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Sometimes, student loan debt can start to feel like it’s slowing you down. Maybe the interest rate is too high, you’re not happy with your loan terms, or you’re frustrated with the lender’s customer service. If so, you have the right to look for a new lender and transfer your debt to a different company.

However, you can’t simply ask a new lender to take on your debt with the same terms. To transfer your student loan, you generally need to take out a new loan with a new lender or servicer. The process of switching will be different depending on whether your student loans are private or federal, and may involve consolidating the loan or refinancing.

If you’re thinking about a loan transfer, keep in mind that there’s no guarantee you’ll end up in a more favorable situation just by switching lenders. Here’s what you need to know about student loan transfers.

How Do I Transfer Student Loans to Another Private Lender?

If you have private student loans, the main way to transfer your debt to another lender is to refinance. This involves taking out a new loan with a different lender and using it to pay off your current student loan(s). Moving forward, you only make payments on your new loan to your new lender.

If you have multiple private student loans, refinancing can simplify repayment by giving you only one monthly payment to manage. And, if your financial picture has improved since you took out your original private student loan(s), you may be able to qualify for a lower interest rate. Another perk of refinancing is the ability to lengthen your repayment timeline to reduce your monthly payment amount. Keep in mind, though, that a longer repayment will generally end up costing you more in the long run.

You’ll need to meet certain criteria to be eligible for private student loan transfer via refinancing. Most lenders have a minimum income threshold as well as a minimum credit score (often in the upper 600s). If you don’t meet the income or credit requirements, you may be able to qualify by adding a cosigner.

Many lenders offer prequalification, which lets you see what type of rates and terms you may be able to qualify for without impacting your credit score. To find the loan with the best rate, it can be a good idea to shop around and compare lenders through prequalifying. Once you find a lender you want to work with, you’ll need to officially apply for the student loan refinance.


💡 Quick Tip: Ready to refinance your student loan? With SoFi’s no-fee loans, you could save thousands.

Can I Transfer My Sallie Mae Loans to Another Lender?

Currently, Sallie Mae only offers private student loans. Prior to 2014, however, the lender serviced federal student loans. If you want to refinance a Sallie Mae loan you took out before 2014, you’ll need to check whether it’s federal or private before moving forward.

If you took out a Sallie Mae loan after 2014, it’s a private student loan, and you can refinance the loan with another private lender. This might be a good idea if you can qualify for a lower interest rate.

What’s the Difference between a Lender and a Loan Servicer?

While the terms lender and loan servicer are often used interchangeably, they are not the same thing. Here’s a look at how they differ.

Student Loan Lender

A lender is an institution or company that originates and funds the student loan. In other words, they’re the one lending you the money. For example, if you apply for a federal student loan, the federal government is your lender. If you apply for a private student loan, you can choose between a number of private lenders.

A Student Loan Servicer

A federal student loan servicer is the middleman between you and the federal government (the lender). Servicers collect your student loan bills and keep track of whether you pay them on time. They will help you if you’re having trouble with your repayment plan or need to change your address or other personal information. You do not get to pick your servicer.

During the course of your federal student loan, your servicer might change a few times. For example, if you had a loan with Great Lakes, it was likely transferred to Nelnet some time between March 2022 and June 2023. You’ll typically get notified of a student loan transfer two two weeks prior to your transfer date.

If you have a federal student loan and you’re not sure who your servicer is, you can log in to studentaid.gov to find out.

Can I Change My Student Loan Servicer?

You can’t change your federal student loan servicer directly. However, if you’re willing to do some legwork, there are two main ways to move your federal student debt to a new servicer or lender.

If you want to keep your federal loan status but switch to a different loan servicer, you can transfer your loans through consolidation. If your main objective is to save on interest, you may want to look into refinancing your student loans with a private lender. Read below to learn more about each scenario.

What about Consolidating My Student Loans?

One way to switch loan servicers is to consolidate your federal student loan(s). This allows you to transfer the debt to a different servicer but keep your federal student loan status, since the lender will still be the federal government.

The consolidation process lets you combine several federal student loans into a single, easier-to-manage Direct Consolidation Loan. While it does not reduce your interest rate, it can lower your payment by extending the term. The downside is that the extended term will mean you pay more in interest over time.

Since not all federal loans have the same interest rate, the interest rate on a new Direct Consolidation Loan will be a weighted average based on your current loan amounts and interest rates. Any unpaid interest is added to your principal balance. The combined amount will be your new loan’s principal balance. You’ll then pay interest on the new principal balance.

Consolidation can be a good option if you are unhappy with your servicer or have several servicers and want to simplify your student debt by having only one payment.

If you have Federal Family Education Program or parent PLUS loans, you need to consolidate to be eligible for income-driven repayment, public service loan forgiveness, and other relief programs.

You can complete a consolidation loan application at studentaid.gov.

What About Student Loan Refinancing?

Another way to change your federal student loan servicer is to refinance your federal student loans with a private lender. If you also have private student loans, you can refinance them together with federal loans, giving you a single loan payment each month.

Generally, refinancing federal student loans only makes sense if you can qualify for a lower interest rate. If you have higher-interest federal student loans, such as graduate PLUS loans or Direct Unsubsidized Loans, you may be able to get a lower rate by refinancing. To qualify for the best rates on a private student refinance, you generally need to have strong financials (or can recruit a cosigner who does).

It’s important to note that refinancing federal student loans with a private lender means losing federal protections, such as income-driven repayment plans, federal deferment and forbearance programs, and loan forgiveness options like Public Service Loan Forgiveness (PSLF).

If you’re interested in refinancing your federal loans, it’s a good idea to review offers from multiple lenders to find the best deal. Many private lenders will allow you to prequalify via a soft credit check so you can see your likely new interest rate without negatively impacting your credit score.


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

What About Transferring My Student Loan Balance to a Credit Card?

You generally can’t pay federal student loans with a credit card. If you have private loans, however, another option for student loan transfer is to move the balance onto a credit card and pay your monthly bills there. Some credit card issuers allow student transfers, but not all.

Generally speaking, this tactic only makes sense if you can qualify for a card with a 0% introductory rate and can pay off the entire balance before that promotional period expires (often 15-21 months). Otherwise, you could be left paying even more in interest than you would with the original loan.

To see if you can manage this repayment schedule, simply divide your loan balance by the number of months you would need to pay it off before interest applies. Also check to make sure the credit card offers a high enough credit limit to accommodate your loan, and find out if there are any transfer fees.

If you decide it’s a good deal and are confident you can make it work, you would apply for the credit card and, once approved, give your credit card account details to your loan servicer. Your credit card issuer would then pay off your private student loan debt and move the balance to your credit card account. Moving forward, you only make payments to the credit card issuer.

Is It Possible to Transfer Student Loans From Parent to Student?

The federal government does not offer a way to transfer Parent PLUS loans to the child. However, if you’re looking to have your Parent PLUS loans transferred to your child, refinancing the loans with a private lender allows you to do that.

To make this type of loan transfer, you’ll first need to identify Parent PLUS refinance lenders that allow loan transfers. After that, your child may want to prequalify with a few of these lenders to see where they can get the best rate.

If your child meets the lender’s qualifications on their own, you can fully transfer the loan to them. If they don’t, you can serve as a cosigner on the refinanced loan and work with them to meet the lender’s cosigner release requirements. Many lenders allow cosigner release after a set number of successful payments.

The Takeaway

If you’re interested in transferring your student loans to a new servicer or lender, you have some options. If you have federal student loans, you can consolidate your loans to get a different servicer. If you have federal, private, or a mix of both types of student loans, another option for loan transfer is to refinance your loans with a private lender.

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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While a college education can help prepare students for life, taking advantage of the professional network college offers can help launch your career. Whether trying to land a summer internship, get that first job out of college, or apply to graduate school, a letter of recommendation from a professor can be helpful.

Although requesting this is common practice, it can still feel nerve wracking to broach the subject. Keep reading to learn helpful tips to receive a glowing letter of recommendation from a professor.

1. Asking a Professor Who Knows You and Your Work

There are several factors to consider when deciding who you’ll ask for a letter of recommendation. Taking stock of which professors actually know your interests and goals, not just your name, is something to consider right away.

A strong letter of recommendation can involve praising a student’s personal character and highlighting their goals and ambitions. For this reason, choosing a professor you’ve personally interacted with, whether through class discussions or during office hours, could be beneficial.

If you’ve taken several courses with a professor, they may be able to showcase how you’ve grown throughout your time in college.

Since a professor will also be attesting to your academic merit, it can be helpful to start by identifying who has seen samples of your strongest work throughout college. For example, a personal essay or in-person presentation that earned a strong grade might indicate that a professor valued your work.

2. Choosing a Professor Who Specializes in Your Field

Although a letter of recommendation is foremost about your own skills and attributes, also of benefit can be a professor’s own credentials within an industry or academic field you are targeting.

A letter of recommendation from an esteemed and notable professor could help you stand out in a competitive group of applicants.

Many professors have built up extensive networks from academic conferences and working with faculty at other universities and in the private sector.

Though they may not have contacts at the company, organization, or university you’re applying to, their advice and connections in a specific sector or academic discipline could prove valuable as you begin your job search. As academic professionals, they may have insight on the return on education for different graduate degrees and careers.

Often, jobs or graduate school applications require submitting more than one letter of recommendation. Choosing a combination of references who can highlight your strengths and character and carry respect in your desired field could further enhance your candidacy.

3. Asking in Person, if Possible

Given the importance of the request, asking in person can show that you’re serious about your future and respectful of a professor’s time.

For students currently enrolled in school, finding time to ask a professor for a letter of recommendation may be as simple as making an appointment during their office hours.

If you’re studying abroad or have already graduated, reaching out via email may be your only feasible option for starting the conversation. To further demonstrate your commitment, you might ask to arrange a phone or video call.

4. Making a Personalized and Specific Request

The average college has a student to faculty ratio of 14-to-1, so it’s not uncommon for professors to have several students ask for letters of recommendation each year. Still, that doesn’t mean every request is guaranteed a response or agreement to receive a recommendation.

Out of consideration for a professor’s busy schedule, making a request that’s tailored to them and clearly outlines what you need may increase your chances of success.

To personalize the request, consider reminding them which of their courses you took, a key project or assignment, and how they influenced your academic and career goals. Next, providing a concise explanation of the position or program you’re applying for and what it means to you is an opportunity to convey your own professionalism and passion.

Since writing a letter of recommendation is a favor, sending a courteous request that allows a professor to opt out could help avoid a lukewarm reference. A well-crafted request makes it easy for the professor to quickly decide if they have enough knowledge about you and the position to write a letter of recommendation.

5. Providing Information to Write the Recommendation

Even if you have a strong relationship with a professor, the quality of the recommendation can benefit from supplemental information. For instance, providing a resume, college transcripts, personal statement, and a sample of work can help jog their memory and give them a blueprint of your experience and accomplishments to draw from.

It can be helpful to include a job description or, for a graduate program, admissions information. This could help a professor connect your academic knowledge and experience to the job or program’s desired qualifications and skills.

This is also the time to provide information and guidance for submitting a letter of recommendation. Some typical considerations to include are where to send the letter, any relevant deadlines, and to whom it should be addressed.

6. Giving Plenty of Notice

Asking your professor several weeks, if not months, before the recommendation is due can convey respect and appreciation for their time and effort and help ensure submission deadlines are met. Also, it can give you time to regroup and consider other options if a professor or two declines.

7. Keeping Them Updated Though the Process

Professors typically have busy schedules, so probably won’t keep thinking about your job search or grad school application after the letter of recommendation has been written and sent. Letting them know when you have interviews and other updates can help them be prepared should they receive a call from an employer or admissions office.

8. Saying Thanks and Staying in Touch

Besides creating good karma, thanking a professor is another opportunity to foster a good relationship with them. They might become a mentor to you, especially if you’re pursuing a job or education in the same field.

You might apply to another job or a graduate program in the not-so-distant future and want to ask for another recommendation from the same professor.

Instead of starting from scratch each time you apply for a new job, you may want to periodically update academic and professional references along your career path and as your goals change.

Not only can this make for an easier request and stronger recommendation next time around, it may lead to more professional opportunities and meaningful relationships.

The Takeaway

Keeping up with former professors can be a pleasant way to reminisce about college years. Another not-so-pleasant reminder can be student loans.

Like many students, you may have taken out loans to pay for college and/or graduate school. Refinancing your student loans may be an option to help with repayment.

Keep in mind, however, refinancing federal student loans with a private loan means the borrower forfeits all federal loan benefits, such as income-driven repayment plans, loan forgiveness programs, access to deferment or forbearance, and other forms of federal student loan debt relief.

On the flip side, refinancing federal student loans might offer lower interest rates or a shorter term.

With SoFi, student loan refinancing could reduce the overall cost of your student loans and get you out of debt sooner when refinancing to a shorter term. Applying online is free and can be done in a matter of minutes.

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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Gearing up for a Master of Business Administration program involves a lot of prep, especially when it comes to taking the GMAT™ — The Graduate Management Admission Test. It’s a standardized test that assesses potential business school students.

The GMAT was created by the Graduate Management Admission Council (GMAC) and is now the most widely used assessment for graduate management admissions.

It’s available in more than 100 countries and taken by more than 100,000 students annually.

The exam is important for prospective MBA students because it may carry a lot of weight in the application, with some experts estimating it accounts for up to 22% of admissions decisions.

Because of this, getting prepared for the GMAT is crucial to getting into an MBA program.

Important Facts About the GMAT

There are four sections in the GMAT: quantitative, verbal, integrated reasoning, and analytical writing. These sections are meant to test a student’s general knowledge — they’re not specific to business knowledge.

The total score a student can receive for this exam will fall somewhere between 200 and 800. This score is a combination of verbal and quantitative questions.

Students will also be given scores for each individual section. The section scores for the verbal and quantitative sections range from zero to 60.

The integrated reasoning score, which ranges from one to eight, requires students to analyze graphs and tables.

The analytical writing section is scored from zero to six and is based on how well students can analyze and write about an argument given in a provided text.

There is no set score that students must achieve to be accepted into a program, but students can figure out an estimate of how well they need to do by researching the average score accepted students got on their GMAT exam.

This can give prospective students a good idea of what score they should aim to receive to be considered for acceptance to a particular program.

Making a Study Plan

Making a GMAT study plan depends on when applications are due, which will differ by school.

It’s recommended that students take the exam at least three to four months before their application deadline. This will give students enough time to retake the test if necessary. It can be taken up to five times within twelve months, with a lifetime limit of eight times.

Once students know their application deadline, they can make a plan for when they want to take the exam. Exams are available year-round, and students can register to take it in person or online at mba.com.

Each student will have to determine how much preparation is right for them, but usually, it’s recommended to spend three to six months preparing for the GMAT.

According to GMAC, the makers of the exam, students who studied 60 hours or more scored 500 or higher.

Studying more isn’t a guarantee of a high score, but it seems to help a majority of students find success. With this information, students can create a study plan that suits them and their timeline best.

Recommended: The Ultimate Guide to Studying in College

Study Tips for the GMAT

With 60 or more hours of preparation recommended, how can students best spend those hours?

Here are some tips on how to study for the GMAT that may help students make the best of their prep time.

Taking Practice Exams

Familiarity with the format of the test means there are few surprises. Students will be familiar with each section of the test, the order of the sections, and how the instructions are worded.

Studying the content is important, but so is knowing what to expect when test day comes.

The most effective way to use practice tests is to take one first and use it as a baseline so it’s easy to see where improvements need to be made and how much progress is being made after each consecutive practice test.

When taking practice tests, students should try to reproduce the test experience as closely as possible, in a similar environment and with the same time constraints that the real test has.

The time allowed depends on whether the test is taken in person or online. The online exam takes two hours and 45 minutes, whereas the in-person exam takes three hours and seven minutes because it includes the analytical writing assessment.

Taking practice exams is also a good way for students to learn how to pace themselves through each section of the test.

Strategies recommended are keeping a consistent pace throughout the entire exam, keeping in mind how many questions are in each section, and estimating how much time is allotted for each question.

•   The quantitative section includes 37 questions over 75 minutes.

•   The verbal section gives test takers 75 minutes for 41 questions.

•   The 12 integrated reasoning questions average two minutes and 30 seconds each for the section’s time allotment of 30 minutes.

Students may choose to use official GMAT exam prep packages, which vary in cost (one is free).

Hundreds of quantitative and verbal questions, as well as integrated reasoning questions can be accessed through these official packages.

Students can also purchase unofficial GMAT practice tests if they need more resources.

Tutoring and Peer Study Groups

For students who want extra help preparing for the GMAT, getting a private tutor, taking a prep course, or finding a study group may be options to consider.

A benefit to these strategies is the addition of regular feedback and accountability, which can help students stick to their GMAT study plan.

For students with a tighter budget, finding a GMAT support group and free practice exams may be more affordable routes.

Staying Healthy

Performing well during a stressful examination can be made easier by maintaining good physical and mental health. It’s recommended that students get plenty of rest in the days before the exam, as well as keep up a healthy diet.

Both rest and nutrition can impact physical wellbeing. Going into the GMAT in good physical condition can help students reduce stress and build confidence.

During practice tests, students can practice stress management techniques, which may make it easier to use them during the official test.

Test-taking anxiety is a common phenomenon, and each student may want to learn which coping techniques work best for them.

What About Finances?

Students who are considering an MBA program may be shocked when they see the high cost of tuition. According to Education Data Initiative, the average cost of an MBA program is $71,880. However, this can range from $22,000 to well over $100,000 depending on the school.

Options for decreasing the cost of earning an MBA may be getting a master’s degree online or getting financial aid to help cover the cost.

There are a few options when it comes to paying for graduate school.

Apply for Federal Financial Aid

Filling out the Free Application for Federal Student Aid (FAFSA®) as a graduate student means the aid is given based on the student’s income, not their parents’. This could help students receive more federal aid than they did as undergraduates.

After submitting the FAFSA, students will receive their Student Aid Report (SAR), which provides information about their federal student aid eligibility.

The schools to which a student has applied and been accepted will send a financial aid package offer letter, and the student can decide whether to accept or decline the offer.

Federal student financial aid can come in the form of work-study, grants, or loans. Grants usually don’t need to be repaid, but loans do. Graduate students are not eligible for subsidized student loans, only unsubsidized, so interest will start accruing as soon as the loan is disbursed.

Work a Part- or Full-time Job

Another option may be working while getting an MBA, with some employers helping to pay for tuition. There are more part-time and online MBA options than there used to be, making it easier for students to work while finishing school.

Apply for Scholarships

Students can also apply for scholarships through the school they are attending, as well as from private or professional organizations. Scholarships usually vary in their eligibility requirements, and it’s recommended that students seek out and apply for all they may be eligible for.

Use Private Student Loans

Another option for funding an MBA program may be private student loans. Private student loans do not come with the same benefits and protections that federal loans do, like income-driven repayments and student loan forgiveness. The interest rates and repayment options vary by lender, so students are encouraged to do their research carefully before considering this option.

The Takeaway

Students who already have student loans from their undergraduate education may want to consider refinancing their student loans, which could mean a lower interest rate or a repayment plan that works better for their particular financial situation.

The choice to refinance student loans depends on many factors, like whether those loans are federal or private and whether or not the new loan will be beneficial to the borrower. Figuring out how to prepare for and pay for graduate school can feel overwhelming, but help is available for both.

Keep in mind, though, that refinancing federal student loans means you’ll no longer be eligible for federal benefits, including income-driven repayment plans and student loan forgiveness. If you’re currently using or plan on using federal benefits, it’s not recommended to refinance your federal student loans.

If, however, refinancing makes sense for your financial situation, consider SoFi. With just one application, SoFi compares rates and lenders for you, all in a matter of minutes.

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 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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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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