to cover health care expenses

•   Both can be established through your employer, and funded with payroll deductions

But there are also key differences between an FSA and HSA:

•   HSAs must be used with a High Deductible Health Plan (HDHP)

•   The 2025 HSA funding cap is $4,300 for individuals, $8,550 for families

•   HSA funds roll over from year to year

•   You can set up an HSA through some health insurance companies and banks, making them a good option for the self-employed

If you don’t have access to an FSA — and you are currently covered by a high-deductible health plan — you can open an HSA at any time.

6. Negotiate With Your Dentist

The cost of dental work can actually be negotiable, depending on your dentist and your situation. First, have your dentist walk you through the treatment plan. Ask lots of questions, including:

•   Are all the procedures they’re suggesting equally urgent? Can some be postponed?

•   Can you get a discount by paying cash or the entire cost upfront? Some dentists give a percentage off for this.

•   If you don’t have insurance, ask if you can score an uninsured rate.

Some dentists will be flexible, and the worst that can happen is they say no. Another thing you can do is to have an honest conversation with your dentist about your financial situation. If your budget has no breathing room, see if they are open to giving you a discount or if they are willing to push out your bill for a few months.

If the planned dental work is important but not super urgent, you may be able to schedule your appointments so they straddle two plan years. For example, if your plan year is January-December, you might schedule half the appointments for December, and half for the following January. That way, you can take advantage of two annual benefit maximums for insurance and two years’ worth of FSA or HSA funds.

7. Get Work Done at a Dental School

Having work done at a well-regarded dental school may be an option to make expensive dental work more affordable. Search online to see if you live within easy distance of a dental school that offers discounted services. Some schools may provide lower-cost exams and procedures as a way of training their students and giving them real-world experience, under the supervision of skilled, highly trained dentists. The cost can be up to 50% lower than what you might find elsewhere.

If you have access to this and want to go this route, it can be wise to carefully check online reviews to hear how others’ experiences went and feel confident in your decision.

Recommended: Applying for a Loan With a Cosigner

8. Credit Card

In some circumstances, a credit card can be a suitable payment option for dental bills. If you have a card that offers rewards or cash back, it can also provide some benefits in return.

You might also consider looking for a medical credit card. These cards are issued by banks, credit unions, and other lenders and can only be used for health care and within a specific provider network.

Some medical credit cards defer interest for a period of time after your health care charges are incurred — much like 0%-interest cards. No interest is charged so long as those charges are paid off in full before the interest-free period expires. Late payments or balances that have not been fully paid before the deferment period ends can incur interest charges. Make sure you read the fine print and are comfortable with the fees involved before signing up for one of these cards.

Speaking of 0%-interest cards, they’re another option to finance expensive dental work. By law, these interest-free promotional financing offers must last at least six months. But the most competitive offers go well beyond this to offer 0% introductory APR financing for 18 months or longer.

Before you commit to a new card, it’s a good idea to shop around for the best terms and make sure dental work meets the requirements for any rewards. Credit card debt can be a significant financial issue, so it’s wise to know the exact benefits and downsides of this kind of card. You might want to consider getting a personal loan or borrowing from family instead.

9. Personal Loan

Because of this flexibility, many people use personal loans to pay for out-of-pocket medical expenses or to consolidate high-interest debts through a debt consolidation loan

Using a personal loan to finance dental work might be a better option than a credit card. The lower the interest rate, the lower your monthly payment. And personal loans tend to have lower interest rates than credit cards. As of December 2024, credit cards have an average interest rate of more than 20%, but online lenders may offer significantly lower personal loan interest rates (even less than half that percentage) to qualified borrowers.

By using a personal loan calculator, you can compare this option to, say, using a credit card or dipping into your savings.

How much you can borrow is also flexible, and getting approved for a personal loan can be done entirely online. In short, a dental loan might be a good option to cover additional dental needs, from basic fillings to more complex, high-cost procedures.

10. Emergency Fund

Tapping your emergency fund won’t offer a discount on your dental bill, but it can provide a way to pay it. One of the cornerstones of good financial management is to build an emergency fund, typically holding three to six months’ worth of living expenses. The typical scenarios for withdrawing funds from your emergency savings account include paying bills if you lose your income or taking care of an unexpected large medical, dental, or car repair bill. So if you receive a major dental bill and need cash, your emergency fund could be an answer.

Remember, emergency funds aren’t built in a day. Setting up automatic payments into this account from your checking can be a smart move; it’s fine if it’s a small sum like $25 per paycheck to start. And don’t forget to keep the money in a high-yield savings account so it can grow until you need to use it.

The Takeaway

When it comes to how to pay for expensive dental work, there is no one perfect solution. But there are a number of resources and tricks you can call upon to stretch your dollar. Discuss your options with your dentist to find out what discounts and payment plans they may offer. Avail yourself of an FSA or HSA to pay with pretax dollars, if possible, or pay your bill with a 0% interest credit card, rewards card, or medical credit card, among other tactics.

Another option is to finance your dental work with a personal loan.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. See your rate in minutes.

SoFi’s Personal Loan was named NerdWallet’s 2024 winner for Best Personal Loan overall.

FAQ

What can I use as financial assistance for dental work?

To finance expensive dental work, you may have to employ a few different tricks. First, if you have an FSA or HSA, paying your bills with pretax funds will net you an effective 30% discount. You can also schedule work to straddle two plan years so that your dental insurance and FSA/HSA cover twice the annual amount. If you’re uninsured, explain your financial situation to your dentist to see if they’ll offer a discount. And consider taking out an unsecured personal loan.

Can I use a personal loan as financial assistance for dental work?

Yes, a personal loan can be a great option for covering expensive dental work, compared to high-interest revolving credit. Shop around for the best rate and terms, and read the fine print to make sure you fully understand the fees involved for any option you are considering.

Is it hard to get financial assistance for dental work?

It will take some work on your part, but financial assistance is available for low-income patients through dental schools, clinical trials, United Way, Medicare, and Medicaid. Find out what kind of assistance you may be eligible for on the U.S. Department Health & Human Services website at HHS.gov.


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.


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 .

*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

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 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.


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.

SOPL-Q424-063

Read more
TLS 1.2 Encrypted
Equal Housing Lender