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Being a train conductor allows you to take people and essential goods where they need to go, see the country, and get paid while doing it. In fact, a competitive salary is often one of the big draws of the field. But just how much does a train conductor make? According to the U.S. Bureau of Labor Statistics (BLS), the median annual wage for a train conductor is $68,180.

If that salary sounds appealing, keep reading to learn what train conductors do, how much they stand to make in different states, and the pros and cons of the job.

What Is a Train Conductor?

If you’ve ever dreamed of yelling “all aboard” and taking the wheel of a train, then you may find satisfaction as a train conductor. This type of trade job is responsible for organizing and overseeing various activities within a railroad yard, industrial plant, or similar locations. They play a vital role in coordinating the actions of the train crew, whether on passenger trains or freight trains. Additionally, yardmasters take charge of reviewing train schedules and switching orders while ensuring smooth coordination among workers involved in railroad traffic operations, including train assembly, disassembly, and yard switching tasks.

Working as a train conductor can be stressful and requires attention to detail. However, introverts may find that they love this job as it requires minimum interactions with other people.

Recommended: 15 Entry-Level Jobs for Antisocial People

How Much Is a Train Conductor’s Starting Salary?

How much money does a train conductor make? According to the latest BLS data, annual salaries range from a low of $49,680, which is most likely what entry-level conductors earn, all the way up to $88,230 or more. As workers gain more years of experience, they can expect to see their salary increase. At the very least, they should always expect to make the minimum wage in their state.


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What Is the Average Salary for a Train Conductor?

While most people don’t focus their job search on trying to find the highest-paying job in their state, it’s a good idea to do salary research before pursuing a new career path.

So how much does a train conductor make per hour? Typically, train conductors earn a median hourly wage of $32.78, but that rate differs by state. Take a look at the following table to get an idea of what train conductors can earn in different states.

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Train Conductor Benefits & Job Considerations

Most train conductors work full time and are eligible for employer benefits on top of their salary. Benefits like health insurance and paid time off can be valuable and increase the overall value of a compensation package.

Savvy employers know that alongside offering a competitive salary, a robust benefits package can attract and retain top talent. Common employee benefits that train conductors may expect to see include:

•   Health insurance

•   Dental insurance

•   Vision insurance

•   Flexible spending account

•   Paid time off

•   Employee assistance program

•   Life and disability insurance

•   Retirement savings plan

Pros and Cons of Train Conductor Salary

Like any job, working as a train conductor comes with a unique set of advantages and disadvantages that are worth being aware of.

Pros

•   Minimal educational requirements, making it accessible to a broader range of individuals

•   Job training is provided by employers, allowing for on-the-job skill development

•   Regular rest hours are enforced, ensuring a reasonable work-life balance

Cons

•   Federal licensure requirements add an additional step to the process

•   The job can be physically demanding, especially in challenging weather conditions

•   Work weeks may extend beyond the standard 40 hours, leading to potential overtime hours

•   Irregular scheduling is common, which can make it challenging to maintain a consistent routine

💡 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

Considering a job as a train conductor? Though rewarding, this line of work is also high stakes, and anyone considering this career path needs to be prepared to take the responsibility seriously. It’s also important to understand what the position typically pays and what your earning potential could be. The median annual salary train conductors earn is $68,180, but train conductors with many years of experience can expect to earn more than this.

FAQ

What is the highest paying railroad job?

If someone is looking to make the most money possible as a train conductor, they may want to consider working for their state government. According to BLS data, train conductors who work for state governments earn a median salary of just over $100,000 per year.

Do train conductors make six figures?

How much does a train conductor make per year, and can they earn a six-figure salary? The good news is that it is possible to earn six figures as a train conductor. While the average train conductor earns a median salary of $68,180, train conductors employed by state governments earn a median of $100,770 each year.

What is the average age for a train conductor?

Many people find fulfilling careers as train conductors at all different ages. That said, the average age for a train conductor is 41.

Photo credit: iStock/Laser1987

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

*Terms and conditions apply. This offer is only available to new SoFi users without existing SoFi accounts. It is non-transferable. One offer per person. To receive the rewards points offer, you must successfully complete setting up Credit Score Monitoring. Rewards points may only be redeemed towards active SoFi accounts, such as your SoFi Checking or Savings account, subject to program terms that may be found here: SoFi Member Rewards Terms and Conditions. SoFi reserves the right to modify or discontinue this offer at any time without notice.

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

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

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If someone has a love of animals and is looking to embark on a rewarding new career path, they may consider becoming a vet tech. While earning potential is not the only reason to pursue a career, it’s helpful to get an idea of a possible salary range before working towards a career as a vet tech. So, how much does a vet tech make? According to the latest figures from the U.S. Bureau of Labor Statistics (BLS), the median annual wage for a vet tech is $36,850.

Read on to learn more about how much vet techs make, how salaries vary by state, and what this type of job entails.

What Is a Vet Tech?

Vet techs, also known as veterinary technologists and technicians, work in veterinary clinics and hospitals, under the supervision of a licensed veterinarian. A vet tech can help with a wide variety of tasks around the office, such as obtaining patient case histories, collecting specimens, assisting in diagnostic and surgical procedures, and preparing animals and equipment for surgery. Other vet techs tasks may include:

•   Ensure humane care of animals

•   Provide specialized nursing care

•   Bathe and groom animals

•   Expose and develop X-rays

•   Collect and perform laboratory tests

•   Restrain animals during exams or procedures

•   Provide client education

Working as a vet tech can be a good fit for introverts, as the role allows for a significant amount of one-on-one interaction with animals. However, it’s important to note that there will still be some degree of interaction with pet owners and colleagues.

Recommended: 15 Entry-Level Jobs for Antisocial People

How Much Is a Vet Tech’s Starting Salary?

How much money does a vet tech make? The answer to that question depends on many different factors, such as how much experience someone has.

The median annual wage for a vet tech is $36,850, but salaries can range from $28,370 to $48,100. Generally speaking, entry-level vet techs earn lower salaries at first, though they’ll likely earn at least the minimum wage.

The type of employer can also impact how much a vet tech earns. Junior colleges, colleges, universities, or professional schools, for instance, tend to pay more (around $46,780 per year) than social advocacy organizations (around $35,480 per year), according to the latest BLS data.


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What Is the Average Salary for a Vet Tech?

An annual salary is one figure to consider. But how much can a vet tech make an hour? The median hourly pay rate for a vet tech nationwide is $17.72 per hour, though that rate — and the annual salary — can vary greatly by state.

For example, the annual median salary for vet techs in California is $47,880, which is much more competitive than in, say, West Virginia, where the median salary is $29,850.

Recommended: Salary vs. Hourly Pay: How Their Pros and Cons Compare

Vet Tech Benefits & Job Considerations

On top of being paid for their labor, many vet techs also receive a suite of benefits that enhances their overall compensation package. Full-time vet techs often qualify for medical and dental insurance, as well as 401(k) retirement plans and paid sick days or vacation time.

Some unique benefits that come with working in this industry can also include discounted pet care or continuing education reimbursements.

Pros and Cons of a Vet Tech Salary

Before pursuing a career as a vet tech, you may want to consider the advantages and disadvantages associated with this career path.

Pros

•   Work with animals all day

•   Usually qualifies for health insurance

•   Can make a difference in a pet’s life

•   Fast-growing career field (projected to grow 20 percent from 2021 to 2031)

Cons

•   Physically demanding work

•   Potentially dangerous

•   Can be emotionally draining

•   May have to work nights, holidays, or weekends

💡 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

The median annual salary for vet techs is $36,850 per year. But as they progress in their career and gain specialties, these professionals can expect to earn more. Many people find working as a vet tech to be a fun and rewarding job, especially if they love animals. While it can be a hard job and may often be physically (and emotionally) demanding, it also provides opportunities to care for animals. And that can feel really good at the end of the day.

FAQ

What is the highest-paid vet tech?

One question potential vet techs likely have top of mind is how much a vet tech makes? According to the BLS, the median annual wage for veterinary technologists and technicians is $36,850. But it’s possible to earn more than $48,100 per year as a vet tech.

Is vet tech a stressful job?

Being a veterinary technician can be a demanding and sometimes stressful job. They often work in fast-paced environments, handle emotional situations with owners, and may encounter challenging cases or emergencies. However, the fulfillment of helping animals and the satisfaction of making a positive impact can also make it a rewarding career.

What state pays the best for vet techs?

How much someone stands to earn as a vet tech depends on a couple of different factors, including where they live. The District of Columbia pays vet techs the most, with median salaries reaching $50,130. Vet techs in Washington state ($49,940) and Alaska ($49,330) earn the next best salaries in the countries.

Photo credit: iStock/AnnaStills

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

*Terms and conditions apply. This offer is only available to new SoFi users without existing SoFi accounts. It is non-transferable. One offer per person. To receive the rewards points offer, you must successfully complete setting up Credit Score Monitoring. Rewards points may only be redeemed towards active SoFi accounts, such as your SoFi Checking or Savings account, subject to program terms that may be found here: SoFi Member Rewards Terms and Conditions. SoFi reserves the right to modify or discontinue this offer at any time without notice.

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

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

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Working as a paramedic is a rewarding career path for many. Though the job is often about more than just the money, it is possible for paramedics to earn a living. The median annual wage for paramedics is $46,770, according to the U.S. Bureau of Labor Statistics (BLS).

Keep reading for insights into a paramedic’s salary.

What Is a Paramedic?

A paramedic provides emergency medical services to individuals when they’re injured or sick. They may also be responsible for transporting people to the hospital, where they can receive further medical treatment. Because medical emergencies can happen any time of day, paramedics often work nights, holidays, and weekends. Many work 40 hours a week, if not more.

To become a paramedic, you usually must meet certain postsecondary educational requirements, which can vary by state.

How Much Is a Paramedic’s Starting Salary?

How much does a paramedic make a year? While the median annual salary for paramedics is $46,770, entry-level salaries may be lower. As with most jobs, a paramedic’s pay rate should become more competitive as they progress in their career.


💡 Quick Tip: When you have questions about what you can and can’t afford, a spending tracker app can show you the answer. With no guilt trip or hourly fee.

Recommended: Is a $100,000 Salary Good?

What Is the Average Salary for a Paramedic?

If you’re considering going into emergency medical services — and thinking about the long shifts that are often involved — you may be wondering how much a paramedic makes an hour.

According to BLS data, paramedics earn a median hourly rate of $17.76. But how much they actually earn depends on how many hours they work, how experienced they are, and where they live.

In fact, salaries can differ greatly by state. For example, the annual mean wage of a paramedic in California is $71,470. In Alabama, it’s $37,820.

It’s understandable that some paramedics earn more based on where they live, as the cost of living can vary a lot by state. At the very least, paramedics can expect to earn the minimum wage.

The following table breaks down the mean annual wage for paramedics by state.

Recommended: Salary vs. Hourly Pay: How Their Pros and Cons Compare

Paramedic Benefits & Job Considerations

Alongside earning a paycheck, paramedics may also receive valuable benefits such as:

•   Healthcare, dental, and vision insurance

•   Paid time off

•   Sick leave

•   Retirement plans

Pros and Cons of a Paramedic Salary

If someone is debating whether or not to pursue a career path as a paramedic, they’ll want to consider both the advantages and disadvantages of the job.

Pros

•   Potential career growth. It is anticipated paramedic jobs will grow by 7 percent by 2031, and there will be around 20,000 new openings for paramedics and EMTs every year over the next decade.

•   Fulfillment. Helping people for a living and saving lives can be very fulfilling ways to spend a career.

Cons

•   Physically demanding. Working as a paramedic can require a lot of lifting, bending, and kneeling, which can take a physical toll.

•   Dangerous. Working with the sick can expose you to diseases and viruses and potentially increase your risk of injuries.

•   Hectic work schedule. Not only are paramedics expected to work odd hours, their time on the job can be very busy and stressful, with life-or-death stakes. Shifts can also be long and last up to 24 hours. This may also not be a great job for introverts, as working as a paramedic requires interacting a lot with patients and teammates.

💡 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

Pursuing a career as a paramedic requires a secondary education, a lot of hard work, and the ability to work odd hours. The role can be very stressful, as the stakes are quite high when delivering emergency medical services. However, with a median annual salary of $46,770, working as a paramedic can also be a reliable and rewarding way to earn a living. What’s more, you may find that as your career progresses, your earning potential will grow as well.

FAQ

What are the highest-paid paramedics?

Exactly how much money does a paramedic make? That depends on how much experience the paramedic has, among other factors. The highest 10 percent of top-earning paramedics earn more than $47,580.

Can a paramedic make six figures?

It is unlikely a paramedic will earn a salary of $100,000 or more, but is not impossible. Typically, the highest-paid paramedics work in general medical and surgical hospitals, and they earn a median annual salary of $47,000.

What is the lowest-paid paramedic?

On the low end, paramedics can earn less than $23,620. However, they can expect their salary to rise as they gain years of working experience.

Photo credit: iStock/sturti

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

*Terms and conditions apply. This offer is only available to new SoFi users without existing SoFi accounts. It is non-transferable. One offer per person. To receive the rewards points offer, you must successfully complete setting up Credit Score Monitoring. Rewards points may only be redeemed towards active SoFi accounts, such as your SoFi Checking or Savings account, subject to program terms that may be found here: SoFi Member Rewards Terms and Conditions. SoFi reserves the right to modify or discontinue this offer at any time without notice.

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

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

SORL0723003

No doubt you’re aware that sending a child to college is expensive. The current cost of attending a private college is $55,840 per year for students who live on campus ($38,768 of it on tuition and fees), according to the Education Data Initiative. Public universities are generally more affordable, with tuition and fees averaging $9,678 per year (for in-state students) and $27,091(for out-of-state students). But those numbers don’t include room and board.

As a parent, sometimes just thinking about the cost of college for your kid (or kids) can feel bleak. Fortunately, there are a number of college fund options that can make it easier to save a sizable sum by the time your child goes to college. Generally, the earlier you start, the better, but it’s never too late to get going. Read on for a closer look at how to set up the best type of college fund for your child.

How to Set up College Funds: Getting Started

When it comes to setting up a college fund, there are a few savings plans and investment accounts that are specifically designed to help people save for their child’s education expenses. Here’s a closer look at your options.


💡 Quick Tip: SoFi offers low fixed- or variable-interest rates. So you can get a private student loan that fits your budget.

529 Plans

These accounts, also known as qualified tuition plans, are named after an IRS code section and give parents the option to save for college in the name of a child while providing certain tax advantages.

There are two kinds of 529 Plans: prepaid tuition plans and education savings plans.

Prepaid tuition plans let you buy future credits or course units at participating colleges or universities. These credits are used to help cover the cost of tuition for the beneficiary. Most prepaid tuition plans have residency requirements and are often sponsored by state governments.

Education savings plans are investment accounts that can be used to save for the beneficiary’s qualified education expenses. The funds can be used to pay for higher education or private elementary or high schools. A 529 plan allows your savings to grow tax-free, and some states even offer a tax deduction on your contributions.

If your child decides not to go to school, it’s possible to roll the account over into the name of another family member. If the funds aren’t used for education-related expenses, there may be taxes and penalties.

Generous family and friends can also contribute to a child’s college savings plan. They may choose to make deposits to an existing 529 account or set up one themselves, naming a beneficiary of their choosing.

Recommended: Benefits of Using a 529 College Savings Plan

Coverdell Education Savings Account

This account has more limitations but may work well for some families. Individuals who have a modified gross adjusted income (MAGI) that falls below $110,000 ($220,000 if married and filing jointly) may be eligible to save for college using a Coverdell Education Savings account.

You can contribute up to $2,000 for a single beneficiary in a given year. Funds saved in this type of account can be used for eligible elementary and secondary expenses, in addition to higher education expenses. Contributions are made after taxes and must be made in cash. Typically, the funds can be withdrawn without a fee if they are used for qualified education expenses.

Recommended: Paying for College: A Parent’s Guide

The Uniform Gift to Minors Act (UGMA) Account

This custodial account allows your child to own stocks and mutual funds. The custodian still controls the account until the minor reaches legal age. Note that it’s not tax-free.

Annual contributions that exceed $17,000 ($34,000 for a married couple) may be subject to a gift tax. It’s possible that a UGMA may reduce the amount of financial aid eligibility. Additionally, there is no penalty should the funds not be used for education expenses.

Roth IRA

Although generally used for retirement savings, a Roth IRA can be used to pay for the cost of college. Contributions to Roth IRA are made with after-tax dollars but earnings grow tax-free.

Generally, to make fee-free withdrawals from an IRA, the account holder needs to be at least 59 ½ years old. However, If you made the first contribution to your Roth IRA at least five years before, you can also withdraw the growth for qualified education expenses, including tuition, books, and supplies.

Keep in mind that, while there may not be an early withdrawal fee, the earnings withdrawn may still be subject to income tax.

Easing the Financial Burden

Even after years of diligent saving, paying the full cost of college tuition isn’t affordable for some families. Fortunately, there are a few options to fill the gaps and help parents and students pay for college.

Students getting ready to start college or those who are already enrolled could look into options like scholarships, grants, or private student loans.

You’ll want to be sure to fill out the Free Application for Federal Student Aid (FAFSA). This is the first step in qualifying for federal aid, including scholarships and grants, work-study, and federal student loans.

Scholarships

These can be a powerful asset when paying for college since it’s money that doesn’t have to be paid back.

Scholarships are typically merit-based and can be offered through a variety of different types of organizations like local nonprofits, corporations, or even sometimes directly from universities. There are a number of searchable databases that compile different scholarship opportunities.

Grants

In addition to scholarships, there are thousands of grants available to students. These grants are issued by the federal government, the Pell program, and individual states. Some are need-based, while others are merit-based. To find out if you qualify and to become eligible for grants, you need to fill out the FAFSA.

Work-Study Programs

The federal work-study program provides part-time jobs for undergraduate, graduate, and professional students with financial needs. These jobs allow them to earn money to help pay education expenses. To be eligible for work-study, you must fill out the FAFSA.

Student Loans

There are two types of student loans: federal and private. Federal student loans are awarded as a part of a student’s financial aid package and can either be subsidized or unsubsidized.

Subsidized Federal Student Loans

Subsidized student loans are awarded to eligible undergraduate students based on need. The federal government covers the interest on these loans during the time the student is in school at least half-time, during the six-month grace period after leaving school, and during deferment periods.

Unsubsidized Federal Student Loans

Unsubsidized student loans are not awarded based on financial need, and are available to both undergraduate and graduate students. Interest on these loans begins to accrue as soon as the loan is disbursed. If the borrower chooses not to pay the interest while in school, during grace periods, or while in deferment, the interest will be added to the loan principal.

Private Student Loans

Private student loans are available through private lenders, including banks, credit unions, and online lenders. Typically, for someone to get a private student loan, lenders will evaluate the borrower’s credit history, which isn’t the case with most federal student loans. This is why some borrowers rely on a cosigner to secure private student loans.

Many private student loans require payments while the student is still in school, but some do allow you to defer payments until after you graduate (interest will continue to accrue, however.)

An Alternative Way to Finance College

Some parents might consider taking out a parent-student loan to help their kids pay for college. The federal government makes Direct PLUS loans available to parents and graduate students.

Parent PLUS Loan interest rates and fees are set by the Education Department and are higher than other types of federal student loans. The interest rate for the 2023-2024 school year on a Direct PLUS loan is 8.05% and is fixed for the life of the loan.

Some private lenders also offer parent student loans. Private parent loan interest rates can be fixed or variable and are based on the borrower’s creditworthiness. Private loans may offer lower rates than federal PLUS Loans for well-qualified applicants.


💡 Quick Tip: It’s a good idea to understand the pros and cons of private student loans and federal student loans before committing to them.

The Takeaway

There’s no time like now to start saving for college. There are a variety of accounts that are specifically designed to help families save for their children’s future college education, including 529 savings plans and Coverdell Education Savings Accounts.

Beyond savings, students and their families rely on things like scholarships, grants, and student loans to help cover the cost of higher 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.

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

Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

SOIS0823040

Refinancing your student loans can be an excellent way to save money on interest, lower your monthly payment, or consolidate student loan debt. However, refinancing with a private lender makes it so you lose access to federal perks, such as federal loan forgiveness programs. This is true whether you choose to refinance with or without a cosigner.

A cosigner is someone who takes on loan repayment responsibility if the primary borrower falls behind on payments. If you want to refinance without a cosigner, you must meet the loan criteria on your own. Without a cosigner, you will also be 100% responsible for the loan. If you default on payments, it could impact your credit.

If refinancing seems like a reasonable course of action to make your student loans more manageable, it’s best to understand what it looks like to refinance student loans without a cosigner. Here’s what you need to know.

What Does It Mean to Refinance Student Loans Without a Cosigner?

Refinancing your student loans means you take out another loan with a refinance lender to pay off your outstanding student debt balance. You then make monthly payments to the new refinance lender. The goal of refinancing is to save money by qualifying for a lower interest rate and more favorable terms. Be aware, though, that refinancing disqualifies you from federal student loan forgiveness programs.

Like other types of credit, you can apply for a student loan refinance with a cosigner. Borrowers who can’t qualify independently for credit typically apply with a cosigner who can boost their application odds and help them qualify for the most competitive rates. Additionally, the cosigner takes on the responsibility of the debt. If you default on your loan payments, the cosigner will inherit the responsibility of repayment.

When you refinance your student loans without a cosigner, it means that you’re fully responsible for the loan. It also means that you must meet the approval requirements, such as having a good credit score and being in good financial standing.

Benefits of Refinancing Student Loans Without a Cosigner

Refinancing your student loans without a cosigner comes with a few benefits.

Financial Independence

Refinancing student loans without a cosigner is a good way to build financial confidence. Applying for and making payments on your refinance loan may give you a sense of accomplishment. The confidence you build from paying off your refinance loan can trickle into other aspects of your life and set you up for a financially secure future.

Not only that, but repaying student loans can help you build credit as long as you make your payments on time each month.

Recommended: How Do Student Loans Affect Your Credit Score?

You’re Solely Responsible for the Debt

If you choose to refinance your student loans without a cosigner, you’re allowing yourself to build your credit and take full responsibility for your debt.

When you refinance with a cosigner, you’re both equally responsible for the debt. If you make your payments on time, this can be a good thing. However, you both may experience financial consequences if you default on your student loan payment. Since the cosigner is also responsible for the debt, default could hurt both of your credit scores and chances of getting new credit.

Damaging your cosigner’s credit could cause a rift in your relationship, and no one wants that. If you refinance without a cosigner, any financial distress will only impact your finances.

Downsides of Refinancing Student Loans Without a Cosigner

While refinancing your student loans without a cosigner can improve your financial confidence, there are also some drawbacks to not applying with a cosigner.

Potentially Higher Interest Rates

Your credit score helps lenders determine your interest rate. Usually, those with the highest credit scores get the most favorable rates. Because of that, including a cosigner with excellent credit on your loan application can be advantageous, even if you meet the eligibility criteria yourself. A cosigner can enhance your creditworthiness and reduce the perceived risk, making you a more attractive borrower. This could result in a lower interest rate being offered to you.

Remember, the lower the interest rate, the more money you can save on your loan.

Can Be Harder to Get Approved

Finding a loan can be challenging if you don’t meet a lender’s refinance eligibility requirements. Adding a cosigner helps improve your odds because they take on the risk of the debt, too.

You’ll Lose Access to Federal Benefits

When you refinance your student loans with a private lender, whether you use a cosigner or not, you lose access to federal protections. For example, if you’re struggling to pay your federal student loans, you can enroll in an income-driven repayment plan. With this plan, your payment is based on your income and your family size, possibly bringing it down to zero. Make sure you don’t foresee yourself ever needing this or other federal benefits before deciding to refinance your student loans.

How to Refinance If You Can’t Find a Cosigner

When you refinance your student loans without a cosigner, you must provide essential information to prove your eligibility. Most lenders require borrowers to be 18 years or older, be employed or have income from another source, and have a decent credit score. Here are some other requirements it’s important to be aware of.

Qualifying With Your Own Credit Score

Lenders use various factors to determine what credit score makes you eligible for a refinance loan. The FICO® credit score scale ranges from 300 to 850, and those with the highest scores will qualify for the most competitive rates and terms.

Typically, lenders require primary borrowers to have at least a 670 credit score to qualify. If your credit score isn’t quite there yet, it may serve you best to refinance your student loans with a cosigner.

Debt-to-Income Ratio Requirements

Another factor lenders consider is your debt-to-income ratio, or DTI. This ratio informs lenders about the proportion of your monthly income utilized to repay debts compared to the amount of income that flows into your household.

To calculate your DTI, add up your monthly debt and then divide by your income before taxes (gross income). The lower your DTI, the lower the risk you’ll be to lenders. Ideally, you’ll want a DTI below 40%. If your DTI exceeds this amount, focus on paying down debt before you refinance student loans without a cosigner.

Employment Status and Income

To qualify for a student loan refinance without a cosigner, you must either:

•   be presently employed,

•   generate revenue from alternative sources,

•   or have an employment offer scheduled to commence within the next 90 days.

But remember, all lenders use different employment criteria to determine eligibility. Make sure you check with your lender to find out what they require.

Length of Credit History

Lastly, your credit history plays a role in your refinance loan approval. Your credit history includes your total debt, credit accounts (past and present), and your payment history. In addition, your credit history helps lenders determine how responsible you are with credit.

Tips on Refinancing Student Loans Without a Cosigner

Fortunately, it’s possible to refinance student loans without a cosigner. Here are a few tips to get you started.

Find a Lender With an Alternative Credit Check

Suppose you’re struggling to obtain approval for a loan without a cosigner. In that case, you may consider searching for a lender that employs an alternative credit screening process. Some lenders, for example, might provide a different pathway to approval that involves assessing your academic achievements, area of study, likelihood of graduation, and projected income to ascertain whether you qualify for a loan or refinancing.

Note that if you choose to use a lender with an alternative credit check, it could result in a higher interest rate for your loan refinancing.

Build Your Credit Score

Your credit score is one of the most important driving factors of loan approval. Usually, lenders want to see a credit score that hovers around 670 to qualify for a student refinance loan. If your credit score is less than 670, you may not qualify for the loan or you could receive a higher interest rate, which would defeat the purpose of refinancing.

It’s a good idea to take the time to build your credit before refinancing. Making on-time payments and paying down debt are two ways to do so.

Then, once you build your credit score, you can apply for a refinance loan and receive a more favorable rate.

Ensure You Have a Stable Income

Another critical factor lenders look at to determine your refinance loan approval is your income. The minimum income threshold varies across lenders, but typically lenders want you to make at least $20,000 annually.

If you just graduated college or are looking for a new job, you may need to hold off applying for refinancing until you have a stable income and can afford the new monthly payment.

Recommended: Student Loan Refinancing Calculator

Compare Lenders Before Applying

Student refinance loan criteria vary by lender, so comparing your options can increase your chances of approval and help you secure the most favorable rates and terms.

Most lenders will first prequalify you for the loan, which allows you to review the projected interest rates and conditions without committing to the loan. Prequalification only requires the lender to complete a soft inquiry of your credit, meaning it won’t impact your credit score.

Recommended: What’s the Difference Between a Hard and Soft Credit Check?

Get a Cosigner Release on Your Student Loans

Another option is to proceed with a cosigner and, after that, seek a cosigner release for your student loan. This release implies that the cosigner is discharged from the loan obligation if you meet specific criteria, such as fulfilling a minimum payment requirement.

After the release is approved, the cosigner is no longer held responsible for your debt if you default on your loan.

Refinancing Student Loans With SoFi

You can refinance your student loans without a cosigner, but you must meet the lender’s requirements. Most lenders require a credit score of at least 670 and a debt-to-income ratio below 40% to qualify for the best rates. If you have both of those, refinancing without a cosigner is worth considering.

SoFi offers a fast, easy online application, live customer support, no application or origination fees, and no prepayment penalties.

FAQ

Does refinancing a student loan release the cosigner?

Yes. When you refinance, you can remove the existing cosigner from the previous loan.

Can you refinance student loans without a cosigner?

Yes. As long as you meet the approval requirements, such as being employed, having decent credit, and having an income source, you can refinance your student loans without a cosigner.

Is it more difficult to refinance student loans without a cosigner?

The difficulty of approval depends on your financial situation. You may be fine qualifying without a cosigner if you have excellent credit and steady income. On the other hand, if your credit needs work or you’re unemployed, you may not qualify without a cosigner.

Photo credit: iStock/fizkes

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.