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Whether you just got married or you’ve been with your spouse for years, you may be thinking about combining your finances.

Doing so can be challenging, especially if you both have different perspectives on managing money. But it can also help simplify your financial plan and potentially even help you save money.

With an average of $37,172 in student loan debt per borrower , it’s more important than ever to find ways to simplify and accelerate the debt repayment process. Refinancing student loans with a spouse could help you achieve both goals.

Consolidating Through the Department of Education

If you have federal student loans, you can consolidate your loans with a Direct Consolidation Loan .

If you do, the Department of Education will take the weighted average of the interest rates from all of your loans and round it up to the nearest one-eighth of a percent.

This means that consolidating your loans with the government may help simplify your loan repayment, replacing several monthly payments with just one.

Consolidating student loans with a spouse isn’t an option through the Direct Loan Consolidation program. You can only combine loans with your name on them, making it impossible to add your spouse.

Refinancing Your Student Loans

While the federal government won’t let you consolidate student loans with your spouse, a private student loan lender, like SoFi, will.

The process isn’t always straightforward, though. Typically, you would apply for a refinancing loan and add your spouse as a cosigner. Not only would this help you combine your finances, but it could also help you spend less money in interest on your new loan.

That’s because your interest rate is typically determined by your creditworthiness and income, and adding a cosigner with a strong credit history and solid income can help you secure a lower rate, even if your credit history is strong on its own.

To give you an idea of how much you can save on interest, let’s say your (not consolidated) federal student loan debt is $30,000 with a weighted average interest rate of 6%. (For the record, the 6% interest rate is a hypothetical based on a federal graduate and undergrad loans, which currently have fixed interest rates of 5.05% on the low end and 7.6% on the high end, depending on the loan.) On a 10-year Standard Repayment Plan , your monthly payment would be around $333, and you’d pay about $9,967 in interest over the life of your loans.

Now, let’s say you were to refinance your student loans with a private lender and qualified for a 5% fixed rate with your spouse as a cosigner. If you were to keep a 10-year repayment term, your monthly payment would be about $318, and you’d pay around $8,184 in interest.

That’s a savings of nearly $1,783 that you can use for other financial goals. To see how refinancing could impact your student loans, you can take a look at our easy-to-use student loan refinance calculator.

Considerations to Think About

Student loan debt and marriage may be a challenge, so it’s important to make sure refinancing student loans with your spouse is a good choice for your situation.

The primary consideration is that both you and your spouse as a cosigner would be legally responsible for paying off the debt. This means that if you experience financial hardship and miss payments or default, it could ruin both of your credit histories.

Some student loan refinance lenders offer a cosigner release program that allows you to remove a cosigner after a set number of consecutive, on-time payments.

Another thing to consider is that refinancing federal student loans will result in the loss of certain benefits the Department of Education provides. Specifically, private lenders typically don’t offer income-driven repayment plans. Also, you won’t be eligible for certain federal student loan programs, including Public Service Loan Forgiveness.

So as you consider the benefits of consolidating student loans with a spouse through refinancing, make sure you also include the drawbacks in your process.

Finding Out Your Potential Savings

Having student loans in a marriage can be challenging, but with open communication, you can stay on track.
If you’re even remotely considering refinancing your student loans with your spouse as a cosigner, check your rate offers to see if doing so can save you money. Whether or not you qualify for a lower interest rate, exploring the option may help make your decision easier.

When you refinance with SoFi, there are no prepayment penalties or origination fees. Find your rates in just two minutes.

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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.
The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
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If you’re a college grad, you may likely be among the 44 million American adults with hefty student loans to pay off. Collectively, Americans owe more than $1.5 trillion in student debt, with an average of $37,172 owed per graduate.

Add that on top of other monthly expenses and savings goals, and many adults are struggling with making wise financial choices, particularly when it comes to deciding between paying off their own debts and saving for their kid’s future educational expenses.

Fortunately, you may not need to choose. Although it can be difficult, there are steps to help you pay off your student loans while saving for your child’s college expenses.

Starting to Save for Kid’s College Tuition

You may have heard people recommending waiting until you’ve paid off your own student loan debt before you start saving for a child’s college costs. For many, however, this may be impractical. In fact, it also conflicts with the other frequent adage parents hear about saving for their kid’s college tuition: Start early.

When you start saving early, your money has time to grow, which means that you can get more bang for your buck when it comes time to pay that tuition deposit.

So what’s a parent to do? Well, there are a few things to consider when deciding when you want to start diverting some money towards college savings every month.

First, even though you may not be finished paying off your own student loans, you may want to consider it if you’re on track with your other financial goals. For example, do you have an emergency fund and a plan for retirement?

For many, these goals may need to come first before saving for your child’s college. After all, you don’t want to end up in debt during retirement because you prioritized education expenses.

Managing Student Loan Payments While Saving

If you’ve decided to start saving for your kid’s college while still making your own student loan payments, it is important to stay organized. It can be a big mistake to miss student loan payments in favor of sticking money in savings for future expenses, as unpaid student debt can rapidly snowball.

Likewise, your unpaid student loans can continue to rack up interest if a balance remains on the debt, so making smaller payments because you’re saving for a child’s tuition might leave you owing more in interest on your own student loans, which could negate the positive effects of starting to save for kids’ college early.

If saving for their college tuition and expenses while managing your student loan payment seems daunting, student loan refinancing may help you save money on your student loans so that you can put that money towards the future.

Student loan refinancing allows you to trade in all your student loans for a new loan with a potentially better interest rate and more favorable repayment terms. Why trade in old debt for new debt?

Refinancing your loans allows you to use your current circumstances (aka a good job, good credit score, and likely more stable finances) to possibly get a lower interest rate than the current rate on your student loans. This is especially true if you also refinanced to a shorter loan term, thus expediting your repayment timeline.

Additionally, refinancing gives you one loan instead of multiple, such that you only have to make one monthly payment. You can also refinance for an extended loan term, which will give you a potentially lower monthly payment. While this will not save you on interest, it could free up some cash flow and make your student loan payments more manageable.

Saving Money for Your Child’s College

Once you’re ready to start socking away those pennies for your little one’s future art history degree, you have several options for saving. One of the main benefits of starting to save for college early is that you can start saving smaller amounts that could grow over time and offer a good return on interest once college rolls around.

But instead of just sticking $100 a month in a coffee can on top of the fridge, consider the many different savings mechanisms out there that can offer great benefits when it comes to college savings.

For example, 529 savings plans and Coverdell ESA plans are both tax-free when the money in the accounts are used for college. Both plans allow you to invest in stocks or other assets in order to save for your child’s education.

Wondering how much to save for college? The cost of college is on the rise. In fact, the average tuition cost has surpassed inflation by 3% . Over the last decade, college tuition and fees have increased to almost $35,000 per year. It is likely that by the time you’re ready to send off those tuition checks, the price will have climbed even higher.

That being said, the smartest amount to save may simply be what you can afford. If you’re juggling paying off your own student debt while also saving for your children’s future educational expenses, you don’t want to neglect other financial obligations in your life.

Navigating student loan repayment while also saving for the future can be difficult, but smart choices—like considering student loan refinancing either to lower your loan’s interest rate or lower your monthly payment with an extended loan term—could help set you up for success.

Learn more about refinancing your student loans with SoFi.

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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.
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Preparing for a new child is an exciting—and daunting—prospect. This can be doubly true when you are planning on growing your family through adoption. Adoptions costs can be remarkably high, but planning ahead can help minimize the stress during this life-changing process.

The Cost to Adopt

According to the most recent data from Adoptive Families , domestic adoptions typically cost $20,000 to $40,000. And the average international adoption costs $35,000.

For those who choose to adopt through the foster care system , the adoption costs may only add up to a few thousand dollars, but families still must plan for all the regular expenses of adding a child to the family, from buying bottles to preparing a new bedroom.

If you are adopting internationally or through a private adoption , the costs can add up quickly, and frequently include expensive international travel and several different types of fees.

Here are some of the common types of costs that arise during the adoption process:

•   Home study
•   Document preparation and authentication
•   Adoption agency application
•   Adoption consultant fees
•   Attorney fees
•   Networking
•   Counseling
•   Birth mother expenses

Each of these expenses can range from a few hundred dollars to several thousand dollars. These large out-of-pocket expenses can seem intimidating to potential adoptive families, causing them to worry that adoption is not financially feasible. There are, however, many ways to finance adoptions, ranging from taking advantage of grants and governmental programs to taking out a personal loan.

Using Grants to Pay for Adoption Costs

Because adoption can be so expensive, many nonprofit organizations offer grants to adoptive families. These grants can range from a few hundred dollars to the full cost of adoption.

Sometimes grants are offered to particular types of families, but most grants’ eligibility requirements are fairly straightforward and are applicable to most families currently in the adoption process.

A downside of adoption grants is that they are not guaranteed and they usually require extra application paperwork and possibly an interview. In general, however, adoption grants are one good option to consider when planning for adoption.

Using Employee Benefits and Tax Write-Offs to Offset Adoption Costs

One often-overlooked potential source of financial assistance for adoptions is your employer. Employer adoption benefits are a growing trend in large companies where there is a focus on employee retention and work-life balance. Employee benefits can range from things like discounted referrals to adoption agencies to outright cash grants.

Some employers will reimburse a certain percentage of overall adoption costs, while others may choose to directly pay adoption agencies for certain services. Each employer is different, but it may be worth contacting your company’s HR department and asking about any potential adoption benefits your company provides.

Another way to potentially offset adoption costs comes from a generous tax credit. The Adoption Tax Credit allows eligible adopting families to potentially receive a tax credit for qualifying expenses paid in the adoption process.

The credit, which was $13,840 in 2018, can help offset adoption fees like attorney costs, travel expenses, and agency dues. Talk to a certified tax professional to learn more. While adoption tax credits may help ease the financial burden, they do not help much with the upfront costs of adopting.

Using a Personal Loan to Pay for Adoption Costs

If you find that grants or other forms of financial assistance aren’t able to meet your adoption needs, you may consider taking out a adoption loan to help cover the upfront costs. Personal loans, which are often overlooked when it comes to planning for adoption, may offer a better interest rate and more favorable payoff terms than credit cards do.

A personal adoption loan is typically an unsecured installment loan. Unlike with a credit card, you can choose to borrow a set amount with a fixed interest rate and term, allowing you to pay it back in equal monthly installments over a set period of time. This means that you may be able to borrow enough to cover the full cost of the adoption upfront and then pay it off over a few years while avoiding high-interest credit cards.

Another potential benefit of using a personal loan to cover adoption costs is the short application process. The process is generally fairly straightforward and some lenders can disburse loan funds within days. This means that you can focus on what really matters: growing your family.

Starting the adoption process and looking for more money to help grow your family? SoFi’s personal loans offer no fee options and low rates to qualified applicants.

Learn more about whether a SoFi adoption loan could be right for you.

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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.
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.

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You’ve (more or less) survived having baby #1, which is already an accomplishment. Way to go mom or dad; what an incredible journey it is to be a parent and to raise a child.

Now, you’re toying with the idea of baby #2. But, you’re curious about how much it will cost you. And to make matters more confusing, you’ve got student loans that you’re paying off.

One study showed that 26% of people put off having children because of their student loan debt. This doesn’t have to be you. Having a second baby with student loans can be done, but it requires some planning.

To help you with that planning, we’re going to break it down. First, we’ll cover what to expect financially with a second child. Will it be as expensive as baby #1? What expenses can you prepare for?

Second, we’ll discuss tips on how to prepare for having a second baby, and give specific tips for parents who are having a baby with student loan debt. This will include tips on whether to pay them off, put them on hold, or to keep doing what you’re doing—for all of you parents who are thinking, “want a baby, but in debt!”

What You Can Expect Financially

The good thing about having a second child is that you’ve been through this before—you know what you’re doing. Just think of all that you’ve learned since you had your first baby.

That said, it can be hard to mentally prepare for adding a second baby into the mix. There will undoubtedly be moments where you will have to take it one day at a time, and you should give yourself that freedom and compassion to make mistakes and learn how to keep a kid alive all over again.

Still, there are plenty of ways to help prepare for baby #2 to ensure that the experience is as “under control” as can be. First, let’s talk a bit about what you might expect, financially, when you’re expecting a second.

Hand-me-downs Are Great

It is widely believed that a second baby is less expensive than the first because the second child can wear hand-me-down clothes, use baby #1’s cribs and changing table, and play with hand-me-down toys. And for the most part, this can be true, if parents are able to resist the urge to buy adorable new clothes and toys (although you’re probably going to need another car seat).

Hand-me-downs aren’t limited to clothes and toys, of course. There are other items that can be reused: Carriers, high chairs, bottles (although you’ll want to replace the teat), cribs, strollers, breast pumps, baby baths, baby monitors, children’s toilets, cloth nappies, bouncers, stationary activity centers, nursing pillows, changing pads, and so on. You can save a lot of scratch if you don’t need to buy these again.

(Tip for parents who haven’t had baby #1 yet: Avoid buying obviously gendered clothes. You may find gender-neutral clothes easier to re-use for baby #2.)

Hand-me-downs Have Limits

While it’s a great idea to reuse certain items, this won’t be possible with every item you’ll want or need for baby #2. For example, you may want to purchase new pacifiers, bottle nipples, and even car seats.

Car seats have an expiration date—check the bottom of the seat for a sticker that should list the manufacturer, model number, and manufacture date. It is generally accepted that the expiration date is six years after the manufacture date, but don’t use it if it’s been in a car accident previously—even a minor one.

Similarly, any crib, chair, or bouncer that has sustained significant wear and tear should be replaced; it’s better to be safe than sorry with any piece of baby equipment that could lead to injury if it in some way breaks or fails. This is especially true for any piece of equipment that “holds” a baby in some way.

Also, it can be hard to resist buying special items for each baby. Parents may be unlikely to use only hand-me-down clothing, toys, furniture, and other baby equipment, so be realistic and know that you’ll probably want to buy some stuff new. This goes for enrichment items, too. There could be classes and opportunities for your second child that may be independent (and potentially very different) than for your first child.

You Still Have to Buy Daily Use Items

You can’t reuse disposable diapers, wipe cloths, baby cream, formula, medicine, and other daily use items obviously. And as anyone who has purchased diapers before knows, these items can really add up (it could cost $550 dollars in the first year! ).

Childcare May or May Not Double in Cost

Depending on your specific child care situation, your childcare may or may not double in cost. Be sure to ask your childcare provider if they provide a sibling discount. If they don’t, you may want to look around for providers that do. It may not be a lot, but any discount will help when budgeting for baby #2.

With two children, parents may even want to rethink their current childcare set-up altogether. It may be more economical to consider an at-home nanny or an au pair, or even working with another family to establish a shared childcare situation.

Ideally, you wouldn’t have to double your childcare costs, but figuring out an alternate situation just may not be feasible for some people. It’s good to have some idea of what childcare will look like as you’re planning for your second child, as childcare is a major expense for many young families.

You May Need More Space

Having a second child can be economical in some ways, and less economical in others. For example, will you need more space to accommodate another body? Will you need to move to a larger home or buy a larger car? As families expand, it’s natural for a family’s space to expand as well.

Buying or renting a house with an additional room could be a significant added cost down the line. You might not need to move right away—babies are small—but think about what you might do once your baby grows into a child and later, into a teenager.

So, what’s the verdict? Is having a second kid significantly less expensive than the first? As you can tell, it all kind of depends. Families planning to have a second child will probably want to weigh the items above to see whether the cost is going to feel similar to baby #1, or whether it could be more or less expensive.

Planning Financially For Baby #2

Project Expenses

Before having a second baby, you might wish to sit down and project the expenses involved, from medical costs to childcare to diapers to an allowance for the unexpected. If you can, consider longer term expenses like extracurricular programs and college.

Spending projections not only help you to see whether you can afford a child at your current level of income and spending, but they can guide you in knowing where you can splurge and where you might need to cut back. Spending on children can quite literally be limitless, so think of this as an exercise in prioritization.

Prepare an Emergency Fund

Kids are small, adorable… walking liabilities. Things get broken and kids (and parents) can and do get sick. Also, “regular” life stuff still happens: The economy could turn, parents can get laid off from jobs, grandparents can get sick, and accidents could happen. With little ones in tow, it’s even more important to be prepared in the event of an emergency.

Make a Debt Plan

If you have multiple sources of debt, it’s a good idea to sit down and map out a plan as soon as possible. The first step is to list all sources of debt, including monthly payments and interest rates.

Knowing that your monthly expenses are about to increase, are there any sources of debt—and therefore, monthly payments—that you can eliminate altogether? For example, do you have any credit card balances that you can work hard to wipe out, or significantly lessen, in a few months? High-interest credit card debt is a money suck; doing what you can to reduce interest expenses can help free up money for other stuff.

Consider Options for Student Loans

For some parents, paying off every source of debt, such as their student loans, won’t be possible prior to having children. This is especially the case for families that are attempting to balance making debt payments with saving up an emergency fund. Each parent will have to decide just how much to prioritize both debt payoff and saving prior to and while raising a child.

When you’re pregnant, student loans can feel overwhelming. First, know that you’re not alone and that plenty of parents successfully manage student loan payments while raising a child. If you’ll maintain a student loan balance after your second baby comes into the world, it may be worth exploring options to make those student loans cheaper.

One way to do this is through student loan refinancing. When a borrower refinances their student loans, they’re paying off their old loans—either federal, private, or both—with a new loan. Ideally, this new loan is issued at a lower interest rate or with more favorable terms. But remember, refinancing means you’ll forfeit federal loan benefits such as income-based repayment plans, deferment, and forbearance.

With a new loan, for example, a borrower can do one of a few things: First, they can keep the loan’s term (length) the same, and possibly lower their monthly interest payment thanks to an improved credit score and/or financial situation. This tactic could help free up some cash to spend on other things. Second, a borrower could use this new leeway to speed up their loan term, and pay their loans off faster. They would likely save the most on interest with this strategy, but monthly payments would likely be higher.

Third, a borrower could potentially refinance to a lower rate and lengthen the loan’s term, which could lower the monthly payment significantly. This is an option that borrowers would be wise to consider only if they absolutely must, because you might end up paying even more in interest over the long run, even with a lower rate. (You can read more about all this here .)

When preparing financially for baby #2, there’s lots of planning to consider. But it will all be worth it to bring another bundle of joy into the world.

Check out SoFi student loan refinancing, with competitive rates and no hidden fees for refinancing your loans.

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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.
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.
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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