SoFi

No doubt, law school is a major undertaking requiring a lot of hard work as you train for a challenging and rewarding career. And a key part of getting accepted into law school can be scoring well on the Law School Admission Test (LSAT). What’s more, a high LSAT score can potentially increase a student’s scholarship and other funding opportunities to pay for law school.

But getting an LSAT score you’re proud of can take some planning and preparation. To help with that, this guide will break down how to study for the LSAT. In addition, you’ll learn some helpful study tips, test-taking strategies, and important dates to remember.

What Is the LSAT?

The LSAT is a standardized test that many law schools require. It is considered to be a good predictor of how well a student will perform in law school.

The test contains four sections, and test takers typically have about three hours to complete it. The LSAT score range goes from 120 to 180, with the average score currently being approximately 152.

💡 Quick Tip: Get flexible terms and competitive rates when you refinance your student loan with SoFi.

What Does the LSAT Cover?

The LSAT is administered in two distinct sections. One section is a multiple choice exam that is divided into categories including logical reasoning, analytical reasoning, and reading comprehension.

There is also a writing section that is administered separately from the multiple choice portion of the LSAT. Test takers are allotted 35 minutes for each of the four sections required for the exam, and there’s a 10-minute break between sections two and three. These sections are:

•   Logical reasoning, 24 – 26 questions

•   Logic games (aka analytical reasoning), 22 – 24 questions

•   Reading comprehension, 26 – 28 questions

•   Experimental section (typically used to develop questions for future LSATs), 22 – 28 questions

•   Writing. This section is administered separately from the multiple choice portion of the exam, but test takers will still be limited to 35 minutes.

The writing section gives test takers a prompt to articulate a stance on. The written section is available to test takers eight days prior to their testing date.

It can be taken at any time during this testing window and is proctored online using secure software. Although this section is not used to calculate the score, it is still sent to law schools and used to some degree for admissions.

The experimental portion of the exam is also unscored. This section is used internally for measuring the difficulty and effectiveness of LSAT questions. However, test takers will not be aware of which section is experimental.

The LSAT can be taken in person or remotely via a proctored online portal.

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

What Is a Good Score on the LSAT?

As mentioned above, the LSAT scoring system ranges from 120 to 180, with a current average of 152.

What qualifies as a good score will vary depending on your outlook and how competitive the law schools are that you plan on applying to. For instance, if you want to attend one of the top-tier law schools in America (that is, one of the top five programs), you will likely need at least a 170 on the LSAT.


💡 Quick Tip: It might be beneficial to look for a refinancing lender that offers extras. SoFi members, for instance, can qualify for rate discounts and have access to financial advisors, networking events, and more — at no extra cost.

How Do I Prepare for the LSAT?

Preparing for the LSAT can involve time and energy. There are a variety of methods. Some people choose just one and stick with it. Others combine a couple of techniques. There’s not one best way to study for the LSAT; it’s a personal choice.

Preparing for the LSAT has become a full-fledged industry, with a slew of specialized tutors, study guides, and courses offering their services. Among the options:

•   LSAT preptests

•   LSAT prep books

•   Test prep companies and tutoring

•   Official LSAT Prep on Khan Academy

•   Study groups with other students/prospective test takers (such as prelaw students at your college).

Read on to learn more about a couple of the methods.

Taking Official LSAT Prep Tests

How to study for the LSAT? Get organized before you start planning your applications for postgrad education. One popular option to consider is signing up for the LSAT Prep® on LSAC’s LawHub.

LSAC stands for the Law School Admission Council, a nonprofit that supports access, equity, and fairness in law school admissions.

By signing up, you can get access to four full practice tests. If you want further practice, you can purchase a service known as LawHub Advantage. This provides one year of access to more than 75 full Official LSAT PrepTests® for $115.

Recommended: What Is the Maximum Student Loan Amount for a Lifetime?

Tailoring a Study Plan To Your Needs and Goals

Following your first pretest, you now have a starting point to build from to reach your target score. In some cases, you may excel in one section and struggle in another.

Does reading comprehension have you stumped? As part of your LSAT preparation, brushing up on vocabulary and dedicating more time to related practice questions could be a better use of your time if you already have a knack for logic games.

If your GPA is on the lower end of the spectrum, you might want to set a goal for scoring higher than a law school’s median LSAT score to help improve your candidacy.

As noted above, you have an array of options in terms of how to prepare for the LSAT. For some prospective test-takers, paying a tutor or for a prep class can help keep them accountable. For others, the social aspect of joining a study group at their college can be the right fit. And still others may prefer online learning as they work towards law school admission.

Making a LSAT Study Schedule That Works For You

The amount of time you plan to study for the LSAT may be influenced by how much you’d like to improve your score, based on the pretest.

•   A general bare minimum baseline is around 120 hours. Those that are interested in a significant score boost or other factors may require more time.

•   Kaplan Test Prep generally recommends that students spend between 150 and 300 hours, spread out in 20 to 25 hour weekly increments, preparing and studying for the LSAT.

•   Many LSAT takers are also juggling other responsibilities, like finishing an undergraduate degree, working, and taking care of family.

•   Consider all of your responsibilities and demands on your time as you build your study schedule. The goal is to set a schedule that will help you prepare effectively and prevent burnout.

•   Bridging a narrower gap between your initial score and target score may require less study time to achieve, but individuals with higher LSAT scores may be more likely to secure scholarships to help pay for school.

•   If you’re still in undergrad, think about taking an elective course that is geared towards the LSAT, such as logic, to simultaneously help stay on track for graduation and preparing for the LSAT.

Simulating Actual LSAT Testing Conditions

While day-to-day studying can be broken down into shorter segments to work on logic games, vocabulary, and mastering concepts, it may be helpful to take several LSAT sample tests in full.

Creating realistic testing conditions is as simple as following the 35-minute time limit per section, sitting at a desk, and getting up on a Saturday morning to take it. Not only could this approach provide a more accurate LSAT score sampling, but also build endurance and time management skills in a test environment.

In between practice tests, allowing time for review and doing more practice problems can also help gauge growth and identify which section needs the most improvement.

LSAT Test-Taking Tips

As much as the LSAT is about mastering logic and thinking analytically, test takers can also benefit from an in-depth understanding of the LSAT itself. On top of finding and adopting the best ideas for how to prepare for the LSAT, these test-taking tips could be helpful.

Answering Every Question

Unlike the SAT, the LSAT does not deduct points for incorrect answers. That’s right: You’re not penalized for getting something wrong. Since leaving questions blank could potentially result in losing out on coveted points, it may be worth allotting the last 30 seconds of the section to fill in an answer bubble for remaining questions.

If you’re stumped by a difficult question, you might benefit from entering in your best guess and moving on to dedicate time and effort to questions you feel more confident answering.

Keep in mind that once a section ends, you are not permitted to go back and answer questions or correct responses.

Using Process of Elimination

Multiple-choice questions on the LSAT can contain similar answers that can trip up test takers, especially when rushing.

Given the test’s emphasis on logic and analytical thinking, employing a process of elimination strategy can help get rid of flawed answers one by one and avoid choosing a well-crafted, misleading answer.

Relax… It’s Okay to Retake the LSAT

Given the importance the LSAT plays in law school acceptance, it may come as no surprise that many people retake the test.

One benchmark study found that, at a given test administration, about 26% were second-time test takers. Another finding was that second-timers in a given year typically raise their score by two or three points. (Keep in mind that law school admission committees will likely receive all of your test scores.)

If you’re worried about your nerves getting the best of you, planning to take the LSAT well-ahead of admission deadlines could help alleviate some stress since you’ll have another chance or two to retest if needed.

There are limits to the number of times the LSAT can be taken within certain timeframes, including five times since 2018 and seven tests in a lifetime. It’s possible to cancel test scores if you are unhappy with how you did, but canceled scores will count towards the totals mentioned here.

Important LSAT Dates

When figuring out how to start studying for the LSAT, it might be helpful to map out a timeline of test dates and law school admission schedules. There are multiple options and locations for testing dates, as well as law school application deadlines to be aware of.

If you’re hoping to pursue your J.D. within a year or two, it may be easier to work backwards from when you actually need to apply to law school. Deadlines for law school applications can vary, with many regular-decision dates falling between February and March and early-decision ones in November or December.

Many experts recommend taking the LSAT in June so there’s time to retake it in the fall, if needed. Scores are generally sent three weeks after the exam on a pre-specified release date. The current schedule of 2024 test dates runs from January through June; for updates, visit LSAC’s site.

Paying for Law School

Education is an investment — both in time and money. Typically, law school spans three full-time academic years, and the rigorous schedule can make it challenging to work outside of summer internships. Here’s some important information about paying for law school:

•   While the payoff can be considerable for legal professionals, the upfront cost can be a heavy lift. When thinking about how to pay for law school, know this: Using the most recent data, the average total cost of law school is $220,335, according to the Education Data Initiative. The average in-state tuition for public universities was $9,610, while the average for private universities reached $53,034.

•   When law school scholarships and financial aid are not enough, students can take out federal or private student loans to help pay the difference for law school. Coming up with a plan to pay for law school early could help put you on track to tackling law school debt and focusing on your budding law career.

•   Students or graduates still paying for their law school (and potentially undergraduate) student loans could opt to refinance and combine payment under one loan. This may make payments simpler and/or more affordable, but it’s important to note that if you refinance for an extended term, you may pay more interest over the life of the loan. In addition, refinancing federal student loans means forfeiting federal borrower benefits and protections, so it won’t be the right choice for everyone.

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.

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.

SOSL1123005

Millions of employees work from home at least part time. They’ve carved out dedicated office space and plopped laptops on kitchen counters and in closets. They almost never can declare the home office tax deduction.

Millions of self-employed people have also created workspaces at home. If they use that part of their home exclusively and regularly for conducting business, and the home is the principal place of business, they may be able to deduct office-related business expenses.

Why the difference? The Tax Cuts and Jobs Act nearly doubled the standard deduction and eliminated many itemized deductions, including unreimbursed employee expenses, from 2018 to 2025.

Read on to learn whether or not you may qualify for the home office tax deduction.

What Is a Home Office Tax Deduction?

The home office tax deduction is available to self-employed people — independent contractors, sole proprietors, members of a business partnership, freelancers, and gig workers who require an office — who use part of their home, owned or rented, as a place of work regularly and exclusively.

“Home” can be a house, condo, apartment, mobile home, boat, or similar property, and includes structures on the property like an unattached garage, studio, barn, or greenhouse.

Eligible taxpayers can take a simplified deduction of up to $1,500 or go the detailed route and deduct office furniture, homeowners or renters insurance, internet, utilities needed for the business, repairs, and maintenance that affect the office, home depreciation, rent, mortgage interest, and many other things from taxable income.

After all, reducing taxable income is particularly important for the highly taxed self-employed (viewed by the IRS as both employee and employer.)

An employee who also has a side gig — like driving for Uber or dog walking — can deduct certain expenses from their self-employment income if they run the business out of their home.


💡 Quick Tip: You deserve a more zen mortgage. Look for a mortgage lender who’s dedicated to closing your loan on time.

Am I Eligible for a Home Office Deduction?

People who receive a W-2 form from their employer almost never qualify.

In general, a self-employed person who receives one or more IRS 1099-NEC tax forms may take the home office tax deduction.

Both of these must apply:

•   You use the business part of your home exclusively and regularly for business purposes.

•   The business part of your home is your main place of business; the place where you deal with patients or customers in the normal course of your business; or a structure not attached to the home that you use in connection with your business.

Regular and Exclusive Use

You must use a portion of the home for business needs on a regular basis. The real trick is to meet the IRS standard for the exclusive use of a home office. An at-home worker may spend nine hours a day, five days a week in a home office, yet is not supposed to take the home office deduction if the space is shared with a spouse or doubles as a gym or a child’s homework spot.

There are two exceptions to the IRS exclusive-use rules for home businesses.

•   Daycare providers. Individuals offering daycare from home likely qualify for the home office tax deduction. Part of the home is used as a daycare facility for children, people with physical or mental disabilities, or people who are 65 and older. (If you run a daycare, your business-use percentage must be reduced because the space is available for personal use part of the time.)

•   Storage of business products. If a home-based businessperson uses a portion of the home to store inventory or product samples, it’s OK to use that area for personal use as well. The home must be the only fixed location of the business or trade.

Principal Place of Business

Part of your home may qualify as your principal place of business “if you use it for the administrative or management activities of your trade or business and have no other fixed location where you conduct substantial administrative or management activities for that trade or business,” the IRS says.

Can You Qualify for a Home Office Deduction as an Employee?

Employees may only take the deduction if they maintain a home office for the “convenience of their employer,” meaning the home office is a condition of employment, necessary for the employer’s business to function, or needed to allow the employee to perform their duties.

Because your home must be your principal place of business in order to take the home office deduction, most employees who work part-time at home won’t qualify.

Can I Run More Than One Business in the Same Space?

If you have more than one Schedule C business, you can claim the same home office space, but you’ll have to split the expenses between the businesses. You cannot deduct the home office expenses multiple times.

How to Calculate the Home Office Tax Deduction

The deduction is most commonly based on square footage or the percentage of a home used as the home office.

The Simplified Method

If your office is 300 square feet or under, Uncle Sam allows you to deduct $5 per square foot, up to 300 square feet, for a maximum $1,500 tax deduction.

The Real Expense Method

The regular method looks at the percentage of the home used for business purposes. If your home office is 480 square feet and the home has 2,400 square feet, the percentage used for the home office tax deduction is 20%.

You may deduct 20% of indirect business expenses like utilities, cellphone, cable, homeowners or renters insurance, property tax, HOA fees, and cleaning service.

Direct expenses for the home office, such as painting, furniture, office supplies, and repairs, are 100% deductible.


💡 Quick Tip: A major home purchase may mean a jumbo loan, but it doesn’t have to mean a jumbo down payment. Apply for a jumbo mortgage with SoFi, and you could put as little as 10% down.

Things to Look Out for Before Applying for the Home Office Tax Deduction

If you’re an employee with side gigs or just self-employed, it might be a good idea to consult a tax pro when filing.

To avoid raising red flags, you may want to make sure your business expenses are reasonable, accurate, and well-documented. The IRS uses both automated and manual methods of examining self-employed workers’ tax returns. And in 2020, the agency created a Fraud Enforcement Office, part of its Small Business/Self-Employed Division. Among the filers in its sights are self-employed people.

The IRS conducts audits by mail or in-person to review records. The interview may be at an IRS office or at the tax filer’s home.

A final note: Taking all the deductions you’re entitled to and being informed about the different types of taxes is smart.

If you’re self-employed, you generally must pay a Social Security and Medicare tax of 15.3% of net earnings. Wage-earners pay 7.65% of gross income into Social Security and Medicare via payroll-tax withholding, matched by the employer.

So self-employed people often feel the burn at tax time. It’s smart to look for deductions and write off those home business expenses if you’re able to.

To shelter income and invest for retirement, you might want to set up a SEP IRA if you’re a self-employed professional with no employees.

Recommended: First-Time Homebuyers Guide

The Takeaway

If you’re an employee working remotely, the home office tax deduction is not for you, right now, anyway.

If you’re self-employed, the home office deduction could be helpful at tax time. To qualify for the home office deduction, you must use a portion of your house, apartment, or condominium (or any other type of home) for your business on a regular basis, and it generally must be the principal location of your business. This is something to keep in mind if you’re in the market for a new home, since writing off a portion of your home expenses could help offset some of the costs of homeownership.

Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.

FAQ

How much can I get written off for my home office?

Using the simplified method of calculating the home office deduction, you can write off up to $1,500. Using the regular method, you’ll need to determine the percentage of your home being used for business purposes. You may then be able to deduct that percentage of certain indirect expenses (like utilities, cellphone, cable, homeowners or renters insurance, property tax, HOA fees, and cleaning services). Direct expenses for the home office, such as painting, furniture, office supplies, and repairs, are generally 100% deductible.

Can I make a claim for a home office tax deduction without receipts?

The simplified method does not require detailed records of expenses. If using the regular method, you should be prepared to defend your deduction in the event of an IRS audit.

The IRS says the law requires you to keep all records you used to prepare your tax return for at least three years from the date the return was filed.

What qualifies as a home office deduction?

Things like insurance, utilities, repairs, maintenance, equipment, and rent may qualify as tax deductions.

Photo credit: iStock/Marija Zlatkovic

SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.

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.

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.

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.

SOHL0324001

If you, like many students, have taken out loans, it’s important to know the answer to, “Do student loans accrue interest while you are still in school?” The answer is often yes. The main exception to this rule is for those who hold Federal Direct Unsubsidized Loans. While a student is taking classes, the interest on these loans is covered by the US government.

It can be important to understand exactly what type of student loan you have to make sure you understand the terms of the loan and when interest accrues. This, as you might guess, impacts how much you will be paying back.

Read on for a guide to how student loan interest works while you are still in school.

Understanding How Federal Student Loan Interest Works

Do federal student loans accrue interest in school? In many, but not all, cases, the answer is yes. The first step of understanding how student loan interest works is to know what type of student loan you have exactly, because interest may accrue differently, depending on the type of loan it is.

Subsidized vs. Unsubsidized Loans

Federal student loans may be subsidized or unsubsidized. The accrued interest on Direct Subsidized loans is covered by the government while a student is enrolled at least half-time. Direct Subsidized loans are only available to undergraduate students.

For Direct Unsubsidized Loans, students are responsible for paying the interest that accrues on their student loans. Interest begins accruing as soon as the loan is disbursed, or paid out to the borrower.

You won’t be required to make payments while in-school, but be aware that if you don’t, you may graduate with a higher balance than when you started. That’s because the accrued interest is capitalized on the original balance of the loan. Direct Unsubsidized Loans are available to undergraduate and graduate students.

Direct PLUS Loans are available for graduate students or their parents. The interest on these loans begins accruing when the loan is disbursed and continues accruing while the student is enrolled in school.

How Does the Grace Period Impact Interest Accrual?

Both Direct Unsubsidized and Subsidized Loans have a six-month grace period after the borrower graduates. On subsidized loans, the borrower is not responsible for paying interest during the grace period. On an unsubsidized loan, interest continues to accrue during the six-month grace period.

Direct PLUS Loans do not have a grace period. Graduate students do receive an automatic deferment after graduation and interest does accrue during this time period.

How Does Capitalized Interest Work?

While payments are not required on most federal student loans while the student is enrolled in school, students with Direct Unsubsidized or PLUS loans have the option of making interest-only payments. This can be helpful because, as mentioned previously, after the grace period, and at the end of periods of deferment or forbearance, the accrued interest is capitalized on the loan.

Capitalized interest on student loans occurs when the accrued interest is added to the principal balance of the loan (the amount that was originally borrowed). This becomes the new balance of the loan, and interest will continue to accrue based on that new balance.

Think of all that accumulating interest like a snowball rolling down a mountain. You might be able to stay ahead of it for a while, but it also might catch up with you.


💡 Quick Tip: Enjoy no hidden fees and special member benefits when you refinance student loans with SoFi.

Understanding How Private Student Loan Interest Works

When thinking about private vs. federal student loans, know that private loans are not subject to the same rules as federal student loans. They’re offered by private companies, and each lender will likely have its own terms and conditions.

Wondering, “Do private student loans accrue interest while still in school?” Yes, the majority of private student loans will accrue interest while the student is enrolled in school. Some lenders may allow borrowers to defer payments until after they graduate. In this case, the accrued interest from while the borrower was in school will likely be capitalized on the loan. To be sure of the terms on your loan, review the loan agreement or check in with the lender directly.

Keep in mind that, as mentioned, private student loans don’t always offer the same benefits or borrower protections (things like income-driven repayment options) that federal loans do. Because of this, they are generally considered after all other sources of financing, including federal student loans, have been exhausted.

This table provides an overview of how interest accrues on the various types of loans discussed in this article.

Recommended: Tips to Lower Your Student Loan Payments

Can You Minimize Student Loan Interest Accrual While in School?

One way to limit accrued interest is to limit what you borrow in the first place. When it comes to student loans, aim to borrow only what you really need.

Work-Study or a Part-Time Job

A work-study, for those eligible, or part-time job in another way to help take the sting out of student loan payments. You may have the best intentions when it comes to getting a job to help make those loan payments, but it can be tough to manage when you’re busy with academics, extracurriculars, internships, and more.

Make Interest Only Payments

Do you need to pay student loans while in school? That isn’t likely to be a requirement, but as mentioned earlier, many loans allow borrowers to make interest-only payments while they’re in school. While this won’t really eliminate accrued interest, it may help minimize the amount of interest paid over the life of the loan, because the interest is paid as it accrues instead of being capitalized onto the loan.

Recommended: Are Student Loans Tax-Deductible?

The Takeaway

Interest on many types of student loans accrues while the student is in school. Federal Direct Subsidized Loans are an exception, as the accrued interest is paid for by the government while the student is enrolled in school and during the grace period.

Generally speaking, interest other types of student loans, including Direct Unsubsidized and PLUS Loans, begin accruing interest when they are disbursed, and continue accruing interest while the student is enrolled. For private student loans, each lender will likely have its own terms and conditions. The surest way to confirm how interest accrues on a private student loan is to check directly with the lender.

Depending on your situation, student loan refinancing might lower your monthly payment. However, it’s important to note that if you refinance for an extended term, you may pay more interest over the life of the loan. Also, when you refinance federal loans, you forfeit federal loan protections. Refinancing may not be the right decision depending on your particular needs.

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.

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.

SOSL1123004

When you die, your credit card debt does not die with you. Rather, any remaining debt you have must be paid before assets are distributed to your heirs or surviving spouse. The debt is subtracted from your estate, which is the sum of your assets. If your debts exceed your assets, then your estate is considered insolvent. That could mean your loved ones don’t receive any funds at all.

Read on to learn what happens to credit card debt after death, including who is responsible for credit card debt after death and what steps you should take after a cardholder dies.

Who Is Responsible for Credit Card Debt When You Die

An unfortunate part of understanding how credit cards work is grasping who is responsible for credit card debt after death. Typically, relatives aren’t responsible for paying a family member’s credit card debts upon death.

However, you may be responsible for paying your deceased loved one’s credit card debt if you cosigned for a credit card, given the responsibility cosigning carries. Joint account holders also can be held responsible for credit card debt left after death since both account holders are equally responsible for paying the credit card balance.

Authorized users, on the other hand, are not usually responsible for the outstanding balance on a deceased person’s account — unless, that is, you live in a community property state. These states, which typically hold spouses responsible for each other’s debts, include:

•   Arizona

•   California

•   Idaho

•   Louisiana

•   Nevada

•   New Mexico

•   Texas

•   Washington

•   Wisconsin

If you live in one of these states, you may have to pay your spouse’s credit card debts if they die, even if you were only an authorized user on their card.

Next Steps After a Cardholder Dies

If you have a relative or loved one who recently passed and left outstanding credit card debt, theses are the steps you should take to make sure their debt is properly handled:

1.    Ask for multiple copies of the death certificate. You’ll likely need to send official copies to various credit card companies and life insurance companies. It may also be needed for other estate purposes.

2.    If you’re an authorized user on the deceased person’s credit card, stop using that card upon their death. Using a credit card after the primary cardholder’s death is considered fraud. If you make any payments on the authorized user card, the credit company will accept the credit card payments and can claim that you have taken responsibility for the entire balance of the card. If you don’t have another credit card of your own, you may want to explore how to apply for a credit card.

3.    Make a list of the deceased person’s financial accounts, including their credit card accounts. A spouse or executor of the deceased can request a copy of the person’s credit report to check for all accounts. This way, you’ll know which accounts you’ll need to handle.

4.    Notify the credit card companies of the death. You’ll want to make sure to close any accounts that were in the deceased person’s name.

5.    Alert the three consumer credit bureaus of the death. You’ll also want to put a credit freeze on the person’s account. This can help prevent identity theft in the deceased’s name. Only the spouse or executor of the estate is authorized to report this information to the credit bureaus, which include Experian, TransUnion, and Equifax.

6.    Continue to make payments on any jointly held credit cards that you aren’t closing. Making the credit card minimum payment can help prevent a negative effect on your credit score.

Assets That Are Protected From Creditors

If a deceased relative’s credit card debt exceeds their total assets, don’t panic. In the instance the estate doesn’t have enough money to cover all of the deceased’s debt, state law will determine which debt is the highest priority.

Credit cards are considered unsecured loans, which are lower in priority for loan repayments after death. Mortgages and car loans are secured by collateral, so they are considered higher priority. Often, unsecured debt may not even get paid.

It’s also important to know that some types of assets are protected from creditors in the event of death. This includes retirement accounts, life insurance proceeds, assets held in a living trust, and brokerage accounts. Homes may also be protected, though this will depend on state law and how title to the property is held.

Remember: Credit card companies can’t legally ask you to pay credit card debts that aren’t your responsibility.

Credit Card Liability After Death

The best way to keep your loved ones from having to deal with your credit card debt is to responsibly manage your credit card balances while you’re alive. For instance, you can avoid spending up to your credit card limit each month to make your balance easier to pay off.

You can also take the time to look for a good APR for a credit card to minimize the interest that racks up if you can’t pay off your balance in full each month.

Knowing your credit card debt won’t disappear after you die may also make you think twice before making a charge. For instance, while you can technically pay taxes with a credit card, it might not be worth it if it will just add interest to the amount you owe.

If a loved one has recently passed and you shared accounts in any way, keep an eye on your own credit reports and credit card statements. Make sure to dispute credit card charges that you think are incorrect.

How to Avoid Passing Down Debt Problems

If you want to avoid passing down the issue of sorting out your debt, you can have an attorney create a will or trust. A will or trust will offer your loved ones guidance on where you’d like your assets to go after your death, and, in some cases, could allow them to bypass the sometimes costly and time-consuming process of probate.

However, making a will or trust won’t necessarily stop debt collectors from contacting your family members after your death — even if those family members aren’t responsible for the debt. Keep in mind that the Fair Debt Collection Practices Act does prohibit deceptive and abusive contact by debt collectors, so your loved ones will have some legal protections from excessive collections efforts.

Still, it’s important to share as much information as you can about your debt with family members so that they’re aware of your finances after you are no longer there. You don’t need to share information as personal as the CVV number on your credit card or your credit card expiration date, but it is helpful for your loved ones to have an idea of how many accounts you have and what the general state of them is.

The Takeaway

Unfortunately, you don’t get automatic credit card debt forgiveness after death. While your loved ones generally won’t be held responsible for your debt — unless you have a joint account, served as a cosigner, or live in a community property state — your debts are still deducted from your estate. If you want to avoid leaving your loved ones with a mountain of debt, the most important step you can take is to responsibly manage your credit cards while you’re still here.

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

Do I have to pay my deceased parent’s credit card debt?

You don’t have to pay your deceased parent’s credit card debt unless you were a cosigner on their credit card. If you were an authorized user on your parent’s credit card, you are not responsible for their debt.

Do credit card companies know when someone dies?

You should notify the credit card company when your close relative dies to close any accounts in their name. You should also notify the three consumer credit bureaus of the death to put a credit freeze on the person’s account to prevent identity theft.

Can credit card companies take your house after death?

Homes are usually protected from creditors in the event of death, though this does depend on state law and how the title of the property is held. In general, however, credit card companies usually can’t take your house after death.

Is my spouse responsible for my credit card debt?

Your spouse is not responsible for your credit card debt unless they were a cosigner on your credit card. If they were an authorized user on your credit card, they generally are not responsible for your credit card debt unless you live in a community property state (California, Arizona, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin).

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.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

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.

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.

Photo credit: iStock/PixelsEffect
SOCC0224001

To help boost the chances that you’ll get into the college of your dreams, it’s important to write a great college essay. The big question is, what should you write about?

When brainstorming ideas for topics, keep in mind that you want your college essay to make you look good and also help you stand out from other applicants. Toward that end, it helps to know what not to write about in a college essay.

Themes that consistently make the “worst college essay topics” list include cliches, stories that college admissions officers have read some version of countless times before, and any topic that reflects negatively on your personality.

Here’s a closer look at the college essay topics you’ll want to avoid, plus insights into the type of writing that can give you a leg up in the admissions process.

What Do Colleges Look for in Essays?

Colleges are looking for several things in your admissions essay. They want you to demonstrate strong writing, authenticity, and a unique perspective. Admissions officers are also looking to get a sense of who you are as an individual so they can better determine whether you’re a good fit for the rigors of academic life and school culture.

A good essay demonstrates this through vivid storytelling that illustrates your points rather than simply telling the reader what you want them to think and how you want them to feel.

💡 Quick Tip: You can fund your education with a low-rate, no-fee private student loan that covers all school-certified costs.

Why Should You Avoid Certain Topics for College Entrance Essays?

Generally, you want to avoid essay topics that could give admissions readers the wrong impression of who you are. It’s also wise to steer clear of essay topics that are cliches. A cliche is an idea (or phrase) that is overused and, as a result, has lost its meaning and potency. At best, cliche college essays can make you look unoriginal, and at worst they can make you look lazy.

Rather than lean on cliches, you’ll want to dig deep into what makes you and your thoughts original. Ideally, you want to choose an essay topic that demonstrates vulnerability and reveals your unique perspective and voice.

Recommended: Financial Benefits of Going to a Community College

College Essay Topics to Avoid

What follows are some topics you may want to avoid when choosing what to write about in your college essay.

Restating Your Resume

Your college application already includes school transcripts and information about your activities and awards. Rehashing this information is unlikely to translate into a compelling narrative, and it doesn’t teach college admissions officers anything new about you.

If you want to write about a specific extracurricular activity, consider choosing just one, and exploring it in depth to give your reader a better sense of who you are as a person.

Sports Challenges

Sports challenge stories tend to fall into the cliche category of college essay topics. They’re overused, and they tend to be predictable. For example, you may have scored a goal at the last moment, pulling ahead against all odds.

That’s not to say you can’t write about sports in your essay. Original and authentic sports stories that steer clear of cliches can be highly successful. For example, you could focus on how the skills you learned as part of a team translated to another unrelated challenge.

Your Big Performance

As with sports challenges, stories about big performances — music solos, starring roles in plays, speeches — often follow similar plots. The performance goes well, or poorly, and the writer discovers the value of preparation or how they had the inner strength to move past a major disappointment. However, you can use a performance story to tell an original and engaging tale.

Recommended: Importance of Joining a High School Club

Your Hero

It may be tempting to write about a person who has inspired you. But college essays are short. And if you’re not careful, you may spend too much time writing about someone other than the person who should be the star of the essay — you. Remember admissions officers want to know what makes you stand out, not what makes your heroes special.

Romantic Heartbreak

Breaking up is hard to do — even more so when it’s young love. Yet the trials and tribulations of teen romance may not be the best topic for a college essay. Much like writing about your heroes, you may pay too much lip service to someone else, while neglecting to convey enough of your own story.

Illegal or Unethical Activities

If you’ve ever gotten tangled in ethically questionable or illegal activities, your college essay is generally not the right time to mention them, even if it makes for a great story. If you do, even in passing, admissions may worry about the types of behavior you’ll engage in once on campus.

Service Trips

A trip to help serve others in the U.S. or abroad might seem like a great topic for a college essay. Unfortunately, that means a lot of students write about these opportunities, making it one of the most common essay topics. What’s more, these essays tend to follow the same beats. As a result, choosing this topic doesn’t always help you stand apart from the crowd.

Recommended: How Many Colleges Should I Apply To?

Things That Happened Before High School

Writing about events that took place before high school may not give admissions a good sense of what you are like now. The kid who won a spelling bee in seventh grade may bear little resemblance to the high school senior applying for schools. Consider writing about recent events, or be careful to relate events from your past to high school and your current self.

Moving to a Different Part of the Country

Moving is always challenging. But countless students move across the country and switch schools each year. As a result, essays that focus on moves are relatively common. If you decide to write about a move, shift the focus of the essay to how it changed you as a person, pushing you to pursue new interests. It could work if it’s not a story college admissions officers haven’t heard many times before.

Recommended: Important College Application Deadlines

Immigrant Stories

If you’ve moved from abroad, be aware that many students in the U.S. have immigrant stories. As a result, stories about making the move, struggling to learn new languages, and trying to fit into a new culture are common essay topics. If you choose to write about this topic, consider narrowing your focus on one aspect of your story that illustrates how you’ve grown and changed.

Recommended: Can International Students Get Student Loans?

How You Were Challenged by a Bad Grade

How you overcame a challenge is often one of the essay prompts on the Common App. You might think that writing about what you did after getting a low grade fits the bill, but it’s generally not a good idea to delve into this topic. For one, it highlights the fact that you got a bad grade to admissions’ officers. Another problem is that other applicants will likely have more serious hardships and challenges they have had to overcome, which could make your essay topic appear less consequential.

Tragedies

In and of themselves, tragedies are not necessarily a bad topic for college essays. However, it can be easy to fall into cliched writing as you tell these stories. Hackneyed themes and phrases include “life is short,” “time heals all wounds,” and “seize the day.” If you write about a tragedy you have known or experienced, be sure to make it personal, honest, and specific to you.

Sensitive Topics

Generally speaking, if a topic is one you would avoid bringing up at the holiday dinner table, you’ll likely want to avoid it in your essay as well. It can be tricky to discuss things like politics or religion in a way that is original and personal to your experience. What’s more, essays on these topics may trigger unconscious bias in the admissions staff reading your essay, which can color how they view you and your fit at the school.

Recommended: How to Get Involved on Campus in College

Your Privilege

If you’ve been lucky enough to grow up with a lot of resources at your disposal, discussing them may not be a strong strategy. It can make it seem like you haven’t had to work through any challenges. Instead you might consider essay topics that demonstrate vulnerability and grit in the face of adversity.

Attempts to Break the Essay Mold

You may be tempted to try to make yourself stand out with a creative essay that breaks traditional forms. For example, you might try to write a poem instead. You’re likely not the only one who has had this idea, and you may rob yourself of the chance to demonstrate your creativity through prose. The traditional essay is what admissions has asked for, and it may give you the most opportunity to demonstrate who you really are.


💡 Quick Tip: Need a private student loan to cover your school bills? Because approval for a private student loan is based on creditworthiness, a cosigner may help a student get loan approval and a lower rate.

The Takeaway

The best college essays tend to focus on specific moments when a student has learned something important, changed, and grown as a person. Ideally, you want your college essay to give readers a sense of your character, and how you may continue to change as you pursue your academic career. Avoiding cliches and other tricky topics can help you successfully reveal your true self.

If you’ve exhausted all federal student aid options, no-fee private student loans from SoFi can help you pay for school. The online application process is easy, and you can see rates and terms in just minutes. Repayment plans are flexible, so you can find an option that works for your financial plan and budget.

FAQ

What are the most common essay topics?

Some of the most common essay topics include:

•   A meaningful interest or talent

•   Something meaningful in your background/identity

•   Lessons you’ve learned from obstacles you’ve encountered

•   Times when your beliefs have been challenged

•   Something someone has done for you that’s made you grateful in a surprising way

What Do College Essays Look for?

Admissions offers are looking for essays that demonstrate strong writing skills, original thinking, and a unique perspective that sets you apart from other applicants.

How Much Does Your College Essay Matter?

Your college essay generally accounts for about 25% of your application. In terms of weight, it’s less important than your extracurriculars (30%) but more important than your grades and coursework (20%), test scores (15%), and recommendations/interviews (10%).

Photo credit: iStock/Delmaine Donson

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

SoFi Private Student Loans
Please borrow responsibly. SoFi Private Student Loans are not a substitute for federal loans, grants, and work-study programs. You should exhaust all your federal student aid options before you consider any private loans, including ours. Read our FAQs. SoFi Private Student Loans are subject to program terms and restrictions, and applicants must meet SoFi’s eligibility and underwriting requirements. See SoFi.com/eligibility-criteria for more information. To view payment examples, click here. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change.

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.

SOIS0124013