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It’s a common dilemma: Should you pay off credit cards or student loans first? The answer isn’t totally cut and dried. But if your credit card interest rates are higher than your student loan interest rates, paying down credit cards first will probably save you more money in interest.

But don’t stop there. Keep reading to learn how to calculate what’s best for your situation, and why. Along the way, you’ll learn more about how credit cards work, the complexities of student loans, and two very different strategies for paying down debt.

Prioritizing Your Debts

Experts are split over the best debt to pay off first. Some recommend you tackle the smallest balance first because of the psychological boost that comes from erasing a debt entirely.

However, from a purely financial standpoint, you’re better off paying off the debt that carries the highest interest rate first. That’s because the higher the interest rate, and the longer you hold the debt, the more you end up paying overall. This usually means tackling high-interest credit card debt first.

Keep in mind that prioritizing one debt over another does not mean that you stop paying the less urgent bill. It’s important to stay on top of all debts, making at least minimum monthly payment on each.

Failing to make bill payments can hurt your credit score, which can have all sorts of effects down the road. For example, a poor credit score can make it difficult to secure new loans at low rates when you want to buy a new car or home, or to take out a business loan.

You might consider setting up automatic payments on your loans. Automatic payments can make it easier to pay bills on time and juggle multiple payments.

If you’re having trouble making your monthly payments, consider strategies to make your payments more manageable, such as refinancing.

Student Loan vs Credit Card Debt

Before we get into if it’s better to pay off credit cards or student loans first, let’s look at how each debt is structured.

Student Loan Debt

A student loan is a type of installment loan used to pay for tuition and related schooling expenses for undergraduate or postgraduate study. Borrowers receive a lump sum, which they agree to pay back with interest in regular installments, usually monthly, over a predetermined period of time. In this way, student loans are similar to other installment loans such as mortgages, car loans, and personal loans.

At a high level, there are two types of student loans: federal and private. The U.S. government is the single largest source of student loans. Federal student loans have low fixed interest rates: Current rates are 4.99% for undergrad loans, and 7.44% for graduate and professional loans. These loans come with protections like income-driven repayment plans, deferment and forbearance, and loan forgiveness.

Private student loans are managed by banks, credit unions, and online lenders. They may have a fixed or variable interest rate, which is tied to the borrower’s credit score and income. Average interest rates range from 3.22% to 13.95% for a fixed rate, and from 1.29% to 12.99% for variable.

Private student loans don’t come with the same protections as federal student loans. For instance, they are not eligible for President Biden’s loan forgiveness plan.

Payback timelines vary widely. As with other loans, the longer your repayment timeline, the lower your monthly payment will be — but you’ll pay more in interest over the life of the loan. The shorter your repayment period, the larger your monthly payment, and the less interest you’ll pay.

Recommended: Types of Federal Student Loans

Credit Card Debt

Credit cards offer a type of revolving credit, where account holders can borrow money as needed up to a set maximum. You can either pay off the balance in full or make minimum monthly payments on the account. Any remaining balance accrues interest.

Credit cards usually come with higher interest rates than installment loans. The average credit card interest rate in September 2022 was 21.59%. But an individual credit card holder’s rate depends on their credit score. People with Excellent credit will pay an average of 18.04%, while those with Bad credit will pay closer to 25.14%.

Depending how the account is managed, credit card debt can be either very expensive or essentially free. If you always pay off credit cards in full each month, no interest usually accrues. However, if you make only minimum payments, your debt can spiral upward.

Recommended: Taking Out a Personal Loan to Pay Off Credit Card Debt

Should I Pay Off Credit Card or Student Loan First?

When it comes to student loan vs credit card debt, there’s no universal answer that fits everyone in every situation. A number of factors can tip the scales one way or another, especially the interest rates on your loan and credit card.

We’ll explore two scenarios: one in which paying off credit cards is the best move, and another where student loans get priority.

The Case for Paying Down Credit Cards First

If you are carrying high-interest credit card debt, you’ll likely want to focus on paying off credit cards first. As you saw above, the average credit card interest rate (21.59%) is significantly higher than the maximum student loan interest rate (13.95%). Even if your credit card interest rate is lower than average, it’s unlikely to be much lower than your student loan’s rate.

Credit card debt can add up quickly, and the higher the interest rate, the faster your debt can accumulate. Making minimum payments still means you’re accruing interest on your balance. And as that interest compounds (as you pay interest on your interest), your balance can get more difficult to pay off.

A high balance can also hurt your credit score, which is partially determined by how much outstanding debt you owe.

Paying Off Credit Card Debt

Once you decide to focus on paying off credit cards first, start by finding extra funds to send to the cause. Look for places in your budget where you can cut costs, and direct any savings to paying down your cards. Also consider earmarking bonuses, tax refunds, and gifts of cash for your credit card payment.

Next, make a list of your credit card balances in order of highest interest rate to lowest. The Debt Avalanche method refers to paying off the credit card with the highest interest rate first, then taking on the credit card with the next highest rate.

It bears repeating that focusing on one debt doesn’t mean you put off the others. Don’t forget to make minimum payments on your other cards while you put extra effort into one individual card.

You may also choose to use a Debt Snowball strategy. When using this method, order your credit cards from smallest to largest balance. Pay off the card with the smallest balance first. Once you do, move on to the card with the next smallest balance, adding the payment from the card you paid off to the payment you’re already making on that card.

The idea here is that, like a snowball rolling down a hill gets bigger and faster as it rolls, the momentum of paying off debt in this way can help you stay motivated and pay it off quicker.

Managing Your Student Loans

Meanwhile, it’s important that you continue making regular student loan payments while you’re prioritizing your credit card debt. For one thing, you shouldn’t just stop paying your student loans. If you do, federal student loans go into default after 270 days (about 9 months). From there, your loans can go to a collections agency, which may charge you fees for recouping your debt. The government can also garnish your wages or your tax return.

You can, however, typically adjust your student loan repayment plan to make monthly payments more manageable. If you have federal loans, consider an income-driven repayment plan, which bases your monthly payment on your discretionary income.

While this may reduce your monthly student loan payments, it extends your loan term to 20 to 25 years. That can end up costing you more in interest. So make sure the extra interest payments don’t outweigh the benefits of paying down your credit card debt first.

Refinancing Your Student Loans

It can also be a smart idea to refinance student loans. When you refinance a loan or multiple loans, a lender pays off your current loans and provides you with a new one, ideally at a lower rate.

You can use refinancing to serve a couple of purposes. One option is to lower your monthly payment by lengthening the loan term. This can free up some room in your budget, making it easier to stay on top of your monthly payments and redirect money to credit card payments. Just remember that lengthening the loan term can result in you paying more interest over the course of your loan.

Or you can shorten your loan term instead. This can be a good way to kick your student loan repayment into overdrive. Your payments will increase, but you’ll reduce the cost of interest over the life of the loan. In other words, you’re giving equal weight to paying off your student loans and your credit card debt.

When you refinance with SoFi, there are no origination or application fees.

To see how refinancing with SoFi can help you tackle your student loan debt, take advantage of our student loan refinancing calculator.

Take control of your debt by refinancing your student loans. You can get a quote from SoFi in as little as two minutes.

FAQ

Should you pay off your student loans or your credit cards first?

The answer depends on a number of factors, especially the interest rates on your loans and credit cards. But if your credit cards carry high interest rates, you’ll likely save more money in interest by paying off your credit cards before your student loans.

What is the best debt to pay off first?

From a purely financial perspective, it’s best to pay off your highest interest-rate debt first. This is called the Debt Avalanche method. Paying off the most expensive debt (usually credit cards) first will save you the most money in interest.

Is it smart to pay off credit card debt with student loans?

This is probably not a good idea. First of all, paying off credit cards with student loans may violate your student loan agreement, which limits the use of funds to tuition and related expenses. If you use a credit card exclusively for educational expenses like textbooks and computers, you might be able to use loan funds to pay it off. However, you should check your loan agreement carefully to make sure this is allowed.

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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.

Car insurance underwriters look at many factors — such as age, gender, and location — when determining the risk a driver poses. To help you understand what you can expect to pay, we break down the average cost of car insurance by age and state, and other factors that may push your premiums higher or lower.

What Is the Average Cost of Car Insurance?

According to the National Association of Insurance Commissioners, the average car insurance premium per vehicle is $1,204, or $100.33 per month. The rate you’ll end up paying will depend on various factors such as your driving history, age, gender, and the age and make of your vehicle. If you’re currently paying much more than average, don’t switch car insurance without first talking to your carrier.

If you need to brush up on the difference between premiums and deductibles, check out our roundup of common car insurance terms.

Recommended: Does Auto Insurance Roadside Assistance Cover Keys Locked in a Car?

Average Car Insurance Rates by Age and State

One thing is consistent: The older you are, the less you’ll pay for car insurance, all else being equal. As you’ll see in the table, location also plays a large role in setting premiums, though the pattern isn’t as clear. One variable that should not affect your premium: whether you get your insurance through a brick-and-mortar office or online insurance company.

Below is the annual average cost of car insurance by age in every state. For monthly cost, divide the annual amount by 12.

Recommended: How to Get Car Insurance

Factors That Affect Car Insurance Rates

There are a few factors that are within your control when it comes to insurance rates, and many that aren’t. The major factors include:

•   Your driving history

•   Age

•   Location

•   Age and model or your vehicle

•   Number of drivers on your insurance policy

•   Discounts you can take advantage of with your insurer

•   Your deductible

•   Type of coverage

For a deep dive into the process of selecting a carrier, see our story on how to get car insurance.

Recommended: How to Lower Car Insurance

How Age Affects Your Car Insurance Rates

Car insurance companies use your age to estimate driving risk. Statistically, younger and new drivers tend to get into accidents more frequently than older and experienced drivers. Once you hit 65, however, you’re again considered a risky driver because you become more likely to get into a car accident and be injured.

That said, age isn’t the only factor that affects your car insurance rates.

Age vs Location

Your location typically has as much of an effect as your age on car insurance premiums.

Age vs Vehicle Type

In most cases, vehicle type will affect younger drivers more than older or more experienced drivers. If your car is of higher value or has a higher likelihood of being stolen, your premiums may be higher.

Age vs Gender

While gender does have an effect on rates, not all states allow insurance companies to use this as a determining factor. For states that do, men generally pay more compared to women, with greater disparities among younger drivers.

Age vs Driving Record

Your driving record will affect your premium more than your age. If you have negative marks on your driving record, you’ll see your rates go up, especially for serious violations like a DUI.

Age vs Credit Score

In many states, companies aren’t allowed to use your credit score when determining your premiums. If you live in a state that factors in credit score, that usually won’t have as much of an effect as your age.

In states where credit score is used, some insurance companies will rerun your credit check and discount your rate if your score has improved. However, they won’t normally increase your premium if your score has gone down.

Recommended: How Much Does Insurance Go Up After an Accident?

How Gender Affects Your Car Insurance Rates

Many insurance companies consider your gender when setting your premium. According to data analysis from the U.S. Department of Transportation, men are found more likely to be involved in fatal car crashes, especially younger men. Because of this risk, premiums are usually higher for men than women.

Recommended: How To Save on Car Maintenance Costs

List of No-fault States

No-fault insurance laws mandate that every driver involved in an accident must file a claim with their insurance company, no matter who was at fault. Plus, all drivers need to purchase personal injury protection (PIP) as part of their minimum insurance coverage. PIP typically covers medical bills and lost wages due to an accident.

The 13 states and territories that have no-fault laws are:

•   Puerto Rico

•   Florida

•   Michigan

•   New Jersey

•   New York

•   Pennsylvania

•   Hawaii

•   Kansas

•   Kentucky

•   Massachusetts

•   Minnesota

•   North Dakota

•   Utah

Minimum Coverage Requirement Laws

Each state has its own minimum car insurance requirements. When purchasing a policy, you’ll need to meet those requirements. Most insurance carriers know what these are and will help you choose coverage that meets them.

While you’ll most likely need bodily injury liability and property damage as part of your insurance requirements, the coverage amount may differ. Some states also require PIP coverage and uninsured/underinsured motorist coverage.

For more on different coverage requirements, see our guide to how much car insurance you really need.

Ways to Save with Auto Insurance Discounts

Many insurance companies, in an effort to attract customers, offer discounts to qualifying drivers. A common discount is the “multiline,” where you are able to lower your car insurance premiums by bundling multiple policies. Other discounts include paying for your premium in full upfront, signing up for electronic delivery, and safe driver discounts. Contact your insurance company to see what they offer.

Bundling discounts are a good reason to schedule regular personal insurance planning sessions to review all of your coverage and find the best deals.

The Takeaway

Understanding the factors that affect insurance premiums can help drivers anticipate costs and budget for this necessary expense. The biggest factors affecting car insurance premiums are age and location. Some factors, like vehicle make and gender, are more of an issue for younger drivers. Knowing which factors are within your control may help you lower your premiums. Maintaining a clean driving record and asking about discounts are two ways to keep premiums down.

A great way to find the going rates for car insurance in your area is to shop around online. SoFi auto insurance helps you compare companies within minutes, saving you time and hassle.

FAQ

How much does the average American pay for car insurance per month?

The average American pays $100.33 per month for a car insurance premium.

At what age is car insurance most expensive?

Around age 16. Typically, car insurance for first-time drivers is the most expensive.

Is insurance cheaper once you are 25?

The older you are, the more your insurance premiums tend to drop because you’re perceived as a more experienced driver. Of course, premiums also depend on other factors such as your driving history and vehicle type.

Photo credit: iStock/Tatyana Kochkina

Insurance not available in all states.
Gabi is a registered service mark of Gabi Personal Insurance Agency, Inc.
SoFi is compensated by Gabi for each customer who completes an application through the SoFi-Gabi partnership.

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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Homeownership is expensive, no matter what type of property someone owns. And the cost of homeowners insurance can vary greatly depending on where someone lives, the size of the home, and the type of insurance.

If you’re debating whether you can afford to buy a single family home or a condo, make sure to factor in condo insurance vs. homeowners insurance costs. Keep reading for the full lowdown.

What Is the Difference Between Homeowners Insurance and Condo Insurance?

The difference between homeowners insurance vs. condo insurance is fairly straightforward. Both protect homeowners financially, but the policies differ in the scope of their coverage. (Neither policy should be confused with mortgage insurance, which is totally different)

Homeowners insurance protects most of the property someone owns (inside the home, outside the home, and the surrounding area). Condo insurance protects only the interior of the home. Because multiple condos share one building, the exterior and area around the condo are the responsibility of the homeowners association (HOA) master insurance policy.

You can learn more about both types of coverage by shopping around with online insurance brokers.

How Does Dwelling Coverage Differ for Home Insurance vs Condo Insurance?

When it comes to homeowners vs. condo insurance, how dwelling coverage works varies:

•   Homeowners insurance: Dwelling coverage is based on how much it might cost to completely rebuild the home.

•   Condo insurance: How much dwelling coverage is needed is based on what the HOA master policy covers. For example, some master policies may cover select interior structures (like drywall or ceilings) or the entire interior.

Recommended: First-Time Home Buyer’s Guide

How Does Liability Coverage Differ?

For liability insurance, coverage needs can also be different for condos and homes.

•   Homeowners insurance: Liability coverage extends to the entire property (inside and outside the home).

•   Condo insurance: Covers accidents that happen inside the condo.

How Does Personal Property Protection Differ?

Personal property protection works similarly whether someone has a homeowners policy or a condo policy. This type of coverage is designed to protect the policyholder’s belongings from damage and theft. HOA master policies don’t include this coverage, so condo owners need to make sure they purchase it. Both homeowners and condo owners can benefit from personal property protection.

Cost of Homeowners and Condo Insurance by State

To get a better idea of what each type of insurance costs, let’s look at the average condo insurance vs. homeowners insurance costs by state.

As with most insurance, you can lower your premiums by choosing a higher homeowners insurance deductible.

Condo Insurance vs Homeowners Insurance Cost

Once someone is ready to buy homeowners insurance or condo insurance, price is likely top of mind. When it comes to the average condo vs. homeowners insurance cost, homeowners is $1,680 per year and condo is $429 per year.

Types of Condo Insurance

There are a few types of condo insurance to be aware of:

•   Personal property. When someone has personal property protection, they can be reimbursed for the cost of repairing or replacing their belongings, such as clothing and electronics, up to a certain amount.

•   Loss of use. If the owner needs to leave their condo to stay in a hotel during repairs after a covered incident occurs, loss of use coverage can help pay for things like hotel stays and dining out.

•   Liability. Liability coverage can help out if the condo owner is legally responsible for damage or injuries caused to someone else due to an accident that occurs in their condo.

•   Dwelling. This type of coverage steps in to pay for replacing or repairing everything in the condo unit (starting from the drywall in) after a covered loss.

•   Loss assessment. If an accident occurs in a shared area of a condo’s property (like the pool, stairs, or clubhouse), then the HOA master policy is the first line of defense. However, if damages exceed the amount that this policy will cover, then the residents may end up responsible for covering the remaining costs, which is where loss assessment coverage can come to the rescue.

Recommended: The Difference Between Homeowners Insurance and Title Insurance

Condo Insurance Benefits

While the HOA does have some insurance coverage that protects parts of condo units, residents really need to have their own condo policies to make sure they’re fully protected. The benefits of condo insurance are many, from covering repairs to replacing belongings after a break-in to paying medical bills after a guest slips and falls.

Condo owners who are still unsure what sort of policy to choose may benefit from reading How Much Home Insurance Do I Need?

Types of Homeowners Insurance

These are the main homeowners policy options:

•   HO-1: Only dwelling protection. Also known as hazard insurance.

•   HO-2: Includes personal belongings and extra perils on top of basic coverage.

•   HO-3: Includes dwelling, belongings, and liability coverage. This is the most popular type of coverage.

•   HO-4: Applies to policyholders who rent out their home and want liability and personal property coverage.

•   HO-5: This is a comprehensive policy that usually applies to brand-new homes and comes with extra coverage.

•   HO-6: The term HO-6 is another way of saying condo insurance.

•   HO-7: This type of coverage is for mobile homes.

•   HO-8: Robust coverage for older and historical homes.

It’s always possible to change homeowners insurance policies if someone decides they want more coverage.

Homeowners Insurance Benefits

The type of homeowners policy someone has influences the benefits of their policy. Generally speaking, the point of this insurance is to financially protect homeowners from disastrous events that can destroy a home, but it can also protect against theft and liability.

If you have a mortgage, homeowners insurance may be required by your lender.

The Takeaway

If someone owns a home or a condo, they need some type of insurance coverage to protect themselves from financial hardship. Homeowners policies typically include dwelling coverage for the building itself, while condo policies do not. Both cover the contents of the home, and may include liability coverage too. The average annual cost of a homeowners policy is $1,680, while the average annual condo policy is $429.

If you need a new homeowners policy, you can turn to SoFi. We teamed up with Experian to deliver homeowners insurance built for the 21st century — without brokers. Policies are customizable, and getting a quote online takes just minutes.

FAQ

What is the key difference between a homeowners and a condo policy?

The main difference between condo and homeowners insurance coverage is what each type of insurance protects. Condo insurance only protects the interior of the condo whereas homeowners insurance protects the entire property including the outside of the home and the land around it.

Which type of property insurance coverage is more expensive?

Generally homeowners insurance is more expensive (average cost of $2,777 per year) than condo insurance (average cost of $759 per year). That being said, the location, size, and repair cost of the property can lead to a condo being more expensive to insure than a single family home.

What’s the difference between HO3 and HO6?

An HO3 policy protects a single family home with dwelling, belonging, and liability coverage. An H06 policy on the other hand is designed for condo owners to protect the inside of the condo, as well as providing belonging and liability coverage.

Photo credit: iStock/miniseries

Auto Insurance: Must have a valid driver’s license. Not available in all states.
Home and Renters Insurance: Insurance not available in all states.
Experian is a registered trademark of Experian.
SoFi Insurance Agency, LLC. (“”SoFi””) is compensated by Experian for each customer who purchases a policy through the SoFi-Experian partnership.

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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The average annual cost of flood insurance through the National Flood Insurance Program (NFIP) is $850 for California homeowners. But renters, who would only be insuring their personal possessions and not the building they’re in, can expect to pay much less for their coverage.

The cost of insuring your rental home’s contents still can vary significantly, depending on several factors, including if you live in a high-risk area, the coverage amount you want, and the deductible you choose.

Read on to learn more about purchasing flood insurance as a California renter, including what it can cost and why you might choose to purchase a policy to protect your belongings.

What Is Flood Insurance?

While most renters insurance policies cover some types of water damage (from a burst pipe or an overflowed toilet, for example), a standard renters policy typically doesn’t cover flood damage that comes from outside the home or from underground sources.

To be sure your furniture, electronics, and other belongings are protected if waters rise and flooding affects your rental home, you may need to buy a separate flood policy that will help you repair or replace what you’ve lost.

How Can Renters Get Flood Insurance?

Most people get their flood coverage through the NFIP, which is managed by the Federal Emergency Management Agency (FEMA). The NFIP works with a network of insurance companies across the country to provide policies.

FEMA’s flood insurance for renters and others isn’t sold directly by the federal government. Instead, you can purchase an NFIP policy through an authorized insurance company, under what’s known as a Write Your Own (WYO) program. The NFIP works with more than 50 insurance companies, so if an agent or broker helped you purchase your renters or auto policy, you can probably work with that same person or organization. If not, you can get help finding an NFIP provider online at FloodSmart.gov, or you can call the NFIP at 877-0336-2627.

You also may want to check into private, non-government-backed flood insurance policies that may be offered in your area. These policies have different coverage limits, premiums, and deductible amounts than what an NFIP policy offers and can be a good fit for some needs. Just be sure your quote is coming from a stable company that is capable of paying out claims in the event of a major flood.

What Is Covered by Flood Insurance?

The NFIP offers two types of flood coverage. You can get a policy that covers a building only, a policy that covers only the contents in the building, or you can get coverage for both a building and its contents.

It’s up to a building’s owner to decide whether to buy flood insurance for their structure. Renters only have to worry about getting coverage for the possessions they keep in their rental condo, apartment, or house.

What does flood insurance cover for renters? An NFIP contents-only policy can provide up to $100,000 in personal property damage and typically covers items like:

•   Personal belongings, including clothing, furniture, and electronic equipment (TVs, computers, etc.)

•   Valuables, such as original artwork (up to $2,500)

•   Portable and window air conditioners

•   Washer and dryer

•   Microwave or convection oven

•   Rugs

•   Curtains and other window coverings

What Isn’t Covered by Flood Insurance?

Most personal property kept in a basement — including money, furniture, clothing, and electronics — won’t be covered by NFIP flood insurance. So if you’re renting a basement apartment (even if it’s a walkout basement), you’ll want to be clear about what can and can’t be insured.

Items you keep outside the building also may not be covered under an NFIP policy, including your car, bicycle, or plants.

NFIP flood insurance also won’t cover the costs you may incur if you must move to temporary housing because of flooding damage. (If you have renters insurance with “loss of use coverage,” you may be out of luck there, too. Loss of use coverage typically pays out only when the reason you’ve been displaced is covered by your renters policy — and as noted above, the standard renters policy doesn’t cover flooding damage.)

Keep in mind that private flood policies may have different coverage exclusions.

Recommended: The Cost of Repairing a Plumbing Leak

Is Flood Insurance Required for California Renters?

Flood insurance isn’t legally mandated for renters in California, or anywhere in the U.S. And though your landlord can require renters insurance, a landlord can’t make renters purchase a separate flood policy.

However, if you feel your personal property could be at risk, you may want to consider adding flood protection.

Residents may worry more about their risk from earthquakes and wildfires, but according to the Public Policy Institute of California, much of the state is vulnerable to flooding. The valleys are susceptible to overflowing rivers. Some coastal areas are unprotected from high tides and storm-driven waves. Deserts and areas burned by wildfires may be hit by flash flooding. And urban areas with poor drainage systems and lots of concrete are at risk of flooding from heavy rains.

FEMA says just one inch of floodwater can cause up to $25,000 in damage. And without a flood policy, the cost of replacing your ruined belongings would fall to you.

How Can You Assess Your Rental’s Risk?

Knowing your designated flood zone can help you decide if you want to prioritize purchasing flood insurance for your rental. You can find your zone by entering your address at the FEMA Flood Map Service Center at MSC.FEMA.gov. Buildings in zones A and V are at the highest risk for flooding, while those in zones B, C, and X are considered at moderate risk.

Even if you don’t live in a high-risk zone, you can still experience flood damage. More than 20% of all insurance claims come from moderate- to low-risk flood zones, according to NFIP data.

If you’re new to the state or your city — or even if you’ve just moved to a new building — you may want to speak with your neighbors or landlord about the history and potential for flooding.

How Much Is Flood Insurance for Renters?

The NFIP offers contents-only policies for as low as $100 annually. Your premium can vary based on several factors, including the items you plan to protect and their replacement cost.

Remember, with an NFIP contents-only policy, the maximum amount of coverage you can get is $100,000. If your needs go beyond that threshold, you may want to consider buying excess flood insurance through a private flood policy. Or you may find a private policy alone is a better fit for you.

If it seems as though adding a flood policy on top of the cost of renters insurance might be beyond your budget, you may be able to lower the premium by raising your deductible amount. And your insurance agent can probably make other suggestions to keep the cost down.

It might make sense to sit down and look at how renters insurance for flooding would fit — along with life, car, health, and standard renters insurance — as part of your overall personal insurance planning. Don’t put off the decision to purchase until forecasters are predicting a potential flood event, though. There is typically a 30-day waiting period for an NFIP flood insurance policy to go into effect.

Recommended: Different Types of Insurance Deductibles

The Takeaway

FEMA offers flood insurance for renters, known as contents coverage, for as low as $100 a year through the National Flood Insurance Program (NFIP). But the cost of an NFIP policy or a private (non-government-backed) flood policy can vary significantly depending on where you live and what you want to protect. Flood insurance is a standalone policy, so the premium would be on top of whatever you may be paying for renters insurance. (Most renters insurance policies don’t cover flood damage.)

While SoFi doesn’t offer flood insurance, the National Flood Insurance Program offers coverage that can protect you from expensive damage.

If it’s time to reevaluate your overall insurance plan, SoFi can help. SoFi teams with top carriers to help you get reliable coverage with the convenience of shopping for insurance online. With SoFi Protect, you can search for the coverage you need — for your home and belongings, life, and car — at a price you can afford.

FAQ

Is there flood insurance for renters?

Yes. Renters can get contents-only insurance through the National Flood Insurance Program (NFIP) or a private (non-government-backed) flood policy.

Can my landlord require flood insurance?

No. Flood insurance is not legally mandated in any state, and landlords can’t require renters to carry it.

Will my bicycle, kids’ toys, and other things I store outside my apartment be covered by flood insurance?

An NFIP contents-only policy won’t cover items that are kept outside, and there are also limits on what an NFIP policy will cover in a basement.

Photo credit: iStock/Cunaplus_M.Faba

Insurance not available in all states.
Gabi is a registered service mark of Gabi Personal Insurance Agency, Inc.
SoFi is compensated by Gabi for each customer who completes an application through the SoFi-Gabi partnership.

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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Dental care is an important part of maintaining a healthy lifestyle, as oral health is connected to health issues in other parts of the body.

The demand for dentists, like other health care professionals, is on the rise, partly due to an aging U.S. population and partly due to more attention on dental health with each generation. The aging population is likely to need additional oral care, some of which can include complicated procedures.

By learning about the average tuition costs and ways to pay for dental school, prospective students can figure out if a dental career is the right choice for their future.

Employment Outlook for Dentists

The U.S. Bureau of Labor Statistics (BLS) projects there to be a 6% increase in available dentist jobs from 2021 to 2031. Dentists can work in a variety of settings, such as in private practice — either on their own or with a partner — or in an outpatient care center, among others.

The median annual salary of a general dentist was $163,220 in 2021. For perspective, the median annual U.S. income in the same year was $70,784.

While dentistry pays well, it also costs a lot to become a dentist. Dental school programs typically take four years to complete after students have already completed a bachelor’s degree. A degree from an accredited dental school will be either a D.D.S. — Doctor of Dental Surgery — or a D.M.D. — Doctor of Dental Medicine.

Individual universities determine which degree is awarded, but they are both approved by the Commission on Dental Accreditation (CODA), a part of the American Dental Association (ADA). Whichever degree a dental graduate is awarded, chances are they may also have hundreds of thousands of dollars worth of student loan debt to contend with after graduation.

How Much Does Dental School Cost?

The range of dental school costs depends on whether a student is in state (resident) or out of state (non-resident), and whether attending a public or private school. In-state public school tuition is typically going to be the least expensive option for most students.

According to the ADA, the average first-year cost of dental school (public or private), including tuition and mandatory fees, in 2021-2022 was $53,601 for residents and $71,742 for non-residents.

The cost difference between public schools and private schools can be substantial. The average resident cost for the first year of a public dental school program was $39,662, while the resident cost for private dental school was $72,271. After four years in school, students are looking at between $158,648 and $289,084 worth of debt, on average.

According to the American Dental Education Association (ADEA), in 2021, 81% of dental school students graduated with dental school debt. The average debt for a dental school graduate for the same year was $284,855.

Prospective students can compare the cost of dental schools and then determine how much they are willing to pay for their education. According to the ADA, there are 70 accredited dental schools throughout the United States and 10 in Canada.

Ways to Pay for Dental School

Even though dental school tuition can be expensive, students have options when figuring out how to afford it. Students can explore scholarships, grants, fellowships, or service programs to help pay for dental school.

Federal or private student loans are also an option. After graduating from dental school, some borrowers may consider refinancing their student loans as they pay off dental school debt. Continue reading for more details on ways to pay for dental school.

1. Scholarships and Grants

Scholarships and grants are awards that, in most cases, don’t have to be repaid. For students without the means to pay for tuition and other costs from personal savings, exploring these options may be a good place to start.

Dental schools may offer scholarships and grants to students who meet certain academic standards or who are working towards a certain type of degree, for example. When researching dental schools, prospective students may consider asking financial aid offices about available scholarships and grants.

Along with reaching out to schools, students may want to research scholarships and grants through organizations like The American Dental Association, The American Association of Public Health Dentistry, or The American Dental Education Association. There are also a variety of online scholarship search tools that students can use to find scholarships.

Recommended: What Is a Scholarship & How to Get One?

2. Employment

Dental school is rigorous, but if students have the time and energy, they may want to consider working to supplement their educational costs. The Federal Work-Study program is available to graduate and professional students with financial need, and has the same eligibility requirements and position availability as it does for undergraduate students. Financial aid offices at individual schools will have information pertaining to this program.

Training grants and fellowships, an option some dental students might find appealing, are sources of funding that often include a stipend and sometimes cover part of a student’s tuition.

These programs are designed to further a student’s education in a specific research area that interests them. They differ from simple grants in that there is a work component to them.

3. Service Programs

The Bureau of Health Workforce offers scholarships, loans, and loan repayment programs to eligible healthcare students and workers, including those in the dental field. One program, the National Health Service Corps (NHSC), provides scholarships to eligible students pursuing degrees in certain health professions.

In exchange for two years of full-time service in an underserved area, recipients will receive one year of scholarship support, up to a limit of four school years. The Bureau of Health Workforce also offers grants to eligible applicants through the Oral Health Workforce Development programs.

Service programs are also offered through the Indian Health Service (IHS). Eligible American Indian and Alaska Native students can apply for the IHS Scholarship, externship programs, or loan repayment programs. Scholarships are available to eligible students in pre-dental programs or for those completing dental school.

Recipients agree to serve a two-year commitment with the IHS. Third-year dental students can choose to apply for an externship, which typically spans two to four weeks, with placement in an Indian health facility. Loan repayment programs are either through the IHS or the NHSC. Both include a service commitment.

Students willing to serve in the military may want to consider programs through the United States Army, Navy, or Air Force. Each branch offers scholarships through the Health Professions Scholarship Program (HPSP).

Military scholarships cover full tuition and other related costs, plus a monthly stipend. Recipients agree to serve on active military duty in exchange for scholarship funds — the number of years varies with the branch and the number of years the student receives the scholarship.

4. Federal Student Loans

Completing the FAFSA® (Free Application for Federal Student Aid) form is the first step students should take to determine eligibility for federal financial aid. To fill out the form, they will need to provide personal identification and financial records.

Federal student loans for graduate and professional school students are either Direct Unsubsidized Loans or Direct PLUS Loans. Students may borrow up to $20,500 each year in Direct Unsubsidized Loans, and eligibility is not based on financial need.

If a student has costs in excess of that borrowing limit, they may want to consider a Direct PLUS Loan. Like a Direct Unsubsidized Loan, eligibility for a Direct PLUS Loan is not based on financial need, although a credit check is required.

Students are encouraged to ask the financial aid office at their school about school-based loans that might be available. Some federal funds are offered to schools instead of directly to students and are tied to certain eligibility requirements.

5. Private Student Loans

It’s always recommended that students exhaust all federal student loan options before considering a private student loan. But if there is still a financial need, a private student loan may be the right choice for some students. Private student loans are available from private lenders and are awarded based on factors including your income, credit history, and credit score, among other factors.

Considering Student Loan Refinancing

After graduating, now-dentists may consider refinancing their student loans to secure a more competitive interest rate or more favorable terms. Refinancing also allows borrowers to combine all their loans into a single loan. This won’t be the right choice for all borrowers because when you refinance federal loans you’ll lose access to any federal benefits — like any loan forgiveness options.

Should you refinance your student loans? The answer is personal and will depend on factors including the amount of student debt you currently have, your credit score, income, and whether you are refinancing without a cosigner.

A cosigner is someone who agrees to repay the loan if you are unable to do so for any reason. Adding a cosigner can potentially strengthen your application, allowing you to secure more competitive terms than without the cosigner.

Recommended: Student Loan Refinance Guide

To get an idea of what refinancing could do for your student loans, take a look at SoFi’s student loan refinancing calculator.

The Takeaway

Dental school can be expensive but can lead to a fulfilling and lucrative career. When determining how to pay for dental school, students can explore dental school scholarships, grants, federal student loans, and private student loans. After graduating, former students may consider student loan refinancing, to combine their existing loans and hopefully secure more competitive terms.

Graduate school loans from SoFi have competitive rates, no fees, fixed and variable loan rates, and multiple repayment options. Pre-qualification can be completed in as little as three minutes.

SoFi members can access live customer support seven days a week, may qualify for rate discounts on additional SoFi loans, and have access to other exclusive member benefits.

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SoFi Private Student Loans
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SoFi Student Loan Refinance
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