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If you have student loans, you may sometimes see the total loan balance go up, thanks to such factors as your interest rate, your repayment term, or loan fees.

Whether your student loans are in a period of deferment or you’ve diligently been making payments every month, it can definitely be frustrating to see your balance increase instead of go down. Having student debt can be stressful enough without feeling as if it’s growing vs. being paid off.

For information and support in this situation, read on. You’ll learn more about this scenario, including:

•   Why can your student loan balance increase?

•   What factors contribute to a student loan balance increasing?

•   How can you reduce your loan total?

•   What repayment options could help?

Understanding Loan Balances

Here’s one of the basics of student loans: When you first take out a loan, your loan balance is the amount you borrowed. However, that loan balance can increase or decrease depending on your payments, interest charges, and fees.

Some factors that can affect your loan balance include:

•   Loan principal: This is the amount you originally borrowed. If you took out a $25,000 student loan to pay for school, your principal amount is $25,000.

•   Interest rate: Interest is the cost of borrowing money and can be part of what you owe on your student loan balance. Federal Direct loans for undergraduates currently have fixed interest rates of 5.50%, while Direct Unsubsidized Loans for graduate students have a fixed rate of 7.05%. Direct PLUS loans have a rate of 8.05%.

The rates on private student loans vary, but they may currently range from around 4% to 16%, depending on your credit, the lender you choose, and when you borrowed. Private student loan rates may be fixed or variable. If your rates are variable, meaning they fluctuate with market conditions, it can be extremely challenging to predict exactly how your loan balance will change over time.

•   Annual percentage rate (APR): You typically see this term attached to private student loans, rather than federal loans. It’s a more inclusive measure than interest rate alone, since it includes interest, fees, and other charges. This also is a way of gauging how much you will pay for your student loans.

•   Fees: Some loan fees that could impact your student loan balance include disbursement fees, origination fees, and late payment fees. These charges can contribute to your loan balance.

When you sign into your student loan account, your loan balance is the total amount you currently owe on your loan.


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Factors that Contribute to Increased Loan Balances

Whether you’re in a period of deferment or active repayment, you probably don’t expect your student loan balance to be increasing over time. Unfortunately, there are various factors that can cause your federal student loan balance to go up, including the following:

•   Interest charges: Most student loans come with a grace period, meaning you don’t have to make payments while you’re in school or for six months or so after you graduate. However, most loans, with the exception of Direct Subsidized Loans, start accruing interest right away from the date of disbursement. If you borrowed as a freshman in college and deferred payments the whole time you were in school, your loan balance could significantly increase after four and a half years of non-payment.

•   Loan fees: Student loan fees can also increase your balance. For instance:

◦   Federal student loans come with loan fees of 1.057% or 4.228%, depending on your loan type.

◦   Some private lenders charge such fees as origination fees.

◦   You might also rack up fees if you make late payments or get charged for non-sufficient funds in your bank account. Student loans that go into default can also incur a significant amount in collections fees.

•   Deferment and forbearance: You may postpone payments through deferment or forbearance if you go back to school, encounter financial hardship, or have another qualifying reason. Most loans accrue interest during this time, causing your loan balance to grow. The only exception is Direct Subsidized Loans, which don’t accrue interest during periods of deferment.

•   Interest capitalization: In some circumstances, interest charges capitalize, or get added onto, your principal balance. For example, interest can capitalize on federal student loans if you consolidate them with a Direct Consolidation Loan. Then, you’ll end up paying interest on top of interest, resulting in higher borrowing costs.

•   Repayment plan: If you stay on the standard 10-year plan, you should see your balance go down as you make payments. However, income-driven plans base your monthly payment on your income, not on what will pay your balance off within a certain timeframe. If your monthly payments are low, you could see your balance increase over time (this is known as negative amortization). Note that IDR plans eventually offer loan forgiveness if you still have a balance after 20 or 25 years.

•   Insufficient monthly payments: If you pay a lower amount than your required monthly payments, you’ll also see your balance increase. Plus, you could be subject to late fees, and your loan may go into delinquency and, eventually, default.

Strategies for Managing and Reducing Loan Balances

Student loans are a phase you’re going through, so try not to let them weigh too heavily on you. They are akin to having a mortgage or car loan; you will get out from under this kind of debt.

Now that you’ve learned what increases your total loan balance, consider these strategies for reducing it.

•   Pay on time: Making your monthly payments on time will help you avoid late fees and penalties.

•   Use autopay: By setting up automatic payments from your bank account, you’ll be less likely to miss a payment. Many lenders also offer a 0.25% rate discount for using autopay.

•   Stay on the standard plan, if possible: If you have federal student loans, sticking with the standard 10-year plan will help you pay off your balance in 10 years, assuming you don’t use deferment or forbearance during that time.

•   Make extra payments: Throwing extra payments toward your loan balance, whether on a one-off or monthly basis, can help you pay it down faster and save money on interest.

•   Pursue loan forgiveness: A loan forgiveness program like Public Service Loan Forgiveness (PSLF) or Teacher Loan Forgiveness can help discharge all or part of your student loan balance at once.

Here are some other strategies that may not reduce your federal student loan balance, but could help you manage it better:

•   Apply for income-driven repayment: IDR plans can reduce the money you pay toward student loans each month. Plus, the new SAVE Plan (which replaces the REPAYE Plan) comes with an interest subsidy, meaning the government will cover any unpaid interest charges from month to month.

Paying your federal loans on an IDR plan is also required to qualify for PSLF.

•   Consolidate your loans: Consolidating your loans with a Direct Consolidation Loan can simplify repayment, especially if you owe multiple loans with different due dates to different servicers. Watch out for interest capitalization, though.

•   Refinance your student loans: If you have good credit (or a creditworthy cosigner), you might consider refinancing student loans for a better interest rate and new repayment terms. Some potential advantages of refinancing student loans can include lowering your monthly payment, saving money over the life of the loan, and/or paying off your balance faster.

However, it’s important to note the following: Refinancing federal loans with private ones means you forfeit access to federal benefits and protections, including forgiveness programs. Also, if you refinance for an extended term, you may pay more interest over the life of the loan. For these reasons, refinancing student loans requires careful thought to decide if this is the right next step for you.

💡 Quick Tip: Federal parent PLUS loans might be a good candidate for refinancing to a lower rate.

Long-Term Financial Impact of Growing Loan Balances

A growing student loan balance is not only stressful, but it can also harm your overall financial health.

The amount of debt you owe, for example, makes up 30% of your FICO® credit score. Owing a sizable amount of debt can drag down your score, making it difficult to qualify for new loans or credit cards or get affordable rates. Plus, a high debt load increases your debt-to-income ratio (or DTI), which lenders prefer you to keep under 36%.

To avoid escalating balances, it’s important to develop a repayment plan for your student loans. Take a look at your budget, and review the various repayment plans available to you. Consider what steps you can take to manage your student loan balance and minimize its impact on your daily life as well.

Tips for Preventing Loan Balance Increases

To prevent your loan balance from increasing, make sure you understand the terms and conditions of your loans. If your loan accrues interest right away, consider making full or interest-only payments while you’re in school to prevent your balance from rising during your grace period.

Make a budget and check in with your finances often, so you can choose a repayment approach that works for you. If you haven’t borrowed yet, consider the full array of financing options to reduce your reliance on student loans.

For example, applying for grants and scholarships, accessing a federal Work-Study or other job, or choosing a school with lower tuition costs could help you keep student loan borrowing to a minimum.

Navigating Loan Repayment Options

If you borrowed one of the various types of federal student loans, you have a variety of repayment plans at your fingertips, which can prove helpful when eliminating your loans. These include:

•   Income-Driven Repayment (IDR) Plans, which adjust your monthly payments to a percentage of your discretionary income and eventually provide loan forgiveness

•   Standard Repayment Plan, which involves fixed payments over 10 years

•   Graduated Repayment Plan, which requires lower payments at first that increase over time

•   Extended Repayment Plan, which spans 25 years

You may also qualify for loan forgiveness or repayment assistance if you work in public service. (Postponing loans through deferment or forbearance is an option during financial hardship, though both can cause your loan balance to increase.)

Private student loans don’t come with as many repayment plan options, but your lender may be willing to modify payments if you’re struggling to make your monthly payments. Private loans also aren’t eligible for federal forgiveness, though some states and private organizations offer repayment assistance if you work in a certain field or area.

In addition, it can be valuable to get qualified, reputable credit counseling if you are struggling to pay private student loans. The Consumer Financial Protection Bureau provides more information on this kind of credit counseling .)

Before picking a repayment plan, make sure you understand how it will impact your loan balance and overall costs. A longer plan can reduce your monthly payments, as noted above, but it tends to increase the amount of interest you pay over the loan’s term.

Recommended: Private Student Loan Guide

The Takeaway

Student loan debt, as many Americans know, can be stressful, and seeing your loan balance rise can add to this situation. Understanding what increases your student loan balance (such as your interest rate, loan fees, and repayment plan) can help you avoid paying more than you need to on your debt.

Everyone’s situation is unique, so consider your budget, financial goals, and any plans for loan forgiveness when choosing a repayment strategy that works for you. You may find that changing your federal loan repayment plan or refinancing your existing loans can help you better manage your student loan debt.

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.

Photo credit: iStock/:Olemedia

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

If you’re looking to break into the tech field, a coding bootcamp might help you get there. Coding bootcamps are short-term, intensive programs that teach in-demand coding skills, such as JavaScript, data science, and web and app development.

They may span three to six months to complete, and are usually available in person or online. According to Course Report, bootcamp tuition can range from $7,800 to $21,000, with an average cost of $13,584. Since coding bootcamps are usually not accredited programs like a degree program at a university, they don’t qualify for federal financial aid.

However, there are other options for financing this cost, such as scholarships, loans, and income-share agreements. Here’s a closer look at how to pay for a coding bootcamp so you can launch your career in tech.

Apply for Scholarships from the Bootcamp

Some coding bootcamps offer scholarships to students. Scholarships can be the best form of financial aid, since you can put them directly toward program costs and don’t have to pay them back. Scholarships are typically based on financial need or the student’s background; sometimes, they are based on a student’s aptitude and achievements.

Some specifics:

•   Coding Bootcamp Tech Elevator, for example, offers the Represent Tech Scholarship of $13,175 to historically underrepresented groups to increase access to tech careers. You might qualify for this scholarship if you identify as Black/African American, Hispanic/Latino, Native American/American Indian, female, transgender, or non-binary.

•   You might also find scholarships from private organizations. Code Fellows, Hack Reactor, and V School are just a few groups that offer scholarships for coding bootcamps. Use a scholarship search engine to find additional opportunities.

To boost your chances of winning a coding bootcamp scholarship, apply early and cast a wide net. Make sure to meet all the scholarship requirements, and, if required, put time and effort into crafting a thoughtful personal statement and any other answers to questions on the scholarship application.


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Take Out a Student Loan

If you’re wondering how to pay for coding bootcamp, borrowing a student loan may be another option. While you can’t use a federal student loan to pay for most bootcamps, you may qualify for a private student loan.

Do some research on the basics of student loans and which lenders offer coding bootcamp loans. Find out what the qualification requirements are, such as a minimum credit score or income. Depending on your financial profile, you may need to apply with a creditworthy cosigner to qualify for a loan.

With private student loans, you can often choose between a fixed and variable interest rate, as well as loan terms that span several years. Keep an eye out for any fees that could add to your costs of borrowing, such as an origination fee. Many people have student loans and it can be a challenge to repay them, so you want to be sure you are getting the best deal possible.

A personal loan may also be an option for paying for coding bootcamp. However, interest rates may be higher, and it can be tough to qualify without good credit. It may be worthwhile, though, to see what you might qualify for.

Consider an Income-Share Agreement or Deferred Tuition

Some coding bootcamps let you finance the cost of your program with an income-share agreement (ISA) or deferred tuition. An income-share agreement lets you postpone paying tuition until you get a job. Once you start earning a certain amount of income, you’ll pay a percentage of that income back to the coding bootcamp for a certain period of time.

Deferred tuition works in a similar way. With this option, you don’t have to pay tuition until you’ve finished the program and gotten a job. Unlike an ISA, which involves paying a fixed percentage of your income, a deferred tuition agreement typically has you pay off your tuition bill in monthly installments.

ISAs and deferred tuition arrangements help you attend the program and gain valuable skills without having to pay tuition upfront. However, you can end up paying significantly more with this approach than the initial price tag of the program. Crunch the numbers and see what makes sense for your financial situation.

Recommended: Advantages of Refinancing Student Loans

Attend a Tuition-Guarantee School

If you want reassurance that you’ll get a return on your investment for coding bootcamp, consider a tuition-guarantee program. Bootcamps that offer a tuition guarantee will refund your tuition if you don’t find a relevant job within a certain time frame after finishing the program. Some of these bootcamps also offer deferred tuition, so you won’t have to pay your tuition bill at all if you don’t find suitable employment.

Some bootcamps that offer tuition guarantees include Springboard, Jigsaw Labs, and Bloom Institute of Technology, among others. The criteria for a tuition guarantee can be strict, however. For instance, the program may not allow you to turn down a job offer, and you may be required to apply for a certain number of jobs, meet with a career coach, and go to networking events in order to verify that you are hunting for a position. Plus, you might have to be willing to move if you get a job offer in another city or state.

If you’re attending a bootcamp with a tuition guarantee, make sure to read the fine print of that agreement. You don’t want any surprises after you complete the program.


💡 Quick Tip: When refinancing a student loan, you may shorten or extend the loan term. Shortening your loan term may result in higher monthly payments but significantly less total interest paid. A longer loan term typically results in lower monthly payments but more total interest paid.

FAQs About Paying for Bootcamps

Here are a few common questions about affording coding bootcamps, plus answers, to help you make your decision.

Does FAFSA Cover Coding Bootcamp?

The FAFSA does not cover coding bootcamps, as coding bootcamps are typically not eligible for federal financial aid. Schools that are eligible for federal aid include most accredited public, nonprofit schools, as well as some privately-owned, for-profit post-secondary institutions.

Can You Get a Student Loan for Bootcamp?

While federal student loans are not available, some private lenders offer student loans for coding bootcamp, though not all do. Some coding bootcamps may have a relationship with particular lenders. Whether or not this is the case, it can be wise to research multiple lenders to find a student loan that you can use for coding bootcamp and that also has reasonable rates and terms.

Can You Get Financial Aid for Coding Bootcamp?

You typically cannot qualify for federal financial aid for coding bootcamp. However, you may be able to find scholarships from coding bootcamps or private organizations. Plus, you can explore your options for private student loans, personal loans, income-share agreements, and tuition-guaranteed programs.

Can You Use a 529 Plan to Pay for Coding Bootcamp?

You can only use a 529 plan to pay for coding bootcamp if that program is offered by a school that’s eligible for federal student aid. As most coding bootcamps do not fit this criteria, withdrawals from a 529 plan for a coding bootcamp would likely not count as qualified educational expenses.

Recommended: What Is the Average Student Loan Debt After College?

The Takeaway

If you want to learn web development, make your own app, or become fluent in JavaScript, CSS, or another programming language, a coding bootcamp can teach you those skills and potentially help you in your career. If covering the costs of a coding bootcamp upfront are out of reach, you have various ways to pay for it, including scholarships, student loans, personal loans, and income-share agreements.

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.

Photo credit: iStock/izusek

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

Getting into law school is competitive, especially if you’re aiming for a top-tier school. To make yourself the strongest candidate possible, you may be wondering about the best major for law school.

However, there’s no single path to law school admissions nor one best pre-law major; law students typically have a variety of academic backgrounds. Choosing a major that will equip you with the skills to succeed in law school — as well as help you earn good grades — is more important than selecting a specific pre-law field.

As you consider what undergrad degree to pursue for law school, read on for some help making your decision, including what are the most popular majors among law school students..

Do Law Schools Really Care About Your Major?

While law schools care about your GPA and LSAT scores, they don’t require you to study a specific major as a student. According to the American Bar Association (ABA), students from almost every academic discipline are admitted to law school.

According to the ABA, you may choose to major in subjects that are considered to be traditional preparation for law school, such as history, English, philosophy, political science, economics or business. Another option is to focus your undergraduate studies in areas as diverse as art, music, science and mathematics, computer science, engineering, nursing or education, if that’s what appeals to you.

Law schools want to see that you’ve challenged yourself as an undergraduate student. They also may appreciate relevant professional experience that you gained from an internship or job following graduation.


💡 Quick Tip: Ready to refinance your student loan? You could save thousands.

How Should You Choose Your Pre-Law Major?

Rather than choosing a specific pre-law major, pursue a course of study that you find both interesting and challenging. Taking a range of difficult courses can prepare you for law school and help you develop skills you’ll need as a lawyer.

According to the ABA, some core skills to prioritize developing prior to law school include:

•   Problem solving

•   Critical reading

•   Research, writing, and editing

•   Oral communication and listening

•   Organization

•   Relationship building and collaboration.

By honing these skills through your courses, extracurriculars, and professional experiences, you’ll become a stronger candidate for applying to law school. Having some background knowledge and exposure to the law can also be helpful in your quest for law school admission. You might be able to gain this knowledge from legal courses, an internship, or post-graduation work.

Recommended: Private Student Loans Guide

What Are the Most Popular Majors of Law School Applicants?

While there’s no single best major for getting into law school, some majors are popular among students accepted to law school. Here are some of the most popular pre-law majors, based on 2023 data from the Law School Admission Council (LSAC).

Top 10 Most Popular Pre-Law Majors

Here’s a look at the college major choices that many prospective law school students pursue:

1.    Economics: In 2023, 3,149 economics majors applied to law school, and 80% succeeded in getting in. As an economics major, you’ll likely study the global economic conditions that often play a major role in legal policy and reform.

2.    History: Among the 2,763 history majors who applied to law school in the 2023 enrollment year, 79.7% were accepted. Majoring in history can help give you the background knowledge, research experience, and writing skills that are helpful for law school.

3.    Philosophy: More than three-quarters (77.9%) of the 2,454 philosophy majors who applied to law school were admitted. Whether you focus on ethics, political philosophy, or another area, you’ll gain analytical, argumentation, logic, and communication skills that will benefit you as a future lawyer.

4.    English: English majors also tend to have a good shot of getting into law school. In total, 2,688 English degree holders applied, and 76.6% were admitted. The writing, editing, research, and communication skills you hone as an English major can be useful for the study and practice of law.

5.    Finance: About 76% of the 1,735 finance majors who applied to law school got it in. As a finance major, you might study business economics, accounting, and other related topics.

6.    Political Science: Political science is one of the most popular majors among law school applicants, as 13,659 political science majors applied to law school. Of that group, 75.3% were admitted. Studying political theory and system of government can help prepare you for a career in any specialty of the law.

7.    Psychology: Psychology majors also had a high acceptance rate at 72.9% out of 4,153 applicants. Studying human behavior can be helpful in many types of law.

8.    Arts and Humanities: Among the 2,493 arts and humanities majors who applied to law school, 72.3% were accepted. This large category could include a number of specialties, such as music, art, literature, and languages.

9.    Communications: If you want to study public speaking, journalism, public relations, or another communications field, you may be glad to find out that 69% of the 1,634 communications majors who applied to law school got in.

10.    Sociology: Rounding out the list of popular pre-law majors is sociology, or the study of social theory, policy, religion, human behavior, and related topics. According to the LSAC, 2,007 sociology majors applied to law school and 68.8% gained acceptance.

💡 Quick Tip: Refinancing could be a great choice for working graduates who have higher-interest graduate PLUS loans, Direct Unsubsidized Loans, and/or private loans.

Is Pre-Law a Major?

Pre-law is not a major at some schools, but you may work with a pre-law advisor as an undergraduate student. If you’re interested in going to law school, a pre-law advisor can help you select courses that will teach you about law. They might also have suggestions for paid or unpaid internships and other ways to expose yourself to the legal profession.

If your school does offer a pre-law major, your schedule might involve courses on law and other classes that build your analytical, reasoning, research, and writing skills. However, if you are in another program, you don’t necessarily have to rush to switch majors.

Choosing a challenging major that you enjoy, while also cultivating the skills that will help you succeed in law school, may be a better option than a pre-law major.

Recommended: Basics of Student Loans

The Takeaway

If you’re interested in pursuing a law career, there’s no single college major that you have to choose, since admissions officers accept students from a wide range of academic backgrounds. It can be wise to pick a major that you find interesting and that will also develop skills and knowledge that will help you succeed as you continue your studies.

Along with planning your academic journey, you might start thinking about the best way to finance law school. Grants, scholarships, federal financial aid, and private student loans can help you cover your cost of attendance.

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.

Photo credit: iStock/AzmanL

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

If you think biology or chemistry is the best college major if you want to attend medical school, that’s not necessarily true. Getting into medical school is highly competitive, but you can typically choose any undergraduate major, as long as you meet medical school prerequisites.

The best pre-med major is whichever one aligns with your interests, goals, and aptitudes. It should also be one that won’t stand in the way of earning good grades, as a high GPA will improve your chances of getting accepted to medical school.

Here’s a closer look at the best majors for pre-med students so you can pick the field of study that’s the best fit for you.

What Is the Best Pre-Med Major?

The term pre-med indicates that you plan to apply to medical school after you earn your bachelor’s degree, but it doesn’t require a specific major. Instead, it means taking the necessary medical school prerequisite courses, such as biology and chemistry. Some points to consider:

•   As long as you take those courses, you can major in any field of study, from biology to political science to English. Of course, choosing a major in the sciences can make it easier to fulfill your prerequisite course load. Plus, science courses may equip you with the concepts, vocabulary, and knowledge that will help you do well on the MCAT, the medical school admissions test, and in medical school in the future.

•   If, however, you know you’ll be devoting the rest of your life to the medical field, you may prefer to explore other interests in college, such as the humanities or math. Having a degree in a non-sciences field could also potentially help you stand out among the pool of applicants to medical school, especially if it equips you with a unique perspective or experiences.

Here’s a perspective to consider: In an article for the Association of American Medical Colleges (AAMC), Dr. Leila Amiri, Assistant Dean of Admissions & Recruitment at the University of Illinois College of Medicine, writes, “You don’t have to be a science major to apply to medical school … Medical schools want students who are authentic with genuine interests, so it’s best to major in what you want, not what you think they want.”


💡 Quick Tip: Ready to refinance your student loan? You could save thousands.

Best Pre-Med Major Based on Matriculation Rate

When considering the best majors for medical school, one statistic you can look at is matriculation rate. This lets you know, of incoming students with various majors, how many enrolled as a student. Here’s how the data breaks down by undergraduate major.

As you can see, humanities and math majors have the highest matriculation rates into medical school, while specialized health sciences majors have the lowest. This data doesn’t necessarily mean that humanities and math are the best pre-med majors, though.

There are a lot fewer humanities and math majors applying to medical school in the first place, which could suggest that those who do apply are highly motivated to study for the MCAT and accept admission.

By contrast, health sciences students have various fields open to them and may choose to go to nursing school or another alternative program rather than enrolling in medical school. The cost of medical school and the length and rigor of the program can mean it’s not for everyone.

For these reasons, you may find that the best major for med school is the one that you find most motivating and satisfying.

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Best Pre-Med Major Based on Graduation Rate

Although the AAMC doesn’t share data on graduation rates by pre-med majors, it does reveal that the four-year graduation rate among all medical school students ranges from 81.7% to 84.1%. Six years after matriculating into medical school, the average graduation rate is 96% for non-dual degree MD students.

It’s worth considering how your choice of a major as a pre-med student will impact your chances of graduating on time. The medical school curriculum is science-based and will require you to understand scientific terms and use them in a sophisticated way in papers, projects, and exams.

If you choose a non-sciences undergraduate major, make sure to get up to speed on scientific concepts and terminology through your prerequisite courses, preparation for the MCAT, and other outside studies and experiences. While some sciences could seem like the best major for pre-med, they aren’t the only possibility.

Best Pre-Med Major Based on GPA and MCAt

Your GPA and MCAT play a major role in your chances of admission to medical school. Choosing a concentration where you can get good grades, then, may be a top priority when considering good majors for applying to a graduate school pre-med program.

According to AAMC data, math and statistics majors have the highest average GPA at 3.69. They also score highly on the MCAT, with an average total score of 511.9 (total MCAT scores range from 472 to 528).

Biological sciences and humanities majors follow close behind, with an average GPA of 3.65. Humanities majors beat out biological sciences majors in terms of MCAT scores, with an average score of 509 as compared to 506.3.

As with the other data points in this guide, remember that correlation does not equal causation. In other words, a math or humanities major doesn’t necessarily prepare you to score higher on the MCAT.

Since there are a lot fewer math and humanities applicants to medical school, this group may be more self-selecting and represent some of the most academically strong students. At the same time, this data should reassure you that choosing a non-sciences major won’t necessarily be a roadblock on your journey to medical school.

💡 Quick Tip: Refinancing could be a great choice for working graduates who have higher-interest graduate PLUS loans, Direct Unsubsidized Loans, and/or private loans.

Best Pre-Med Major Based on Number of Applicants

In the 2023 to 2024 school year, 52,577 students applied to medical school, according to the AAMC. Here’s how many of those students majored in the biological sciences, humanities, social sciences, and other majors.

As you can see, more than half of applicants to medical school majored in the biological sciences. Majoring in biology can help you meet your prerequisite course load, as well as prepare you for the types of classes you’ll be taking in medical school.

However, majoring in biology isn’t required, and choosing an alternative major could help you stand out among applicants. When choosing a major, whether you’re aiming for a B.A. or a B.S., consider what will best prepare you to meet your future goals, and commit yourself to earning a strong GPA and MCAT score.

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Takeaway

Are there best majors for med school? While the majority of medical school applicants (57%) major in the biological sciences, that’s not required to get into medical school. While you may have to take some science class prerequisites as an undergraduate, your choice of major is entirely up to you.

As the data shows, choosing a non-science major isn’t necessarily an obstacle, as humanities and math majors had some of the highest GPAs and MCAT scores among all medical school applicants.

When choosing your college major, consider your personal interests and aptitudes, and work closely with your advisor to make sure you’re fulfilling all your major and pre-med requirements.

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The term “black swan event” is widely used in finance today to describe an unanticipated event that severely impacts the financial markets.

The name stems from the discovery of avian black swans by Dutch explorer De Vlamingh while exploring Australia in the late 1600s. Historians credit de Vlamingh with separating the “expected” (i.e., a white swan, which were plentiful) with the “unexpected” (i.e., a black swan, which was a rare sighting).

Writer, professor and former Wall Street trader Nassim Nicholas Taleb popularized the financial theory of “black swan” events in his 2007 book The Black Swan: The Impact of the Highly Improbable.

“A black swan is an unpredictable event that is beyond what is normally expected of a situation and has potentially severe consequences,” Taleb wrote in his book. “Black swan events are characterized by their extreme rarity, their severe impact, and the widespread insistence they were obvious in hindsight.”

Taleb described the occasional — but highly problematic — arrival of black swans on the investment landscape, and outlined what, in his opinion, economists and investors could do to better understand those events and protect assets when they occur.

What Is a Black Swan Event?

According to Taleb, a black swan event is identifiable due to its extreme rarity and to its catastrophic potential damage to life and health, and to economies and markets. Taleb also notes in the book that once a black swan landed and devastated everything in its path, it was obvious in hindsight to recognize the event occurred.

It can be a difficult concept for investors. Who, after all, throughout the history of the stock market, would leave their finances unprotected from a black swan onslaught if they knew the event was imminent? By definition, predicting the arrival of a black swan is largely outside the realm of probability. All anyone needs to know, Taleb maintains, is that black swans occur and investors should not be surprised when they do happen.

Taleb outlines three indicators that signal the arrival of a black swan event. Each is meaningful in truly understanding a black swan scenario.

1.    Black swan events are outliers. No similar and prior event could predict the arrival of a particular black swan.

2.    Black swan events are severe, and they inflict widespread damage. That damage also has a severe impact on economies, cultures, institutions, and on families and communities.

3.    They’re usually seen in the rear view mirror. When black swans occur and eventually dissipate, recriminations take its place. While the specific black swan event wasn’t predicted, observers say the event could have and should have been prevented.

💡 Quick Tip: All investments come with some degree of risk — and some are riskier than others. Before investing online, decide on your investment goals and how much risk you want to take.

Black Swan Event Examples

It’s become common for politicians and investors to call any negative event a “black swan” event, whether or not it meets Tasam’s definition. However, history has no shortage of true black swan events, which led to large, unpredictable market corrections.

The following events are considered some of the most infamous among economists and historians.

The Soviet Union’s Historic Collapse

Economists consider the collapse of the Soviet Union in 1991 a major black swan. Only 10 years earlier, the Russian empire was considered a major global economic and military threat. A decade later, the Soviet Union was no more, significantly shifting the global geopolitical and economic stage.

The 9/11 Terrorist Attacks

In hindsight, the United States might have seen the attacks on the World Trade Center in New York and the Pentagon in Washington, D.C. coming. International terrorism had long been a big risk management issue for the U.S. government, but the severity of the attack left the world stunned – and plunged the U.S. into a serious economic decline. Stocks lost $1.4 trillion in value the week after the attacks.

The Dot-com Bubble

In the late 1990s, investors were indulging in irrational exuberance and nowhere was that more clear than with the nation’s stock market — particularly with white-hot technology stocks. With an army of Internet stocks in the IPO pipeline, overvalued tech stocks plummeted, taking the entire stock market down in the process. The damage was staggering, with the Nasdaq Index losing 78% of its value between March 2000 and October 2002.

The 2008-2009 Financial Crisis

After a series of high-risk derivative bets by major banks, mounting losses in the U.S. mortgage market, and the collapse of Lehman Brothers, the U.S. economy teetered on the edge of disaster — a scenario it would take almost a decade to correct. The unemployment rate doubled to more than 10%, domestic product declined 4.3%, and at its worst point, the S&P 500 plummeted 57%, creating a bear market.

It’s worth noting that although some people have referred to the Covid-19 pandemic as a black swan event, Taleb does not consider it to be one since he feels there was enough historical precedence to foresee it.

Why Do Black Swan Events Happen?

Since black swan events are virtually impossible to predict, there is no concrete answer as to why they happen. The world is complicated, with many different factors — political, financial, environmental, and social, among others — impacting one another and setting off chains of events that could potentially become black swan events in scope and magnitude.

💡 Quick Tip: Distributing your money across a range of assets — also known as diversification — can be beneficial for long-term investors. When you put your eggs in many baskets, it may be beneficial if a single asset class goes down.

Can You Predict a Black Swan Event?

By its very definition, it’s nearly impossible to predict a specific black swan event. This makes it hard to prepare for black swans as you would for other investment risks.

Instead, investors may want to focus on making sure they’re prepared, generally, for the unknown. Here’s how to help do that:

•   Be pragmatic. Investors are better off knowing unanticipated negative events do exist and could arrive on their doorstep at any time. Keep in mind the possibility of black swans and consider building an expectation of stock volatility into your overall portfolio-management strategy.

•   Don’t get bogged down by long-term forecasts. Don’t rely solely on expert predictions or far-off investment outlooks, since unexpected events, including black swans can happen at any time and it’s normal for markets to fluctuate. Instead, consider building a more conservative element into your investment portfolio, one that relies more on protecting your assets, so you’re not tempted to make rash moves during a black swan event. Have a candid conversation with your financial advisor, or educate yourself if you don’t have a financial advisor, about how proper diversification may help build a portfolio that balances the need for performance with the need for protection.

•   Don’t panic when a black swan event happens. As tempting as it might be to try to get out of a market during a black swan event and get back in when it fades away, resist the urge to engage in market timing.

•   Look for opportunities. Putting money into the markets during a black swan event can be difficult and potentially risky, but investing in a down market may yield positive returns over the long-term.

Rather than trying to time the market, consider using a dollar-cost averaging strategy, in which you make regular purchases — even during a black swan event.

The Takeaway

For long-term investors, the prudent stance on black swan events is to acknowledge their existence, build some protection into your investment portfolio to help mitigate potential damage, and be ready to take full advantage of a market upturn once the black swan flies away.

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FAQ

What is a black swan event in recent years?

One of the most recent black swan events was the 2008-2009 financial crisis known as the Great Recession. That’s when a series of high-risk derivative bets by major banks, mounting losses in the U.S. mortgage market, and the collapse of Lehman Brothers, the biggest U.S. bankruptcy ever, pushed the U.S. economy to the edge of disaster.

What was the biggest black swan event?

The Great Depression of 1929 was probably the most infamous black swan event. It started with the U.S. stock market crash in October 1929 and led to a worldwide drop in stock prices. The U.S. economy shrank by 36% between 1929 and 1933, many banks failed, and the U.S. unemployment rate skyrocketed to more than 25%. It was the longest and most severe economic recession in modern history.

What are the attributes that identify a black swan event?

According to Nassim Nicholas Taleb, who popularized the black swan theory, the attributes that identify a black swan event are: 1) black swan events are rare and no similar or prior event could predict them, 2) black swan events are severe and inflict widespread damage, and 3) after the fact, observers say the black swan event could have and should have been prevented.

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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.


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

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