Credit Card Statement Balance vs Current Balance

A credit card statement balance reflects your transactions (and the amount owed) during a billing cycle, while your current balance reveals your real-time activity and how much you may owe at a given moment.

When you buy with credit, it’s like taking out a short-term loan to make a purchase. If you’re putting charges on your credit card throughout the month, the value of that loan — your “current balance” — fluctuates. When your billing cycle ends and the amount due is tallied, that equals your statement balance.

Learn more about how these two numbers can differ, along with a few tips for paying down your credit cards.

Statement Balance vs Current Balance

Each credit card issuer may have a slightly different method of presenting and even calculating the numbers on your monthly statement, whether you get a hard copy or check it online or in your card’s app. Still, you will likely see one number called the statement balance and another called the current balance.

•   The statement balance means all transactions during a designated period, called a billing cycle. If a billing cycle covers one month and starts on the 15th of each month, this statement balance will include all of the activity on an account between, say, January 15 and February 15, in addition to any previously unpaid balances. Until the close of the next billing cycle, the statement balance will remain unchanged.

•   ‘Your current balance means the running total of all transactions on your account. It changes every time you swipe your card to pick up Chinese takeout or return a T-shirt that didn’t fit right.

To understand the interplay between the statement balance vs. the current balance, consider this example:

•   ‘On February 15, the statement balance is $1,000, meaning that the total charges between January 15 and February 15 add up to $1,000.

•   ‘Two days later, you make a $50 charge to the card. Your current balance will reflect $1,050 while the statement balance remains the same.

In this case, the current balance is higher than the statement balance. The reverse can also be true, and the current balance can potentially reflect a smaller number than the statement balance.

Recommended: Personal Loan vs Credit Cards

What to Know About Paying Off Your Credit Card

As each billing cycle closes, you will be provided with a statement balance. You will also likely be provided with a due date. At the time you make a payment, you may decide to pay off the statement balance, the current balance, the minimum payment, or some other amount of your choosing.

Paying the Statement Balance

If you regularly pay your statement balance in full, by its due date, you likely won’t be subject to any interest charges. Most credit card companies charge interest only on any amount of the statement balance that is not paid off in full.

The period between your statement date and the due date is called the grace period. During this period, you may not accumulate interest on any balances. It’s worth mentioning that not every credit card has a grace period. It’s also possible to lose a grace period by missing payments or making them late. If you have any questions about whether your card has a grace period, contact your credit card company.

Paying the Current Balance

If you’re using your credit card regularly, it is possible that you will use your card during the grace period. This will increase your current balance. At the time you make your payment, you will likely have the option to pay the full current balance.

If you have a grace period, paying the current balance is not necessary in order to avoid interest payments. But paying your current balance in full by the due date can have other benefits. For example, this move could improve your credit utilization ratio, which is factored into credit scores.

Paying the Minimum Monthly Payment

Next, you can pay just the minimum monthly payment. Generally, this is the lowest possible amount that you can pay each month while remaining in good standing with your credit card company — it is also the most expensive. Typically, the minimum payment will be an amount that covers the interest accrued during the billing cycle and some of the principal balance.

Making only the minimum payments is a slow and expensive way to pay down credit card debt. To understand how much you’re paying in interest, you can use a credit card interest calculator. Although minimum monthly payments are not a fast way to get rid of credit card debt, making them is important. Otherwise, you risk being dinged with late fees.

Missing or making a payment late can also have a negative impact on your credit score.So, if the minimum payment is all you can swing right now, it’s okay. Just try to avoid additional charges on your card.

Making a Payment of Your Choice

Your last option is to make payments that are larger than the minimum monthly payment but are not equal to the statement balance or the current balance. That’s okay, too. You’ll potentially be charged interest on remaining balances, but you’re likely getting closer to paying them off. Keep working on getting those balances lowered.

Recommended: Credit Card Closing Date vs Due Date

Your Credit Utilization Ratio

The balance you currently carry on your credit card can impact your credit utilization ratio. Credit utilization measures how much of your available credit you’re using at any given time.

This figure is one of a handful of measures that are used to determine your credit score — and it has a big impact. Credit utilization can make up 30% of your overall score, according to FICO® Score.

Not every credit card reports account balances to the consumer credit bureaus in the same way or on the same day. Also, the reported number is not necessarily the statement balance. It could be the current balance on your card, pulled at any time throughout the billing cycle. Again, it may be worth checking with your credit card issuer to find out more. If your issuer reports current balances instead of statement balances, asking them which day of the month they report on could be helpful.

Sometimes, the lower your credit card utilization is, the better your credit score. While you may feel in more control to know which day of the month that your credit balance is reported to the credit bureaus, it may be an even better move for your general financial health to practice maintaining low credit utilization all or most of the time.

If you are worried about your credit utilization rate being too high during any point throughout the month, you can make an additional payment. You don’t have to wait until your billing cycle due date to reduce the current balance on your card.

According to Experian®, one of the credit reporting agencies, keeping your current balance below 30% of your total credit limit is ideal. For example, if you have two credit cards, each with a $5,000 limit, you have a total credit limit of $10,000. To keep your utilization below 30%, you’ll want to maintain a combined balance of less than $3,000.

Some financial experts recommend that keeping one’s credit utilization closer to 10% or less is an even better move.

Recommended: Personal Loan Calculator

3 Tips for Managing Your Credit Card Balance

If you’re struggling to juggle multiple credit cards and make all of your payments, here are some tips that may help.

1. Organizing Your Debt

A great first step to getting a handle on your debt is to organize it. Try listing each source of debt, along with the monthly payments, interest rates, and due dates. It may be helpful to keep this list readily available and updated.

Another option is to use software that aggregates all of your finances, such as your credit card balances and payments, bank balances, and other monthly bills. Your bank may offer financial insights tools as well, which can be a great place to start with this endeavor.

When it comes to managing your credit card debt, keep in mind that staying on top of your due dates and making all of your minimum payments on time is one of the best ways to stay on track.

You can also ask your credit card providers to change your due dates so that they’re all due on the same day. Pick something easy to remember, such as the first or 15th of the month.

2. Making All Minimum Payments, But Picking One Card to Focus On

While you’re making at least the minimum payments on all your cards, pick one to focus on first. There are two versions of this debt repayment plan:

•   ‘With the debt avalanche method, you attack the card with the highest interest rate first.

•   ‘With the debt snowball method, you go after the card with the lowest balance.

The former strategy makes the most sense from a mathematical standpoint, but the latter may give you a better psychological boost.

If and when you can, apply extra payments to the card’s balance that you’re hoping to eliminate. Once you’ve paid off one card, you can move to the next. Ultimately, you’re trying to get to a place where you’re paying off your balance in full each month.

3. Cutting Up Your Cards

Whether you do this literally or not, a moratorium on your credit card spending can be a great strategy. If you are consistently running a balance that you cannot pay off in full, you may want to consider ways to avoid adding on more debt.

A word of warning: Don’t be tempted to cancel all your cards. This can negatively affect your credit score. However, if you feel you really have too many credit cards to manage — say, more than three or four — cancel the newest credit card first. This will ensure your credit history length is unaffected.

In addition to these steps, there are other options for dealing with credit card debt, such as debt consolidation, which can involve taking out a personal loan (typically, at a lower rate than your credit card interest rate), working with a certified credit counselor, and/or negotiating with your creditors to see if you can pay less than your full balance.

The Takeaway

Your credit card statement balance is the sum of all your charges and refunds during a billing cycle (usually a month), plus any previous remaining balance. It changes monthly with each statement. Your current balance is updated almost immediately every time you make a purchase. It is the sum of all charges to date during a billing cycle, any previous remaining balance, and any charges during the grace period. Whenever you can, pay off the full statement balance to avoid interest charges.

Trying to pay off credit card debt? Taking out a personal loan can consolidate all of your credit card balances.

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


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

FAQ

Should I pay my statement balance or current balance?</h3>

It can be wise to always aim to pay off your statement balance every month by the due date to avoid pricey interest charges. While not necessary, paying off the current balance can help lower your credit utilization ratio, which can in turn help build your credit score.

Why do I have a statement balance when I already paid?

Your statement balance reflects all the charges you have made, any interest and fees, and credits that occurred during a single billing cycle. Once that statement balance has been captured, it likely won’t be updated until the next billing cycle. Your credit card’s balance may well change, however, during this period as you use your card.

What happens if you don’t pay the full statement balance?

If you don’t pay your total statement balance before the end of what’s known as your grace period (the days between the end of your billing cycle and your payment’s due date), both your current balance and any new purchases that you make will start to accrue interest right away.


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


Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.

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.


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.

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How To Lower Credit Card Debt Without Ruining Your Credit

While paying off your credit cards often helps improve your credit, this isn’t always the case. Depending on the strategy you use to wipe away your debt, you could (inadvertently) do some damage to your scores. This could make it harder to get a mortgage, car loan, or even a rental agreement in the future. Here’s what you need to know to pay down your credit obligations while protecting your credit.

What Not to Do: Ignoring Credit Card Debt

When it comes to credit card debt, the consequences of avoidance and procrastination are steep, both to your financial well-being and to your credit scores. Here’s a look at the potential fallout.

•   Interest charges will pile up: Generally, the longer you avoid paying down your debt, the more interest will accrue. The average interest rate on credit cards as of September 2024 is 27.64%. This means that even if your debt isn’t growing through new purchases, interest alone can make your balance balloon over time.

•   Late fees and credit damage: Credit card issuers usually charge fees if you don’t make the minimum payment by the due date. After 30 days of no payment, your issuer will likely report the missed payment to the credit bureaus, which can do significant damage to your credit scores. Maintaining a balance also keeps your credit utilization (how much of your available credit you’re using) high. Credit utilization plays a large role in your credit rating. As your balance grows, your credit score will generally decline.

•   Debt collection and legal consequences: Ignoring credit card debt for too long could lead to the debt being sold to a collection agency, who can be aggressive in pursuing repayment. In extreme cases, your creditors might sue you, potentially leading to wage garnishment or seizure of personal assets.

What You Should Consider: Paying off Credit Card Debt Using a Planned Approach

If you have a significant amount of credit card debt, it may be tempting to bury your head in the sand. But you’ll be far better off coming up with a clear, actionable plan to start whittling down what you owe. The following steps can help you feel more in control over your debt, as well as your overall financial situation.

•   Assess your debt. A good place to start is to list out all of your credit card balances, along with their interest rates and minimum payments. This will give you a full picture of what you owe.

•   Create a basic budget. You don’t have to come up with a detailed line-item spending plan. Simply go through your last few months of financial statements and assess what’s coming in and going out, on average, each month. Then comb through your discretionary (unnecessary) monthly spending and look for places where you can cut back. Any money you free up can go toward credit card payments. 

•   Pick a debt payoff strategy. Here’s a look at two popular approaches that can help you gradually pay down your balances.

•   Avalanche method: Here, you make extra payments on the credit card with the highest interest rate first, while making minimum payments on the others. Once the highest-rate card is paid off, you funnel those extra funds toward the card with the next-highest rate, and so on. This strategy minimizes the amount of interest you’ll pay over time.

•   Snowball method: With this method, you put extra payments toward the card with the smallest balance first, while making minimum payments on the others. When that card is cleared, you focus on paying off the next-smallest balance, and so on. This gives you quick wins and a psychological boost, which can help you stay motivated. 

•   Take advantage of windfalls: If you get a bonus, tax refund, or any extra income, consider applying it toward your credit card debt. This can help you reduce your balance faster and lower the total amount of interest you’ll pay.

•   Automate your payments: It’s a good idea to set up automatic payments for at least the minimum payment due each month. You may be able to pay more, but having this set up in advance helps you avoid missed payments, which can harm your credit score, as well as late fees.

•   Keep paid-off accounts open. As you pay off your cards, you may think it’s a good idea to close those accounts — but not so fast. When you close a credit card, you lose that account’s available credit limit. That means any balances remaining on other credit cards will then account for a higher percentage of your total available credit. This increases your credit utilization, which can hurt credit scores.

Negotiating and Settling Credit Card Debt

If you’ve been struggling to make payments on your credit cards, there’s a good chance your credit score has been negatively affected. Before the debt is sent to collections, you may be able to negotiate with the credit card company.

Like any business, the primary goal of a credit card company is to make a profit. When it becomes apparent that a cardholder is unable to pay their bills, companies are sometimes willing to find an arrangement that will enable the customer to make payments based on their situation. Here’s a look at some options a credit company may be able to offer.

•   Workout agreement: With this arrangement, the credit card company may agree to lower your interest rate or temporarily waive interest altogether. They may also be willing to take additional steps to make it easier for you to repay your debt, such as waiving past late fees or lowering your minimum payment. 

•   Debt settlement: In a debt settlement, the credit card company agrees to accept less than the full amount you owe, forgive the rest, and close the account. While this might seem appealing, a debt settlement can negatively affect your credit scores and stay on your credit reports for seven years. As a result, it’s generally considered a last-resort option for those facing severe financial difficulties.

•   Hardship agreement: Some card issuers offer a hardship or forbearance program for borrowers who are experiencing a temporary financial setback, such as a job loss, illness, or injury. Under these programs, the company may agree to lower your interest rate, even temporarily suspend payments. However, your credit can be negatively affected, since the issuer may report negative information to the credit bureaus during the forbearance period.

What Is the Statute of Limitations on Credit Card Debt?

The statute of limitations governs how long a creditor or collection agency can sue you for nonpayment of a debt. The statute of limitations on credit card debt varies from state to state, but is typically between three and six years. Once the statute of limitations has passed, debt collectors can’t win a court order for repayment.

Even if your credit card debt is past the statute of limitations, however, it doesn’t magically disappear. Unpaid debts can remain on your credit report for up to seven to 10 years from the date of your last payment. That negative mark can lower your credit scores, making it hard to qualify for new credit cards and loans with attractive rates and terms in the future. 

Say Goodbye to Credit Card Debt with a Personal Loan

Consolidating credit card debt with a personal loan (often referred to as a debt consolidation loan) can be an effective way to lower your debt and simplify repayment.

To do this, you essentially take out an unsecured personal loan, ideally with a lower interest rate than you’re paying on your cards, then use it to pay off your balances. Moving forward, you only have one payment (on your new loan). An online personal loan calculator can show you exactly how much interest you could save by paying off your existing credit card (or cards) with a personal loan.

Initially, debt consolidation can negatively impact your credit score. This is because the lender will do a hard pull on your credit, which can decrease your score by a few points. However, this decline is temporary. Making consistent, on-time payments on your personal loan can help boost your credit profile over time. Payment history makes up 35% of your overall FICO® credit score.

If, on the other hand, you make any of your loan payments late, or miss a payment entirely, credit consolidation can end up having a damaging impact on your credit.

Recommended: FICO Score vs Credit Score 

The Takeaway

Credit card debt can be a major financial burden, but it doesn’t have to ruin your credit or your financial future. By avoiding the temptation to ignore your debt and adopting a planned approach, you can gradually reduce what you owe. Whether you choose to use a paydown strategy (like avalanche or snowball), negotiate with creditors, or explore a consolidation loan, there are various strategies to help you regain control of your finances while protecting — and ultimately building — your credit.

Ready for a personal loan to pay off credit card debt? With low fixed interest rates on loans of $5K to $100K, a SoFi Personal Loan for credit card debt could substantially decrease your monthly bills.

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


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.


Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

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Saving $10,000 a Year: 9 Great Ways

How to Save $10,000 in a Year

While saving $10,000 in a year may sound like an ambitious goal, it’s often feasible through careful planning and disciplined spending — even if you’re not a high earner.

Whether you’re saving for an emergency fund, a down payment on a home, or just building financial security, these practical tips can help you put aside $10,000 in 12 months (and possibly even sooner).

Key Points

•  A successful savings plan typically begins with determining the difference between how much money you need and have available to save each month.

•  Saving $10,000 in 12 months may require eliminating unnecessary expenses and reducing necessary ones.

•  Sometimes it’s possible for savers to boost income through side hustles, selling unused items, or asking for a raise.

•  Automating savings through recurring transfers and taking advantage of high-yield savings accounts can help you steadily increase funds.

•  Individuals can take advantage of windfalls like tax refunds or bonuses to boost savings.

Is Saving $10,000 a Year Possible?

Saving $10,000 in a year is generally possible if you have steady earnings. How challenging it will be, however, will depend on your income and monthly expenses. To reach this goal, you need to save approximately $833 per month or about $192 per week. While that may still seem like a lot, there are numerous ways to adjust your spending, increase your income, and build savings over time without drastically affecting your lifestyle.

8 Ways to Save $10k in a Year

There are many practical ways to start saving money, but to reach the $10,000 mark, you’ll likely need to adopt several strategies simultaneously. Here are eight effective methods to help you reach your goal.

1. Assess Your Cash Flow

To come up with a plan to save $10,000 in a year, you’ll need to assess how much money is currently flowing in and out of your bank account each month. To do this, you’ll need to gather the last several months of bank statements, then tally up your average monthly income and average monthly spending. Simply subtract the second number from the first.

If you discover that your monthly earnings exceed your monthly spending by at least $833.33, you’re in great shape. Simply transfer that amount to savings each month and you’ll accumulate $10,000 a year.

If you find that there is less — or very little — wiggle room between what’s coming and going out of your account on a monthly basis, you’ll need to make some tweaks in your spending and, if possible, your earnings (in other words, keep reading).

2. Reduce Unnecessary Expenses

One of the quickest ways to boost your savings is by eliminating or reducing unnecessary expenses. These are often small, daily costs that add up over time without you realizing it. Some areas to target:

•  Eating out: If you regularly buy lunch or dine out for dinner, consider preparing more meals at home. You can save hundreds of dollars monthly by cutting down on restaurant visits and takeout.

•  Subscriptions: Review your monthly subscriptions, such as streaming services, magazines, or gym memberships, and cancel those you rarely or never use.

•  Coffee and snacks: A daily coffee shop visit may seem harmless, but it can cost over $100 a month. Consider brewing coffee at home and keeping grab-and-go breakfast items on hand to reduce the temptation to spend.

Any funds you free up can then be redirected towards your $10,000 savings goal.

Recommended: 5 Easy Ways to Save Money

3. Trim Fixed Expenses

While fixed expenses seem like just that — fixed — that’s not always the case. While you may not be able to lower your rent, you may be able to whittle down some of your other recurring monthly bills. Some ideas:

•  Shop around for a better deal on your home and auto insurance.

•  Look for a cheaper cell phone plan.

•  Eliminate your landline.

•  Downgrade your television package to a less expensive streaming option.

•  Make small tweaks to your home temperature to reduce utility bills.

•  Prioritize paying down high-interest credit card debt.

•  Consider refinancing your mortgage, auto loan, or student loans if you can qualify for a lower rate.

4. Boost Income

Cutting costs is important, but increasing your income can supercharge your ability to save. By boosting your income, you’ll have more cash flow to funnel into your savings. Here are a few ways to bring in extra cash:

•  Start a side hustle: Consider taking on a part-time gig, freelancing, or using a skill like photography, writing, or tutoring to earn extra money.

•  Sell items you no longer need. If you have items sitting around your home that you don’t need, you may be able to turn them into cash by posting them online (consider sites like eBay and Facebook Marketplace) or hosting a garage sale.

•  Ask for a raise: If you’ve been at your job for a while and have demonstrated value, consider negotiating for a raise. Even a small pay bump can add up over the course of a year.

5. Switch to a High-Yield Account

As you divert more money to savings, you’ll want to send it to an account that helps your money grow. As of September 2024, the national average savings account yield was 0.46% annual percentage yield (APY), according to the FDIC. Fortunately, high-yield savings accounts (particularly those offered by online banks) tend to offer far higher APYs, so it’s worth shopping around. While interest alone won’t get you to $10,000, it can give your savings a nice boost over the year.

6. Automate Saving

Having a portion of your paycheck automatically go into savings (a tactic known as “paying yourself first”) is one of the simplest and most effective ways to build savings consistently. One way to do this is by setting up a recurring transfer from your checking account to your savings account for a set amount on the same day each month (ideally right after you get paid). If you get paid via direct deposit, another option is to ask your employer to make a split deposit — with some of each paycheck going directly into savings, and the rest into checking.

Either method ensures that you’re regularly contributing to your savings without having to think about it, making it easier to stay on track.

7. Try a No-Spend Challenge

Once you get going, you might want to challenge yourself to save even more with a no-spend challenge. To do this, you simply commit to not spend money on anything other than essential needs (e.g., groceries, bills) for a set period — typically a week or a month. This can bump up your savings in a short period of time. It can also serve as a spending reset — you may discover you can live on a lot less than you previously thought.

8. Take Advantage of Windfalls

If you receive a lump sum of cash — such as tax refund, work bonus, or cash gift — consider putting all (or some) of it directly into your savings account. By directing windfalls toward savings, you can make substantial progress toward your $10,000 goal.

Benefits of Saving $10,000 a Year

Saving $10,000 in a year comes with numerous benefits. Here are some to keep in mind as you work towards your $10k savings goal.

•  Financial security: Having a robust savings cushion protects you from unexpected expenses, such as medical bills or car repairs, reducing the need for credit card debt or loans.

•  Peace of mind: Knowing you have a significant amount set aside can reduce stress and anxiety related to money and offer more financial freedom.

•  Achieving short-term financial goals: Whether you’re saving for a vacation, new car, or down payment on a home, having $10,000 gives you the flexibility to reach these milestones.

•  Opportunities for investment: Once you’ve saved $10,000, you might consider investing a portion of it to grow your wealth further through stocks, real estate, or retirement accounts.

The Takeaway

Saving $10,000 in a year is an ambitious yet, often, attainable goal. Depending on your situation, you may be able to achieve it just by making small, strategic changes to your everyday spending and saving habits. These might include cutting unnecessary expenses, automating your savings, boosting income, earning more interest on your money, and leveraging windfalls.

However you do it, saving $10k in a year can give you a sense of accomplishment and put you in a better position to handle life’s financial challenges and opportunities.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.


Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy up to 3.80% APY on SoFi Checking and Savings.

FAQ

Is saving $10,000 a year good?

Yes, saving $10,000 a year is a solid financial goal. It provides a significant cushion for unexpected expenses and can also help you work towards financial goals, like paying off credit card debt, buying a home, and saving for retirement. Saving $10,000 also offers peace of mind by improving your financial stability and security.

Is $10,000 a lot to save in a year?

For many people, saving $10,000 in a year is a substantial amount. It equates to roughly $833 per month or about $192 per week. For some, that’s a modest target, while for others, it may require budgeting, cutting unnecessary expenses, and potentially increasing income. Regardless of the circumstances, saving this amount can help you meet your short- and long-term financial goals.

How much do you need to earn to be able to save $10K a year?

How much you have to earn to save $10K a year will depend on your expenses. A common rule of thumb is to save at least 10% to 20% of your income. Based on this formula, you’d need to earn $50,000 to $100,000 to comfortably save $10,000. That said, people earning less may still be able to save this amount with disciplined budgeting, cutting unnecessary expenses, and/or finding ways to supplement their regular income.


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SoFi members with Eligible Direct Deposit activity can earn 3.80% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Eligible Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Eligible Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below).

Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning 3.80% APY, we encourage you to check your APY Details page the day after your Eligible Direct Deposit arrives. If your APY is not showing as 3.80%, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning 3.80% APY from the date you contact SoFi for the rest of the current 30-day Evaluation Period. You will also be eligible for 3.80% APY on future Eligible Direct Deposits, as long as SoFi Bank can validate them.

Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi members with Eligible Direct Deposit are eligible for other SoFi Plus benefits.

As an alternative to Direct Deposit, SoFi members with Qualifying Deposits can earn 3.80% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant. SoFi members with Qualifying Deposits are not eligible for other SoFi Plus benefits.

SoFi Bank shall, in its sole discretion, assess each account holder’s Eligible Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving an Eligible Direct Deposit or receipt of $5,000 in Qualifying Deposits to your account, you will begin earning 3.80% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Eligible Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.

SoFi Bank reserves the right to grant a grace period to account holders following a change in Eligible Direct Deposit activity or Qualifying Deposits activity before adjusting rates. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Eligible Direct Deposit activity or $5,000 in Qualifying Deposits during the current 30-day Evaluation Period and, if applicable, the grace period, then you will begin earning the rates earned by account holders without either Eligible Direct Deposit or Qualifying Deposits until SoFi Bank recognizes Eligible Direct Deposit activity or receives $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Eligible Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Eligible Direct Deposit.

Separately, SoFi members who enroll in SoFi Plus by paying the SoFi Plus Subscription Fee every 30 days can also earn 3.80% APY on savings balances (including Vaults) and 0.50% APY on checking balances. For additional details, see the SoFi Plus Terms and Conditions at https://www.sofi.com/terms-of-use/#plus.

Members without either Eligible Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, or who do not enroll in SoFi Plus by paying the SoFi Plus Subscription Fee every 30 days, will earn 1.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances.

Interest rates are variable and subject to change at any time. These rates are current as of 1/24/25. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.
*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

This content is provided for informational and educational purposes only and should not be construed as financial advice.

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.

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A Guide to Bitcoin ETPs

Spot Bitcoin ETPs are a type of investment vehicle that seeks to track the spot price of Bitcoin. ETPs, or exchange-traded products, are a broader basket of investments that include both exchange-traded funds (ETFs) and exchange-traded notes (ETNs), and are listed on an exchange, and can be purchased or sold much like a stock.

But what’s critical to know is that generally, ETFs are regulated by the Investment Company Act of 1940 (the “1940 Act”). While the most common type of ETPs are structured as ETFs, not all are, and spot Bitcoin ETPs are a specific type of ETP that are not registered under the 1940 Act. As such, these ETPs are not subjected to the 1940 Act’s rules, and investors holding shares of Bitcoin ETPs do not have the same protections as those that are regulated by the 1940 Act, which means these investments have relatively higher associated risks.

What Is a Bitcoin ETP?

As noted, Bitcoin ETPs are a type of exchange-traded fund or product that allow investors to gain exposure to Bitcoin without directly owning it. These seek to track the price of Bitcoin. That means when the price of Bitcoin in U.S. dollars goes up, a spot Bitcoin ETP, trading on the stock exchange should also see its share values go up, and vice versa.

But it’s critical to note that Bitcoin ETPs have a much narrower focus than most other exchange-traded products, which started out with the aim of giving investors broad exposure to the stock market. But, like all investments, they have various risks associated with them. In fact, it’s possible that an investor could lose the entirety of their investment.

An Introduction to Bitcoin ETPs

Bitcoin ETPs are exchange-traded products that, effectively, allow investors to gain exposure to the crypto markets as easily as they would buy or sell a stock, as discussed. Again, a Bitcoin ETP seeks to track the price or value of Bitcoin, and so the value of a Bitcoin ETP share is designed to rise or fall in relation to the change in value of the underlying cryptocurrency.

It also means that investors don’t necessarily need to directly own Bitcoin to gain exposure to the market in their portfolio — they can invest in a security, the ETP, that seeks to track it, instead. Note, too, that all ETPs have related fees and expenses, which vary.

💡 Quick Tip: How to manage potential risk factors in a self-directed investment account? Doing your research and employing strategies like dollar-cost averaging and diversification may help mitigate financial risk when trading stocks.

Get up to $1,000 in stock when you fund a new Active Invest account.*

Access stock trading, options, alternative investments, IRAs, and more. Get started in just a few minutes.


*Customer must fund their Active Invest account with at least $50 within 30 days of opening the account. Probability of customer receiving $1,000 is 0.028%. See full terms and conditions.

What Are Spot Bitcoin ETPs?

Spot Bitcoin ETPs are investment vehicles that trade at “spot” value. “Spot” value, in this case, refers to the price of the underlying asset at any given time. So, if a buyer and seller come together to make a trade, they would do so at the spot price. There are spot markets for all sorts of commodities.

Where Can Investors Buy Spot Bitcoin ETP Shares?

Investors can buy spot Bitcoin ETP shares via numerous exchanges and platforms. While previously, investors interested in Bitcoin or other cryptocurrencies would need to trade on platforms that supported cryptocurrencies, since Bitcoin ETPs are exchange-traded vehicles, investors are likely to find them available on many other platforms — that includes SoFi, which allows investors to buy spot Bitcoin ETP shares as well.

Are There Other Spot Crypto ETPs?

Spot Bitcoin ETPs seek to track the price of a fund’s Bitcoin holdings, and other spot crypto ETPs, if and when they are approved and hit exchanges, will do the same.

Spot Bitcoin ETPs were first approved for trading by regulators in early 2024. There are ETPs that seek to track Bitcoin-exposed or Bitcoin-adjacent companies, too, as well as Bitcoin futures. Spot Ethereum ETPs – or Ether ETPs, as they would actually track Ether (ETH), the Ethereum blockchain’s native cryptocurrency – could be similar vehicles to to spot Bitcoin ETPs, in that they would seek to track the price of Ether, and allow investors to gain exposure to Ether in their portfolios without owning it directly.

What Are Bitcoin Futures ETPs?

Bitcoin futures ETPs are another type of ETP that give investors exposure to the price movements of Bitcoin via futures contracts. Futures are a type of contract that dictates the terms of a trade at a future date, and typically have underlying assets such as precious metals or other commodities — including crypto.

Accordingly, Bitcoin futures ETPs are crypto futures ETPs that specifically seek to track Bitcoin futures contracts. Regulators approved Bitcoin futures contracts in 2021, but again, investors should know that they don’t seek to track the price or value of the underlying asset exactly — which differentiates them from spot Bitcoin ETPs.

💡 Quick Tip: Look for an online brokerage with low trading commissions as well as no account minimum. Higher fees can cut into investment returns over time.

Are There US-listed Spot Bitcoin ETPs?

There are U.S.-listed spot Bitcoin ETPs. When the Securities and Exchange Commission (SEC) first granted their approval in January 2024, it opened the door to several Bitcoin ETPs hitting the market. As a result, investors were able to start buying and selling them via the stock market.

The SEC’s approval led to new spot Bitcoin ETPs being listed on a few different exchanges. Here’s a list of the first 11 spot Bitcoin ETPs that gained approval from the SEC:

•   Grayscale Bitcoin Trust (GBTC)

•   Bitwise Bitcoin ETF (BITB)

•   Hashdex Bitcoin ETF (DEFI)

•   ARK 21Shares Bitcoin ETF (ARKB)

•   Invesco Galaxy Bitcoin ETF (BTCO)

•   VanEck Bitcoin Trust (HODL)

•   WisdomTree Bitcoin Fund (BTCW)

•   Fidelity Wise Origin Bitcoin Fund (FBTC)

•   Franklin Bitcoin ETF (EZBC)

•   iShares Bitcoin Trust (IBIT)

•   Valkyrie Bitcoin Fund (BRRR)

Note, too, that it’s anticipated that additional spot cryptocurrency ETPs will become available.

How Are Bitcoin ETPs Regulated?

Bitcoin ETPs are regulated by the SEC, which sets out guidance in terms of legality. Regulation in the crypto space is and has been murky — it’s been largely unregulated for the entirety of the crypto space’s existence. But the advent of crypto ETPs is likely to change that to some degree, as spot Bitcoin ETPs’ underlying asset is and can be Bitcoin itself, rather than Bitcoin derivatives.

Remember, too, that Bitcoin ETPs are not regulated under the Investment Company Act of 1940, as discussed. That differentiates them from most ETFs on the market.

That’s another important distinction investors should note: Spot and futures Bitcoin ETPs may be regulated under slightly different terms, as futures are derivatives. Investors should pay attention to the space and to any SEC guidance released regarding crypto regulation, as it may impact the value of their holdings in crypto ETPs, too.

Pros & Cons of Bitcoin ETPs

Like all investments, there are pros and cons of ETFs and ETPs — including Bitcoin ETPs.

Benefits of Bitcoin ETPs

Proponents of Bitcoin ETPs appreciate that they can give investors exposure to the complicated and volatile cryptocurrency market, without the need to personally hold actual crypto.

Convenience and Ease

Buying a spot Bitcoin ETP requires little tech know-how beyond knowing how to use a computer, open a brokerage account, and place a buy order.

ETPs provide a way for investors to indirectly add exposure to certain assets — like Bitcoin, in this case — to their portfolio. That may result in a return on investment, or a possible loss of principal. On the other hand, holding actual Bitcoin may require a somewhat advanced level of technical expertise.

Secure Storage Options

Some cryptocurrency exchanges might be trustworthy, but some users have also had a controversial history of being hacked, stolen from, or defrauded. Even reliable exchanges open investors up to risk.

Securely storing cryptocurrencies — for example, storing the private keys to a Bitcoin wallet — is most often done by using either a paper wallet that has the keys written in the form of a QR code and a long string of random characters, or by using an external piece of hardware called a hardware wallet.

Risks of Bitcoin ETPs

First and foremost, investors should be aware that it’s possible that they could lose the entirety of their investment when investing in Bitcoin ETPs. There are, of course, other risks to consider as well, including volatility, costs, and the unpredictable and still largely-unregulated nature of the crypto market.

Volatility

The volatility comes from the occasional wild swings experienced in the price of Bitcoin and Bitcoin futures against most other currencies. This could scare investors that have a lower risk tolerance, enticing them to panic and sell.

Fees

One of the risks that comes from holding an ETP of any kind involves its expense ratio. This number refers to the amount of money a fund’s management charges in exchange for providing the opportunity for investors to invest in their fund.

If a fund comes with an expense ratio of 2%, for example, the fund management would take $2 out of a $100 investment each year. This figure is usually calculated after profits have been factored in, cutting into investors’ gains. In other words, some Bitcoin ETPs could be relatively expensive for investors to hold, but it’ll depend on the specific fund.

There can be other various types of fees that may apply to an investment in ETPs as well. While the specific fees will vary from ETP to ETP, investors will likely encounter one or a combination of commissions, account maintenance fees, exchange fees, and wrap fees (a type of management fee). Again, investors will want to look at an ETP’s prospectus or related documents to get a better sense of the costs associated with a specific ETP.

Fraud and Market Manipulation

Regulators have cited fraud and market manipulation as reasons for why they were cautious about approving a spot market Bitcoin ETP. It’s unclear how the SEC’s approval of spot Bitcoin ETPs may affect fraud and market manipulation in the crypto space, but it’s something investors should be aware of.

The Takeaway

Spot Bitcoin ETPs were approved for trading by the SEC in early 2024, and as a result, it’s likely that many more crypto ETPs will also hit markets and exchanges in the future — though nothing is guaranteed. Investors may use them to gain exposure to the crypto markets. For investors curious about the cryptocurrency market but not yet ready to invest in crypto itself, a Bitcoin ETP may represent another option. It may be best to speak with a financial professional before investing, too.

If you’re ready to bring crypto into your portfolio, you can invest in a Bitcoin ETP with SoFi. Along with many other types of investments, SoFi’s platform offers investors access to the crypto space through spot Bitcoin ETPs.

Ready to invest in your goals? It’s easy to get started when you open an investment account with SoFi Invest. You can invest in stocks, exchange-traded funds (ETFs), mutual funds, alternative funds, and more. SoFi doesn’t charge commissions, but other fees apply (full fee disclosure here).

For a limited time, opening and funding an Active Invest account gives you the opportunity to get up to $1,000 in the stock of your choice.

FAQ

What are the options for Bitcoin ETPs?

There are Bitcoin futures ETPs and spot Bitcoin ETPs listed in the U.S., which investors can buy. Given the SEC’s approval of Bitcoin ETPs for trading in early 2024, there may soon be additional spot crypto ETPs available to investors in the future.

Are there US-listed Bitcoin ETPs?

As of July 2024, there are U.S.-listed spot Bitcoin ETPs after the SEC approved an initial batch of them, and it’s likely there will be more in the subsequent months and years.

Where can Bitcoin ETP shares be purchased?

Crypto ETPs can be purchased and traded on the stock market, alongside other ETPs.


Photo credit: iStock/JuSun

SoFi Invest®

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

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

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.

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

Fund Fees
If you invest in Exchange Traded Funds (ETFs) through SoFi Invest (either by buying them yourself or via investing in SoFi Invest’s automated investments, formerly SoFi Wealth), these funds will have their own management fees. These fees are not paid directly by you, but rather by the fund itself. these fees do reduce the fund’s returns. Check out each fund’s prospectus for details. SoFi Invest does not receive sales commissions, 12b-1 fees, or other fees from ETFs for investing such funds on behalf of advisory clients, though if SoFi Invest creates its own funds, it could earn management fees there.
SoFi Invest may waive all, or part of any of these fees, permanently or for a period of time, at its sole discretion for any reason. Fees are subject to change at any time. The current fee schedule will always be available in your Account Documents section of SoFi Invest.


Claw Promotion: Customer must fund their Active Invest account with at least $50 within 30 days of opening the account. Probability of customer receiving $1,000 is 0.028%. See full terms and conditions.

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Student Loan Debt by Major

Student Loan Debt by Major

There’s no question that furthering your education can be an expensive endeavor. But depending on what you study, students in some majors can expect to pay a significantly higher price than others.

If your goal is to study law, medicine, or veterinary medicine, for example, and you plan to get a graduate degree, you could end up owing five or six times more than the average person with a bachelor’s degree.

Whether you choose your major out of passion or for the potential paycheck — or both — only time will tell if you’ll get the outcome you’re hoping for. In the meantime, it can be a good idea to look at how much you might have to borrow to finance the course of study you’re considering.

Key Points

•   Student loan debt varies widely based on the major and degree level.

•   Law, medical, dental, and veterinary degrees have some of the highest student loan debt, often exceeding $150,000.

•   Business, architecture, and pharmacy degrees also carry significant debt, with many graduates borrowing over $100,000.

•   The average federal student loan debt balance is $37,843, while private student loan balances exceed $128 billion nationwide.

•   Federal loans have borrowing limits, leading many students to take on private loans to cover additional education costs.

Student Loan Debt in America

How much do student loan borrowers in the United States owe after college?

According to the Federal Reserve’s most recent numbers, outstanding U.S. student loan debt reached $1.74 trillion in the second quarter of 2024. That’s nearly triple what the Fed says Americans owed in 2006.

Gen Xers have the most student loan debt out of any other generation, with an average balance of $44,290 per borrower. Baby boomers have the second-largest amount at $42,520 per borrower, and millennials average $32,800 per borrower.

And the United States isn’t the only country with a high amount of student debt. In England, the value of outstanding loans reached £236 billion (approximately $261 billion in U.S. dollars) at the end of March 2024. The government there forecasts the value of outstanding loans will be around £500 billion (approximately $553 billion in U.S. dollars) by late 2040s.

While student loan forgiveness and other reforms are often discussed here and abroad, little is happening so far.

Recommended: Average Student Loan Debt: By Career

Average Student Loan Debt

According to the Education Data Initiative, the average federal student loan debt balance is $37,853 per borrower. And if you include private loan debt, the average balance may be as high as $40,681.

Of course, the amount you might borrow (or have borrowed) could vary significantly depending on your major and the degree required to pursue your chosen profession.

The average student loan debt for a borrower with a bachelor’s degree, for example, is about $30,500. But if your major moves you on to a graduate degree, the cost can move on, as well — to an average of $65,667 for the graduate degree only ($84,203 on average in total student loan debt). And if you’re thinking about a degree in law or medicine, your debt could be in the hundreds of thousands.

Federal student loan programs also allow graduate students to borrow more money than undergraduates. Though there’s a $31,000 cap on federal loans for undergraduate students who are dependents, graduate students may be eligible to borrow up to the full cost of attendance through the federal Grad Plus program.

Other factors that affect the amount students end up borrowing can include the cost of living in the state where the school is located, whether the school is public or private, and whether the student is paying in-state or out-of-state tuition.

Recommended: How to Pay for College

Student Loan Debt by Major

When you first start thinking about how to choose your college major, it’s likely you base your top choices on the academic subjects you’ve always been good at or things you’re interested in. Maybe you have a passion for a subject you feel destined to pursue.

If you’re a practical person, you also may have considered what career that degree might potentially lead to, and how much you’d earn if it became your profession.

What you may not have thought about — at least not at first — was how much it might cost you to major in one subject vs. another. Or if you might have to get an advanced degree in your major to actually get the job, or paycheck, of your dreams.

Here’s a look at the average student loan debt for some popular degrees:

Law Degree

$160,000 upon graduating

74% graduate in debt

Medical Degree

$243,483 upon graduating

73% have educational debt

Recommended: What Is the Average Medical School Debt?

Dental School

$296,500 upon graduating

82% take out student loans

Nursing

Associate Degree in Nursing (ADN): $23,302

Bachelor of Science in Nursing (BSN): $28,917

Master of Science in Nursing (MSN): $49,047

Almost 70% take out student loans.

Recommended: A Look at the Average Cost of Nursing School 

Business Administration

$41,000 to $170,000 for MBA students

54% of MBA graduates take out loans

Architecture

$40,000 in debt

(% who borrow not available)

Veterinary Medicine

$179,505 on average

82% graduate with debt

Pharmacy

$167,711

82.2% take out student loans

Education/Teaching

$55,800

45% take out loans

Communication/Journalism

Bachelor’s degree: $31,651

Master’s degree: $27,911

(% with loans not available)

Associate Degree Debt by Major

Below is the average debt of students graduating with an associate degree based on major, per Education Data Initiative:

•   Alternative and Complementary Medicine and Medical Systems: $38,533

•   Computer Systems Analysis: $27,924

•   Behavior Sciences: $21,859

•   Construction Management: $19,423

•   Marketing: $16,628

•   Animal Sciences: $12,705

•   Education, General: $11,035

•   Engineering, General: $10,299

•   Biological and Physical Sciences: $7,591

Bachelor’s Degree Debt by Major

Below is the average debt of students graduating with a bachelor’s degree based on major, per Education Data Initiative:

•   Behavioral Sciences: $42,822

•   Computer Programming: $28,586

•   Education, General: $28,001

•   Music: $26,600

•   Architecture: $26,468

•   Construction Engineering: $26,025

•   Social Work: $24,863

•   Accounting and Related Services: $24,086

•   Economics: $20,700

•   Human Biology: $17,994

•   Science Technologies/Technicians, General: $9,529

Master’s Degree Debt by Major

Below is the average debt of students graduating with a master’s degree based on major, per Education Data Initiative:

•   Advanced/Graduate Dentistry and Oral Sciences: $158,155

•   General Sales: $104,650

•   Real Estate Development: $97,023

•   Landscape Architecture: $80,409

•   International Business: $65,052

•   Public Health: $48,726

•   Engineering Science: $45,887

•   Insurance: $43,408

•   Construction Management: $37,620

•   Engineering, General: $33,235

•   Education, General: $29,434

Doctoral Degree Debt by Major

Below is the average debt of students graduating with a doctoral degree based on major, per Education Data Initiative:

•   Pharmacy, Pharmaceutical Sciences, and Administration: $310,330

•   Psychology, Other: $187,804

•   Public Administration: $146,194

•   Health and Medical Administration Services: $101,589

•   Education, General: $82,131

•   Biology, General: $42,879

Federal vs Private Student Loan Debt

As these student loan debt statistics show, the rising cost of attending college can be a heavy financial burden for many Americans. And because there are limits on how much students can borrow in federal loans each year, many turn to private student loans to help cover their education bills.

The national private student loan balance now exceeds $128 billion, according to EducationData.org, which says 88.93% of that balance is in undergraduate loans and 11.07% is in graduate student loans.

Private student loans are a pretty small piece of the overall outstanding student loan debt in the United States — about 8.84%. But the number of students taking out private loans is growing. Student loan borrowers owe 71% more in private student loan debt than they did a decade ago, the Student Borrower Protection Center reports.

Recommended: Private Student Loans vs Federal Student Loans

The Takeaway

No matter what your major is, there’s a good chance you may have to take on some debt to get the education you need and want.

And the final bill could be substantial: The average federal loan debt balance is $37,843 per borrower, but if you choose a major that requires a graduate degree, it could be two or three times that amount, or more.

Most student borrowers use federal loans to help pay for their education. But a combination of federal and private loans may be necessary to cover all your costs.

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.


Cover up to 100% of school-certified costs including tuition, books, supplies, room and board, and transportation with a private student loan from SoFi.

FAQ

How much student loan debt is there in the United States?

According to the Federal Reserve’s most recent numbers, outstanding U.S. student loan debt reached $1.74 trillion in the second quarter of 2024.

What is the average U.S. student loan debt per student?

According to Education Data, the average federal student loan debt balance is $37,843 per borrower. If you include private loan debt, the average balance may be as high as $40,681.

Who owns the most student debt?

The federal government — or, more specifically, the U.S. Department of Education — owns about 92.5% of all student loan debt in America.


Photo credit: iStock/FabrikaCr

SoFi Private Student Loans
Please borrow responsibly. SoFi Private Student loans are not a substitute for federal loans, grants, and work-study programs. We encourage you to evaluate all your federal student aid options before you consider any private loans, including ours. Read our FAQs.

Terms and Conditions Apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. SoFi Private Student loans are subject to program terms and restrictions, such as completion of a loan application and self-certification form, verification of application information, the student's at least half-time enrollment in a degree program at a SoFi-participating school, and, if applicable, a co-signer. In addition, borrowers must be U.S. citizens or other eligible status, be residing in the U.S., and must meet SoFi’s underwriting requirements, including verification of sufficient income to support your ability to repay. Minimum loan amount is $1,000. See SoFi.com/eligibility for more information. Lowest rates reserved for the most creditworthy borrowers. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change. This information is current as of 04/24/2024 and is subject to change. SoFi Private Student loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891. (www.nmlsconsumeraccess.org).

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