SoFi

It’s no secret that student loan debt in the U.S. is soaring. A quick internet search will return countless headlines noting the rising debt total—now over $1.7 trillion.

In search of a possible remedy, Public Service Loan Forgiveness (PSLF) was created in 2007 when Congress passed the College Cost Reduction and Access Act.

What Is Public Service Loan Forgiveness?

Public Service Loan Forgiveness was developed to encourage graduates with federal student loans to pursue relatively low-paying jobs in public service, like teachers, nurses, or public interest lawyers, by helping them with their student loan debt — which may be higher than what their salary could allow them to repay.

At its core, the idea seems relatively simple. After 10 years of qualifying student loan payments while working in a qualified public service job, the remaining balance on a borrower’s student loans would be forgiven by the government.

But when the first batch of students became eligible for PSLF in 2017, 10 years after the program’s inception, it became clear that the guidelines were a little murkier than originally thought.

Data showed that nearly 99% of applicants were denied loan forgiveness. According to the Department of Education, 70% of the approximately 29,000 applicants that have been processed were denied because they failed to meet program requirements.

So, if you plan to pursue PSLF, it could be worth taking a few minutes to double check the program requirements and make sure you meet them all.

PSLF: The Requirements

In order to be considered for loan forgiveness, there are a few program requirements to meet. You can see all the requirements on the Federal Student Aid website , but here’s our high-level look.

Firstly, the borrower has to work for a qualifying employer — like a government agency or certain types of nonprofits.

They’d also have to work full-time. If they happen to be working a few jobs that all qualify for the program, it’s possible to work a cumulative total of 30 hours a week to meet the full-time employment qualification.

PSLF requires applicants to have a Direct Loan or a Direct Consolidation Loan and the loan cannot be in default. Also, 120 qualifying payments would have to be made on an income-driven repayment plan or the 10-year Standard Repayment Plan.

What Is a Qualifying Payment for Public Service Loan Forgiveness?

While it may seem easy to make qualifying payments for loan forgiveness, the process can be confusing at times and requires attention to detail from the borrower pursuing loan forgiveness.

Part of making PSLF qualifying payments is working for an employer who qualifies for the program. To confirm whether an employer qualifies, borrowers need to fill out the employment certification form. As borrowers work toward loan forgiveness in the program, they should fill out the employment certification form every year and every time they switch jobs.

If you’re considering applying to the program, double check the type of loans you hold and make sure they qualify for the program. To check, you can log into the Federal Student Aid website. For example, federal loans such as Perkins Loans or Family Federal Education Loans (FFEL) don’t qualify for PSLF.

However, if they are consolidated into a Direct Consolidation Loan, they may. Note that when loans are consolidated, any payments made prior to consolidation will not count toward the total of the 120 qualified payments required by the PSLF program.

You’ll also likely want to take a look at the repayment plan. In order to make a qualifying payment, the loan should be enrolled in a qualifying repayment plan, typically one of the income-driven repayment plans.

While the standard 10-year repayment plan does qualify for PSLF, by the time 120 payments have been made, the loan should be repaid, so there likely won’t be a balance left to forgive.

Once program requirements are being met, making qualifying payments requires continued diligence. Qualifying payments must have been made after October 2007, when the program started.

Payments should also be for the “full amount due as shown on your monthly bill” and should be made no later than 15 days after the payment due date. Many loan servicers offer the option to enroll in automatic payments, which could potentially make it easier to pay on-time every month.

Another thing to note is that payments only count toward PSLF if they are “required payments.” This means that any payments made while a borrower has in-school status, during the grace period, or during periods of nonpayment like deferment or forbearance, won’t count as a qualifying payment for the PSLF program.

However, payments that were paused due to COVID-19 will count as though you made those payments.

A borrower will only receive credit for one payment per month. Making payments larger than the monthly minimum or making multiple payments a month doesn’t translate into reaching PSLF faster.

If a borrower pursuing PSLF plans to make an overpayment, it can be worth contacting the loan servicer to confirm the additional payment isn’t being applied to future payments.

A payment will only qualify toward PSLF if there is a payment due, so if a borrower has paid ahead, they may be unable to make a qualifying payment for that month.

For those volunteering with AmeriCorps or the Peace Corps, there are separate rules that make it possible for volunteers to use their Segal Education Award or Peace Corps transition payment toward their student loans.

In certain situations, volunteers in these programs are able to make a lump-sum payment that could count for as many as 12 PSLF qualifying payments.

Student loan qualifying payments don’t need to be made consecutively. For instance, if you had made a series of payments while employed with a qualifying employer, but then switch jobs and no longer work with a qualifying employer, you won’t lose credit for the PSLF qualifying payments you’ve already made.

After making 120 qualifying payments, borrowers can apply for loan forgiveness by filling out an application manually or digitally. After years of hard work, they’ll (hopefully) be able to celebrate the sweet victory of achieving student loan forgiveness.

Buyer Beware: Looking Out for Scams

There are many boxes to check as you pursue loan forgiveness and it can be tricky to navigate the intricacies of the program. But, there is help out there.

The Department of Education offers an online help tool for borrowers pursuing PSLF. It can give borrowers an idea of where they stand and assist them through the process of pursuing PSLF.

An important note, there is no fee associated with filing paperwork for PSLF. If you’ve been contacted by a service that offers to provide assistance for a fee, they’re likely not affiliated with the Department of Education. In a worst case scenario, it could be one of the many scams that prey on confusion and have grown in number as student loan debt increases.

Recommended: 7 Tips to Avoid Student Loan Scams

What If You Don’t Qualify for PSLF?

If pursuing loan forgiveness through PSLF isn’t an option for you, you can explore some alternatives to manage your student loans. One option available is student loan refinancing, which could give borrowers the ability to lower their interest rate or shorten their repayment term. Terms will vary based on personal financial situations.

Refinancing federal loans would eliminate eligibility for programs like PSLF and income-driven repayment plans, so it won’t be right for everyone. To see what refinancing could do for your student loans, take a look at SoFi’s student loan refinancing calculator.

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.

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Senior year in college is often filled with mixed emotions — excitement for all the fun you’re going to have with your friends, eagerness to be done (a.k.a., senioritis), and anxiety about what you’re going to do after you graduate and what the future holds.

While leaving your college years behind can be bittersweet, it’s important to remember that the fun doesn’t stop after you return your cap and gown. By making the most of your senior year, you’ll have the perfect ending for these incredible four years and be ready to tackle life’s next chapter.

Below are key things to keep in mind as you focus on graduation, next steps in building a career, and finally living out your dreams.

Dotting I’s and Crossing T’s

Early in the fall, it’s a good idea to meet with your college counselor to make sure you have all of your ducks in a row in order to graduate. A lot can happen in three years — switching majors, adding minors, and studying abroad — so it can’t hurt to double-check that all of your requirements will be met by the end of the year.

Failing to earn all your required credits can mean delayed graduation, even adding on an extra semester. The finish line is close, but you’ll want to make sure that you stay on track. Also keep in mind that your last year in college is a last chance to take any out-of-the-box classes you’ve always wanted to take but never had time. You may finally have room in your schedule to add some fun electives.

If you’re planning to attend graduate school, you’ll also need to focus on finishing up any required testing and meeting application deadlines. Much like senior year of high school, you’ll begin an anxious time as you wait for acceptance letters to arrive.


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

Getting a Jumpstart on a Job Search

Your senior year in high school was all about preparing for college. Your senior year in college is all about preparing for life after college, a.k.a the real world.

It’s no secret that college graduates flood the job market each June, so getting ahead of the pack can make your search a little easier. Applying for jobs as early as the fall can mean less competition and improve your chances of having a job lined up when you graduate.

Even if launching a full-blown job search during school isn’t possible, it’s a good idea to take some steps toward the professional world.

Consider stopping by the career center to see what resources it can provide. Part of your tuition goes to funding your college’s career services center, so why not get your money’s worth? Most career professionals are ready to help students prepare their resumes and perfect their cover letters, and they typically have job postings from companies looking to hire recent graduates.

Some career centers may offer mock interviews so students can hone those skills, or they may provide support when issues arise during a job search. Popping by between classes to see what services are offered will only take a few minutes.

In addition to your resume and cover letter, you’ll also want to start working on your LinkedIn profile and, if relevant, a portfolio of work samples. Having these resources in a good place during senior year can make it easy to start applying for jobs during school or right after graduation.

Recommended: Jobs that Pay for Your College Degree

Making Connections

As a student, building a professional network may feel impossible, but you’re likely building one in school without realizing it. One easy way to get a head start on a job search, without doing too much work during a hectic final year of school, is to tap into that network, namely your advisors or mentors.

Professors can be great resources to have as you prepare for the unknown of post-grad life. They can provide insights into what positions are available in your field, what you should look for in an employer, and good questions to ask in an interview. You might also ask a professor to look over your resume.

You might also look for a professional mentor through your college’s alumni network or mentor programs and set up an informational interview. Finding a mentor senior year of college can not only help you find your first job, but it can also pay career dividends for years to come.

Whether you start applying for positions while you’re still in school or right after graduation, you may need to provide a list of at least three references. These can be people like internship managers, your thesis professor, your part-time job supervisor, and others who can speak to your skills and work ethic. Now is a good time to reach out and ask potential referees if they would be willing to serve as references.

You may also want to attend and engage in networking at career fairs, career workshops, and other informational events taking place on campus.

Recommended: How to Get Involved on Campus in College

Paying Back Student Loans

Preparing to navigate life after college can be overwhelming, especially when it comes to finances. No one wants to think about student loan payments, but it can be helpful to start making repayment plans before graduation day.

You can begin the planning process by simply looking up the current balance for each student loan you hold, including both federal and private student loans. Take note of when the lender expects payment. Some or all of your student loans could have a six-month grace period before you need to start repaying. This is ideal because it gives you time to get a job after graduation and make sense of your income before you have a new bill to pay.

Lenders typically provide repayment information during the grace period, including repayment options.

With federal student loans, your servicer will automatically place you on the Standard Repayment Plan (a 10-year fixed payment repayment plan). However, you can request a different repayment plan at any time. Typically, you can pick from repayment plans that base your monthly payment on your income or that give you a fixed monthly payment over a set repayment period.

An income-driven repayment plan may be a smart choice if you’re looking to lower your payment. However, these plans also extend the payoff timeline to 20 or 25 years. The Federal Student Aid website has a loan simulator tool that lets you compare all the available repayment options and helps you choose the best one for your specific situation.

For private student loan repayment, it can be best to speak directly with the loan originator about repayment options. Many private student loans require payments while the borrower is still in school, but some offer deferred repayment. After the grace period, you will need to begin making principal and interest payments. Some lenders offer repayment programs with budget flexibility.

Whether you or your parents chose to take out federal or private student loans (or both) to cover school costs, reviewing all possible payment plan options can help make the transition to repayment easier.


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

One Loan, One Monthly Payment

As you enter the repayment phase of your student loans, you might also consider refinancing or consolidating your student debt.

If you have federal student loans, you may qualify for a federal Direct Consolidation Loan after you graduate, leave school, or drop below half-time enrollment.

Consolidating multiple federal loans into one allows you to make just one loan payment each month. In some cases, the repayment schedule may be extended, resulting in lower payments. Keep in mind, though, that increasing the period of time to repay loans usually means making more payments and paying more total interest.

Refinancing, on the other hand, allows you to convert multiple loans — federal and/or private — into one new private loan with a new interest rate, repayment term, and monthly payment. Refinancing can potentially save you money, but generally only makes sense if you can qualify for a lower interest rate than you currently have. For example, refinancing might be a good solution for working graduates who have higher-interest federal loans, such as unsubsidized Direct Loans and Graduate PLUS loans, or who currently have a high-interest private student loan.

You’ll want to keep in mind, however, that refinancing federal student loans with a private lender means giving up federal protections, such as income-driven repayment plans, loan forgiveness for public service, and deferment options.

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.

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College is a transformative phase of life filled with opportunities, challenges, and self-discovery. But between classes, social activities, and newfound independence, college can also be an overwhelming experience. There are numerous opportunities to better yourself, but where do you start?

To get the most out of your time in school, it can be helpful to set and achieve some specific goals. These goals can serve as guideposts, providing direction, motivation, and a sense of purpose during your college years. And, your goals don’t have to be all centered around academics — they can encompass personal development, financial stability, and preparing for the professional world.

Read to learn about the importance of setting goals in college, types of goals to consider, and how to set yourself up for success with S.M.A.R.T. goals.

Good Goals to Complete in College

Setting goals in college can help you identify what you want to achieve academically, personally, and financially, providing a roadmap to follow. Whether you’re just starting school or have a few semesters under your belt, here are some goals you might consider.

Academic Goals to Achieve

Earning a good GPA: At the top of many students’ minds is getting top grades. There are plenty of positives to achieving a high GPA, including more potential for scholarships or landing on the dean’s list. It might be a great resume-builder, too. You could aim for a certain GPA, or work on improving your number from last semester.

Increasing professor facetime: Along with earning good grades, actually making an effort to get to know your professors could go a long way. Using your instructors’ office hours to clarify confusing topics might help you understand class concepts better. And who knows, their references might lead you to a really cool internship down the road.

Completing challenging courses: Rather than choosing the path of least resistance, you might aim to conquer challenging courses that align with your academic interests and career aspirations.

Recommended: The Ultimate Guide to Studying in College

Financial Goals to Set in College

Paying for college: There are all kinds of ways to cover the cost of college, including scholarships, grants, work-study, federal student loans, and private student loans. You’ll want to find the best combination, plus look for ways to save money in college.

Setting up a budget: Establishing a budget might seem pointless when you have little money to work with, but learning how to set up and stick with a simple spending plan can serve you well during your lean college years — and beyond.

Finding an internship: A key objective in college is to get a degree so you can get a great job in your chosen field. One great way to set yourself up for a job that pays well after you graduate is to land an internship related to your major.


💡 Quick Tip: Some lenders help you pay down your student loans sooner with reward points you earn along the way.

Personal Goals to Set in College

Signing up for extracurricular activities: College can be a great time to discover new interests. Curious to learn Japanese? There might be a club for that. Want to blow off some steam on a basketball court? There could be an intramural team for that. You could check with your college’s campus life department to see what’s available.

Improving communication skills: Consider engaging in activities that help develop communication skills, such as public speaking or writing for publications. No matter what your major, these are skills that can take you far in your career and life.

Exploring a new country: Whether you choose to spend a semester in Rome or Rio de Janeiro, studying abroad in college can do more than give you a change of scenery. It can provide the opportunity to expand your cultural views and learn more about people across the world.

Should You Set More Than One Goal in College?

It’s not only okay, but recommended to set more than one goal in college. Pursuing diverse goals allows for a well-rounded college experience and personal development. However, it’s crucial to strike a balance between ambition and feasibility. Setting too many goals simultaneously might become overwhelming and lead to decreased effectiveness in achieving any one of them.

The key to setting — and achieving — multiple goals in college is to:

•   Prioritize It’s important to identify the most crucial goals and allocate more time and resources to them.

•   Break goals into manageable tasks You’ll want to divide larger goals into smaller, actionable steps to avoid feeling overwhelmed.

•   Manage your time Try to manage your time efficiently by creating schedules and allocating specific time blocks for each goal.

What Is a SMART Goal?

S.M.A.R.T. is an acronym that provides a framework for creating well-defined goals. This acronym stands for Specific, Measurable, Achievable, Relevant, and Time-bound. Here’s a breakdown of each component:

•   Specific Goals should be clear and precise, answering the questions of what, why, and how. Specific goals provide a clear focus, avoiding ambiguity.

•   Measurable Goals should have quantifiable criteria for tracking progress and determining when they’ve been achieved. This helps in monitoring advancement and staying motivated.

•   Achievable Goals should be realistic and attainable within your capabilities and resources. They should challenge you but remain within the realm of possibility.

•   Relevant Goals should align with your values, aspirations, and long-term objectives. Ensure that pursuing a goal contributes meaningfully to your overall vision.

•   Time-bound Goals should have a deadline or a timeframe for completion. Setting a timeframe creates urgency and helps in planning and prioritization.

SMART Goal Example for Students

If you really want to get down to business on your goals in college, you could use the S.M.A.R.T criteria to start building them out. For example, what if you’re a commuter student who wants to be more involved on campus? The goal of “being more involved” by itself would not fit the S.M.A.R.T. criteria—it’s too vague.

To be more specific, you could re-word your goal by stating, “I want to join two campus organizations this semester and be on the leadership team for one of them.” In this way, you have specifically called out your goal.

It’s also measurable because the goal requires joining two organizations and serving on the leadership team for one. The goal is attainable because you have access to campus organizations. And, it’s relevant to your college experience.

Then you could break down your S.M.A.R.T. goal into mini-milestones. Going along with this example, you might make a goal to check out the activities fair during school. You could also research campus organizations online and narrow your list down to the two you want to become involved with the most.

Another S.M.A.R.T. goal example for students could be paying for college. Breaking it down using the S.M.A.R.T. criteria, for example, could look something like this:

Specific: I need to come up with $10,000 for college tuition by next year.
Measurable: I can measure this by figuring out how much money I have and how much I need.
Attainable: I can achieve this because there are a variety of resources I can use to help me pay for college.
Relevant: The total amount needed is the same cost as one year of tuition at my school. This will help me continue going to school to get my degree.
Time-bound: This needs to be completed in 12 months so I can deliver the funds to the financial aid office.

💡 Quick Tip: Would-be borrowers will want to understand the different types of student loans that are available: private student loans, federal Direct Subsidized and Unsubsidized loans, Direct PLUS loans, and more.

The Takeaway

Setting goals in college can be pivotal for personal, academic, and financial development and success. By adopting the S.M.A.R.T. goal framework, you can effectively plan and pursue objectives that lead to a fulfilling college experience and pave the way for a successful future beyond your college years.

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.

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.

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As your child enters the “getting into college” phase of their lives, there’s a lot to talk about, from whether it’s better to take the SAT or ACT to how many schools they should apply to. At the same time, it’s important to discuss how your family is going to pay for college and, if debt will be part of the equation, how student loans work.

For one reason, the topic is pretty complicated. For another, even if you plan to help repay any student loans, most qualified education loans are taken out in the student’s name, which means they are personally on the hook for repayment. Maybe your student-athlete or scholar is counting on a full ride. While confidence is a wonderful thing, full rides are exceedingly rare.

Here are six student loan concepts you can discuss with your aspiring college student.

1. Here’s What We Think We Can Contribute

It might be uncomfortable to talk frankly about your family finances, but they almost always determine the amount and types of financial aid your child may qualify for.

It can be important for parents to discuss what they’re able to contribute in order to help their young adults wrap their heads around the numbers, too. How much debt they may need to take on to pay for college could impact where they choose to apply to school, since tuition costs vary widely.


💡 Quick Tip: When shopping for a private student loan lender, look for benefits that help lower your monthly payment.

2. Let’s Forge Ahead With the FAFSA

The first step to hunt for financial aid is to complete the Free Application for Federal Student Aid (FAFSA). While this form has a reputation for being long and complex, a new streamlined FAFSA is being released for the 2024-25 academic year. The new form is scheduled to become available by Dec. 31, 2023 — a delay from the typical Oct. 1 release date.

Based on financial need, a college’s cost of attendance, and FAFSA information, schools put together a financial aid package that may be composed of scholarships and grants, federal student loans, and/or work-study.

Awards based on merit (scholarships) or need (grants) are considered “free money” for college. When they don’t cover the full cost of college, that’s where student loans can come in.

If your income is high, should you bother with the FAFSA? Sure, because there’s no income cutoff for federal student aid. And even if your student is not eligible for federal aid, most colleges and states use FAFSA information to award non-federal aid.

3. Interest Rates: Fixed or Variable

Your soon-to-be college student may not know that there are two types of interest rates for student loans: fixed and variable.

Fixed interest rates stay the same for the life of the loan. Variable rates go up or down based on market fluctuations.

You can explain that all federal student loans have fixed interest rates, which are set each year by the federal government, and that private student loan interest rates may be variable or fixed.

4. Federal vs Private Student Loans

Around now your young person is restless. But press on.

Anyone taking out student loans should learn that there are two main types: federal and private. All federal student loans are funded by the federal government. Private student loans are funded by banks, credit unions, and online lenders.

If your child is going to borrow money for college, it’s generally advised to start with federal student loans. Since federal student loans are issued by the government, they have benefits, including low fixed interest rates, forbearance and deferment eligibility, and income-based repayment options.

Private student loans have terms and conditions set by private lenders, and don’t offer the generous repayment options or loan forgiveness programs of federal loans, but some private lenders do offer specific deferment options.

Private student loans can be used to fill gaps in need, up to the cost of attendance, which includes tuition, books and supplies, room and board, transportation, and personal expenses. A student applicant often will need a cosigner.

5. Another Wrinkle: Subsidized vs Unsubsidized

Financial need will determine whether your undergraduate is eligible for federal Direct Subsidized Loans. Your child’s school determines the amount you can borrow, which can’t exceed your need.

The government pays the interest on Direct Subsidized Loans while your child is in college, during the grace period (the first six months after graduation or when dropping below half-time enrollment), and in deferment (postponing repayment).

With federal Direct Unsubsidized Loans, interest begins accruing when the funds are disbursed and continues during grace periods, and the borrower is responsible for paying it. Direct Unsubsidized Loans are available to both undergraduate and graduate students, and there is no requirement of financial need.

Borrowers are not required to pay the interest while in school, during grace periods, or during deferment (although they can choose to), but any accrued interest will be added to the principal balance when repayment begins.

There are annual and aggregate limits for subsidized and unsubsidized loans. Most dependent freshmen, for example, can borrow no more than $5,500, and no more than $3,500 of this amount may be in subsidized loans.


💡 Quick Tip: Parents and sponsors with strong credit and income may find much lower rates on no-fee private parent student loans than federal parent PLUS loans. Federal PLUS loans also come with an origination fee.

6. Soothing Words: Scholarships and Grants

It’s important to not overlook the non-loan elements of the financial aid package. They can (hooray) reduce the amount your student needs to borrow.

Scholarships and grants are essentially free money, since you are not required to pay the money back. While some schools automatically consider your student for scholarships based on merit or other qualifications, many scholarships and grants require applications.

You may want to assign a research project to your college-bound young adult to look into all of the scholarship options they may qualify for. There are numerous scholarship finders available online. They may also want to talk to their guidance counselor and the financial aid office of their chosen school to learn about opportunities.

The Takeaway

Debt isn’t the most thrilling parent-child topic, but college students who will need to borrow should know the ins and outs of student loans: interest rates, federal vs. private, subsidized vs. unsubsidized, and repayment options.

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.

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.

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.

SOIS1123007

Cheers! Here you are again at the start of the New Year. It’s a fresh start and a great time to think about your goals for the 365 days ahead and how to meet them.

For many people, that may mean taking control of their finances and maximizing their money. There are, of course, all kinds of ways to do this, from bringing in more income to spending less to saving and investing well.

Read on to learn 37 smart, creative ideas that can help you enrich your bank account and net worth in 2024. Try one or a bunch, and see how they can contribute to your financial health this year.

Smart Financial New Year’s Resolutions

Start 2024 by getting on the path to financial wellness. Here are 37 money-saving resolutions to help you maximize your cash in the year ahead.

1. Save 20% Every Month

Here’s our first New Year’s resolution: Consider ramping up your savings by following the 50/30/20 budget rule. This wise formula says to save 20% of your income every month. The other 50% of your money should go toward your needs (housing, food, utilities, debt), and 30% can go toward discretionary items, or the wants in life.

2. Try a Weekly Budget

With so many transactions coming in and going out (and so many of them being automated these days), keeping a monthly budget can seem intimidating. How do you track and manage all of the credits and debits? Are you going to overdraw your account?

There are many different budget methods, but with a weekly vs. monthly budget, the amounts you have to track are smaller and more manageable, and you may be more likely to stick to them. Try making a spreadsheet of all your weekly income and expenses, and then decide where you can cut back to save money.

3. Decrease Discretionary Spending

Has your once-a-week matcha latte habit become a daily thing? And exactly how many streaming platforms do you subscribe to? Spending money on entertainment, takeout, coffee, and other wants can add up quickly. So when you create your budget, figure out ways that you can reduce spending on things you don’t actually need. Put the savings towards a goal like creating an emergency fund or saving for that trip to Croatia.

4. Switch Up Your Budget Cuts

Is one of your New Year’s resolutions to reduce your spending, as noted above? If so and you try to slash everything at once, you can wind up feeling deprived and losing motivation. Instead, you might try cutting back on, say, those fancy coffees one month and on movies the next. You’ll still save money, but the rotating nature of cuts and the challenge of “no flat whites this month” can keep it interesting.

5. Stop Storing Your Credit Card Information

Yes, adding your credit card details to your online accounts makes it super easy to check out, which is exactly the problem. That simplicity can also lead to increased spending on impulse purchases. Instead, remove those saved cards and force yourself to manually type in your credit card number when you want to purchase something. If you have to get up to find your card, that can be a way to reflect for a moment and potentially avoid impulsive purchases that you don’t actually need.

6. Find a Savings Buddy

Economizing can be easier when you have a kindred spirit to support you. If you have a friend or relative who is also trying to save money or has succeeded at doing so in the past, recruit them to help you. The two of you can text when you need advice on a big purchase you are contemplating or when bills pile up and then stay strong together.

7. Schedule Automatic Transfers

When your paycheck hits your checking account, it likely makes you feel flush and ready to splurge a little. Instead, pay yourself first. Make it a 2024 resolution to set up automatic transfers from your checking to your savings account. All you have to do is set the amount and the date you want the recurring transfer to occur.

Or you can likely send part of your paycheck’s direct deposit into your savings (ask your HR team how to set this up). Either way, you can watch your savings blossom automatically.

8. Earn Credit Card Rewards

If you’re not already earning rewards with your credit card, make 2024 the year to do so. With credit card rewards, you can get cash back when you make purchases. Then, once you reach a certain amount, like $25, you can transfer it into your savings account or to pay down your balance. As long as you don’t overspend and wind up with debt issues, credit cards can be helpful in this way when it comes to reaching your savings goals.

9. Round Up Prices

If you haven’t already tried a round-up app, consider doing so this New Year. These work by, say, charging you $7 for a purchase that really cost you $6.35, and depositing the additional 65 cents into savings or putting it towards your debt. Acorns is an example of this kind of app, but there’s a good chance your bank offers this feature as well. Rounding up can help move you towards financial security.

10. Pay Off High-Interest Credit Cards

Credit card interest rates are notoriously high, with rates topping 20% on average at the end of 2023. If you’re not careful, you could be spending hundreds of dollars every month on credit card interest. Create a plan to become debt-free for 2024, and prioritize paying off your high-interest credit cards. For example, you could use the debt avalanche method, where you pay off the card with the highest-interest rate first and then move on to the card with the next highest interest rate, and so on.

11. Sign Up for a Balance Transfer Credit Card

If you have credit card debt, you may want to pay it down faster as a New Year’s resolution for 2024. Signing up for a balance transfer credit card could help. You’ll typically pay 0% interest on your debt for a certain period of time (say, six to 18 months), before your interest shoots back up.

Just make sure you pay off your balance before that introductory period is over, or else you’ll be right back where you started. And if the interest rate is higher than your current credit card, your situation could be made worse if you don’t pay it off in time.

12. Recycle

Yes, it’s more convenient to toss cans and bottles in the trash. But each one probably could net you five to 10 cents if you redeem them, which is typically easily done at your local supermarket. Plus it’s good for the planet. While it may not yield the down payment for a house, every little bit of cash put into savings can help, especially when compound interest kicks in.

13. Find a Side Hustle

If you have any free time at night or on the weekends, then you can freelance or work some other sort of side hustle. Whether it’s tutoring school children or driving for a rideshare service, those extra dollars can make a serious impact on your savings. There are plenty of low-cost side hustles to consider. Even renting a room in your house on Airbnb could put hundreds or thousands of extra dollars in your account as the months go by.

Recommended: 39 Ways to Make Passive Income

14. Sell Your Unwanted Items

Decluttering your home may be another New Year’s resolution you have for 2024. How about merging that resolution along with a money-saving resolution? There are plenty of places to sell your stuff, from clothing to electronics to cookware, whether it’s gently or never used. Consider sites like eBay, Craigslist, and Facebook Marketplace.

15. Save for Retirement

If you’re young, you may feel like you don’t have to worry about retirement just yet. But the truth is that time is likely to pass faster than you think it will. Plus, if you start saving right away, you’ll make more money on your investments through the power of compound interest. Take advantage of your company’s 401(k) matching policy, if they have one, and beef up your retirement savings in the New Year.

16. Create an Emergency Fund

If you were to lose your job tomorrow, would you have enough money to last you until you found something new? What if you had a medical emergency or your house suddenly flooded? Having at least three to six months’ worth of savings in an emergency fund will help you cover any sudden, unexpected expenses, and help ensure that your budget and financial goals won’t be derailed.

17. Use Coupons for Groceries

If you’re not a couponer already, 2024 is a great time to start saving this way. Check websites like Coupons.com and P&GGoodEveryday or your weekly newspaper for the latest deals and discounts at your local grocery stores and other retailers. It can be an easy way to make sure you aren’t leaving money on the table.

18. Buy Generic

Did you know that generic products might be the same as name-brand products you love but without the fancy label? Whether you’re at a grocery store or a pharmacy, look into buying those store-brand and generic products instead, because you could end up saving money while still purchasing high-quality products.

19. Choose a Day to Review Your Finances

In order to stay on top of your financial goals in 2024 (or any year, in fact), it’s helpful to set aside one day a week to go over your spending. Pay your bills and check your accounts on this day as well to ensure you’re meeting your benchmarks.

20. Create an Investment Portfolio

The average interest you’ll earn on a traditional savings account is only 0.61% as of the end of 2023. But if you research different investments like stocks and bonds, you’ll see that the market historically earns 10% annually on average, though past performance is no guarantee of future returns.

Perhaps 2024 is a good year to invest in the market or invest more if you are already in the market. Just make sure you invest according to the risk you are willing to take. For instance, if you don’t have much to invest, then you might stick to investing in high-performing, more established and stable companies. But if you have money to spare, you may try investing in riskier, smaller and newer companies.

21. Look Into a High-Interest Savings Account

A high-interest savings account is going to give you more bang for your buck when it comes to your savings. The rates frequently fluctuate, but you may find annual percentage yields between 4% and 6% as of December 2023 — significantly higher than the rate of a standard savings account rate.

22. Use Cash Instead of Credit Cards

If you use cash instead of credit and debit cards, you may be less likely to spend money in 2024. Credit and debit cards can make it easy to swipe and tap without thinking about the consequences. Paying $100 in cash for your groceries can often have much more of a psychological effect than simply swiping your card, and it can help encourage you to save more money.

23. Look Into a New Bank

Are you aware of all the monthly bank fees you’re paying just to keep your account open? If you overdraft your account, do you get charged a hefty fee? Does your bank charge you to use an ATM outside of their network? Examine all the fees you are currently paying and then look into competitors to see if they charge lower fees — or perhaps no fees at all. Online banks vs. traditional banks typically charge fewer (or no) fees and pay higher interest rates.

24. Start a Coin Jar

Why not go old-school in 2024? Put all your loose change into a coin jar, and then at the end of the month, take it to your bank to cash it in. This is better than using a Coinstar machine, which will typically take 11.9% of your money when you convert it into cash. Note: You may have to roll the coins before depositing at the bank, but this can be done while listening to your favorite podcast. Or consider it a mindfulness moment.

25. Use Financial Apps

Financial apps are an easy way to keep track of your spending in the New Year. All you have to do is link your financial accounts to these apps to see how much you’re spending and what you’re spending your money on. These apps will even give you suggestions on how to save money and improve your finances, as well as remind you when bills are due. Your bank is likely to offer a tool like this, which can be especially convenient as you track your spending and pay bills.

26. Negotiate Your Bills

Think you’re spending too much on cable? Is your cell phone company ripping you off? Be a savvy consumer, and tackle it in 2024 to save more. Call your service providers, and try to negotiate a lower monthly rate. If you aren’t successful, you could always use services like Trim to negotiate your bills down so you can save more every month.

27. Do Meal Prep

You know how it goes: Suddenly, it’s 7pm, you’re starving, and haven’t even started to think about dinner so you wind up ordering in. Avoid that in the New Year by preparing your meals in advance. That way, you will have food in the fridge when you’re hungry, and you won’t be tempted to eat out. It’s also a good idea to bring lunch to work so that you won’t be tempted to purchase pricey food on your break with coworkers.

28. Cancel Automatic Subscriptions

Go through your bank statements to see if there are any automatic subscriptions you don’t need or remember signing up for. Cancel them immediately. If a company was charging you without your knowledge, you may be able to request your money back.

29. Decrease Energy Costs

Not having an energy-efficient home can be costly. You may be wasting hundreds of dollars each month because you’re leaving the lights on or running the heater or A/C for hours on end. You can make a few changes like sealing up drafty windows and attics to start saving money on your utility bill in 2024.

30. Unsubscribe from Email Lists

If you have a problem with making impulse purchases, then unsubscribe from your favorite retailers’ email lists. That way, you won’t be as tempted to spend because you’ll no longer receive news about flash sales or buy-one-get-one offers.

31. Trade in Your Gas-Guzzling Car

Gas prices have fluctuated considerably lately but can still be quite high. Trading in your SUV for a more efficient vehicle could be a smart move. Hybrid and electric vehicles are good options as well. Though you may pay a premium for them up front, you’ll save a lot on gas in the long run.

32. Ask for Discounts

Here’s a New Year’s resolution to adopt: Whenever you’re purchasing tickets, booking a hotel, or going to an event, ask if there are any discounts. You may be able to snag a discount if you’re a student, a senior, a member of the military, a resident of the state, or even an AAA member.

33. Stop Buying Retail

When you go to retail stores, you’re going to pay full price. Instead, when reasonable, look for used items on sites like eBay and Facebook Marketplace (though be wary of fraud and scams that can happen when purchasing this way). Flea markets and thrift stores may also have the goods you might need (cookware, lamps, you name it) at steeply discounted prices.

34. Join a Warehouse Club

Enlist a friend to join, too, and then share the spoils of buying in bulk. Since the likes of Costco and BJ’s tend to have mega-sizes and packs, you can split the low-cost food and other items you purchase. Say, you buy a dozen burgers and keep half; your friend buys the same number of buns and gives you six. It’s a win-win.

35. Go on a Spending Freeze

Don’t spend any “out and about” money for a week and see how you feel. This means you’ll need to brew your own morning coffee and eat homemade meals. You’ll also need to avoid downloading movies, but at the end of the week, you should be able to more easily distinguish your wants from your needs. This can help make budgeting that much easier.

36. Save Your Tax Refund

What to do with your tax refund? If you get one this year, instead of spending it on a new mobile device or a vacation, put it into your savings. It’ll accrue interest, and you can then put it toward a larger purchase or goal down the line.

37. Work Out at Home

This one is a double whammy if you want to get fit in the New Year, too. Purchase some weights online, and tune into your favorite trainers on YouTube to start burning fat and gaining muscle. You can cancel your expensive gym membership and forget pricey personal trainers while feeling better about yourself in 2024.

Looking Into SoFi Checking and Savings

Here’s another good New Year’s resolution: Make sure you’re happy with your banking partner.

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.

Photo credit: iStock/sofirinaja

SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2024 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.
The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

SoFi members with direct deposit activity can earn 4.20% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. 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 (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer 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 Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. SoFi members with direct deposit are eligible for other SoFi Plus benefits.

As an alternative to direct deposit, SoFi members with Qualifying Deposits can earn 4.20% 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 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 a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.20% 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 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 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 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 Direct Deposit or Qualifying Deposits until you have Direct Deposit activity or $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Direct Deposit.

Members without either Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, will earn 1.20% 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 10/31/2024. There is no minimum balance requirement. Additional information can be found at https://www.sofi.com/legal/banking-rate-sheet.

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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