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Researching the most affordable places to live might be on your to-do list if you’re hoping to move to an area with a lower cost of living. Reducing household expenses can be one of the best ways to start building wealth, or at the very least, create some financial breathing room.

We’ve put together a list of the most affordable places to live in the U.S., based on things like housing costs and overall value for the money. Keep reading to learn which cities are rated as the most budget-friendly places to call home.

Most Affordable Cities in the US

If you’re considering how to move to another state and are interested in finding the most affordable places to live in the U.S., it helps to know what makes one city better than another. Things like housing costs, the cost of utilities, and what you’ll spend on food, transportation, and entertainment can all factor into your decision if you’re planning a move.

Keep in mind that the cost of living is not static, which can affect how affordable a city is at any given time. Additionally, the cost of living by state can vary dramatically based on factors like the size of the population, demand for housing, availability of jobs, tax laws, and average household incomes.

💡 Quick Tip: We love a good spreadsheet, but not everyone feels the same. An online budget planner can give you the same insight into your budgeting and spending at a glance, without the extra effort.

How We Found the Cheapest Places to Live

We compiled our list of the most affordable places to live in the U.S. based on the cost of living as it relates to housing. Specifically, we considered median rents for a one-bedroom apartment and median home sale prices for individual metro areas across the country. The cities that had the lowest cost of living in the U.S. overall, based on those criteria, are the ones that made the list.

What are some characteristics of the most affordable places to live? In general, the list includes:

•   An accessible housing market that isn’t pushing homeowners or renters to the limits of their budgets

•   Utility prices that are at or below the national average

•   Lower tax rates, including income tax, sales tax, and property tax

•   Pricing for groceries and fuel, as well as other goods and services, that align with the typical household income

Do the cheapest places to live always check all of these boxes? Not necessarily. But the most affordable places to live typically offer a cost of living that’s below the national average.

With that in mind, here are 10 of the cheapest places to live in the U.S.

1. Hickory, North Carolina

Median home price: $288,000

Median rent: $879

Hickory may be an ideal place to live if you love the outdoors. There’s plenty of access to hiking and biking trails and mild temperatures are perfect for kayaking or tubing down the Catawba River. In terms of affordability, Hickory offers housing and rental prices that are well below the national average. Plus, the city offers the additional advantage of being close to both Asheville and Charlotte.

2. Brownsville, Texas

Median home price: $225,500

Median rent: $700

Brownsville offers the dual advantages of moderately priced housing and being located in a state with no income tax. Home prices rise the closer you get to the Gulf of Mexico, but there are still plenty of budget-friendly options to choose from. Cold weather is a rarity here, which is a plus if you’re looking to move to a warmer climate. Keep in mind, however, that hurricanes and tropical storms occasionally pay visits to the Texas coastline.

3. Fort Wayne, Indiana

Median home price: $230,300

Median rent: $1,149

Fort Wayne could be ideal for home buyers looking for affordable housing. Renters don’t fare quite as well, as median rental prices are higher than some of the other cities included in our rankings. Overall, however, Fort Wayne has a low cost of living, and it offers a quiet place to call home while still having plenty of the amenities you’d expect to find in a bigger city.

4. Dayton, Ohio

Median home price: $207,600

Median rent: $736

Dayton is one of the most affordable places to live for both homeowners and renters alike, with home prices and rents that are well below the national average. The city of Dayton could be a good fit for families who are looking for access to a strong public school system, or for single people and childless couples who desire a relaxed pace. There are plenty of outdoor spaces to enjoy, as well as numerous options for dining and entertainment.

5. Sioux Falls, South Dakota

Median home price: $354,500

Median rent: $815

If you’re looking for an area with a low cost of living that experiences all four seasons of weather, Sioux Falls might be on your list. Housing is a little more expensive here compared to some of the other cities in our rankings, but rent prices may be appealing if you’re not quite ready to buy. There’s a thriving job market, and Sioux Falls offers plenty to do, including aquariums, museums, and parks.

6. Knoxville, Tennessee

Median home price: $395,000

Median rent: $1,256

The city of Knoxville attracts a diverse mix of people who are looking for an affordable place to live, including families, young professionals, college students, and retirees. Housing prices are on the higher side here, but the overall cost of living remains low. Knoxville offers plenty to do and see, which is great for people who are hoping to maintain a more active lifestyle. It’s also just over an hour away from the Great Smoky Mountains in case you want to get away from the bustle of city life for the weekend.

7. Erie, Pennsylvania

Median home price: $177,500

Median rent: $750

Erie boasts affordable housing for both renters and homeowners, along with lakefront views and access to good schools. Erie has low levels of crime and rates well for livability. Its population isn’t growing as quickly as other comparable cities, though whether that’s a pro or a con for you might depend on whether you prefer a larger city or a smaller one. Keep in mind that slower job growth can be a side effect of lower population growth, which is something to consider if you’re moving to Erie to explore career opportunities.

8. Huntsville, Alabama

Median home price: $350,000

Median rent: $975

Huntsville has a burgeoning economy, with plenty of opportunities for job-seekers. The cost of living is low overall, though a home may cost you a little more here compared to other cheapest cities on the list. Huntsville has a number of attractions to take in, including the U.S. Space and Rocket Center, along with some eye-catching natural scenery. One thing to note about the weather is that northern Alabama is often prone to seeing tornadic activity during the spring months.

9. Peoria, Illinois

Median home price: $120,000

Median rent: $695

Peoria might make your shortlist of possible candidates for a new place to live if you’re looking for affordability, good schools, and access to housing. There are plenty of young professionals and families living here, though the population isn’t so large that you’ll feel like you’re getting lost in the crowd. If there’s one potential downside to consider it’s crime. Property and violent crime rates are both above the national average.

10. Kalamazoo, Michigan

Median home price: $195,000

Median rent: $895

Kalamazoo is something of a cultural hotspot, with plenty of theaters, museums, and live music venues. The city hosts numerous community events year-round that always draw a crowd. From a cost perspective, Kalamazoo is highly affordable, and it attracts a lot of young people who are looking to start a career. There are a few downsides, however, including harsh winters and high poverty rates.

Recommended: 10 Most Affordable Cities Based on Cost Per Square Foot of Homes

Other Factors to Consider Before Deciding Where to Live

Cost can be a major concern when planning a move. For example, you might be debating the merits of renting vs. buying, or what you might pay for things like childcare if you’re a parent or health care if you don’t have insurance.

While the financial side of things is important, there are some other things to weigh when deciding where to move. That can include things like:

•   Job opportunities if you’re moving without a job lined up

•   Access to daycare and quality schools if you have kids

•   Crime rates and overall safety

•   Access to public transportation if you’re not taking a vehicle with you

•   Climate and whether the area is vulnerable to things like tornadoes, hurricanes, or wildfires

•   Population size and seasonality (for example, a beach town could get crowded once summer rolls around)

•   Recreation and entertainment

Last but not least, consider how much money you might need for the move itself. If you don’t have cash on hand to cover a moving van, security deposits, or other expenses, you might need to look into financing options. For example, getting a relocation loan for moving could make it easier to get settled in your new place.

💡 Quick Tip: Income, expenses, and life circumstances can change. Consider reviewing your budget a few times a year and making any adjustments if needed.

The Takeaway

Keeping your budget in check — whether you’re relocating across the country or across town — is important when a move is in the works. For example, if you’re planning to buy a home in your new city, using an online home affordability calculator can help you pinpoint what price range you should be looking in for properties.

Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.

FAQ

What determines cost of living for a city?

Cost living is influenced by several factors, including how affordable housing is in a given location, what people pay for transportation and food, and the cost of entertainment and recreation. Areas that have a higher cost of living may also offer a higher median household income, though the two don’t always go hand in hand.

How can I lower my cost of living?

Cutting expenses is a good way to reduce your cost of living. That might include making smaller cuts to your budget, or larger ones, like downsizing your home or moving to a cheaper city. Making a move might seem impractical, but it could yield significant savings if your cost of living in your new city is much lower than it was in your previous location.

Can I borrow money to move?

Moving loans can put cash in your hands that you can use to cover the expenses of relocating. For example, you might use a moving loan to hire professional movers, rent a moving truck, pay for shipping costs, or fund deposits if you’re renting a new place. You could also use a moving loan to help cover your expenses as you get settled in until you find a job.

Photo credit: iStock/Ridofranz

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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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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.

SORL0723001

If you use your credit card for everything, from paying bills to ordering takeout to booking trips, you put yourself at risk for fraudsters to steal your credit card information.

One way to protect your sensitive information is to put a freeze on your credit report. A credit freeze provides you with an extra layer of security because it prevents anyone from running a hard inquiry on your report or potentially opening a new line of credit without your permission.

But at some point you might want to open a new credit card or apply for a loan. So how do you unlock a credit freeze? In this guide, you’ll learn all about how to unfreeze credit.

What Does it Mean to Unfreeze Credit?

When you freeze your credit report, you can’t open a new line of credit, whether that’s a credit card, mortgage, auto loan, or something else. At the same time, no one can run a hard inquiry on your credit report — so lenders, landlords, even potential employers can’t access it. While there are limits on who can legally look at your credit report, a credit freeze can provide peace of mind that no one can open an account in your name.

When you unfreeze your credit, it’s like you’re turning back on the credit report. Once your credit is unfrozen, you can once again open a new line of credit, and lenders can run a hard pull on your report.

How a Credit Freeze Works

Also known as a security freeze, a credit freeze restricts access to your credit file. Credit freezes don’t happen automatically. You have to reach out to each of the three credit bureaus — Experian, Equifax and TransUnion — to ask for a credit freeze.
Thanks to the Fair Credit Reporting Act, if you request a credit freeze over the phone or online, the credit bureaus are required to freeze your report within 24 hours. If you send the request via mail, they have up to three business days.

When you make a credit freeze request, each bureau will give you a PIN (personal identification number) or password that you need when you decide to lift the freeze.

A credit freeze is often confused with a credit lock, but they’re two separate things. A credit lock is a service you sign up for, and there’s usually a subscription fee. It’s similar to a credit freeze as you block access from most lenders. However, you can freeze or unfreeze it at any time on your phone or computer, and you don’t have to wait for it to go into effect.

A credit freeze is free, and you have to go through the credit bureaus to thaw your credit, and it takes about an hour to go into effect.

Types of Credit Freeze Lifts

At some point you may think about unlocking your credit freeze. When the time comes, there are two main types of credit freeze lifts:

Temporary lift

A temporary lift will unfreeze your credit report for a designated time period. You can choose how long you’d like your credit to be thawed, but it’s typically anywhere from one to 30 days.

You can thaw your credit freeze temporarily to apply for new credit, take out a loan, or apply to rent an apartment. But once you’re done with that financial task, the freeze restarts.

Permanent lift

A permanent lift will thaw your credit freeze for an indefinite amount of time. You might want to go this route if you don’t want to go through the steps of freezing and unfreezing your credit and find that the trouble isn’t worth the benefits.

Recommended: How to Read and Understand Your Credit Report

Ways to Unfreeze Credit Using Bureaus

How do you unfreeze your credit? You just need to contact each of the credit bureaus. You can do it in one of three ways:

•   Phone: If you request a lift by phone, the credit bureaus are required to thaw your credit within an hour.

•   Online: If you make the request online, your credit freeze will also be lifted within the hour.

•   Mail: You can also request a credit thaw by mail. If you go this route, expect the lift to happen within three business days.

Recommended: How to Dispute a Credit Report and Win Your Case

When You Should Unfreeze Your Credit

Generally, you need to unfreeze your credit anytime someone needs to review your credit report, like if you’re opening a new line of credit or applying for a loan. Some common scenarios of when you’ll need to unfreeze your credit:

•   Applying for a credit card

•   Applying for a mortgage, personal loan, or car loan

•   Applying for a line of credit

•   Hunting for an apartment

Recommended: Common Credit Report Errors and How to Dispute Them

Credit Freeze vs. Fraud Alert

If you’re at high risk for fraud, or you suspect you’ve been a victim of a credit card scam, or you just want to take extra precautions, you can set up a fraud alert on your credit report. When you have a fraud alert in place, a lender or creditor needs to verify your identity before they can issue you a new line of credit or approve you for a loan.

To place a fraud alert, you only need to reach out to one of the three credit bureaus. By law, that credit bureau must let the other two credit bureaus know you placed a fraud alert. In turn, all three credit bureaus will place a fraud alert on your credit file.

Initial fraud alerts are free, and initial fraud alerts last one year. After one year, you can renew it. Extended fraud alerts last for seven years, but they are for victims of identity theft, and you must submit a police report to qualify.

A credit freeze, on the other hand, blocks any party, including lenders and creditors, from accessing your credit. You need to place a credit freeze separately with each of the three credit bureaus, which lasts indefinitely. They can only be lifted when you make a request.

💡 Quick Tip: On-time payments are key to building your credit score. To ensure that you make your payments in time, consider setting up automatic payments or set a calendar reminder of your due date.

The Takeaway

Unfreezing your credit report is relatively simple, and it’s easy to set up a temporary lift should you decide you want to apply for a new credit card or personal loan. There are a few different ways you can go about thawing your credit as needed, and the credit bureaus have to unfreeze your credit within an hour of you making the request by phone or online.

Whether you're looking to build credit, apply for a new credit card, or save money with the cards you have, it's important to understand the options that are best for you. Learn more about credit cards by exploring this credit card guide.

FAQ

Can I unfreeze my credit?

You can unfreeze your credit anytime by going through each of the three credit bureaus — Experian, Equifax, and TransUnion — and requesting a lift on your credit freeze. You can ask for either a permanent or temporary lift. The thaw usually lasts anywhere from one to 30 days if it’s temporary.

Can you freeze your credit automatically?

Credit freezes don’t happen automatically. You will need to contact the three credit bureaus and make a proper request. You can do so online, by telephone, or via snail mail.

How soon can I unfreeze my credit after freezing?

You can unfreeze your credit as frequently as you like and request a credit lift as soon as you freeze it. If you made the request online or over the phone, it can take up to an hour to unfreeze your credit. If you send the request in the mail, it can take up to three business days.

How long does it take to unfreeze your credit?

It depends on the credit bureau and how you made your request. If you requested your credit to unfreeze or “thaw” over the phone or email, the credit bureaus must lift it within an hour. If you made the request by mail, the credit bureaus must unfreeze your credit within three business days.

Can I still use my credit card after freezing my credit?

Freezing your credit doesn’t impact your ability to use your credit card. You can freely make purchases on your card, book trips, redeem your cash-back points, and so forth. But if you want to do something that requires a hard pull of your credit — apply for new credit, loan, or submit a rental application for an apartment — you’ll need to unfreeze first.

Photo credit: iStock/nortonrsx

SOCC0423007

It’s your turn at the supermarket checkout. You insert your card into the reader, chip-side first, like you always do. And you get a “card declined” message.

A credit card malfunction can be a small embarrassment and disruption in your day-to-day life. But if your credit card chip stops working, don’t panic. There are several reasons why it might be malfunctioning, including wear and tear, dirt buildup, or an issue with your account.

Let’s dig into the basics of credit card chips, the different reasons a credit card chip might stop working, and what to do if it malfunctions.


💡 Quick Tip: If you have a good credit score, you can apply for a credit card from SoFi without a security deposit.

What Is a Credit Card Chip?

A credit card chip is a microchip that’s embedded in your credit card. The chip protects your data when you make an in-person payment. It uses a process called tokenization that encrypts your information, and generates a one-time code for each transaction.

Thanks to this technology, your credit card information is never received or transmitted by the merchant. This lowers the instances of credit card fraud when you use your card in a store or restaurant.

How a credit card chip works

This technology is also known as “card-and-PIN,” “card-and-signature,” or EMV (aka Europay, MasterCard, and Visa). The microchip that’s embedded in your card uses a process called tokenization. This is the same technology used in contactless credit cards and payments. In short, tokenization takes your sensitive card information and converts it into a unique token. This token protects your card info and account details.

The credit card chip holds encrypted data and transaction codes. These transaction codes are unique, one-time use, and always changing. As a result, it’s hard for counterfeit thieves to duplicate the data that’s stored on the chip.

Credit card chip types

Within the realm of credit cards, there are three main chip types:

Standard “smart cards:” If you want to make an in-person purchase or take out cash at an ATM, many “smart cards” with the EMV chip technology simply require you to insert or “dip” your card into the card terminal.

Chip-and-PIN cards: This type of credit credit chip offers the most security. To make a purchase or make a withdrawal from an ATM with a chip-and-PIN card, you’ll need to first “dip” your card into the card reader, then punch in your credit card PIN code.

Chip-and-signature cards: This type of chip card provides a bit more security than if you simply swiped your card, but it’s not as secure as the chip-and-PIN type card. As the name implies, to use your card, you insert your card into the reader, then provide a signature for the transaction to go through.

Chip-and-signature cards aren’t as secure as their chip-and-PIN counterparts because it’s easier for fraudsters to forge a signature than to decipher your 4-digit PIN.

5 Things That Can Cause a Credit Card Chip to Stop Working

Here are some reasons why your credit card stopped working, and how to avoid these hiccups from happening:

Grime buildup

Your card encounters dirt each time you insert or swipe in a machine, and grime will build up over time. This grime buildup could mean the terminal can’t read your card. To avoid this from happening, wipe down your card periodically.

Wear and tear

Over time, the chip can get scratched or damaged. While scratches to the plastic on your card won’t cause any issues, scratches or dings to the chip might cause your chip to stop working and the transaction won’t go through.

To prevent wear and tear, consider protecting your physical card with a protective sleeve holder. These are usually made of a thin yet durable material, like synthetic fibers.

Heat or water damage

If you accidentally spill coffee and your credit card gets doused in the hot liquid, or you leave your card in the hot car in the middle of summer, the chip on your card might get warped and go on the fritz.

To avoid this from happening, keep your card in your wallet when not in use. And be mindful of exposing it to extreme heat.

Recommended: All You Need to Know About Credit Card Numbers

Issue with the card reader

Your card might not be the problem at all. Sometimes the issue might have to do with the card reader, also known as the terminal, which acts as the middle man between the retailer and the bank, and authorizes and processes your payment. If there’s a technical glitch with the terminal, your chip might not work.

In this case, try swiping your card instead of doing the chip-and-PIN route. Hopefully that will resolve the issue and your payment will go through.

Issue with your account

Sometimes when your chip stops working it’s because there’s an issue with your account. Common reasons include going over your credit limit, the billing info doesn’t match with your account, or you’re making purchases in locations where you don’t normally shop.

To steer clear of this potential issue, watch your credit limit. You can log on to your account or check your card balance on your card’s mobile app. If you’re using your card while on a business trip or vacation, set a vacation alert.


💡 Quick Tip: When using your credit card, make sure you’re spending within your means. Ideally, you won’t charge more to your card in any given month than you can afford to pay off that month.

What to Do if Your Credit Card Chip Stops Working

Here’s how to fix your credit card’s chip if it’s not working:

Clean the card

If your chip is malfunctioning because of dirt buildup, try to clean your card. Gently wipe it down with an antibacterial wipe, alcohol pad, or microfiber cloth. You can also gently wipe around the edges of your chip with a cotton swab.

Swipe instead

The magnetic stripe on your card also contains your account data. If the problem is with the checkout terminal, try swiping instead of dipping your card. There’s a chance that your transaction will go through without a hitch.

Get a replacement card

If the chip on your card regularly doesn’t work and no amount of cleaning fixes the problem, you might need to reach out to your credit card issuer and ask for a new one. You can do so by calling the number on the back of your card or on the issuer’s website or app. You can sometimes request a new card directly on the app or issuer’s website.

How long it will take for you to receive a replacement card depends on the credit card issuer, but you can expect it to take anywhere from one to seven business days. There might be a charge for a replacement card and a charge if you want shipment to be expedited.

The Takeaway

There are a handful of reasons why your credit card chip stopped working. By doing a bit of investigating, you can get to the root of the issue and troubleshoot accordingly. Most likely you’ll just need to wipe down the card, but sometimes you may need to request a new one.

Looking for a new credit card? Consider a rewards card that can make your money work for you. With the SoFi Credit Card, you earn cash-back rewards on all eligible purchases. You can then use those rewards for travel or to invest, save, or pay down eligible SoFi debt.

FAQ

What do you do if your credit card chip doesn’t work?

If your credit card chip isn’t working, don’t get frustrated. There’s usually a simple explanation why. It could be the result of normal wear-and-tear, heat or water damage, or grime buildup. Or it could be an issue with the card terminal or your account.

Try to clean your card to see if that helps. If you’re in the middle of a purchase, swipe your card instead of inserting it into the terminal. In some instances, you might need to replace your credit card.

What can ruin a chip in a credit card?

There are a few ways a credit card chip can get ruined: regular wear and tear, grime buildup, or extreme heat or water damage.

Can you still use your card if the chip is broken?

You can still use your card by swiping. However, swiping your card instead of going the “chip-and-PIN” or “chip-and-signature” route reduces its security.

Photo credit: iStock/Juanmonino

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.

SOCC0523004

Declaring a major in college isn’t a minor decision, but that doesn’t mean you can’t change your mind at some point down the road. Indeed, roughly one-third of undergraduates actually change majors at some point during their college careers, and around 10% change majors more than once.

While the decision to change your major can be stressful, actually making the switch doesn’t have to be. The key to a smooth transition is to do some strategic planning and to keep up communications with the university.

Read on to learn how to learn more about how to change your major.

First, Declaring a Major

Many colleges and universities ask undeclared students to choose a major by the end of their sophomore year. That’s because many students spend the first year or two taking general education classes.

Once a student is ready to declare a major, the official process will vary school by school. Generally, a student will need to schedule a meeting with their assigned academic advisor, and might need to meet with a department advisor for their chosen major.

In a department or advisor meeting, students will review their academic progress and roughly outline the rest of the required courses they need in order to complete their major.

These courses and their timing aren’t set in stone, but it can help give students an idea of how heavy their course load will be until graduation, and set expectations for how long it’ll take them to complete the degree.

From there, the request to declare a major needs to be approved by that specific department or college. That might be as informal as a meeting or as formal as an application.


💡 Quick Tip: Pay down your student loans faster with SoFi reward points you earn along the way.

Possible Reasons to Change a Major

Deciding to change majors is a personal choice. There’s no one sign for all students. In fact, a combination of factors may inspire a switch.

While not an exhaustive list, here are a few reasons a student might feel it’s a good idea to change majors:

•  More excitement about a different area of study: Maybe a computer science student is more excited by a single art history elective than anything else on their schedule. If they dread every class but the elective, it might be time to change majors. Of course, a major isn’t only about passion for the subject, but that does come into play. When nearly every class is boring, it might be time for a change.

•  Poor grades: College courses should be challenging, but if a student is regularly failing, or just barely passing required courses, it might be time to consider a different major. Not only does it indicate that the area of study might be outside someone’s talents, but bad grades can also jeopardize graduation and completing the degree on time. If a student is giving a course her all and still coming up short, it might be time to consider alternatives.

•  Really, really good grades: This might sound counterintuitive, but if courses aren’t challenging, then the major might not be the best fit. If a student feels bored in class but continues to ace the coursework, it might be a good idea to look at other majors or consider a double major or minor.

•  Money: Selecting a major is often the delicate balance between something loved and something that leads to a career post-graduation. Picking a major solely because it could mean big bucks after college could lead to regrets down the line. Remember that post-grad life should feel fulfilling, too.

•  An awful internship: Now this can be a little tricky. If students end up hating a summer internship related to their major, they should try to evaluate if it was the work or the management that they disliked. It might have been a poor fit culture wise but a good fit workwise.

If any or all of the above sound familiar, it might be time to think about changing majors. Additionally, it might just be helpful along the way to evaluate satisfaction with a major, even if you decide to continue in that area of study.

Recommended: Credit Hours: What Are They & What You Need to Know

Considerations Before Changing a Major

If it feels like it may be time to change majors, here are a few considerations to keep in mind before crossing the t’s and dotting the i’s:

•  What courses transfer? If the desired new major is far outside the current area of study, a student might have to basically restart college. For example, a psychology major who changes tack to engineering might not have much overlap on core curriculum. Just like mapping out courses when declaring a major the first time, students should consider doing the same before changing majors. It can show how much work or courses will be required.

•  Will it cost more? Depending on school pricing or area of study, changing majors might end up costing a student more in the long run. That could be from additional course fees or taking more classes to catch up over the summer. Once the course load is mapped out for a major change, crunching the numbers is a good idea.

💡 Quick Tip: Even if you don’t think you qualify for financial aid, you should fill out the FAFSA form. Many schools require it for merit-based scholarships, too. You can submit it as early as Oct. 1.

•  Will it take longer? It may not be possible to graduate in four years if the new major is vastly different or the change comes late in an academic career. More time at school could mean more taking out more student loans. (Then again, less than half of bachelor’s degree earners graduate within four years.)

•  Will it line up with post-graduate goals? It’s important to enjoy an area of study, but it’s also important to ensure it aligns with jobs a student wants after graduating. If a premed student switches to international relations but hates the job prospects, that might be a poor choice.

Time, money, or heavy course loads don’t have to squelch a change in major, but they should be factors a student is aware of before making the switch.

How to Change a Major

The reality is, deciding to change majors is likely harder than the actual process of doing so. Changing majors won’t be so different than declaring a major in the first place.

First, a student should schedule a meeting with their current academic advisor to talk through the choice. The advisor may be able to offer insight or even provide course recommendations in the new major.

Typically, the student is required to fill out a short form and have their current as well as new academic advisor sign it to make the major change official.

Depending on the college or area of study, a student might have to apply to the specialty school on campus they wish to transfer to as well.

Recommended: 20 of the Most Popular College Majors

The Takeaway

How to change your major? It requires thought and a talk with your academic advisor. Changing majors can alter a lot about the college experience, from course load to post-grad plans. It can also impact how many years you’ll spend in school and the total cost of your education.

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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With mass student loan forgiveness blocked by the Supreme Court, you may be curious about what other relief options are available, especially if you work (or plan to work) in a field that requires graduate school — and significant student debt — but may not pay a high salary.

The good news is that there are multiple programs that offer student loan forgiveness or relief for mental health professionals, including counselors and therapists. Forgiveness programs for mental health professionals are designed to encourage individuals to enter and stay in the profession.

Read on to learn about programs and strategies that can help you repay any student loans you have taken out (or plan to take out) to become a mental health professional.

How to Plan for the Future With Student Loan Debt as a Mental Health Professional

Whether you take out private student loans or federal student loans to pay for your education in the mental health field, you’ll need to consider how you will eventually repay those loans. It can also be challenging to navigate career opportunities when you know that you have student loans to repay. The good news: You’re not alone. And there is no one right path to pay back student loan debt.

It can be helpful to talk to graduates and see how they paid off student loans. One big crossroads can be whether to take a higher paying job in the private sector or work in a nonprofit role that could give you an avenue toward loan forgiveness through a program like the Public Service Loan Forgiveness Program (PSLF). Another option to manage repayment is to use an income-driven repayment plan, like the new Saving on a Valuable Education, or SAVE, Plan (which will replace the existing Revised Pay As You Earn, or REPAYE, Plan).

There may also be programs unique to your career. For example, the Health Resources and Services Administration (HRSA), a government branch, offers loan repayment programs for mental health professionals who meet certain criteria, such as serving in a health professional shortage area. Speaking with your supervisor, your colleagues, and keeping abreast of news within professional organizations can help alert you to unique repayment opportunities.

Recommended: REPAYE vs PAYE: What’s the Difference?

What is a Student Loan Forgiveness Program?

A student loan forgiveness program operates the way it sounds: Student loans can be forgiven if certain criteria within the program are met. But each student loan forgiveness program has different criteria. It’s important to completely understand the scope of the forgiveness program. Reading this student loan forgiveness guide can help you understand where the national conversation is regarding loan forgiveness in the future as well as options available for forgiveness now.

When student loans are forgiven, usually after a set amount of payments, the balance is forgiven. But that balance may be taxed, depending on the program. For example, forgiveness received under PSLF is not considered taxable, according to the IRS. But under PAYE and REPAYE programs, any canceled student loan debt is considered taxable.

There may also be loan repayment assistance programs (LRAPs) for your profession or field, as well as state-sponsored loan forgiveness programs.

Recommended: Supreme Court Blocks Student Loan Forgiveness

Will Student Loans be Forgiven After Ten Years?

Loans are not automatically forgiven after ten years. But one potential avenue for mental health student loan forgiveness is the federal Public Service and Loan Forgiveness (PSLF) program. This program requires eligible candidates to work with a qualifying organization and make 120 qualifying monthly payments. It also requires that the loans you hold be federal Direct Loans (or that the federal loans you currently have are consolidated into a Direct Loan).

Qualifying for PSLF can be challenging and requires borrowers to certify their employment to be sure their payments count toward the program. In addition to making 120 payments while working at a qualifying employer, you have to be working for a qualifying employer when you submit the forgiveness application and when the loan is forgiven.

Consult with your loan servicer if you have any questions and be sure to read all of the details about the program.

Typical Requirements for Student Loan Forgiveness

In general, forgiveness programs have criteria. These may include:

•  A history of payments, with no payments skipped

•  Working at a qualifying organization, in a qualifying capacity (ie, full-time instead of part-time)

•  Correctly filling out paperwork for forgiveness

•  Potentially paying taxes on the amount forgiven

Understanding the criteria, reading the fine print, and researching any points of confusion can be helpful in ensuring that your application is processed successfully. The eligibility and forgiveness requirements may vary depending on the forgiveness program, so be sure to fully understand the criteria for the loan forgiveness option you are pursuing.

Difference Between Loan Forgiveness, Loan Cancellation, and Loan Discharge

These three terms are sometimes used interchangeably. Quite simply, all three terms mean you’re no longer required to pay some or all of your loan. But there are no “easy” ways to get out of paying student loans.

Usually, forgiveness and cancellation mean that, due to either a forgiveness application or your current job, you no longer have to pay loans. Discharge refers to a situation beyond your control, such as total and permanent disability or the closure of your school. In very rare cases, student loans are discharged due to bankruptcy. You will likely have to apply for cancellation, forgiveness, or discharge and will likely need to continue making payments while the application is processed.

Recommended: Bankruptcy and Student Loans, Explained

Student Loan Forgiveness Options For Mental Health Workers

Depending on your place of employment, you may have other options for forgiveness through specific mental health worker programs. There also may be scholarships and grants available in your field of study. Also something to consider: Some private employers offer student loan repayment as part of their packages. This can be worth asking potential employers as you look for jobs. There are also other federal programs to know about:

PPACA and HERA Student Loan Programs for Counselors

As part of the Patient Protection and Affordable Care Act, legislation expanded opportunities for student loan forgiveness for healthcare professionals, including mental health counselors. While many of these forgiveness programs are state-run, this act did ensure that any forgiven funds would not be considered taxable income for people seeking forgiveness through programs supporting health care professionals working in underserved areas.

Under the Higher Education Reconciliation Act (HERA) certain federal loans, including Stafford Loans, and Direct Loans (both Subsidized and Unsubsidized Direct Loans) are eligible for a graduated repayment plan. Under this plan, your federal loan repayments start low and gradually increase every two years. This can be an option if you expect your income to increase over the years.

National Health Services Corps Loan Repayment Program

The National Health Services Corps offers loan repayment programs through your state. Each state has different eligibility requirements, including eligible disciplines. These state-run programs also may differ in terms of service commitments but usually, the commitments start at two years for an eligible position. These will generally be at centers funded by the Health Resources and Services Administration.

Mental Health Loan Forgiveness Alternatives

The criteria and requirements for some forgiveness programs can be challenging to fit. But that doesn’t mean there’s no way to pay down loans. Understanding all your options can help you navigate the best potential avenue for you.

Refinance Your Mental Health Student Loan

Refinancing your student loans could potentially help save you money in the long term, and might give you more flexibility in your budget.

When you refinance, you take all your loans and consolidate them into one loan. For qualifying borrowers, this loan may have a lower interest rate, which could reduce the amount of money you owe in interest over the life of the loan. It also may have a different payment term, so that you are paying the loan off over a longer (or shorter) period of time. Keep in mind that, while a longer loan term may result in lower monthly payments, it might also mean paying more in interest over the life of the loan.

You can often check your loan refinance rate without affecting your credit score and choose terms that work for you.

Scholarships and Grants

There may be scholarships and grants, either from your institution or your place of work. This can help pay down student loan debt. It’s also worth remembering that some private-sector employers may offer student loan repayment as a perk. Talking with colleagues, supervisors, and the financial aid office at your school may help you find programs that may be specific to your field or your school.

Pay Off Student loan Debt

In some cases, it may make sense to prioritize paying down student loan debt. This may include taking on part-time work, decreasing living expenses, and trying to carve out opportunities to pay more than the monthly student loan payment. These strategies can help you pay off your student loans faster and, in turn, could lower the total cost of the loans.

The Takeaway

Working as a mental health professional can be rewarding, but might require you to borrow money to pay for your education. There are numerous options both for taking out and paying back student loans for mental health counselors and therapists. Depending on your profession and employer, you might qualify for certain types of loan forgiveness, such as Public Service Loan Forgiveness Program (PSLF), if you have federal student loans.

It can be helpful to talk to colleagues about their student loan pathway, join professional organizations, and keep an ear to the ground regarding grants, scholarships, and employer-sponsored loan repayment programs.

Also keep in mind that you can use a private student loan to help pay for your undergraduate or graduate education in the mental health field (or to refinance loans you already have). While private loans don’t come with government-sponsored protections like PSLF, some private lenders offer hardship and deferment programs of their own.

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

FAQ on Mental Health Forgiveness

How do counselors and mental health professionals plan for the future with student loan debt?

Understanding options for paying back loans can be helpful for mental health professionals. Depending on what type of loan you have and what type of mental health work you do, your loan repayment options might include Public Service Student Loan Forgiveness (PSLF), income-based repayment plans, and refinancing your student loans. You might also consider taking a job in the private sector, which may pay more and allow you to comfortably cover loan payments.

Do healthcare workers qualify for loan forgiveness?

In some cases, healthcare workers qualify for eligible forgiveness programs. This depends on the state the healthcare worker resides, as well as their place of employment.

What are some student loan forgiveness options for mental health workers?

Mental health workers who work in underserved areas may be able to apply for forgiveness programs run at their state level for healthcare professionals. Eligibility depends on criteria including place of employment. Student loan forgiveness options may also include the federal Public Service Loan Forgiveness program (PSLF), as well as some income-based repayment options.

Photo credit: iStock/Vertigo3d

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.

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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