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The weather’s heating up, kids are out of school, and you’re thinking about how to spend the next three months until you begin business school. Perhaps you’re sweating at your day job, trying to decide when to give notice, or poring over spreadsheets, stressing about how to pay for graduate school in the fall. You might have plans to travel, intern, or volunteer.

The reality is, there’s no wrong way to get ready for business school. However, there are a few things you could consider and prepare before packing up to head to school in the fall.

Finding an Internship

Nearly half of all incoming business school students say they’re considering changing career paths. If you’re switching career tracks before starting your MBA, a pre-MBA internship might be ideal for you.

A pre-MBA internship is typically a four-to-six-week concentrated internship focused in fields like marketing, venture capital, private equity, or consulting.

An internship could mean getting ahead of your classmates in real life experience, but it also comes with a caveat. These internships might offer pay, however some of them don’t offer a salary . If you’re looking to make some extra dough before tuition bills in the fall, it might be smart to sit tight in your current job.

On the other hand, if you want a leg up and some professional experience in a field you haven’t worked in yet, a pre-MBA internship could provide some direction as to where you want to take your business school degree.

Sharpening Your Skills

Maybe you’re taking a few months off traveling, relaxing, or volunteering before starting your MBA. You can expect school to be rigorous in the fall, and with an internship likely next summer, this might be your only downtime for a while. Taking time off just might be the ticket for you.

However, while you’re chilling poolside or lugging a backpack across Europe, you might want to dedicate a little time to resharpening some skills before school starts. You could take some books along to prep for the first year—you can anticipate a lot of reading in the fall .

While you’re at it, you could grab a few math books or consider an online class to brush up on your quantitative skills . Your fall course load is filled with core curriculum, and if you think your math skills are rusty, it wouldn’t be a bad idea to start reading those textbooks early.

While you’re reading and relaxing, it wouldn’t hurt to squeeze in some networking. Business school is all about connections, and starting to cultivate a network through professional and personal contacts the summer before starting your MBA might be a great way to get ahead.

Quitting Your Job

You might be spending the summer working and possibly sweating about when to give your notice. You might be planning to work through the summer, but you could let your employer know as soon as you can about your plan for departure. Most career experts agree, giving ample notice about your decision to attend business school in the fall gives you a solid exit strategy.

While you’re letting your employer know you’re campus-bound in the fall, the notice doesn’t have to be the traditional two weeks. Instead, you could work with your manager or boss to create a more leisurely exit plan—perhaps lining up a replacement in the process. Since you quit for an MBA, as opposed to leaving for a competitor, there’s no reason your relationship with your current team should end on a negative note.

Banking a couple paychecks could potentially help with grad school expenses, but you might want to allow yourself time to prepare for school in the fall as well. Consider your timeline for relocation, preparation, and maybe a little time to unwind.

Considering the Essentials

No matter what you end up doing the summer before business school, you might want to take time to address how you will pay for your MBA.

Business MBAs can be some of the most expensive programs out there—the average business school student in America graduates with around $70,000 in debt.

Summer could be an opportunity to make some money for savings before starting school, but it’s also a time to review your payment plan. Will you go for federal loans, apply for grants, or take out private student loans?

On top of moving, orientation, and beginning your studies, you may want to take time before the semester starts to familiarize yourself with graduate school loans. While you’ve been through it before during undergrad, taking out loans for graduate school might be a totally different animal in terms of, for example, what financial aid you qualify for and how much you have to take out.

Don’t Take a Break on Your Finances During Summer Break

The summer before business school can be a time of relaxation, learning, preparation, or working—there’s no wrong way to spend it. No matter what you do, you might want to take time to consider and understand how you’re paying for your MBA.

That might mean research on refinancing your undergraduate student loans once you’re done with graduate school. Once you finish b-school and secure a great job, refinancing your grad school loans could be a way to potentially get you a lower interest rate or more favorable loan terms.

Keep in mind that refinancing your federal student loans means losing out on federal loan benefits, like income-driven repayment plans and deferment. So, for example, if you have federal loans from undergrad, and are hoping to defer them while getting your MBA, now might not be the right time to refinance.

However, you may consider refinancing those undergrad loans with your graduate school loans once you finish business school. (That way you’ll only have to worry about paying one loan off, instead of multiple.)

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

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.

Student loans can help you achieve your educational dreams, but they can also have lasting effects on your personal finances.

The short answer is yes. Borrowers with student debt eager to take out a new loan may discover that student loans can drag on their debt-to-income ratio (DTI), which is a factor lenders examine carefully before issuing new loans. Luckily your DTI isn’t set in stone, and with a little effort, you can decrease it while increasing your chances of approval for a new home loan.

What Is Debt-to-income Ratio?

Debt and income are two sides of the same coin. One side (income) represents the regular money you have coming into your accounts, and the other (debt) is the regular money you have flowing out.

Your DTI is represented by your regular monthly debts divided by your gross monthly income and expressed as a percentage.

For a W2 wage earner, our gross monthly income is the amount of money you make each month before taxes and other deductions are taken out. For self-employed individuals net income may be used.

Here’s a hypothetical situation that you can work through using a calculator and a pen. Say you have $300 each month in student loan payments, $500 in auto loan payments, and $700 in other debts. Your total debt each month is $1,500. If you’re making $4,500 a month (gross), your DTI is $1,500 divided by $4,500, or 33%. If you’d like a little extra help calculating your DTI, you can use an online calculator . Keep in mind that not all income sources are eligible to use for loan qualifying.

Lenders look at your debt-to-income ratio, among other factors, to help them figure out whether you will comfortably be able to make regular payments on new debts.

If your debt-to-income ratio is on the lower end, a lender may take that as a sign that you’ll have an easier time paying back a new loan. On the other hand, according to the Consumer Finance Protection Bureau , “Evidence from studies of mortgage loans suggest that borrowers with a higher debt-to-income ratio are more likely to run into trouble making monthly payments.”

DTI is the ratio of your total debt to your income. So, that’s where student loans factor in—they are part of your debt when calculating that ratio. It’s also where credit card debt, car loans, and any other consumer debt would come into play. To find your DTI, you’d want to add up all of your debts (student loans, credit card, mortgage, etc.) and then divide by your qualifying gross income.

What is the Ideal Debt-to-income Ratio?

There are a few general rules of thumb surrounding ideal DTIs. A DTI of 43% is typically the highest you can have and still receive a qualified mortgage . Though 43% DTI maximum is generally the accepted range, especially for non conforming loan amounts, lenders will examine other factors such as credit score, savings and the size of your down payment when determining an acceptable DTI.

LoweringYour Debt-to-income Ratio

If you have student loans and you’re thinking about taking on other debt, such as a mortgage, take a hard look at your DTI. If it’s less than ideal, there are a number of options you can pursue to lower your ratio.

First, you can try to increase your income. You may decide to start a side hustle, get a new job with higher wages, or ask for a raise. As you increase the denominator in your DTI, your overall percentage will fall. However, there are qualifications for using a second job or part time income for decreasing your DTI.

Often it has to be stable ongoing income received for the past two years.

You may also look for ways to reduce your overall debt, which can have a more immediate effect on your DTI. If you’re grappling with large student loans debt, you could consider consolidating your loans or refinancing with a private lender. If you’re looking to consolidate your federal student loans, you could consider a Direct Consolidation Loan.

This combines all of your federal student loans into one. And your new loan still qualifies for most federal loan benefits. However, the new interest rate on your Direct Consolidation Loan is the weighted interest rate of your bundled loans, rounded up to the nearest eighth of a percent.

If you qualify to refinance your student loans with a private lender, they will pay off your old loans and can provide you with a new loan at a (hopefully) lower interest rate.

A lower interest rate means you’ll pay less in interest over the life of the loan, if you don’t extend your repayment term. Refinancing can also help you shorten your term if you’re looking to get out of debt faster.

While Direct Consolidation Loans are solely reserved for federal loans, you can refinance private and federal loans (or even refinance both into one, new loan). Refinancing federal loans with a private lender means you’ll lose access to federal loan benefits like income-driven repayment plans, deferment, and forbearance.

You may also want to take a look at the other debts you have and find ways to reduce them. If you carry a lot of high-interest credit card debt, for example, you could consider making extra payments to pay it off faster.

Also, while you’re paying off your current debts, it’s not a bad idea to avoid taking on new debt if you can. This may mean making fewer purchases with your credit card or putting off big purchases such as a new car for a few years while you lower your DTI and pursue other goals.

Patience Can Pay Off

Lending rules, such as the maximum DTI a lender will accept, can feel like a real drag sometimes, especially if you’re itching to get a new mortgage. But keep in mind that these rules are there for a reason, and part of that reason is to protect you from taking on new debt that you can’t afford.

What’s more, taking the time to make student loans debt more manageable or pay it off entirely can be worth the effort since it can lower your DTI, which may help you qualify for more favorable terms on future loans.

Making sure your debt is manageable has the added benefit of potentially improving your credit score. Making full, on-time debt payments shows that you are responsible with your finances and can give your score a boost. This too might help you qualify for more favorable loans in the future.

Looking Forward

Visit SoFi to find out more about how refinancing your student loans can help to make your student loan debt more manageable and potentially decrease your debt-to-income ratio.

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

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.

Getting married is a momentous occasion—you’re choosing to legally commit to your partner in sickness and in health. And that’s something to celebrate. But before you say “I do,” it is important to understand how your student loan obligations might change after your big day.

After all, you’re ready to share your life, but do you have to share your student loans? Here are five things to know about student loans and marriage.

Open and Honest Communication is Key

Let’s be real for a second: money is stressful. In fact, money is one of the most common topics of relationship stress. Whether you’re arguing about high student loan payments or how much you want to spend on eating out every month, money can cause relationship problems.

There is good news, though: couples who talk openly about money daily or weekly are more likely to have strong marriages. That means that learning how to talk about money before you get married is one great way to create a strong relationship from the get-go, especially if you’re marrying someone with student loan debt, or have student loan debt yourself.

In addition to figuring out your money and budgeting style, it can be helpful to hash out the basics before your marital bliss is interrupted by your next student loan bill. For starters, it may be helpful to discuss exactly how much each of you owe on your student loans. It is important that you both understand exactly how much is owed so you can plan for repayment together.

Once you’ve got the hard numbers down, it may also be helpful to share what type of current student loan repayment plan you are on, and what your repayment priorities are. After all, if your partner wants to pay off their law school debt right away but you’re happy on an income-driven repayment plan as a school teacher, it is important that you have a plan for navigating potential disagreements.

While every relationship is different, all relationships will require decision-making about money. Learning to talk about money now can help set you up for success down the road.

Who is Responsible For Repayment?

You’re not automatically on the hook for your spouse’s loans. If you or your spouse took our student loans prior to your marriage, you likely won’t be responsible for those loans if your spouse stops paying.

Of course, if you or your spouse takes on new loans while you’re married and you live in a community property state, you may end up responsible for a portion of that debt.

The law is complicated, so if you’re worried about dividing up your assets before you get married, it is always good to talk to a lawyer. Many young couples are even now considering pre-nups to protect themselves and set up expectations in advance.

Will My Monthly Payments Change?

So then when it comes to student loans, marriage doesn’t change anything? Not so fast. One often-overlooked aspect of marriage is that it can change your income—and this matters for many reasons, including determining your monthly income-driven loan payments.

For example, if you’re on a repayment plan that uses your household income to determine your monthly payment, and are married and filing jointly, your lender will take into account both you and your spouse’s income, which could lead to higher monthly payments.

Likewise, you may miss out on the student loan interest deduction when it comes time to file your taxes. P.S., talking to an accountant or tax attorney when when it comes to all things taxes and student loans could be a smart idea. When in doubt, definitely speak with a licensed professional.

Thinking About Refinancing Your Loans with Your Spouse

Just because your student debt doesn’t automatically become a joint obligation the moment you say “I do” doesn’t mean you can’t combine your debt and focus on paying it off together.

Many couples choose to combine their student loan debt through refinancing so they can pay off one bill together, rather than juggling multiple debt payments.

Student loan debt and marriage can be stressful, and student loan refinancing allows you to combine multiple loans into one (potentially with a lower interest rate).

Of course, refinancing isn’t for everyone. If you or your spouse is planning on taking advantage of income-driven repayment or other federal repayment programs, joint refinancing with a private company could make you ineligible.

It’s important to start your marriage off on a strong foot by making sure that you and your partner can talk honestly about money. Together, you can navigate anything—including student loan debt.

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

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

SoFi Student Loan Refinance
SoFi Student Loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891. (www.nmlsconsumeraccess.org). SoFi Student Loan Refinance Loans are private loans and do not have the same repayment options that the federal loan program offers, or may become available, such as Public Service Loan Forgiveness, Income-Based Repayment, Income-Contingent Repayment, PAYE or SAVE. Additional terms and conditions apply. Lowest rates reserved for the most creditworthy borrowers. For additional product-specific legal and licensing information, see SoFi.com/legal.

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Like getting a case of the Mondays—but with much higher stakes—the specter of looming student loan debt can be a real buzz kill. As a result, you may be wondering whether it makes sense to start paying off that debt while you’re still in school. Here’s a look at whether it’s possible to pay off loans early and the pros and cons of doing so.

Prepaying Student Loans

You can prepay federal loans and some private student loans without facing penalties. That means that you can direct money toward paying down the principal of your loan at any time, likely without facing extra fees.

Federal student loans typically become due when you graduate after a grace period of six months. This grace period can be extended to three and a half years for active duty military members.

The Parent Loan for Undergraduate Students doesn’t have a grace period and the Perkins loan grace period might vary from school to school.

Private loans might also have a grace period, though these vary depending on the terms and conditions of your loan. You may choose to get a head start on paying off your debt and start making loans payments before you graduate.

Beyond gaining some peace of mind, prepayment may have other benefits. As you pay down your principal you’ll be reducing the amount of money you owe in future interest payments, saving you money over the life of the loan.

Some loans may accrue interest while you’re in school, and these are worth targeting first. Prioritize paying down loans with the highest interest rates. As you pay these off, focus on the next highest rate.

Direct Subsidized Loans do not accrue interest while you’re in school at least half-time. If you pay down the balance while you’re in school, you’ll only be paying off the amount borrowed, essentially securing an interest-free loan for yourself.

Contact your lender when you want to make a prepayment. When you do, include a note that you want the prepayment to go toward paying off the principal of your loan. Otherwise, your lender may treat your payments as though you’re paying your first installment.

But here’s the good news: Federal student loans and private student loans don’t come with prepayment penalties . So you can proceed with paying off your student loans early without incurring prepayment penalty fees.

Other Ways to Manage Your Debt

If your cooktop ramen budget leaves you with little room to prepay your college loans, don’t despair. There are other ways you can make your loans more manageable.

If you carry federal student loans, one option is student loan consolidation, which allows you to bundle your loans through the Direct Consolidation program. This strategy may leave you with a lower rate on your new loan.

The government sets your new rate as a weighted average of all your current loans’ interest rates. So, in some cases, your new rate may actually be higher than your previous lowest rate.

Direct Consolidation loans may qualify you for student loan forgiveness or income-based repayment plans. This can be particularly useful if you plan on going into a field that qualifies for student loan forgiveness such as jobs in the government or some nonprofit sectors.

One note, however: Federal student loan consolidation lets you consolidate federal loans, but doesn’t allow you to consolidate your private loans.

Refinancing Through a Private Lender

If you have a mix of federal and private loans, you may consider refinancing your student loans through a private lender. If this sounds like an option for you, you’ll want to look into a lender that can help you lower your interest rate.

Paying a lower interest rate can save you money in the long term. And if you choose to keep your monthly payment the same, you may even pay off your loans earlier than you would with your original loan.

You can refinance your private loans and some lenders allow you to bundle both federal and private loans. However, be aware that once you’ve refinanced federal and private loans together, you can’t undo the consolidation.

Federal loans that are consolidated in this way are no longer eligible for consolidation under the Direct Consolidation Loan program and, therefore, may lose the potential for loan forgiveness and income base repayment options down the road.

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

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.

When you first take out student loans after graduating high school, it’s hard to truly feel the weight of that debt. You’re young and looking forward to the best years of your life. It’s not until you’ve finished your undergraduate degree, that you begin to realize just how much money you actually owe.

If you’re pursuing a graduate degree you may feel motivated to avoid taking out additional loans to finance your education. Perhaps your goal is to finish your Master’s degree without borrowing a single penny.

It won’t happen easily, and you might need to sacrifice your comfort and free time to make it happen, but people do it every year. These tips could help you become one of them.

Become an In-State Resident

If you’re applying for graduate school, after taking a few years off to work you might be surprised to find how costs have changed since your undergraduate days. Tuition has been rising for decades, and a bachelor’s degree now costs two-and-a-half times what it did in 1988 after adjusting for inflation.

Graduate students interested in a public university can save tens of thousands of dollars by becoming in-state residents. As just one example, at UCLA graduate students who qualify for in-state tuition pay $16,847 a year while out-of-state students pay almost double the cost—$31,949.

Each state has different requirements for determining residency, so if you are planning on relocating to attend grad school be sure to look into the requirements for the state the school you are planning to attend.

Certain states require only one year of full-time residency before you can qualify for in-state tuition, while others require three years. During that time, you can work as much as possible to save money for graduate school.

Apply for Work-Study

Work-study is a type of financial aid available to students who qualify based on their financial need. You can apply for the program when you fill out your FAFSA form. If you qualify for work-study it will be part of your financial aid award.

After you receive your work-study award you’ll still have to find a job that qualifies. Many schools have online databases where you can look for and apply to jobs.

Typically, financial aid is awarded on a first-come, first served basis, so the earlier you file your FAFSA the better chance you’ll have of securing work-study as a part of your award.

Become an RA

You probably remember your undergrad Resident Advisor (RA). They were the ones who helped you get settled into your dorm room, showed you how to get to the nearest dining hall and yelled at you for breaking quiet hours.

RAs may be under-appreciated, but they’re compensated handsomely for their duties. Students are typically compensated for a portion or all of their room and board. Some schools even include a meal plan and sometimes even reduced tuition or a stipend.

The compensation you receive will depend on the school you are attending, so check with your residential life office to see what the current RA salary is at your school.

While there are plenty of perks to being an RA, don’t underestimate the responsibility that comes with the position. It can be a time-intensive position, requiring round-the-clock supervision.

Still, the perks of being an RA may be measured in saving money each year. By having a free place to live and a free meal plan, you can save and eat a diet that doesn’t just consist of Ramen and stale pizza. RAs rarely have to share a room, so you’ll also have more privacy than you would in an apartment.

Because RAs receive so many benefits, competition for the job can be fierce and selective. Polish your resume and hone your interview skills before applying. The difference between working as an RA and having to take out loans for rent could affect your life for years to come.

Apply for Grants and Scholarships

Like undergraduates, grad students have to submit the Free Application for Federal Student Aid (FAFSA) in order to qualify for federal grants. Many universities use FAFSA information to determine their own financial aid, so applying for it is mandatory.

The average graduate student earned $9,290 in grants during the 2016-2017 academic year. Grants and scholarships are a great source of financing for graduate school because they don’t need to be repaid.

Grants are available from both the federal and state governments, as well as from the university itself. Some companies provide their own grants or scholarships, and many private organizations sponsor grants.

It never hurts to apply for a grant or scholarship, no matter how small it might seem. Think of it this way—every dollar received is one less dollar you need to borrow or earn.

Find a TA Position

If you’re a graduate student, you can often find a position as a Teaching Assistant or Research Assistant for a professor. The position will be related to your undergrad or graduate studies and often requires grading papers, conducting research, organizing labs or prepping for class. You probably had several TAs during your undergraduate classes and didn’t even realize they were students too.

TAs can be paid with a stipend or through reduced tuition depending on which school you attend. Not only can the job help you to potentially avoid student loans, but it also gives you networking experience with people in your field.

The professor you work with can recommend you for a job, bring you to conferences, and serve as a reference.

Being a TA may help boost your resume, especially if you apply for a Ph.D. program or want to be a professor someday. According to PayScale.com, the average TA earns $12.17 an hour, or about $1,000 a month before taxes.

Similarly to a job as an RA, securing a TA position can be competitive. Apply early and get to know the professors who will make the decisions.

Refinance Your Undergrad Loans

If you currently have loans from your undergraduate program, you can refinance them to get a lower monthly payment. That will free up more money to put towards grad school.

Refinancing your student loans at a lower interest rate can also help you pay less interest over the loan’s lifetime. That may not seem like such a big deal now, but you’ll be thankful when you’re saving up for a down payment on your first house.

Switching to a lower monthly payment gives you more flexibility in your budget, which is perfect for a time when money is tight. Once you finish grad school, you can start making extra payments and repay your loans ahead of schedule.

Paying for grad school without student loans is possible, but only if you plan ahead, apply for every opportunity and make decisions carefully. Many professions don’t care where you went to grad school, only that you have a master’s degree. Pick an affordable university and you’ll never regret your decision to go back to school.

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

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.