Nov
30
2023
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Pros & Cons of Postbaccalaureate Programs

By | Debt Payoff, Student Loans, student_loan | Comments Off on Pros & Cons of Postbaccalaureate Programs

Often seen as a stepping stone between an undergraduate and graduate program, postbaccalaureate programs can help prepare students for a new or different area of study. But, more than just a leg up, a postbaccalaureate program can be a major financial commitment. The average cost of a postbacc program is $20,000 to $40,000.

So, just what is this program, and how can it benefit students? Read on to learn the benefits, drawbacks, and financing behind a postbaccalaureate degree.

What Is a Postbaccalaureate Degree?

A postbaccalaureate degree or program is typically one or two years of study beyond a bachelor’s degree. Students may enroll in a postbaccalaureate program for a variety of reasons, including:

•   Completing a second bachelor’s degree.

•   Working towards a graduate certificate.

•   Taking prerequisite courses required for admission into a graduate program.

A postbaccalaureate program isn’t a graduate degree, but students may enroll in the one to two-year programs before heading off to a grad program.

Applying to a postbaccalaureate program will differ from school to school, but students can generally expect to submit their transcripts, as well as test scores, recommendations, and an essay.

Sometimes called post-bacc, these programs are popular among college graduates who hope to enroll in medical school. According to the American Association of Medical Colleges, postbaccalaureate medical programs focus on science, biology, and other subjects required before med school. They are used to enhance an applicant’s application and hopefully increase their chances of getting accepted.

Here’s why post-bacc programs might help a student hoping to apply to medical school:

•   It offers the appropriate prerequisites. If a student wasn’t on a pre-med track in undergrad, but they decide they want to pursue a graduate program in medicine, a post-bacc program makes it easier to take all the required courses before applying to med school.

•   It gives them an opportunity to improve their grades. If a pre-med student graduated with a low GPA, they might elect to retake some of the courses in a post-bacc program to boost their numbers. It gives them not only a chance to review material they might’ve missed, but also a way to enhance their application with better grades.

•   It can help strengthen an application. If a student is reapplying to medical school, they might first attend a post-bacc program to get an edge up on the competition.

•   It can be a supporting supplement for students with weaker MCAT scores. If a student has taken the MCAT multiple times with borderline scores, getting strong marks in a post-bacc program can be a helpful ace up their sleeve in the application. It can show a commitment to the area of study, despite low test scores.

Going to a post-bacc program might be the right fit for some students looking to enter a medical graduate program, but is by no means a requirement.

Pros of a Postbaccalaureate Program

A postbaccalaureate program can offer many benefits for the right student. Here are some of the pros they can expect on their way to a graduate program:

•   Flexible studying. Postbaccalaureate students have a lot of flexibility in the program. They can usually choose to study full-time or part-time, based on their availability and schedule. Full-time programs are typically a year long and part-time programs take closer to two years.

•   Linkage programs. Many postbaccalaureate programs are housed within a medical school. While participating in the school’s postbaccalaureate program won’t guarantee admission in its medical program, it could give a student a leg up in the application process.

•   MCAT prep. Some, but not all, postbaccalaureate programs include MCAT tutoring and prep in admission and pricing. For some students, this can be a great opportunity to raise test scores.

•   Networking and experience. In addition to courses, some postbaccalaureate programs will also offer speciality programming and networking opportunities for students. This can be an opportunity to learn more about medical specialties from events and network with fellow students.

•   An introduction, without the long term commitment. A postbaccalaureate program can give students a taste of what medical school might be like. However, instead of studying for years, it could be just a couple months or two years at most. If a student decides med school just isn’t for them during a postbaccalaureate program, it’s less time and money spent.

Cons of a Postbaccalaureate

While a post-bacc program will offer many benefits, these programs do have their fair share of drawbacks. Consider these cons before attending a postbaccalaureate program:

•   Not all programs offer federal aid. Postbaccalaureate programs can be pricey, and when it comes to financial aid, some students will be on their own to find a way to pay. Some, but not all, post-bacc programs will have federal aid packages for students to consider. Because a post-bacc is considered a second degree, prospective students may need to rely on private student loans to pay for their program.

•   They could be overkill. While postbaccalaureates can be a great refresher on subjects for students, the demanding curriculum could be too demanding academically and financially. In some cases, students might choose simply to take a few prerequisite courses at a community college instead of paying for a post-bacc program.

•   Losing out on experience. Postbaccalaureate programs offer their own benefits and experience, but enrolling could mean missing out on real-world experiences or work experiences.

•   Post-bacc programs aren’t all built the same. Students shouldn’t expect the same experience from every post-bacc program. Different schools will offer different focuses and programs. Some are more geared towards enhancing a student’s academic record, while others are actively seeking to engage economically disadvantaged or underrepresented students.

•   It doesn’t guarantee admission. Post-bacc medical programs can give students a leg up when it comes to boosting their GPAs and MCAT prep, but they are not a guarantee that a student will gain admission to medical school. If a student is considering enrolling in a postbaccalaureate program solely for admissions purposes, they might want to rethink their motivation.

The Takeaway

Postbaccalaureate programs are second-degree programs but do not result in a graduate degree. They are often used as a stepping stone for people who are making a career transition or are interested in pursuing higher education, such as medical school.

The choice to enroll in a post-bacc program is deeply personal, just like how a student decides to pay for school. Whether or not a person chooses to head straight into a postbaccalaureate program immediately after undergrad or not, keeping an eye on their student loans is important.

Depending on a student’s loan structure, students may be expected to make loan payments while enrolled in a post-bacc program.

Some students may find that refinancing student loan debt can help them reduce their interest rates. Refinancing federal student loans eliminates them from federal benefits, such as student loan forgiveness and deferment, so it’s not an appropriate option for everyone.

For students interested in refinancing their current student loans, SoFi offers flexible terms, competitive rates, and no hidden fees. It takes just two minutes to see if you prequalify and your credit score will not be impacted during the prequalification stage.

See if you prequalify for student loan refinancing with SoFi.

SoFi Student Loan Refinance
Terms and conditions apply. SoFi Refinance Student Loans are private loans. When you refinance federal loans with a SoFi loan, YOU FOREFEIT YOUR EILIGIBILITY FOR ALL FEDERAL LOAN BENEFITS, including all flexible federal repayment and forgiveness options that are or may become available to federal student loan borrowers including, but not limited to: Public Service Loan Forgiveness (PSLF), Income-Based Repayment, Income-Contingent Repayment, extended repayment plans, PAYE or SAVE. Lowest rates reserved for the most creditworthy borrowers. Learn more at SoFi.com/eligibility. SoFi Refinance Student Loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).

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

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

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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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Nov
30
2023
Making Sense of the Rising Cost of Medical School

Making Sense of the Rising Cost of Medical School

By | Debt Payoff, Fresh Out of School, Student Loans, student_loan | No Comments

The costs of medical school are rising at an alarming rate. According to Education Data, the cost of attending medical school rises by $1,500 per year.

Thirty-five years ago, medical students graduated with an average of $32,000 in student loan debt. Now, the average medical school debt for graduates is $202,450, according to the Education Data Initiative, with 73% of students graduating with debt.

The rising cost of medical school, plus the daunting number of years of education and training, is making some prospective medical students ask: Is an MD really worth it? That’s ultimately up to you.

It’s also worth noting that while medical school has traditionally been a path to a lucrative career, the steep up-front costs might be starting to make the endgame look less appealing.

This can be particularly true for would-be doctors interested in working in relatively low-paying fields, such as general practice (as compared to, say, anesthesiology).

While it might be relatively easy to pay down student loan debt for those entering a higher-paying specialty, a doctor going into general practice might take years (even decades!) to pay off their student loans.

To gain a better understanding of how much medical school actually costs, we’ll take a look at the costs of an MD, and some ways young doctors can get out of medical school debt faster after graduation.

How Much Does Medical School Cost?

The average medical school tuition varies depending on factors like whether the student is attending a public or private university.

The average total cost of in-state tuition for a student at a public university is $159,620. At a private school, the average total cost is $256,412.

But that’s only the cost of tuition, fees, and insurance — there’s also living costs to consider, which is why it’s useful to consider the entire cost of attendance (COA).

Each school publishes the estimated costs of attendance for their program, which typically not only include tuition and fees, but also costs like room and board, textbooks and supplies, and travel.

Why Is Medical School More Expensive Than Ever?

The rising cost of medical school tuition is part of a larger trend. It is estimated that the cost of college tuition and fees at private, nonprofit, four-year institutions in America grew at a rate of 3.5% from the 2021-2022 school years.

So what is driving the price increase? In general, college tuition has increased dramatically in the past 30 years, while wages have grown at a much slower rate. But what’s behind the dramatic uptick in college prices? The potential answer is two-fold. One factor is the demand for a college education has also dramatically risen over the last three decades.

Another factor more pertinent to public universities: a decline in state funding. It’s been observed in multiple states that as the education budget gets stripped, tuition costs paid by students also rises. And while lawmakers likely understand such a correlation exists, as long as federal financial aid is so freely available for students, there is likely little incentive to digress from such cuts.

How Long Does Paying for Med School Take?

So why do med students often go into so much debt?

It’s partly because the grueling requirements of their programs don’t often allow for part-time work. As a result, many students apply for financial aid to cover their college price tag, which means they graduate with significant amounts of student loan debt.

How long does it take to pay back the debt? Much of this depends on the student, the career path they take, and the medical loan repayments they make. However, the relatively low salaries young doctors earn during their residencies don’t typically allow for much opportunity to pay back loans until their first position after residency.

Let’s say, hypothetically, a borrower has federal Direct Loans, such as Stafford, PLUS, or a Direct Consolidation Loan. And let’s also say you can prove you have partial financial hardship (PFH), and qualify for an income-driven repayment plan.

In that situation, the monthly repayment would be capped at 10-15% of the borrower’s monthly discretionary income for a period of up to 25 years. After the 25 years, whatever hasn’t been repaid is forgiven (although that amount may be taxable).

However, if after residency, the borrower in question gets a position with an income that removes them from the PFH tier, they could switch to the Standard Repayment Plan for federal student loans and potentially pay off the loan more quickly.

Is It Possible to Shorten the Medical Debt Payment Timeline?

Here are some tips for those interested and able to shorten their repayment timeline, which can lower the amount of student loan interest paid over the life of the loan.

Repaying Loans During Residency

It is possible to start paying down medical school debt in residency. While some students may be tempted to put their loans in student loan forbearance in their residency years, doing so can add quite a bit in compounding interest to the bill.

Instead, consider an income-driven repayment plan to start paying back federal loans with an affordable payment. Another option is to look into SoFi’s medical residency refinance options to compare. Keep in mind, though, that if you choose to refinance your federal student loans, you will no longer be eligible for federal benefits and protections, including income-driven repayment plans, deferment, and student loan forgiveness.

Making Extra Payments

Another tactic to help pay off student loans faster is via simple budgeting. After getting your first position post-residency, consider committing to living on a relatively tight budget for just a few more years. Putting as much salary toward extra student loan payments as possible could potentially help cut time — and interest payments — off the repayment timeline.

Speeding Up Med School Debt Repayment With Refinancing Student Loans

If you refinance your medical student loans, iit may be possible to secure a lower interest rate and/or a lower required monthly payment – depending on the terms you choose, your credit score, and other factors.

A lower interest rate could help reduce how much money is paid in interest over the life of the loan. Extending your loan term could mean a lower monthly payment – but keep in mind that you’ll most likely pay more in interest over the life of the loan.

While refinancing could help borrowers save money over the life of the loan, it does mean giving up the benefits that come with federal student loans, like income-driven repayment, deferment, forbearance, and student loan forgiveness specific to physicians.

But for borrowers who don’t foresee needing these services, refinancing might be a viable option.

The Takeaway

The cost of medical school has risen in the past 30 years, and so has the amount of debt med students take on to pursue a career as an MD. But a career in the medical field can potentially be both lucrative and rewarding, so for some, medical school can be worth the time, effort, and cost.

Borrowers who are repaying student loans from medical school may consider strategies like income-driven repayment plans, making overpayments, or student loan refinancing to help them tackle their student loan debt.

With SoFi, refinancing is fast, easy, and all online. We offer competitive fixed and variable rates.

SoFi Student Loan Refinance
Terms and conditions apply. SoFi Refinance Student Loans are private loans. When you refinance federal loans with a SoFi loan, YOU FOREFEIT YOUR EILIGIBILITY FOR ALL FEDERAL LOAN BENEFITS, including all flexible federal repayment and forgiveness options that are or may become available to federal student loan borrowers including, but not limited to: Public Service Loan Forgiveness (PSLF), Income-Based Repayment, Income-Contingent Repayment, extended repayment plans, PAYE or SAVE. Lowest rates reserved for the most creditworthy borrowers. Learn more at SoFi.com/eligibility. SoFi Refinance Student Loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).

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


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

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

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Nov
30
2023
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How to Read Stock Charts as a New Trader

By | Growing Wealth, Investing, Terminology | No Comments

Learning how to read stock charts can feel similar to learning how to drive a car. It can be baffling at first, but once you learn the basics, including types of stock market charts, and the patterns they’re forecasting, you’ll hopefully get the hang of it.

With that in mind, learning how to read stock charts is a bit of a heavy lift, and can be difficult or intimidating for newer investors. Keep that in mind: It’ll take some time and practice before you feel comfortable! But the sooner you learn to decipher stock charts, the more useful that knowledge will be in your investment strategy.

The Art of Reading Stock Charts

Learning how to read stock charts can feel like you’re training in some sort of higher art. But again, with some practice, many investors can learn to do it and implement it into their investment strategy.

Understanding Chart Types

There are a handful of basic stock chart types, including line charts, bar charts, and candlestick charts. Thankfully, these charts are more or less exactly what they sound like.

For instance, line charts simply graph a financial security’s historical performance with a line, allowing investors to see the ups and downs over time. A candlestick chart, on the other hand, shows a stock’s high, low, opening, and closing prices for a specific time period. Bar charts also show a security’s price change over time, but there are some slight differences between bar charts and candlestick charts – often, bar charts aren’t color-coded, for example.

Decoding Stock Chart Data

Stock charts are relaying a lot of information about a stock’s performance over certain time periods. Taking that all into account can be difficult, but the main data points investors will want to try and utilize to guide their investment decisions involve prices, dates, and trading volume.

Before you proceed any further, though, you’ll want to make sure you know what stock symbols are.

Stock symbols, or tickers, are the series of letters, and sometimes numbers, by which a particular stock is uniquely identified. For example, the stock symbol for Apple is AAPL, and the stock symbol for Amazon is AMZN. Stock symbols are defined by the exchanges on which those stocks are traded — for instance, the New York Stock Exchange (NYSE) or the Nasdaq. These are the markets on which stocks and other assets are bought and sold. Stocks traded on the NYSE and Nasdaq can have tickers up to 5-letters long, but most are only 2-4.

With that in mind, using graphs and charts to figure out what’s happening in the stock market is the next step.
The first thing you’ll notice when looking at the chart itself is that it’s pretty much a line graph. Remember middle school math? You’re dealing with a basic X and Y axis—and the X axis refers to time.

On a stock line chart, the trend line is measuring the asset’s performance over that period of time. Investors might want to view the stock’s performance over a single day, week, or month, or see its long-run trend line over the past year or longer. It all depends on your personal trading goals.

Some stock charts may spell out the stock’s opening price, low price, high price, and closing price during a given time period, usually marked simply O, L, H, and C. Here’s what those figures each refer to:

•   The opening price is the first price at which the stock traded during the given time period.

•   The low price is the lowest price at which the stock sold during the given time period.

•   The high price is the highest price at which that stock sold during the given time period.

•   Finally, the closing price is the last price at which the stock sold before the exchange closed.

If the exchange is still open and the stock is being actively traded, the stock chart will likely display the last price, which is just what it sounds like: the last price at which the stock was successfully sold.

You might also see the change in that price from the one immediately before it, or last change, usually displayed as both a dollar value and a percentage.

For example, if you were looking at a chart for Company X (using a fictitious stock ticker, CMPNYX) stock, it might display the following string of letters and numbers:

CMPNYX 197.16 +0.05 (+0.04%)

In this example, CMPNYX is the ticker symbol, and $197.16 is the last recorded price of a single share sold on the exchange. That price was five cents higher than the trade immediately before it, meaning the value of the stock rose, in that time, by 0.04%.

By looking at how the trend line moves over the chart period, you can get a sense of the stock’s price and performance over time as well as its most recent statistics.

Volume corresponds to how many shares are bought and sold within a specific time period. In other words, it’s a measure of supply and demand. Volume is often represented as a series of bars running along the bottom axis of the chart. The bars’ size aligns with the number of trades made during that time period, and can be useful for guesstimating upcoming sales trends for that asset.

It’s not a perfect science, of course, but if a stock is trading at low volume — i.e., few shares are being bought and sold each day — it may indicate that the current price trend is about to change. Perhaps the stock is in poor demand because it’s valued too highly for the market. It could also just mean the investment is out of favor with investors.

On the other hand, a high trade volume might indicate that you’ll have an easier time selling the stock quickly if you’re considering short-term trading.

The Role of Technical Indicators

Investors and traders can use a variety of technical indicators to try and make sense of the market, too. That can include things like the 200-day moving average, which attempts to focus on overall pricing trends for a specific stock, or a variety of other trend and momentum indicators.

There are many technical indicators that investors can use to their advantage. It may be worth taking the time to learn more about each, and decide whether to fold them into your strategy.


💡 Quick Tip: How do you decide if a certain trading platform or app is right for you? Ideally, the investment platform you choose offers the features that you need for your investment goals or strategy, e.g., an easy-to-use interface, data analysis, educational tools.

Technical vs. Fundamental Analysis

We’ve discussed technical analysis, but fundamental analysis is another important element to introduce into the mix. Chart-reading, though, does rely heavily on technical analysis. For that reason, it may be worth revisiting some of the core reasons that investors will want to bone up on the subject.

The Case for Technical Analysis

Fundamental analysis focuses on a company’s underlying performance, whereas technical analysis is more focused on a stock’s performance. While there may be drawbacks to technical analysis, technical indicators are the type that will reveal patterns in stock charts that can be used to make investment decisions. While the buy or sell signals those patterns relay may or may not be faulty, those indicators are what investors are going to want to use when reading stock charts.

When Fundamentals Intersect with Charts

As mentioned, fundamental analysis concerns a company’s financial and operational health, more so than deciphering lines on a chart. Fundamental analysis involves looking at indicators such as earnings per share, price-to-earnings ratios, and return on equity, which can have an effect on how investors decide to buy, sell, or hold a stock. That, naturally, can dictate what a stock’s performance looks like on a chart – which is where it intersects with technical indicators, in many respects.

Essential Stock Chart Knowledge

When it comes down to it, investors may be best served by garnering essential stock chart knowledge involving the various styles of stock charts, their uses, and the language, or key terms, used to describe what those charts are displaying.

Stock Chart Styles and Their Uses

As mentioned, there are a few main types of stock charts: line charts, bar charts, and candlestick charts (there may be others, but we’ll stick with a few basic ones). Each shows the performance of a specific stock, albeit in different ways. Learning what those charts show, how they show it, and how to translate that information into action is ultimately what investors should aim to do when learning how to read stock charts.

Key Terms Every Trader Should Know

There are also a number of key terms that traders should know. The list can be lengthy, but should probably include words and phrases such as market capitalization (as discussed), price-to-earnings ratios, dividend yields, options, assets, and many more. You should become more familiar with them as you move through your investing journey – you’ll likely start using many of them yourself as your trading activity and strategies become more sophisticated, too.

Applying Your Stock Chart Skills

At the end of the day, learning how to read stock charts, for most investors, is all about one thing: applying that knowledge and making better-informed investing decisions.

How to Use Charts for Smarter Investing

There’s really no limit to the way that investors or traders can use charts to make smarter decisions. The more time you spend studying charts and learning what they show or say, the more information you’ll end up having at your disposal with which to make a decision. The issue, of course, is that all of that information still can’t tell you in all certainty what a stock’s value is going to do next.

That’s perhaps the most important thing to remember about stock charts: they are not a crystal ball, and there’s no guarantee that investors will achieve the outcomes they were hoping or planning for.

Can Charts Enhance Your Investment Strategy?

Stock charts can enhance your investment strategy by adding a whole new dimension – and pile of data and information about specific stocks – to your tool kit. But again, you can spend hours looking at charts, and that still doesn’t mean that a position or investment won’t blow up in your face. You may think of it this way – all investing involves a level of risk, but learning to use stock charts as a part of your strategy may help you gauge how big those risks are, and in some cases, avoid particularly risky investments.

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

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

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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.

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Nov
29
2023

Gas Cost Trip Calculator Table with Examples

By | Family Finances, relay, Tools & Calculators | Comments Off on Gas Cost Trip Calculator Table with Examples

Thinking about taking a road trip? The rising cost of gas might put a dent in your budget if you’re not careful. But how much will you spend on gas for a trip? What should your budget be?

Using a trip cost calculator can help you determine what you are likely to spend filling up your tank on a longer trip. Then you can use that information to decide whether it’s more cost-effective to drive, take a train or bus, or fly.

Let’s look not only at a gasoline cost trip calculator table, but also why you should calculate how much you’ll spend on gas and how you can save money filling up at the pump.

Why Use a Gas Cost Trip Estimator

You may think nothing of filling up your gas tank every few weeks when you’re only driving to work and the store. But consider how much gas you’d use for a trip from, let’s say, San Diego to New York City. With gas prices on the rise, understanding what it will cost you to fuel up for an entire trip can help you better budget your expenses.

Using a gas trip cost calculator can help you figure out how much of your entire trip budget will be dedicated to fueling up.


💡 Quick Tip: Online tools make tracking your spending a breeze: You can easily set up budgets, then get instant updates on your progress, spot upcoming bills, analyze your spending habits, and more.

How to Calculate Your Gas Cost Trip

To figure out how much gas will cost for a road trip, you can, of course, use a trip cost calculator. You’ll need to input basic details, like your type of car (different sizes and types of cars burn gas at different rates) and your route, and the calculator can estimate with real-time gas prices.

But a simple method is to look at your route and the total distance in miles, and divide this number by the number of miles per gallon your vehicle gets. (You can check your owner’s manual to find this out if you don’t already know). This will tell you the number of gallons of gas you’ll need for the entire trip.

Now you’ll need to know the price of gas so you can multiply it times the number of gallons you need. Since gas prices by state may vary wildly, you might take an average of prices found in five places along the way. Tools like Gas Buddy let you search for gas prices in a given city, so you can use this for research.

Gas Cost Trip Calculator Table
Let’s use the process I outlined above to illustrate how you can be your own gas calculator for trip costs.

Distance from San Diego to NYC 2,760 miles
Miles per gallon 22
2,760/22 125 gallons
Average gas price:

•   San Diego: $4.57

•   Albuquerque: $3.09

•   Saint Louis: $2.82

•   Indianapolis: $2.99

•   Philadelphia: $2.93

 Average: $3.28
125 gallons x $3.28 $410 gas budget

As you can see, it would cost about $410 for gas for the entire trip. Of course, this is based on an average cost of gas, and prices will fluctuate over time and in different towns and cities.


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

Examples of Gas Cost Trips

Let’s look at a few other examples of trips and how much they would cost in gas.

Distance from Los Angeles to Seattle 1,335 miles
Miles per gallon 22
1,335/22 61 gallons
Average gas price:

•   Los Angeles: $4.44

•   Stockton: $4.45

•   Sacramento: $4.99

•   Medford: $4.05

•   Portland: $4.99

Average: $4.58
61 gallons x $4.58 $279 gas budget
Phoenix to Dallas 1,067 miles
Miles per gallon 22
1.067/22 48.5
Average gas price:

•   Phoenix: $3.13

•   Benson: $3.61

•   Deming: $3.45

•   Fort Stockton: $3.15

•   Abilene: $2.79

Average: $3.23
48.5 gallons x $3.23 $157

Reasons to Calculate Your Gas Cost

So why should you bother using a road trip cost calculator? Well, most people don’t have unlimited funds when it comes to taking a road trip, so for starters, it can help you see how much you’d spend. You might decide it’s not worth driving if the cost exceeds what you’d pay for a flight, bus, or train ride.

Even if you’re not planning a big trip, looking at how much it costs to drive on a tank of gas can be helpful for maintaining your month-to-month budget. Once you understand how much you’re spending on gas, you might explore how to improve gas mileage to get more bang for your buck or you might limit how often you drive to save money.

Tips on How to Save on Gas Money

Speaking of saving money, let’s look at how to save money on gas.

Plan Where You’ll Fuel Up

If you’re planning a road trip, use a tool that shows you exactly where the cheapest gas can be found. You might be able to save $.10 or more a gallon simply by planning ahead. There are even some trip fuel cost calculators that will help you plan where to stop based on gas prices.

Consider How You Pay

There are different types of credit cards that can help you save at the pump. Branded gas credit cards often offer rewards that will shave off a few cents per gallon or give you a bonus after you’ve charged a certain amount of purchases.

You might also consider a cash back credit card that gives you cash or credits for your purchases once you’ve hit a certain threshold.

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Look into Alternative Transportation

You may be quick to rely on cars to get around, but there are often other overlooked methods of transportation to consider. Whether it’s a bus, train, Uber, or plane, you might be able to save money by leaving your car at home.

You can also cut your gas costs by splitting them with a friend.

Another way to stick to your travel budget? A money tracker app, which can help you keep tabs on where your money is going while you’re on the road.

Only Use Premium if Necessary

Most cars run just fine on regular unleaded gas, which can be significantly cheaper per gallon than premium versions, especially if you’re on a long trip. Check your car manufacturer’s recommendations to see if you can use regular unleaded gas.

Drive an Empty Car

The heavier your car is, the more gas it burns. So if you’ve been lugging around something heavy unnecessarily, consider leaving the load at home before you drive.

Who Should Save Money on Gas

The real question is, who shouldn’t save money on gas? We could all benefit by keeping a little extra cash in our pockets.

That said, if you’re planning a long road trip, you’ll probably want to explore ways to improve gas mileage and to save on gas. Also if you have a long commute to work, you might be spending more on gas than necessary.

The Takeaway

Paying attention to how much gas costs, particularly for a road trip or long commute, is just smart financial planning. Whether you use an online version or crunch the numbers on a piece of paper, a gas trip cost calculator can help you figure out how much you may want to budget for fill-ups.

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FAQ

How do I calculate gas cost for a trip?

To calculate gas for a long road trip, divide the number of miles of the route by the miles per gallon your car gets. This is the number of gallons you’ll need to drive the distance. Then, average the cost of gas on your route and multiply this times the number of gallons to get the total cost of gas for your trip.

How much would 1 mile of gas cost?

Divide the cost per gallon by the number of miles per gallon your car will go. For example, if you pay $3.99 per gallon and your car gets 22 miles per gallon, driving one mile would cost about $.18.

How do you calculate fuel to destination?

To calculate how much fuel you’ll need to get to your destination, divide the number of miles of the remaining route by the miles per gallon your car gets. Then, average the cost of gas on your route and multiply this times the number of gallons to get the total cost of gas for your trip.

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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.

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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Nov
28
2023

Helping Employees Make Smart Student Debt Decisions: The Urgent Need for HR Support

By | Debt Payoff, Student Loans, student_loan | Comments Off on Helping Employees Make Smart Student Debt Decisions: The Urgent Need for HR Support

As we head into another month of federal student loan repayments, it is crucial for HR executives to recognize the urgent need to support their employees in making smarter student debt decisions. In President Biden’s June 2023 Fact Sheet regarding student debt forgiveness, he highlights the importance of understanding the federal student loan program’s new grace period and its implications. Here, we’ll explore the significance of the traditional grace period, the new 2023-24 grace period, the challenges employees may face, and why HR executives should take proactive steps to assist their workforce in navigating this critical financial phase.

The Traditional Student Loan Grace Period

Before we dive into the new program, here’s a look at how the “traditional” grace period works. Typically, the Department of Education (ED) gives students a set period of time after they graduate before they are expected to make any payments on their federal student loans. This gives borrowers a cushion of time to transition from their education to the repayment phase. For most federal student loans, including Direct Subsidized and Unsubsidized Loans, there is a six-month grace period after graduation, leaving school, or dropping below half-time enrollment. This period provides individuals with an opportunity to get financially settled and select an appropriate repayment plan.

The 2023-2024 “On-Ramp” Student Loan Grace Period

New this year, with the resumption of federal student loan repayment, the ED has created a temporary on-ramp period through September 30, 2024, during which borrowers who don’t make payments won’t default. This new extended “grace period” is designed to help borrowers who, after a more than three-year payment pause, may struggle to start repayments on time. According to the ED, this on-ramp period can help ensure that “the worst consequences of non-payment won’t happen right away.”

But there is a key caveat to keep in mind: While this grace period does delay the consequences of missed, late, or partial payments until September 30, 2024, the ED acknowledges they have no control over how credit scoring companies factor missed or late payments into their evaluation of a borrower’s credit. So, while they won’t report the account as delinquent, the credit bureaus could still factor this information into their scoring.

Also bear in mind that, as with other grace periods, interest will still build during the on-ramp, increasing the amount borrowers will owe overall.

Challenges Your Employees May Face

The resumption of student loan payments can pose significant challenges for employees. Many individuals may need to be made aware of the various repayment plan options available or may need help understanding the complexities of loan forgiveness programs. Additionally, the financial burden of student loan payments can impact employees’ overall financial well-being, causing stress and affecting their productivity and job satisfaction.

While the 2023-2024 “On-Ramp” Student Loan Grace Period is positioned as another tool that borrowers can leverage, it might not be the best option. Communication around this program has been limited and it may be confusing borrowers. It’s important for all stakeholders to understand — and not underplay — the potentially negative consequences of participating in this program, whether now or in the future.

Borrowers who take advantage of the on-ramp period will likely experience the consequences of missed or delayed payments at some point in the future. As a result, it’s in their best interest to understand the implications and, where possible, opt for another repayment option that may better fit their current situation. This is not a period to ignore your student debt, but rather a one-year period to make deliberate, gradual changes to get ready for repayment, and only if absolutely necessary. Employers can support this decision-making process by sharing timely, trusted, and relevant information.

The Urgent Need for HR Support

HR executives play a vital role in supporting their employees’ financial well-being. By providing guidance and resources, they can help employees make informed decisions about their student debt. Here’s a closer look at why HR executives should prioritize supporting their workforce in making smarter student debt decisions.

1. Employee Retention and Employee Benefits

Assisting employees in managing their student debt can contribute to higher employee retention rates and increased engagement. By alleviating financial stress, employees can focus more on their work and feel valued by their organization. This benefit demonstrates an organization’s commitment to supporting employees’ financial goals and can significantly impact employee satisfaction and loyalty.

2. Attracting Top Talent

In today’s competitive job market, offering support for student debt can be a significant differentiator for attracting top talent. Potential candidates increasingly consider an employer’s commitment to employee financial well-being when making career decisions.

3. Enhancing Financial Literacy

By providing educational resources and workshops on student loan management, HR executives can improve employees’ financial literacy. This empowers individuals to make informed decisions about their student debt, leading to better financial outcomes in the long run.

4. Promoting a Culture of Support

By actively addressing the student debt crisis and offering support, HR executives can foster a culture of support and empathy within the organization. This can create a positive work environment where employees feel valued and supported in their financial journey.

Budget-Neutral Ways to Get Started

Leverage the SoFi at Work Student Debt Navigator Workbook

To further assist employees in managing their student loan obligations effectively, HR executives can promote the SoFi at Work Student Debt Navigator Workbook. This comprehensive tool is designed to help individuals navigate and manage their student loan obligations with ease. The workbook provides guidance for understanding federal student loan repayment options, exploring loan forgiveness programs, and creating a personalized repayment strategy.

By partnering with SoFi at Work and providing access to the Student Debt Navigator Workbook, HR executives can empower their employees to take control of their student debt and make informed decisions. This tool not only enhances financial literacy but also promotes a sense of support and guidance within the organization.

Distribute SoFi at Work’s Guide to the Restart of Federal Student Loan Repayments

The SoFi at Work Guide to the Restart of Federal Student Loan Repayments was explicitly created for this period when the federal loan pause has ended and borrowers are gaining their financial bearings. This timely resource includes helpful information on how to make a stress-free play for repayment. It also offers valuable resources and tips for budgeting, saving, and improving overall financial well-being.

The Takeaway

As this new student loan grace period (or on-ramp) begins, HR executives have a unique opportunity to support their employees in making smarter student debt decisions. By prioritizing financial well-being and offering resources, guidance, and tools like the SoFi at Work Student Debt Navigator Workbook, HR executives can make a significant impact on their employees’ lives. Taking urgent action to address the student debt crisis will not only benefit individual employees but also contribute to a more engaged, loyal, and productive workforce. Let us stand together and support our employees in their journey towards financial freedom.

Photo credit: iStock/filadendron

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