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More than half of college students graduate with some debt. The average federal student loan debt balance is $39,075, while the total average balance (including private loan debt) may be as high as $42,673, according to the Education Data Initiative.

While those numbers may look daunting, keep in mind that you typically don’t need to start repaying your student loans until six months after you graduate. What’s more, lenders (both federal and private) generally offer a number of repayment options that can make managing student loan debt easier.

Here’s a look at nine tips and strategies that can make repaying your student loans as stress-free as possible.

1. Understand Your Total Debt

Before you can determine the best way to manage student loan debt, you’ll want to get a full picture of what you owe. You may graduate with several loans, both federal and private, and the interest rate may be different depending on when you took out the loan.

You can find your federal student loan balances by logging into your account at StudentAid.gov. For private student loan balances, you can contact your loan servicer or check your credit report (you can request a free credit report from AnnualCreditReport.com ).

💡 Quick Tip: With benefits that help lower your monthly payment, there’s a lot to love about SoFi private student loans.

2. Know Your Repayment Terms

In addition to your unpaid balances for each student loan, there are other repayment factors that impact your payoff strategy. This includes each loan’s:

•   Term Your repayment term is the amount of time until you get out of student loan debt, if you follow your original repayment plan.

•   Interest rates This is the cost of financing. While federal student loan rates are the same for every borrower, private student loan rates range based on the lender, the type of interest rate (fixed or variable), and the borrower’s credit score.

•   Grace period Many student loans offer a grace period, which is the length of time that you have after graduation before you need to start paying back your loans. Often the grace period is six months after you graduate or drop below half-time attendance.

Recommended: Average Student Loan Debt

3. Determine if You Qualify for Loan Forgiveness

If you have federal student loans, you could be eligible for certain debt forgiveness programs. These programs can wipe away all or a portion of your student debt after you’ve satisfied certain repayment and eligibility criteria. Some pathways to forgiveness include:

•   Public Service Loan Forgiveness (PSLF) Under PSLF, government and nonprofit workers may be eligible to see the remaining balance of their federal student loan debt forgiven after making 120 qualifying payments. You can use the government’s PSLF help tool to see whether you work for a qualifying employer and generate your PSLF form.

•   Income-driven repayment (IDR) An income-driven repayment plan sets your monthly student loan payment at an amount that is intended to be affordable based on your income. If your federal student loans aren’t fully repaid at the end of the repayment period (which may be 20, 25, or 30 years), any remaining loan balance is forgiven.

•   Teacher Loan Forgiveness Teachers who work full time for five consecutive academic years at a low-income school may be eligible for up to $17,500 in loan forgiveness. To qualify, you must meet the FSA’s requirements as a highly qualified teacher.

4. Select a Repayment Plan That Works for You

Depending on the type of student loan you have, you may be able to choose from a variety of different repayment plans. Loans in the federal system offer access to a set list of repayment options, while private loan repayment plans vary. Choosing a payment plan that works with your budget can make it much easier to deal with student loan debt.

Private Student Loan Repayment Options

When you take out a private student loan, you may be able to choose between several different repayment plans. These may include:

•   Immediate repayment This means you’ll make full monthly payments while you’re still in school.

•   Interest-only repayment Here, you’ll pay only the interest on your loan while you’re still in school.

•   Partial interest repayment With this plan, you’ll make a fixed monthly payment while you’re in school that only covers part of the interest you owe.

•   Full deferment If you go this route, you pay nothing while you’re enrolled in school. However, your loan balance will grow during that time due to accruing interest.

You may also be able to choose your loan repayment term, such as five, 10, or 15 years. Picking a shorter repayment term can help you save on interest (it may also help you qualify for a lower interest rate), but may mean a higher monthly payment.

Once you pick a repayment plan, you generally can’t change it after the fact. However, if you experience a financial hardship, the lender may agree to temporarily lower your payments, waive a payment, or shift to interest-only payments.

Federal Loan Repayment Options

All federal student loans are on the Standard Repayment Plan (which is a 10-year fixed payment repayment plan) by default. Borrowers who take out loans after July 1, 2026, will default to a revised Standard Repayment Plan, which spreads debt into fixed payments over one of four timeframes (ranging from 10 to 25 years), depending on what they owe.

Borrowers with loans taken out before July 1, 2026 can request to enroll in other payment plans, such as:

•   IDR Plan Income-driven repayment (IDR) plans base your monthly payment amount on how much money you make and your family size. Current options include: Pay As You Earn (PAYE), Income-Based Repayment (IBR), and Income-Contingent Repayment (ICR). Depending on the plan, your payment is reduced to 10% to 20% of your discretionary income. After satisfying a certain number of months of qualifying payments on an IDR plan, you can get the remaining balance of your loan forgiven. (Note: Those who take out new loans after July 1, 2026, will be able to enroll in only a new IDR plan called the “Repayment Assistance Plan,” or RAP.)

•   Graduated Repayment Plan With this option, payments are lower at first and then increase, usually every two years. Payment amounts are designed to ensure your loans are paid off within 10 years (or within 10 to 30 years for Consolidation Loans).

•   Extended Repayment Plan With this plan, your payments can be fixed or graduated and your loan term is stretched to 25 years.

5. Consider Consolidating or Refinancing Your Loans

If you have multiple federal student loans, even if they are with different loan servicers, you may be able to combine them into one loan with a single monthly payment through a Direct Consolidation Loan. This can simplify loan repayment and make it easier to manage student loan debt by giving you a single loan with one monthly bill.

Whether you have federal, private, or both types of loans, you might consider refinancing your student loans with one private student loan, ideally with a lower interest rate and/or better repayment terms. This can simplify repayment and could also help you save money. Just keep in mind that if you opt for a longer long term, you can end up paying more in total interest. Also be aware that if you refinance federal loans to private, you may lose some benefits, such as student loan forgiveness and income-driven repayment.

Recommended: What Happens if You Just Stop Paying Your Student Loans

6. Ask Your Employer About Student Loan Assistance

Many employers are now offering student loan repayment assistance or tuition reimbursement as a way to recruit and retain top employees.

In addition, some employers will pair student loan repayment with contributions to a traditional 401(k) plan. With this relatively new benefit, an employer matches a worker’s student loan payments as if they were payments to a qualified retirement plan, even if they don’t contribute to the company’s retirement plan.

The upshot: It can be worth asking your employer if they have any repayment assistance — or are planning to offer it in the future.

Recommended: Jobs that Pay for Your College Degree

7. Explore Payoff Strategies

Whatever type of student loan repayment plan you have, there are steps you can take on your own to help manage your student loan debt, and even speed up repayment. Here are two effective strategies to consider:

•   Making extra payments toward principal If you have any extra cash to spare after you make your minimum monthly loan payment(s), consider putting it directly toward lowering your principal balance. Doing this can help you reduce the amount of debt you owe, pay off your loans faster, and save you money on interest over time. Just be sure to tell your lender in writing that your extra payment should go toward the principal and not toward future payments.

•   Avalanche repayment method This can be useful if you have multiple student loans. With this approach, you make minimum student loan payments on all your loans and then direct any extra money toward the loan with the highest interest rate. Once that loan is paid off, you funnel your extra funds to the loan with the next-highest rate until that debt is paid off, and so on until all your student debts are gone. This payoff method can speed up loan repayment and also save you money.

8. Take Advantage of Lender-Specific Benefits

Some student loan lenders offer certain benefits to their borrowers. For example, federal loan servicers, as well as many private lenders, offer a discount on the interest rate if you agree to set up your payments to be automatically withdrawn from your checking account each month.

In addition, some private lenders offer specific borrower perks, such as a one-time cash reward if you get above a certain GPA or the ability to earn reward points that you can then use to lower your monthly payments. It’s a good idea to learn about — and take advantage of — any repayment benefits your lender offers. This can make it easier to handle your student loan debt after you graduate.


💡 Quick Tip: Need a private student loan to cover your school bills? Because approval for a private student loan is based on creditworthiness, a cosigner may help a student get loan approval and a more competitive rate.

9. Budget Your Finances Accordingly

No matter the amount or type of student debt you have, a key way to manage repayment is to set up a basic budget. While that may sound complicated, it’s actually a relatively simple process.

The first step is to figure out how much money you have coming in each month (like your income after taxes and any help you may receive from your parents). Next, make a list of all your fixed monthly expenses, such as rent, utilities, phone/cable bill, food, and minimum payments due on loans, including your student loans.

You then subtract your fixed costs from your total income. Whatever is left is your disposable income — the money you have to spend on things like eating out, movies, other entertainment, and clothing.

Going through this exercise can help ensure you have enough funds to make your loan payments each month and avoid getting hit with late fees or, worse, defaulting on your student loans.

The Takeaway

There’s no one right way to handle student loan debt. Federal student loan borrowers have access to different student loan repayment strategies that can make paying off your debt more manageable. Private lenders typically also offer several different repayment options and sometimes even forbearance or deferment for borrowers who run into financial difficulty making payments.

No matter what type of student debt you have, you can utilize smart repayment strategies (such as making extra payments towards principal or using the avalanche repayment method) to pay off your loans faster and save money on interest.

If you’ve exhausted all federal student aid options, no-fee private student loans from SoFi can help you pay for school. The online application process is easy, and you can see rates and terms in just minutes. Repayment plans are flexible, so you can find an option that works for your financial plan and budget.

FAQ

How do you pay off $70K in student loans?

There are many ways to pay off $70,000 in student loans, depending on the type of loans you have and repayment goals.

If you have federal student loans, you might sign up for an income-driven repayment (IDR) plan, which bases your payments on your income. In addition, you could have any remaining balance forgiven after 20 to 30 years, depending on the plan.

For any type of student loan (federal or private), you might consider refinancing. This involves taking out a new private student loan and using it to pay off your existing student loans. Depending on your credit, you might get a lower interest rate, which could save you money on interest. You might also be able to shorten your loan term, and pay off your loans faster. Just keep in mind that refinancing federal student loans with a private lender means losing federal benefits like income-based repayment and forgiveness options.

What is the best student loan repayment method?

The best repayment method for you depends on the type of student loans you have, your repayment goals, and your current financial situation.

If you’re looking to repay unsubsidized federal or private student loans as quickly as possible, you might consider paying interest while you’re in school and then, after you graduate, making extra payments toward the principal whenever you can. Another way to potentially pay off your loans faster is to refinance. This may allow you to lower your interest rate and/or shorten your repayment term. Just keep in mind that refinancing federal student loans with a private lender means losing federal benefits like income-based repayment and forgiveness options.

What age group holds the most student loan debt?

Borrowers between age 50 and 61 hold the most student debt, with an average student loan balance of $46,790, according to the Education Data Initiative.

SoFi Private Student Loans
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Terms and conditions apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. SoFi Private Student loans are subject to program terms and restrictions, such as completion of a loan application and self-certification form, verification of application information, the student's at least half-time enrollment in a degree program at a SoFi-participating school, and, if applicable, a co-signer. In addition, borrowers must be U.S. citizens or other eligible status, be residing in the U.S., Puerto Rico, U.S. Virgin Islands, or American Samoa, and must meet SoFi’s underwriting requirements, including verification of sufficient income to support your ability to repay. Minimum loan amount is $1,000. See SoFi.com/eligibility for more information. Lowest rates reserved for the most creditworthy borrowers. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change. This information is current as of 4/22/2025 and is subject to change. SoFi Private Student loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).

SoFi Bank, N.A. and its lending products are not endorsed by or directly affiliated with any college or university unless otherwise disclosed.

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SOISL-Q425-027

Having multiple credit cards brings certain benefits. On average, Americans use three to four credit cards at a time, often to take advantage of various perks and rewards programs. Another reason to own multiple credit cards is they can boost your credit score when managed sensibly.

That said, juggling credit lines can get out of hand, and it’s easy to fall behind with payments and face hefty interest charges. Here’s a guide to managing multiple credit cards, how to know if you have too many, and more.

Steps for Managing Multiple Credit Cards

Here’s how to manage your credit cards wisely and the steps to take to avoid unnecessary interest charges and fees.

Keep Track of Terms

Know what you are signing up for when you apply for a credit card. While a card may offer perks like sign-up bonuses, free vacations, and 0% interest rates initially, it may also charge high fees and exorbitant interest rates later on. Every credit card has different terms and conditions that are often buried in the small print.

Before applying for a new credit card, check the interest rate, or APR. Also look for penalty APRs, purchase APRs, and cash advance APRs. A penalty APR is charged if you don’t comply with the card’s terms and conditions. A purchase APR is the interest rate charged for purchases or carrying the balance over to the next month. A cash advance APR applies if you use your credit card to borrow cash.

A card may also offer an introductory 0% APR, for a limited period. However, once that period is over — or if you miss a payment — the interest rate can skyrocket. Many cards also charge an annual fee for card ownership, a maintenance fee, cash advance fees, foreign transaction fees, returned payment fees, and late payment fees.

If a card offers cash back, find out how much you need to spend to accumulate points or cash back. Check the fine print to find out what types of purchases are qualified and if there are any caps on earning cash and points. Also, read the rules on redeeming rewards, such as when they might expire or be forfeited.

For a sign-up bonus, you might be ineligible if you have owned the same card previously or another family member has the same card.


💡 Quick Tip: Check your credit report at least once a year to ensure there are no errors that can damage your credit score.

Pay on Time and in Full

You will likely incur fees if you miss payments due on your credit card. Also, if you make only the minimum payment on your credit card, you will increase your debt and pay unnecessary interest. But if you pay off your balance in full each month, you are in effect getting a free loan.

If you have multiple credit cards to juggle, it will take dedication to monitor the balances and due dates to avoid late payments, interest charges, and fees. However, managing credit cards responsibly can build your credit history.

It’s also a good idea to check your credit report at least once a year to ensure there are no errors that can damage your credit score.

Set Up Autopay

Once you understand the terms, conditions, and payment due dates of your various credit cards, set up automatic payments to avoid missing a payment. Missing a payment will mean that you are charged interest, and depending on the balance on the card, the interest payments can be steep.

Set Reminders

Managing multiple credit cards may require setting reminders. For example, if you signed up for a card with an initial period of 0%, you should know when that period ends. Also, keep track of when rewards expire, and when you should redeem points or rewards.

Recommended: What Are Cash-Back Rewards and How Do They Work?

Simplify Your Payment Due Dates

You may want to change the payment due dates for your cards to make budgeting easier. For example, if the payments for multiple cards all fall on the same day or week, it can be difficult keeping enough cash on hand.

Consider scheduling due dates close to a payday or soon after a direct deposit. It might take one or two billing cycles for your request to take effect.

Know When to Use Each Card

There’s little point juggling multiple credit cards if you don’t use the right card for the right purpose. That’s why studying each card’s terms and conditions is crucial to optimizing the benefits of your cards. For example, some travel cards come with travel protections that will reimburse you if a trip has to be canceled, and co-branded airline cards may offer free checked bags or upgrades.

Keep a Record of Your Credit Card Features

Organization is the key to managing multiple credit cards. You can use a notebook, spreadsheet, or a personal finance app — whatever it takes for you to be able to access the information you need easily.

Some key data to have at your fingertips are the interest rate, credit limit, issue date, annual fees, and payment due dates, the balance from month to month, and the key facts about the rewards program (minimum spending limits, expiration dates, qualified items).

Give Each Card a Purpose

Allocating a purpose for each card will tell you what type of card you might want to get next. For example, you might have a card that offers travel rewards, another card for cash back on groceries, but you might want to also get a card that offers rewards for buying gas. Keep a record of which card serves what purpose.

Carry Only the Cards You Use

Don’t carry all your cards with you all the time. You risk losing them, plus it will make your wallet uncomfortable to carry! There’s no need to carry an airline card that you only use to book flights. Make sure you know which cards charge an inactivity fee, and set up reminders to use the card to avoid such penalties.

Recommended: Find Out Your Credit Score for Free

Use an App to Track Your Card Balances

It’s a good idea to use an app to track your card balances. Apps are particularly useful because they alert you when a payment is due or delinquent. Some apps perform free credit monitoring, help you find a credit card for a specific merchant, and track your loyalty programs.

Signs You Have Too Many Cards

How many cards is too many? That depends on how well you manage them. Here are some indicators that you should consider closing some accounts.

You Can’t Pay the Balance Off Each Month

If you can’t pay off all the balances on your cards each month, you are in danger of falling deeper into debt and having to pay interest. You also risk increasing your credit utilization ratio. When your ratio gets too high, credit card companies may turn you down and credit checks for future employment may be affected..

You’re Missing Payments

If you find it hard to keep track of your credit cards, miss payments, or lose rewards, it’s a sign you might have bitten off more than you can chew. Simplify your financial management by choosing three or four of the most advantageous cards for your lifestyle and cancel the rest.

You’re Earning Too Few Rewards

If you rarely redeem rewards, it might not be worth keeping the card. Not only are you paying a fee for a card that gives you little benefit, but you also have the hassle of keeping track of the card’s features and balance. It might be best to nix these credit cards.

Which Cards Should You Stop Using?

When deciding which credit cards to stop using, list out the benefits of each card. Look at your spending history with that card over the past year and look at what you have gained. If you have spent little and gained little, it’s time to lose the card.

Similarly, if a card charges high annual fees and provides few benefits, don’t keep the card. Also look at the interest rate. If you have a balance on a high-interest card, pay off that debt and close down the card.

When Does It Make Sense to Close a Card?

It makes sense to close a card when you only use it to avoid an inactivity fee, if it provides few benefits, if the fees and interest rate are high, or if you are having trouble paying off the balance each month.


💡 Quick Tip: One way to raise your credit score? Pay your bills on time. Setting up autopay can help you keep your account in good standing.

The Takeaway

Having various cards can be advantageous because you can benefit from rewards and loyalty programs, build your credit history, and take advantage of interest-free credit if you pay off the balance each month. However, each credit card may charge various fees, and managing multiple credit cards can be a headache.

When opening a new credit card, make sure the fees, rewards, limitations, and penalties make sense for you. Also consider if you can manage the card and pay off the balance each month on time. Lastly, review your portfolio of cards regularly in case it makes sense to close down an account.

Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.

FAQ

How do I manage multiple credit cards?

Managing multiple credit cards comes down to organization. Keep track of all your cards and their various features, including due dates, what you should use them for, the rewards they offer, balances, interest rate, and penalties and fees. There are apps and online tools that help you to manage cards and monitor your credit score.

What is the 15/3 credit card rule?

The 15/3 credit card rule is a strategy to lower your credit utilization ratio. A credit utilization ratio of 30% or below can make you more attractive to lenders. Most people make one credit card payment a month by the due date. With this strategy, a cardholder makes two payments each month. This could reduce your credit utilization ratio if you make the payment before the end of your billing cycle. But keep in mind that even if you regularly pay your credit card balance in full each and every month, you may still be carrying a large balance throughout the month, and your credit score may be affected.

How many credit cards is too many?

How many credit cards you should have depends on your lifestyle and how well you manage them. Feeling overwhelmed and making mistakes like not paying off balances on time are indicators that you cannot keep track of your cards. Other indicators that you may have too many credit cards are that you are not seeing much benefit in the way of rewards but are paying high fees, or you have a significant balance on a card with a high interest rate.

Photo credit: iStock/Sitthiphong

SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.

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 .

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

SORL-Q425-022

Putting in a pool can turn your backyard into an oasis for parties, playtime for kids, and weekend relaxation. However, installing an in-ground swimming pool costs $65,909 on average in 2025. This expense can leave many homeowners wondering how to cover the cost of installing a swimming pool.

Fortunately, there are several options for financing a pool, including a cash-out refinance, a home equity loan or credit line, and a personal loan. Read on for a closer look at different types of pool financing and their pros and cons.

Key Points

How to Finance a Swimming Pool

If you don’t have enough money saved to pay upfront for a pool — or even if you do — you might be wondering what types of loans or other options are appropriate for this type of backyard remodel.

There are several pool financing choices available to homeowners — including credit cards, pool company financing, cash-out refinancing, home equity loans, home equity lines of credit, and home improvement loans.

Before you take the plunge into financing a pool, it’s a good idea to consider the pros and cons of each type, including the overall costs of borrowing and whether you might qualify for a particular type of loan. What follows is a guide to four of the most popular pool financing options.

Using a Cash-Out Refinance to Pay for a Pool

If you have significant equity built up in your home, you may want to consider a cash-out refinance. Equity refers to the amount of your home’s value that you’ve actually paid off. Put another way, it’s the difference between your mortgage balance and your home’s current value.

With a cash-out refinance, you replace your existing mortgage with a new mortgage for a larger amount. You receive the overage as cash back, which you can then use to cover virtually any expense, including the installation of a swimming pool.

Pros of a Cash-Out Refinance

A cash-out refinance comes with a number of potential benefits:

•   Access to large loans You may be able to borrow up to 80% of your home’s equity, which could be enough to cover the cost of putting in a pool — and maybe even some extras, like a new barbecue or lounge chairs.

•   A lower rate Borrowers with good or improved credit, or those who bought their home when interest rates were higher, may be able to refinance to a lower interest rate.

•   Potential tax deductions A mortgage interest tax deduction may be available on a cash-out refinance if the money is used for capital improvements on your property. (Consult with a tax professional for more details on how this applies to your situation.)

Cons of a Cash-Out Refinance

There are also some downsides to going the cash refi route, including:

•   Involved application process Borrowers must go through the mortgage application process all over again to get a new loan, which usually means submitting updated information, getting an appraisal, and waiting for approval.

•   Closing costs You may have to pay closing costs, generally from 2% to 6% of the total loan amount. (That’s the old loan plus the lump sum that’s being added.)

•   Foreclosure risk Your mortgage is a secured loan, which means if you can’t make your payments, you could risk foreclosure.

Using a Home Equity Line of Credit to Finance a Pool

Another way you can use your home’s equity to finance a pool is to take out a home equity line of credit (HELOC).

A HELOC is a revolving line of credit that uses your home as collateral. It works much like a credit card in that:

•   The lender gives you a credit limit to draw from, and you only repay what you borrow, plus interest.

•   As you pay back the money you owe, those funds become available to you again for a predetermined “draw” period (usually five to 10 years).

Pros of a HELOC

Here’s why a HELOC can be a popular way to pay for home improvements like adding a pool:

•   Flexibility Instead of borrowing money in one lump sum, a HELOC allows you to tap into the line only as needed. Plus, you only pay interest based on the amount you actually borrow, not the entire amount for which you were approved, as you would with a regular loan.

•   Low rates The interest rates are generally lower than credit cards and unsecured personal loans.

•   Potential tax deductions The interest on HELOC payments might be tax deductible if the funds were used to buy, build, or substantially improve your home, and you itemize your deductions.

Cons of a HELOC

HELOCs also have a few potential drawbacks, which include:

•   Variable interest rates HELOCs generally come with a variable interest rate, which means when interest rates increase, the monthly payments could go up. Although there may be a cap on how much the rate can increase, some borrowers might find it difficult to plan around those fluctuating payments.

•   HELOCs are easy to use — and overuse Some of the same things that can make a HELOC appealing (easy access to cash, lower interest rates, and tax-deductible interest) could lead to overspending if borrowers aren’t disciplined.

•   Foreclosure risk A HELOC is secured by an asset (your house). If you stop making the payments on the HELOC, you could lose your home.

Recommended: Guide to Unsecured Personal Loans

Using a Home Equity Loan for Pool Financing

A home equity loan is yet another way to tap into the money you’ve already put into your home. But unlike a HELOC, borrowers receive a lump sum of money.

Pros of a Home Equity Loan

There are different types of home equity loans which all offer a way to tap into the money you’ve already put into your home. But unlike the case with a HELOC, borrowers receive a lump sum of money.

•   Predictable payments Unlike HELOCs, which typically come with a variable interest rate, home equity loans usually have a fixed interest rate. The borrower can expect a reliable repayment schedule for the duration of the loan.

•   Low rates Because it’s a secured vs. unsecured loan, lenders usually consider a home equity loan lower risk and, therefore, offer lower rates. Secured loans also tend to be easier to qualify for than unsecured loans.

•   Potential tax deductions And, once again, there is a potential tax break. If the loan is used for capital improvements to the home, and you itemize your deductions, the interest may be deductible.

Cons of a Home Equity Loan

There are also some downsides to a home equity loan:

•   Rates may be higher than HELOCs Because a home equity loan’s interest rate won’t fluctuate with the market, the rate for a home equity loan is typically higher.

•   Closing costs As with most loans involving real estate, you’ll likely have to pay closing costs. These costs can range from 2% to 5% of the loan amount.

•   Foreclosure risk You may put your home at risk for foreclosure if you can’t make your loan payments.

Using a Personal Loan

You don’t necessarily have to tap into your home’s equity to finance a swimming pool. Many banks, credit unions, and online lenders offer unsecured personal loans that can be used for home improvements, including the installation of a swimming pool.

If you haven’t owned your home for long, or if your home hasn’t gone up much in value while you’ve owned it, a personal loan may be worth considering.

Pros of a Personal Loan for Pool Financing

Here’s a look at some of the advantages of using a personal loan for a home renovation like a pool:

•   Simple application process Applying for an unsecured personal loan is typically quicker and simpler than applying for a secured loan. With a personal loan, you don’t have to wait for a home appraisal or wade through the other paperwork necessary for a loan that’s tied to your home’s equity.

•   Fast access to funds Personal loan application processing and funding speeds vary, but many lenders offer same- or next-day funding.

•   Lower risk Because your home isn’t being used as collateral, the lender can’t foreclose if you don’t make payments. (That doesn’t mean the lender won’t look for other ways to collect, however.)

Cons of a Personal Loan for Pool Financing

Personal loans also come with some disadvantages. Here are some to keep in mind:

•   Higher interest rates Personal loans are unsecured, which means they generally come with a higher interest rate than secured loans that use your property as collateral. (However, borrowers who have good credit and don’t appear to be a risk to lenders still may be able to obtain loan terms that work for their needs.)

•   Origination fees Many (though not all) personal loan lenders charge an origination fee of between 0.5% and 8%, adding costs you might not have anticipated.

•   Less borrowing power Personal loan amounts range from $1,000 to $100,000 but how much you can borrow will depend on the lender and your qualifications as a borrower. With a home equity loan or credit line, you may be able to access more — up to 80% of your home’s value, minus your outstanding mortgage.

Should You Finance a Pool?

Installing a pool is an expensive home improvement, so you may need to borrow some money to pay for all or part of the project. Even if you have enough cash saved to pay upfront for a pool, you may still want to consider financing some or most of the project if you want to keep cash accessible for emergencies and other needs.

Financing with a low-interest loan (provided you can afford the payments) can make paying for a pool manageable. But before you borrow a large sum, you may want to consider how long you plan to live in your current home, how much pool maintenance might cost each month, if you’ll actually use the pool enough to make it a worthwhile purchase, and if the value added to your home is worth the investment.

The Takeaway

With an average cost of $65,909 in 2025, installing an in-ground pool is a costly proposition, but one that can be a wonderful addition to a home in terms of enjoyment and value. If you have significant home equity, you might consider using a cash-out refinance, home equity loan, or HELOC to finance your pool. Or it may be worth looking at a personal loan for pool financing.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. See your rate in minutes.

FAQ

How much is it to install an in-ground pool?

As of 2025, the cost to install an in-ground pool is approximately $65,909, according to the home improvement website Angi. Costs may vary based on size, location, materials, design, and other factors.

How can I finance a swimming pool?

There are several ways to finance a swimming pool for your home. You might leverage your home equity with a home equity loan or home equity line of credit (HELOC). Or you might consider a home improvement personal loan.

Can I get an in-ground swimming pool for $20,000?

Whether $20,000 is a sufficient budget for an in-ground pool depends on several factors. Given that the average cost is currently about $66,000, you would likely have to get a very small pool (say, a plunge pool) and live in an area with a very low cost of living in order to keep costs in the $20,000 range.

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

SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.

SOPL-Q425-018

Your financial aid does not automatically increase every year — it can go up or down based on several factors, and you must reapply annually.

Your financial information is used to calculate the amount of financial aid you receive each year. If your financial circumstances change, you may be eligible for more or less need-based gift aid (the kind you don’t pay back) each year. The maximum amount you can take out in federal Direct Loans, however, does increase for each year you’re in school.

Here’s a closer look at how your financial aid is calculated each year you are in school and why it might go up or down after freshman year.

Do You Have to Apply for Financial Aid Every Year?

You must apply for financial aid each year by filling out the Free Application for Federal Student Aid (FAFSA®). Any changes in your family’s circumstances can affect the amount of need-based aid you are awarded. Need-based aid includes grants, scholarships, work-study, and subsidized federal student loans (in which the government pays your interest while you are in school and for six months after you graduate).

It’s a good idea to fill out your FAFSA soon after it becomes available. This ensures you’ll be considered for all types of federal financial aid, including state aid and financial aid funded directly by colleges and universities. Typically the FAFSA opens October 1 for the following academic year.

You’ll want to check the FAFSA filing deadline for your chosen school by going to their financial aid website. Some schools also require other applications for financial aid (such as the CSS profile).


💡 Quick Tip: You’ll make no payments on some private student loans for six months after graduation.

How Do You Fill Out the FAFSA?

You can fill out the FAFSA online at studentaid.gov. Here’s how:

1. Create an FSA ID. This is a username and password that you will need to complete the FAFSA (as well as take out loans and log in to all Federal Student Aid websites). Keep in mind that parents need to create their own account using their own unique email address and password.

2. Gather documents. You’ll find a list of the documents you need to complete the FAFSA right here.

3. Fill out the application. You’ll need to supply both personal and financial information. If you have any questions as you go along, you can go to the FAFSA Help page. You’ll also have the opportunity to list the schools you are interested in applying to, even if you have yet to apply. This list is not shared with the schools you list.

4. Review your FAFSA Submission Summary. Once your FAFSA has been submitted and processed, you’ll receive an email letting you know your FAFSA Submission Summary is ready to review on studentaid.gov. This contains a summary of the information you entered on the FAFSA and your Student Aid Index, or SAI (formerly called Expected Family Contribution, or EFC). Your SAI is used to determine your eligibility for federal financial aid programs. It’s sent to the colleges you listed on your FAFSA.

Does the Government Decide How Much Money You’ll Be Awarded?

No, the federal government doesn’t decide the exact amount of your financial aid; the financial aid office at your college does. After you complete the FAFSA, the school uses your Student Aid Index (SAI), cost of attendance, and other factors to determine your specific aid package, which can include federal, state, and institutional aid.

That said, the Department of Education does set certain limits on the amount of aid any student can get, which can change each year. For example, if you are a dependent student you can borrow up to $5,500 (no more than $3,500 of this amount may be in subsidized loans) for your first year in college. For your second year, you can borrow up to $6,500 (no more than $4,500 in subsidized loans). The amount increases each year.

What Role Does Your School of Choice Play?

The financial aid office at each college you apply to will determine how much financial aid you’re eligible to receive. How much you’ll receive depends on several factors, including your:

•   SAI (this number is an indicator of your financial need)

•   Enrollment status (full-time students are generally eligible for more aid than part-time students)

•   Cost of attendance at the school

The basic formula for distributing federal financial aid looks like this:

School’s cost of attendance – SAI = Financial need

Can You Keep Your Financial Aid Amount Consistent?

There are no guarantees that you’ll receive the same amount of federal student aid from year to year. But there are some things you can do to maintain your financial aid eligibility.

One is to make sure that you achieve Satisfactory Academic Progress (SAP) each year. Each school has an SAP policy for federal student aid purposes; to see your school’s, you can check your school’s website or ask someone at the financial aid office.

The other way to keep your financial aid as consistent as possible is to fill out the FAFSA each year. Financial aid eligibility does not carry over from one year to the next.

Can You Appeal Your Financial Aid?

If you receive a financial aid offer from a college you’d like to attend but it’s less than what you need, one option is to write an appeal letter. Your school may or may not change its decision, but it may be worthwhile to try, especially if you believe you have other information that they didn’t take into account, or if something significant has changed.

If, for example, one of your parents lost a job recently or someone in the family experienced a medical emergency, then an appeal letter might help. Tips that might help you to write a successful one include:

•  Look for a contact in your school’s financial aid office (ideally the person who has been assigned to your case) and address that person directly.

•  Be polite, professional, and respectful.

•  Be clear about what you’re requesting, including how much aid you need and why.

•  Be concise and compelling, keeping in mind that the financial aid office is likely busy.

•  Provide relevant documentation, such as a doctor’s note or eviction notice. Perhaps give them a breakdown of how you’d spend the money you’re requesting.

•  Carefully proofread your letter and ask a trusted friend or family member to do so, as well.

Paying for College If You Didn’t Receive Federal Financial Aid

If you didn’t receive the federal student aid you anticipated or hoped for, an appeal letter isn’t successful, or you don’t qualify for need-based aid, then other options for paying for college include:

•  Applying for additional scholarships There are smaller scholarships and grants available through private companies, community organizations, and nonprofits. Though each scholarship may be small, if you can cobble together a few, they can help make a dent in your college costs. You can talk to your school’s financial aid department for leads or use one of the many online scholarship search tools.

•  Tapping federal student loans Your financial aid package will tell you what federal student loans you qualify for. These may include Direct Subsidized Loans and/or Direct Unsubsidized Loans (in which students are responsible for all interest accrued). Federal student loans come with low interest rates and valuable protections, such as income-driven repayment and forbearance programs.

•  Private student loans If your financial aid package (including federal student loans) isn’t enough to cover all of your school costs, you may next want to look into private student loans. These are available through banks, credit unions, and private lenders. Loan limits vary by lender, but you can often get up to the total cost of attendance at your chosen school, minus any financial aid you received. Interest rates may be fixed or variable and are set by the lender. Generally, borrowers (or their parent cosigners) who have strong credit qualify for the lowest rates.

•  Part-time job Your financial aid package may include the opportunity to find a job through the Federal Work-Study program. This program funds part-time jobs for college students with financial need. Even if you don’t qualify for work-study, you can look for a job on or off campus to help cover your expenses.

💡 Quick Tip: It’s a good idea to understand the pros and cons of private student loans and federal student loans before committing to them.

The Takeaway

It is important to remember that financial aid does not automatically increase each year. To ensure you receive the aid you need, you must reapply annually by completing the FAFSA. Eligibility is calculated annually based on your financial situation, enrollment status, and the cost of attendance at your chosen school. Understanding how your financial aid is determined and taking proactive steps (like maintaining Satisfactory Academic Progress and appealing aid decisions when necessary) can help you manage your college costs effectively.

If you’ve exhausted all federal student aid options, no-fee private student loans from SoFi can help you pay for school. The online application process is easy, and you can see rates and terms in just minutes. Repayment plans are flexible, so you can find an option that works for your financial plan and budget.

FAQ

Does your financial aid change every year?

Yes, your financial aid can change every year. It can go up or down based on changes in your family’s financial situation, your enrollment status, and the cost of your chosen school. You must reapply for aid annually by completing the FAFSA.

Do colleges recalculate financial aid every year?

Yes, colleges recalculate financial aid every year. When you submit your FAFSA annually, the financial aid office at your school will use the updated information, including your Student Aid Index (SAI) and their cost of attendance, to determine your new financial aid package. This means your aid can change from one year to the next.

Can financial aid be increased?

Yes, financial aid can be increased. If your financial circumstances change significantly after you’ve received your initial aid offer (such as a job loss or medical emergency), you can write an appeal letter to your school’s financial aid office. You’ll need to provide documentation to support your appeal and clearly state the amount of additional aid you’re requesting and why.

What is the #1 most common FAFSA mistake?

One of the most common FAFSA mistakes is not completing the form at all. Many students assume they won’t qualify for aid because of their family’s income or other factors, so they skip it. However, the FAFSA is used to determine eligibility for many types of aid, including low-interest federal loans (that are not need-based) and institutional merit aid. Even if you think you won’t get grants or scholarships, completing the FAFSA can open doors to other funding options.

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

Terms and conditions apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. SoFi Private Student loans are subject to program terms and restrictions, such as completion of a loan application and self-certification form, verification of application information, the student's at least half-time enrollment in a degree program at a SoFi-participating school, and, if applicable, a co-signer. In addition, borrowers must be U.S. citizens or other eligible status, be residing in the U.S., Puerto Rico, U.S. Virgin Islands, or American Samoa, and must meet SoFi’s underwriting requirements, including verification of sufficient income to support your ability to repay. Minimum loan amount is $1,000. See SoFi.com/eligibility for more information. Lowest rates reserved for the most creditworthy borrowers. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change. This information is current as of 4/22/2025 and is subject to change. SoFi Private Student loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).

SoFi Bank, N.A. and its lending products are not endorsed by or directly affiliated with any college or university unless otherwise disclosed.

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

SOISL-Q425-009

Starting a residency can be an exciting and rewarding next step in your medical training. But because residencies are spread across the country, there’s a good chance that you’ll not only be starting an intense new job; you will also be moving and getting settled in a brand new town.

Moving can mean major stress on its own, but moving at the very end of medical school can heighten that. After all, medical school graduates typically have almost $250,000 in debt according to the Education Data Initiative, and moving can cost money. Learn about how to finance this important next step here.

Residency Relocation Costs

There’s no way around it: Moving is expensive, and residency relocation costs can add up.

•   There’s the move itself. Even if you’re moving to a new house in the same city to be closer to your work, you may need to hire movers or rent a truck, buy boxes, and get help packing. Plus there are those unexpected moving costs, such as replacing little things like shower curtains and cleaning products that seem to always get lost in the move.

The average cost of moving is $1,710 in 2025, according to Angi, and a long-distance move can cost significantly more. That’s a significant chunk of change.

•   Even if you follow moving tips to economize during the process, guess what? The expense of settling into a new city can be even higher. You will likely need to put down a security deposit if you are renting, as well as possibly update your furniture and equip your new place with essentials like trash cans, towels, and cooking supplies.

•   Another thing to include in your budget: the costs of exploring a new city and eating out while you set up your kitchen. And don’t forget any expenses you may have to incur for your new job, like clothes, or potentially even transportation costs.

Plus the cost of living may be higher than what you are used to. Those little expenses can add up to a major headache if you’re not prepared.

If you’re feeling the pinch, there are a few loans specially designed for medical residents that may be worth considering. They could help make your transition a lot smoother.


💡 Quick Tip: Some personal loan lenders can release your funds as quickly as the same day your loan is approved.

Medical Residency Relocation Loans

Here are some options that can help you out financially when you relocate for a residency:

•   One loan new doctors may choose to take out is a medical residency relocation loan. You can take out a residency loan from a private lender — for example, a Sallie Mae Medical Residency and Relocation Loan.

•   Or it could be as simple as taking out a personal loan. Some private lenders may offer student loan-type benefits for loans to be used for medical residency relocation, such as a longer loan payoff term (though you may pay more in interest over the life of the loan if you opt for an extended term).

Residency loans may be specifically geared toward new doctors who are beginning their residencies and need to pay for essentials while settling into a new job and a new city. These loans can allow medical residents to fill the financial gap between graduation and your first residency paycheck.

These personal loans can help new residents cover the cost of moving and getting settled in a new city, including providing for your family while you adjust to a new job. For instance, if you’re making a move for residency and bringing your family along, it is likely that your spouse will also need to look for a job in your new city, which means that they may be giving up a paycheck temporarily as well.

Recommended: How to Qualify for a Personal Loan

Home Loans for Medical Residents

Another aspect of your finances to consider is whether you rent or buy the next place you live. Here are a few important points to consider as you embark on your career.

•   As a medical resident, you might qualify for a home loan designed specifically for doctors. These loans can have some big benefits, like low down payments, no requirement for private mortgage insurance, and no rate increases on jumbo loans. It’s important to do some research to see how you can qualify for these loans.

•   Of course, there are things to consider before buying a home during your residency. Even if you qualify for a home loan for medical residents, you might not be ready to buy a home just yet. This is especially true if you’re moving to a new city or state and you want to settle in, find your favorite neighborhood, and make sure you really like the city before deciding to buy a home.

•   If you do decide to start the home buying process, it’s probably a good idea to check out both traditional mortgages and loans designed specifically for doctors. You won’t know which one is right for you until you compare the benefits of each.

When both partners transition to new jobs at the same time, there can be a significant gap in income. A medical residency relocation loan can help you maintain your lifestyle while you and your spouse acclimate to new jobs.

Getting Ready to Get a Loan

If you’re thinking of getting a loan for relocation costs or to purchase a home, you may want to do some financial housekeeping. Here are a few moves to make:

•   Check your credit score, and see if there may be ways to build it, if necessary. A higher score can earn you the best (meaning lower) interest rates.

•   Determine exactly how much money you may need to borrow. Like all loans, consider only borrowing the amount you actually need to tide you over until your residency starts paying.

You can get a good idea of how much you may need to borrow by taking a look at your monthly expenses and then adding any additional cost-of-living increases based on your new city and the cost of moving. Don’t forget to list one-time expenses like a security deposit for a new apartment.

•   When you’ve figured out how much you want to borrow, take some time to shop around for a loan whose terms work for you. Each lender has different terms and benefits, so make sure to understand them fully before making a decision on if a personal loan is right for you.

Recommended: Can I Take Out a Personal Loan When Unemployed?

The Takeaway

Becoming a doctor can be a challenging and rewarding path. As you embark on your residency, you may find that there are significant relocation and housing expenses. Depending on your situation, you may want to review your loan options to see if there’s a good fit. For instance, a personal loan might allow you to cover the cost of setting yourself up in a new place for your medical residency.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. See your rate in minutes.

FAQ

Can you use a personal loan for residency relocation costs?

Yes, a personal loan can be used to finance residency relocation costs like interview expenses, moving, and setting up a new home, and it offers a lump sum with fixed payments. However, it is important to compare personal loans options to find the right rate and terms to suit your unique situation.

What are typical residency relocation costs?

The typical residency relocation costs include moving expenses like hiring movers (which can total in the thousands of dollars), housing costs such as security deposits and first and last month’s rent, and travel expenses. Professional costs like licensing and exams may be covered by these loans, too.

What is a residency relocation loan?

A residency relocation loan is a kind of personal loan that is designed to help finance the cost of interviewing for a residency and then paying moving expenses and the cost of setting up a home in your new town.

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

SOPL-Q425-015