pregnant woman on smartphone in bed

Balancing Paying Off Student Loans & Starting a Family

These days, planning for parenthood can seem even more daunting thanks to student loan debt. Older millennials ages 25 to 34 owe an average debt of $42,000, including credit card and student loan debt, according to Northwestern Mutual’s 2018 Planning & Progress Study.

So when looking to start a family, it’s important to understand how to prioritize your debts and all of the new budget needs you’ll encounter. Raising a baby while making student loan payments is certainly possible, but it just means taking those nine months (or more, if you are thinking ahead) to sort out your finances first.

Student loans and pregnancy go almost hand-in-hand these days, since American women carry two-thirds of all student debt , according to the American Association of University Women. The last thing anyone wants to be thinking about when pregnant, or holding a new baby, is missing a student loan payment, so it helps to plan ahead to start getting your debt under control. Paying off student loans while saving for children is definitely doable.

Whether you are considering refinancing your student loans, lowering your monthly payments by switching to an income-based repayment plan, or are just looking to save more money before the arrival of your new baby, there are plenty of ways to stay on top of your student loan payments while saving for new kid costs.

Preparing Financially for Your First Child

For most families, housing-related costs such as rent, insurance, or a mortgage are their largest expenses. So, if bringing a new baby into your home means saving up for a big move, or even just expanding into a two-bedroom apartment, evaluating if you need more space for your growing family can certainly put a strain on the budget. Childcare itself is the second-largest expense after housing for most families.

Plus, perhaps you even want to start saving now for your child’s future education, so that hopefully they are less burdened by student debt. All of these expenses, in addition to the general costs of raising a child, can really add up and make it feel like paying your monthly student loan payment is not a priority.

However, there are a number of solutions to explore to see if you can reduce your monthly student loan payments and put those savings toward a new baby.

Exploring Income-Based Repayment

If one person in your partnership is becoming a stay-at-home parent, or even taking an extended parental leave from work, consider applying, or reapplying, for an income-based repayment plan, even if you’re already on one for your student loans.

Since your loan payments were originally calculated based on your income while employed, if you inform your loan servicer about your change in circumstance, you might be granted a different, lower payment plan.

These plans can make your monthly payment more affordable, based on your income and family size. Most federal student loans are eligible for at least one income-driven plan .

Income-Based Repayment

Payments are generally 10% or 15% of your discretionary income , depending on when you first received your student loans. Any outstanding balance is forgiven after 20 or 25 years, but you may have to pay income tax on that amount . You generally must have a high debt relative to your income to qualify for this repayment plan.

Income-Contingent

Payments will be either 20% of your discretionary income, or the amount you would pay on a fixed 12-year repayment plan adjusted to your income, whichever is less. Most borrowers can qualify for this plan, including parents, who can access this option by consolidating their Parent PLUS loans into a Direct Consolidation
Loan
. Outstanding balances are forgiven after 25 years.

Revised Pay As You Earn (REPAYE)

Payments are 10% of discretionary income , and outstanding balances will be forgiven after 20 years for undergraduate loans.

Pay As You Earn (PAYE)

For this repayment plan, you are required to make payments of 10% of your discretionary income. To qualify, each of those payments must be less than what you’d pay if you went with the 10-year Standard Repayment Plan. The repayment period for PAYE is capped at 20 years. You must be a new borrower on or after Oct. 1, 2007 to qualify .

The important thing to remember about all of these plans is that you must reapply every year, even if your circumstances don’t change. Once you switch over to an income-based repayment plan, you can start saving the difference in amount from your earlier payments. This extra savings could go toward expenses for your new baby.

Student Loan Consolidation and Forbearance

Another option to consider when having a baby while paying off student loan debt is consolidation. Student loan consolidation can lower your monthly payment; however, it does so by lengthening your repayment period, meaning you will end up paying more overall due to the additional interest payments.

A Direct Consolidation Loan can be a smart way to stay on top of student loan payments, and also set yourself up to qualify for eventual loan forgiveness and/or income-based repayment plans.

If you find yourself in a situation where you are truly unable to make your student loan payments due to the costs of a new baby, you can also consider student loan forbearance.

Forbearance temporarily allows you to stop making your federal student loan payments, or at least temporarily reduce the amount you have to pay. In order to request a general forbearance and get approved, you must meet certain requirements .

This usually means you are unable to make monthly loan payments because of financial difficulties, medical expenses (which might include high hospital bills from pregnancy), or change in employment (especially key if one parent is going to stay at home with the baby).

Ways To Save Money

If you are already on an income-based repayment plan and have considered other options to reduce your student loan debt, and are finding it is still not enough to comfortably save for a new baby, consider some other savings tricks to help you manage your money better.

In order to make sure some money ends up in your savings account every month, you can set up a portion of your paycheck to deposit directly into your savings account, instead of just a checking account.

Most banks also have the option to set up recurring transfers yourself between your own accounts. This way, your desired amount will get transferred into savings without you having to think about it.

Keep in mind there are also tax benefits to having a baby , which can earn you some extra cash back to help you reduce your overall amount of student debt.

Refinancing Your Student Loans During Pregnancy

Refinancing your student loans is another way to make your loans more manageable. Refinancing student loans through a private lender such as SoFi can give future parents the opportunity to consolidate multiple student loans into one loan with a single monthly payment.

Refinancing can provide great value as you can choose your repayment terms and potentially end up with a lower payment to free up money. (Just remember that doing this means extending your loan term, which would up the total interest you’ll pay over the life of the loan.)

Take a look at our student loan refinance calculator to see how your loan could change when you refinance. Those savings can then be put toward staying financially secure while having a baby.

Learn more about refinancing with SoFi and see what your new loan could look like in just two minutes.


The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
Notice: SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers such as Income Based Repayment or Income Contingent Repayment or PAYE. SoFi always recommends that you consult a qualified financial advisor to discuss what is best for your unique situation.
This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice about bankruptcy.
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Do You Spend More Than Your Peers?

Living in America? Consider how your average monthly expenses stand in comparison to your country-peeps:

Every year , the average American spends:

•  $18,886 on housing (including property taxes, if applicable)

•  $9,049 on transportation (including gas)

•  $7,203 on food (groceries and eating out)

•  $2,913 on entertainment

All that expense seems to be pretty standard, even before you start chasing the classic American Dream. For that, it’s easy to look to your peers to see how it’s done (even if they’re doing it wrong).

An old-school term for this is “keeping up with the Joneses,” trying to acquire as many things your neighbors next door. Even for the most competitive, that race gets tiresome very fast. Once you realize that the best person to compete against is not others but yourself, you can get more focused on your own financial goals.

Otherwise, comparing yourself with others will leave you in a constant state of distraction. Until then, you may be burning many wasted calories that could be put to better use focused on your own average monthly expenses, spending, budget and goals.

Let’s face it, though: some of this is a result of social media. Part of the need for keeping up with your friends comes from Facebook and Insta envy. Seeing your friends post photos and videos of their latest acquisitions (cars, houses, tech equipment) can light that competitive fire in you (or maybe it’s just plain envy). Sometimes, a message like that from an online friend can be even more powerful and influential than an advertisement from the actual brand.

How Do You Compare?

Data regarding average monthly expenses among peer groups is shown on a website called Status Money . It matches individuals to a peer group based on income, geography and age to compare how other people are doing in relation to your financial situation.

It also lets you compare your spending habits with like-minded people among your peer group. Average monthly expenses include transportation costs, shopping, eating out and other obligations.

How it came about: Status Money cofounder Majid Maksad was formerly a data analyst for Citi; he found
that
, even during the Great Recession, Americans were not becoming as frugal and financially careful as you might expect.

In fact, what he found was the complete opposite: continued spending, not by personal choice but mostly driven by writing off bad debts through foreclosures and personal bankruptcies.

What it boils down to: think differently. Train yourself to be more aware.

“It wasn’t a change in behavior that was occurring,” Maksad told Forbes about the stats he discovered. “And that raised the question: ‘How do you get people to change behavior?’”

Perhaps the answer lies in knowing — not assuming — exactly what your peers average monthly expenses are. The results seem to support this. A study on the early users of Status Money found that comparing yourself to those in your peer group (a minimum of 5,000 people) could strongly influence your spending habits (this can also be called FOMO spending). Between September 2017 and April 2018, spending among those surveyed by Status Money declined by about $600 a month.

“People need to know what others are doing with money,” Maksad told CNN Money, “but in a completely secure and anonymous way.”

Comparing Finances To Your Peers

When comparing finances online, completely secure and anonymous is how most people want to roll, particularly Millennials. If you are a part of this largest living generation, here are some broad strokes to give you a general idea of where you stand when compared to your peeps. It’s all according to a survey from the American Institute of Certified Public Accountants:

•  Over three-quarters of Millennials want to have the same clothes, cars and tech gadgets as their friends.

•  Around half of have used a credit card to pay for daily necessities.

•  Over 25 percent of them had late payments or are dealing with bill collectors.

•  Seven out of 10 of those surveyed define financial stability as being able to pay off of their bills each month.

•  Gender difference are also a thing. The study reveals that men are more inclined to keep up with their friends when it comes to material goods. Women, however, tend to be more frugal and consider saving money important.

According to the apartment rental site RentCafe, younger adults may have spent as much as $93,000 by age 30 on rent. During their first decade in the workforce, rent can take up about 45 percent of their income, which can leave next to nothing for savings, investments, and paying off debt. Compare that to GenX adults, who spent only 41 percent of their income on rent per year by age 30 (adjusted for inflation); Baby Boomers spent only 36 percent of their income on rent back in the day.

Are you paying more than 30 percent of your income on housing? The U.S. Department of Housing and Urban Development considers you “cost-burdened.” If you’re spending 50 percent or more on housing, you maybe put in to the category of “severely cost burdened.”

Tips on How To Combat Peer Pressure Spending

Here are a few ways to put blinders on when that peer pressure spending urge comes on:

Get Real

Make a deal with yourself to be honest about your overspending. Don’t try to fool yourself or rationalize away unnecessary purchases. Ask yourself — constantly — “Do I really need this, or am I just trying to keep up with my friends?”

Get Stubborn

Once you have a budget in place, be rigid about sticking to it. If you can’t afford something, don’t let the devil on your shoulder sweet talk the angel on your other shoulder. Step in and take charge. With time, the compulsion to give into your spending impulses will start to weaken and listen to you.

Treat Yourself

If you’re doing a good job of sticking to your budget and not overspending, allow yourself a periodic reward that you promise yourself in advance (once a month, every six weeks, etc.). Go have a meal with friends or buy that pair of shoes you really like. Be sure not to treat yourself so well that you overspend and wind up taking giant steps backward.

Get Help With SoFi Relay

Often, it helps when you can keep tabs on your spending and have access to someone to talk through your expenses without fear or embarrassment. With SoFi Relay you’ll have access to both of these, and more, at no cost!

SoFi Relay gives you insight into your cash flow and spending habits so you can see the full picture of your finances. Additionally, you can connect all of your accounts on one dashboard to get a bird’s-eye view of your balances on the go.

What’s more? You can talk with a financial planner about your spending habits & take a serious look at your expenses to create an action plan to help achieve your financial goals.

Keep track of your spending with SoFi Relay!


The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
The information provided is not meant to provide investment or financial advice. Investment decisions should be based on an individual’s specific financial needs, goals and risk profile. Advisory services offered through `SoFi Wealth, LLC. SoFi Securities, LLC, member
FINRA / SIPC .
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Student Loan Advice For Recent College Graduates

Now that you’ve graduated from college and started your career, you may have already received some student loan advice from well-meaning confidantes (or strangers, let’s be honest).

But something that worked well for a family member or friend may not work for you. With student loan payments looming, it’s wise to create a student loan repayment strategy based on your unique situation as soon as possible.

That includes understanding what type of student loans you have, what repayment options are available, and how to eliminate your debt as quickly as possible.

5 Pieces of Student Loan Advice to Help You Start Off On the Right Foot

Leaving college and entering the so-called “real world” can be overwhelming enough as it is. Knowing how you’re going to pay down your student loans can make everything else seem a little easier.

As you consider the right repayment strategy for your student loans, these tips might help. This stuff can get complicated, so of course we always recommend that you speak to a qualified financial advisor to help determine what’s best for you and your situation.

1. Know What Type of Student Loans You Have

There are two types of student loans: federal and private. The type of student loan you have can help determine what sort of repayment options are available to you and if you qualify for certain benefits, including student loan forgiveness and income-driven repayment plans. (Private lenders don’t typically offer flexible repayment options like these, so if your student loans are eligible for them they’re probably federal loans.)

If you don’t know what type of student loans you have, finding out should be easy. If you applied for student loans by filling out the Free Application for Federal Student Aid (FAFSA®), for example, you have federal loans. You can also use the National Student Loan Data System (NSLDS) to track down all of the information on your federal student loans.

If you applied with a private lender and underwent a credit check to get approved, you have private student loans. If you’re still not sure, check with your student loan servicer. You likely received an email or letter from your servicer encouraging you to open an online account. Find that message and either email or call your servicer and ask.

2. Know When Payments Start

If you haven’t already started making monthly payments, it’s a good idea to find out when they’re due and to set up your payment schedule.

In most cases, you’ll have a six-month grace period from the time you left school. Check with your servicer as soon as possible to find out exactly when your first bill is due is and how to make payments.

3. Understand Your Repayment Options

Depending on what type of student loans you have, you may have different repayment options. With federal loans, for instance, you typically start out with the default 10-year repayment plan.

To simplify things, you can consolidate your federal student loans through the Department of Education . But while this can replace several loans with one, you can end up with a higher interest rate overall.

That’s because the government takes the weighted average rates on all of your loans and rounds it up to the nearest one-eighth of a percent (0.125%).

If you can’t afford your monthly payments, however, you can apply for one of four income-driven repayment plans, including:

•  REPAYE Plan: Your monthly payments are generally 10% of your discretionary income, and your repayment term will be extended to 20 or 25 years.

•  PAYE Plan: Your monthly payments are generally 10% of your discretionary income, and your repayment term will be doubled to 20 years.

•  Income-Based Repayment (IBR) Plan: Your monthly payment will generally be 10% or 15% of your discretionary income, and your repayment term will be either 20 or 25 years.

•  Income-Contingent Repayment (ICR) Plan: Your monthly payment will be calculated as the lesser of 20% of your discretionary income or what you would pay on a 12-year repayment plan with fixed payments. Your repayment term will update to 25 years.

Anyone can apply for the REPAYE and ICR plans , but you need to demonstrate financial need to get approved for the PAYE and IBR plans.

With federal loans, you may also qualify for the Public Service Loan Forgiveness program. Through PSLF, you can qualify to have your loans forgiven after you’ve made 120 qualifying monthly payments on an income-driven repayment plan while working for an eligible employer.

Eligible employers include government organizations, tax-exempt not-for-profit organizations, and other not-for-profit organizations that provide qualifying public services.

Only Direct Loans are eligible for PSLF, so if you have a different type of federal loan —like a Federal Family Education Loan (FFEL) a Perkins Loan—you’ll need to consolidate it with a Direct Consolidation Loan.

Depending on your career choice, there may be loan forgiveness program options for you, such as through the military, schools, or hospitals.

If you have private student loans, your repayment term was determined by you and the lender when you first applied for your loans. Private student lenders typically don’t offer student loan forgiveness programs, such as SoFi.

4. Consider Refinancing Your Student Loans

Of all the student loan advice that you receive, this tip could make the biggest difference in eliminating your debt. Refinancing your student loans can save you thousands by reducing your interest rate, shortening your repayment term, or both.

Lenders like SoFi offer fixed and variable rates that can be lower than what you’re currently paying. If you qualify, SoFi will pay off your current loans with a new loan.

So, like federal loan consolidation, you can replace several loans with one. But if you qualify, you can also get a lower interest rate, which can reduce the amount of money you spend on interest over the life of your loan.

Remember, however, when you refinance your federal student loans with a private lender, you forfeit access to federal benefits like income-based repayment plans and student loan forgiveness.

5. Avoid Missing Payments and Defaulting

Whatever you do, avoid the temptation to just stop paying your student loans. You typically can’t get student loans discharged in bankruptcy like you can other debts, and defaulting on your student loans could damage your credit.

What’s more, the federal government can garnish your wages and tax refund for payment on federal loans, and private student loan companies can sue you.

In other words, repaying your student loans may not always be easy. But the alternative can be so much worse.

Finalizing Your Student Loan Repayment Strategy

After you consider these tips for paying off student loans, keep in mind that there’s no single right answer. Start by looking into federal loan consolidation, income-driven repayment, and student loan forgiveness.

But also look into refinancing your loans to see if you can save yourself both money and time. To see what your student loans could look like if you refinance with SoFi, take advantage of our easy to use student loan refinance calculator.

Regardless of how you choose to pay off your student loans, consider adding extra payments each month to pay down your debt even faster. This may require cutting back in other areas of your budget, but it can pay off in the long run.

And of course, we always recommend that you speak to a qualified financial advisor to help determine what’s best for you and your situation.

Looking for a way to make your student loans more manageable? Consider refinancing with SoFi.


The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third party trademarks referenced herein are property of their respective owners.
Notice: SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers such as Income Based Repayment or Income Contingent Repayment or PAYE. SoFi always recommends that you consult a qualified financial advisor to discuss what is best for your unique situation.
Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website on credit.
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20 Year Student Loan Refinance vs Income-Driven Repayment

Considering the over trillion-dollar student debt-load carried by millions of graduates in the U.S., it’s not exactly a surprise that many are exploring options for what their repayment journey will look like. For those looking for a lower monthly payment, a common option is income-driven student loan repayment.

For some students, an income-driven repayment plan, could be the best available choice. For example, this may be the correct course of action for those planning on having their loans forgiven through the Public Service Loan Forgiveness program.

Other times, this might not be the best or most affordable option over the long run, even for those looking for a lower overall monthly payment. That’s because lowering your payments often means extending your repayment timeline, which could mean paying more interest over the life of the loan.

It can be hard to do an apples-to-apples comparison of the two common options (a student loan income-driven repayment plan via the federal government and a student loan refinance from a private lender). That’s simply because what a borrower might pay on an income-driven repayment plan varies from person to person. However, it is still possible to make an informed decision about which makes more sense for your financial and personal situation and money goals.

The first step is gaining a thorough understanding of both common options. Then, you can make an informed decision about which is a better fit to your life and goals. Below, we’ll look at some pros and cons of both.

Income-Driven Student Loan Repayment

To understand income-driven repayment plans, it helps to first wrap your head around a standard repayment plan. Most people who take out a federal student loan or loans are opted into a repayment plan parsed out over 10 years. But standard repayment might not be the best option for everybody, because those carrying high debt balances may have a sky-high monthly payment.

The federal government also offers four income-driven repayment (IDR) plans, which are need-based options where monthly payments correspond to your income. Depending on your income, and by stretching these payments out over as many as 20 or 25 years, monthly payments could be quite minimal compared to the standard 10-year repayment plan.

You may have already caught onto this, but a student loan income-driven repayment plan is only offered on federal student loans. Federal loans typically offer more flexibility in repayment than private loans, which are procured from a bank, credit union, or other lender.

If you are looking for some respite from your monthly payments on private loans, you’ll have to speak with each lender to see whether they can work with you. (That, or you can consider refinancing, which we’ll discuss below.)

While choosing one of these plans may help to lower monthly payments, they generally will not lessen how much you pay over time. Spreading your loan out over 20 or 25 years could actually increase how much you pay in interest.

Why does this happen? Because with a low monthly payment, the borrower might not be chipping away at much of the loan’s principal, on top of which interest payments are calculated. Even worse, if payments are too low they might not even cover the entire interest charge for the month, which means that interest is added to the balance of the loan (is capitalized).

Because your monthly payment amount is contingent on your income, your income and corresponding payments will be reassessed each year. This means that your monthly payments will likely fluctuate over time.

Loans on an income-driven repayment plans are often forgiven at the end of the 20 or 25-year repayment period. But, under the income-driven repayment plans, any amount that is forgiven will be taxed as ordinary income in the year that the loan is forgiven. For many graduates, this is a harsh realization in the year that the loans are forgiven, especially if the loan has grown in size over time due to capitalized interest.

Any person considering one of these plans in order to have their loans forgiven will want to seriously consider the implications of a hefty tax bill. You should consider how you will be prepared to pay this bill. Will you save extra each month for taxes, in addition to your monthly student loan payment? These are all questions that you may want to research on your own, and potentially discuss with your loan servicer or a financial advisor.

Refinancing Student Loans

People with a student loan or multiple loans, especially loans with higher rates of interest, could consider refinancing instead. With refinancing, the new lender will pay off a borrower’s old loans with a new one.

Depending on the lender, this can be done with both federal or private loans. Generally, the bank or lender evaluates a potential borrower’s financial situation to see if they qualify for a better interest rate. At this point, the potential borrower can also look at options for lengthening or shortening the repayment timeline. This is typically called “changing the terms” of your loan.

Let’s talk about what it means to change the terms of a student loan. In an ideal world, you’re either keeping the same term (or even shortening the term), and when combined with a (hopefully) better rate of interest, you’ll likely save some money on interest. But it doesn’t necessarily have to be this way. You could also extend the length of the loan, remove cosigners, change from a variable rate to a fixed rate, and so on.

Why might one extend the life of their loan via refinancing? Usually, a borrower would do this to get lower monthly payments than they have on a standard, 10-year repayment plan. To be clear, this could cost a borrower more over time even if the loan is refinanced to a lower rate. That said, for some borrowers it still may be a better option than switching to an income-driven repayment plan.

Of course, you’ll want to do a side-by-side comparison of both options, although that’s not a particularly easy task considering that you can’t really predict how much you’ll pay on an income-driven repayment plan over the duration of a student loan, because it varies depending on your income each year.

And with a 20-year fixed-payment refinanced loan, you’re actually paying off the entire balance of the loan. This means you won’t have any part of the loans forgiven, which saves you from a potentially high tax bill .

Something else to consider: When you do a 20-year refinance that allows you to pay extra toward your loans without penalty, you can pay your student loans back faster than the 20-year period. For example, you could potentially pay a 20-year loan back in 10 years by making extra payments, all while keeping the flexibility of the resulting lower monthly payment.

Every lender has their own criteria for determining whether someone qualifies for particular types of loan and at what rates, but it’s usually based on credit score and history and your income (and may include other factors).

When is refinancing not a good idea? Basically, if you are ever planning to use one of the federal loan repayment or forgiveness options, like Public Service Loan Forgiveness. Because refinancing is the process of paying off loans with a private loan, refinancing federal loans with a private lender means you won’t have access to these federal repayment programs anymore.

At the end of the day, it’s up to you to make an informed decision about which of the two options is best for you and your financial situation. Good luck in your journey and in paying back your student loans!

Checking to see whether you qualify to refinance your student loans costs nothing and is unbelievably easy. SoFi offers competitive rates, borrower protections, and award-winning customer service.


The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
Notice: SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers such as Income Based Repayment or Income Contingent Repayment or PAYE. SoFi always recommends that you consult a qualified financial advisor to discuss what is best for your unique situation.
This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice about bankruptcy.
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What to Know About Replacing Windows in Your Home

As a homeowner, home window repair is a fact of life. Sometimes, you don’t have a choice—perhaps because of storm damage. Other times, you might replace the windows as part of a remodel to change the aesthetics of a space, or to reduce energy costs.

Sometimes, you’ll need to decide between window repair and replacement. Then, you’ll need to select options in materials and glass. When talking to an expert about repairing or replacing windows, you may hear new lingo. The person will likely want to discuss the window frame, as well as the following:

•  Sill: That’s the strip running horizontally across the frame’s bottom.

•  Jamb: Those are the sides of the frame, running vertically.

•  Head: That’s the strip running horizontally across the frame’s bottom.

•  Sash: Some windows have one or more panels that move; the material that forms the frame that

•  holds these individual panes is the sash.

•  Stiles: These are sections of the sash that run vertically.

•  Rails: These are sections of the sash that run horizontally.

Here’s what you need to know about window replacements, cost considerations, and tips for financing the project.

Repairing vs Replacing Windows

If you’re having issues with your windows, you may be wondering whether or not you actually need to replace the window. Here are a few things to consider when trying to decide if you are going to fully replace windows or simply do a few small repairs to make sure they are still functional.

First, if you have one or more windows with cracked or otherwise broken glass, but frames are still solid—and you’re satisfied with how they look—it probably makes sense to just replace the glass with a quality product.

If you have double-pane windows, ones where two panes of glass are separated by a space (gas- or vacuum-sealed) to reduce heat transfer and increase efficiency, know that the seals can also break. You can tell if seals are broken with this simple test: If the window fogs up, you should be able to wipe the condensation off of the window, either from the inside or outside.

If you can’t, the seal is most likely compromised. If this happens, it’s highly unlikely you can simply replace the glass. But, if the frames are solid, you could still replace the panes, sashes, and seals. And be aware that if you have triple-paned windows, this seal breakage could happen in even more places.

Do you actually feel air coming in through a window? If so, you can caulk or weather-strip the trouble spots and see if this solves the problem. Are there small spots of wood that are rotting? If so, you can try scraping away rotted areas, then making putty repairs and repainting. Did you fix the problem? If repairs for either issue (air leaks or rotting wood) don’t solve the problem, that window will likely need replaced.

Here’s another issue to consider. Is the window stuck? There are a few different troubleshooting things to try, including looking for broken hardware pieces and replacing them; or scraping away paint, sanding down the area, opening up the window and cleaning the tracks. If one of these solves the problem, great. If not, then you’ll either need to replace them.

Finally, here is a benchmark to consider: Perhaps you fixed the problem, but the window is warped or otherwise damaged. This is a sign of issues to come and, as with most maintenance, being proactive about window replacement usually makes the most sense.

Benefits of Replacing Windows

If you decide that it is time to replace some or all of the windows in your house, you will likely cut your energy costs once the project is completed. According to ENERGY STAR® , windows granted the ENERGY STAR seal of approval can lead to the following annual savings for a typical home:

•  $126 to $465 when replacing single-pane windows

•  $27 to $111 when replacing double-pane windows that are clear glass

When you replace windows, you are also adding to the sales potential of your home, partly thanks to the energy savings. They also add to the curb appeal of the house, because windows are one of the most obvious features of a home as people walk or drive by. If the windows look old or poorly maintained, then potential buyers may conclude that the entire home needs maintenance, which may not be true at all.

And if you’re installing new windows as a way to invest in your home, consider larger ones that let in more natural light. Using daylight to brighten up your home has been found to be beneficial to people, enhancing productivity and improving mood. Natural light can help fine-tune circadian rhythms, which can add to a better sense of well-being.

Types of Window Materials

In general, you’ll need to choose what type of glass you want and what type of frame/sash materials. There are numerous materials you can choose from for your windows, ranging from vinyl to wood, fiberglass to aluminum and more. Vinyl choices are typically the most affordable and are usually low maintenance and durable. They can last a long time, since this material doesn’t peel or fade, chip, or rot.

For a traditional look, you can choose wood. They provide an elegant appearance, but typically come with more maintenance because wood can warp and rot, and paint will eventually chip and peel. Wood is almost always more expensive than vinyl.

Fiberglass is a little more expensive than vinyl, but can offer more durability and provide more energy efficiency. Scratches and nicks are harder to see, which is good; and, because the material doesn’t expand or contract to any significant degree, you seldom have to worry about air leaks.

Aluminum frames and sashes are long lasting and durable, and you can choose from numerous colors and finishes. This material creates a more modern look than wooden ones. And, although this material can be less efficient because the metal conducts heat, you can select ones with thermal breaks to minimize the issue.

You can also choose clad windows that are wooden inside your home, to provide a beautiful appearance, but vinyl, aluminum, or fiberglass on the outside where durability is more important. These windows are typically more expensive, but they do provide a versatile approach.

If you’ve got an historic home and you want to return your home to its original integrity, you may need to work with a company that can customize windows for you. The wrong style of window and use of anachronistic materials can significantly mar restoration efforts.

After you’ve selected material for the frame, you’ll have to decide on the type of glass. There are a few different types of glass, and they all have different functions—so do your research or work with a professional to find the best option for your home. Types of window glass include the following:

•  Insulated glass: These windows have at least two panes apiece, hermetically-sealed ones divided by spacers.

•  Heat-absorbing tinted glass: Because these windows can absorb heat from the sun, they can keep your home or business cooler. Plus, they reduce glare.

•  Reflective-coated glass: This can also reduce glare and heat in the home.

•  Gas-filled glass: These are insulated, gas-filled units that provide more insulation than just air. Gases used are usually krypton or argon.

•  Low-emissivity-coated glass: These windows can provide significant savings in energy costs in colder climates.

•  Spectrally-selective-coated glass: These allow in light while filtering out significant amounts of heat.

Window Replacement Cost

Home Advisor provides guidance into typical window replacement costs in 2018. Replacing windows can be an expensive project, but it could ultimately improve the value of your home. While prices vary based on a few factors, like where in the country you live and the size of the windows, these general estimates could give you an idea of what replacing windows might cost you.

•  Single-hung windows: $175 to $350 per window

•  Double-hung windows: $300 to $800 per window

•  Sliding windows: $325 to $1,200 per window

•  Casement windows: $275 to $750 per window

Using a Personal Loan When Installing New Windows

Once you’ve decided how many windows you will replace and what the window replacement cost will be, consider taking out a home improvement loan to fund the repairs. You can use the SoFi personal loan calculator to determine what a personal loan with SoFi could look like.

At soFi, you can get a low-rate personal loan with no fees required when you’re ready to repair or replace your windows. You can quickly and easily find your rate and complete an application online. Live customer support is available seven days a week, and if you lose your job through no fault of your own, you can apply for Unemployment Protection—we can even assist you in your job search.

Ready to upgrade your windows? See how a home improvement loan with SoFi can help.


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